Duke Energy 2014 Annual Report Download - page 70

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PART II
December 31, 2014
(in millions)
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Facility Size(a) $ 6,000 $ 2,250 $1,000 $ 750 $ 650 $650 $ 700
Reduction to backstop issuances
Commercial paper(b) (2,021) (1,479) (300) — (29) (38) (175)
Outstanding letters of credit (70) (62) (4) (2) (1) — (1)
Tax-exempt bonds (116) — (35) — — — (81)
Available capacity $ 3,793 $ 709 $ 661 $748 $620 $612 $ 443
(a) Represents the sublimit of each borrower at December 31, 2014. The Duke Energy Ohio sublimit includes $100 million for Duke Energy Kentucky.
(b) Duke Energy issued $475 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana. The balances are included within Long-Term Debt
Payable to Affi liated Companies in the Consolidated Balance Sheets.
On February 20, 2015, Duke Energy Carolinas, Duke Energy Progress and
Duke Energy Business Services LLC (DEBS), a wholly owned subsidiary of Duke
Energy, each entered into a Memorandum of Plea Agreement (Plea Agreements)
in connection with the investigation initiated by the United States Department
of Justice Environmental Crimes Section and the United States Attorneys for the
Eastern District of North Carolina, the Middle District of North Carolina and the
Western District of North Carolina (collectively, the USDOJ). Under the terms
of the Plea Agreements, Duke Energy Carolinas and Duke Energy Progress are
required to each maintain $250 million of available capacity under the Master
Credit Facility as security to meet their obligations under the Plea Agreements,
in addition to certain other conditions set out in the Plea Agreements. The
Plea Agreements are subject to court approval. See Note 5 to the Consolidated
Financial Statements, “Commitments and Contingencies,” for additional
information.
PremierNotes
Duke Energy has an effective registration statement (Form S-3) with the
Securities and Exchange Commission (SEC) to sell up to $3 billion of variable
denomination fl oating rate demand notes, called PremierNotes. The Form S-3
states that no more than $1.5 billion of the notes will be outstanding at any
particular time. The notes are offered on a continuous basis and bear interest
at a fl oating rate per annum determined by the Duke Energy PremierNotes
Committee, or its designee, on a weekly basis. The interest rate payable on notes
held by an investor may vary based on the principal amount of the investment.
The notes have no stated maturity date, are non-transferable and may be
redeemed in whole or in part by Duke Energy or at the investor’s option at any
time. The balance as of December 31, 2014 and December 31, 2013, was $968
million and $836 million, respectively. The notes are short-term debt obligations
and are refl ected as Notes payable and commercial paper on Duke Energy’s
Consolidated Balance Sheets.
Shelf Registration
In September 2013, Duke Energy fi led a Form S-3 with the SEC. Under this
Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress
Energy may issue debt and other securities in the future at amounts, 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.
CAPITAL EXPENDITURES
Duke Energy continues to focus on reducing risk and positioning its
business for future success and will invest principally in its strongest business
sectors. Based on this goal, the majority of Duke Energy’s total projected capital
expenditures are allocated to the Regulated Utilities segment. Duke Energy’s
projected capital and investment expenditures for the next three fi scal years are
included in the table below.
(in millions) 2015 2016 2017
New generation $ 825 $ 2,200 $ 850
Environmental 275 300 450
Nuclear fuel 450 475 425
Major nuclear 300 175 150
Customer additions 500 525 550
Grid modernization and other transmission
and distribution projects 1,050 1,375 1,525
Maintenance 2,550 2,775 2,300
Total Regulated Utilities 5,950 7,825 6,250
Commercial Power, International Energy and Other 1,075 775 800
Total committed expenditures 7,025 8,600 7,050
Discretionary expenditures 400 775 775
Total projected capital and investment expenditures $ 7,425 $ 9,375 $ 7,825
DEBT MATURITIES
The following table shows the signifi cant components of Current maturities
of long-term debt on the Consolidated Balance Sheets. The Duke Energy
Registrants currently anticipate satisfying these obligations with cash on hand
and proceeds from additional borrowings.
(in millions) Maturity Date Interest Rate
December 31,
2014
Unsecured Debt
Duke Energy (Parent) April 2015 3.350% $ 450
First Mortgage Bonds
Duke Energy Ohio March 2015 0.375% 150
Duke Energy Progress April 2015 5.150% 300
Duke Energy Carolinas October 2015 5.300% 500
Duke Energy Florida November 2015 0.650% 250
Duke Energy Florida December 2015 5.100% 300
Duke Energy Progress December 2015 5.250% 400
Tax-exempt Bonds
Duke Energy Progress January 2015 0.108% 243
Other 214
Current maturities of
long-term debt $ 2,807