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Connected
2014 ANNUAL REPORT AND FORM 10-K

Table of contents

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

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

  • Page 3
    ... the year, the men and women of our company worked hard to are to the customers we serve and to the addressed complex issues head-on. 2014 was a year of opportunity, challenge and such as the Dan River coal ash spill in early investors and neighbors who place their trust commitment to these...

  • Page 4
    ... and ratios) 2014 2013 2012 Operating Results Total operating revenues Net income Net income attributable to Duke Energy Corporation $23,925 $1,889 $1,883 $22,756 $2,676 $2,665 $17,912 $1,782 $1,768 Ratio of Earnings to Fixed Charges Common Stock Data Shares of common stock outstanding Year-end...

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

  • Page 6
    ... Energy Regulatory Commission's and expect to close this transaction by the end of the second quarter of more than 2 million customers in our regulated utilities in Indiana, Ohio and Kentucky. Duke Energy International represents about 10 percent of our overall business mix. From 2009 through 2014...

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

  • Page 8
    ... 2014, punishing arctic cold fronts pushed customer demand for power to historic levels in our Indiana, Ohio, Kentucky and Carolinas service areas. Duke Energy Carolinas surpassed an all-time record that had stood since front shattered power demand records at both our utilities in the Carolinas...

  • Page 9
    ... agreement to purchase the N.C. Eastern Municipal Power Agency's minority nuclear and coal plants in the state. This to both parties. It will enable the power agency's cities in eastern North Carolina to reduce their debt burden and electric rates, while providing long-term cost 2014 ANNUAL REPORT...

  • Page 10
    ... target to close the transaction in late 2015 or early 2016. Also in 2014, we announced several gas-fueled power generation: almost $2 billion for three Florida generation projects and approximately $600 million for a new combined-cycle power plant in South Carolina. Renewable energy has also become...

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

  • Page 12
    ... engage our employees, and strengthen our leadership. across Duke Energy to discuss our priorities and plans. The CEO of an industrial customer spoke and praised his company's partnership with Duke Energy. He cited our electric rates that keep his business as he spoke of service interruptions that...

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

  • Page 14
    ... Retired Vice Chairman, Executive Vice President and Chief Financial Officer - Northeast Utilities Member, Finance and Risk Management Committee, Nuclear Oversight Committee Director of Duke Energy since 2009 James B. (Jim) Hyler Jr. Managing Director - Morehead Capital Management, LLC Chair...

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

  • Page 16

  • Page 17
    ... coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes...

  • Page 18
    ... diluted EPS for 2014, 2013 and 2012: Year Ended December 31, 2014 (in millions, except per share amounts) Adjusted segment income/Adjusted earnings International tax adjustment Costs to achieve Progress Energy merger Midwest generation operations Coal ash Plea Agreements reserve Asset impairment...

  • Page 19
    ... available at this time, as management is unable to project special items or mark-to-market adjustments for future periods. Total Available Liquidity Duke Energy's 2014 Annual Report includes a discussion of Duke Energy's total available liquidity. The available liquidity balance presented is a non...

  • Page 20
    (This page intentionally left blank.)

  • Page 21
    ...) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 56-2155481 Commission file number DUKE ENERGY CORPORATION 20-2777218 Commission file number Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number (a Florida...

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

  • Page 23
    ...River Unit 3 ...Crystal River Unit 3 Nuclear Station CSAPR...Cross-State Air Pollution Rule CWA ...Clean Water Act DB ...Defined Benefit (Pension Plan) D.C. Circuit Court...U.S. Court of Appeals for the District of Columbia DEBS...Duke Energy Business Services, LLC DECAM ...Duke Energy Commercial...

  • Page 24
    ... Construction agreement EPS ...Earnings Per Share ESP ...Electric Security Plan ETR ...Effective tax rate Exchange Act...Exchange Act of 1934 FASB ...Financial Accounting Standards Board FERC ...Federal Energy Regulatory Commission Fitch ...Fitch Ratings, Inc. Florida Global Case ...Litigation case...

  • Page 25
    ...related to the Dan River ash basin release and the management of coal ash basins in North Carolina Progress Energy...Progress Energy, Inc. PSA ...Purchase sale agreement PSCSC...Public Service Commission of South Carolina Public Staff ...North Carolina Utilities Commission Public Staff PUCO...Public...

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

  • Page 27
    ... costs. Regulated Utilities' largest stranded cost exposure is primarily related to Duke Energy Florida's purchased power commitments with QFs, under which it has future minimum expected capacity payments through 2025 of $2.2 billion. Duke Energy Florida was obligated to enter into these contracts...

  • Page 28
    ... related to potential plant retirements see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." Regulated Utilities relies principally on coal, natural gas and nuclear fuel for its generation of electricity. The following table lists sources of electricity and fuel costs...

  • Page 29
    ... Energy Progress, Duke Energy Florida and Duke Energy Indiana use derivative instruments to limit a portion of their exposure to price ï¬,uctuations for natural gas. Regulated Utilities has certain dual-fuel generating facilities that can operate with both natural gas and oil. The cost of Regulated...

  • Page 30
    ...the fair value of nuclear decommissioning trust fund (NDTF) balances and cost study results for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. NDTF (in millions) Duke Energy Carolinas Duke Energy Progress Duke Energy Florida December 31, 2014 $ 3,042 1,701 803 December 31, 2013...

  • Page 31
    ... 2011 South Carolina Rate Case Duke Energy Progress 2012 North Carolina Rate Case(a) Duke Energy Ohio 2012 Electric Rate Case Duke Energy Ohio 2012 Natural Gas Rate Case Duke Energy Florida 2013 FPSC Settlement Duke Energy Florida 2012 FPSC Settlement $ 234 118 309 93 178 49 - - 150 Return on Equity...

  • Page 32
    ...renewable energy goals. Energy and renewable energy credits generated by wind and solar projects are generally sold at contractual prices. Commercial Power also builds, develops and operates high voltage power and natural gas transmission projects. These projects are designed to increase reliability...

  • Page 33
    ...Executive Vice President and Chief Operating Officer, Regulated Utilities from December 2012 until August 2014. Prior to that, he held the position of Executive Vice President, Regulated Utilities upon the merger with Progress Energy in July 2012, and President, Commercial Businesses from July 2009...

  • Page 34
    ... Financial Statements, "Business Segments." DUKE ENERGY PROGRESS Duke Energy Progress is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Progress' service area...

  • Page 35
    ... and related activities, which may limit their ability to recover costs. The Duke Energy Registrants' regulated utility businesses are regulated on a cost-of-service/rate-of-return basis subject to statutes and regulatory commission rules and procedures of North Carolina, South Carolina, Florida...

  • Page 36
    ... and increase operating and maintenance costs. Duke Energy's investments and projects located outside of the U.S. expose it to risks related to the laws, taxes, economic and political conditions, and policies of foreign governments. These risks may delay or reduce Duke Energy's realization of value...

  • Page 37
    ...price of natural gas, coal, fuel oil, nuclear fuel, electricity and other energy-related commodities as a result of their ownership of energy-related assets. Fuel costs are recovered primarily through cost-recovery clauses, subject to the approval of state utility commissions. Additionally, the Duke...

  • Page 38
    ... some cases, may expose Duke Energy to other risks that could negatively affect its cash ï¬,ows and results of operations. The costs of retiring Duke Energy Florida's Crystal River Unit 3 could prove to be more extensive than is currently identified. Costs to retire and decommission the plant could...

  • Page 39
    ...Duke Energy Progress and Duke Energy Florida have significant obligations in this area and hold significant assets in these trusts. These assets are subject to market ï¬,uctuations and will yield uncertain returns, which may fall below projected rates of return. Although a number of factors impact...

  • Page 40
    ...the cost and obligations related to these plans. Without sustained growth in the pension investments over time to increase the value of plan assets and, depending upon the other factors impacting costs as listed above, Duke Energy could be required to fund its plans with significant amounts of cash...

  • Page 41
    ... related to Regulated Utilities' electric generation stations as of December 31, 2014. The MW displayed in the table below are based on summer capacity. Facility Duke Energy Carolinas Oconee Catawba(a) McGuire Belews Creek Marshall J.E. Rogers Bad Creek Lincoln Allen Rockingham Jocassee Dan River...

  • Page 42
    ... 87.06 percent of, and operates, Unit 4. (c) Jointly owned with North Carolina Eastern Municipal Power Agency (NCEMPA). Duke Energy Progress executed an agreement in September 2014 to purchase NCEMPA's ownership interest in these facilities. For additional information see Note 2 to the Consolidated...

  • Page 43
    ...,800 19,500 500 - - 300 7,200 6,200 Substantially all of Regulated Utilities' electric plant in service is mortgaged under indentures relating to Duke Energy Carolinas', Duke Energy Progress', Duke Energy Florida's, Duke Energy Ohio's and Duke Energy Indiana's various series of First Mortgage Bonds...

  • Page 44
    ... POWER The following table provides information related to Commercial Power's electric generation facilities as of December 31, 2014. The MW displayed in the table below are based on summer capacity. Facility Duke Energy Renewables Los Vientos Windpower Top of the World Notrees Campbell Hill North...

  • Page 45
    ... are in negotiations regarding civil enforcement against Duke Energy Carolinas related to the February 2, 2014, coal ash release from Duke Energy Carolinas' Dan River Steam Station. Monetary sanctions in excess of $100,000 appear likely. Brazilian Transmission Fee Assessments On July 16, 2008...

  • Page 46
    ... 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 24, 2015, there were approximately 172,448 common stockholders of record. Common Stock Data by Quarter 2014 Stock Price Range(a) Dividends...

  • Page 47
    ... on December 31, 2009, in Duke Energy common stock, in the S&P 500 Stock Index and in the Philadelphia Utility Index and that all dividends are reinvested. $250 $200 $150 $100 $50 $0 2009 2010 2011 2012 2013 2014 Duke Energy Corporation S&P 500 Index Philadelphia Utility Index NYSE CEO...

  • Page 48
    ..."Income Taxes"); (iii) 2014 increase in the litigation reserve related to the criminal investigation of the Dan River coal ash spill (see Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies"); (iv) 2013 charges related to Crystal River Unit 3 and nuclear development costs...

  • Page 49
    ... of solar projects in eastern North Carolinas for a total amount of approximately $1.2 billion. • Duke Energy Carolinas proposed construction of a combined-cycle natural gas plant at the William States Lee generation facility at a cost of approximately $600 million. • Commercial Power proposed...

  • Page 50
    ... coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes...

  • Page 51
    ...income/Adjusted earnings Crystal River Unit 3 charges Costs to achieve Progress Energy merger Midwest generation operations Nuclear development charges Litigation reserve Asset sales Discontinued operations Segment income (loss)/Net Income Attributable to Duke Energy Corporation Other $(119) - (184...

  • Page 52
    ... asset base and lower reductions to cost of removal reserves; • Higher operations and maintenance expense due to higher storm costs, the timing of fossil plant outages and the impact of nuclear outage cost levelization; • Lower post in-service debt returns due to projects added to customer rates...

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

  • Page 54
    ... II customers and job training in accordance with 2013 North Carolina Utilities Commission (NCUC) and Public Service Commission of South Carolina (PSCSC) rate case orders. Partially offset by: • A $346 million decrease due to the 2013 impairment and other charges primarily related to Crystal River...

  • Page 55
    .... Duke Energy is a party to multiple lawsuits filed in regards to the Dan River coal ash release and operations at other North Carolina facilities with ash basins. The outcome of these lawsuits could have an adverse impact to Regulated Utilities' financial position, results of operations and cash...

  • Page 56
    ...6,755 2,031 2012 307 419 2 (110) 33 63 (140) (82) 1 (59) 2,096 3,452 5,548 2,222 Year Ended December 31, 2014 as Compared to 2013 Commercial Power's results were impacted by higher production tax credits generation, higher production and lower operating costs by the renewables business and a prior...

  • Page 57
    ... portfolio. The effective tax rate for the years ended December 31, 2014 and 2013 was 75.5 percent and 62.8 percent, respectively. Year Ended December 31, 2013 as Compared to 2012 Commercial Power's results were negatively impacted by the sale of noncore business operations and lower income from...

  • Page 58
    ... tax rate for the years ended December 31, 2014 and 2013 was 41.9 percent and 58.6 percent, respectively. Year Ended December 31, 2013 as Compared to 2012 Other's results were positively impacted by lower charges related to the Progress Energy merger, the sale of DukeNet, and increased current...

  • Page 59
    ... 31, 2014 as Compared to 2013 Operating Revenues. The variance was driven primarily by: • A $180 million increase in retail pricing and updated rate riders, which primarily reï¬,ects the impact of the 2013 North Carolina and South Carolina retail rate cases; • A $151 million increase in fuel...

  • Page 60
    ... the 2013 Settlement for Duke Energy Florida. Fuel revenues represent sales to retail and wholesale customers; • A $149 million increase in retail pricing, which primarily reï¬,ects the impact of the 2013 North Carolina retail rate case in North Carolina and the 2014 base rate increase in Florida...

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

  • Page 62
    ... adverse impact to Duke Energy Progress' financial position, results of operations and cash ï¬,ows. See Notes 5 and 9 to the Consolidated Financial Statements, "Commitments and Contingencies" and "Asset Retirement Obligations," respectively, for additional information. reversal of a portion of cost...

  • Page 63
    ... revenues primarily driven by increased capacity rates partially offset by the impact of contracts that expired in 2013. Operating Expenses. The variance was driven primarily by: • A $231 million increase in fuel used in electric generation and purchased power due to the application of the NEIL...

  • Page 64
    ... to Crystal River Unit 3 and Levy; and • A $48 million decrease in operations and maintenance costs primarily due to prior year Crystal River Unit 3 related settlement matters and lower costs associated with Progress Energy's merger with Duke Energy. These costs were partially offset by increased...

  • Page 65
    ... by an Ohio gas excise tax settlement in 2014. Interest Expense. The increase was primarily due to higher regulated average debt balances in 2014 compared to 2013 and higher intercompany interest expense related to the funds loaned from Cinergy to Duke Energy Commercial Asset Management, Inc. (DECAM...

  • Page 66
    ... IGCC plant and the retired Crystal River Unit 3 Nuclear Station. When it becomes probable that regulated generation, transmission or distribution assets will be abandoned, the cost of the asset is removed from plant in service. The value that may be retained as an asset on the balance sheet for...

  • Page 67
    ... the cost of equity is the current risk-free rate on 20-year U.S. Treasury bonds. In the 2014 impairment tests, Duke Energy considered implied WACCs for certain peer companies in determining the appropriate WACC rates to use in its analysis. As each reporting unit has a different risk profile based...

  • Page 68
    ... returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants. VEBA I is passively managed. Duke Energy discounted its future U.S. pension and other post-retirement obligations using a rate of 4.1 percent as of December 31, 2014...

  • Page 69
    ... of cash held and expected to be generated by At December 31, 2014, Duke Energy had a Master Credit Facility with a capacity of $6 billion. In January 2015, Duke Energy amended the Master Credit Facility to increase its capacity to $7.5 billion through January 2020. The Duke Energy Registrants...

  • Page 70
    ... Balance Sheets. On February 20, 2015, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Business Services LLC (DEBS), a wholly owned subsidiary of Duke Energy, each entered into a Memorandum of Plea Agreement (Plea Agreements) in connection with the investigation initiated by the United...

  • Page 71
    ...Regulated Utilities' cash ï¬,ows from operations are primarily driven by sales of electricity and natural gas and costs of operations. Weather conditions, working capital and commodity price ï¬,uctuations, and unanticipated expenses, including unplanned plant outages and storms can affect the timing...

  • Page 72
    ...fied pension plans, favorable retail pricing and rate riders and favorable weather, partially offset by current year under collection of fuel and purchased power costs and timing of cash payments for operations and maintenance expenses. For the year ended December 31, 2013 compared to 2012, the...

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

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

  • Page 75
    ... 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. Duke Energy's exposure to these ï¬,uctuations is limited by the cost-based regulation of its operations in its Regulated Utilities segment...

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

  • Page 77
    .... The Duke Energy Registrants' principal customers for its electric and gas businesses are commodity clearinghouses, regional transmission organizations, industrial, commercial and residential end-users, marketers, distribution companies, municipalities, electric cooperatives and utilities located...

  • Page 78
    ... and recently enacted regulations that may impact the Duke Energy Registrants. The Duke Energy Registrants also expect to incur increased fuel, purchased power, operation and maintenance, and other costs for replacement generation for potential coal-fired power plant retirements as a result of...

  • Page 79
    ...some facilities. Estimated Cost and Impacts of Rulemakings The ultimate compliance requirements for currently proposed environmental regulations will not be known until all the rules have been finalized. The Duke Energy Registrants also expect to incur increased fuel, purchased power, operation and...

  • Page 80
    ... EPA announced that it would finalize the rule for new power plants in the summer of 2015. The Duke Energy Registrants do not expect a material impact on their future results of operations or cash ï¬,ows based on the EPA's proposal. The final rule, however, could be significantly different from...

  • Page 81
    ... NRC and a collaborative industry review, Duke Energy will be able to determine an implementation plan and associated costs. See Item 1A, "Risk Factors," for further discussion of applicable risk factors. New Accounting Standards See Note 1 to the Consolidated Financial Statements, "Summary of Signi...

  • Page 82
    ...Carolinas, LLC (Duke Energy Carolinas) Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations and Comprehensive Income ...Consolidated Balance Sheets...Consolidated Statements of Cash Flows ...Consolidated Statements of Changes in Member's Equity ...Progress...

  • Page 83
    ...REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Duke Energy Corporation Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related...

  • Page 84
    ... generation and purchased power - regulated Fuel used in electric generation and purchased power - nonregulated Cost of natural gas and other Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses Gains (Losses) on Sales...

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

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

  • Page 87
    ...for sale Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Equity Common stock, $0.001 par value, 2 billion shares authorized; 707 million and 706 million shares outstanding at December 31, 2014 and 2013, respectively...

  • Page 88
    ... 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 89
    ... for (received from) income taxes Merger with Progress Energy Fair value of assets acquired Fair value of liabilities assumed Issuance of common stock Significant non-cash transactions: Accrued capital expenditures See Notes to Consolidated Financial Statements 2014 2013 2012 $ 2,914 25 (3,037...

  • Page 90
    ... the Progress Energy Merger Common stock issuances, including dividend reinvestment and employee benefits Common stock dividends Contribution from noncontrolling interest in DS Cornerstone, LLC Deconsolidation of DS Cornerstone, LLC Changes in noncontrolling interest in subsidiaries(b) Balance at...

  • Page 91
    ... REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Carolinas, LLC Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related...

  • Page 92
    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 Property...

  • Page 93
    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, 2014 and December 31, 2013) Restricted receivables of variable interest entities (net ...

  • Page 94
    ... Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale securities...

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

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

  • Page 97
    ... December 31, (in millions) Operating Revenues Operating Expenses Fuel used in electric generation and purchased power Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses Gains (Losses) on Sales of Other Assets and Other...

  • Page 98
    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 $8 at December 31, 2014 and $14 at December 31, 2013) Restricted receivables of variable interest entities (net...

  • Page 99
    ...-retirement benefit costs Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common stock, $0.01 par value, 100 shares authorized and outstanding at December 31, 2014 and 2013 Additional...

  • Page 100
    ...of nuclear fuel) Equity component of AFUDC Severance expense FERC mitigation costs Community support and charitable contributions expense (Gains) losses on sales of other assets Impairment charges Deferred income taxes Amount to be refunded to customers Accrued pension and other post-retirement bene...

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

  • Page 102
    ...December 31, 2011 Net income(a) 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 Balance at December 31, 2012 Net income...

  • Page 103
    ... REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Progress, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Progress, Inc. and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related...

  • Page 104
    ... 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 Total operating expenses Gains on Sales of Other Assets and Other...

  • Page 105
    PART II DUKE ENERGY PROGRESS, INC. CONSOLIDATED 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, 2014 and $10 at December 31, 2013) Restricted receivables of variable interest entities...

  • Page 106
    ...) income taxes Significant non-cash transactions: Accrued capital expenditures Asset retirement obligation additions for spent nuclear fuel disposal related to the Progress Energy merger Capital expenditures financed through capital leases See Notes to Consolidated Financial Statements 2014 $ 467...

  • Page 107
    ... income Stock-based compensation expense Dividends to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 Net income Premium on the redemption of preferred stock Balance at December 31, 2013 Net income Dividends to parent Balance at December 31, 2014 See...

  • Page 108
    ...REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Florida, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Florida, Inc. and subsidiaries (the "Company") as of December 31, 2014 and 2013, and the related consolidated...

  • Page 109
    ... 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 Total operating expenses Gains on Sales of Other Assets and Other...

  • Page 110
    ... post-retirement benefit costs Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common Stock, no par; 60 million shares authorized; 100 shares outstanding at December 31, 2014 and 2013...

  • Page 111
    ...of amount capitalized Cash paid for (received from) income taxes Significant non-cash transactions: Accrued capital expenditures Asset retirement obligation additions for spent nuclear fuel disposal related to the Progress Energy merger See Notes to Consolidated Financial Statements 2014 $ 548 550...

  • Page 112
    ... comprehensive income Stock-based compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 Net income Other comprehensive loss Dividend to parent Premium on the redemption of preferred stock Balance at December 31, 2013 Net income...

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

  • Page 114
    ... Fuel used in electric generation and purchased power - regulated Fuel used in electric generation and purchased power - nonregulated Cost of natural gas Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses Gains on Sales...

  • Page 115
    ... sale Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common stock, $8.50 par value, 120,000,000 shares authorized; 89,663,086 shares outstanding at December 31, 2014 and 2013 Additional...

  • Page 116
    ... (loss) income to net cash provided by operating activities: Depreciation and amortization Equity component of AFUDC Gains on sales of other assets and other, net Impairment charges Deferred income taxes Accrued pension and other post-retirement benefit costs (Increase) decrease in Net realized and...

  • Page 117
    ...OPEB Related Adjustments Total Equity (in millions) Balance at December 31, 2011 Net income Other comprehensive income Transfer of Vermillion Generating Station to Duke Energy Indiana Dividends to parent Balance at December 31, 2012 Net income Other comprehensive income Balance at December 31, 2013...

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

  • Page 119
    ... 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 Total operating expenses Operating Income (Loss) Other Income and...

  • Page 120
    ... costs Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common Stock, no par; $0.01 stated value, 60,000,000 shares authorized; 53,913,701 shares outstanding at December 31, 2014 and 2013...

  • Page 121
    ... Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale securities...

  • Page 122
    ... loss Transfer of Vermillion Generating Station from Duke Energy Ohio Balance at December 31, 2012 Net income Other comprehensive loss Dividend to parent Balance at December 31, 2013 Net income Dividend to parent Balance at December 31, 2014 See Notes to Consolidated Financial Statements 102

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

  • Page 124
    ... information. For the years ended December 31, 2014, 2013 and 2012. Progress Energy's (Loss) Income From Discontinued Operations, net of tax was primarily due to tax impacts related to prior sales of diversified businesses. Amounts Attributable to Controlling Interests The following table presents...

  • Page 125
    ... those estimates. Regulatory Accounting The majority of the Duke Energy Registrants' operations are subject to price regulation for the sale of electricity and gas by state utility commissions or FERC. When prices are set on the basis of specific costs of the regulated operations and an effective...

  • Page 126
    ...by state utility commissions and/or the FERC when required. The composite weighted-average depreciation rates, excluding nuclear fuel, are included in the table that follows. Years Ended December 31, 2014 Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke...

  • Page 127
    ... required by the applicable regulatory body. See Note 10 for further information. Nuclear Fuel Nuclear fuel is classified as Property, Plant and Equipment on the Consolidated Balance Sheets, except for Duke Energy Florida. Duke Energy Florida has reclassified all Crystal River Unit 3 Nuclear...

  • Page 128
    ... Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Allowance for Doubtful Accounts - VIEs Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida 2014 $ 17 3 8 7 2 2 1 $ 51 6 8 5 3 2013 30 3 14 10 4 2 1 43 6 - - - 2012...

  • Page 129
    ... Consolidated Statements of Operations. See Note 22 for further information. Accounting for Renewable Energy Tax Credits and Cash Grants When Duke Energy receives ITC or cash grants on wind or solar facilities, it reduces the basis of the property recorded on the Consolidated Balance Sheets by the...

  • Page 130
    .... Merger with Progress Energy On July 2, 2012, Duke Energy completed its merger with 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...

  • Page 131
    .... See Note 4 for additional information related to Crystal River Unit 3. As such, Duke Energy presents assets acquired and liabilities assumed as if the retirement of Crystal River Unit 3 occurred on the acquisition date. The majority of Progress Energy's operations are subject to the ratesetting...

  • Page 132
    ... projects in rates and any future changes to estimated transmission project costs could impact the amount not expected to be recovered. In conjunction with the merger, in November 2011, Duke Energy and Progress Energy each offered a voluntary severance plan (VSP) to certain eligible employees...

  • Page 133
    ... updated, if necessary, based on the final sales price, after any adjustments at closing for working capital and capital expenditures. Commercial Power has a revolving credit agreement (RCA) to support the operations of the nonregulated Midwest generation business. Interest expense associated with...

  • Page 134
    ... Energy and Commercial Power. Regulated Utilities conducts operations primarily through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana, and the regulated transmission and distribution operations of Duke Energy Ohio. These electric and natural gas operations...

  • Page 135
    ... Florida's Crystal River Unit 3. See Note 4 for additional information. (e) Regulated Utilities recorded an impairment charge related to the letter Duke Energy Progress filed with the NRC requesting the NRC to suspend its review activities associated with the combined construction and operating...

  • Page 136
    ... of expenses of $60 million, net of tax, related to a prior year Voluntary Opportunity Plan in accordance with Duke Energy Carolinas' 2011 rate case. See Note 19 for additional information about these expenses. (b) Other includes costs to achieve the Progress Energy merger. See Notes 2 and 25 for...

  • Page 137
    ... to Consolidated Financial Statements - (Continued) DUKE ENERGY OHIO Duke Energy Ohio has two reportable operating segments, Regulated Utilities and Commercial Power. Regulated Utilities transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in...

  • Page 138
    ... contracts and transmission revenues. The respective Regulated Utility and Regulated Utilities operating segments own substantially all of Duke Energy Carolinas', Progress Energy's, Duke Energy Progress', Duke Energy Florida's and Duke Energy Indiana's assets at December 31, 2014, 2013 and 2012...

  • Page 139
    ... Asset retirement obligations Accrued pension and OPEB Retired generation facilities Debt fair value adjustment Net regulatory asset related to income taxes Hedge costs and other deferrals Demand side management (DSM)/Energy efficiency (EE) Grid Modernization Vacation accrual Deferred fuel Nuclear...

  • Page 140
    ...of Crystal River Unit 3 not included in rate base and a full return on a portion of the retired plant currently recovered in the nuclear cost recovery clause (NCRC). Once included in base rates the amount will be amortized over 20 years. Duke Energy Carolinas earns a return on the outstanding retail...

  • Page 141
    ... varies for these costs, with some currently unknown. Duke Energy Carolinas, Duke Energy Progress, and Duke Energy Florida are required to pay interest on the outstanding liability balance. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida collect a return on DSM/EE investments...

  • Page 142
    ... states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. Duke Energy Carolinas 2013 North Carolina Rate Case On September 24, 2013, the NCUC approved a settlement agreement related...

  • Page 143
    ... impact to the rates originally proposed by Duke Energy Progress, and Duke Energy Progress will receive cost recovery for early retired plants previously included in the depreciation rates. Duke Energy Florida FERC Transmission Return on Equity Complaint On February 12, 2012, Seminole Electric...

  • Page 144
    ... power uprate project to increase generating capacity will continue to be recovered through the Nuclear Cost Recovery Clause over an estimated seven-year period that began in 2013. Through December 31, 2014, Duke Energy Florida deferred $1,377 million for rate recovery related to Crystal River Unit...

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

  • Page 146
    ... number of years in service for the projects and the allocation to Duke Energy Ohio. Any liability related to the MISO MVP matter attributable to the Disposal Group will not be transferred to Dynegy upon closing of the disposal of the Midwest generation business. FERC Transmission Return on Equity...

  • Page 147
    ... Rider proceedings. FERC Transmission Return on Equity Complaint On November 12, 2013, customer groups filed with FERC a complaint against MISO and its transmission-owning members, including Duke Energy Indiana, alleging, among other things, that the current base rate of return on equity earned by...

  • Page 148
    ... power sale agreements during the completion of the transmission projects (Interim FERC Mitigation). The Long-Term FERC Mitigation was expected to increase power imported into the Duke Energy Carolinas and Duke Energy Progress service areas and enhance competitive power supply options in the service...

  • Page 149
    ... Progress Energy(b) 873 $ 114 Duke Energy Florida(b) 873 $ 114 Duke Energy Ohio(c) 163 $ 9 Included in Net property, plant and equipment as of December 31, 2014, on the Consolidated Balance Sheets. Includes Crystal River Units 1 and 2. Includes Miami Fort Unit 6 which is expected to be retired...

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

  • Page 151
    ... Management Commission to oversee handling of coal ash within the state; (ii) prohibits construction of new and expansion of existing ash impoundments and use of existing impoundments at retired facilities, effective October 1, 2014; (iii) requires closure of ash impoundments at Duke Energy Progress...

  • Page 152
    .... Johnson. On April 30, 2014, the North Carolina Business Court granted the Legacy Duke Energy Directors' motion to dismiss the lawsuit. It is not possible to estimate the maximum exposure of loss that may occur in connection with these lawsuits. Price Reporting Cases A total of five lawsuits were...

  • Page 153
    ...In the first quarter of 2013, environmental organizations sent notices of intent to sue Duke Energy Carolinas and Duke Energy Progress related to alleged groundwater violations and Clean Water Act (CWA) violations from coal ash basins at two of their coal-fired power plants in North Carolina. DENR...

  • Page 154
    ... the company responded to on March 13, 2014. Duke Energy and certain Duke Energy employees received subpoenas issued by the United States Attorney for the Eastern District of North Carolina in connection with a criminal investigation related to the release and all 14 of the North Carolina facilities...

  • Page 155
    ... Progress and Duke Energy Florida filed a new action for costs incurred from 2011 through 2013. Duke Energy Florida Westinghouse Contract Litigation On March 28, 2014 Duke Energy Florida filed a lawsuit against Westinghouse in the U.S. District Court for the Western District of North Carolina...

  • Page 156
    ...on their results of operations, cash ï¬,ows or financial position. Purchase Obligations Purchased Power Duke Energy Progress and Duke Energy Florida have ongoing purchased power contracts, including renewable energy contracts, with other utilities, wholesale marketers, co-generators, and qualified...

  • Page 157
    ... all electric utility property is mortgaged under mortgage bond indentures. (b) Duke Energy includes $129 million and $787 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that...

  • Page 158
    ...Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings. (in millions) Unsecured Debt Duke Energy (Parent) First Mortgage Bonds Duke Energy Ohio Duke Energy Progress Duke Energy Carolinas Duke Energy Florida Duke...

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

  • Page 160
    ...were used to redeem $402 million of tax-exempt bonds at Duke Energy Ohio, the repayment of outstanding commercial paper and for general corporate purposes. See Note 13 for additional information related to the redemption of Duke Energy Ohio's tax-exempt bonds. (b) The debt is ï¬,oating rate based on...

  • Page 161
    ... commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. The table below includes the current borrowing sublimits and available capacity under the Master Credit Facility. December 31, 2014 Duke...

  • Page 162
    ... 31, 2014 and 2013, respectively. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Investments and Other Assets on the Consolidated Balance Sheets. 7. GUARANTEES AND INDEMNIFICATIONS Duke Energy and Progress Energy have...

  • Page 163
    ... Consolidated Balance Sheets. As current estimates change, additional losses related to guarantees and indemnifications to third parties, which could be material, may be recorded by the Duke Energy Registrants in the future. December 31, 2014 2013 Duke Energy Progress Energy Duke Energy Florida $28...

  • Page 164
    ... Energy and Duke Energy Progress relate primarily to decommissioning nuclear power facilities, closure of ash basins in North Carolina and South Carolina, asbestos removal and closure of landfills at fossil generation facilities. Asset retirement obligations recognized at Duke Energy Florida relate...

  • Page 165
    ..., 2013, respectively. The NDTF balances for Progress Energy, Duke Energy Progress and Duke Energy Florida represent the fair value of assets legally restricted for purposes of settling asset retirement obligations associated with nuclear decommissioning. The NCUC, PSCSC and FPSC require updated cost...

  • Page 166
    ... information about nuclear decommissioning cost studies. Annual Funding Requirement $ 21 14 - Decommissioning Costs(a)(b)(c) $ 3,420 3,062 1,083 Year of Cost Study 2013 2014 2013 (in millions) Duke Energy Carolinas(d) Duke Energy Progress(e) Duke Energy Florida (a) (b) (c) (d) (e) Represents cost...

  • Page 167
    ... millions) Land Plant - Regulated Electric generation, distribution and transmission Natural gas transmission and distribution Other buildings and improvements Plant - Nonregulated Electric generation, distribution and transmission Other buildings and improvements Nuclear fuel Equipment Construction...

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

  • Page 169
    ..., 2014, net of accumulated impairment charges Regulated Utilities $1,136 (216) 920 1,136 (216) $ 920 $ Commercial Power $ 1,188 (1,188) - 1,188 (1,188) - $ Total $ 2,324 (1,404) 920 2,324 (1,404) 920 GOODWILL The following tables present goodwill by reportable operating segment for Duke Energy and...

  • Page 170
    ... Expense The following table presents amortization expense for gas, coal and power contracts, wind development rights and other intangible assets. December 31, (in millions) Duke Energy Duke Energy Ohio Duke Energy Indiana 2014 $6 2 1 2013 $13 8 1 2012 $ 14 12 1 patterns, sales or impairments of...

  • Page 171
    ... used in electric generation and purchased power on the Consolidated Statements of Operations and Comprehensive Income. (d) In 2013 and 2012, Progress Energy Service Company (PESC), a consolidated subsidiary of Progress Energy, charged a proportionate share of corporate governance and other costs...

  • Page 172
    ... purchases and sales of electricity and financial transmission rights. Volumes COMMODITY PRICE RISK The Duke Energy Registrants are exposed to the impact of changes in the future prices of electricity, coal and natural gas. Exposure to commodity price risk is inï¬,uenced by a number of factors...

  • Page 173
    ... for derivatives related to interest rate risk. December 31, 2014 Duke Energy $ 750 277 $1,027 Duke Energy Florida $ - 250 $ 250 Duke Energy Ohio $ $ - 27 27 December 31, 2013 Duke Energy $ 798 34 $ 832 Duke Energy Ohio $ - 27 $ 27 (in millions) Cash ï¬,ow hedges(a) Undesignated contracts Total...

  • Page 174
    ... in AOCI Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings Interest rate contracts Interest expense 2014 2013 2012 $ (23) 1 $ (22) DUKE ENERGY CAROLINAS The following table shows the fair value of derivatives and the line items in the Consolidated Balance Sheets where they...

  • Page 175
    ... Balance Sheet PROGRESS ENERGY The following table shows the fair value of derivatives and the line items in the Consolidated Balance Sheets where they are reported. Although derivatives subject to master netting arrangements are netted on the Consolidated Balance Sheets, the fair values presented...

  • Page 176
    ...(a) Interest rate contracts Regulatory assets 2014 $- - $- 2013 $ $ 1 - 1 2012 $ 1 (11) Years Ended December 31, (in millions) Location of Pretax Gains and (Losses) Recognized in Earnings Commodity contracts Operating revenues Fuel used in electric generation and purchased power Other income...

  • Page 177
    ...Balance Sheet Current(a) $- - $- NonCurrent(b) $- - $- December 31, 2013 Current(a) $ 3 (3) $- NonCurrent(b) $ 3 (3) $- (in millions) Location of Pretax Gains and (Losses) Recognized in Earnings Commodity contracts Operating revenues Fuel used in electric generation and purchased power Interest rate...

  • Page 178
    ... merger, Duke Energy Florida no longer designates interest rate derivatives for regulated operations as cash ï¬,ow hedges. As a result, the pretax losses on derivatives as of the date of the merger were reclassified from AOCI to Regulatory assets. The tables below show the balance sheet location...

  • Page 179
    ...to earnings as interest expense over the term of the related debt. Years Ended December 31, (in millions) 2014 2013 2012 The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position...

  • Page 180
    ... Balance Sheet (a) (b) (c) (d) December 31, 2013 CREDIT RISK Certain derivative contracts contain contingent credit features. These features may include (i) material adverse change clauses or payment acceleration clauses that could result in immediate payments or (ii) the posting of letters...

  • Page 181
    ... value of collateral already posted Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered December 31, 2013 Duke Energy $525 135 205 Progress Energy $168 10 158 Duke Energy Progress $ 60 - 60 Duke Energy Florida $108 10 98 Duke Energy...

  • Page 182
    ... Sheets based on maturity date and are available for current operations of Duke Energy's foreign business. The fair value of these investments classified as Short-term investments was $44 million as of December 31, 2013. Duke Energy classifies all other investments in debt and equity securities...

  • Page 183
    ... ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY The following table presents the estimated fair value...

  • Page 184
    ..., LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY CAROLINAS The following table presents the estimated fair value of...

  • Page 185
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) PROGRESS ENERGY The following table presents the estimated fair value...

  • Page 186
    ...CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY PROGRESS The following table presents the estimated fair value...

  • Page 187
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY FLORIDA The following table presents the estimated fair value...

  • Page 188
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY INDIANA The following table presents the estimated fair value...

  • Page 189
    ... NASDAQ and New York Stock Exchange (NYSE). Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reï¬,ected in the reported fair value...

  • Page 190
    ... basis on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral which is disclosed in Note 14. See Note 15 for additional information related to investments by major security type. December 31, 2014 (in millions) Nuclear decommissioning trust fund equity...

  • Page 191
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following tables ...

  • Page 192
    ... basis on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral, which is disclosed in Note 14. See Note 15 for additional information related to investments by major security type. December 31, 2014 (in millions) Nuclear decommissioning trust fund equity...

  • Page 193
    ... basis end on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral, which is disclosed in Note 14. See Note 15 for additional information related to investments by major security type. December 31, 2014 (in millions) Nuclear decommissioning trust fund equity...

  • Page 194
    ... period 2014 2013 $(38) - 10 - 34 (6) $- 2012 $(24) 1 (16) 4 - (3) $(38) DUKE ENERGY PROGRESS The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash...

  • Page 195
    ... period 2014 2013 $(38) - 10 - 34 (6) $- 2012 $(24) 1 (16) 4 - (3) $(38) DUKE ENERGY FLORIDA The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash...

  • Page 196
    ...value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral, which is disclosed in Note 14. See Note 15 for additional information related to investments by major security type. December 31, 2014 (in millions) Available-for-sale equity...

  • Page 197
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2013 (in millions) Available-for-sale equity securities...

  • Page 198
    ... could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements. December 31, 2014 (in millions) Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Book Value $ 40,020 $ 8,391 $ 14,754...

  • Page 199
    ... Consolidated Financial Statements - (Continued) CONSOLIDATED VIEs The following tables summarize the impact of VIEs consolidated by Duke Energy and the Subsidiary Registrants on the Consolidated Balance Sheets. December 31, 2014 Duke Energy Duke Energy Carolinas (in millions) ASSETS Current Assets...

  • Page 200
    ..., special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress, and Duke Energy Florida, respectively. On a daily basis, DERF, DEPR, and DEFR buy certain accounts receivable arising from the sale of electricity and/or related services from their parent companies. DERF, DEPR, and DEFR...

  • Page 201
    ... basis, CRC buys certain accounts receivable arising from the sale of electricity and/or related services from Duke Energy Ohio and Duke Energy Indiana. Receivables sold are securitized by CRC through a credit facility managed by two unrelated third parties. The proceeds Duke Energy Ohio and Duke...

  • Page 202
    ...uctuations in power prices and changes in OVEC's costs of business, including costs associated with its 2,256 MW of coal-fired generation capacity. Proposed environmental rulemaking could increase the costs of OVEC, which would be passed through to Duke Energy Ohio. In 2014, Duke Energy recorded...

  • Page 203
    ...dividends declared on Duke Energy common shares during the restricted stock units' vesting period. On July 2, 2012, just prior to the close of the merger with Progress Energy, Duke Energy executed a one-for-three reverse stock split. All earnings per share amounts included in this 10-K are presented...

  • Page 204
    ...) Duke Energy(a) Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana 2013 $ 34 8 19 14 5 2 2 2012 $ 201 63 82 55 27 21 18 December 31, 2014. Severance costs expected to be accrued over the remaining retention period for employees...

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

  • Page 206
    ... performance awards granted in 2014, 2013 and 2012 contain market conditions based on the total shareholder return (TSR) of Duke Energy stock relative to a predefined peer group (relative TSR). These awards are valued using a path-dependent model that incorporates expected relative TSR into the...

  • Page 207
    ...ned benefit plans are closed to new and rehired non-union and certain unionized employees. (in millions) Anticipated Contributions: 2015 Contributions Made: 2014 2013 2012 Duke Energy $ 302 $ - 250 304 Duke Energy Carolinas $ 91 $- - - Progress Energy $ 83 $- 250 346 Duke Energy Progress $ 42...

  • Page 208
    ...) Service cost Interest cost on projected benefit obligation Expected return on plan assets Amortization of actuarial loss Amortization of prior service (credit) cost Other Net periodic pension costs Year Ended December 31, 2012 Duke Energy $ 122 307 (472) 144 10 6 $ 117 Duke Energy Carolinas...

  • Page 209
    ... of plan (a) Includes an increase in benefit obligation of $180 million as a result of changes in Duke Energy's mortality assumptions. Year Ended December 31, 2013 Duke Energy $ 8,030 167 320 (399) - (41) (567) $ 7,510 $ 7,361 $ 7,754 705 (567) - 250 $ 8,142 $ 632 Duke Energy Carolinas $ 2,028...

  • Page 210
    ... in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets. (c) Excludes accumulated other comprehensive income of $22 million and $16 million as of 2014 and 2013, respectively, net of tax, associated with a Brazilian retirement plan. Information for Plans with...

  • Page 211
    ... and Duke Energy Indiana. The following tables present the assumptions or range of assumptions used for pension benefit accounting. December 31, 2014 Benefit Obligations Discount rate Salary increase Net Periodic Benefit Cost Discount rate Salary increase Expected long-term rate of return on plan...

  • Page 212
    ... 31, 2013 Duke Energy $ 3 13 5 (1) $20 Duke Energy Carolinas $- 1 - - $ 1 Progress Energy $ 1 7 3 (1) $10 Duke Energy Progress $ 1 1 1 - $ 3 Duke Energy Florida $- 1 1 - $ 2 Duke Energy Ohio Duke Energy Indiana $- - - - $- (in millions) Service cost Interest cost on projected benefit obligation...

  • Page 213
    ... an increase in benefit obligation of $21 million as a result of changes in Duke Energy's mortality assumptions. Year Ended December 31, 2013 Duke Energy $ 335 3 13 (15) (5) (1) - (26) $ 304 $ 302 - (26) 26 $ - Duke Energy Carolinas $ 16 - 1 1 - - - (3) $ 15 $ 15 - (3) 3 $- Progress Energy $176...

  • Page 214
    ... post-retirement benefit costs on the Consolidated Balance Sheets. Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets December 31, 2014 Duke Energy $ 337 333 Duke Energy Carolinas $ 16 15 Progress Energy $ 116 116 Duke Energy Progress $ 35 35 Duke Energy Florida...

  • Page 215
    ...for Duke Energy Progress and 17 years for Duke Energy Florida. The following tables present the assumptions used for pension benefit accounting. December 31, 2014 Benefit Obligations Discount rate Salary increase Net Periodic Benefit Cost Discount rate Salary increase 4.10% 4.40% 4.70% 4.40% 2013...

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

  • Page 217
    ... Duke Energy Indiana $ 118 1 5 2 (20) - - (10) - $ 96 $ 18 2 (10) - 11 2 $ 23 (in millions) Change in Projected Benefit Obligation Accumulated post-retirement benefit obligation at prior measurement date Service cost Interest cost Plan participants' contributions Actuarial gains(a) Transfers Plan...

  • Page 218
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in the Consolidated Balance Sheets December 31, 2014...

  • Page 219
    ... tables present the assumptions used for other post-retirement benefits accounting. December 31, 2014 Benefit Obligations Discount rate Net Periodic Benefit Cost Discount rate Expected long-term rate of return on plan assets Assumed tax rate 4.10% 4.70% 6.75% 35% 2013 4.70% 4.10% 7.75% 35% 2012...

  • Page 220
    ...and reduce the impact of individual managers or investments. In 2013, Duke Energy adopted a de-risking investment strategy for the Duke Energy Master Retirement Trust. As the funded status of the qualified pension plans increases, the targeted allocation to return seeking assets will be reduced and...

  • Page 221
    ...trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reï¬,ect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When (i) the Duke Energy Registrants...

  • Page 222
    ... of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted earnings per share. As of January 1, 2014, for new and rehired...

  • Page 223
    ... 45 Duke Energy Progress $30 25 24 Duke Energy Florida $14 14 15 Duke Energy Ohio $3 3 4 Duke Energy Indiana $7 7 6 (in millions) Years ended December 31, 2014(a) 2013 2012 (a) For 2014, amounts include the additional employer contribution of 4 percent of eligible pay per pay period for employees...

  • Page 224
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2013 Duke...

  • Page 225
    ... from continuing operations Effective tax rate (a) Includes a $57 million benefit as a result of the merger of two Chilean subsidiaries and a change in income tax rates in various countries primarily relating to Peru. During the fourth quarter of 2014, Duke Energy declared a taxable dividend of...

  • Page 226
    ... related to capital lease obligations and debt fair value adjustments. On July 23, 2013, HB 998 was signed into law. HB 998 reduces the North Carolina corporate income tax rate from a statutory 6.9 to 6.0 percent in January 2014 with a further reduction to 5.0 percent in January 2015. Duke Energy...

  • Page 227
    ... related to capital lease obligations and debt fair value adjustments. Classification of Deferred Tax Assets (Liabilities) in the Consolidated Balance Sheets December 31, 2014 Duke Energy $ 1,593 29 - (13,423) $(11,801) Duke Energy Carolinas $ 3 - (5) (5,812) Progress Energy $ 558 - - (4,759) Duke...

  • Page 228
    ... tables present changes to unrecognized tax benefits. Year Ended December 31, 2014 Duke Energy $ 230 - (2) (15) (17) $ 213 Duke Energy Carolinas $ 171 - - (11) (11) $ 160 Progress Energy $ 32 1 - (1) - $ 32 Duke Energy Progress $ 22 1 - - 1 $ 23 $ Duke Energy Florida $ 8 - - - - 8 $ Duke Energy...

  • Page 229
    ... Balance Sheets. Year Ended December 31, 2014 Duke Energy $ 6 - - 13 Duke Energy Carolinas $ - 1 - 13 Progress Energy $ 3 - - 5 Duke Energy Progress $ - 1 - 3 Duke Energy Florida $ 1 - - 5 Duke Energy Ohio $ 4 - - - Duke Energy Indiana $ 4 - 2 - (in millions) Net interest income recognized related...

  • Page 230
    ... Energy Carolinas $ 4 - 91 71 6 $ 172 Progress Energy $ 3 - 26 17 31 77 Duke Energy Progress $ - - 25 17 9 51 Duke Energy Florida $ 2 - - - 18 20 Duke Energy Ohio $ 8 - 4 - (2) 10 Duke Energy Indiana $ 6 - 14 - 2 22 (in millions) Interest income Foreign exchange gains AFUDC equity Deferred returns...

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

  • Page 232
    ...Total 2013(a) Costs to achieve the merger with Duke Energy (see Note 2) Crystal River Unit 3 charges (see Note 4) Harris and Levy nuclear development charges (see Note 4) Total First Second Third Quarter Quarter Quarter Fourth Quarter Total (a) Revised retail rates became effective in June in North...

  • Page 233
    ... Generation Impairment (see Note 2) Asset Impairment (see Note 11) Total 2013(a) Costs to achieve Progress Energy merger (see Note 2) First Second Third Fourth Quarter Quarter Quarter Quarter Total 2014 Costs to achieve Progress Energy merger (see Note 2) $ 2013 Costs to achieve Progress Energy...

  • Page 234
    ... Commission. Based on that evaluation, management concluded that its internal controls over financial reporting were effective as of December 31, 2014. Deloitte & Touche LLP, Duke Energy's independent registered public accounting firm, has issued an attestation report on the effectiveness of Duke...

  • Page 235
    ...to the Securities and 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 2014 and 2013 by the independent public accountant were approved by the Duke Energy Audit Committee...

  • Page 236
    ... the required information is included in the Consolidated Financial Statements or Notes. Duke Energy Progress, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2014, 2013 and 2012 Consolidated Balance Sheets as...

  • Page 237
    ... the required information is included in the Consolidated Financial Statements or Notes. Duke Energy Indiana, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2014, 2013 and 2012 Consolidated Balance Sheets as...

  • Page 238
    ... 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 the date indicated. (i) /s/ LYNN J. GOOD Lynn J. Good Vice Chairman, President and Chief Executive Officer (Principal Executive Officer and Director...

  • Page 239
    ... 27, 2015 DUKE ENERGY CAROLINAS, LLC (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 240
    ... 27, 2015 PROGRESS ENERGY, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 241
    ... 27, 2015 DUKE ENERGY PROGRESS, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 242
    ... 27, 2015 DUKE ENERGY FLORIDA, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 243
    ... 27, 2015 DUKE ENERGY OHIO, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 244
    ... 27, 2015 DUKE ENERGY INDIANA, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the...

  • Page 245
    ... Energy that is required to be filed as an exhibit to this report pursuant to Item 15(b) of Form 10-K is designated by a plus (+). Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 2.1 Agreement and Plan of Merger between Duke Energy...

  • Page 246
    ... of Duke Energy Progress, Inc. (formerly Carolina Power & Light Company), effective May 13, 2009, (incorporated by reference to Exhibit 3(b) to registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 filed on August 7, 2009, File No. 1-15929). By-Laws of Duke Energy Florida...

  • Page 247
    ..., dated as of April 4, 2014, (incorporated by reference to Exhibit 4.1 to Duke Energy Corporation's Current Report on Form 8-K filed on April 4, 2014, File No. 1-32853). Senior Indenture between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust Company, N.A., as successor trustee to...

  • Page 248
    ... by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC's Current Report on Form 8-K filed on September 21, 2012, File No.1-04928). Mortgage and Deed of Trust between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and The Bank of New York Mellon (formerly Irving Trust...

  • Page 249
    ... by reference to Exhibit 4.1 to Duke Energy Progress, Inc.'s Current Report on Form 8-K filed on November 20, 2014, File No. 1-03382). Indenture (for Debt Securities) between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and The Bank of New York Mellon (successor in interest...

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

  • Page 251
    ...(d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed on November 20, 2012, File No. 1-03274). Indenture (for Debt Securities) between Duke Energy Florida, Inc. (formerly Florida Power Corporation (d/b/a Progress Energy Florida, Inc.)) and The Bank of New York Mellon Trust Company...

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

  • Page 253
    ... PSI Energy, Inc.) Current Report on Form 8-K filed on July 11, 2013, File No. 1-03543). Repayment Agreement between Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric Company) and The Dayton Power and Light Company, dated as of December 23, 1992, (filed with registrant's Annual Report...

  • Page 254
    ... Report on Form 10-Q for the quarter ended March 31, 2006 filed on May 10, 2006, File No. 1-32853). Amendment to Purchase and Sale Agreement between Duke Energy Americas, LLC, LS Power Generation, LLC (formerly LSP Bay II Harbor Holding, LLC), LSP Gen Finance Co, LLC, LSP South Bay Holdings, LLC...

  • Page 255
    ... and Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric Company) and Allegheny Energy Supply Company, LLC, Allegheny Energy Supply Wheatland Generating Facility, LLC and Lake Acquisition Company, L.L.C., dated as of May 6, 2005, (incorporated by reference to registrant's Quarterly Report...

  • Page 256
    ... to Rule 24b-2 under the Securities Exchange Act of 1934, as amended). Agreement and Plan of Merger between DEGS Wind I, LLC, DEGS Wind Vermont, Inc., Catamount Energy Corporation, dated as of June 25, 2008, (incorporated by reference to Exhibit 10.2 to Duke Energy Corporation's Quarterly Report on...

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

  • Page 258
    ..., 1981, between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and North Carolina Municipal Power Agency Number 3 and Exhibits, together with resolution, dated as of December 16, 1981, changing name to North Carolina Eastern Municipal Power Agency, amending letters, dated as of...

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

  • Page 260
    ... Energy Progress, Inc. and North Carolina Eastern Municipal Power Agency, dated as of September 5, 2014. Change in Control Agreement between Duke Energy Corporation and Lloyd M. Yates, dated as of April 30, 2014, (incorporated by reference to Exhibit 10.1 to Duke Energy Corporation's Current Report...

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

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

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

  • Page 264
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