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Connected
2014 ANNUAL REPORT AND FORM 10-K

Table of contents

  • Page 1
    Connected 2014 ANNUAL REPORT AND FORM 10-K

  • Page 2
    Jim Freeman, Wilmington, North Carolina One of the thousands of line technicians dedicated to providing essential service to our customers and communities.

  • Page 3
    ...I wrote about Duke Energy's determination to earn the trust of our customers, communities and investors every day. Throughout the year, the men and women of our company worked hard to are to the customers we serve and to the addressed complex issues head-on. 2014 was a year of opportunity, challenge...

  • Page 4
    ... a Dispositions and Sales of Other Assets"); (ii) 2014 incremental tax expense resulting from the decision to repatriate all cumulative historical undistributed foreign earnings (see Note 22 b On July 2, 2012, immediately prior to the merger with Progress Energy, Duke Energy executed a one-for...

  • Page 5
    .... Since the Progress Energy merger in Three years: in annual merger-related nonfuel operating and maintenance expense savings across the company. the skill and dedication of our employees have kept our customer rates below national averages. In 2014, we increased our quarterly dividend payment by...

  • Page 6
    ...company related to the Dan River ash spill and ash basin operations at other North Carolina coal plants. The agreement The connection is personal: Our employees and retirees volunteered 212,000 hours in our communities during 2014. Duke Energy International generates Duke Energy Carolinas and Duke...

  • Page 7
    ...-hydro plants, units, was critical to meeting our customers' demand for electricity in all our service areas. Since 2011, Duke Energy has 93% capacity Our 11 nuclear units set a company record in 2014 for total electricity production. As I have said from the outset, Duke Energy is accountable for...

  • Page 8
    ... savings for our Carolinas merger, we have already realized more than 60 percent of the savings. In January 2014, punishing arctic cold fronts pushed customer demand for power to historic levels in our Indiana, Ohio, Kentucky and Carolinas service areas. Duke Energy Carolinas surpassed an all-time...

  • Page 9
    ...reliable delivery of natural gas to Connecting resources: North Carolina. Duke Energy will own 40 percent of the pipeline, and our Carolinas utilities will take contracted natural gas from the pipeline. electric grid modernization plan for Indiana. the infrastructure and add advanced technology to...

  • Page 10
    ... 2015 or early 2016. Also in 2014, we announced several gas-fueled power generation: almost $2 billion for three Florida generation projects and approximately $600 million for a new combined-cycle power plant in South Carolina. Renewable energy has also become a central part of Duke Energy's growth...

  • Page 11
    ...the ninth consecutive year in 2014, Duke Energy was named to the Dow Jones Sustainability Index for North America. in each business sector based on economic, environmental and social criteria, including corporate governance, environmental policy, climate strategy, human capital development and labor...

  • Page 12
    .... across Duke Energy to discuss our priorities and plans. The CEO of an industrial customer spoke and praised his company's partnership with Duke Energy. He cited our electric rates that keep his business as he spoke of service interruptions that hurt his bottom line. Our team took notes, and...

  • Page 13
    ... from equity investments), and has a 42% Coal 33% Nuclear 24% Natural Gas/Fuel Oil 1% Hydro and Solar Customer Diversity (in billed GWh sales) 2 34% Residential 31% General Services 21% Industrial 14% Wholesale/Other Regulated Utilities consists of Duke Energy's regulated generation, electric and...

  • Page 14
    ... Director of Duke Energy since 2015 Harris E. DeLoach Jr. Executive Chairman - Sonoco Products Company Member, Corporate Governance Committee, Nuclear Oversight Committee Director of Duke Energy since 2012 James H. (Jim) Hance Jr. Retired Vice Chairman and Chief Financial Officer - Bank of America...

  • Page 15
    DUKE ENERGY CORPORATION Cautionary Statement Regarding Forward-Looking Information Non-GAAP Financial Measures 2014 Form 10-K A DUKE ENERGY l

  • Page 16

  • Page 17
    ..., including credit ratings and general economic conditions; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; construction...

  • Page 18
    ... share amounts) Adjusted segment income/Adjusted earnings Crystal River Unit 3 charges Costs to achieve Progress Energy merger Midwest generation operations Nuclear development charges Litigation reserve Asset sales Discontinued operations Segment income (loss)/Net Income Attributable to Duke Energy...

  • Page 19
    ... millions, except per share amounts) Adjusted segment income/Adjusted earnings Edwardsport impairment and other charges Costs to achieve Progress Energy merger Midwest generation operations Economic hedges (mark-to-market) Democratic National Convention Host Committee support Employee severance and...

  • Page 20
    (This page intentionally left blank.)

  • Page 21
    ... 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 22
    ... by various factors, including credit ratings and general economic conditions; • Declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust...

  • Page 23
    ...Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, and Duke Energy Indiana Duke Energy Retail...Duke Energy Retail Sales, LLC Duke Energy Vermillion ...Duke Energy Vermillion II, LLC DukeNet...DukeNet Communications Holdings, LLC Dynegy...

  • Page 24
    ... nuclear plant in Levy County, Florida Legacy Duke Energy Directors ...Members of the pre-merger Duke Energy Board of Directors LIBOR ...London Interbank Offered Rate Long-Term FERC Mitigation ...The revised market power mitigation plan related to the Progress Energy merger MATS...Mercury and Air...

  • Page 25
    ... and Duke Energy Progress in connection with a criminal investigation related to the Dan River ash basin release and the management of coal ash basins in North Carolina Progress Energy...Progress Energy, Inc. PSA ...Purchase sale agreement PSCSC...Public Service Commission of South Carolina Public...

  • Page 26
    ... through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana and Duke Energy Ohio. These electric and gas operations are subject to the rules and regulations of the FERC, the North Carolina Utilities Commission (NCUC), the Public Service Commission of South Carolina...

  • Page 27
    ... total industrial and general service sales increased in 2014 when compared to 2013, the growth rate was modest when compared to historical periods. Seasonality and the Impact of Weather Regulated Utilities' costs and revenues are inï¬,uenced by seasonal patterns. Peak sales of electricity occur...

  • Page 28
    ...Carolinas Duke Energy Progress Duke Energy Progress Duke Energy Indiana Total Cliffside Unit 6 Dan River Combined Cycle H.F. Lee Combined Cycle L.V. Sutton Combined Cycle Edwardsport IGCC 844 637 916 622 595 3,614 Fuel Coal Natural Gas Natural Gas Natural Gas Coal Commercial Operation 2012 2012 2012...

  • Page 29
    ... Regulated Utilities is responsible for the purchase and the subsequent delivery of natural gas to retail customers in its Ohio and Kentucky service territories. Regulated Utilities' natural gas procurement strategy is to buy firm natural gas supplies and firm interstate pipeline transportation...

  • Page 30
    ..., when coupled with the existing fund balance and expected fund earnings, will be sufficient to provide for the cost of future decommissioning. For additional information see Note 9 to the Consolidated Financial Statements, "Asset Retirement Obligations." The Nuclear Waste Policy Act of 1982 (as...

  • Page 31
    ... Capital structure includes deferred income tax, customer deposits and investment tax credits. For more information on rate matters and other regulatory proceedings, see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." Federal The FERC approves Regulated Utilities' cost-based...

  • Page 32
    ... Financial Statements, "Regulatory Matters - Rate Related Information." Market Environment and Competition The market price of commodities and services, along with the quality and reliability of services provided, drive competition in the wholesale energy business. Commercial Power's main...

  • Page 33
    ...the merger of Duke Energy and Cinergy, until December 2012. Executive Vice President, Strategic Services. Mr. Mullinax assumed his current position in August 2014. Prior to that, he had held the position of Chief Information Officer since 2007. Senior Vice President, Controller and Chief Accounting...

  • Page 34
    ...information, see Note 3 to the Consolidated Financial Statements, "Business Segments." DUKE ENERGY FLORIDA Duke Energy Florida is a regulated public utility primarily engaged in the generation, transmission, distribution, and sale of electricity in portions of Florida. Duke Energy Florida's service...

  • Page 35
    ... 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' regulated utility...

  • Page 36
    ...' regulated electric service territories will reduce overall sales and lessen cash ï¬,ows, especially as industrial customers reduce production and, therefore, consumption of electricity. Although the Duke Energy Registrants' regulated electric business is subject to regulated allowable rates of...

  • Page 37
    ... and cash ï¬,ows. Furthermore, the Duke Energy Registrants currently have energy efficiency riders in place to recover the cost of energy efficiency programs in North Carolina, South Carolina, Florida, Ohio and Kentucky. Should the Duke Energy Registrants be required to invest in conservation...

  • Page 38
    ...costs of retiring Duke Energy Florida's Crystal River Unit 3 could prove to be more extensive than is currently identified. Costs to retire and decommission the plant could exceed estimates and, if not recoverable through the regulatory process, could adversely affect Duke Energy's, Progress Energy...

  • Page 39
    ... funded trusts that are intended to pay for the decommissioning costs of the respective nuclear power plants. The performance of the capital markets affects the values of the assets held in trust to satisfy these future obligations. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida...

  • Page 40
    ... plants. If Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are unable to successfully manage their NDTF assets, their financial condition, results of operations and cash ï¬,ows could be negatively affected. Poor investment performance of the Duke Energy pension plan holdings...

  • Page 41
    ... Energy Progress Roxboro(b) (c) Brunswick(c) Smith Harris(c) H.F. Lee Wayne County Darlington Smith Robinson Mayo(c) L.V. Sutton Asheville Asheville Weatherspoon Walters L.V. Sutton Blewett Other small hydro (3 plants) Total Duke Energy Progress Fossil Steam Nuclear Combined Cycle Nuclear Combined...

  • Page 42
    ... Energy Ohio Duke Energy Indiana Gibson(e) Cayuga(f) Wabash River(g) Edwardsport Madison Vermillion(h) Wheatland Noblesville Gallagher Henry County Cayuga Connersville Miami Wabash Markland Total Duke Energy Indiana Total Regulated Utilities Totals By Plant Type Nuclear Fossil Steam Combined Cycle...

  • Page 43
    ...- - 300 7,200 6,200 Substantially all of Regulated Utilities' electric plant in service is mortgaged under indentures relating to Duke Energy Carolinas', Duke Energy Progress', Duke Energy Florida's, Duke Energy Ohio's and Duke Energy Indiana's various series of First Mortgage Bonds. INTERNATIONAL...

  • Page 44
    ...(a)(b) Lee Dick's Creek Miami Fort Total Duke Energy Ohio(c) Totals By Facility Type Renewable - Wind Renewable - Solar Fossil Steam Combined Cycle Combustion Turbine Total Commercial Power (a) Jointly owned with American Electric Power Generation Resources and/or The Dayton Power & Light Company...

  • Page 45
    ... Department of Environmental Quality Civil Enforcement Duke Energy Carolinas and the Virginia Department of Environmental Quality are in negotiations regarding civil enforcement against Duke Energy Carolinas related to the February 2, 2014, coal ash release from Duke Energy Carolinas' Dan River...

  • Page 46
    ... Duke Energy 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 47
    ...2014 Duke Energy Corporation S&P 500 Index Philadelphia Utility Index NYSE CEO Certification Duke Energy has filed the certification of its Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to this Annual Report on Form...

  • Page 48
    ...); (v) the 2012 merger with Progress Energy (see Note 2 to the Consolidated Financial Statements, "Acquisitions, Dispositions and Sales of Other Assets"); (vi) 2012 and 2011 pretax impairment and other charges related to the Edwardsport Integrated Gasification Combined Cycle (IGCC) project of $628...

  • Page 49
    ... combined cycle facility (Sutton). Excavation plans have also been filed for the W.S. Lee site in South Carolina, and work is progressing on closure plans for the other ten North Carolina sites. On February 20, 2015, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Business Services LLC...

  • Page 50
    ... billion annually in Regulated business growth projects. Many of these projects will be recovered through riders such as transmission and distribution expenditures in Indiana and Ohio, as well as the Crystal River Unit 3 rider in Florida and energy efficiency riders in the Carolinas. The regulated...

  • Page 51
    ... share amounts) Adjusted segment income/Adjusted earnings Crystal River Unit 3 charges Costs to achieve Progress Energy merger Midwest generation operations Nuclear development charges Litigation reserve Asset sales Discontinued operations Segment income (loss)/Net Income Attributable to Duke Energy...

  • Page 52
    ...maintenance expense due to higher storm costs, the timing of fossil plant outages and the impact of nuclear outage cost levelization; • Lower post in-service debt returns due to projects added to customer rates; and • Higher property and other non-income taxes. The variance in adjusted earnings...

  • Page 53
    .... (b) For Duke Energy Florida, 18,348 GWh sales for the year ended December 31, 2012, occurred prior to the merger between Duke Energy and Progress Energy. Year Ended December 31, 2014 as Compared to 2013 Regulated Utilities' results were positively impacted by higher retail pricing and rate riders...

  • Page 54
    ... impacted by 2012 impairment and other charges related to the Edwardsport Integrated Gasification Combined Cycle (IGCC) plant, higher retail pricing and rate riders, the inclusion of Progress Energy results for the first six months of 2013, a net increase in wholesale power revenues, and higher...

  • Page 55
    ... River coal ash release and operations at other North Carolina facilities with ash basins. The outcome of these lawsuits could have an adverse impact to Regulated Utilities' financial position, results of operations and cash ï¬,ows. See Note 5 to the Consolidated Financial Statements, "Commitments...

  • Page 56
    ... in electric revenues from higher production in the renewables portfolio. Operating Expenses. The variance was driven primarily by: • A $94 million increase driven by an impairment taken related to Ohio Valley Electric Corporation (OVEC). See Note 11 to the Consolidated Financial Statements...

  • Page 57
    ... portfolio driven primarily by commercial operation of certain assets and costs to run the renewables services company acquired in 2012; • A $25 million increase in depreciation driven by renewable portfolio assets put in service; • A $17 million increase related to Midcontinent Independent...

  • Page 58
    ... item. Operating Revenues. The decrease was primarily due to mark-to-market activity of mitigation sales related to the Progress Energy merger. Operating Expenses. The decrease was primarily due to lower charges related to the Progress Energy merger and prior year Crescent Resources LLC (Crescent...

  • Page 59
    ... A $180 million increase in retail pricing and updated rate riders, which primarily reï¬,ects the impact of the 2013 North Carolina and South Carolina retail rate cases; • A $151 million increase in fuel revenues driven primarily by increased demand from retail customers, mainly due to favorable...

  • Page 60
    ... costs for Duke Energy Progress; and to a higher fuel rate in the current year related to lower NEIL insurance reimbursements and accelerated Crystal River Unit 3 regulatory asset cost recovery in 2014 as allowed by the 2013 Settlement for Duke Energy Florida. Fuel revenues represent sales to retail...

  • Page 61
    ... Duke Energy Florida primarily related to Crystal River Unit 3 and Levy; and • A $49 million decrease at Duke Energy Progress due to a current year $18 million reduction to a 2012 impairment charge related to the disallowance of transmission project costs, which are a portion of the Long-Term FERC...

  • Page 62
    ... adverse impact to Duke Energy Progress' financial position, results of operations and cash ï¬,ows. See Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies," for additional information. An order from regulatory authorities disallowing recovery of costs related to closure...

  • Page 63
    ... sales. Total sales includes billed and unbilled retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers. Amounts are not weather normalized. Increase (decrease) over prior year Residential sales General service sales Industrial sales...

  • Page 64
    ... retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers. Amounts are not weather normalized. Increase (decrease) over prior year Residential sales General service sales Industrial sales Wholesale power sales Total sales Average number...

  • Page 65
    ... retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers. Amounts are not weather normalized. Increase (decrease) over prior year Residential sales General service sales Industrial sales Wholesale power sales Total sales Average number...

  • Page 66
    ... future rate recovery. See Note 4 to the Consolidated Financial Statements, "Regulatory Matters," for a discussion of disallowances recorded related to the Edwardsport IGCC plant and the retired Crystal River Unit 3 Nuclear Station. When it becomes probable that regulated generation, transmission or...

  • Page 67
    ... level that has discrete cash ï¬,ows. For further information related to the impairment recorded in conjunction with planned sale of Duke Energy's Disposal Group to Dynegy, see Note 2 to the Consolidated Financial Statements, "Acquisition, Disposals and Sales of Other Assets." Accounting for Loss...

  • Page 68
    ... the present value of the plan's projected benefit payments discounted at this rate with the market value of the bonds selected. Future changes in plan asset returns, assumed discount rates and various other factors related to the participants in Duke Energy's pension and post-retirement plans will...

  • Page 69
    ... to the Consolidated Financial Statements, "Acquisitions, Dispositions and Sales of Other Assets." In December 2014, Duke Energy declared a taxable dividend of historical foreign earnings in the form of notes payable that will result in the repatriation of approximately $2.7 billion of cash held and...

  • Page 70
    ...money pool to Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana. The balances are included within Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets. On February 20, 2015, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Business Services LLC...

  • Page 71
    ... related to the merger with Progress Energy, while the 2014 and 2013 percentages include all debt-related purchase accounting amounts. Projected 2015 50% 50% Actual 2014 49% 51% Actual 2013 50% 50% Duke Energy's fixed charges coverage ratio, calculated using SEC guidelines, was 3.2 times for 2014...

  • Page 72
    ... by: • A $204 million increase due to prior year contributions to qualified pension plans, favorable retail pricing and rate riders and favorable weather, partially offset by current year under collection of fuel and purchased power costs and timing of cash payments for operations and maintenance...

  • Page 73
    ... common stock related to employee benefit plans Issuance of long-term debt, net Notes payable and commercial paper Dividends paid Other financing items Net cash (used in) provided by financing activities $ 2014 2013 2012 of the receipt in 2015 of proceeds from the sale of the Midwest Generation...

  • Page 74
    ... into a pay fixed-receive ï¬,oating interest rate swap for 75 percent of the loan. (i) Relates to the securitization of accounts receivable at a subsidiary of Duke Energy Progress; the proceeds were used to repay short-term debt. See Note 17 to the Consolidated Financial Statements, "Variable...

  • Page 75
    ...-related injuries and damages claims and self-insurance claims (see Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies") because Duke Energy is uncertain as to the timing and amount of cash payments that will be required. Additionally, the table above excludes annual...

  • Page 76
    ... these activities with retail customers. International Energy and Commercial Power generally hedge their expected generation using long-term bilateral power sales contracts when favorable market conditions exist and are subject to wholesale commodity price risks for electricity not sold under such...

  • Page 77
    ... cash equivalents and short-term investments. Per the NRC, Internal Revenue Code, NCUC, PSCSC and FPSC requirements, these funds may be used only for activities related to nuclear decommissioning. The investments in equity securities are exposed to price ï¬,uctuations in equity markets. Duke Energy...

  • Page 78
    ... of costs recovered through retail rates. See Note 9 to the Consolidated Financial Statements, "Asset Retirement Obligations" for additional information regarding nuclear decommissioning costs. See Note 15 to the Consolidated Financial Statements, "Investments in Debt and Equity Securities" for...

  • Page 79
    ... regulations. Refer to Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for further information regarding potential plant retirements and regulatory filings related to the Duke Energy Registrants. The following table provides estimated costs, excluding AFUDC, of new...

  • Page 80
    ...At this time, Duke Energy is evaluating the CCR regulation and developing cost estimates that will largely be dependent upon compliance alternatives selected to meet requirements of the regulations. For more information, see Note 5 to the Condensed Consolidated Financial Statements, "Commitments and...

  • Page 81
    ... 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 82
    ...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 83
    ... II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Duke Energy Corporation Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the "Company") as of December 31, 2014...

  • Page 84
    ... revenues Operating Expenses Fuel used in electric generation and purchased power - regulated Fuel used in electric generation and purchased power - nonregulated Cost of natural gas and other Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges...

  • Page 85
    ... to Duke Energy Corporation (a) Net of insignificant tax expense in 2014, $17 million tax expense in 2013 and $9 million tax expense in 2012. See Note 21 for additional information. (b) Net of $13 million tax benefit in 2014, $20 million tax expense in 2013 and $6 million tax expense in 2012. See...

  • Page 86
    PART II DUKE ENERGY CORPORATION CONSOLIDATED BALANCE SHEETS December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Short-term investments Receivables (net of allowance for doubtful accounts of $17 at December 31, 2014 and $30 at December 31, 2013) Restricted receivables of ...

  • Page 87
    ...ENERGY CORPORATION CONSOLIDATED BALANCE SHEETS - (Continued) December 31, (in millions) LIABILITIES AND EQUITY Current Liabilities Accounts payable Notes payable and commercial paper Taxes accrued Interest accrued Current maturities of long-term debt Liabilities associated with assets held for sale...

  • Page 88
    ...from the merger with Progress Energy Purchases of available-for-sale securities Proceeds from sales and maturities of available-for-sale securities Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable Change in restricted cash Other Net...

  • Page 89
    ... for (received from) income taxes Merger with Progress Energy Fair value of assets acquired Fair value of liabilities assumed Issuance of common stock Significant non-cash transactions: Accrued capital expenditures See Notes to Consolidated Financial Statements 2014 2013 2012 $ 2,914 25 (3,037...

  • Page 90
    ... II DUKE ENERGY CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Duke Energy Corporation Shareholders Accumulated Other Comprehensive Loss Unrealized Net Losses (Losses) Gains Common Additional Foreign on Cash on Available- Pension and Common Stock Common for-Sale OPEB Related Stockholders...

  • Page 91
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Carolinas, LLC Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2014 and ...

  • Page 92
    ... Expense Net Income Other Comprehensive Income, net of tax Reclassification into earnings from cash ï¬,ow hedges Unrealized gain on investments in available-for-sale securities Comprehensive Income See Notes to Consolidated Financial Statements 2014 $7,351 2,133 1,995 1,009 316 3 5,456 - 1,895 172...

  • Page 93
    ... Companies Deferred Credits and Other Liabilities Deferred income taxes Investment tax credits Accrued pension and other post-retirement benefit costs Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Member's Equity...

  • Page 94
    ...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 Deferred income taxes Voluntary opportunity cost deferral Accrued pension and other post-retirement benefit costs (Increase) decrease...

  • Page 95
    PART II DUKE ENERGY CAROLINAS, LLC CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY Accumulated Other Comprehensive Loss Unrealized Losses on Availablefor-Sale Securities $ (2) - 1 - $ (1) - - - $ (1) - - - $ (1) (in millions) Balance at December 31, 2011 Net income Other comprehensive income...

  • Page 96
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Progress Energy, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2014 and 2013, and ...

  • Page 97
    ... 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 Impairment charges Total operating expenses Gains (Losses) on Sales of Other Assets and Other...

  • Page 98
    ... accounts of $8 at December 31, 2014) Receivables from affiliated companies Notes receivable from affiliated companies Inventory Regulatory assets Other Total current assets Investments and Other Assets Nuclear decommissioning trust funds Goodwill Other Total investments and other assets Property...

  • Page 99
    ... II PROGRESS ENERGY, INC. CONSOLIDATED BALANCE SHEETS - (Continued) December 31, (in millions) LIABILITIES AND EQUITY Current Liabilities Accounts payable Accounts payable to affiliated companies Notes payable to affiliated companies Taxes accrued Interest accrued Current maturities of long-term...

  • Page 100
    ...other post-retirement benefit costs Contributions to qualified pension plans (Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions Receivables Receivables from affiliated companies Inventory Other current assets Increase (decrease) in Accounts payable Accounts...

  • Page 101
    ... taxes Significant non-cash transactions: Accrued capital expenditures Asset retirement obligation additions for spent nuclear fuel disposal related to the Progress Energy merger Capital expenditures financed through capital leases See Notes to Consolidated Financial Statements 2014 2013 2012...

  • Page 102
    PART II PROGRESS ENERGY, INC. CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDER'S EQUITY Accumulated Other Comprehensive Income Loss Net Gains on Pension Availableand OPEB Common for-Sale Related Stockholders' Noncontrolling Securities Adjustments Equity Interests 1 - - - $ 1 $ (23) - (2 ...

  • Page 103
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of 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, 2014 and ...

  • Page 104
    ... 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 105
    ... accounts of $5 at December 31, 2014) Receivables from affiliated companies Notes receivable from 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...

  • Page 106
    ...-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 commercial paper...

  • Page 107
    ... Dividends to parent Preferred 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 Net income Dividends to parent Balance at December 31, 2014 See Notes to Consolidated Financial Statements...

  • Page 108
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Florida, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Florida, Inc. and subsidiaries (the "Company") as of December 31, 2014 and ...

  • Page 109
    ... II DUKE ENERGY FLORIDA, 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 110
    ... Notes payable to affiliated companies Taxes accrued Interest accrued Current maturities of long-term debt Regulatory liabilities Other Total current liabilities Long-Term Debt Deferred Credits and Other Liabilities Deferred income taxes Accrued pension and other post-retirement benefit costs...

  • Page 111
    ... of short-term debt with original maturities greater than 90 days Notes payable and commercial paper Notes payable to affiliated companies Dividends to parent Dividends paid on preferred stock Other Net cash (used in) provided by financing activities Net (decrease) increase in cash and cash...

  • Page 112
    ... 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 Net income Other comprehensive income Dividend to parent Balance at December 31, 2014 See Notes to Consolidated Financial Statements...

  • Page 113
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Ohio, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Ohio, Inc. and subsidiaries (the "Company") as of December 31, 2014 and 2013, and...

  • Page 114
    ... operating revenues Operating Expenses Fuel 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...

  • Page 115
    ... Accrued pension and other post-retirement benefit costs Liabilities associated with assets held for sale 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...

  • Page 116
    ...for interest, net of amount capitalized Cash (received from) paid for income taxes Significant non-cash transactions: Accrued capital expenditures Transfer of Vermillion Generating Station to Duke Energy Indiana See Notes to Consolidated Financial Statements 2014 $ (495) 258 (4) (1) 941 (219) 8 27...

  • Page 117
    ... 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 Net loss Dividends to parent Balance at December 31, 2014 See Notes to Consolidated Financial Statements $(28...

  • Page 118
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Indiana, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Indiana, Inc. and subsidiary (the "Company") as of December 31, 2014 and 2013,...

  • Page 119
    ...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 other taxes Impairment charges...

  • Page 120
    ... income taxes Investment tax credits Accrued pension and other post-retirement benefit costs Asset 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...

  • Page 121
    ... paid for interest, net of amount capitalized Cash (received from) 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 2014 $ 359 416 (14) - 308 16 - (35...

  • Page 122
    ... 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 Net income Dividend to parent Balance at December 31, 2014 See Notes to Consolidated Financial Statements 102

  • Page 123
    ... Duke Energy Florida. Substantially all of Progress Energy's operations qualify for regulatory accounting. Duke Energy Progress is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke...

  • Page 124
    ... 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 is a regulated public utility primarily engaged in the generation, transmission, distribution and sale...

  • Page 125
    ...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) SIGNIFICANT ACCOUNTING POLICIES...

  • Page 126
    ... • 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) Investments in Debt and Equity Securities The Duke Energy...

  • Page 127
    ... unbilled revenues, to an affiliate, Cinergy Receivables Company, LLC (CRC) and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reï¬,ected on the Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 17 for further information...

  • Page 128
    ... ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, (in millions) Duke Energy Ohio Duke Energy Indiana 2014 2013 79 112 89 144 Allowance for Doubtful Accounts...

  • Page 129
    ... is accounted for and recognized at the time a loss is probable and can be reasonably estimated. See Note 7 for further information. Stock-Based Compensation Stock-based compensation represents costs related to stock-based awards granted to employees and Duke Energy Board of Directors (Board of...

  • Page 130
    ... in Note 4, due to conditions established by regulators in conjunction with merger transaction approvals, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana have restrictions on paying dividends or otherwise advancing funds to Duke Energy. At December 31, 2014 and...

  • Page 131
    ... 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 price of Duke Energy common shares on July 2, 2012...

  • Page 132
    ... 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 133
    ...• DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The Disposal Group is included in the Commercial Power segment. The following table presents information related to...

  • Page 134
    ... FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table presents the Disposal Group's carrying values in the Consolidated Balance Sheets' major classes of Assets held for sale. December 31, 2014...

  • Page 135
    ... 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, 2014 Regulated...

  • Page 136
    ... Combined Cycle (IGCC) project. See Note 4 for additional information about these charges. Regulated Utilities also recorded the reversal of expenses of $60 million, net of tax, related to a prior year Voluntary Opportunity Plan in accordance with Duke Energy Carolinas' 2011 rate case. See Note...

  • Page 137
    ... 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 Duke Energy Ohio has two reportable operating segments, Regulated Utilities...

  • Page 138
    ... 2014. These revenues relate to wholesale contracts and transmission revenues. The respective Regulated Utility and Regulated Utilities operating segments own substantially all of Duke Energy Carolinas', Progress Energy's, Duke Energy Progress', Duke Energy Florida's and Duke Energy Indiana's assets...

  • Page 139
    ... fuel Nuclear deferral Post in-service carrying costs and deferred operating expenses Gasification services agreement buyout Transmission expansion obligation Manufactured gas plant (MGP) Other Total regulatory assets Less: current portion Total non-current regulatory assets December 31, 2014 Duke...

  • Page 140
    ...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 and a full return...

  • Page 141
    ... 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) for retail purposes and over the longer of 10 years or the previously estimated planned retirement...

  • Page 142
    ... approve rates for retail electric and natural gas services within their states. 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 143
    ... by Duke Energy Progress, and Duke Energy Progress will receive cost recovery for early retired plants previously included in the depreciation rates. Duke Energy Florida FERC Transmission Return on Equity Complaint On February 12, 2012, Seminole Electric Cooperative, Inc. and Florida Municipal...

  • Page 144
    ... The 2012 Settlement provided for a $150 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...

  • Page 145
    ... date of such assets, without a general rate case at a 10.5 percent return on equity. On May 27, 2014, Duke Energy Florida petitioned the FPSC for a Determination of Need to (i) construct a 1,640 MW combined cycle natural gas plant in Citrus County, Florida to be in service in 2018 with an estimated...

  • Page 146
    ... 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) an application with the PUCO to adjust the MGP rider for investigation and remediation costs...

  • Page 147
    ...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) assuming timely recovery of financing costs related to the project...

  • Page 148
    ... and Light Company's historical cost. NC WARN FERC Complaint On December 16, 2014, NC WARN filed a complaint with the FERC against Duke Energy Carolinas and Duke Energy Progress that alleged Duke Energy Carolinas and Duke Energy Progress manipulated the electricity market by constructing costly and...

  • Page 149
    ... (b) (c) (d) NUCLEAR INSURANCE Duke Energy Indiana(d) 668 $ 116 Progress Energy(b) 873 $ 114 Duke Energy Florida(b) 873 $ 114 Duke Energy Ohio(c) 163 $ 9 Included in Net property, plant and equipment as of December 31, 2014, on the Consolidated Balance Sheets. Includes Crystal River Units 1 and...

  • Page 150
    ... to state premium taxes. Nuclear Property and Accidental Outage Coverage Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are members of Nuclear Electric Insurance Limited (NEIL), an industry mutual insurance company, which provides "all risk" property damage, decontamination, and...

  • Page 151
    ... Duke Energy Florida Duke Energy Ohio Duke Energy Indiana $ 89 25 15 1 14 42 7 North Carolina and South Carolina Ash Basins On February 2, 2014, a break in a 48-inch stormwater pipe beneath an ash basin at Duke Energy Carolinas' retired Dan River steam station caused a release of ash basin water...

  • Page 152
    ...DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) criteria for surface impoundments, groundwater monitoring and protection procedures and other operational and reporting...

  • Page 153
    ..., 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) matters. However, based on Duke Energy's past experiences with similar cases of...

  • Page 154
    ...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) North Carolina Ash Basin Grand Jury Investigation As a result of the Dan River ash basin water release...

  • Page 155
    .... • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) and medical cost claim payments is $864 million in excess of the selfinsured retention. Receivables for insurance...

  • Page 156
    ... 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) impact on Duke Energy Ohio's results of operations, cash ï¬,ows or financial position of these cases...

  • Page 157
    ... paper Short-term money pool borrowings Current maturities of long-term debt(f) Total long-term debt(f) 4.29% (a) Substantially all electric utility property is mortgaged under mortgage bond indentures. (b) Duke Energy includes $129 million and $787 million of capital lease purchase accounting...

  • Page 158
    ... • 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 Weighted Average Interest Rate 5.18...

  • Page 159
    ...purchase accounting adjustments related to the merger with Progress Energy. See Note 2 for additional information. The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash...

  • Page 160
    ... Relates to the securitization of accounts receivable at a subsidiary of Duke Energy Florida. Proceeds were used to repay short-term borrowings under the intercompany money pool borrowing arrangement and for general corporate purposes. See Note 17 for further details. (e) Proceeds were used to fund...

  • Page 161
    ... 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 Interest Rate...

  • Page 162
    ..., prices and with terms to be determined at the time of future offerings. The registration statement also allows for the issuance of common stock by Duke Energy. Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination ï¬,oating-rate demand notes, called...

  • Page 163
    ... 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) guarantees expire between 2015...

  • Page 164
    .... • 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 of jointly owned plant or facilities included on the Consolidated Balance...

  • Page 165
    .... • 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 changes in the liability associated with asset retirement obligations. Duke Energy...

  • Page 166
    ... 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 summarizes information about nuclear decommissioning cost studies. Annual Funding...

  • Page 167
    ... DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 10. PROPERTY, PLANT AND EQUIPMENT The following tables summarize the property, plant and equipment. December 31, 2014...

  • Page 168
    ... presents capitalized interest, which includes the debt component of AFUDC. Years Ended December 31, (in millions) Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana 2014 $75 38 11 10 1 10 6 2013 $ 89 41 19 16 3 11 9 2012...

  • Page 169
    ... 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 170
    ... 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 171
    ... to Duke Energy Corporate Services (DECS), a consolidated subsidiary of Duke Energy, and these costs were no longer charged out of Progress Energy. Progress Energy recorded a non-cash after-tax equity transfer related to the contribution of PESC to DECS in its Consolidated Statements of Changes in...

  • Page 172
    ... 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) to reï¬,ect appropriate debt and equity ratios for its regulated...

  • Page 173
    ...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 notional amounts for derivatives related to interest rate risk. December 31, 2014 Duke Energy...

  • Page 174
    ... 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 the gains and losses recognized on cash...

  • Page 175
    ..., 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 the gains and losses during the year recognized on cash...

  • Page 176
    ..., 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 the gains and losses during the year recognized on cash...

  • Page 177
    ... 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 derivative contracts subject to enforceable...

  • Page 178
    ... ENERGY PROGRESS, INC. • 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 shows the fair value of derivatives and the line items in the Consolidated Balance...

  • Page 179
    ...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 table shows the fair value of derivatives and the line items in the Consolidated Balance...

  • Page 180
    ... 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 following table shows the fair value of derivatives and the line items in the Consolidated Balance...

  • Page 181
    ... FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit-risk related payment...

  • Page 182
    ...-sale securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans, (iii) Duke Energy's captive insurance...

  • Page 183
    ... 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. December 31, 2014 Gross Unrealized Holding...

  • Page 184
    ... 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 table presents the estimated fair value of investments in available-for-sale securities...

  • Page 185
    ... 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. December 31, 2014 Gross Unrealized Holding...

  • Page 186
    ... 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, 2014 Gross...

  • Page 187
    ...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, 2014 Gross Unrealized Holding Gains...

  • Page 188
    ... 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 following table presents the estimated fair value of investments in available-for-sale securities...

  • Page 189
    ... 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 190
    ...• 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 191
    ..., 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 balances of...

  • Page 192
    ... 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 193
    ..., 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) Balance at beginning of period Purchases, sales...

  • Page 194
    ..., 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 balances of...

  • Page 195
    ..., 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 balances of...

  • Page 196
    ... 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 197
    ... 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) Available-for-sale equity securities...

  • Page 198
    ... 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 Investment Type Duke Energy Natural gas contracts FERC mitigation power sale...

  • Page 199
    ... Consolidated Balance Sheets. December 31, 2014 Duke Energy Duke Energy Carolinas (in millions) ASSETS Current Assets Restricted receivables of variable interest entities (net of allowance for doubtful accounts) Other Investments and Other Assets Other Property, Plant and Equipment Property, plant...

  • Page 200
    ... 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 Duke Duke Energy Energy Carolinas Progress (in millions) ASSETS Current...

  • Page 201
    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 ...

  • Page 202
    ...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 Duke...

  • Page 203
    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 204
    ... Duke Energy Progress Duke Energy Florida Duke Energy Ohio (a) Includes $5 million and $14 million of accelerated stock award expense and $2 million and $19 million of COBRA and health care reimbursement expenses for 2013 and 2012, respectively. In conjunction with the retirement of Crystal River...

  • Page 205
    ... of tax, for stock-based compensation. Years Ended December 31, (in millions) Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana 2014 $ 38 12 14 9 5 5 3 2013 $ 52 13 23 14 9 4 4 2012 $ 48 12 25 16 9 4 4 The exercise price...

  • Page 206
    ... 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 summarizes information about restricted stock...

  • Page 207
    ... and shared service costs discussed in Note 13. Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants' contributions...

  • 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, 2013 Duke...

  • Page 209
    ...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) Reconciliation of Funded Status to Net Amount Recognized Year Ended December 31, 2014...

  • Page 210
    ..., 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 the Consolidated Balance Sheets December 31, 2014 Duke Energy...

  • Page 211
    ... Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana. The following tables present the assumptions or range of assumptions used for pension benefit accounting. December 31, 2014 Benefit Obligations Discount rate...

  • Page 212
    ... 31, 2012 Duke Energy $ 2 12 4 1 $ 19 Duke Energy Carolinas $- 1 - - $ 1 Progress Energy $ 2 8 5 (1) $ 14 Duke Energy Progress $ 1 1 1 - $ 3 Duke Energy Florida $- 2 - - $ 2 Duke Energy Ohio Duke Energy Indiana $- - - - $- (in millions) Service cost Interest cost on projected benefit obligation...

  • Page 213
    ...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) Reconciliation of Funded Status to Net Amount Recognized Year Ended December 31, 2014...

  • Page 214
    ..., 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 the Consolidated Balance Sheets December 31, 2014 Duke Energy...

  • Page 215
    ...INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Assumptions Used for Pension Benefits Accounting The discount rate used to determine the current year pension...

  • Page 216
    ... obligation Expected return on plan assets Amortization of actuarial loss (gain) Amortization of prior service credit Net periodic post-retirement benefit costs Year Ended December 31, 2012 Duke Energy $ 16 56 (17) 14 (8) 10 9 $ 80 Duke Energy Carolinas $ 2 15 (10) 3 (5) 7 1 $ 13 Progress Energy...

  • Page 217
    .... • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs Year Ended December 31, 2014 Duke...

  • Page 218
    ..., 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 the Consolidated Balance Sheets December 31, 2014 Duke Energy...

  • Page 219
    ... OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following tables present the assumptions used for other post-retirement benefits accounting. December 31, 2014 Benefit Obligations Discount rate Net Periodic Benefit Cost Discount rate...

  • Page 220
    ... • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) PLAN ASSETS Description and Allocations Duke Energy Master Retirement Trust Assets for both the qualified pension...

  • Page 221
    ... investments include construction costs, and the status of construction completion and leasing. Investments in real estate limited partnerships are valued as Level 3. (a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana...

  • Page 222
    ... bonds - foreign Cash Asset backed securities Net pending transactions and other investments Total assets(a) Level 3 $ 54 3 - 307 53 95 - 33 1 - - - $ 546 (a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana were allocated...

  • Page 223
    ... 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 includes pretax employer...

  • 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, 2013 Duke...

  • Page 225
    ...• 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) Statutory Rate Reconciliation The following tables present a reconciliation of income tax...

  • Page 226
    ... Pension, post-retirement and other employee benefits Progress Energy merger purchase accounting adjustments(a) Tax credits and NOL carryforwards Investments and other assets Other Valuation allowance Total deferred income tax assets Investments and other assets Accelerated depreciation rates...

  • Page 227
    ... Capital lease obligations Pension, post-retirement and other employee benefits Progress Energy merger purchase accounting adjustments(a) Tax credits and NOL carryforwards Other Valuation allowance Total deferred income tax assets Investments and other assets Accelerated depreciation rates...

  • Page 228
    ... ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) UNRECOGNIZED TAX BENEFITS The following tables present changes to unrecognized tax benefits. Year Ended December 31, 2014...

  • Page 229
    ...ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2014 Duke Energy $ 121 8 Duke Energy Carolinas $ 112 - Progress Energy $ 3 - Duke Energy Progress $ 2 - Duke Energy Florida $ 2 - Duke Energy...

  • Page 230
    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) 23. OTHER INCOME AND ...

  • Page 231
    ...436) $ (61) $ 421 $ (547) $(1,623) $ 3.46 $ 3.46 2013(a) Costs to achieve Progress Energy merger (see Note 2) $ Crystal River Unit 3 charges (see Note 4) Harris and Levy nuclear development charges (see Note 4) Gain on sale of DukeNet (see Note 12) Total $ (55) $ (82) $ (88) $ (72) $ (297) - (295...

  • Page 232
    ...(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 First Second Third Quarter Quarter Quarter Fourth Quarter Total (a) Revised retail rates became effective in June in North Carolina...

  • Page 233
    ... • 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 (in millions) 2014 Operating revenues...

  • Page 234
    ...& Touche LLP, Duke Energy's independent registered public accounting firm, has issued an attestation report on the effectiveness of Duke Energy's internal control over financial reporting. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Duke Energy will provide information that is...

  • Page 235
    ...Indiana $1.2 - 0.1 $1.3 (in millions) Types of Fees Audit Fees(a) Audit-Related Fees(b) Tax Fees(c) Total Fees (a) 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...

  • Page 236
    ...Financial Statements) 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 Progress, Inc. Consolidated Financial Statements...

  • Page 237
    ... Financial Statements) 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 Indiana, Inc. Consolidated Financial Statements...

  • Page 238
    ... duly authorized. Date: February 27, 2015 DUKE ENERGY CORPORATION (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 registrant and...

  • Page 239
    ...duly authorized. Date: February 27, 2015 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 registrant and...

  • Page 240
    ... duly authorized. Date: February 27, 2015 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 registrant and in...

  • Page 241
    ...duly authorized. Date: February 27, 2015 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 registrant and...

  • Page 242
    ... duly authorized. Date: February 27, 2015 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 registrant and...

  • Page 243
    ... duly authorized. Date: February 27, 2015 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 registrant and in...

  • Page 244
    ... duly authorized. Date: February 27, 2015 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 registrant and...

  • Page 245
    ... 3, 2014, File No. 1-32853). Limited Liability Company Operating Agreement of Duke Energy Carolinas, LLC (incorporated by reference to Exhibit 3.2 to registrant's Current Report on Form 8-K filed on April 7, 2006, File No. 1-04928). Regulations of Duke Energy Ohio, Inc. (formerly The Cincinnati Gas...

  • Page 246
    ... 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 247
    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 248
    ...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 of...

  • Page 249
    ... Herbst) and forms of global notes (incorporated by reference to Exhibit 4.1 to Duke Energy Progress, Inc.'s Current Report on Form 8-K filed on November 20, 2014, File No. 1-03382). Indenture (for Debt Securities) between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and The...

  • Page 250
    ... Duke Energy Carolinas Duke Energy Progress X Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 4.6 Indenture (for [Subordinated] Debt Securities)(open ended) (incorporated by reference to Exhibit 4(a)(2) to Duke Energy Progress, Inc.'s (formerly Carolina Power & Light Company...

  • Page 251
    ... Florida Power Corporation (d/b/a Progress Energy Florida, Inc.)) Registration Statement on Form S-3 filed on November 18, 2008, File No. 333-155418). Original Indenture (Unsecured Debt Securities) between Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric Company) and The Bank of New...

  • Page 252
    ... IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana X Exhibit Number 4.12.1 Third Supplemental Indenture, dated as of March 15, 1998, (incorporated by reference to Exhibit 4 to Duke Energy Indiana, Inc.'s (formerly PSI Energy, Inc.) Annual Report...

  • Page 253
    ...Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana X Exhibit Number 4.13.13 Fifty-ninth Supplemental Indenture, dated as of March 23, 2009, (incorporated by reference to Exhibit 4.1 to Duke Energy Indiana, Inc.'s (formerly PSI Energy, Inc.) Current Report...

  • Page 254
    PART IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 4.19 Form of Duke Energy InterNote (Floating Rate), dated as of November 13, 2012, (incorporated by reference to Exhibit 4.2 to Duke Energy Corporation's Current Report on Form...

  • Page 255
    ... between Duke Capital LLC and Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric Company), dated as of April 10, 2006, (incorporated by reference to Exhibit 10.1 to registrant's Current Report on Form 8-K filed on April 14, 2006, File No. 1-01232). Duke Energy Progress Energy 10...

  • Page 256
    ... 7, 2006, File No. 1-03543). 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 reference to Exhibit 10.1 to Duke Energy Corporation's Current Report on Form 8-K filed on June 30, 2006...

  • Page 257
    PART IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 10.23 Operating Agreement of Pioneer Transmission, LLC (incorporated by reference to Exhibit 10.1 to Duke Energy Corporation's Quarterly Report on Form 10-Q for the quarter ...

  • Page 258
    ... Share Award (incorporated by reference to Exhibit 10.64 to Duke Energy Corporation's Annual Report on Form 10-K for the year ended December 31, 2012 filed on March 1, 2013, File No. 1-32853). Amended and Restated Duke Energy Corporation Executive Cash Balance Plan, dated as of January 1, 2014...

  • Page 259
    ... 15, 2011. Precedent and Related Agreements between Duke Energy Florida, Inc. (formerly Florida Power Corporation d/b/a Progress Energy Florida, Inc. ("PEF")), Southern Natural Gas Company, Florida Gas Transmission Company ("FGT"), and BG LNG Services, LLC ("BG"), including: a) Precedent Agreement...

  • Page 260
    ... No. 1-32853). Duke Energy Corporation Executive Short-Term Incentive Plan, effective February 25, 2013, (incorporated by reference to Exhibit 10.1 to registrant's Current Report on Form 8- filed on May 7, 2013, File No. 1-32853). Duke Energy Corporation 2013 Director Compensation Program Summary...

  • Page 261
    ...Registered Public Accounting Firm. Consent of Independent Registered Public Accounting Firm. Power of attorney authorizing Lynn J. Good and others to sign the annual report on behalf of the registrant and certain of its directors and officers. Certified copy of resolution of the Board of Directors...

  • Page 262
    PART IV Duke Energy Carolinas Duke Energy Progress 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 Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number *32.1.4 *32.1.5 *32.1.6 *32.1.7 *32.2.1 *32.2.2 *32.2.3 *32.2.4 *32...

  • Page 263
    ... INFORMATION Annual Meeting The 2015 Annual Meeting of Duke Energy Shareholders will be: Date: Thursday, May 7, 2015 Time: Place: 10 a.m. O.J. Miller Auditorium Energy Center 526 South Church Street Charlotte, NC 28202 Financial Publications Duke Energy's Annual Report and related financial...

  • Page 264
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