Progress Energy 2012 Annual Report Download

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2012 Annual Report and Form 10-K

Table of contents

  • Page 1
    2012 Annual Report and Form 10-K

  • Page 2
    ... 1997 2013 Introducing the new Duke Energy. For more than a century, Duke Energy has been a leader of innovation and adaptation. Today, as the nation's largest regulated electric utility, we're even stronger and better able to deliver for our investors, communities and the 7 million customers in...

  • Page 3
    ... the best employee safety record in our company's history. The way they have pulled together bodes well for our future. Our new logo on this annual report cover is symbolic of this new beginning in our first full year since becoming the largest electric utility in the United States. What matters...

  • Page 4
    ... Total Duke Energy Corporation shareholders' equity $113,856 $36,244 $40,863 $62,526 $18,679 $22,772 $59,090 $17,935 $22,522 a Significant transactions reflected in the results above include: 2012 costs to achieve the merger with Progress Energy (see Note 2 to the Consolidated Financial Statements...

  • Page 5
    ...,000 natural gas customers in Ohio and Kentucky. Our commercial businesses supply power to communities across the United States and in seven Latin American countries. Thanks to the merger, our customers are benefiting from the efficiency and flexibility of operating our power plants in the Carolinas...

  • Page 6
    ... year, Site Selection magazine in 2012 recognized Duke Energy as being among the nation's 10 best utility companies in promoting economic development. With the merger, we are even better positioned to recruit new businesses to our communities. The same magazine ranked all six retail-customer states...

  • Page 7
    ... time last year to engaging with employees across the company: small-group dialogue sessions, large open-forum meetings and informal visits to our Total shareholder return* Duke Energy Corporation One Year S&P 500 Index 1.4 16.0% % Philadelphia Utility Index -0.6% Duke Energy Corporation...

  • Page 8
    ...Energy Corporation 2012 Annual Report Employees The recent merger shifted Duke Energy's business Our year-end 2012 number of employees in the United States and Latin America. mix toward a lower-risk regulated utility focus. We now have six regulated electric utilities and two regulated natural gas...

  • Page 9
    ...000 megawatts of Midwest commercial electric-generating capacity. These power plants, fueled by coal, natural gas and oil, are well-positioned to meet new environmental regulations. The financial returns of the plants are challenged by the currently low capacity prices and energy margins in the PJM...

  • Page 10
    ... power system for our customers and comply with new environmental rules. In 2013 we have rate cases in North Carolina and South Carolina, as well as electric and gas distribution rate cases in Ohio. We will continue to offer competitive rates - in some cases, well below the national average. Merger...

  • Page 11
    ... of wind and solar generation in our commercial businesses. Coal Nuclear Natural Gas Oil Hydro 5% 3% 1% 2005 data as if Duke Energy and Progress Energy were already merged; 2015 data assume Crystal River 1-2 retirement (no definitive decision yet); no replacement power Readiness for the road...

  • Page 12
    Duke Energy Corporation 2012 Annual Report A personal journey Such collaboration enabled us to accomplish many things over my 25 years. We've delivered total shareholder returns at an average rate above 12 percent per year. We also dramatically reduced our environmental footprint. I supported the ...

  • Page 13
    ... and manages power plants, primarily located in the Midwest, and a renewable energy portfolio. Commercial Power's subsidiary, Duke Energy Retail, serves retail electric customers primarily in Ohio with generation and other energy services at competitive rates. Through Duke Energy Generation Services...

  • Page 14
    ... and Chief Financial Officer - Northeast Utilities Member, Audit Committee, Finance and Risk Management Committee Director of Duke Energy or its predecessor companies since 2009 E. Marie McKee President - Corning Museum of Glass Chair, Compensation Committee Member, Corporate Governance Committee...

  • Page 15
    ... to maintain relationships with customers, employees or suppliers post-merger; the ability to successfully integrate the Progress Energy businesses and realize cost savings and any other synergies expected from the merger; the risk that the credit ratings of the combined company or its subsidiaries...

  • Page 16
    ... Adjusted Diluted Earnings per Share ("EPS") Duke Energy's 2012 Annual Report references 2012 adjusted earnings of $2,483 million and adjusted diluted EPS of $4.32. Adjusted earnings and adjusted diluted EPS is a non-GAAP (generally accepted accounting principles) financial measure as it represents...

  • Page 17
    ... contribution of Duke Energy's business segments by incorporating the direct financing methods or capital structures of the business segments as well as the income tax attributes of the businesses and regions in which they operate. Year Ended December 31, 2012 Management also uses adjusted segment...

  • Page 18
    ... time, as management is unable to project special items or mark-to-market adjustments for future periods. Total Available Liquidity Duke Energy's 2012 Annual Report includes a discussion of total available liquidity. Total available liquidity is a non-GAAP financial measure as it represents cash...

  • Page 19
    DUKE ENERGY CORPORATION 2012 FORM 10-K

  • Page 20

  • Page 21
    ...-382-3853 State of Incorporation: North Carolina CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 State of Incorporation: North Carolina FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. 299...

  • Page 22
    ... CORPORATION (DUKE ENERGY) 1. BUSINESS ...GENERAL ...U.S. FRANCHISED ELECTRIC AND GAS ...COMMERCIAL POWER...INTERNATIONAL ENERGY ...OTHER ...GEOGRAPHIC REGIONS ...EMPLOYEES ...EXECUTIVE OFFICERS OF DUKE ENERGY ...ENVIRONMENTAL MATTERS ...DUKE ENERGY CAROLINAS, LLC (DUKE ENERGY CAROLINAS) PROGRESS...

  • Page 23
    ......Employee Retirement Income Security Act ESP ...Electric Security Plan ETR ...Effective tax rate FASB ...Financial Accounting Standards Board FCC ...Federal Communications Commission FERC ...Federal Energy Regulatory Commission FDEP...Florida Department of Environmental Protection Florida Progress...

  • Page 24
    ... Municipal Power Agency IRS ...Internal Revenue Service ITC...Investment Tax Credit IURC ...Indiana Utility Regulatory Commission KPSC ...Kentucky Public Service Commission kV ...Kilovolt kWh ...Kilowatt-hour Levy ...Progress Energy Florida's proposed nuclear plant in Levy County, Fla. Legacy Duke...

  • Page 25
    ...as Duke Energy Midwest). These electric and gas operations are subject to the rules and regulations of the Federal Energy Regulatory Commission (FERC), the North Carolina Utilities Commission (NCUC), the Public Service Commission of South Carolina (PSCSC), the Florida Public Service Commission (FPSC...

  • Page 26
    ... services for natural gas to 500,000 customers in southwestern Ohio and northern Kentucky. Electricity is also sold wholesale to incorporated municipalities, electric cooperative utilities and other load serving entities. Duke Energy Carolinas' and Progress Energy Carolinas' service areas share...

  • Page 27
    ... 2012, as part of its annual nuclear cost recovery filing, Progress Energy Florida updated the Levy project schedule and cost. Due to lower-than-projected customer demand, the lingering economic slowdown, uncertainty regarding potential carbon regulation and current low natural gas prices, Progress...

  • Page 28
    ... related to potential plant retirements see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." Fuel Supply USFE&G relies principally on coal, natural gas and nuclear fuel for its generation of electric energy. The following table lists USFE&G's sources of power and fuel costs...

  • Page 29
    ... requirements through at least 2013 and cover fabrication services requirements for these plants through at least 2018. The cost of termination of nuclear fuel procurement contracts that Progress Energy Florida has related to Crystal River Unit 3 are not expected to be material. For subsequent years...

  • Page 30
    ... and conservation, capacity costs, environmental compliance and utility plant. Fuel, fuel-related costs and certain purchased power costs are eligible for recovery by USFE&G's regulated utilities. USFE&G uses coal, oil, hydroelectric, natural gas and nuclear power to generate electricity, thereby...

  • Page 31
    ... be allowed to recover costs related to manufactured gas plant (MGP) sites which are currently used and useful in the provision of natural gas distribution service. Duke Energy Ohio filed its objection to the staff report on February 4, 2013. Duke Energy Ohio expects revised rates, if approved, to...

  • Page 32
    ... Matters - Rate Related Information." Federal The FERC approves USFE&G's cost-based rates for electric sales to certain wholesale customers, as well as sales of transmission service. Regulations of FERC and the state utility commissions govern access to regulated electric and gas customers and other...

  • Page 33
    ... used in electric generation and purchased power in Progress Energy Florida's and Progress Energy's Statements of Operations and Comprehensive Income for the year ended December 31, 2012. Progress Energy Florida will refund this replacement power liability on a pro rata basis based on the in-service...

  • Page 34
    ...electricity into wholesale markets in January 2012 and currently receive wholesale energy margins and capacity revenues from PJM at market rates. Commercial Power has economically hedged its forecasted coal-fired generation and a significant portion of its forecasted gas-fired generation for 2013...

  • Page 35
    ... gas to its gas turbine generators. In general Commercial Power hedges its natural gas requirements using financial contracts. Physical gas is purchased in the spot market to meet generation needs. Competition and Regulation International Energy's sales and marketing of electric power and natural...

  • Page 36
    ... Officer, Regulated Utilities. Mr. Trent assumed his current position in December 2012. He previously held the position of Executive Vice President, Regulated Utilities upon the merger with Progress Energy in July 2012 and prior to that, President, Commercial Businesses from July 2009 until July...

  • Page 37
    ... costs allocated by its parent, Duke Energy. Progress Energy Progress Energy, Inc. is a public utility holding company primarily engaged in the regulated electric utility business. Headquartered in Raleigh, North Carolina, it owns, directly or indirectly, all of the outstanding common stock...

  • Page 38
    ... PUCO, the KPSC and FERC. Duke Energy Ohio Business Segments. At December 31, 2012, Duke Energy Ohio operated two business segments, both of which are considered reportable segments under the applicable accounting rules: Franchised Electric and Gas and Commercial Power. For additional information on...

  • Page 39
    ... related activities, which may limit their ability to recover costs. The Duke Energy Registrants' franchised electric businesses are regulated on a cost-of-service/rate-of-return basis subject to the statutes and regulatory commission rules and procedures of North Carolina, South Carolina, Florida...

  • Page 40
    ... by utilities and other energy companies to deliver electricity sold to the wholesale market. FERC's power transmission regulations, as well as those of Duke Energy's international markets, require wholesale electric transmission services to be offered on an open-access, non-discriminatory basis. If...

  • Page 41
    ... cash ï¬,ows. The Duke Energy Registrants are exposed to the effects of market ï¬,uctuations in the price of natural gas, coal, fuel oil, nuclear fuel, electricity and other energy-related commodities, including emission allowances, as a result of their ownership of energy-related assets. Fuel costs...

  • Page 42
    ... adverse effect on their businesses. In particular, the Duke Energy Registrants may experience increased capital and operating costs to implement increased security for their cyber systems and plants, including nuclear power plants under the NRC's design basis threat requirements, such as additional...

  • Page 43
    ... retirement could result in continued purchases of replacement power and/or additional capital and operating costs associated with construction of replacement capacity resources to continue to service Progress Energy Florida's customer needs. However, there is no definitive plan for new generating...

  • Page 44
    ..., LLC (PJM) conducts Reliability Pricing Model (RPM) base residual auctions for capacity on an annual planning year basis. The results of the PJM RPM base residual auction are impacted by the supply and demand of generation and load and also may be impacted by congestion and PJM rules relating to...

  • Page 45
    ... I ITEM 2. PROPERTIES U.S. FRANCHISED ELECTRIC AND GAS The following table provides information related to USFE&G's electric generation stations as of December 31, 2012. The MW displayed in the table below are based on summer capacity. Facility Duke Energy Carolinas: Oconee Catawba(a) Belews Creek...

  • Page 46
    ... unit that began in September 2009 and the related delaminations, no nuclear power was generated in 2012, 2011 or 2010. This generation facility is owned by Progress Energy Florida and various municipal electric companies. In February 2013, Duke Energy announced the retirement of Crystal River Unit...

  • Page 47
    ... all of USFE&G's electric plant in service is mortgaged under indentures relating to Duke Energy Carolinas', Progress Energy Carolinas', Progress Energy Florida's, Duke Energy Ohio's and Duke Energy Indiana's various series of First Mortgage Bonds. COMMERCIAL POWER The following table provides...

  • Page 48
    ... wind projects located in Kansas and the 13 MW capacity INDU Solar Holding JV. Commercial Power's share in these projects in 440 MW. INTERNATIONAL ENERGY The following table provides additional information related to International Energy's electric generation stations as of December 31, 2012. The...

  • Page 49
    ... fines against Duke Energy International Geracao Paranapenema S.A. (DEIGP), totaling $15 million for failure to comply with reforestation measures allegedly required by state regulations in Brazil. On January 14, 2010, DEIGP received a notice that one of the fines was subsequently increased, on...

  • Page 50
    ... ISSUER PURCHASES OF EQUITY SECURITIES Duke Energy's common stock is listed for trading on the New York Stock Exchange (NYSE) (ticker symbol DUK). As of February 25, 2013, there were approximately 189,580 common stockholders of record. Common Stock Data by Quarter 2012 Stock Price Range(a) Dividends...

  • Page 51
    ... Utility Index 2012 Duke Energy Corporation 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 10-K for the year...

  • Page 52
    ...Energy, Inc. (Progress Energy), a North Carolina corporation engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. As a result of the merger, Merger Sub was merged into Progress Energy...

  • Page 53
    ... June 30, 2012. 2013 Objectives Duke Energy will focus on obtaining constructive regulatory outcomes related to its pending and planned rate cases, achieving intended savings and efficiencies from its merger with Progress Energy, successfully managing the Crystal River Unit 3 retirement and related...

  • Page 54
    ... is currently utilized at a number of retired domestic nuclear power plants and is one of three generally accepted approaches to decommissioning required by the NRC. Additional specifics about the decommissioning plan are being developed. Also on February 5, 2013, Progress Energy Florida announced...

  • Page 55
    ... operation and maintenance costs at USFE&G; and • Lower volumes as a result of customer switching in Ohio, net of retention by Duke Energy Retail Sales, LLC (Duke Energy Retail) at Commercial Power. Segment Results In 2012, management began evaluating segment performance based on segment income...

  • Page 56
    ... has been recast to conform to the current year presentation. None of these changes impacts the reportable operating segments or the Duke Energy Registrants' previously reported consolidated revenues, net income or EPS. Management also uses adjusted segment income as a measure of historical...

  • Page 57
    ...277 million increase in fuel expense (including purchased power and natural gas purchases for resale) primarily related to higher purchases of power in Ohio as a result of the new Ohio ESP, higher volumes of natural gas used in electric generation, higher coal prices, higher purchased power costs in...

  • Page 58
    ...terms of the 2012 FPSC Settlement Agreement, Progress Energy Florida is allowed to recover all remaining Crystal River Unit 3 investments and to earn a return on the Crystal River Unit 3 investments set at its current authorized overall cost of capital, adjusted to reï¬,ect a return on equity set at...

  • Page 59
    ... Progress Energy businesses and realize cost savings and any other synergies expected from the merger with Progress Energy could be different from what USFE&G expects and may have a significant impact on USFE&G's results of operations. Commercial Power Years Ended December 31, Variance 2012...

  • Page 60
    ... within Commercial Power's renewables reporting unit was approximately $108 million at December 31, 2012. The current low energy price projections, as well as recently issued and proposed environmental regulations pertaining to coal and coal-fired generating facilities, could impact future cash...

  • Page 61
    ... increase in Peru as a result of higher fuel costs and consumption as a result of increased dispatch, and higher purchased power and hydrocarbon royalty costs, and • A $25 million increase in Brazil as a result of unfavorable exchange rates, higher purchased power and a provision for a revenue tax...

  • Page 62
    ...of the addition of Progress Energy and mark-to-market activity at Duke Energy Trading and Marketing, LLC (DETM). Operating Expenses. The variance was driven primarily by charges related to the Progress Energy merger, increased severance costs and higher current year donations. These negative impacts...

  • Page 63
    ... primarily by $172 million of 2010 employee severance costs related to the voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina, prior year donations of $56 million to the Duke Energy Foundation, a decrease as a result of...

  • Page 64
    ...associated with the Progress Energy merger including donations, severance, and certain other costs, higher non-outage and outage costs at generation plants, increased corporate costs, and required donations resulting from the most recent North Carolina and South Carolina rate cases, partially offset...

  • Page 65
    ... Energy Carolinas' higher nuclear plant outage costs, and • A $261 million increase in Fuel used in electric generation and purchased power primarily due to the impact of establishing a $100 million regulatory liability for replacement power in accordance with Progress Energy Florida's 2012...

  • Page 66
    ...terms of the 2012 FPSC Settlement Agreement, Progress Energy Florida is allowed to recover all remaining Crystal River Unit 3 investments and to earn a return on the Crystal River Unit 3 investments set at its current authorized overall cost of capital, adjusted to reï¬,ect a return on equity set at...

  • Page 67
    ... purchased power, which was driven by favorable gas prices and nuclear plant outages; and generation mix, which was driven by nuclear plant outages, and • A $51 million increase in Impairment charges primarily due to the disallowance of transmission project costs, which are a portion of the FERC...

  • Page 68
    ...in the prior year. These increases were partially offset by lower natural gas prices and lower system requirements as a result of unfavorable weather conditions in the current year and a lower Crystal River Unit 3 indemnification charge for the estimated joint owner replacement power costs, • An...

  • Page 69
    ...higher purchased power expense as a result of the new ESP, partially offset by reduced gas sales volumes and lower natural gas costs. Interest Expense. The variance was primarily due to lower average debt balances in 2012 compared to 2011 and post in-service carrying charges related to new projects.

  • Page 70
    ... subsidiary Duke Energy Commercial Asset Management, LLC (DECAM) in the second quarter of 2011. Matters Impacting Future Duke Energy Ohio Results Duke Energy Ohio filed electric and gas distribution rate cases in July 2012. These planned rate cases are needed to recover capital investments, costs...

  • Page 71
    ... be required in 2013 or beyond. Also as discussed in Note 2 to the Consolidated Financial Statements, "Acquisitions and Sales of Other Assets," Duke Energy Carolinas and Progress Energy Carolinas recorded disallowance charges in 2012 in order to gain FERC approval of the merger between Duke Energy...

  • Page 72
    ...Management determines the appropriate discount rate for each of its reporting units based on the WACC for each individual reporting unit. The WACC takes into account both the pre-tax cost of debt and cost of equity (a major component of the cost of equity is the current risk-free rate on twenty year...

  • Page 73
    ... actions related to tax credit extensions, long-term growth rate assumptions, the market price of power and discount rates. As of December 31, 2012, the Progress Energy Florida reporting unit and the Renewables reporting unit's estimated fair value of equity exceeded the carrying value of equity by...

  • Page 74
    ... strong financial strength rating. For further information, see Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies." Accounting for Income Taxes Significant management judgment is required in determining Duke Energy's provision for income taxes, deferred tax assets and...

  • Page 75
    ... basis. Certain employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. Duke Energy recognized pre-tax qualified pension cost of $117 million in 2012. In 2013, Duke Energy's pre-tax qualified pension cost is expected...

  • Page 76
    ... amounts provided through power sales agreements and tax credits, future cash ï¬,ows and results of operations could be adversely impacted. Duke Energy's capitalization is balanced between debt and equity as shown in the table below. Projected 2013 Equity Debt 50% 50% Actual 2012 50% 50% Actual...

  • Page 77
    ... North Carolina overcollected fuels costs and current year overcollection of North Carolina and South Carolina fuel costs, partially offset by; • A $100 million increase in contributions to company sponsored pension plans due to contributions for Progress Energy pension plans. The decrease in cash...

  • Page 78
    ...junior subordinated debt in February 2013, with the remainder to repay a portion of commercial paper as it matures, to fund capital expenditures of our unregulated businesses and for general corporate purposes. In December 2012, Duke Energy entered credit agreements with a commercial bank for a $190...

  • Page 79
    ... from the issuance were used to fund Duke Energy Carolinas' ongoing capital expenditures and for general corporate purposes. In May 2010, Green Frontier Wind Power, LLC, a subsidiary of DEGS, an indirect wholly owned subsidiary of Duke Energy, entered into a long-term loan agreement for $325 million...

  • Page 80
    ...maintain its current balance sheet strength, or if its earnings and cash ï¬,ow outlook materially deteriorates, Duke Energy's credit ratings could be negatively impacted. Credit-Related Clauses. Duke Energy may be required to repay certain debt should the credit ratings at Duke Energy Carolinas fall...

  • Page 81
    ...in Other current assets in the Consolidated Balance Sheets as of December 31, 2012. On November 13, 2012, Duke Energy filed a prospectus supplement to the September 2010 Form S-3 with the Securities and Exchange Commission (SEC), to sell up to $1 billion of fixed or variable rate unsecured senior...

  • Page 82
    ... a total of $195 million for nuclear fuel contractual obligations related to Crystal River Unit 3. Also includes firm capacity payments that provide Duke Energy with uninterrupted firm access to electricity transmission capacity and natural gas transportation contracts, as well as undesignated...

  • Page 83
    ...in the prices of electricity, coal, natural gas and other energy-related products marketed and purchased as a result of its ownership of energy related assets. The Duke Energy Registrants' exposure to these ï¬,uctuations is limited by the cost-based regulation of its U.S. Franchised Electric and Gas...

  • Page 84
    ... costs or project delays in the event of non-performance. Credit risk associated with the Duke Energy Registrants' service to residential, commercial and industrial customers is generally limited to outstanding accounts receivable. The Duke Energy Registrants mitigate this credit risk by requiring...

  • Page 85
    ... Financial Statements, "Employee Benefit Plans," for additional information on pension plan assets. NDTF. As required by the NRC, NCUC, PSCSC and the FPSC, Duke Energy Carolinas, Progress Energy Carolinas and Progress Energy Florida maintain trust funds to fund the costs of nuclear decommissioning...

  • Page 86
    ... impact the amount of costs recovered through Duke Energy Carolinas', Progress Energy Carolinas' and Progress Energy Florida's rates. See Note 9 to the Consolidated Financial Statements, "Asset Retirement Obligations" for additional information regarding nuclear decommissioning costs. See Note 17 to...

  • Page 87
    ... 2012, total planned and potential retirements could exceed 3,900 MW of coal-fired generating capacity. The Duke Energy Registrants would also expect to incur costs for replacement generation as a result of the potential coal-fired power plant retirements. Until the final regulatory requirements...

  • Page 88
    ......Consolidated Balance Sheets...Consolidated Statements of Cash Flows ...Consolidated Statements of Common Stockholder's Equity ...82 83 84 86 88 Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. (Progress Energy Carolinas) Report of Independent Registered Public Accounting Firm...

  • Page 89
    ..., North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related consolidated statements of operations, comprehensive income, equity, and cash ï¬,ows for each of the three years...

  • Page 90
    ... Fuel used in electric generation and purchased power - regulated Fuel used in electric generation and purchased power - non-regulated Cost of natural gas and coal sold Operation, maintenance and other Depreciation and amortization Property and other taxes Goodwill and other impairment charges Total...

  • Page 91
    PART II DUKE ENERGY CORPORATION Consolidated Statements of Comprehensive Income Years Ended December 31, (in millions) Net Income Other Comprehensive (Loss) Income, Net of Tax Foreign currency translation adjustments Pension and OPEB adjustments(a) Net unrealized loss on cash ï¬,ow hedges(b) ...

  • Page 92
    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 $34 at December 31, 2012 and $35 at December 31, 2011) Restricted receivables of ...

  • Page 93
    ... II DUKE ENERGY CORPORATION Consolidated Balance Sheets - (Continued) December 31, (in millions) LIABILITIES AND EQUITY Current Liabilities Accounts payable Notes payable and commercial paper Non-recourse notes payable of variable interest entities Taxes accrued Interest accrued Current maturities...

  • Page 94
    ... Increase (decrease) in Accounts payable Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Investment expenditures Acquisitions Cash acquired from the merger with Progress Energy...

  • Page 95
    PART II DUKE ENERGY CORPORATION Consolidated Statements of Cash Flows - (Continued) Years Ended December 31, (in millions) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: Issuance of long-term debt Issuance of common stock related to employee benefit plans Payments for the redemption of ...

  • Page 96
    ...Consolidated Statements of Equity Duke Energy Corporation Shareholders Accumulated Other Comprehensive Income (Loss) Net Gains Pension and Common Additional Foreign (Losses) on OPEB Related Common Stock Common Paid-in Retained Currency Cash Flow Adjustments Stockholders' Noncontrolling Shares Stock...

  • Page 97
    ..., 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, 2012 and 2011, and the related consolidated statements of operations and comprehensive income, member's equity, and cash...

  • Page 98
    PART II DUKE ENERGY CAROLINAS, LLC 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 ...

  • Page 99
    PART II DUKE ENERGY CAROLINAS, LLC Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $3 at December 31, 2012 and December 31, 2011) Restricted receivables of variable interest entities (net ...

  • Page 100
    ...DUKE ENERGY CAROLINAS, LLC Consolidated Statements of Cash Flows Years Ended December 31, (in millions) CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization (including amortization of nuclear...

  • Page 101
    PART II DUKE ENERGY CAROLINAS, LLC Consolidated Statements of Member's Equity Accumulated Other Comprehensive Income (Loss) Net Gains (Losses) on Cash Flow Hedges $ (24) - 4 - - $ (20) - 3 - $ (17) - 2 - $ (15) (in millions) Balance at December 31, 2009 Net income Other comprehensive income ...

  • Page 102
    ..., North Carolina We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related consolidated statements of operations and comprehensive income, common stockholders' equity, and cash ï¬,ows...

  • Page 103
    PART II PROGRESS ENERGY, 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 104
    PART II PROGRESS ENERGY, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $16 at December 31, 2012 and $27 at December 31, 2011) Receivables from affiliated companies Inventory Other ...

  • Page 105
    PART 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 and commercial paper Notes payable to affiliated companies Taxes accrued Interest ...

  • Page 106
    ...losses) on sales of other assets and other, net Impairment charges Deferred income taxes Amount to be refunded to customers Accrued pension and other post-retirement benefit costs Contributions to qualified pension plans (Increase) decrease in Net realized and unrealized mark-to-market and hedging...

  • Page 107
    PART II PROGRESS ENERGY, INC. Consolidated Statements of Cash Flows - (Continued) Years Ended December 31, (in millions) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: Issuance of long-term debt Issuance of common stock Payments for the redemption of long-term debt Payments of short-term ...

  • Page 108
    ... interests Balance at December 31, 2011 Net income Other comprehensive income (loss) Common stock issuances, including dividend reinvestment and employee benefits Common stock dividends Distributions to noncontrolling interests Recapitalization for merger with Duke Energy Other (a) Total Equity...

  • Page 109
    ... II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of and Stockholders of Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Carolina Power & Light Company...

  • Page 110
    PART II CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, 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 ...

  • Page 111
    ...CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $9 at December 31, 2012 and 2011) Receivables from affiliated companies...

  • Page 112
    PART II CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. Consolidated Statements of Cash Flows Years Ended December 31, (in millions) CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, ...

  • Page 113
    ... stock dividends at stated rate Balance at December 31, 2011 Net income Other comprehensive income Stock-based compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 See Notes to Consolidated Financial Statements Total Equity...

  • Page 114
    ...Charlotte, North Carolina We have audited the accompanying balance sheets of Florida Power Corporation d/b/a Progress Energy Florida, Inc. (the "Company") as of December 31, 2012 and 2011, and the related statements of operations and comprehensive income, common stockholder's equity, and cash ï¬,ows...

  • Page 115
    PART II FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. 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 ...

  • Page 116
    ...FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $7 at December 31, 2012 and $18 at December 31, 2011) Receivables from affiliated companies...

  • Page 117
    ... POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. Statements of Cash Flows Years Ended December 31, (in millions) CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion Equity...

  • Page 118
    ... stock dividends at stated rate Tax dividend Balance at December 31, 2011 Net income Other comprehensive income Stock-based compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 See Notes to Consolidated Financial Statements...

  • Page 119
    ... 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, 2012 and 2011, and the related consolidated statements...

  • Page 120
    ... Expenses Fuel used in electric generation and purchased power - regulated Fuel used in electric generation and purchased power - non-regulated Cost of natural gas Operation, maintenance and other Depreciation and amortization Property and other taxes Goodwill and other impairment charges Total...

  • Page 121
    PART II DUKE ENERGY OHIO, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $2 at December 31, 2012 and $16 at December 31, 2011) Receivables from affiliated companies Notes receivable...

  • Page 122
    ... charges Deferred income taxes Accrued pension and 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...

  • Page 123
    ... 31, 2011 Net income Other comprehensive income Transfer of Vermillion Generating Station to Duke Energy Indiana Dividends to parent Balance at December 31, 2012 See Notes to Consolidated Financial Statements Common Stock $762 - $762 - - $762 - - - $762 Additional Paid-in Capital $ 5,570 - $ 5,570...

  • Page 124
    ... 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, 2012 and 2011, and the related consolidated statements...

  • Page 125
    ...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 126
    PART II DUKE ENERGY INDIANA, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $1 at December 31, 2012 and December 31, 2011) Receivables from affiliated companies Inventory Other ...

  • Page 127
    ... taxes and investment tax credit amortization Contributions to qualified pension plans Accrued pension and other post-retirement benefit costs (Increase) decrease in Receivables Receivables from affiliated companies Inventory Other current assets Increase (decrease) in Accounts payable Accounts...

  • Page 128
    ...December 31, 2011 Net loss Other comprehensive loss Transfer of Vermillion Generating Station from Duke Energy Ohio Balance at December 31, 2012 See Notes to Consolidated Financial Statements Common Stock $ 1 - - $ 1 - $ 1 - - $ 1 Additional Paid-in Capital $1,008 - 350 $1,358 - $1,358 - 26 $1,384...

  • Page 129
    ... in Note 3, Duke Energy Carolinas' operations include one reportable business segment, Franchised Electric. Progress Energy, a wholly owned subsidiary of Duke Energy, is a holding company headquartered in Raleigh, North Carolina, subject to regulation by the FERC. Progress Energy conducts operations...

  • Page 130
    ... of its new Electric Security Plan (ESP), Duke Energy Ohio ceased applying regulatory accounting treatment to generation operations within its Commercial Power segment. For further information, see Note 4. Energy Purchases, Fuel Costs and Fuel Cost Deferrals. The Duke Energy Registrants utilize cost...

  • Page 131
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 132
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 133
    ... Consolidated Balance Sheets. Nuclear fuel in the front-end fuel processing phase is considered work in progress and not amortized until placed in service. Amortization of nuclear fuel is included within Fuel used in electric generation and purchased power-regulated in the Consolidated Statements of...

  • Page 134
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 135
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Pension and Other Post-Retirement Benefit Plans. Duke Energy...

  • Page 136
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 137
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 138
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 139
    ... Progress Energy, a North Carolina corporation engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. As a result of the merger, Merger Sub was merged into Progress Energy and Progress...

  • Page 140
    ... ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) in the service areas...

  • Page 141
    ...information related to Crystal River Unit 3. As such, the Progress Energy assets acquired and liabilities assumed are presented as if the retirement of Crystal River Unit 3 occurred on the acquisition date. The fair value of the outstanding stock compensation awards is included in the purchase price...

  • Page 142
    ... • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The excess of the purchase price over...

  • Page 143
    .... Duke Energy Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy. USFE&G generates, transmits, distributes and sells electricity in North Carolina, South Carolina, west central Florida, central, north...

  • Page 144
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Generation Services, Inc. and its affiliates (DEGS), Commercial...

  • Page 145
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 146
    ...LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Business...

  • Page 147
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 148
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 149
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 150
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 151
    ...programs, various state Energy Efficiency programs, SmartGrid, and other peak time energy management programs. The recovery period varies for these costs, with some currently unknown. Duke Energy Carolinas and Progress Energy Florida are required to pay interest on the outstanding liability balance...

  • Page 152
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 153
    ... states. Nonregulated sellers of gas and electric generation are also allowed to operate in Ohio once certified by the PUCO. The FERC approves rates for electric sales to wholesale customers served under cost-based rates, as well as sales of transmission service. Duke Energy Carolinas 2013 North...

  • Page 154
    ... average increase in rates. This second year increase is a result of Progress Energy Carolinas agreeing to delay collection of financing costs on the construction work in progress for the Sutton combined cycle natural gas plant for one year. The Settlement Notice is based upon a return on equity of...

  • Page 155
    ... used in electric generation and purchased power in Progress Energy Florida's and Progress Energy's Statements of Operations and Comprehensive Income for the year ended December 31, 2012. Progress Energy Florida will refund this replacement power liability on a pro rata basis based on the in-service...

  • Page 156
    ... of joint owners related to all Crystal River Unit 3 matters. Progress Energy Florida cannot predict the outcome of matters described above. Customer Rate Matters. In conjunction with the 2012 FPSC Settlement Agreement, Progress Energy Florida will maintain base rates at the current levels through...

  • Page 157
    ... Ohio only be allowed to recover costs related to MGP sites which are currently used and useful in the provision of natural gas distribution service. Duke Energy Ohio filed its objection to the staff report on February 4, 2013. Duke Energy Ohio expects revised rates, if approved, to go into effect...

  • Page 158
    ... Municipal Power, Inc. (AMP) under which the return on equity will be set at 11.38% legacy MTEP costs will be recovered in rates, and AMP will receive a credit equal to 75% of its share of the legacy MTEP costs. The settlement agreement was filed with the FERC on February 4, 2012 and requires FERC...

  • Page 159
    ...LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) new cost...

  • Page 160
    ...not to request a retail electric base rate increase prior to March 2013, with rates in effect no earlier than April 1, 2014. As a result of the agreement, Duke Energy Indiana recorded pre-tax impairment and other charges of approximately $420 million in the first quarter of 2012. Approximately $400...

  • Page 161
    ... at least 1,000 employees in Raleigh, North Carolina for at least five years from date of the settlement agreement; (ii) Duke Energy will guarantee an additional $25 million in fuel and fuel-related cost savings for Duke Energy's North Carolina retail customers; (iii) Duke Energy will contribute an...

  • Page 162
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 163
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 164
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 165
    ...CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The EPA plans to finalize the 316(b) rule...

  • Page 166
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 167
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 168
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 169
    ...Cincinnati Gas & Electric Company), conspired to provide inequitable and unfair price advantages for certain large business consumers by entering into non-public option agreements with such consumers in exchange for their withdrawal of challenges to Duke Energy Ohio's pending Rate Stabilization Plan...

  • Page 170
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Years...

  • Page 171
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 172
    ...Energy Registrants' electric and gas plant in service is mortgaged under mortgage bond indentures. (b) At December 31, 2012, capital leases of Duke Energy included $158 million and $907 million of capital lease purchase accounting adjustments for Progress Energy Carolinas and Progress Energy Florida...

  • Page 173
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 174
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 175
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 176
    ... money pool balances are eliminated within Duke Energy's Consolidated Balance Sheets. Prior to the merger with Duke Energy, Progress Energy's subsidiaries participated in internal money pools, administered by Progress Energy Service Company, LLC, to more effectively utilize cash resources and reduce...

  • Page 177
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 178
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 179
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 180
    .... (b) In February 2013, Duke Energy made the decision to retire Crystal River Unit 3. As of December 31, 2012, all costs associated with Crystal River Unit 3 are included within Regulatory assets on the Consolidated Balance Sheets of Duke Energy, Progress Energy and Progress Energy Florida. See Note...

  • Page 181
    ... years ended December 31, 2012 and 2011 relates to Duke Energy's regulated electric operations and has been deferred in accordance with regulatory accounting treatment, as discussed above. (c) For Progress Energy and Progress Energy Florida, the amounts relate to the retirement of Crystal River Unit...

  • Page 182
    ... applicable to nuclear decommissioning and changes in federal, state or local regulations. This estimate includes Progress Energy Carolinas ownership interest in jointly owned units. In addition to the decommissioning cost studies, a new funding study was completed and indicates the current annual...

  • Page 183
    ...Robinson Progress Energy Florida Crystal River Unit 3 Year of Expiration 2043 2043 2041 2043 2033 2033 2034 2036 2034 2046 2030 2016 10. PROPERTY, PLANT AND EQUIPMENT December 31, 2012 (in millions) Land Plant - Regulated Electric generation, distribution and transmission Natural gas transmission...

  • Page 184
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2011 (in millions) Land Plant - Regulated Electric...

  • Page 185
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 186
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 187
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 188
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 189
    ... with the applicable state and federal commission regulations. Refer to the Consolidated Balance Sheets of Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida, Duke Energy Ohio and Duke Energy Indiana for balances due to or due from related parties. Amounts...

  • Page 190
    ...from the purchase of power under the JDA are recorded in Fuel used in electric generation and purchased power - regulated on the Consolidated Statements of Operations and Comprehensive Income. (d) Progress Energy charges a proportionate share of corporate governance and other costs to unconsolidated...

  • Page 191
    ... cost of the coal and natural gas used to generate electricity, the prices of electricity in wholesale markets, the cost of capacity and electricity purchased for resale in wholesale markets and the cost of emission allowances primarily at the Duke Energy Registrants' coal fired power plants. Risks...

  • Page 192
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 193
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 194
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 195
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 196
    ... Balance Sheets as regulatory assets or liabilities. Years Ended December 31, (in millions) Location of Pre-tax Gains and (Losses) Recognized in Earnings Commodity contracts Revenue, regulated electric Fuel used in electric generation and purchased power - regulated(a) Interest rate contracts...

  • Page 197
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 198
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 199
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Years Ended December 31, (in millions) Location of Pre-tax...

  • Page 200
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 201
    ... CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Foreign equity prices are translated from their trading currency using the currency exchange...

  • Page 202
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 203
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 204
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 205
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 206
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 207
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 208
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 209
    ..., natural gas, and other Fuel used in electric generation and purchased power nonregulated Total pre-tax losses included in other comprehensive income: Losses on commodity cash ï¬,ow hedges Net purchases, sales, issuances and settlements: Total gains included on the Consolidated Balance Sheet as...

  • Page 210
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 211
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 212
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 213
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 214
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 215
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 216
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 217
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 218
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 219
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 220
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 221
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 222
    ... and/or related services as part of Duke Energy Carolinas' franchised electric business, to DERF. In order to fund its purchases of accounts receivable, DERF has a $300 million secured credit facility with a commercial paper conduit, which expires in August 2014. Duke Energy Carolinas provides the...

  • Page 223
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 224
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 225
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 226
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 227
    ... at other locations. Approximately 600 employees work at Crystal River Nuclear Plant Unit 3. Duke Energy is currently determining which employees will be impacted by the retirement and therefore offered severance benefits. Future severance expense Duke Energy expects to incur at Progress 2012 $201...

  • Page 228
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 229
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 230
    ... balance formula, a (in millions) Anticipated Contributions: 2013 Contributions Made: 2012 2011 2010 Duke Energy $ 350 $304 200 400 plan participant accumulates a retirement benefit consisting of pay credits that are based upon a percentage (which varies with age and years of service) of current...

  • Page 231
    ... Interest cost on project benefit obligation Expected return on plan assets Amortization of prior service cost (credit) Amortization of actuarial loss Other Net periodic pension costs(a)(b) Duke Energy $ 122 307 (472) 10 144 6 $ 117 Duke Energy Carolinas $ 35 90 (146) 1 45 2 $ 27 Progress Energy...

  • Page 232
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 233
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 234
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in the Consolidated Balance Sheets: Quali...

  • Page 235
    ... Benefits Accounting Duke Energy(a) December 31, (percentages) Benefit Obligations Discount rate Salary increase (graded by age) Net Periodic Benefit Cost Discount rate Salary increase Expected long-term rate of return on plan assets (a) For Progress Energy plans, the assumptions used in 2012 to...

  • Page 236
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The discount rate used to determine the current year pension...

  • Page 237
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 238
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 239
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in the Consolidated Balance Sheets: Non...

  • Page 240
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 241
    ...LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Expected...

  • Page 242
    ... PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2010 (in millions) Service cost Interest cost on accumulated post-retirement benefit obligation Expected return on plan...

  • Page 243
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 244
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 245
    ...Consolidated Balance Sheets as of December 31, 2012 and 2011, respectively. Assumptions Used for Other Post-Retirement Benefits Accounting Duke Energy(a) December 31, (percentages) Benefit Obligations Discount rate Net Periodic Benefit Cost Discount rate Expected long-term rate of return on plan...

  • Page 246
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The discount rate used to determine the current year other...

  • Page 247
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Plan...

  • Page 248
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 249
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 250
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 251
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 252
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 253
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 254
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 255
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 256
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Classification of Deferred Tax Assets (Liabilities) in the Consolidated Balance Sheets...

  • Page 257
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year...

  • Page 258
    ... tax examinations by tax authorities for years before 2004. 25. CONDENSED CONSOLIDATING STATEMENTS Presented below are the Progress Energy Condensed Consolidating Statements of Operations and Comprehensive Income, Balance Sheets and Statements of Cash Flows as required by Rule 3-10 of Regulation...

  • Page 259
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 260
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 261
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 262
    ... • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Balance Sheet...

  • Page 263
    ... • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Balance Sheet...

  • Page 264
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Statement of Cash Flows Year Ended...

  • Page 265
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Statement of Cash Flows Year Ended...

  • Page 266
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Statement of Cash Flows Year Ended...

  • Page 267
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 268
    ... fiscal years. All amounts discussed below are pre-tax unless otherwise noted. (in millions) 2012 Costs to achieve the merger (see Note 2) Florida replacement power refund (see Note 4) Charges related to decision to retire Crystal River Unit 3 (see Note 4) Total 2011 Florida customer refund...

  • Page 269
    ... fiscal years. All amounts discussed below are pre-tax unless otherwise noted. (in millions) 2012 Costs to achieve the merger (see Note 2) Florida replacement power refund (see Note 4) Charges related to decision to retire Crystal River Unit 3 (see Note 4) Total 2011 Florida customer refund...

  • Page 270
    PART II DUKE ENERGY CORPORATION Schedule I - Condensed Parent Company Financial Statements Years Ended December 31, (in millions, except per-share amounts) Operating Revenues Operating Expenses Operating Loss Equity in Earnings of Subsidiaries Other Income and Expenses, net Interest Expense Income...

  • Page 271
    ... II DUKE ENERGY CORPORATION Schedule I - Condensed Parent Company Financial Statements - (Continued) December 31, (in millions, except per-share amounts) ASSETS Current Assets Cash and cash equivalents Receivables Receivables from affiliated companies Notes receivable from affiliated companies...

  • Page 272
    PART II DUKE ENERGY CORPORATION Schedule I - Condensed Parent Company Financial Statements - (Continued) Years Ended December 31, (in millions) Net cash (used in) provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of available-for-sale securities Proceeds from sales ...

  • Page 273
    ... to Financial Statements 1. BASIS OF PRESENTATION Duke Energy Corporation (Duke Energy) is a holding company that conducts substantially all of its business operations through its subsidiaries. As specified in the merger conditions issued by various state commissions in connection with Duke Energy...

  • Page 274
    PART II DUKE ENERGY CORPORATION Schedule I - Condensed Parent Company Notes to Financial Statements - (Continued) In November 2011, Duke Energy entered into a $6 billion, five-year master credit facility, expiring in November 2016, with $4 billion available at closing and the remaining $2 billion...

  • Page 275
    ..., management concluded that its internal controls over financial reporting were effective as of December 31, 2012. Deloitte & Touche LLP, Duke Energy's independent registered public accounting firm, has issued separate attestation reports on the effectiveness of Duke Energy and Progress Energy...

  • Page 276
    ...OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Duke Energy will provide information that is responsive to this Item 12 in its definitive proxy statement or in an amendment to this Annual Report not later than 120 days after the end of the fiscal year covered by this Annual Report, in either...

  • Page 277
    ... Exchange Commission's or other applicable regulatory bodies' rules of regulations must be specifically pre-approved by the Duke Energy Audit Committee. All services performed in 2012 and 2011 by the independent public accountant were approved by the Duke Energy Audit Committee and Legacy Progress...

  • Page 278
    ... Power Corporation d/b/a Progress Energy Florida, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2012, 2011 and 2010 Consolidated Balance Sheets as of December 31, 2012 and 2011 Consolidated Statements of Cash...

  • Page 279
    ... Financial Statements or Notes. Duke Energy Indiana, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2012, 2011 and 2010 Consolidated Balance Sheets as of December 31, 2012 and 2011 Consolidated Statements of Cash...

  • Page 280
    ... duly authorized. Date: February 28, 2013 DUKE ENERGY CORPORATION (Registrants) By: /s/ JAMES E. ROGERS James E. Rogers Chairman, President and 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...

  • Page 281
    ... 28, 2013 DUKE ENERGY CAROLINAS, LLC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers 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 the capacities and on...

  • Page 282
    ... 28, 2013 PROGRESS ENERGY, INC. (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers 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 the capacities and on...

  • Page 283
    ... 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 28, 2013 CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. (Registrant) By: /s/ JAMES E. ROGERS...

  • Page 284
    ... 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 28, 2013 FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. (Registrant) By: /s/ JAMES E. ROGERS James...

  • Page 285
    ... 28, 2013 DUKE ENERGY OHIO, INC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers 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 the capacities and on...

  • Page 286
    ... 28, 2013 DUKE ENERGY INDIANA, INC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers 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 the capacities and on...

  • Page 287
    ... report pursuant to Item 15 (b) of Form 10-K (+). Duke Energy Carolinas Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 2.1 Agreement and Plan of Merger by and among Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy...

  • Page 288
    ... to the Florida Power Corporation Current Report on Form 8-K, dated September 20, 2010, File No. 1-3274). Original Indenture (First Mortgage Bonds) between Duke Energy Ohio, Inc. and The Bank of New York (as Trustee) dated as of August 1, 1936 (filed with Registration Statement of Duke Energy Ohio...

  • Page 289
    ... of New York Trust Company, N.A., as Trustee (filed on Form 8-K of Duke Energy Corporation dated June 16, 2008, File No. 001-32853, as Exhibit 4.1). Duke Energy Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana...

  • Page 290
    ... (filed on Form 8-K of Duke Energy Corporation dated August 16, 2012, File No. 001-32853, as Exhibit 4.1). First and Refunding Mortgage from Duke Energy Carolinas, LLC to The Bank of New York Mellon Trust Company, N.A., successor trustee to Guaranty Trust Company of New York, dated as of December...

  • Page 291
    ... the Form 10-Q of Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric Company) for the quarter ended June 30, 2003, File No. 1-1232). Unsecured Promissory Note dated October 14, 1998, between PSI and the Rural Utilities Service (filed with Form 10-K of Duke Energy Indiana, Inc. (formerly...

  • Page 292
    ... Corporation and Guaranty Trust Company of New York and The Florida National Bank of Jacksonville, as Trustees (filed as Exhibit B-18 to Florida Power's Registration Statement on Form A-2) (No. 2-5293) filed with the SEC on January 24, 1944). Duke Energy Duke Energy Carolinas Progress Energy...

  • Page 293
    ..., between Florida Power Corporation and J.P. Morgan Trust Company, National Association, as Trustee with respect to Senior Notes, (filed as Exhibit 4(a) to Current Report on Form 8-K dated December 13, 2005, File No. 1-3274). Indenture, dated as of February 15, 2001, between Progress Energy, Inc...

  • Page 294
    ... to Schedule 14A of Duke Energy Carolinas, LLC, March 28, 2003, File No. 1-4928). Agreements with Piedmont Electric Membership Corporation, Rutherford Electric Membership Corporation and Blue Ridge Electric Membership Corporation to provide wholesale electricity and related power scheduling services...

  • Page 295
    ...led with Form 8-K of Duke Energy Corporation, File No. 1-32853, April 4, 2006, as Exhibit 10.1). Amended and Restated Engineering and Construction Agreement, dated as of December 21, 2009, by and between Duke Energy Carolinas, LLC and Shaw North Carolina, Inc. Asset Purchase Agreement by and among...

  • Page 296
    ...Engineering and Construction Agreement, dated as of December 21, 2009, by and between Duke Energy Carolinas, LLC and Shaw North Carolina, Inc. Duke Energy X Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana 10.22...

  • Page 297
    ...Year Credit Agreement, dated as of November 18, 2011, among the Corporation, Duke Energy Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, Inc., Duke Energy Kentucky, Inc., Carolina Power and Light Company d/b/a Progress Energy Carolinas, Inc. and Florida Power Corporation, d/b/a Progress...

  • Page 298
    ... Plan, dated January 1, 2008 (incorporated by reference to Duke Energy Corporation's Form 10-Q for the quarter ended September 30, 2012). Settlement Agreement dated November 29, 2012 by and among Duke Energy Corporation, the North Carolina Utilities Commission Staff and the North Carolina Public...

  • Page 299
    ...Progress Energy Florida Duke Energy Ohio Duke Energy Indiana *10.65.1** First Amendment to the Duke Energy Corporation Executive Cash Balance Plan dated as of January 1, 2013. 10.66 Purchase, Construction and Ownership Agreement dated July 30, 1981 between Carolina Power & Light Company and North...

  • Page 300
    ... Sheet for William D. Johnson in connection with the Agreement and Plan of Merger, dated as of January 8, 2011, by and among Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy, Inc. (Exhibit C to the Agreement and Plan of Merger filed as Exhibit 2.1 to the Current Report...

  • Page 301
    .... Amended Management Incentive Compensation Plan effective as of January 1, 2013. 10.97 Precedent and Related Agreements among 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...

  • Page 302
    ... Earnings to Fixed Charges - PROGRESS ENERGY FLORIDA, INC Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY OHIO Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY INDIANA List of Subsidiaries Consent of Independent Registered Public Accounting Firm. Consent of Independent...

  • Page 303
    ... Linkbase Document XBRL Taxonomy Label Linkbase Document XBRL Taxonomy Presentation Linkbase Document XBRL Taxonomy Definition Linkbase Document Duke Energy Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida X Duke Energy Ohio Duke Energy Indiana...

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  • Page 307
    ...Listing Duke Energy's common stock is listed on the New York Stock Exchange. The company's common stock trading symbol is DUK. Website Addresses Corporate home page: duke-energy.com Investor Relations: duke-energy.com/investors Send Us Feedback We welcome your opinion on this annual report. Please...

  • Page 308
    www.duke-energy.com