Duke Energy 2014 Annual Report Download - page 197

Download and view the complete annual report

Please find page 197 of the 2014 Duke Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 264

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264

177
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
December 31, 2013
(in millions) Total Fair Value Level 1 Level 2 Level 3
Available-for-sale equity securities $65 $65 $— $—
Available-for-sale debt securities 29 — 29 —
Derivative assets 12—— 12
Net assets (liabilities) $106 $ 65 $ 29 $ 12
The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Years Ended December 31,
(in millions) 2014 2013 2012
Balance at beginning of period $12 $10 $ 4
Total pretax realized or unrealized gains included in earnings 3836
Purchases, sales, issuances and settlements:
Purchases 49 20 —
Issuances ——22
Settlements (41) (30) (52)
Total losses included on the Consolidated Balance Sheet as regulatory assets or liabilities (9) 4—
Balance at end of period $14 $12 $10
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following table includes quantitative information about the Duke Energy Registrants’ derivatives classifi ed as Level 3.
December 31, 2014
Investment Type
Fair Value
(in millions) Valuation Technique Unobservable Input Range
Duke Energy
Natural gas contracts $ (5) Discounted cash fl ow
Forward natural gas curves – price per Million British Thermal
Unit (MMBtu) $ 2.12 —$ 4.35
Financial transmission rights (FTRs) $ 14 RTO auction pricing FTR price – per Megawatt-Hour (MWh) $ (1.92) —$ 9.86
Electricity contracts $ (1) Discounted cash fl ow Forward electricity curves – price per MWh $ 25.16 —$ 51.75
Commodity capacity option contracts $ 2 Discounted cash fl ow Forward capacity option curves – price per MW day $ 21.00 —$109.00
Reserves $(11) Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives $ (1)
Duke Energy Ohio
Electricity contracts $ (6)Discounted cash fl ow Forward electricity curves – price per MWh $ 25.25 —$ 51.75
Natural gas contracts $ (5) Discounted cash fl ow Forward natural gas curves – price per MMBtu $ 2.12 —$ 4.35
Reserves $ (7) Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives $(18)
Duke Energy Indiana
FTRs $ 14 RTO auction pricing FTR price – per MWh $ (1.92) —$ 9.86