☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number
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Registrant, State of Incorporation or Organization,
Address of Principal Executive Offices and Telephone Number
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IRS Employer Identification Number
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Commission
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Number and IRS Employer Commission Number and IRS Employer
|
file number
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Identification Number file number Identification Number
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Registrant
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Title of each class Trading symbols which registered
|
Duke Energy
|
Common Stock, $0.001 par value DUK New York Stock Exchange LLC
|
Duke Energy
|
5.125% Junior Subordinated Debentures due DUKH New York Stock Exchange LLC
|
Duke Energy
|
5.625% Junior Subordinated Debentures due DUKB New York Stock Exchange LLC
|
Duke Energy
|
Depositary Shares, each representing a 1/1,000th DUK PR A New York Stock Exchange LLC
|
Duke Energy Corporation (Duke Energy)
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Florida, LLC (Duke Energy Florida)
|
Yes
|
☒
|
No
|
☐
|
Duke Energy Carolinas, LLC (Duke Energy Carolinas)
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Ohio, Inc. (Duke Energy Ohio)
|
Yes
|
☒
|
No
|
☐
|
Progress Energy, Inc. (Progress Energy)
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Indiana, LLC (Duke Energy Indiana)
|
Yes
|
☒
|
No
|
☐
|
Duke Energy Progress, LLC (Duke Energy Progress)
|
Yes
|
☒
|
No
|
☐
|
|
Piedmont Natural Gas Company, Inc. (Piedmont)
|
Yes
|
☒
|
No
|
☐
|
Duke Energy
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Florida
|
Yes
|
☒
|
No
|
☐
|
Duke Energy Carolinas
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Ohio
|
Yes
|
☒
|
No
|
☐
|
Progress Energy
|
Yes
|
☒
|
No
|
☐
|
|
Duke Energy Indiana
|
Yes
|
☒
|
No
|
☐
|
Duke Energy Progress
|
Yes
|
☒
|
No
|
☐
|
|
Piedmont
|
Yes
|
☒
|
No
|
☐
|
Duke Energy
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy Carolinas
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Progress Energy
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy Progress
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy Florida
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy Ohio
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy Indiana
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Piedmont
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Duke Energy
|
Yes
|
☐
|
No
|
☒
|
|
Duke Energy Florida
|
Yes
|
☐
|
No
|
☒
|
Duke Energy Carolinas
|
Yes
|
☐
|
No
|
☒
|
|
Duke Energy Ohio
|
Yes
|
☐
|
No
|
☒
|
Progress Energy
|
Yes
|
☐
|
No
|
☒
|
|
Duke Energy Indiana
|
Yes
|
☐
|
No
|
☒
|
Duke Energy Progress
|
Yes
|
☐
|
No
|
☒
|
|
Piedmont
|
Yes
|
☐
|
No
|
☒
|
Registrant
|
Description
|
Shares
|
Duke Energy
|
Common stock, $0.001 par value
|
728,601,060
|
|
|
|
|
|
|
PART I. FINANCIAL INFORMATION
|
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|
Piedmont Natural Gas Company, Inc. Financial Statements
|
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|
|
|
|
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|
Note 1 – Organization and Basis of Presentation
|
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Note 2 – Business Segments
|
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Note 3 – Regulatory Matters
|
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Note 4 – Commitments and Contingencies
|
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Note 5 – Leases
|
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Note 6 – Debt and Credit Facilities
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Note 7 – Asset Retirement Obligations
|
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Note 8 – Goodwill
|
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Note 9 – Related Party Transactions
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Note 10 – Derivatives and Hedging
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Note 11 – Investments in Debt and Equity Securities
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Note 12 – Fair Value Measurements
|
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Note 13 – Variable Interest Entities
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Note 14 – Revenue
|
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Note 15 – Stockholders' Equity
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Note 16 – Employee Benefit Plans
|
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Note 17 – Income Taxes
|
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Note 18 – Subsequent Events
|
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PART II. OTHER INFORMATION
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FORWARD LOOKING STATEMENTS
|
|
•
|
State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
|
•
|
The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
|
•
|
The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
|
•
|
The costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
|
•
|
Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
|
•
|
Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
|
•
|
Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
|
•
|
Advancements in technology;
|
•
|
Additional competition in electric and natural gas markets and continued industry consolidation;
|
•
|
The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
|
•
|
The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
|
•
|
The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
|
•
|
Operational interruptions to our natural gas distribution and transmission activities;
|
•
|
The availability of adequate interstate pipeline transportation capacity and natural gas supply;
|
•
|
The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
|
•
|
The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
|
•
|
The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
|
•
|
The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
|
•
|
Credit ratings of the Duke Energy Registrants may be different from what is expected;
|
•
|
Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
|
•
|
Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
|
•
|
Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
|
•
|
The ability to control operation and maintenance costs;
|
•
|
The level of creditworthiness of counterparties to transactions;
|
•
|
Employee workforce factors, including the potential inability to attract and retain key personnel;
|
•
|
The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
|
FORWARD LOOKING STATEMENTS
|
|
•
|
The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
|
•
|
The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
|
•
|
The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
|
•
|
The impacts from potential impairments of goodwill or equity method investment carrying values; and
|
•
|
The ability to implement our business strategy, including enhancing existing technology systems.
|
GLOSSARY OF TERMS
|
|
GLOSSARY OF TERMS
|
|
Duke Energy Carolinas
|
Duke Energy Carolinas, LLC
|
|
|
Duke Energy Florida
|
Duke Energy Florida, LLC
|
|
|
Duke Energy Indiana
|
Duke Energy Indiana, LLC
|
|
|
Duke Energy Kentucky
|
Duke Energy Kentucky, Inc.
|
|
|
Duke Energy Registrants
|
Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
|
|
|
the EDA
|
Equity Distribution Agreement
|
|
|
EDIT
|
Excess deferred income tax
|
|
|
EPA
|
U.S. Environmental Protection Agency
|
|
|
EPC
|
Engineering, Procurement and Construction agreement
|
|
|
EPS
|
Earnings Per Share
|
|
|
ESP
|
Electric Security Plan
|
|
|
ETR
|
Effective tax rate
|
|
|
Exchange Act
|
Securities Exchange Act of 1934
|
|
|
FASB
|
Financial Accounting Standards Board
|
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
|
FES
|
FirstEnergy Solutions Corp.
|
|
|
Fitch
|
Fitch Ratings, Inc.
|
|
|
Fluor
|
Fluor Enterprises, Inc.
|
|
|
FPSC
|
Florida Public Service Commission
|
|
|
FTR
|
Financial transmission rights
|
|
|
FV-NI
|
Fair value through net income
|
|
|
GAAP
|
Generally accepted accounting principles in the U.S.
|
|
|
GAAP Reported Earnings
|
Net Income Attributable to Duke Energy Corporation
|
|
|
GAAP Reported EPS
|
Diluted EPS Attributable to Duke Energy Corporation common stockholders
|
|
|
GWh
|
Gigawatt-hours
|
|
|
Hardy Storage
|
Hardy Storage Company, LLC
|
|
|
HLBV
|
Hypothetical Liquidation at Book Value
|
|
|
ICPA
|
Inter-Company Power Agreement
|
|
|
IGCC
|
Integrated Gasification Combined Cycle
|
|
|
IMR
|
Integrity Management Rider
|
|
|
IRP
|
Integrated Resource Plan
|
|
|
IRS
|
Internal Revenue Service
|
|
|
Investment Trusts
|
NDTF investments and grantor trusts of Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana
|
|
|
IURC
|
Indiana Utility Regulatory Commission
|
|
|
JDA
|
Joint Dispatch Agreement
|
|
|
KPSC
|
Kentucky Public Service Commission
|
|
|
Lee Nuclear Station
|
William States Lee III Nuclear Station
|
|
|
MGP
|
Manufactured gas plant
|
|
|
MISO
|
Midcontinent Independent System Operator, Inc.
|
|
|
MMBtu
|
Million British Thermal Unit
|
|
|
Moody's
|
Moody's Investors Service, Inc.
|
|
|
GLOSSARY OF TERMS
|
|
MW
|
Megawatt
|
|
|
MWh
|
Megawatt-hour
|
|
|
NAV
|
Net asset value
|
|
|
NCDEQ
|
North Carolina Department of Environmental Quality (formerly the North Carolina Department of Environment and Natural Resources)
|
|
|
NCUC
|
North Carolina Utilities Commission
|
|
|
NDTF
|
Nuclear decommissioning trust funds
|
|
|
NMC
|
National Methanol Company
|
|
|
NPDES
|
National Pollutant Discharge Elimination System
|
|
|
NPNS
|
Normal purchase/normal sale
|
|
|
NRC
|
U.S. Nuclear Regulatory Commission
|
|
|
OPEB
|
Other Post-Retirement Benefit Obligations
|
|
|
ORS
|
South Carolina Office of Regulatory Staff
|
|
|
OTTI
|
Other-than-temporary impairment
|
|
|
OVEC
|
Ohio Valley Electric Corporation
|
|
|
Piedmont
|
Piedmont Natural Gas Company, Inc.
|
|
|
Piedmont Term Loan
|
Term loan facility with commitments totaling $350M entered in June 2017
|
|
|
Pine Needle
|
Pine Needle LNG Company, LLC
|
|
|
Pioneer
|
Pioneer Transmission, LLC
|
|
|
PJM
|
PJM Interconnection, LLC
|
|
|
PMPA
|
Piedmont Municipal Power Agency
|
|
|
PPAs
|
Purchase Power Agreements
|
|
|
Progress Energy
|
Progress Energy, Inc.
|
|
|
PSCSC
|
Public Service Commission of South Carolina
|
|
|
PUCO
|
Public Utilities Commission of Ohio
|
|
|
REC
|
Renewable Energy Certificate
|
|
|
REC Solar
|
REC Solar Corp.
|
|
|
ROU assets
|
Right-of-use assets
|
|
|
RRBA
|
Roanoke River Basin Association
|
|
|
SELC
|
Southern Environmental Law Center
|
|
|
S&P
|
Standard & Poor's Rating Services
|
|
|
Subsidiary Registrants
|
Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
|
|
|
the Tax Act
|
Tax Cuts and Jobs Act
|
|
|
TPUC
|
Tennessee Public Utility Commission
|
|
|
U.S.
|
United States
|
|
|
VIE
|
Variable Interest Entity
|
|
|
WACC
|
Weighted Average Cost of Capital
|
|
|
WNA
|
Weather normalization adjustment
|
|
|
W.S. Lee CC
|
William States Lee Combined Cycle Facility
|
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions, except per-share amounts)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Regulated electric
|
$
|
5,423
|
|
|
$
|
5,178
|
|
|
$
|
10,708
|
|
|
$
|
10,462
|
|
Regulated natural gas
|
280
|
|
|
291
|
|
|
1,008
|
|
|
991
|
|
||||
Nonregulated electric and other
|
170
|
|
|
174
|
|
|
320
|
|
|
325
|
|
||||
Total operating revenues
|
5,873
|
|
|
5,643
|
|
|
12,036
|
|
|
11,778
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
1,641
|
|
|
1,574
|
|
|
3,250
|
|
|
3,250
|
|
||||
Cost of natural gas
|
76
|
|
|
89
|
|
|
403
|
|
|
402
|
|
||||
Operation, maintenance and other
|
1,434
|
|
|
1,544
|
|
|
2,853
|
|
|
3,008
|
|
||||
Depreciation and amortization
|
1,089
|
|
|
973
|
|
|
2,178
|
|
|
1,940
|
|
||||
Property and other taxes
|
334
|
|
|
315
|
|
|
677
|
|
|
631
|
|
||||
Impairment charges
|
4
|
|
|
172
|
|
|
4
|
|
|
215
|
|
||||
Total operating expenses
|
4,578
|
|
|
4,667
|
|
|
9,365
|
|
|
9,446
|
|
||||
Gains (Losses) on Sales of Other Assets and Other, net
|
3
|
|
|
3
|
|
|
—
|
|
|
(97
|
)
|
||||
Operating Income
|
1,298
|
|
|
979
|
|
|
2,671
|
|
|
2,235
|
|
||||
Other Income and Expenses
|
|
|
|
|
|
|
|
|
|
||||||
Equity in earnings of unconsolidated affiliates
|
44
|
|
|
36
|
|
|
87
|
|
|
12
|
|
||||
Other income and expenses, net
|
89
|
|
|
110
|
|
|
204
|
|
|
196
|
|
||||
Total other income and expenses
|
133
|
|
|
146
|
|
|
291
|
|
|
208
|
|
||||
Interest Expense
|
542
|
|
|
518
|
|
|
1,085
|
|
|
1,033
|
|
||||
Income From Continuing Operations Before Income Taxes
|
889
|
|
|
607
|
|
|
1,877
|
|
|
1,410
|
|
||||
Income Tax Expense From Continuing Operations
|
141
|
|
|
100
|
|
|
236
|
|
|
281
|
|
||||
Income From Continuing Operations
|
748
|
|
|
507
|
|
|
1,641
|
|
|
1,129
|
|
||||
Loss From Discontinued Operations, net of tax
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||
Net Income
|
748
|
|
|
502
|
|
|
1,641
|
|
|
1,124
|
|
||||
Less: Net (Loss) Income Attributable to Noncontrolling Interests
|
(84
|
)
|
|
2
|
|
|
(91
|
)
|
|
4
|
|
||||
Less: Preferred Dividends
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Net Income Attributable to Duke Energy Corporation
|
$
|
820
|
|
|
$
|
500
|
|
|
$
|
1,720
|
|
|
$
|
1,120
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share – Basic and Diluted
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted
|
$
|
1.12
|
|
|
$
|
0.72
|
|
|
$
|
2.36
|
|
|
$
|
1.60
|
|
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Net income attributable to Duke Energy Corporation common stockholders
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted
|
$
|
1.12
|
|
|
$
|
0.71
|
|
|
$
|
2.36
|
|
|
$
|
1.59
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
728
|
|
|
703
|
|
|
728
|
|
|
702
|
|
||||
Diluted
|
728
|
|
|
704
|
|
|
728
|
|
|
702
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Net Income
|
$
|
748
|
|
|
$
|
502
|
|
|
$
|
1,641
|
|
|
$
|
1,124
|
|
Other Comprehensive (Loss) Income, net of tax
|
|
|
|
|
|
|
|
||||||||
Pension and OPEB adjustments
|
3
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Net unrealized (losses) gains on cash flow hedges
|
(29
|
)
|
|
1
|
|
|
(46
|
)
|
|
13
|
|
||||
Reclassification into earnings from cash flow hedges
|
2
|
|
|
(2
|
)
|
|
3
|
|
|
(1
|
)
|
||||
Unrealized gains (losses) on available-for-sale securities
|
4
|
|
|
(2
|
)
|
|
8
|
|
|
(5
|
)
|
||||
Other Comprehensive (Loss) Income, net of tax
|
(20
|
)
|
|
(2
|
)
|
|
(32
|
)
|
|
9
|
|
||||
Comprehensive Income
|
728
|
|
|
500
|
|
|
1,609
|
|
|
1,133
|
|
||||
Less: Comprehensive (Loss) Income Attributable to Noncontrolling Interests
|
(84
|
)
|
|
2
|
|
|
(91
|
)
|
|
4
|
|
||||
Less: Preferred Dividends
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Comprehensive Income Attributable to Duke Energy Corporation
|
$
|
800
|
|
|
$
|
498
|
|
|
$
|
1,688
|
|
|
$
|
1,129
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
336
|
|
|
$
|
442
|
|
Receivables (net of allowance for doubtful accounts of $16 at 2019 and 2018)
|
646
|
|
|
962
|
|
||
Receivables of VIEs (net of allowance for doubtful accounts of $55 at 2019 and 2018)
|
2,153
|
|
|
2,172
|
|
||
Inventory
|
3,189
|
|
|
3,084
|
|
||
Regulatory assets (includes $52 at 2019 and 2018 related to VIEs)
|
1,918
|
|
|
2,005
|
|
||
Other (includes $140 at 2019 and $162 at 2018 related to VIEs)
|
1,267
|
|
|
1,049
|
|
||
Total current assets
|
9,509
|
|
|
9,714
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
141,363
|
|
|
134,458
|
|
||
Accumulated depreciation and amortization
|
(44,482
|
)
|
|
(43,126
|
)
|
||
Generation facilities to be retired, net
|
317
|
|
|
362
|
|
||
Net property, plant and equipment
|
97,198
|
|
|
91,694
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Goodwill
|
19,303
|
|
|
19,303
|
|
||
Regulatory assets (includes $1,019 at 2019 and $1,041 at 2018 related to VIEs)
|
13,393
|
|
|
13,617
|
|
||
Nuclear decommissioning trust funds
|
7,621
|
|
|
6,720
|
|
||
Operating lease right-of-use assets, net
|
1,735
|
|
|
—
|
|
||
Investments in equity method unconsolidated affiliates
|
1,715
|
|
|
1,409
|
|
||
Other (includes $289 at 2019 and $261 at 2018 related to VIEs)
|
2,975
|
|
|
2,935
|
|
||
Total other noncurrent assets
|
46,742
|
|
|
43,984
|
|
||
Total Assets
|
$
|
153,449
|
|
|
$
|
145,392
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
2,512
|
|
|
$
|
3,487
|
|
Notes payable and commercial paper
|
3,793
|
|
|
3,410
|
|
||
Taxes accrued
|
521
|
|
|
577
|
|
||
Interest accrued
|
564
|
|
|
559
|
|
||
Current maturities of long-term debt (includes $232 at 2019 and $227 at 2018 related to VIEs)
|
2,698
|
|
|
3,406
|
|
||
Asset retirement obligations
|
739
|
|
|
919
|
|
||
Regulatory liabilities
|
600
|
|
|
598
|
|
||
Other
|
2,020
|
|
|
2,085
|
|
||
Total current liabilities
|
13,447
|
|
|
15,041
|
|
||
Long-Term Debt (includes $4,070 at 2019 and $3,998 at 2018 related to VIEs)
|
54,342
|
|
|
51,123
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
8,532
|
|
|
7,806
|
|
||
Asset retirement obligations
|
11,889
|
|
|
9,548
|
|
||
Regulatory liabilities
|
15,294
|
|
|
14,834
|
|
||
Operating lease liabilities
|
1,502
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
959
|
|
|
988
|
|
||
Investment tax credits
|
569
|
|
|
568
|
|
||
Other (includes $222 at 2019 and $212 at 2018 related to VIEs)
|
1,583
|
|
|
1,650
|
|
||
Total other noncurrent liabilities
|
40,328
|
|
|
35,394
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Preferred stock, $0.001 par value, 40 million depositary shares authorized and outstanding at 2019
|
973
|
|
|
—
|
|
||
Common stock, $0.001 par value, 2 billion shares authorized; 728 million shares outstanding at 2019 and 727 million shares outstanding at 2018
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
40,885
|
|
|
40,795
|
|
||
Retained earnings
|
3,502
|
|
|
3,113
|
|
||
Accumulated other comprehensive loss
|
(148
|
)
|
|
(92
|
)
|
||
Total Duke Energy Corporation stockholders' equity
|
45,213
|
|
|
43,817
|
|
||
Noncontrolling interests
|
119
|
|
|
17
|
|
||
Total equity
|
45,332
|
|
|
43,834
|
|
||
Total Liabilities and Equity
|
$
|
153,449
|
|
|
$
|
145,392
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
1,641
|
|
|
$
|
1,124
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion (including amortization of nuclear fuel)
|
2,483
|
|
|
2,250
|
|
||
Equity component of AFUDC
|
(67
|
)
|
|
(106
|
)
|
||
Losses on sales of other assets
|
—
|
|
|
97
|
|
||
Impairment charges
|
4
|
|
|
215
|
|
||
Deferred income taxes
|
527
|
|
|
289
|
|
||
Equity in earnings of unconsolidated affiliates
|
(87
|
)
|
|
(12
|
)
|
||
Accrued pension and other post-retirement benefit costs
|
4
|
|
|
31
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(141
|
)
|
||
Payments for asset retirement obligations
|
(336
|
)
|
|
(245
|
)
|
||
Payment for disposal of other assets
|
—
|
|
|
(105
|
)
|
||
Other rate case adjustments
|
—
|
|
|
37
|
|
||
Provision for rate refunds
|
57
|
|
|
281
|
|
||
(Increase) decrease in
|
|
|
|
||||
Net realized and unrealized mark-to-market and hedging transactions
|
(11
|
)
|
|
7
|
|
||
Receivables
|
304
|
|
|
(27
|
)
|
||
Inventory
|
(110
|
)
|
|
70
|
|
||
Other current assets
|
(265
|
)
|
|
21
|
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(700
|
)
|
|
(142
|
)
|
||
Taxes accrued
|
(56
|
)
|
|
(58
|
)
|
||
Other current liabilities
|
(378
|
)
|
|
(214
|
)
|
||
Other assets
|
7
|
|
|
(112
|
)
|
||
Other liabilities
|
39
|
|
|
42
|
|
||
Net cash provided by operating activities
|
3,056
|
|
|
3,302
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(5,465
|
)
|
|
(4,375
|
)
|
||
Contributions to equity method investments
|
(162
|
)
|
|
(140
|
)
|
||
Purchases of debt and equity securities
|
(2,316
|
)
|
|
(1,908
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
2,302
|
|
|
1,866
|
|
||
Other
|
(147
|
)
|
|
(88
|
)
|
||
Net cash used in investing activities
|
(5,788
|
)
|
|
(4,645
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the:
|
|
|
|
||||
Issuance of long-term debt
|
4,622
|
|
|
2,727
|
|
||
Issuance of preferred stock
|
973
|
|
|
—
|
|
||
Issuance of common stock
|
27
|
|
|
820
|
|
||
Payments for the redemption of long-term debt
|
(2,155
|
)
|
|
(2,190
|
)
|
||
Proceeds from the issuance of short-term debt with original maturities greater than 90 days
|
240
|
|
|
201
|
|
||
Payments for the redemption of short-term debt with original maturities greater than 90 days
|
(299
|
)
|
|
(160
|
)
|
||
Notes payable and commercial paper
|
383
|
|
|
1,090
|
|
||
Dividends paid
|
(1,312
|
)
|
|
(1,199
|
)
|
||
Other
|
143
|
|
|
(24
|
)
|
||
Net cash provided by financing activities
|
2,622
|
|
|
1,265
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(110
|
)
|
|
(78
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
591
|
|
|
505
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
481
|
|
|
$
|
427
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
917
|
|
|
$
|
978
|
|
Non-cash dividends
|
54
|
|
|
52
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
Accumulated Other Comprehensive
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
(Loss) Income
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
Net Unrealized
|
|
|
Total
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
Net Gains
|
|
(Losses) Gains
|
|
|
Duke Energy
|
|
|
|
||||||||||||||||||
|
|
Common
|
|
|
Additional
|
|
|
(Losses) on
|
|
on Available-
|
|
Pension and
|
|
Corporation
|
|
|
|
|||||||||||||||
|
Preferred
|
|
Stock
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Cash Flow
|
|
for-Sale-
|
|
OPEB
|
|
Stockholders'
|
|
Noncontrolling
|
|
Total
|
|
||||||||||
(in millions)
|
Stock
|
|
Shares
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Hedges
|
|
Securities
|
|
Adjustments
|
|
Equity
|
|
Interests
|
|
Equity
|
|
||||||||||
Balance at March 31, 2018
|
$
|
—
|
|
701
|
|
$
|
1
|
|
$
|
38,839
|
|
$
|
3,021
|
|
$
|
3
|
|
$
|
(4
|
)
|
$
|
(68
|
)
|
$
|
41,792
|
|
$
|
6
|
|
$
|
41,798
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
500
|
|
—
|
|
—
|
|
—
|
|
500
|
|
2
|
|
502
|
|
||||||||||
Other comprehensive (loss) income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(2
|
)
|
1
|
|
(2
|
)
|
—
|
|
(2
|
)
|
||||||||||
Common stock issuances, including dividend reinvestment and employee benefits
|
—
|
|
11
|
|
—
|
|
843
|
|
—
|
|
—
|
|
—
|
|
—
|
|
843
|
|
—
|
|
843
|
|
||||||||||
Common stock dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
(626
|
)
|
—
|
|
—
|
|
—
|
|
(626
|
)
|
—
|
|
(626
|
)
|
||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Balance at June 30, 2018
|
$
|
—
|
|
712
|
|
$
|
1
|
|
$
|
39,682
|
|
$
|
2,894
|
|
$
|
2
|
|
$
|
(5
|
)
|
$
|
(67
|
)
|
$
|
42,507
|
|
$
|
8
|
|
$
|
42,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at March 31, 2019
|
$
|
974
|
|
728
|
|
$
|
1
|
|
$
|
40,823
|
|
$
|
3,360
|
|
$
|
(36
|
)
|
$
|
—
|
|
$
|
(92
|
)
|
$
|
45,030
|
|
$
|
15
|
|
$
|
45,045
|
|
Net income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
820
|
|
—
|
|
—
|
|
—
|
|
820
|
|
(84
|
)
|
736
|
|
||||||||||
Other comprehensive (loss) income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
4
|
|
3
|
|
(20
|
)
|
—
|
|
(20
|
)
|
||||||||||
Preferred stock issuances, net of issuance costs
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
||||||||||
Common stock issuances, including dividend reinvestment and employee benefits
|
—
|
|
—
|
|
—
|
|
61
|
|
—
|
|
—
|
|
—
|
|
—
|
|
61
|
|
—
|
|
61
|
|
||||||||||
Common stock dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
(678
|
)
|
—
|
|
—
|
|
—
|
|
(678
|
)
|
—
|
|
(678
|
)
|
||||||||||
Contribution from noncontrolling interest in subsidiaries(c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
193
|
|
193
|
|
||||||||||
Distributions to noncontrolling interest in subsidiaries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
||||||||||
Other
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
(4
|
)
|
(3
|
)
|
||||||||||
Balance at June 30, 2019
|
$
|
973
|
|
728
|
|
$
|
1
|
|
$
|
40,885
|
|
$
|
3,502
|
|
$
|
(63
|
)
|
$
|
4
|
|
$
|
(89
|
)
|
$
|
45,213
|
|
$
|
119
|
|
$
|
45,332
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended June 30, 2018 and 2019
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
Accumulated Other Comprehensive
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
(Loss) Income
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
Net Unrealized
|
|
|
Total
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
Net Gains
|
|
(Losses) Gains
|
|
|
Duke Energy
|
|
|
|
||||||||||||||||||
|
|
Common
|
|
|
Additional
|
|
|
(Losses) on
|
|
on Available-
|
|
Pension and
|
|
Corporation
|
|
|
|
|||||||||||||||
|
Preferred
|
|
Stock
|
|
Common
|
|
Paid-in
|
|
Retained
|
|
Cash Flow
|
|
for-Sale-
|
|
OPEB
|
|
Stockholders'
|
|
Noncontrolling
|
|
Total
|
|
||||||||||
(in millions)
|
Stock
|
|
Shares
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Hedges
|
|
Securities
|
|
Adjustments
|
|
Equity
|
|
Interests
|
|
Equity
|
|
||||||||||
Balance at December 31, 2017
|
$
|
—
|
|
700
|
|
$
|
1
|
|
$
|
38,792
|
|
$
|
3,013
|
|
$
|
(10
|
)
|
$
|
12
|
|
$
|
(69
|
)
|
$
|
41,739
|
|
$
|
(2
|
)
|
$
|
41,737
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
1,120
|
|
—
|
|
—
|
|
—
|
|
1,120
|
|
4
|
|
1,124
|
|
||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
(5
|
)
|
2
|
|
9
|
|
—
|
|
9
|
|
||||||||||
Common stock issuances, including dividend reinvestment and employee benefits
|
—
|
|
12
|
|
—
|
|
890
|
|
—
|
|
—
|
|
—
|
|
—
|
|
890
|
|
—
|
|
890
|
|
||||||||||
Common stock dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,251
|
)
|
—
|
|
—
|
|
—
|
|
(1,251
|
)
|
—
|
|
(1,251
|
)
|
||||||||||
Distributions to noncontrolling interest in subsidiaries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
||||||||||
Other(a)
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
—
|
|
(12
|
)
|
—
|
|
—
|
|
7
|
|
7
|
|
||||||||||
Balance at June 30, 2018
|
$
|
—
|
|
712
|
|
$
|
1
|
|
$
|
39,682
|
|
$
|
2,894
|
|
$
|
2
|
|
$
|
(5
|
)
|
$
|
(67
|
)
|
$
|
42,507
|
|
$
|
8
|
|
$
|
42,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2018
|
$
|
—
|
|
727
|
|
$
|
1
|
|
$
|
40,795
|
|
$
|
3,113
|
|
$
|
(14
|
)
|
$
|
(3
|
)
|
$
|
(75
|
)
|
$
|
43,817
|
|
$
|
17
|
|
$
|
43,834
|
|
Net income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
1,720
|
|
—
|
|
—
|
|
—
|
|
1,720
|
|
(91
|
)
|
1,629
|
|
||||||||||
Other comprehensive (loss) income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(43
|
)
|
8
|
|
3
|
|
(32
|
)
|
—
|
|
(32
|
)
|
||||||||||
Preferred stock issuances, net of issuance costs(b)
|
973
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
973
|
|
—
|
|
973
|
|
||||||||||
Common stock issuances, including dividend reinvestment and employee benefits
|
—
|
|
1
|
|
—
|
|
89
|
|
—
|
|
—
|
|
—
|
|
—
|
|
89
|
|
—
|
|
89
|
|
||||||||||
Common stock dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,354
|
)
|
—
|
|
—
|
|
—
|
|
(1,354
|
)
|
—
|
|
(1,354
|
)
|
||||||||||
Contributions from noncontrolling interest in subsidiaries(c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
193
|
|
193
|
|
||||||||||
Distributions to noncontrolling interest in subsidiaries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
||||||||||
Other(d)
|
—
|
|
—
|
|
—
|
|
1
|
|
23
|
|
(6
|
)
|
(1
|
)
|
(17
|
)
|
—
|
|
1
|
|
1
|
|
||||||||||
Balance at June 30, 2019
|
$
|
973
|
|
728
|
|
$
|
1
|
|
$
|
40,885
|
|
$
|
3,502
|
|
$
|
(63
|
)
|
$
|
4
|
|
$
|
(89
|
)
|
$
|
45,213
|
|
$
|
119
|
|
$
|
45,332
|
|
(a)
|
Amounts in Retained Earnings and Accumulated Other Comprehensive (Loss) Income represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement.
|
(b)
|
Duke Energy issued 40 million depositary shares of preferred stock in the first quarter of 2019.
|
(c)
|
Relates to tax equity financing activity in the Commercial Renewables segment.
|
(d)
|
Amounts in Retained Earnings and Accumulated Other Comprehensive (Loss) Income primarily represent impacts to accumulated other comprehensive income due to implementation of a new accounting standard related to Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
1,713
|
|
|
$
|
1,672
|
|
|
$
|
3,457
|
|
|
$
|
3,435
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
395
|
|
|
407
|
|
|
867
|
|
|
880
|
|
||||
Operation, maintenance and other
|
441
|
|
|
499
|
|
|
881
|
|
|
950
|
|
||||
Depreciation and amortization
|
346
|
|
|
289
|
|
|
663
|
|
|
561
|
|
||||
Property and other taxes
|
75
|
|
|
75
|
|
|
155
|
|
|
147
|
|
||||
Impairment charges
|
5
|
|
|
177
|
|
|
5
|
|
|
190
|
|
||||
Total operating expenses
|
1,262
|
|
|
1,447
|
|
|
2,571
|
|
|
2,728
|
|
||||
Losses on Sales of Other Assets and Other, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Operating Income
|
451
|
|
|
224
|
|
|
886
|
|
|
706
|
|
||||
Other Income and Expenses, net
|
41
|
|
|
35
|
|
|
72
|
|
|
74
|
|
||||
Interest Expense
|
117
|
|
|
110
|
|
|
227
|
|
|
217
|
|
||||
Income Before Income Taxes
|
375
|
|
|
149
|
|
|
731
|
|
|
563
|
|
||||
Income Tax Expense
|
74
|
|
|
32
|
|
|
137
|
|
|
123
|
|
||||
Net Income
|
$
|
301
|
|
|
$
|
117
|
|
|
$
|
594
|
|
|
$
|
440
|
|
Other Comprehensive Income, net of tax
|
|
|
|
|
|
|
|
||||||||
Reclassification into earnings from cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Comprehensive Income
|
$
|
301
|
|
|
$
|
117
|
|
|
$
|
594
|
|
|
$
|
441
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
15
|
|
|
$
|
33
|
|
Receivables (net of allowance for doubtful accounts of $2 at 2019 and 2018)
|
164
|
|
|
219
|
|
||
Receivables of VIEs (net of allowance for doubtful accounts of $7 at 2019 and 2018)
|
671
|
|
|
699
|
|
||
Receivables from affiliated companies
|
101
|
|
|
182
|
|
||
Inventory
|
1,025
|
|
|
948
|
|
||
Regulatory assets
|
605
|
|
|
520
|
|
||
Other
|
17
|
|
|
72
|
|
||
Total current assets
|
2,598
|
|
|
2,673
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
47,249
|
|
|
44,741
|
|
||
Accumulated depreciation and amortization
|
(16,047
|
)
|
|
(15,496
|
)
|
||
Net property, plant and equipment
|
31,202
|
|
|
29,245
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Regulatory assets
|
3,392
|
|
|
3,457
|
|
||
Nuclear decommissioning trust funds
|
4,059
|
|
|
3,558
|
|
||
Operating lease right-of-use assets, net
|
141
|
|
|
—
|
|
||
Other
|
1,085
|
|
|
1,027
|
|
||
Total other noncurrent assets
|
8,677
|
|
|
8,042
|
|
||
Total Assets
|
$
|
42,477
|
|
|
$
|
39,960
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
640
|
|
|
$
|
988
|
|
Accounts payable to affiliated companies
|
189
|
|
|
230
|
|
||
Notes payable to affiliated companies
|
804
|
|
|
439
|
|
||
Taxes accrued
|
209
|
|
|
171
|
|
||
Interest accrued
|
106
|
|
|
102
|
|
||
Current maturities of long-term debt
|
456
|
|
|
6
|
|
||
Asset retirement obligations
|
203
|
|
|
290
|
|
||
Regulatory liabilities
|
191
|
|
|
199
|
|
||
Other
|
499
|
|
|
571
|
|
||
Total current liabilities
|
3,297
|
|
|
2,996
|
|
||
Long-Term Debt
|
10,208
|
|
|
10,633
|
|
||
Long-Term Debt Payable to Affiliated Companies
|
300
|
|
|
300
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
3,779
|
|
|
3,689
|
|
||
Asset retirement obligations
|
5,139
|
|
|
3,659
|
|
||
Regulatory liabilities
|
6,392
|
|
|
5,999
|
|
||
Operating lease liabilities
|
117
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
90
|
|
|
99
|
|
||
Investment tax credits
|
234
|
|
|
231
|
|
||
Other
|
645
|
|
|
671
|
|
||
Total other noncurrent liabilities
|
16,396
|
|
|
14,348
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Member's equity
|
12,283
|
|
|
11,689
|
|
||
Accumulated other comprehensive loss
|
(7
|
)
|
|
(6
|
)
|
||
Total equity
|
12,276
|
|
|
11,683
|
|
||
Total Liabilities and Equity
|
$
|
42,477
|
|
|
$
|
39,960
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
594
|
|
|
$
|
440
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization (including amortization of nuclear fuel)
|
804
|
|
|
707
|
|
||
Equity component of AFUDC
|
(21
|
)
|
|
(39
|
)
|
||
Losses on sales of other assets
|
—
|
|
|
1
|
|
||
Impairment charges
|
5
|
|
|
190
|
|
||
Deferred income taxes
|
54
|
|
|
90
|
|
||
Accrued pension and other post-retirement benefit costs
|
(4
|
)
|
|
2
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(46
|
)
|
||
Payments for asset retirement obligations
|
(131
|
)
|
|
(114
|
)
|
||
Provision for rate refunds
|
35
|
|
|
121
|
|
||
(Increase) decrease in
|
|
|
|
||||
Net realized and unrealized mark-to-market and hedging transactions
|
(8
|
)
|
|
8
|
|
||
Receivables
|
83
|
|
|
(33
|
)
|
||
Receivables from affiliated companies
|
81
|
|
|
(22
|
)
|
||
Inventory
|
(77
|
)
|
|
(16
|
)
|
||
Other current assets
|
(133
|
)
|
|
(33
|
)
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(282
|
)
|
|
(59
|
)
|
||
Accounts payable to affiliated companies
|
(41
|
)
|
|
(51
|
)
|
||
Taxes accrued
|
38
|
|
|
(78
|
)
|
||
Other current liabilities
|
(71
|
)
|
|
(123
|
)
|
||
Other assets
|
91
|
|
|
(6
|
)
|
||
Other liabilities
|
(18
|
)
|
|
(29
|
)
|
||
Net cash provided by operating activities
|
999
|
|
|
910
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(1,357
|
)
|
|
(1,270
|
)
|
||
Purchases of debt and equity securities
|
(1,114
|
)
|
|
(976
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
1,114
|
|
|
976
|
|
||
Other
|
(46
|
)
|
|
(64
|
)
|
||
Net cash used in investing activities
|
(1,403
|
)
|
|
(1,334
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
25
|
|
|
991
|
|
||
Payments for the redemption of long-term debt
|
(3
|
)
|
|
(702
|
)
|
||
Notes payable to affiliated companies
|
365
|
|
|
636
|
|
||
Distributions to parent
|
—
|
|
|
(500
|
)
|
||
Other
|
(1
|
)
|
|
(1
|
)
|
||
Net cash provided by financing activities
|
386
|
|
|
424
|
|
||
Net decrease in cash and cash equivalents
|
(18
|
)
|
|
—
|
|
||
Cash and cash equivalents at beginning of period
|
33
|
|
|
16
|
|
||
Cash and cash equivalents at end of period
|
$
|
15
|
|
|
$
|
16
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
252
|
|
|
$
|
343
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
||||||||||
|
|
|
Accumulated Other
|
|
|
||||||
|
|
|
Comprehensive
|
|
|
||||||
|
|
|
Loss
|
|
|
||||||
|
|
|
Net Losses on
|
|
|
|
|||||
|
Member's
|
|
|
Cash Flow
|
|
|
Total
|
|
|||
(in millions)
|
Equity
|
|
|
Hedges
|
|
|
Equity
|
|
|||
Balance at March 31, 2018
|
$
|
11,441
|
|
|
$
|
(6
|
)
|
|
$
|
11,435
|
|
Net income
|
117
|
|
|
—
|
|
|
117
|
|
|||
Distributions to parent
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
|||
Balance at June 30, 2018
|
$
|
11,308
|
|
|
$
|
(6
|
)
|
|
$
|
11,302
|
|
|
|
|
|
|
|
||||||
Balance at March 31, 2019
|
$
|
11,982
|
|
|
$
|
(7
|
)
|
|
$
|
11,975
|
|
Net income
|
301
|
|
|
—
|
|
|
301
|
|
|||
Balance at June 30, 2019
|
$
|
12,283
|
|
|
$
|
(7
|
)
|
|
$
|
12,276
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2018 and 2019
|
||||||||||
|
|
|
Accumulated Other
|
|
|
||||||
|
|
|
Comprehensive
|
|
|
||||||
|
|
|
Loss
|
|
|
||||||
|
|
|
Net Losses on
|
|
|
|
|||||
|
Member's
|
|
|
Cash Flow
|
|
|
Total
|
|
|||
(in millions)
|
Equity
|
|
|
Hedges
|
|
|
Equity
|
|
|||
Balance at December 31, 2017
|
$
|
11,368
|
|
|
$
|
(7
|
)
|
|
$
|
11,361
|
|
Net income
|
440
|
|
|
—
|
|
|
440
|
|
|||
Other comprehensive income
|
—
|
|
|
1
|
|
|
1
|
|
|||
Distributions to parent
|
(500
|
)
|
|
—
|
|
|
(500
|
)
|
|||
Balance at June 30, 2018
|
$
|
11,308
|
|
|
$
|
(6
|
)
|
|
$
|
11,302
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
$
|
11,689
|
|
|
$
|
(6
|
)
|
|
$
|
11,683
|
|
Net income
|
594
|
|
|
—
|
|
|
594
|
|
|||
Other
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Balance at June 30, 2019
|
$
|
12,283
|
|
|
$
|
(7
|
)
|
|
$
|
12,276
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
2,744
|
|
|
$
|
2,498
|
|
|
$
|
5,316
|
|
|
$
|
5,074
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
988
|
|
|
895
|
|
|
1,913
|
|
|
1,871
|
|
||||
Operation, maintenance and other
|
606
|
|
|
610
|
|
|
1,173
|
|
|
1,233
|
|
||||
Depreciation and amortization
|
426
|
|
|
380
|
|
|
881
|
|
|
764
|
|
||||
Property and other taxes
|
143
|
|
|
131
|
|
|
280
|
|
|
254
|
|
||||
Impairment charges
|
—
|
|
|
4
|
|
|
—
|
|
|
33
|
|
||||
Total operating expenses
|
2,163
|
|
|
2,020
|
|
|
4,247
|
|
|
4,155
|
|
||||
(Losses) Gains on Sales of Other Assets and Other, net
|
(1
|
)
|
|
6
|
|
|
(1
|
)
|
|
12
|
|
||||
Operating Income
|
580
|
|
|
484
|
|
|
1,068
|
|
|
931
|
|
||||
Other Income and Expenses, net
|
34
|
|
|
42
|
|
|
65
|
|
|
77
|
|
||||
Interest Expense
|
219
|
|
|
203
|
|
|
438
|
|
|
412
|
|
||||
Income Before Income Taxes
|
395
|
|
|
323
|
|
|
695
|
|
|
596
|
|
||||
Income Tax Expense
|
66
|
|
|
56
|
|
|
118
|
|
|
92
|
|
||||
Net Income
|
329
|
|
|
267
|
|
|
577
|
|
|
504
|
|
||||
Less: Net Income Attributable to Noncontrolling Interests
|
1
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Net Income Attributable to Parent
|
$
|
328
|
|
|
$
|
265
|
|
|
$
|
577
|
|
|
$
|
500
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
329
|
|
|
$
|
267
|
|
|
$
|
577
|
|
|
$
|
504
|
|
Other Comprehensive Income, net of tax
|
|
|
|
|
|
|
|
||||||||
Pension and OPEB adjustments
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Net unrealized gains on cash flow hedges
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Unrealized gains (losses) on available-for-sale securities
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
||||
Other Comprehensive Income, net of tax
|
3
|
|
|
2
|
|
|
6
|
|
|
4
|
|
||||
Comprehensive Income
|
332
|
|
|
269
|
|
|
583
|
|
|
508
|
|
||||
Less: Comprehensive Income Attributable to Noncontrolling Interests
|
1
|
|
|
2
|
|
|
—
|
|
|
4
|
|
||||
Comprehensive Income Attributable to Parent
|
$
|
331
|
|
|
$
|
267
|
|
|
$
|
583
|
|
|
$
|
504
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
51
|
|
|
$
|
67
|
|
Receivables (net of allowance for doubtful accounts of $6 at 2019 and $5 at 2018)
|
139
|
|
|
220
|
|
||
Receivables of VIEs (net of allowance for doubtful accounts of $8 at 2019 and 2018)
|
998
|
|
|
909
|
|
||
Receivables from affiliated companies
|
49
|
|
|
168
|
|
||
Inventory
|
1,480
|
|
|
1,459
|
|
||
Regulatory assets (includes $52 at 2019 and 2018 related to VIEs)
|
1,024
|
|
|
1,137
|
|
||
Other (includes $31 at 2019 and $39 at 2018 related to VIEs)
|
107
|
|
|
125
|
|
||
Total current assets
|
3,848
|
|
|
4,085
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
52,758
|
|
|
50,260
|
|
||
Accumulated depreciation and amortization
|
(16,808
|
)
|
|
(16,398
|
)
|
||
Generation facilities to be retired, net
|
317
|
|
|
362
|
|
||
Net property, plant and equipment
|
36,267
|
|
|
34,224
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Goodwill
|
3,655
|
|
|
3,655
|
|
||
Regulatory assets (includes $1,019 at 2019 and $1,041 at 2018 related to VIEs)
|
6,423
|
|
|
6,564
|
|
||
Nuclear decommissioning trust funds
|
3,562
|
|
|
3,162
|
|
||
Operating lease right-of-use assets, net
|
839
|
|
|
—
|
|
||
Other
|
982
|
|
|
974
|
|
||
Total other noncurrent assets
|
15,461
|
|
|
14,355
|
|
||
Total Assets
|
$
|
55,576
|
|
|
$
|
52,664
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
720
|
|
|
$
|
1,172
|
|
Accounts payable to affiliated companies
|
235
|
|
|
360
|
|
||
Notes payable to affiliated companies
|
1,920
|
|
|
1,235
|
|
||
Taxes accrued
|
191
|
|
|
109
|
|
||
Interest accrued
|
226
|
|
|
246
|
|
||
Current maturities of long-term debt (includes $54 at 2019 and $53 at 2018 related to VIEs)
|
1,026
|
|
|
1,672
|
|
||
Asset retirement obligations
|
416
|
|
|
514
|
|
||
Regulatory liabilities
|
250
|
|
|
280
|
|
||
Other
|
863
|
|
|
821
|
|
||
Total current liabilities
|
5,847
|
|
|
6,409
|
|
||
Long-Term Debt (includes $1,657 at 2019 and $1,636 at 2018 related to VIEs)
|
18,023
|
|
|
17,089
|
|
||
Long-Term Debt Payable to Affiliated Companies
|
150
|
|
|
150
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
4,141
|
|
|
3,941
|
|
||
Asset retirement obligations
|
5,777
|
|
|
4,897
|
|
||
Regulatory liabilities
|
5,191
|
|
|
5,049
|
|
||
Operating lease liabilities
|
747
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
509
|
|
|
521
|
|
||
Other
|
352
|
|
|
351
|
|
||
Total other noncurrent liabilities
|
16,717
|
|
|
14,759
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2019 and 2018
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
9,143
|
|
|
9,143
|
|
||
Retained earnings
|
5,715
|
|
|
5,131
|
|
||
Accumulated other comprehensive loss
|
(21
|
)
|
|
(20
|
)
|
||
Total Progress Energy, Inc. stockholders' equity
|
14,837
|
|
|
14,254
|
|
||
Noncontrolling interests
|
2
|
|
|
3
|
|
||
Total equity
|
14,839
|
|
|
14,257
|
|
||
Total Liabilities and Equity
|
$
|
55,576
|
|
|
$
|
52,664
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
577
|
|
|
$
|
504
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion (including amortization of nuclear fuel)
|
1,061
|
|
|
945
|
|
||
Equity component of AFUDC
|
(31
|
)
|
|
(52
|
)
|
||
Losses (gains) on sales of other assets
|
1
|
|
|
(12
|
)
|
||
Impairment charges
|
—
|
|
|
33
|
|
||
Deferred income taxes
|
126
|
|
|
240
|
|
||
Accrued pension and other post-retirement benefit costs
|
8
|
|
|
12
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(45
|
)
|
||
Payments for asset retirement obligations
|
(183
|
)
|
|
(108
|
)
|
||
Other rate case adjustments
|
—
|
|
|
37
|
|
||
Provision for rate refunds
|
10
|
|
|
65
|
|
||
(Increase) decrease in
|
|
|
|
||||
Net realized and unrealized mark-to-market and hedging transactions
|
(1
|
)
|
|
14
|
|
||
Receivables
|
(42
|
)
|
|
(196
|
)
|
||
Receivables from affiliated companies
|
119
|
|
|
28
|
|
||
Inventory
|
(26
|
)
|
|
71
|
|
||
Other current assets
|
114
|
|
|
(214
|
)
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(196
|
)
|
|
15
|
|
||
Accounts payable to affiliated companies
|
(125
|
)
|
|
(19
|
)
|
||
Taxes accrued
|
82
|
|
|
80
|
|
||
Other current liabilities
|
(162
|
)
|
|
(58
|
)
|
||
Other assets
|
(83
|
)
|
|
(186
|
)
|
||
Other liabilities
|
17
|
|
|
4
|
|
||
Net cash provided by operating activities
|
1,266
|
|
|
1,158
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(1,988
|
)
|
|
(1,727
|
)
|
||
Purchases of debt and equity securities
|
(1,094
|
)
|
|
(812
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
1,089
|
|
|
820
|
|
||
Notes receivable from affiliated companies
|
—
|
|
|
(69
|
)
|
||
Other
|
(59
|
)
|
|
(81
|
)
|
||
Net cash used in investing activities
|
(2,052
|
)
|
|
(1,869
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
1,295
|
|
|
989
|
|
||
Payments for the redemption of long-term debt
|
(1,188
|
)
|
|
(635
|
)
|
||
Notes payable to affiliated companies
|
685
|
|
|
347
|
|
||
Other
|
2
|
|
|
(3
|
)
|
||
Net cash provided by financing activities
|
794
|
|
|
698
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
8
|
|
|
(13
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
112
|
|
|
87
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
120
|
|
|
$
|
74
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
278
|
|
|
$
|
366
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
Net Unrealized
|
|
|
|
|
Total Progress
|
|
|
|
|
|
||||||||||||||
|
Additional
|
|
|
|
|
Net Losses on
|
|
|
Gains (Losses) on
|
|
|
Pension and
|
|
|
Energy, Inc.
|
|
|
|
|
|
|||||||||||
|
Paid-in
|
|
|
Retained
|
|
|
Cash Flow
|
|
|
Available-for-
|
|
|
OPEB
|
|
|
Stockholders'
|
|
|
Noncontrolling
|
|
|
Total
|
|
||||||||
(in millions)
|
Capital
|
|
|
Earnings
|
|
|
Hedges
|
|
|
Sale Securities
|
|
|
Adjustments
|
|
|
Equity
|
|
|
Interests
|
|
|
Equity
|
|
||||||||
Balance at March 31, 2018
|
$
|
9,142
|
|
|
$
|
4,591
|
|
|
$
|
(16
|
)
|
|
$
|
(1
|
)
|
|
$
|
(12
|
)
|
|
$
|
13,704
|
|
|
$
|
(1
|
)
|
|
$
|
13,703
|
|
Net income
|
—
|
|
|
265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|
2
|
|
|
267
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Other(a)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Balance at June 30, 2018
|
$
|
9,143
|
|
|
$
|
4,855
|
|
|
$
|
(15
|
)
|
|
$
|
(1
|
)
|
|
$
|
(10
|
)
|
|
$
|
13,972
|
|
|
$
|
—
|
|
|
$
|
13,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at March 31, 2019
|
$
|
9,143
|
|
|
$
|
5,386
|
|
|
$
|
(14
|
)
|
|
$
|
(1
|
)
|
|
$
|
(8
|
)
|
|
$
|
14,506
|
|
|
$
|
2
|
|
|
$
|
14,508
|
|
Net income
|
—
|
|
|
328
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|
1
|
|
|
329
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Balance at June 30, 2019
|
$
|
9,143
|
|
|
$
|
5,715
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
14,837
|
|
|
$
|
2
|
|
|
$
|
14,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Six Months Ended June 30, 2018 and 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
Net Unrealized
|
|
|
|
|
Total Progress
|
|
|
|
|
|
||||||||||||||
|
Additional
|
|
|
|
|
Net Losses on
|
|
|
Gains (Losses) on
|
|
|
Pension and
|
|
|
Energy, Inc.
|
|
|
|
|
|
|||||||||||
|
Paid-in
|
|
|
Retained
|
|
|
Cash Flow
|
|
|
Available-for-
|
|
|
OPEB
|
|
|
Stockholders'
|
|
|
Noncontrolling
|
|
|
Total
|
|
||||||||
|
Capital
|
|
|
Earnings
|
|
|
Hedges
|
|
|
Sale Securities
|
|
|
Adjustments
|
|
|
Equity
|
|
|
Interests
|
|
|
Equity
|
|
||||||||
Balance at December 31, 2017
|
$
|
9,143
|
|
|
$
|
4,350
|
|
|
$
|
(18
|
)
|
|
$
|
5
|
|
|
$
|
(12
|
)
|
|
$
|
13,468
|
|
|
$
|
(3
|
)
|
|
$
|
13,465
|
|
Net income
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
4
|
|
|
504
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Other(a)
|
—
|
|
|
5
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at June 30, 2018
|
$
|
9,143
|
|
|
$
|
4,855
|
|
|
$
|
(15
|
)
|
|
$
|
(1
|
)
|
|
$
|
(10
|
)
|
|
$
|
13,972
|
|
|
$
|
—
|
|
|
$
|
13,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2018
|
$
|
9,143
|
|
|
$
|
5,131
|
|
|
$
|
(12
|
)
|
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
14,254
|
|
|
$
|
3
|
|
|
$
|
14,257
|
|
Net income
|
—
|
|
|
577
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
577
|
|
|
—
|
|
|
577
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
Other(b)
|
—
|
|
|
7
|
|
|
(4
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||
Balance at June 30, 2019
|
$
|
9,143
|
|
|
$
|
5,715
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
14,837
|
|
|
$
|
2
|
|
|
$
|
14,839
|
|
(a)
|
Amounts in Retained Earnings and Accumulated Other Comprehensive (Loss) Income represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement.
|
(b)
|
Amounts in Retained Earnings and Accumulated Other Comprehensive (Loss) Income primarily represent impacts to accumulated other comprehensive income due to implementation of a new accounting standard related to Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
1,387
|
|
|
$
|
1,291
|
|
|
$
|
2,871
|
|
|
$
|
2,751
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
479
|
|
|
408
|
|
|
994
|
|
|
917
|
|
||||
Operation, maintenance and other
|
357
|
|
|
375
|
|
|
692
|
|
|
756
|
|
||||
Depreciation and amortization
|
251
|
|
|
235
|
|
|
541
|
|
|
470
|
|
||||
Property and other taxes
|
41
|
|
|
40
|
|
|
85
|
|
|
75
|
|
||||
Impairment charges
|
—
|
|
|
1
|
|
|
—
|
|
|
33
|
|
||||
Total operating expenses
|
1,128
|
|
|
1,059
|
|
|
2,312
|
|
|
2,251
|
|
||||
Gains on Sales of Other Assets and Other, net
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Operating Income
|
259
|
|
|
233
|
|
|
559
|
|
|
502
|
|
||||
Other Income and Expenses, net
|
24
|
|
|
19
|
|
|
48
|
|
|
37
|
|
||||
Interest Expense
|
81
|
|
|
78
|
|
|
158
|
|
|
159
|
|
||||
Income Before Income Taxes
|
202
|
|
|
174
|
|
|
449
|
|
|
380
|
|
||||
Income Tax Expense
|
33
|
|
|
35
|
|
|
77
|
|
|
64
|
|
||||
Net Income and Comprehensive Income
|
$
|
169
|
|
|
$
|
139
|
|
|
$
|
372
|
|
|
$
|
316
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
28
|
|
|
$
|
23
|
|
Receivables (net of allowance for doubtful accounts of $2 at 2019 and 2018)
|
53
|
|
|
75
|
|
||
Receivables of VIEs (net of allowance for doubtful accounts of $5 at 2019 and 2018)
|
518
|
|
|
547
|
|
||
Receivables from affiliated companies
|
40
|
|
|
23
|
|
||
Inventory
|
980
|
|
|
954
|
|
||
Regulatory assets
|
572
|
|
|
703
|
|
||
Other
|
34
|
|
|
62
|
|
||
Total current assets
|
2,225
|
|
|
2,387
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
33,288
|
|
|
31,459
|
|
||
Accumulated depreciation and amortization
|
(11,728
|
)
|
|
(11,423
|
)
|
||
Generation facilities to be retired, net
|
317
|
|
|
362
|
|
||
Net property, plant and equipment
|
21,877
|
|
|
20,398
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Regulatory assets
|
4,124
|
|
|
4,111
|
|
||
Nuclear decommissioning trust funds
|
2,833
|
|
|
2,503
|
|
||
Operating lease right-of-use assets, net
|
407
|
|
|
—
|
|
||
Other
|
586
|
|
|
612
|
|
||
Total other noncurrent assets
|
7,950
|
|
|
7,226
|
|
||
Total Assets
|
$
|
32,052
|
|
|
$
|
30,011
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
315
|
|
|
$
|
660
|
|
Accounts payable to affiliated companies
|
182
|
|
|
278
|
|
||
Notes payable to affiliated companies
|
127
|
|
|
294
|
|
||
Taxes accrued
|
106
|
|
|
53
|
|
||
Interest accrued
|
110
|
|
|
116
|
|
||
Current maturities of long-term debt
|
6
|
|
|
603
|
|
||
Asset retirement obligations
|
413
|
|
|
509
|
|
||
Regulatory liabilities
|
167
|
|
|
178
|
|
||
Other
|
395
|
|
|
408
|
|
||
Total current liabilities
|
1,821
|
|
|
3,099
|
|
||
Long-Term Debt
|
8,893
|
|
|
7,451
|
|
||
Long-Term Debt Payable to Affiliated Companies
|
150
|
|
|
150
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
2,181
|
|
|
2,119
|
|
||
Asset retirement obligations
|
5,203
|
|
|
4,311
|
|
||
Regulatory liabilities
|
4,150
|
|
|
3,955
|
|
||
Operating lease liabilities
|
377
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
232
|
|
|
237
|
|
||
Investment tax credits
|
141
|
|
|
142
|
|
||
Other
|
91
|
|
|
106
|
|
||
Total other noncurrent liabilities
|
12,375
|
|
|
10,870
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Member's Equity
|
8,813
|
|
|
8,441
|
|
||
Total Liabilities and Equity
|
$
|
32,052
|
|
|
$
|
30,011
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
372
|
|
|
$
|
316
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization (including amortization of nuclear fuel)
|
634
|
|
|
565
|
|
||
Equity component of AFUDC
|
(28
|
)
|
|
(26
|
)
|
||
Gains on sales of other assets
|
—
|
|
|
(2
|
)
|
||
Impairment charges
|
—
|
|
|
33
|
|
||
Deferred income taxes
|
26
|
|
|
53
|
|
||
Accrued pension and other post-retirement benefit costs
|
1
|
|
|
7
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(25
|
)
|
||
Payments for asset retirement obligations
|
(166
|
)
|
|
(89
|
)
|
||
Other rate case adjustments
|
—
|
|
|
37
|
|
||
Provision for rate refunds
|
10
|
|
|
65
|
|
||
(Increase) decrease in
|
|
|
|
||||
Net realized and unrealized mark-to-market and hedging transactions
|
(5
|
)
|
|
6
|
|
||
Receivables
|
58
|
|
|
(104
|
)
|
||
Receivables from affiliated companies
|
(17
|
)
|
|
2
|
|
||
Inventory
|
(26
|
)
|
|
41
|
|
||
Other current assets
|
115
|
|
|
(111
|
)
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(223
|
)
|
|
(17
|
)
|
||
Accounts payable to affiliated companies
|
(96
|
)
|
|
(4
|
)
|
||
Taxes accrued
|
53
|
|
|
26
|
|
||
Other current liabilities
|
(74
|
)
|
|
(38
|
)
|
||
Other assets
|
—
|
|
|
10
|
|
||
Other liabilities
|
21
|
|
|
13
|
|
||
Net cash provided by operating activities
|
655
|
|
|
758
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(1,115
|
)
|
|
(996
|
)
|
||
Purchases of debt and equity securities
|
(473
|
)
|
|
(573
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
458
|
|
|
556
|
|
||
Other
|
(20
|
)
|
|
(45
|
)
|
||
Net cash used in investing activities
|
(1,150
|
)
|
|
(1,058
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
1,270
|
|
|
—
|
|
||
Payments for the redemption of long-term debt
|
(602
|
)
|
|
—
|
|
||
Notes payable to affiliated companies
|
(167
|
)
|
|
300
|
|
||
Other
|
(1
|
)
|
|
(2
|
)
|
||
Net cash provided by financing activities
|
500
|
|
|
298
|
|
||
Net increase (decrease) in cash and cash equivalents
|
5
|
|
|
(2
|
)
|
||
Cash and cash equivalents at beginning of period
|
23
|
|
|
20
|
|
||
Cash and cash equivalents at end of period
|
$
|
28
|
|
|
$
|
18
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
112
|
|
|
$
|
172
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
||
|
June 30, 2018 and 2019
|
||
|
Member's
|
||
(in millions)
|
Equity
|
||
Balance at March 31, 2018
|
$
|
8,126
|
|
Net income
|
139
|
|
|
Balance at June 30, 2018
|
$
|
8,265
|
|
|
|
||
Balance at March 31, 2019
|
$
|
8,644
|
|
Net income
|
169
|
|
|
Balance at June 30, 2019
|
$
|
8,813
|
|
|
|
||
|
Six Months Ended
|
||
|
June 30, 2018 and 2019
|
||
|
Member's
|
||
(in millions)
|
Equity
|
||
Balance at December 31, 2017
|
$
|
7,949
|
|
Net income
|
316
|
|
|
Balance at June 30, 2018
|
$
|
8,265
|
|
|
|
||
Balance at December 31, 2018
|
$
|
8,441
|
|
Net income
|
372
|
|
|
Balance at June 30, 2019
|
$
|
8,813
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
1,353
|
|
|
$
|
1,203
|
|
|
$
|
2,439
|
|
|
$
|
2,318
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
509
|
|
|
486
|
|
|
919
|
|
|
953
|
|
||||
Operation, maintenance and other
|
244
|
|
|
237
|
|
|
474
|
|
|
474
|
|
||||
Depreciation and amortization
|
175
|
|
|
144
|
|
|
340
|
|
|
294
|
|
||||
Property and other taxes
|
103
|
|
|
91
|
|
|
196
|
|
|
179
|
|
||||
Total operating expenses
|
1,031
|
|
|
958
|
|
|
1,929
|
|
|
1,900
|
|
||||
Losses on Sales of Other Assets and Other, net
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Operating Income
|
321
|
|
|
245
|
|
|
509
|
|
|
418
|
|
||||
Other Income and Expenses, net
|
12
|
|
|
26
|
|
|
25
|
|
|
47
|
|
||||
Interest Expense
|
83
|
|
|
66
|
|
|
165
|
|
|
137
|
|
||||
Income Before Income Taxes
|
250
|
|
|
205
|
|
|
369
|
|
|
328
|
|
||||
Income Tax Expense
|
49
|
|
|
37
|
|
|
72
|
|
|
57
|
|
||||
Net Income
|
$
|
201
|
|
|
$
|
168
|
|
|
$
|
297
|
|
|
$
|
271
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized (losses) gains on available-for-sale securities
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
||||
Comprehensive Income
|
$
|
201
|
|
|
$
|
167
|
|
|
$
|
298
|
|
|
$
|
270
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
16
|
|
|
$
|
36
|
|
Receivables (net of allowance for doubtful accounts of $3 at 2019 and 2018)
|
84
|
|
|
143
|
|
||
Receivables of VIEs (net of allowance for doubtful accounts of $3 at 2019 and 2018)
|
480
|
|
|
362
|
|
||
Receivables from affiliated companies
|
18
|
|
|
28
|
|
||
Inventory
|
499
|
|
|
504
|
|
||
Regulatory assets (includes $52 at 2019 and 2018 related to VIEs)
|
452
|
|
|
434
|
|
||
Other (includes $31 at 2019 and $39 at 2018 related to VIEs)
|
46
|
|
|
46
|
|
||
Total current assets
|
1,595
|
|
|
1,553
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
19,461
|
|
|
18,792
|
|
||
Accumulated depreciation and amortization
|
(5,073
|
)
|
|
(4,968
|
)
|
||
Net property, plant and equipment
|
14,388
|
|
|
13,824
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Regulatory assets (includes $1,019 at 2019 and $1,041 at 2018 related to VIEs)
|
2,299
|
|
|
2,454
|
|
||
Nuclear decommissioning trust funds
|
729
|
|
|
659
|
|
||
Operating lease right-of-use assets, net
|
432
|
|
|
—
|
|
||
Other
|
311
|
|
|
311
|
|
||
Total other noncurrent assets
|
3,771
|
|
|
3,424
|
|
||
Total Assets
|
$
|
19,754
|
|
|
$
|
18,801
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
403
|
|
|
$
|
511
|
|
Accounts payable to affiliated companies
|
62
|
|
|
91
|
|
||
Notes payable to affiliated companies
|
477
|
|
|
108
|
|
||
Taxes accrued
|
148
|
|
|
74
|
|
||
Interest accrued
|
70
|
|
|
75
|
|
||
Current maturities of long-term debt (includes $54 at 2019 and $53 at 2018 related to VIEs)
|
671
|
|
|
270
|
|
||
Asset retirement obligations
|
3
|
|
|
5
|
|
||
Regulatory liabilities
|
83
|
|
|
102
|
|
||
Other
|
461
|
|
|
406
|
|
||
Total current liabilities
|
2,378
|
|
|
1,642
|
|
||
Long-Term Debt (includes $1,332 at 2019 and $1,336 at 2018 related to VIEs)
|
6,542
|
|
|
7,051
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
2,105
|
|
|
1,986
|
|
||
Asset retirement obligations
|
574
|
|
|
586
|
|
||
Regulatory liabilities
|
1,040
|
|
|
1,094
|
|
||
Operating lease liabilities
|
370
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
248
|
|
|
254
|
|
||
Other
|
104
|
|
|
93
|
|
||
Total other noncurrent liabilities
|
4,441
|
|
|
4,013
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Member's equity
|
6,394
|
|
|
6,097
|
|
||
Accumulated other comprehensive loss
|
(1
|
)
|
|
(2
|
)
|
||
Total equity
|
6,393
|
|
|
6,095
|
|
||
Total Liabilities and Equity
|
$
|
19,754
|
|
|
$
|
18,801
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
297
|
|
|
$
|
271
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion
|
423
|
|
|
374
|
|
||
Equity component of AFUDC
|
(2
|
)
|
|
(26
|
)
|
||
Losses on sales of other assets
|
1
|
|
|
—
|
|
||
Deferred income taxes
|
82
|
|
|
206
|
|
||
Accrued pension and other post-retirement benefit costs
|
5
|
|
|
3
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(20
|
)
|
||
Payments for asset retirement obligations
|
(17
|
)
|
|
(19
|
)
|
||
(Increase) decrease in
|
|
|
|
||||
Net realized and unrealized mark-to-market and hedging transactions
|
2
|
|
|
6
|
|
||
Receivables
|
(101
|
)
|
|
(92
|
)
|
||
Receivables from affiliated companies
|
10
|
|
|
(4
|
)
|
||
Inventory
|
1
|
|
|
28
|
|
||
Other current assets
|
8
|
|
|
(114
|
)
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
27
|
|
|
34
|
|
||
Accounts payable to affiliated companies
|
(29
|
)
|
|
(11
|
)
|
||
Taxes accrued
|
74
|
|
|
81
|
|
||
Other current liabilities
|
(80
|
)
|
|
(21
|
)
|
||
Other assets
|
(81
|
)
|
|
(196
|
)
|
||
Other liabilities
|
(9
|
)
|
|
(10
|
)
|
||
Net cash provided by operating activities
|
611
|
|
|
490
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(873
|
)
|
|
(731
|
)
|
||
Purchases of debt and equity securities
|
(621
|
)
|
|
(239
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
631
|
|
|
264
|
|
||
Notes receivable from affiliated companies
|
—
|
|
|
(110
|
)
|
||
Other
|
(37
|
)
|
|
(35
|
)
|
||
Net cash used in investing activities
|
(900
|
)
|
|
(851
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
25
|
|
|
989
|
|
||
Payments for the redemption of long-term debt
|
(136
|
)
|
|
(635
|
)
|
||
Notes payable to affiliated companies
|
369
|
|
|
—
|
|
||
Other
|
3
|
|
|
(1
|
)
|
||
Net cash provided by financing activities
|
261
|
|
|
353
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(28
|
)
|
|
(8
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
75
|
|
|
53
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
47
|
|
|
$
|
45
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
166
|
|
|
$
|
194
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
||||||||||
|
|
|
Accumulated
|
|
|
||||||
|
|
|
Other
|
|
|
||||||
|
|
|
Comprehensive
|
|
|
||||||
|
|
|
Income (Loss)
|
|
|
||||||
|
|
|
Net Unrealized
|
|
|
|
|||||
|
|
|
Gains (Losses) on
|
|
|
|
|||||
|
Member's
|
|
|
Available-for-Sale
|
|
|
Total
|
|
|||
(in millions)
|
Equity
|
|
|
Securities
|
|
|
Equity
|
|
|||
Balance at March 31, 2018
|
$
|
5,723
|
|
|
$
|
(2
|
)
|
|
$
|
5,721
|
|
Net income
|
168
|
|
|
—
|
|
|
168
|
|
|||
Other comprehensive loss
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Other(a)
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||
Balance at June 30, 2018
|
$
|
5,890
|
|
|
$
|
(2
|
)
|
|
$
|
5,888
|
|
|
|
|
|
|
|
||||||
Balance at March 31, 2019
|
$
|
6,193
|
|
|
$
|
(1
|
)
|
|
$
|
6,192
|
|
Net income
|
201
|
|
|
—
|
|
|
201
|
|
|||
Balance at June 30, 2019
|
$
|
6,394
|
|
|
$
|
(1
|
)
|
|
$
|
6,393
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2018 and 2019
|
||||||||||
|
|
|
Accumulated
|
|
|
||||||
|
|
|
Other
|
|
|
||||||
|
|
|
Comprehensive
|
|
|
||||||
|
|
|
Income (Loss)
|
|
|
||||||
|
|
|
Net Unrealized
|
|
|
|
|||||
|
|
|
Gains (Losses) on
|
|
|
|
|||||
|
Member's
|
|
|
Available-for-Sale
|
|
|
Total
|
|
|||
(in millions)
|
Equity
|
|
|
Securities
|
|
|
Equity
|
|
|||
Balance at December 31, 2017
|
$
|
5,614
|
|
|
$
|
4
|
|
|
$
|
5,618
|
|
Net income
|
271
|
|
|
—
|
|
|
271
|
|
|||
Other comprehensive loss
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Other(a)
|
5
|
|
|
(5
|
)
|
|
—
|
|
|||
Balance at June 30, 2018
|
$
|
5,890
|
|
|
$
|
(2
|
)
|
|
$
|
5,888
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
$
|
6,097
|
|
|
$
|
(2
|
)
|
|
$
|
6,095
|
|
Net income
|
297
|
|
|
—
|
|
|
297
|
|
|||
Other comprehensive income
|
—
|
|
|
1
|
|
|
1
|
|
|||
Balance at June 30, 2019
|
$
|
6,394
|
|
|
$
|
(1
|
)
|
|
$
|
6,393
|
|
(a)
|
Amounts in Member's Equity and Accumulated Other Comprehensive Income (Loss) represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement.
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Regulated electric
|
$
|
336
|
|
|
$
|
346
|
|
|
$
|
691
|
|
|
$
|
682
|
|
Regulated natural gas
|
97
|
|
|
103
|
|
|
273
|
|
|
277
|
|
||||
Nonregulated electric and other
|
—
|
|
|
10
|
|
|
—
|
|
|
24
|
|
||||
Total operating revenues
|
433
|
|
|
459
|
|
|
964
|
|
|
983
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power – regulated
|
86
|
|
|
93
|
|
|
179
|
|
|
185
|
|
||||
Fuel used in electric generation and purchased power – nonregulated
|
—
|
|
|
14
|
|
|
—
|
|
|
29
|
|
||||
Cost of natural gas
|
10
|
|
|
15
|
|
|
64
|
|
|
69
|
|
||||
Operation, maintenance and other
|
123
|
|
|
130
|
|
|
255
|
|
|
261
|
|
||||
Depreciation and amortization
|
66
|
|
|
62
|
|
|
130
|
|
|
132
|
|
||||
Property and other taxes
|
74
|
|
|
68
|
|
|
158
|
|
|
145
|
|
||||
Total operating expenses
|
359
|
|
|
382
|
|
|
786
|
|
|
821
|
|
||||
Losses on Sales of Other Assets and Other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
||||
Operating Income
|
74
|
|
|
77
|
|
|
178
|
|
|
56
|
|
||||
Other Income and Expenses, net
|
6
|
|
|
8
|
|
|
15
|
|
|
14
|
|
||||
Interest Expense
|
24
|
|
|
23
|
|
|
54
|
|
|
45
|
|
||||
Income Before Income Taxes
|
56
|
|
|
62
|
|
|
139
|
|
|
25
|
|
||||
Income Tax Expense
|
9
|
|
|
16
|
|
|
23
|
|
|
4
|
|
||||
Net Income and Comprehensive Income
|
$
|
47
|
|
|
$
|
46
|
|
|
$
|
116
|
|
|
$
|
21
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
8
|
|
|
$
|
21
|
|
Receivables (net of allowance for doubtful accounts of $3 at 2019 and $2 at 2018)
|
80
|
|
|
102
|
|
||
Receivables from affiliated companies
|
50
|
|
|
114
|
|
||
Inventory
|
124
|
|
|
126
|
|
||
Regulatory assets
|
47
|
|
|
33
|
|
||
Other
|
32
|
|
|
24
|
|
||
Total current assets
|
341
|
|
|
420
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
9,776
|
|
|
9,360
|
|
||
Accumulated depreciation and amortization
|
(2,761
|
)
|
|
(2,717
|
)
|
||
Net property, plant and equipment
|
7,015
|
|
|
6,643
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Goodwill
|
920
|
|
|
920
|
|
||
Regulatory assets
|
545
|
|
|
531
|
|
||
Operating lease right-of-use assets, net
|
22
|
|
|
—
|
|
||
Other
|
46
|
|
|
41
|
|
||
Total other noncurrent assets
|
1,533
|
|
|
1,492
|
|
||
Total Assets
|
$
|
8,889
|
|
|
$
|
8,555
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
257
|
|
|
$
|
316
|
|
Accounts payable to affiliated companies
|
78
|
|
|
78
|
|
||
Notes payable to affiliated companies
|
203
|
|
|
274
|
|
||
Taxes accrued
|
135
|
|
|
202
|
|
||
Interest accrued
|
31
|
|
|
22
|
|
||
Current maturities of long-term debt
|
100
|
|
|
551
|
|
||
Asset retirement obligations
|
6
|
|
|
6
|
|
||
Regulatory liabilities
|
67
|
|
|
57
|
|
||
Other
|
76
|
|
|
74
|
|
||
Total current liabilities
|
953
|
|
|
1,580
|
|
||
Long-Term Debt
|
2,384
|
|
|
1,589
|
|
||
Long-Term Debt Payable to Affiliated Companies
|
25
|
|
|
25
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
872
|
|
|
817
|
|
||
Asset retirement obligations
|
83
|
|
|
87
|
|
||
Regulatory liabilities
|
802
|
|
|
840
|
|
||
Operating lease liabilities
|
21
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
94
|
|
|
79
|
|
||
Other
|
94
|
|
|
93
|
|
||
Total other noncurrent liabilities
|
1,966
|
|
|
1,916
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2019 and 2018
|
762
|
|
|
762
|
|
||
Additional paid-in capital
|
2,776
|
|
|
2,776
|
|
||
Retained Earnings (Accumulated deficit)
|
23
|
|
|
(93
|
)
|
||
Total equity
|
3,561
|
|
|
3,445
|
|
||
Total Liabilities and Equity
|
$
|
8,889
|
|
|
$
|
8,555
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
116
|
|
|
$
|
21
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
132
|
|
|
134
|
|
||
Equity component of AFUDC
|
(7
|
)
|
|
(8
|
)
|
||
Losses on sales of other assets
|
—
|
|
|
106
|
|
||
Deferred income taxes
|
45
|
|
|
(2
|
)
|
||
Accrued pension and other post-retirement benefit costs
|
—
|
|
|
2
|
|
||
Payments for asset retirement obligations
|
(5
|
)
|
|
(2
|
)
|
||
Provision for rate refunds
|
3
|
|
|
19
|
|
||
(Increase) decrease in
|
|
|
|
||||
Receivables
|
24
|
|
|
(7
|
)
|
||
Receivables from affiliated companies
|
64
|
|
|
62
|
|
||
Inventory
|
2
|
|
|
9
|
|
||
Other current assets
|
(13
|
)
|
|
24
|
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(44
|
)
|
|
(34
|
)
|
||
Accounts payable to affiliated companies
|
—
|
|
|
(15
|
)
|
||
Taxes accrued
|
(67
|
)
|
|
(63
|
)
|
||
Other current liabilities
|
2
|
|
|
8
|
|
||
Other assets
|
(18
|
)
|
|
(7
|
)
|
||
Other liabilities
|
(15
|
)
|
|
(18
|
)
|
||
Net cash provided by operating activities
|
219
|
|
|
229
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(473
|
)
|
|
(392
|
)
|
||
Notes receivable from affiliated companies
|
—
|
|
|
14
|
|
||
Other
|
(31
|
)
|
|
(43
|
)
|
||
Net cash used in investing activities
|
(504
|
)
|
|
(421
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
794
|
|
|
—
|
|
||
Payments for the redemption of long-term debt
|
(451
|
)
|
|
(3
|
)
|
||
Notes payable to affiliated companies
|
(71
|
)
|
|
190
|
|
||
Net cash provided by financing activities
|
272
|
|
|
187
|
|
||
Net decrease in cash and cash equivalents
|
(13
|
)
|
|
(5
|
)
|
||
Cash and cash equivalents at beginning of period
|
21
|
|
|
12
|
|
||
Cash and cash equivalents at end of period
|
$
|
8
|
|
|
$
|
7
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
93
|
|
|
$
|
70
|
|
Non-cash equity contribution from parent
|
—
|
|
|
106
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
||||||||||||||
|
|
|
Additional
|
|
|
Retained
|
|
|
|
||||||
|
Common
|
|
|
Paid-in
|
|
|
Earnings
|
|
|
Total
|
|
||||
(in millions)
|
Stock
|
|
|
Capital
|
|
|
(Deficit)
|
|
|
Equity
|
|
||||
Balance at March 31, 2018
|
$
|
762
|
|
|
$
|
2,670
|
|
|
$
|
(294
|
)
|
|
$
|
3,138
|
|
Net income
|
—
|
|
|
—
|
|
|
46
|
|
|
46
|
|
||||
Contribution from parent(a)
|
—
|
|
|
106
|
|
|
—
|
|
|
106
|
|
||||
Balance at June 30, 2018
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
(248
|
)
|
|
$
|
3,290
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at March 31, 2019
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
(24
|
)
|
|
$
|
3,514
|
|
Net income
|
—
|
|
|
—
|
|
|
47
|
|
|
47
|
|
||||
Balance at June 30, 2019
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
23
|
|
|
$
|
3,561
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2018 and 2019
|
||||||||||||||
|
|
|
Additional
|
|
|
Retained
|
|
|
|
||||||
|
Common
|
|
|
Paid-in
|
|
|
Earnings
|
|
|
Total
|
|
||||
(in millions)
|
Stock
|
|
|
Capital
|
|
|
(Deficit)
|
|
|
Equity
|
|
||||
Balance at December 31, 2017
|
$
|
762
|
|
|
$
|
2,670
|
|
|
$
|
(269
|
)
|
|
$
|
3,163
|
|
Net income
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
||||
Contribution from parent(a)
|
—
|
|
|
106
|
|
|
—
|
|
|
106
|
|
||||
Balance at June 30, 2018
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
(248
|
)
|
|
$
|
3,290
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2018
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
(93
|
)
|
|
$
|
3,445
|
|
Net income
|
—
|
|
|
—
|
|
|
116
|
|
|
116
|
|
||||
Balance at June 30, 2019
|
$
|
762
|
|
|
$
|
2,776
|
|
|
$
|
23
|
|
|
$
|
3,561
|
|
(a)
|
Represents a non-cash settlement through equity of an intercompany payable from Duke Energy Ohio to its parent.
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
714
|
|
|
$
|
738
|
|
|
$
|
1,482
|
|
|
$
|
1,469
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Fuel used in electric generation and purchased power
|
229
|
|
|
226
|
|
|
486
|
|
|
458
|
|
||||
Operation, maintenance and other
|
188
|
|
|
197
|
|
|
377
|
|
|
378
|
|
||||
Depreciation and amortization
|
132
|
|
|
126
|
|
|
263
|
|
|
256
|
|
||||
Property and other taxes
|
20
|
|
|
20
|
|
|
39
|
|
|
40
|
|
||||
Total operating expenses
|
569
|
|
|
569
|
|
|
1,165
|
|
|
1,132
|
|
||||
Gains on Sales of Other Assets and Other, net
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Operating Income
|
148
|
|
|
169
|
|
|
317
|
|
|
337
|
|
||||
Other Income and Expenses, net
|
8
|
|
|
6
|
|
|
27
|
|
|
13
|
|
||||
Interest Expense
|
28
|
|
|
43
|
|
|
71
|
|
|
83
|
|
||||
Income Before Income Taxes
|
128
|
|
|
132
|
|
|
273
|
|
|
267
|
|
||||
Income Tax Expense
|
31
|
|
|
34
|
|
|
66
|
|
|
69
|
|
||||
Net Income and Comprehensive Income
|
$
|
97
|
|
|
$
|
98
|
|
|
$
|
207
|
|
|
$
|
198
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
12
|
|
|
$
|
24
|
|
Receivables (net of allowance for doubtful accounts of $3 at 2019 and $2 at 2018)
|
49
|
|
|
52
|
|
||
Receivables from affiliated companies
|
83
|
|
|
122
|
|
||
Inventory
|
463
|
|
|
422
|
|
||
Regulatory assets
|
130
|
|
|
175
|
|
||
Other
|
42
|
|
|
35
|
|
||
Total current assets
|
779
|
|
|
830
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
15,831
|
|
|
15,443
|
|
||
Accumulated depreciation and amortization
|
(5,104
|
)
|
|
(4,914
|
)
|
||
Net property, plant and equipment
|
10,727
|
|
|
10,529
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Regulatory assets
|
1,038
|
|
|
982
|
|
||
Operating lease right-of-use assets, net
|
60
|
|
|
—
|
|
||
Other
|
203
|
|
|
194
|
|
||
Total other noncurrent assets
|
1,301
|
|
|
1,176
|
|
||
Total Assets
|
$
|
12,807
|
|
|
$
|
12,535
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
224
|
|
|
$
|
200
|
|
Accounts payable to affiliated companies
|
66
|
|
|
83
|
|
||
Notes payable to affiliated companies
|
165
|
|
|
167
|
|
||
Taxes accrued
|
25
|
|
|
43
|
|
||
Interest accrued
|
59
|
|
|
58
|
|
||
Current maturities of long-term debt
|
3
|
|
|
63
|
|
||
Asset retirement obligations
|
115
|
|
|
109
|
|
||
Regulatory liabilities
|
24
|
|
|
25
|
|
||
Other
|
120
|
|
|
107
|
|
||
Total current liabilities
|
801
|
|
|
855
|
|
||
Long-Term Debt
|
3,570
|
|
|
3,569
|
|
||
Long-Term Debt Payable to Affiliated Companies
|
150
|
|
|
150
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
1,084
|
|
|
1,009
|
|
||
Asset retirement obligations
|
604
|
|
|
613
|
|
||
Regulatory liabilities
|
1,693
|
|
|
1,722
|
|
||
Operating lease liabilities
|
56
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
142
|
|
|
115
|
|
||
Investment tax credits
|
147
|
|
|
147
|
|
||
Other
|
14
|
|
|
16
|
|
||
Total other noncurrent liabilities
|
3,740
|
|
|
3,622
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Member's Equity
|
4,546
|
|
|
4,339
|
|
||
Total Liabilities and Equity
|
$
|
12,807
|
|
|
$
|
12,535
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
207
|
|
|
$
|
198
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion
|
265
|
|
|
258
|
|
||
Equity component of AFUDC
|
(9
|
)
|
|
(7
|
)
|
||
Deferred income taxes
|
60
|
|
|
36
|
|
||
Accrued pension and other post-retirement benefit costs
|
2
|
|
|
3
|
|
||
Contributions to qualified pension plans
|
—
|
|
|
(8
|
)
|
||
Payments for asset retirement obligations
|
(17
|
)
|
|
(21
|
)
|
||
Provision for rate refunds
|
—
|
|
|
49
|
|
||
(Increase) decrease in
|
|
|
|
||||
Receivables
|
5
|
|
|
2
|
|
||
Receivables from affiliated companies
|
39
|
|
|
36
|
|
||
Inventory
|
(41
|
)
|
|
(20
|
)
|
||
Other current assets
|
48
|
|
|
(35
|
)
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
26
|
|
|
33
|
|
||
Accounts payable to affiliated companies
|
(17
|
)
|
|
(19
|
)
|
||
Taxes accrued
|
(18
|
)
|
|
(41
|
)
|
||
Other current liabilities
|
(13
|
)
|
|
3
|
|
||
Other assets
|
(34
|
)
|
|
20
|
|
||
Other liabilities
|
14
|
|
|
(21
|
)
|
||
Net cash provided by operating activities
|
517
|
|
|
466
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(443
|
)
|
|
(416
|
)
|
||
Purchases of debt and equity securities
|
(14
|
)
|
|
(34
|
)
|
||
Proceeds from sales and maturities of debt and equity securities
|
11
|
|
|
13
|
|
||
Other
|
(21
|
)
|
|
2
|
|
||
Net cash used in investing activities
|
(467
|
)
|
|
(435
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Payments for the redemption of long-term debt
|
(60
|
)
|
|
—
|
|
||
Notes payable to affiliated companies
|
(2
|
)
|
|
60
|
|
||
Distributions to parent
|
—
|
|
|
(75
|
)
|
||
Other
|
—
|
|
|
(1
|
)
|
||
Net cash used in financing activities
|
(62
|
)
|
|
(16
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(12
|
)
|
|
15
|
|
||
Cash and cash equivalents at beginning of period
|
24
|
|
|
9
|
|
||
Cash and cash equivalents at end of period
|
$
|
12
|
|
|
$
|
24
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
84
|
|
|
$
|
62
|
|
FINANCIAL STATEMENTS
|
|
|
|
Three Months Ended
|
||
|
|
June 30, 2018 and 2019
|
||
|
|
Member's
|
||
(in millions)
|
|
Equity
|
||
Balance at March 31, 2018
|
|
$
|
4,221
|
|
Net income
|
|
98
|
|
|
Distributions to parent
|
|
(75
|
)
|
|
Balance at June 30, 2018
|
|
$
|
4,244
|
|
|
|
|
||
Balance at March 31, 2019
|
|
$
|
4,449
|
|
Net income
|
|
97
|
|
|
Balance at June 30, 2019
|
|
$
|
4,546
|
|
|
|
|
||
|
|
Six Months Ended
|
||
|
|
June 30, 2018 and 2019
|
||
|
|
Member's
|
||
(in millions)
|
|
Equity
|
||
Balance at December 31, 2017
|
|
$
|
4,121
|
|
Net income
|
|
198
|
|
|
Distributions to parent
|
|
(75
|
)
|
|
Balance at June 30, 2018
|
|
$
|
4,244
|
|
|
|
|
||
Balance at December 31, 2018
|
|
$
|
4,339
|
|
Net income
|
|
207
|
|
|
Balance at June 30, 2019
|
|
$
|
4,546
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Operating Revenues
|
$
|
209
|
|
|
$
|
215
|
|
|
$
|
788
|
|
|
$
|
768
|
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Cost of natural gas
|
65
|
|
|
74
|
|
|
338
|
|
|
333
|
|
||||
Operation, maintenance and other
|
83
|
|
|
85
|
|
|
163
|
|
|
167
|
|
||||
Depreciation and amortization
|
42
|
|
|
39
|
|
|
84
|
|
|
78
|
|
||||
Property and other taxes
|
13
|
|
|
12
|
|
|
25
|
|
|
24
|
|
||||
Total operating expenses
|
203
|
|
|
210
|
|
|
610
|
|
|
602
|
|
||||
Operating Income
|
6
|
|
|
5
|
|
|
178
|
|
|
166
|
|
||||
Other Income and Expenses, net
|
6
|
|
|
4
|
|
|
12
|
|
|
9
|
|
||||
Interest Expense
|
21
|
|
|
20
|
|
|
43
|
|
|
41
|
|
||||
(Loss) Income Before Income Taxes
|
(9
|
)
|
|
(11
|
)
|
|
147
|
|
|
134
|
|
||||
Income Tax (Benefit) Expense
|
(2
|
)
|
|
(3
|
)
|
|
32
|
|
|
32
|
|
||||
Net (Loss) Income and Comprehensive (Loss) Income
|
$
|
(7
|
)
|
|
$
|
(8
|
)
|
|
$
|
115
|
|
|
$
|
102
|
|
FINANCIAL STATEMENTS
|
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Receivables (net of allowance for doubtful accounts of $2 at 2019 and 2018)
|
$
|
100
|
|
|
$
|
266
|
|
Receivables from affiliated companies
|
17
|
|
|
22
|
|
||
Notes receivable from affiliated companies
|
16
|
|
|
—
|
|
||
Inventory
|
33
|
|
|
70
|
|
||
Regulatory assets
|
30
|
|
|
54
|
|
||
Other
|
57
|
|
|
19
|
|
||
Total current assets
|
253
|
|
|
431
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Cost
|
7,966
|
|
|
7,486
|
|
||
Accumulated depreciation and amortization
|
(1,620
|
)
|
|
(1,575
|
)
|
||
Net property, plant and equipment
|
6,346
|
|
|
5,911
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Goodwill
|
49
|
|
|
49
|
|
||
Regulatory assets
|
280
|
|
|
303
|
|
||
Operating lease right-of-use assets, net
|
26
|
|
|
—
|
|
||
Investments in equity method unconsolidated affiliates
|
81
|
|
|
64
|
|
||
Other
|
60
|
|
|
52
|
|
||
Total other noncurrent assets
|
496
|
|
|
468
|
|
||
Total Assets
|
$
|
7,095
|
|
|
$
|
6,810
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
156
|
|
|
$
|
203
|
|
Accounts payable to affiliated companies
|
52
|
|
|
38
|
|
||
Notes payable to affiliated companies
|
—
|
|
|
198
|
|
||
Taxes accrued
|
23
|
|
|
84
|
|
||
Interest accrued
|
33
|
|
|
31
|
|
||
Current maturities of long-term debt
|
—
|
|
|
350
|
|
||
Regulatory liabilities
|
67
|
|
|
37
|
|
||
Other
|
62
|
|
|
58
|
|
||
Total current liabilities
|
393
|
|
|
999
|
|
||
Long-Term Debt
|
2,384
|
|
|
1,788
|
|
||
Other Noncurrent Liabilities
|
|
|
|
||||
Deferred income taxes
|
593
|
|
|
551
|
|
||
Asset retirement obligations
|
19
|
|
|
19
|
|
||
Regulatory liabilities
|
1,174
|
|
|
1,181
|
|
||
Operating lease liabilities
|
25
|
|
|
—
|
|
||
Accrued pension and other post-retirement benefit costs
|
6
|
|
|
4
|
|
||
Other
|
145
|
|
|
177
|
|
||
Total other noncurrent liabilities
|
1,962
|
|
|
1,932
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Common stock, no par value: 100 shares authorized and outstanding at 2019 and 2018
|
1,310
|
|
|
1,160
|
|
||
Retained earnings
|
1,046
|
|
|
931
|
|
||
Total equity
|
2,356
|
|
|
2,091
|
|
||
Total Liabilities and Equity
|
$
|
7,095
|
|
|
$
|
6,810
|
|
FINANCIAL STATEMENTS
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
115
|
|
|
$
|
102
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
85
|
|
|
79
|
|
||
Deferred income taxes
|
40
|
|
|
4
|
|
||
Equity in earnings from unconsolidated affiliates
|
(4
|
)
|
|
(3
|
)
|
||
Accrued pension and other post-retirement benefit costs
|
(5
|
)
|
|
(2
|
)
|
||
Provision for rate refunds
|
9
|
|
|
27
|
|
||
(Increase) decrease in
|
|
|
|
||||
Receivables
|
168
|
|
|
166
|
|
||
Receivables from affiliated companies
|
5
|
|
|
(4
|
)
|
||
Inventory
|
37
|
|
|
28
|
|
||
Other current assets
|
(17
|
)
|
|
74
|
|
||
Increase (decrease) in
|
|
|
|
||||
Accounts payable
|
(70
|
)
|
|
(32
|
)
|
||
Accounts payable to affiliated companies
|
14
|
|
|
(12
|
)
|
||
Taxes accrued
|
(61
|
)
|
|
4
|
|
||
Other current liabilities
|
10
|
|
|
28
|
|
||
Other assets
|
(5
|
)
|
|
2
|
|
||
Other liabilities
|
(1
|
)
|
|
(2
|
)
|
||
Net cash provided by operating activities
|
320
|
|
|
459
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(480
|
)
|
|
(327
|
)
|
||
Contributions to equity method investments
|
(16
|
)
|
|
—
|
|
||
Notes receivable from affiliated companies
|
(16
|
)
|
|
(77
|
)
|
||
Other
|
(6
|
)
|
|
(2
|
)
|
||
Net cash used in investing activities
|
(518
|
)
|
|
(406
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
596
|
|
|
—
|
|
||
Payments for the redemption of long-term debt
|
(350
|
)
|
|
—
|
|
||
Notes payable to affiliated companies
|
(198
|
)
|
|
(364
|
)
|
||
Capital contributions from parent
|
150
|
|
|
300
|
|
||
Net cash provided by (used in) financing activities
|
198
|
|
|
(64
|
)
|
||
Net decrease in cash and cash equivalents
|
—
|
|
|
(11
|
)
|
||
Cash and cash equivalents at beginning of period
|
—
|
|
|
19
|
|
||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
8
|
|
Supplemental Disclosures:
|
|
|
|
||||
Significant non-cash transactions:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
115
|
|
|
$
|
73
|
|
FINANCIAL STATEMENTS
|
|
|
Three Months Ended June 30, 2018 and 2019
|
||||||||||
|
Common
|
|
|
Retained
|
|
|
Total
|
|
|||
(in millions)
|
Stock
|
|
|
Earnings
|
|
|
Equity
|
|
|||
Balance at March 31, 2018
|
$
|
860
|
|
|
$
|
912
|
|
|
$
|
1,772
|
|
Net loss
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|||
Contribution from parent
|
300
|
|
|
—
|
|
|
300
|
|
|||
Balance at June 30, 2018
|
$
|
1,160
|
|
|
$
|
904
|
|
|
$
|
2,064
|
|
|
|
|
|
|
|
||||||
Balance at March 31, 2019
|
$
|
1,160
|
|
|
$
|
1,053
|
|
|
$
|
2,213
|
|
Net loss
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||
Contribution from parent
|
150
|
|
|
—
|
|
|
150
|
|
|||
Balance at June 30, 2019
|
$
|
1,310
|
|
|
$
|
1,046
|
|
|
$
|
2,356
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2018 and 2019
|
||||||||||
|
Common
|
|
|
Retained
|
|
|
Total
|
|
|||
(in millions)
|
Stock
|
|
|
Earnings
|
|
|
Equity
|
|
|||
Balance at December 31, 2017
|
$
|
860
|
|
|
$
|
802
|
|
|
$
|
1,662
|
|
Net income
|
—
|
|
|
102
|
|
|
102
|
|
|||
Contribution from parent
|
300
|
|
|
—
|
|
|
300
|
|
|||
Balance at June 30, 2018
|
$
|
1,160
|
|
|
$
|
904
|
|
|
$
|
2,064
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
$
|
1,160
|
|
|
$
|
931
|
|
|
$
|
2,091
|
|
Net income
|
—
|
|
|
115
|
|
|
115
|
|
|||
Contribution from parent
|
150
|
|
|
—
|
|
|
150
|
|
|||
Balance at June 30, 2019
|
$
|
1,310
|
|
|
$
|
1,046
|
|
|
$
|
2,356
|
|
FINANCIAL STATEMENTS
|
ORGANIZATION AND BASIS OF PRESENTATION
|
|
Applicable Notes
|
||||||||||||||||||||||||||||||||||
Registrant
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
|
10
|
|
11
|
|
12
|
|
13
|
|
14
|
|
15
|
|
16
|
|
17
|
|
18
|
Duke Energy
|
•
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•
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•
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•
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•
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•
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•
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Duke Energy Carolinas
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•
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•
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Progress Energy
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Duke Energy Progress
|
•
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Duke Energy Florida
|
•
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•
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•
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•
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•
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Duke Energy Ohio
|
•
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•
|
Duke Energy Indiana
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
|
|
•
|
|
•
|
|
•
|
Piedmont
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
•
|
|
|
|
•
|
|
|
|
•
|
|
|
|
•
|
|
•
|
|
•
|
FINANCIAL STATEMENTS
|
ORGANIZATION AND BASIS OF PRESENTATION
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
||||||||||
|
Duke
|
|
Progress
|
|
Energy
|
|
|
Duke
|
|
Progress
|
|
Energy
|
|
||||||
|
Energy
|
|
Energy
|
|
Florida
|
|
|
Energy
|
|
Energy
|
|
Florida
|
|
||||||
Current Assets
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
336
|
|
$
|
51
|
|
$
|
16
|
|
|
$
|
442
|
|
$
|
67
|
|
$
|
36
|
|
Other
|
106
|
|
31
|
|
31
|
|
|
141
|
|
39
|
|
39
|
|
||||||
Other Noncurrent Assets
|
|
|
|
|
|
|
|
||||||||||||
Other
|
39
|
|
38
|
|
—
|
|
|
8
|
|
6
|
|
—
|
|
||||||
Total cash, cash equivalents and restricted cash
|
$
|
481
|
|
$
|
120
|
|
$
|
47
|
|
|
$
|
591
|
|
$
|
112
|
|
$
|
75
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Materials and supplies
|
$
|
2,252
|
|
|
$
|
749
|
|
|
$
|
1,036
|
|
|
$
|
709
|
|
|
$
|
327
|
|
|
$
|
76
|
|
|
$
|
323
|
|
|
$
|
3
|
|
Coal
|
624
|
|
|
235
|
|
|
234
|
|
|
160
|
|
|
74
|
|
|
17
|
|
|
139
|
|
|
—
|
|
||||||||
Natural gas, oil and other fuel
|
313
|
|
|
41
|
|
|
210
|
|
|
111
|
|
|
98
|
|
|
31
|
|
|
1
|
|
|
30
|
|
||||||||
Total inventory
|
$
|
3,189
|
|
|
$
|
1,025
|
|
|
$
|
1,480
|
|
|
$
|
980
|
|
|
$
|
499
|
|
|
$
|
124
|
|
|
$
|
463
|
|
|
$
|
33
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Materials and supplies
|
$
|
2,238
|
|
|
$
|
731
|
|
|
$
|
1,049
|
|
|
$
|
734
|
|
|
$
|
315
|
|
|
$
|
84
|
|
|
$
|
312
|
|
|
$
|
2
|
|
Coal
|
491
|
|
|
175
|
|
|
192
|
|
|
106
|
|
|
86
|
|
|
14
|
|
|
109
|
|
|
—
|
|
||||||||
Natural gas, oil and other fuel
|
355
|
|
|
42
|
|
|
218
|
|
|
114
|
|
|
103
|
|
|
28
|
|
|
1
|
|
|
68
|
|
||||||||
Total inventory
|
$
|
3,084
|
|
|
$
|
948
|
|
|
$
|
1,459
|
|
|
$
|
954
|
|
|
$
|
504
|
|
|
$
|
126
|
|
|
$
|
422
|
|
|
$
|
70
|
|
FINANCIAL STATEMENTS
|
ORGANIZATION AND BASIS OF PRESENTATION
|
Practical Expedient
|
Description
|
Package of transition practical expedients (for leases commenced prior to adoption date and must be adopted as a package)
|
Do not need to 1) reassess whether any expired or existing contracts are/or contain leases, 2) reassess the lease classification for any expired or existing leases and 3) reassess initial direct costs for any existing leases.
|
Short-term lease expedient (elect by class of underlying asset)
|
Elect as an accounting policy to not apply the recognition requirements to short-term leases by asset class.
|
Lease and non-lease components (elect by class of underlying asset)
|
Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component by asset class.
|
Hindsight expedient (when determining lease term)
|
Elect to use hindsight to determine the lease term.
|
Existing and expired land easements not previously accounted for as leases
|
Elect to not evaluate existing or expired easements under the new guidance and carry forward current accounting treatment.
|
Comparative reporting requirements for initial adoption
|
Elect to apply transition requirements at adoption date, recognize cumulative effect adjustment to retained earnings in period of adoption and not apply the new requirements to comparative periods, including disclosures.
|
Lessor expedient (elect by class of underlying asset)
|
Elect as an accounting policy to aggregate non-lease components with the related lease component when specified conditions are met by asset class. Account for the combined component based on its predominant characteristic (revenue or operating lease).
|
FINANCIAL STATEMENTS
|
BUSINESS SEGMENTS
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|||||||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Commercial
|
|
|
Reportable
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Renewables
|
|
|
Segments
|
|
|
Other
|
|
|
Eliminations
|
|
|
Total
|
|
|||||||
Unaffiliated revenues
|
$
|
5,467
|
|
|
$
|
282
|
|
|
$
|
118
|
|
|
$
|
5,867
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
5,873
|
|
Intersegment revenues
|
8
|
|
|
24
|
|
|
—
|
|
|
32
|
|
|
19
|
|
|
(51
|
)
|
|
—
|
|
|||||||
Total revenues
|
$
|
5,475
|
|
|
$
|
306
|
|
|
$
|
118
|
|
|
$
|
5,899
|
|
|
$
|
25
|
|
|
$
|
(51
|
)
|
|
$
|
5,873
|
|
Segment income (loss)
|
$
|
809
|
|
|
$
|
40
|
|
|
$
|
86
|
|
|
$
|
935
|
|
|
$
|
(115
|
)
|
|
$
|
—
|
|
|
$
|
820
|
|
Add back noncontrolling interests(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
(84
|
)
|
|||||||||||||
Add back preferred stock dividend
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
748
|
|
||||||||||||
Segment assets
|
$
|
131,640
|
|
|
$
|
12,943
|
|
|
$
|
4,870
|
|
|
$
|
149,453
|
|
|
$
|
3,815
|
|
|
$
|
181
|
|
|
$
|
153,449
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|||||||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Commercial
|
|
|
Reportable
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Renewables
|
|
|
Segments
|
|
|
Other
|
|
|
Eliminations
|
|
|
Total
|
|
|||||||
Unaffiliated revenues
|
$
|
5,215
|
|
|
$
|
294
|
|
|
$
|
119
|
|
|
$
|
5,628
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
5,643
|
|
Intersegment revenues
|
8
|
|
|
24
|
|
|
—
|
|
|
32
|
|
|
17
|
|
|
(49
|
)
|
|
—
|
|
|||||||
Total revenues
|
$
|
5,223
|
|
|
$
|
318
|
|
|
$
|
119
|
|
|
$
|
5,660
|
|
|
$
|
32
|
|
|
$
|
(49
|
)
|
|
$
|
5,643
|
|
Segment income (loss)(b)(c)
|
$
|
575
|
|
|
$
|
28
|
|
|
$
|
38
|
|
|
$
|
641
|
|
|
$
|
(136
|
)
|
|
$
|
—
|
|
|
$
|
505
|
|
Add back noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|||||||||||||
Loss from discontinued operations, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
502
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|||||||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Commercial
|
|
|
Reportable
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Renewables
|
|
|
Segments
|
|
|
Other
|
|
|
Eliminations
|
|
|
Total
|
|
|||||||
Unaffiliated revenues
|
$
|
10,788
|
|
|
$
|
1,014
|
|
|
$
|
224
|
|
|
$
|
12,026
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
12,036
|
|
Intersegment revenues
|
16
|
|
|
48
|
|
|
—
|
|
|
64
|
|
|
36
|
|
|
(100
|
)
|
|
—
|
|
|||||||
Total revenues
|
$
|
10,804
|
|
|
$
|
1,062
|
|
|
$
|
224
|
|
|
$
|
12,090
|
|
|
$
|
46
|
|
|
$
|
(100
|
)
|
|
$
|
12,036
|
|
Segment income (loss)
|
$
|
1,559
|
|
|
$
|
266
|
|
|
$
|
99
|
|
|
$
|
1,924
|
|
|
$
|
(204
|
)
|
|
$
|
—
|
|
|
$
|
1,720
|
|
Add back noncontrolling interests(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
(91
|
)
|
|||||||||||||
Add back preferred stock dividend
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,641
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|||||||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Commercial
|
|
|
Reportable
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Renewables
|
|
|
Segments
|
|
|
Other
|
|
|
Eliminations
|
|
|
Total
|
|
|||||||
Unaffiliated revenues
|
$
|
10,530
|
|
|
$
|
997
|
|
|
$
|
220
|
|
|
$
|
11,747
|
|
|
$
|
31
|
|
|
$
|
—
|
|
|
$
|
11,778
|
|
Intersegment revenues
|
16
|
|
|
48
|
|
|
—
|
|
|
64
|
|
|
36
|
|
|
(100
|
)
|
|
—
|
|
|||||||
Total revenues
|
$
|
10,546
|
|
|
$
|
1,045
|
|
|
$
|
220
|
|
|
$
|
11,811
|
|
|
$
|
67
|
|
|
$
|
(100
|
)
|
|
$
|
11,778
|
|
Segment income (loss)(b)(c)(d)(e)
|
$
|
1,325
|
|
|
$
|
144
|
|
|
$
|
58
|
|
|
$
|
1,527
|
|
|
$
|
(402
|
)
|
|
$
|
—
|
|
|
$
|
1,125
|
|
Add back noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|||||||||||||
Loss from discontinued operations, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,124
|
|
FINANCIAL STATEMENTS
|
BUSINESS SEGMENTS
|
(a)
|
Includes the allocation of losses to noncontrolling tax equity members. See Note 1 for additional information.
|
(b)
|
Electric Utilities and Infrastructure includes regulatory and legislative impairment charges related to rate case orders, settlements or other actions of regulators or legislative bodies. See Note 3 for additional information.
|
(c)
|
Other includes costs to achieve the Piedmont acquisition.
|
(d)
|
Gas Utilities and Infrastructure includes an impairment of the investment in Constitution. See Note 3 for additional information.
|
(e)
|
Other includes the loss on the sale of Beckjord described below and a valuation allowance recorded against the AMT credits.
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
Total
|
|
|
|
|
|
|||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Reportable
|
|
|
|
|
|
|||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Segments
|
|
|
Other
|
|
|
Total
|
|
|||||
Total revenues
|
$
|
336
|
|
|
$
|
97
|
|
|
$
|
433
|
|
|
$
|
—
|
|
|
$
|
433
|
|
Segment income/Net (loss) income
|
$
|
31
|
|
|
$
|
17
|
|
|
$
|
48
|
|
|
$
|
(1
|
)
|
|
$
|
47
|
|
Segment assets
|
$
|
5,914
|
|
|
$
|
2,948
|
|
|
$
|
8,862
|
|
|
$
|
27
|
|
|
$
|
8,889
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
Total
|
|
|
|
|
|
|||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Reportable
|
|
|
|
|
|
|||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Segments
|
|
|
Other
|
|
|
Total
|
|
|||||
Total revenues
|
$
|
346
|
|
|
$
|
103
|
|
|
$
|
449
|
|
|
$
|
10
|
|
|
$
|
459
|
|
Segment income/Net (loss) income
|
$
|
39
|
|
|
$
|
18
|
|
|
$
|
57
|
|
|
$
|
(11
|
)
|
|
$
|
46
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
Total
|
|
|
|
|
|
|||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Reportable
|
|
|
|
|
|
|||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Segments
|
|
|
Other
|
|
|
Total
|
|
|||||
Total revenues
|
$
|
691
|
|
|
$
|
273
|
|
|
$
|
964
|
|
|
$
|
—
|
|
|
$
|
964
|
|
Segment income/Net (loss) income
|
$
|
67
|
|
|
$
|
52
|
|
|
$
|
119
|
|
|
$
|
(3
|
)
|
|
$
|
116
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Electric
|
|
|
Gas
|
|
|
Total
|
|
|
|
|
|
|||||||
|
Utilities and
|
|
|
Utilities and
|
|
|
Reportable
|
|
|
|
|
|
|||||||
(in millions)
|
Infrastructure
|
|
|
Infrastructure
|
|
|
Segments
|
|
|
Other
|
|
|
Total
|
|
|||||
Total revenues
|
$
|
682
|
|
|
$
|
277
|
|
|
$
|
959
|
|
|
$
|
24
|
|
|
$
|
983
|
|
Segment income/Net (loss) income(a)
|
$
|
72
|
|
|
$
|
52
|
|
|
$
|
124
|
|
|
$
|
(103
|
)
|
|
$
|
21
|
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
•
|
Approval of cancellation of the Lee Nuclear Project, with Duke Energy Carolinas maintaining the Combined Operating License;
|
•
|
Approval of recovery of $125 million (South Carolina retail portion) of Lee Nuclear Project development costs (including AFUDC through December 2017) over a 12-year period, but denial of a return on the deferred balance of costs;
|
•
|
Approval of recovery of $96 million of coal ash costs over a five-year period with a return at Duke Energy Carolinas' WACC;
|
•
|
Denial of recovery of $115 million of certain coal ash costs deemed to be related to the Coal Ash Act and incremental to the federal CCR rule;
|
•
|
Approval of a $66 million decrease to base rates to reflect the change in ongoing tax expense, primarily the reduction in the federal income tax rate from 35 to 21 percent;
|
•
|
Approval of a $45 million decrease through the EDIT Rider to return EDIT resulting from the federal tax rate change and deferred revenues since January 2018 related to the change, to be returned in accordance with the Average Rate Assumption Method (ARAM) for protected EDIT, over a 20-year period for unprotected EDIT associated with Property, Plant and Equipment, over a five-year period for unprotected EDIT not associated with Property, Plant and Equipment and over a five-year period for the deferred revenues; and
|
•
|
Approval of a $17 million decrease through the EDIT Rider related to reductions in the North Carolina state income tax rate from 6.9 to 2.5 percent to be returned over a five-year period.
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
•
|
Approval of recovery of $4 million of coal ash costs over a five-year period with a return at Duke Energy Progress' WACC;
|
•
|
Denial of recovery of $65 million of certain coal ash costs deemed to be related to the Coal Ash Act and incremental to the federal CCR rule;
|
•
|
Approval of a $17 million decrease to base rates to reflect the change in ongoing tax expense, primarily the reduction in the federal income tax rate from 35 to 21 percent;
|
•
|
Approval of a $12 million decrease through the EDIT Tax Savings Rider resulting from the federal tax rate change and deferred revenues since January 2018 related to the change, to be returned in accordance with ARAM for protected EDIT, over a 20-year period for unprotected EDIT associated with Property, Plant and Equipment, over a five-year period for unprotected EDIT not associated with Property, Plant and Equipment and over a three-year period for the deferred revenues; and
|
•
|
Approval of a $12 million increase due to the expiration of EDIT related to reductions in the North Carolina state income tax rate from 6.9 to 2.5 percent.
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
FINANCIAL STATEMENTS
|
REGULATORY MATTERS
|
|
|
|
Remaining Net
|
|
||
|
Capacity
|
|
|
Book Value
|
|
|
|
(in MW)
|
|
|
(in millions)
|
|
|
Duke Energy Carolinas
|
|
|
|
|||
Allen Steam Station Units 1-3(a)
|
585
|
|
|
156
|
|
|
Duke Energy Indiana
|
|
|
|
|||
Gallagher Units 2 and 4(b)
|
280
|
|
|
118
|
|
|
Gibson Units 1-5(c)
|
3,132
|
|
|
1,960
|
|
|
Cayuga Units 1-2(c)
|
1,005
|
|
|
983
|
|
|
Total Duke Energy
|
5,002
|
|
|
$
|
3,217
|
|
(a)
|
Duke Energy Carolinas will retire Allen Steam Station Units 1 through 3 by December 31, 2024, as part of the resolution of a lawsuit involving alleged New Source Review violations.
|
(b)
|
Duke Energy Indiana committed to either retire or stop burning coal at Gallagher Units 2 and 4 by December 31, 2022, as part of the 2016 settlement of Edwardsport IGCC matters.
|
(c)
|
On July 1, 2019, Duke Energy Indiana filed its 2018 IRP with the IURC. The 2018 IRP included scenarios evaluating the potential retirement of coal-fired generating units at Gibson and Cayuga. The rate case filed July 2, 2019, includes proposed depreciation rates reflecting retirement dates from 2026 to 2038.
|
FINANCIAL STATEMENTS
|
COMMITMENTS AND CONTINGENCIES
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Balance at beginning of period
|
$
|
77
|
|
|
$
|
11
|
|
|
$
|
11
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
48
|
|
|
$
|
5
|
|
|
$
|
2
|
|
Provisions/adjustments
|
9
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||||
Cash reductions
|
(22
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
||||||||
Balance at end of period
|
$
|
64
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
32
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Balance at beginning of period
|
$
|
81
|
|
|
$
|
10
|
|
|
$
|
15
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
47
|
|
|
$
|
5
|
|
|
$
|
2
|
|
Provisions/adjustments
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
(1
|
)
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
||||||||
Cash reductions
|
(14
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
—
|
|
||||||||
Balance at end of period
|
$
|
68
|
|
|
$
|
11
|
|
|
$
|
15
|
|
|
$
|
4
|
|
|
$
|
10
|
|
|
$
|
35
|
|
|
$
|
5
|
|
|
$
|
2
|
|
FINANCIAL STATEMENTS
|
COMMITMENTS AND CONTINGENCIES
|
FINANCIAL STATEMENTS
|
COMMITMENTS AND CONTINGENCIES
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
Reserves for Legal Matters
|
|
|
|
||||
Duke Energy
|
$
|
64
|
|
|
$
|
65
|
|
Duke Energy Carolinas
|
7
|
|
|
9
|
|
||
Progress Energy
|
55
|
|
|
54
|
|
||
Duke Energy Progress
|
14
|
|
|
12
|
|
||
Duke Energy Florida
|
24
|
|
|
24
|
|
||
Piedmont
|
1
|
|
|
1
|
|
FINANCIAL STATEMENTS
|
LEASES
|
|
As of January 1, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
ROU assets
|
$
|
1,750
|
|
|
$
|
153
|
|
|
$
|
863
|
|
|
$
|
407
|
|
|
$
|
456
|
|
|
$
|
23
|
|
|
$
|
61
|
|
|
$
|
26
|
|
Operating lease liabilities – current
|
205
|
|
|
28
|
|
|
96
|
|
|
35
|
|
|
61
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||||||
Operating lease liabilities – noncurrent
|
1,504
|
|
|
127
|
|
|
766
|
|
|
371
|
|
|
395
|
|
|
22
|
|
|
58
|
|
|
25
|
|
FINANCIAL STATEMENTS
|
LEASES
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Operating lease expense(a)
|
$
|
73
|
|
|
$
|
11
|
|
|
$
|
40
|
|
|
$
|
17
|
|
|
$
|
23
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
2
|
|
Short-term lease expense(a)
|
6
|
|
|
2
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Variable lease expense(a)
|
10
|
|
|
4
|
|
|
5
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Finance lease expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of leased assets(b)
|
29
|
|
|
1
|
|
|
5
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Interest on lease liabilities(c)
|
20
|
|
|
3
|
|
|
13
|
|
|
10
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||||
Total finance lease expense
|
49
|
|
|
4
|
|
|
18
|
|
|
11
|
|
|
7
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||||
Total lease expense
|
$
|
138
|
|
|
$
|
21
|
|
|
$
|
67
|
|
|
$
|
32
|
|
|
$
|
35
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Operating lease expense(a)
|
$
|
145
|
|
|
$
|
23
|
|
|
$
|
82
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
3
|
|
Short-term lease expense(a)
|
13
|
|
|
4
|
|
|
7
|
|
|
3
|
|
|
4
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||||
Variable lease expense(a)
|
21
|
|
|
12
|
|
|
7
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Finance lease expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of leased assets(b)
|
56
|
|
|
2
|
|
|
8
|
|
|
2
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Interest on lease liabilities(c)
|
37
|
|
|
7
|
|
|
19
|
|
|
14
|
|
|
5
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||||
Total finance lease expense
|
93
|
|
|
9
|
|
|
27
|
|
|
16
|
|
|
11
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||||
Total lease expense
|
$
|
272
|
|
|
$
|
48
|
|
|
$
|
123
|
|
|
$
|
58
|
|
|
$
|
65
|
|
|
$
|
8
|
|
|
$
|
12
|
|
|
$
|
3
|
|
(a)
|
Included in Operations, maintenance and other or, for barges and railcars, Fuel used in electric generation and purchased power on the Condensed Consolidated Statements of Operations.
|
(b)
|
Included in Depreciation and amortization on the Condensed Consolidated Statements of Operations.
|
(c)
|
Included in Interest Expense on the Condensed Consolidated Statements of Operations.
|
(in millions)
|
Year Ended December 31, 2018
|
||
Duke Energy
|
$
|
268
|
|
Duke Energy Carolinas
|
49
|
|
|
Progress Energy
|
143
|
|
|
Duke Energy Progress
|
75
|
|
|
Duke Energy Florida
|
68
|
|
|
Duke Energy Ohio
|
13
|
|
|
Duke Energy Indiana
|
21
|
|
|
Piedmont
|
11
|
|
FINANCIAL STATEMENTS
|
LEASES
|
|
Twelve Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
2020
|
$
|
279
|
|
|
$
|
33
|
|
|
$
|
129
|
|
|
$
|
51
|
|
|
$
|
78
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
5
|
|
2021
|
239
|
|
|
28
|
|
|
112
|
|
|
52
|
|
|
60
|
|
|
2
|
|
|
5
|
|
|
5
|
|
||||||||
2022
|
199
|
|
|
19
|
|
|
94
|
|
|
40
|
|
|
54
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||||||
2023
|
190
|
|
|
18
|
|
|
95
|
|
|
40
|
|
|
55
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||||||
2024
|
178
|
|
|
15
|
|
|
96
|
|
|
41
|
|
|
55
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||||||
Thereafter
|
1,055
|
|
|
61
|
|
|
513
|
|
|
306
|
|
|
207
|
|
|
22
|
|
|
65
|
|
|
7
|
|
||||||||
Total operating lease payments
|
2,140
|
|
|
174
|
|
|
1,039
|
|
|
530
|
|
|
509
|
|
|
32
|
|
|
88
|
|
|
32
|
|
||||||||
Less: present value discount
|
(425
|
)
|
|
(30
|
)
|
|
(192
|
)
|
|
(117
|
)
|
|
(75
|
)
|
|
(10
|
)
|
|
(28
|
)
|
|
(3
|
)
|
||||||||
Total operating lease liabilities(a)
|
$
|
1,715
|
|
|
$
|
144
|
|
|
$
|
847
|
|
|
$
|
413
|
|
|
$
|
434
|
|
|
$
|
22
|
|
|
$
|
60
|
|
|
$
|
29
|
|
(a)
|
Certain operating lease payments include renewal options that are reasonably certain to be exercised.
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
2019
|
$
|
239
|
|
|
$
|
33
|
|
|
$
|
97
|
|
|
$
|
49
|
|
|
$
|
48
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
5
|
|
2020
|
219
|
|
|
29
|
|
|
90
|
|
|
46
|
|
|
44
|
|
|
2
|
|
|
5
|
|
|
5
|
|
||||||||
2021
|
186
|
|
|
19
|
|
|
79
|
|
|
37
|
|
|
42
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||||||
2022
|
170
|
|
|
19
|
|
|
76
|
|
|
34
|
|
|
42
|
|
|
2
|
|
|
4
|
|
|
5
|
|
||||||||
2023
|
160
|
|
|
17
|
|
|
77
|
|
|
35
|
|
|
42
|
|
|
2
|
|
|
5
|
|
|
6
|
|
||||||||
Thereafter
|
1,017
|
|
|
68
|
|
|
455
|
|
|
314
|
|
|
141
|
|
|
23
|
|
|
66
|
|
|
11
|
|
||||||||
Total
|
$
|
1,991
|
|
|
$
|
185
|
|
|
$
|
874
|
|
|
$
|
515
|
|
|
$
|
359
|
|
|
$
|
33
|
|
|
$
|
90
|
|
|
$
|
37
|
|
|
Twelve Months Ended June 30,
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Indiana
|
|
||||||
2020
|
$
|
177
|
|
|
$
|
19
|
|
|
$
|
69
|
|
|
$
|
44
|
|
|
$
|
25
|
|
|
$
|
1
|
|
2021
|
183
|
|
|
17
|
|
|
69
|
|
|
44
|
|
|
25
|
|
|
1
|
|
||||||
2022
|
180
|
|
|
14
|
|
|
69
|
|
|
44
|
|
|
25
|
|
|
1
|
|
||||||
2023
|
171
|
|
|
14
|
|
|
69
|
|
|
44
|
|
|
25
|
|
|
1
|
|
||||||
2024
|
172
|
|
|
14
|
|
|
64
|
|
|
44
|
|
|
20
|
|
|
1
|
|
||||||
Thereafter
|
847
|
|
|
191
|
|
|
560
|
|
|
547
|
|
|
13
|
|
|
28
|
|
||||||
Total finance lease payments
|
1,730
|
|
|
269
|
|
|
900
|
|
|
767
|
|
|
133
|
|
|
33
|
|
||||||
Less: amounts representing interest
|
(708
|
)
|
|
(162
|
)
|
|
(483
|
)
|
|
(457
|
)
|
|
(26
|
)
|
|
(23
|
)
|
||||||
Total finance lease liabilities
|
$
|
1,022
|
|
|
$
|
107
|
|
|
$
|
417
|
|
|
$
|
310
|
|
|
$
|
107
|
|
|
$
|
10
|
|
FINANCIAL STATEMENTS
|
LEASES
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|||||||
2019
|
$
|
170
|
|
|
$
|
20
|
|
|
$
|
45
|
|
|
$
|
20
|
|
|
$
|
25
|
|
|
$
|
2
|
|
|
$
|
1
|
|
2020
|
174
|
|
|
20
|
|
|
46
|
|
|
21
|
|
|
25
|
|
|
—
|
|
|
1
|
|
|||||||
2021
|
177
|
|
|
15
|
|
|
45
|
|
|
20
|
|
|
25
|
|
|
—
|
|
|
1
|
|
|||||||
2022
|
165
|
|
|
15
|
|
|
45
|
|
|
21
|
|
|
24
|
|
|
—
|
|
|
1
|
|
|||||||
2023
|
165
|
|
|
15
|
|
|
45
|
|
|
21
|
|
|
24
|
|
|
—
|
|
|
1
|
|
|||||||
Thereafter
|
577
|
|
|
204
|
|
|
230
|
|
|
209
|
|
|
21
|
|
|
—
|
|
|
27
|
|
|||||||
Minimum annual payments
|
1,428
|
|
|
289
|
|
|
456
|
|
|
312
|
|
|
144
|
|
|
2
|
|
|
32
|
|
|||||||
Less: amount representing interest
|
(487
|
)
|
|
(180
|
)
|
|
(205
|
)
|
|
(175
|
)
|
|
(30
|
)
|
|
—
|
|
|
(22
|
)
|
|||||||
Total
|
$
|
941
|
|
|
$
|
109
|
|
|
$
|
251
|
|
|
$
|
137
|
|
|
$
|
114
|
|
|
$
|
2
|
|
|
$
|
10
|
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Classification
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating
|
Operating lease ROU assets, net
|
$
|
1,735
|
|
|
$
|
141
|
|
|
$
|
839
|
|
|
$
|
407
|
|
|
$
|
432
|
|
|
$
|
22
|
|
|
$
|
60
|
|
|
$
|
26
|
|
Finance
|
Net property, plant and equipment
|
1,013
|
|
|
122
|
|
|
423
|
|
|
309
|
|
|
114
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||||
Total lease assets
|
|
$
|
2,748
|
|
|
$
|
263
|
|
|
$
|
1,262
|
|
|
$
|
716
|
|
|
$
|
546
|
|
|
$
|
22
|
|
|
$
|
70
|
|
|
$
|
26
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating
|
Other current liabilities
|
$
|
213
|
|
|
$
|
27
|
|
|
$
|
100
|
|
|
$
|
36
|
|
|
$
|
64
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Finance
|
Current maturities of long-term debt
|
115
|
|
|
6
|
|
|
23
|
|
|
6
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating
|
Operating lease liabilities
|
1,502
|
|
|
117
|
|
|
747
|
|
|
377
|
|
|
370
|
|
|
21
|
|
|
56
|
|
|
25
|
|
||||||||
Finance
|
Long-Term Debt
|
907
|
|
|
101
|
|
|
394
|
|
|
304
|
|
|
90
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||||||
Total lease liabilities
|
|
$
|
2,737
|
|
|
$
|
251
|
|
|
$
|
1,264
|
|
|
$
|
723
|
|
|
$
|
541
|
|
|
$
|
22
|
|
|
$
|
70
|
|
|
$
|
29
|
|
FINANCIAL STATEMENTS
|
LEASES
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Cash paid for amounts included in the measurement of lease liabilities(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating cash flows from operating leases
|
$
|
136
|
|
|
$
|
15
|
|
|
$
|
60
|
|
|
$
|
23
|
|
|
$
|
37
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
5
|
|
Operating cash flows from finance leases
|
37
|
|
|
7
|
|
|
19
|
|
|
14
|
|
|
5
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||||
Financing cash flows from finance leases
|
56
|
|
|
2
|
|
|
8
|
|
|
2
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Lease assets obtained in exchange for new lease liabilities (non-cash)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operating(b)
|
$
|
78
|
|
|
$
|
2
|
|
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Finance
|
175
|
|
|
—
|
|
|
175
|
|
|
175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
No amounts were classified as investing cash flows from operating leases for the six months ended June 30, 2019.
|
(b)
|
Does not include ROU assets recorded as a result of the adoption of the new lease standard.
|
|
June 30, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
Weighted-average remaining lease term (years)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating leases
|
11
|
|
|
9
|
|
|
10
|
|
|
12
|
|
|
9
|
|
|
18
|
|
|
19
|
|
|
6
|
|
Finance leases
|
16
|
|
|
19
|
|
|
17
|
|
|
18
|
|
|
12
|
|
|
—
|
|
|
27
|
|
|
—
|
|
Weighted-average discount rate(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating leases
|
3.9
|
%
|
|
3.7
|
%
|
|
3.8
|
%
|
|
3.8
|
%
|
|
3.7
|
%
|
|
4.2
|
%
|
|
4.1
|
%
|
|
3.6
|
%
|
Finance leases
|
7.9
|
%
|
|
12.9
|
%
|
|
11.8
|
%
|
|
12.4
|
%
|
|
8.3
|
%
|
|
—
|
%
|
|
11.9
|
%
|
|
—
|
%
|
(a)
|
The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.
|
FINANCIAL STATEMENTS
|
DEBT AND CREDIT FACILITIES
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
||||||||||||||||||
|
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
||||||||
|
Maturity
|
Interest
|
|
|
Duke
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
||||||
Issuance Date
|
Date
|
Rate
|
|
|
Energy
|
|
|
(Parent)
|
|
|
Progress
|
|
|
Ohio
|
|
|
Piedmont
|
|
|||||
Unsecured Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
March 2019(a)
|
March 2022
|
3.251
|
%
|
(b)
|
$
|
300
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
March 2019(a)
|
March 2022
|
3.227
|
%
|
|
300
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
May 2019(e)
|
June 2029
|
3.500
|
%
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600
|
|
|||||
June 2019(a)
|
June 2029
|
3.400
|
%
|
|
600
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
June 2019(a)
|
June 2049
|
4.200
|
%
|
|
600
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
First Mortgage Bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
January 2019(c)
|
February 2029
|
3.650
|
%
|
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|||||
January 2019(c)
|
February 2049
|
4.300
|
%
|
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|||||
March 2019(d)
|
March 2029
|
3.450
|
%
|
|
600
|
|
|
—
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|||||
Total issuances
|
|
|
|
$
|
3,800
|
|
|
$
|
1,800
|
|
|
$
|
600
|
|
|
$
|
800
|
|
|
$
|
600
|
|
(a)
|
Debt issued to pay down short-term debt and for general corporate purposes.
|
(b)
|
Debt issuance has a floating interest rate.
|
(c)
|
Debt issued to repay at maturity $450 million first mortgage bonds due April 2019, pay down short-term debt and for general corporate purposes.
|
(d)
|
Debt issued to fund eligible green energy projects in the Carolinas.
|
(e)
|
Debt issued to repay in full the outstanding $350 million Piedmont unsecured term loan due September 2019, pay down short-term debt and for general corporate purposes.
|
(in millions)
|
Maturity Date
|
|
Interest Rate
|
|
|
June 30, 2019
|
|
|
Unsecured Debt
|
|
|
|
|
|
|||
Duke Energy (Parent)
|
September 2019
|
|
5.050
|
%
|
|
$
|
500
|
|
Duke Energy Kentucky
|
October 2019
|
|
4.650
|
%
|
|
100
|
|
|
Progress Energy
|
December 2019
|
|
4.875
|
%
|
|
350
|
|
|
Duke Energy (Parent)
|
June 2020
|
|
2.100
|
%
|
|
330
|
|
|
First Mortgage Bonds
|
|
|
|
|
|
|||
Duke Energy Florida
|
January 2020
|
|
1.850
|
%
|
|
250
|
|
|
Duke Energy Florida
|
April 2020
|
|
4.550
|
%
|
|
250
|
|
|
Duke Energy Carolinas
|
June 2020
|
|
4.300
|
%
|
|
450
|
|
|
Other(a)
|
|
|
|
|
468
|
|
||
Current maturities of long-term debt
|
|
|
|
|
$
|
2,698
|
|
FINANCIAL STATEMENTS
|
DEBT AND CREDIT FACILITIES
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||
|
Duke
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
(Parent)
|
|
|
Carolinas
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Facility size(a)
|
$
|
8,000
|
|
|
$
|
2,650
|
|
|
$
|
1,750
|
|
|
$
|
1,250
|
|
|
$
|
800
|
|
|
$
|
450
|
|
|
$
|
600
|
|
|
$
|
500
|
|
Reduction to backstop issuances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial paper(b)
|
(3,420
|
)
|
|
(1,009
|
)
|
|
(1,099
|
)
|
|
(276
|
)
|
|
(474
|
)
|
|
(236
|
)
|
|
(326
|
)
|
|
—
|
|
||||||||
Outstanding letters of credit
|
(53
|
)
|
|
(45
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||||
Tax-exempt bonds
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
||||||||
Coal ash set-aside
|
(500
|
)
|
|
—
|
|
|
(250
|
)
|
|
(250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Available capacity under the Master Credit Facility
|
$
|
3,946
|
|
|
$
|
1,596
|
|
|
$
|
397
|
|
|
$
|
722
|
|
|
$
|
326
|
|
|
$
|
214
|
|
|
$
|
193
|
|
|
$
|
498
|
|
(a)
|
Represents the sublimit of each borrower.
|
(b)
|
Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies on the Condensed Consolidated Balance Sheets.
|
|
June 30, 2019
|
||||||
(in millions)
|
Facility size
|
|
|
Amount drawn
|
|
||
Duke Energy (Parent) Three-Year Revolving Credit Facility(a)
|
$
|
1,000
|
|
|
$
|
500
|
|
Duke Energy Progress Term Loan Facility(b)
|
700
|
|
|
700
|
|
(a)
|
In May 2019, Duke Energy (Parent) extended the termination date to May 2022.
|
(b)
|
$650 million was drawn under the term loan in January and February 2019.
|
FINANCIAL STATEMENTS
|
ASSET RETIREMENT OBLIGATIONS
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Decommissioning of nuclear power facilities(a)
|
$
|
5,807
|
|
|
$
|
2,401
|
|
|
$
|
3,265
|
|
|
$
|
2,739
|
|
|
$
|
526
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Closure of ash impoundments
|
6,498
|
|
|
2,894
|
|
|
2,858
|
|
|
2,839
|
|
|
19
|
|
|
47
|
|
|
699
|
|
|
—
|
|
||||||||
Other
|
323
|
|
|
47
|
|
|
70
|
|
|
38
|
|
|
32
|
|
|
42
|
|
|
20
|
|
|
19
|
|
||||||||
Total ARO
|
$
|
12,628
|
|
|
$
|
5,342
|
|
|
$
|
6,193
|
|
|
$
|
5,616
|
|
|
$
|
577
|
|
|
$
|
89
|
|
|
$
|
719
|
|
|
$
|
19
|
|
Less: current portion
|
739
|
|
|
203
|
|
|
416
|
|
|
413
|
|
|
3
|
|
|
6
|
|
|
115
|
|
|
—
|
|
||||||||
Total noncurrent ARO
|
$
|
11,889
|
|
|
$
|
5,139
|
|
|
$
|
5,777
|
|
|
$
|
5,203
|
|
|
$
|
574
|
|
|
$
|
83
|
|
|
$
|
604
|
|
|
$
|
19
|
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Balance at December 31, 2018(a)
|
$
|
10,467
|
|
|
$
|
3,949
|
|
|
$
|
5,411
|
|
|
$
|
4,820
|
|
|
$
|
591
|
|
|
$
|
93
|
|
|
$
|
722
|
|
|
$
|
19
|
|
Accretion expense(b)
|
245
|
|
|
111
|
|
|
124
|
|
|
111
|
|
|
13
|
|
|
2
|
|
|
14
|
|
|
—
|
|
||||||||
Liabilities settled(c)
|
(404
|
)
|
|
(155
|
)
|
|
(225
|
)
|
|
(197
|
)
|
|
(28
|
)
|
|
(6
|
)
|
|
(17
|
)
|
|
—
|
|
||||||||
Revisions in estimates of cash flows(d)
|
2,320
|
|
|
1,437
|
|
|
883
|
|
|
882
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at June 30, 2019
|
$
|
12,628
|
|
|
$
|
5,342
|
|
|
$
|
6,193
|
|
|
$
|
5,616
|
|
|
$
|
577
|
|
|
$
|
89
|
|
|
$
|
719
|
|
|
$
|
19
|
|
(a)
|
Primarily relates to decommissioning nuclear power facilities, closure of ash impoundments, asbestos removal, closure of landfills at fossil generation facilities, retirement of natural gas mains and removal of renewable energy generation assets.
|
(b)
|
For the six months ended June 30, 2019, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.
|
(c)
|
Primarily relates to ash impoundment closures.
|
(d)
|
Relates to increases in closure estimates for certain ash impoundments as a result of the NCDEQ's April 1 Order. See Note 4 for more information. The incremental amount recorded represents the discounted cash flows for estimated closure costs based upon the probability weightings of the potential closure methods as evaluated on a site-by-site basis.
|
(in millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Duke Energy
|
$
|
6,327
|
|
|
$
|
5,579
|
|
Duke Energy Carolinas
|
3,574
|
|
|
3,133
|
|
||
Duke Energy Progress
|
2,753
|
|
|
2,446
|
|
FINANCIAL STATEMENTS
|
GOODWILL
|
|
Electric Utilities
|
|
|
Gas Utilities
|
|
|
Commercial
|
|
|
|
|||||
(in millions)
|
and Infrastructure
|
|
|
and Infrastructure
|
|
|
Renewables
|
|
|
Total
|
|
||||
Goodwill balance
|
$
|
17,379
|
|
|
$
|
1,924
|
|
|
$
|
122
|
|
|
$
|
19,425
|
|
Accumulated impairment charges
|
—
|
|
|
—
|
|
|
(122
|
)
|
|
(122
|
)
|
||||
Goodwill, adjusted for accumulated impairment charges
|
$
|
17,379
|
|
|
$
|
1,924
|
|
|
$
|
—
|
|
|
$
|
19,303
|
|
FINANCIAL STATEMENTS
|
RELATED PARTY TRANSACTIONS
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Duke Energy Carolinas
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
197
|
|
|
$
|
213
|
|
|
$
|
409
|
|
|
$
|
433
|
|
Indemnification coverages(b)
|
5
|
|
|
5
|
|
|
10
|
|
|
11
|
|
||||
JDA revenue(c)
|
17
|
|
|
19
|
|
|
40
|
|
|
53
|
|
||||
JDA expense(c)
|
20
|
|
|
19
|
|
|
113
|
|
|
73
|
|
||||
Intercompany natural gas purchases(d)
|
3
|
|
|
4
|
|
|
7
|
|
|
8
|
|
||||
Progress Energy
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
183
|
|
|
$
|
206
|
|
|
$
|
359
|
|
|
$
|
397
|
|
Indemnification coverages(b)
|
10
|
|
|
9
|
|
|
19
|
|
|
17
|
|
||||
JDA revenue(c)
|
20
|
|
|
19
|
|
|
113
|
|
|
73
|
|
||||
JDA expense(c)
|
17
|
|
|
19
|
|
|
40
|
|
|
53
|
|
||||
Intercompany natural gas purchases(d)
|
19
|
|
|
19
|
|
|
38
|
|
|
38
|
|
||||
Duke Energy Progress
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
108
|
|
|
$
|
126
|
|
|
$
|
214
|
|
|
$
|
244
|
|
Indemnification coverages(b)
|
4
|
|
|
3
|
|
|
8
|
|
|
6
|
|
||||
JDA revenue(c)
|
20
|
|
|
19
|
|
|
113
|
|
|
73
|
|
||||
JDA expense(c)
|
17
|
|
|
19
|
|
|
40
|
|
|
53
|
|
||||
Intercompany natural gas purchases(d)
|
19
|
|
|
19
|
|
|
38
|
|
|
38
|
|
||||
Duke Energy Florida
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
75
|
|
|
$
|
80
|
|
|
$
|
145
|
|
|
$
|
153
|
|
Indemnification coverages(b)
|
6
|
|
|
6
|
|
|
11
|
|
|
11
|
|
||||
Duke Energy Ohio
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
83
|
|
|
$
|
90
|
|
|
$
|
168
|
|
|
$
|
179
|
|
Indemnification coverages(b)
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Duke Energy Indiana
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
93
|
|
|
$
|
96
|
|
|
$
|
190
|
|
|
$
|
197
|
|
Indemnification coverages(b)
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
||||
Piedmont
|
|
|
|
|
|
|
|
||||||||
Corporate governance and shared service expenses(a)
|
$
|
37
|
|
|
$
|
40
|
|
|
$
|
69
|
|
|
$
|
76
|
|
Indemnification coverages(b)
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Intercompany natural gas sales(d)
|
22
|
|
|
23
|
|
|
45
|
|
|
46
|
|
||||
Natural gas storage and transportation costs(e)
|
6
|
|
|
6
|
|
|
11
|
|
|
12
|
|
(a)
|
The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
|
(b)
|
The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
|
(c)
|
Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income.
|
(d)
|
Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income.
|
(e)
|
Piedmont has related party transactions as a customer of its equity method investments in Pine Needle, Hardy Storage, and Cardinal natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Condensed Consolidated Statements of Operations and Comprehensive Income.
|
FINANCIAL STATEMENTS
|
RELATED PARTY TRANSACTIONS
|
|
Duke
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
|||||||||
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
||||||||
(in millions)
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
|||||||
June 30, 2019
|
|
|
|
|
|
|
|
||||||||||||||
Intercompany income tax receivable
|
$
|
—
|
|
$
|
25
|
|
$
|
—
|
|
$
|
—
|
|
$
|
15
|
|
$
|
—
|
|
$
|
26
|
|
Intercompany income tax payable
|
76
|
|
—
|
|
41
|
|
19
|
|
—
|
|
1
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||||||||
Intercompany income tax receivable
|
$
|
52
|
|
$
|
47
|
|
$
|
29
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8
|
|
$
|
—
|
|
Intercompany income tax payable
|
—
|
|
—
|
|
—
|
|
16
|
|
3
|
|
—
|
|
45
|
|
FINANCIAL STATEMENTS
|
DERIVATIVES AND HEDGING
|
|
June 30, 2019
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
||||||
Cash flow hedges
|
$
|
959
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Undesignated contracts
|
1,427
|
|
|
600
|
|
|
800
|
|
|
250
|
|
|
550
|
|
|
27
|
|
||||||
Total notional amount(a)
|
$
|
2,386
|
|
|
$
|
600
|
|
|
$
|
800
|
|
|
$
|
250
|
|
|
$
|
550
|
|
|
$
|
27
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
||||||
Cash flow hedges
|
$
|
923
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Undesignated contracts
|
1,721
|
|
|
300
|
|
|
1,200
|
|
|
650
|
|
|
550
|
|
|
27
|
|
||||||
Total notional amount(a)
|
$
|
2,644
|
|
|
$
|
300
|
|
|
$
|
1,200
|
|
|
$
|
650
|
|
|
$
|
550
|
|
|
$
|
27
|
|
(a)
|
Duke Energy includes amounts related to consolidated VIEs of $659 million in cash flow hedges as of June 30, 2019, and $422 million in cash flow hedges and $194 million in undesignated contracts as of December 31, 2018.
|
|
June 30, 2019
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
Electricity (GWh)
|
33,135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,514
|
|
|
29,621
|
|
|
—
|
|
Natural gas (millions of dekatherms)
|
740
|
|
|
133
|
|
|
173
|
|
|
173
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
430
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
Electricity (GWh)
|
15,286
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,786
|
|
|
13,500
|
|
|
—
|
|
Natural gas (millions of dekatherms)
|
739
|
|
|
121
|
|
|
169
|
|
|
166
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
448
|
|
FINANCIAL STATEMENTS
|
DERIVATIVES AND HEDGING
|
Derivative Assets
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Commodity Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
2
|
|
Total Derivative Assets – Commodity Contracts
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
2
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncurrent
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Derivative Assets – Interest Rate Contracts
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Derivative Assets
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
2
|
|
Derivative Liabilities
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Commodity Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
64
|
|
|
$
|
31
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Noncurrent
|
|
140
|
|
|
8
|
|
|
24
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107
|
|
||||||||
Total Derivative Liabilities – Commodity Contracts
|
|
$
|
204
|
|
|
$
|
39
|
|
|
$
|
48
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
114
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Noncurrent
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
86
|
|
|
54
|
|
|
31
|
|
|
2
|
|
|
29
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Noncurrent
|
|
16
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
10
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||||
Total Derivative Liabilities – Interest Rate Contracts
|
|
$
|
138
|
|
|
$
|
54
|
|
|
$
|
42
|
|
|
$
|
2
|
|
|
$
|
39
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Derivative Liabilities
|
|
$
|
342
|
|
|
$
|
93
|
|
|
$
|
90
|
|
|
$
|
35
|
|
|
$
|
39
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
114
|
|
FINANCIAL STATEMENTS
|
DERIVATIVES AND HEDGING
|
Derivative Assets
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Commodity Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
35
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
23
|
|
|
$
|
3
|
|
Noncurrent
|
|
4
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Derivative Assets – Commodity Contracts
|
|
$
|
39
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
23
|
|
|
$
|
3
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Noncurrent
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Noncurrent
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Derivative Assets – Interest Rate Contracts
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Derivative Assets
|
|
$
|
57
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
23
|
|
|
$
|
3
|
|
Derivative Liabilities
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Commodity Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
33
|
|
|
$
|
14
|
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Noncurrent
|
|
158
|
|
|
10
|
|
|
15
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||||||
Total Derivative Liabilities – Commodity Contracts
|
|
$
|
191
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
11
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
141
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Noncurrent
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
|
23
|
|
|
9
|
|
|
13
|
|
|
11
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||||
Noncurrent
|
|
10
|
|
|
—
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||||
Total Derivative Liabilities – Interest Rate Contracts
|
|
$
|
51
|
|
|
$
|
9
|
|
|
$
|
19
|
|
|
$
|
16
|
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Derivative Liabilities
|
|
$
|
242
|
|
|
$
|
33
|
|
|
$
|
44
|
|
|
$
|
27
|
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
141
|
|
FINANCIAL STATEMENTS
|
DERIVATIVES AND HEDGING
|
Derivative Assets
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
2
|
|
Gross amounts offset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Current Assets: Other
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
2
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross amounts offset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Other Noncurrent Assets: Other
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative Liabilities
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
154
|
|
|
$
|
85
|
|
|
$
|
55
|
|
|
$
|
26
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Gross amounts offset
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Current Liabilities: Other
|
|
$
|
153
|
|
|
$
|
85
|
|
|
$
|
54
|
|
|
$
|
25
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
188
|
|
|
$
|
8
|
|
|
$
|
35
|
|
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
107
|
|
Gross amounts offset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Other Noncurrent Liabilities: Other
|
|
$
|
188
|
|
|
$
|
8
|
|
|
$
|
35
|
|
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
107
|
|
Derivative Assets
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
38
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
23
|
|
|
$
|
3
|
|
Gross amounts offset
|
|
(3
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Current Assets: Other
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
23
|
|
|
$
|
3
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
19
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Gross amounts offset
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Other Noncurrent Assets: Other
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
FINANCIAL STATEMENTS
|
DERIVATIVES AND HEDGING
|
Derivative Liabilities
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
68
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
16
|
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Gross amounts offset
|
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Current Liabilities: Other
|
|
$
|
64
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
14
|
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross amounts recognized
|
|
$
|
174
|
|
|
$
|
10
|
|
|
$
|
21
|
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
133
|
|
Gross amounts offset
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net amounts presented in Other Noncurrent Liabilities: Other
|
|
$
|
171
|
|
|
$
|
9
|
|
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
June 30, 2019
|
||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
||||
Aggregate fair value of derivatives in a net liability position
|
$
|
67
|
|
|
$
|
34
|
|
|
$
|
33
|
|
|
$
|
33
|
|
Fair value of collateral already posted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered
|
67
|
|
|
34
|
|
|
33
|
|
|
33
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
||||
Aggregate fair value of derivatives in a net liability position
|
$
|
44
|
|
|
$
|
19
|
|
|
$
|
25
|
|
|
$
|
25
|
|
Fair value of collateral already posted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered
|
44
|
|
|
19
|
|
|
25
|
|
|
25
|
|
FINANCIAL STATEMENTS
|
INVESTMENTS IN DEBT AND EQUITY SECURITIES
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
NDTF
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
88
|
|
Equity securities
|
3,076
|
|
|
36
|
|
|
5,178
|
|
|
2,402
|
|
|
95
|
|
|
4,475
|
|
||||||
Corporate debt securities
|
30
|
|
|
1
|
|
|
571
|
|
|
4
|
|
|
13
|
|
|
566
|
|
||||||
Municipal bonds
|
10
|
|
|
—
|
|
|
318
|
|
|
1
|
|
|
4
|
|
|
353
|
|
||||||
U.S. government bonds
|
34
|
|
|
1
|
|
|
1,270
|
|
|
14
|
|
|
12
|
|
|
1,076
|
|
||||||
Other debt securities
|
3
|
|
|
1
|
|
|
152
|
|
|
—
|
|
|
2
|
|
|
148
|
|
||||||
Total NDTF Investments
|
$
|
3,153
|
|
|
$
|
39
|
|
|
$
|
7,603
|
|
|
$
|
2,421
|
|
|
$
|
126
|
|
|
$
|
6,706
|
|
Other Investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
Equity securities
|
49
|
|
|
—
|
|
|
112
|
|
|
36
|
|
|
1
|
|
|
99
|
|
||||||
Corporate debt securities
|
2
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
2
|
|
|
60
|
|
||||||
Municipal bonds
|
3
|
|
|
1
|
|
|
90
|
|
|
—
|
|
|
1
|
|
|
85
|
|
||||||
U.S. government bonds
|
2
|
|
|
—
|
|
|
51
|
|
|
1
|
|
|
—
|
|
|
45
|
|
||||||
Other debt securities
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
1
|
|
|
58
|
|
||||||
Total Other Investments
|
$
|
56
|
|
|
$
|
1
|
|
|
$
|
427
|
|
|
$
|
37
|
|
|
$
|
5
|
|
|
$
|
369
|
|
Total Investments
|
$
|
3,209
|
|
|
$
|
40
|
|
|
$
|
8,030
|
|
|
$
|
2,458
|
|
|
$
|
131
|
|
|
$
|
7,075
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
FV-NI:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
$
|
66
|
|
|
$
|
47
|
|
|
$
|
101
|
|
|
$
|
66
|
|
Realized losses
|
63
|
|
|
31
|
|
|
93
|
|
|
44
|
|
||||
AFS:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
47
|
|
|
5
|
|
|
57
|
|
|
10
|
|
||||
Realized losses
|
36
|
|
|
12
|
|
|
47
|
|
|
25
|
|
FINANCIAL STATEMENTS
|
INVESTMENTS IN DEBT AND EQUITY SECURITIES
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
NDTF
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
Equity securities
|
1,671
|
|
|
9
|
|
|
2,883
|
|
|
1,309
|
|
|
54
|
|
|
2,484
|
|
||||||
Corporate debt securities
|
18
|
|
|
1
|
|
|
360
|
|
|
2
|
|
|
9
|
|
|
341
|
|
||||||
Municipal bonds
|
2
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
1
|
|
|
81
|
|
||||||
U.S. government bonds
|
17
|
|
|
1
|
|
|
556
|
|
|
5
|
|
|
8
|
|
|
475
|
|
||||||
Other debt securities
|
3
|
|
|
1
|
|
|
141
|
|
|
—
|
|
|
2
|
|
|
143
|
|
||||||
Total NDTF Investments
|
$
|
1,711
|
|
|
$
|
12
|
|
|
$
|
4,044
|
|
|
$
|
1,316
|
|
|
$
|
74
|
|
|
$
|
3,553
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
FV-NI:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
$
|
44
|
|
|
$
|
26
|
|
|
$
|
67
|
|
|
$
|
36
|
|
Realized losses
|
48
|
|
|
17
|
|
|
69
|
|
|
22
|
|
||||
AFS:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
16
|
|
|
4
|
|
|
25
|
|
|
9
|
|
||||
Realized losses
|
11
|
|
|
8
|
|
|
21
|
|
|
18
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
NDTF
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Equity securities
|
1,405
|
|
|
27
|
|
|
2,295
|
|
|
1,093
|
|
|
41
|
|
|
1,991
|
|
||||||
Corporate debt securities
|
12
|
|
|
—
|
|
|
211
|
|
|
2
|
|
|
4
|
|
|
225
|
|
||||||
Municipal bonds
|
8
|
|
|
—
|
|
|
255
|
|
|
1
|
|
|
3
|
|
|
272
|
|
||||||
U.S. government bonds
|
17
|
|
|
—
|
|
|
714
|
|
|
9
|
|
|
4
|
|
|
601
|
|
||||||
Other debt securities
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Total NDTF Investments
|
$
|
1,442
|
|
|
$
|
27
|
|
|
$
|
3,559
|
|
|
$
|
1,105
|
|
|
$
|
52
|
|
|
$
|
3,153
|
|
Other Investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
Municipal bonds
|
3
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||||
Total Other Investments
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
64
|
|
Total Investments
|
$
|
1,445
|
|
|
$
|
27
|
|
|
$
|
3,656
|
|
|
$
|
1,105
|
|
|
$
|
52
|
|
|
$
|
3,217
|
|
FINANCIAL STATEMENTS
|
INVESTMENTS IN DEBT AND EQUITY SECURITIES
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
(in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
FV-NI:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
34
|
|
|
$
|
30
|
|
Realized losses
|
15
|
|
|
14
|
|
|
24
|
|
|
22
|
|
||||
AFS:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
30
|
|
|
1
|
|
|
31
|
|
|
1
|
|
||||
Realized losses
|
25
|
|
|
4
|
|
|
26
|
|
|
7
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
NDTF
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46
|
|
Equity securities
|
1,092
|
|
|
24
|
|
|
1,886
|
|
|
833
|
|
|
30
|
|
|
1,588
|
|
||||||
Corporate debt securities
|
12
|
|
|
—
|
|
|
211
|
|
|
2
|
|
|
3
|
|
|
171
|
|
||||||
Municipal bonds
|
8
|
|
|
—
|
|
|
255
|
|
|
1
|
|
|
3
|
|
|
271
|
|
||||||
U.S. government bonds
|
16
|
|
|
—
|
|
|
429
|
|
|
6
|
|
|
3
|
|
|
415
|
|
||||||
Other debt securities
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Total NDTF Investments
|
$
|
1,128
|
|
|
$
|
24
|
|
|
$
|
2,834
|
|
|
$
|
842
|
|
|
$
|
39
|
|
|
$
|
2,494
|
|
Other Investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Total Other Investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
Total Investments
|
$
|
1,128
|
|
|
$
|
24
|
|
|
$
|
2,836
|
|
|
$
|
842
|
|
|
$
|
39
|
|
|
$
|
2,500
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
(in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
FV-NI:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
$
|
7
|
|
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
25
|
|
Realized losses
|
7
|
|
|
12
|
|
|
15
|
|
|
20
|
|
||||
AFS:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Realized losses
|
1
|
|
|
3
|
|
|
2
|
|
|
5
|
|
FINANCIAL STATEMENTS
|
INVESTMENTS IN DEBT AND EQUITY SECURITIES
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
NDTF
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Equity securities
|
313
|
|
|
3
|
|
|
409
|
|
|
260
|
|
|
11
|
|
|
403
|
|
||||||
Corporate debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
54
|
|
||||||
Municipal bonds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
U.S. government bonds
|
1
|
|
|
—
|
|
|
285
|
|
|
3
|
|
|
1
|
|
|
186
|
|
||||||
Other debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Total NDTF Investments(a)
|
$
|
314
|
|
|
$
|
3
|
|
|
$
|
725
|
|
|
$
|
263
|
|
|
$
|
13
|
|
|
$
|
659
|
|
Other Investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Municipal bonds
|
3
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||||
Total Other Investments
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
Total Investments
|
$
|
317
|
|
|
$
|
3
|
|
|
$
|
777
|
|
|
$
|
263
|
|
|
$
|
13
|
|
|
$
|
707
|
|
(a)
|
During the six months ended June 30, 2019, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
(in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||
FV-NI:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
$
|
15
|
|
|
$
|
4
|
|
|
$
|
17
|
|
|
$
|
5
|
|
Realized losses
|
8
|
|
|
2
|
|
|
9
|
|
|
2
|
|
||||
AFS:
|
|
|
|
|
|
|
|
||||||||
Realized gains
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||
Realized losses
|
24
|
|
|
1
|
|
|
24
|
|
|
2
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
||||||||
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Estimated
|
|
||||||
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
|
Holding
|
|
|
Holding
|
|
|
Fair
|
|
||||||
(in millions)
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
||||||
Investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
67
|
|
Corporate debt securities
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Municipal bonds
|
—
|
|
|
1
|
|
|
34
|
|
|
—
|
|
|
1
|
|
|
33
|
|
||||||
U.S. government bonds
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total Investments
|
$
|
37
|
|
|
$
|
1
|
|
|
$
|
116
|
|
|
$
|
29
|
|
|
$
|
1
|
|
|
$
|
108
|
|
FINANCIAL STATEMENTS
|
INVESTMENTS IN DEBT AND EQUITY SECURITIES
|
|
June 30, 2019
|
||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Indiana
|
|
||||||
Due in one year or less
|
$
|
365
|
|
|
$
|
43
|
|
|
$
|
315
|
|
|
$
|
29
|
|
|
$
|
286
|
|
|
$
|
4
|
|
Due after one through five years
|
527
|
|
|
213
|
|
|
265
|
|
|
257
|
|
|
8
|
|
|
15
|
|
||||||
Due after five through 10 years
|
499
|
|
|
242
|
|
|
203
|
|
|
192
|
|
|
11
|
|
|
4
|
|
||||||
Due after 10 years
|
1,186
|
|
|
622
|
|
|
458
|
|
|
428
|
|
|
30
|
|
|
19
|
|
||||||
Total
|
$
|
2,577
|
|
|
$
|
1,120
|
|
|
$
|
1,241
|
|
|
$
|
906
|
|
|
$
|
335
|
|
|
$
|
42
|
|
FINANCIAL STATEMENTS
|
FAIR VALUE MEASUREMENTS
|
|
June 30, 2019
|
||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Not Categorized
|
|
|||||
NDTF equity securities
|
$
|
5,178
|
|
$
|
5,119
|
|
$
|
—
|
|
$
|
—
|
|
$
|
59
|
|
NDTF debt securities
|
2,425
|
|
870
|
|
1,555
|
|
—
|
|
—
|
|
|||||
Other equity securities
|
112
|
|
112
|
|
—
|
|
—
|
|
—
|
|
|||||
Other debt securities
|
315
|
|
99
|
|
216
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
38
|
|
3
|
|
—
|
|
35
|
|
—
|
|
|||||
Total assets
|
8,068
|
|
6,203
|
|
1,771
|
|
35
|
|
59
|
|
|||||
Derivative liabilities
|
(342
|
)
|
(12
|
)
|
(216
|
)
|
(114
|
)
|
—
|
|
|||||
Net assets (liabilities)
|
$
|
7,726
|
|
$
|
6,191
|
|
$
|
1,555
|
|
$
|
(79
|
)
|
$
|
59
|
|
|
December 31, 2018
|
||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Not Categorized
|
|
|||||
NDTF equity securities
|
$
|
4,475
|
|
$
|
4,410
|
|
$
|
—
|
|
$
|
—
|
|
$
|
65
|
|
NDTF debt securities
|
2,231
|
|
576
|
|
1,655
|
|
—
|
|
—
|
|
|||||
Other equity securities
|
99
|
|
99
|
|
—
|
|
—
|
|
—
|
|
|||||
Other debt securities
|
270
|
|
67
|
|
203
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
57
|
|
4
|
|
25
|
|
28
|
|
—
|
|
|||||
Total assets
|
7,132
|
|
5,156
|
|
1,883
|
|
28
|
|
65
|
|
|||||
Derivative liabilities
|
(242
|
)
|
(11
|
)
|
(90
|
)
|
(141
|
)
|
—
|
|
|||||
Net assets (liabilities)
|
$
|
6,890
|
|
$
|
5,145
|
|
$
|
1,793
|
|
$
|
(113
|
)
|
$
|
65
|
|
|
Derivatives (net)
|
||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Balance at beginning of period
|
$
|
(115
|
)
|
|
$
|
(124
|
)
|
|
$
|
(113
|
)
|
|
$
|
(114
|
)
|
Purchases, sales, issuances and settlements:
|
|
|
|
|
|
|
|
||||||||
Purchases
|
38
|
|
|
56
|
|
|
38
|
|
|
56
|
|
||||
Settlements
|
(11
|
)
|
|
(15
|
)
|
|
(23
|
)
|
|
(29
|
)
|
||||
Total gains (losses) included on the Condensed Consolidated Balance Sheet
|
9
|
|
|
(14
|
)
|
|
19
|
|
|
(10
|
)
|
||||
Balance at end of period
|
$
|
(79
|
)
|
|
$
|
(97
|
)
|
|
$
|
(79
|
)
|
|
$
|
(97
|
)
|
FINANCIAL STATEMENTS
|
FAIR VALUE MEASUREMENTS
|
|
June 30, 2019
|
|||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Not Categorized
|
|
||||
NDTF equity securities
|
$
|
2,883
|
|
$
|
2,824
|
|
$
|
—
|
|
$
|
59
|
|
NDTF debt securities
|
1,161
|
|
250
|
|
911
|
|
—
|
|
||||
Total assets
|
4,044
|
|
3,074
|
|
911
|
|
59
|
|
||||
Derivative liabilities
|
(93
|
)
|
—
|
|
(93
|
)
|
—
|
|
||||
Net assets
|
$
|
3,951
|
|
$
|
3,074
|
|
$
|
818
|
|
$
|
59
|
|
|
December 31, 2018
|
|||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Not Categorized
|
|
||||
NDTF equity securities
|
$
|
2,484
|
|
$
|
2,419
|
|
$
|
—
|
|
$
|
65
|
|
NDTF debt securities
|
1,069
|
|
149
|
|
920
|
|
—
|
|
||||
Derivative assets
|
3
|
|
—
|
|
3
|
|
—
|
|
||||
Total assets
|
3,556
|
|
2,568
|
|
923
|
|
65
|
|
||||
Derivative liabilities
|
(33
|
)
|
—
|
|
(33
|
)
|
—
|
|
||||
Net assets
|
$
|
3,523
|
|
$
|
2,568
|
|
$
|
890
|
|
$
|
65
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
||||||
NDTF equity securities
|
$
|
2,295
|
|
$
|
2,295
|
|
$
|
—
|
|
|
$
|
1,991
|
|
$
|
1,991
|
|
$
|
—
|
|
NDTF debt securities
|
1,264
|
|
620
|
|
644
|
|
|
1,162
|
|
427
|
|
735
|
|
||||||
Other debt securities
|
97
|
|
47
|
|
50
|
|
|
64
|
|
17
|
|
47
|
|
||||||
Derivative assets
|
—
|
|
—
|
|
—
|
|
|
4
|
|
—
|
|
4
|
|
||||||
Total assets
|
3,656
|
|
2,962
|
|
694
|
|
|
3,221
|
|
2,435
|
|
786
|
|
||||||
Derivative liabilities
|
(90
|
)
|
—
|
|
(90
|
)
|
|
(44
|
)
|
—
|
|
(44
|
)
|
||||||
Net assets
|
$
|
3,566
|
|
$
|
2,962
|
|
$
|
604
|
|
|
$
|
3,177
|
|
$
|
2,435
|
|
$
|
742
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
||||||
NDTF equity securities
|
$
|
1,886
|
|
$
|
1,886
|
|
$
|
—
|
|
|
$
|
1,588
|
|
$
|
1,588
|
|
$
|
—
|
|
NDTF debt securities
|
948
|
|
304
|
|
644
|
|
|
906
|
|
294
|
|
612
|
|
||||||
Other debt securities
|
2
|
|
2
|
|
—
|
|
|
6
|
|
6
|
|
—
|
|
||||||
Derivative assets
|
—
|
|
—
|
|
—
|
|
|
4
|
|
—
|
|
4
|
|
||||||
Total assets
|
2,836
|
|
2,192
|
|
644
|
|
|
2,504
|
|
1,888
|
|
616
|
|
||||||
Derivative liabilities
|
(35
|
)
|
—
|
|
(35
|
)
|
|
(27
|
)
|
—
|
|
(27
|
)
|
||||||
Net assets
|
$
|
2,801
|
|
$
|
2,192
|
|
$
|
609
|
|
|
$
|
2,477
|
|
$
|
1,888
|
|
$
|
589
|
|
FINANCIAL STATEMENTS
|
FAIR VALUE MEASUREMENTS
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
||||||
NDTF equity securities
|
$
|
409
|
|
$
|
409
|
|
$
|
—
|
|
|
$
|
403
|
|
$
|
403
|
|
$
|
—
|
|
NDTF debt securities
|
316
|
|
316
|
|
—
|
|
|
256
|
|
133
|
|
123
|
|
||||||
Other debt securities
|
52
|
|
2
|
|
50
|
|
|
48
|
|
1
|
|
47
|
|
||||||
Total assets
|
777
|
|
727
|
|
50
|
|
|
707
|
|
537
|
|
170
|
|
||||||
Derivative liabilities
|
(39
|
)
|
—
|
|
(39
|
)
|
|
(9
|
)
|
—
|
|
(9
|
)
|
||||||
Net assets
|
$
|
738
|
|
$
|
727
|
|
$
|
11
|
|
|
$
|
698
|
|
$
|
537
|
|
$
|
161
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Other equity securities
|
$
|
74
|
|
$
|
74
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
67
|
|
$
|
67
|
|
$
|
—
|
|
$
|
—
|
|
Other debt securities
|
42
|
|
—
|
|
42
|
|
—
|
|
|
41
|
|
—
|
|
41
|
|
—
|
|
||||||||
Derivative assets
|
29
|
|
1
|
|
—
|
|
28
|
|
|
23
|
|
1
|
|
—
|
|
22
|
|
||||||||
Total assets
|
$
|
145
|
|
$
|
75
|
|
$
|
42
|
|
$
|
28
|
|
|
$
|
131
|
|
$
|
68
|
|
$
|
41
|
|
$
|
22
|
|
Derivative liabilities
|
(2
|
)
|
(2
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Net assets
|
$
|
143
|
|
$
|
73
|
|
$
|
42
|
|
$
|
28
|
|
|
$
|
131
|
|
$
|
68
|
|
$
|
41
|
|
$
|
22
|
|
|
Derivatives (net)
|
||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Balance at beginning of period
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
22
|
|
|
$
|
27
|
|
Purchases, sales, issuances and settlements:
|
|
|
|
|
|
|
|
||||||||
Purchases
|
29
|
|
|
49
|
|
|
29
|
|
|
49
|
|
||||
Settlements
|
(9
|
)
|
|
(14
|
)
|
|
(19
|
)
|
|
(28
|
)
|
||||
Total gains (losses) included on the Condensed Consolidated Balance Sheet
|
3
|
|
|
2
|
|
|
(4
|
)
|
|
(4
|
)
|
||||
Balance at end of period
|
$
|
28
|
|
|
$
|
44
|
|
|
$
|
28
|
|
|
$
|
44
|
|
FINANCIAL STATEMENTS
|
FAIR VALUE MEASUREMENTS
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
(in millions)
|
Total Fair Value
|
|
Level 1
|
|
Level 3
|
|
|
Total Fair Value
|
|
Level 1
|
|
Level 3
|
|
||||||
Derivative assets
|
$
|
2
|
|
$
|
2
|
|
$
|
—
|
|
|
$
|
3
|
|
3
|
|
—
|
|
||
Derivative liabilities
|
(114
|
)
|
—
|
|
(114
|
)
|
|
(141
|
)
|
—
|
|
(141
|
)
|
||||||
Net (liabilities) assets
|
$
|
(112
|
)
|
$
|
2
|
|
$
|
(114
|
)
|
|
$
|
(138
|
)
|
$
|
3
|
|
$
|
(141
|
)
|
|
Derivatives (net)
|
||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Balance at beginning of period
|
$
|
(121
|
)
|
|
$
|
(132
|
)
|
|
$
|
(141
|
)
|
|
$
|
(142
|
)
|
Total gains (losses) and settlements
|
7
|
|
|
(18
|
)
|
|
27
|
|
|
(8
|
)
|
||||
Balance at end of period
|
$
|
(114
|
)
|
|
$
|
(150
|
)
|
|
$
|
(114
|
)
|
|
$
|
(150
|
)
|
|
June 30, 2019
|
|||||||||||
|
Fair Value
|
|
|
|
|
|
||||||
Investment Type
|
(in millions)
|
Valuation Technique
|
Unobservable Input
|
Range
|
||||||||
Duke Energy Ohio
|
|
|
|
|
|
|
|
|||||
FTRs
|
$
|
7
|
|
RTO auction pricing
|
FTR price – per MWh
|
$
|
0.36
|
|
-
|
$
|
3.13
|
|
Duke Energy Indiana
|
|
|
|
|
|
|
|
|||||
FTRs
|
28
|
|
RTO auction pricing
|
FTR price – per MWh
|
(0.59
|
)
|
-
|
7.61
|
|
|||
Piedmont
|
|
|
|
|
|
|
||||||
Natural gas contracts
|
(114
|
)
|
Discounted cash flow
|
Forward natural gas curves – price per MMBtu
|
1.96
|
|
-
|
3.21
|
|
|||
Duke Energy
|
|
|
|
|
|
|
||||||
Total Level 3 derivatives
|
$
|
(79
|
)
|
|
|
|
|
|
|
December 31, 2018
|
|||||||||||
|
Fair Value
|
|
|
|
|
|
||||||
Investment Type
|
(in millions)
|
Valuation Technique
|
Unobservable Input
|
Range
|
||||||||
Duke Energy Ohio
|
|
|
|
|
|
|
|
|||||
FTRs
|
$
|
6
|
|
RTO auction pricing
|
FTR price – per MWh
|
$
|
1.19
|
|
-
|
$
|
4.59
|
|
Duke Energy Indiana
|
|
|
|
|
|
|
|
|||||
FTRs
|
22
|
|
RTO auction pricing
|
FTR price – per MWh
|
(2.07
|
)
|
-
|
8.27
|
|
|||
Piedmont
|
|
|
|
|
|
|
||||||
Natural gas contracts
|
(141
|
)
|
Discounted cash flow
|
Forward natural gas curves – price per MMBtu
|
1.87
|
|
-
|
2.95
|
|
|||
Duke Energy
|
|
|
|
|
|
|
||||||
Total Level 3 derivatives
|
$
|
(113
|
)
|
|
|
|
|
|
FINANCIAL STATEMENTS
|
FAIR VALUE MEASUREMENTS
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
(in millions)
|
Book Value
|
|
|
Fair Value
|
|
|
Book Value
|
|
|
Fair Value
|
|
||||
Duke Energy(a)
|
$
|
57,040
|
|
|
$
|
60,667
|
|
|
$
|
54,529
|
|
|
$
|
54,534
|
|
Duke Energy Carolinas
|
10,964
|
|
|
12,300
|
|
|
10,939
|
|
|
11,471
|
|
||||
Progress Energy
|
19,199
|
|
|
21,408
|
|
|
18,911
|
|
|
19,885
|
|
||||
Duke Energy Progress
|
9,049
|
|
|
9,707
|
|
|
8,204
|
|
|
8,300
|
|
||||
Duke Energy Florida
|
7,213
|
|
|
8,173
|
|
|
7,321
|
|
|
7,742
|
|
||||
Duke Energy Ohio
|
2,509
|
|
|
2,779
|
|
|
2,165
|
|
|
2,239
|
|
||||
Duke Energy Indiana
|
3,723
|
|
|
4,363
|
|
|
3,782
|
|
|
4,158
|
|
||||
Piedmont
|
2,384
|
|
|
2,576
|
|
|
2,138
|
|
|
2,180
|
|
(a)
|
Book value of long-term debt includes $1.5 billion as of June 30, 2019, and $1.6 billion as of December 31, 2018, of unamortized debt discount and premium, net in purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.
|
FINANCIAL STATEMENTS
|
VARIABLE INTEREST ENTITIES
|
|
Duke Energy
|
||||||||||||||
|
|
|
Duke Energy
|
|
|
Duke Energy
|
|
|
Duke Energy
|
|
|||||
|
|
|
Carolinas
|
|
|
Progress
|
|
|
Florida
|
|
|||||
(in millions)
|
CRC
|
|
|
DERF
|
|
|
DEPR
|
|
|
DEFR
|
|
||||
Expiration date
|
December 2020
|
|
|
December 2020
|
|
|
February 2021
|
|
|
April 2021
|
|
||||
Credit facility amount
|
$
|
350
|
|
|
$
|
475
|
|
|
$
|
325
|
|
|
$
|
250
|
|
Amounts borrowed at June 30, 2019
|
328
|
|
|
475
|
|
|
325
|
|
|
250
|
|
||||
Amounts borrowed at December 31, 2018
|
325
|
|
|
450
|
|
|
300
|
|
|
225
|
|
||||
Restricted Receivables at June 30, 2019
|
484
|
|
|
671
|
|
|
518
|
|
|
472
|
|
||||
Restricted Receivables at December 31, 2018
|
564
|
|
|
699
|
|
|
547
|
|
|
357
|
|
(in millions)
|
June 30, 2019
|
|
December 31, 2018
|
|
||
Receivables of VIEs
|
$
|
8
|
|
$
|
5
|
|
Regulatory Assets: Current
|
52
|
|
52
|
|
||
Current Assets: Other
|
31
|
|
39
|
|
||
Other Noncurrent Assets: Regulatory assets
|
1,019
|
|
1,041
|
|
||
Current Liabilities: Other
|
10
|
|
10
|
|
||
Current maturities of long-term debt
|
54
|
|
53
|
|
||
Long-Term Debt
|
1,082
|
|
1,111
|
|
(in millions)
|
June 30, 2019
|
|
December 31, 2018
|
|
||
Current Assets: Other
|
$
|
109
|
|
$
|
123
|
|
Property, plant and equipment, cost
|
4,419
|
|
4,007
|
|
||
Accumulated depreciation and amortization
|
(769
|
)
|
(698
|
)
|
||
Other Noncurrent Assets: Other
|
289
|
|
261
|
|
||
Current maturities of long-term debt
|
178
|
|
174
|
|
||
Long-Term Debt
|
1,610
|
|
1,587
|
|
||
Other Noncurrent Liabilities: Asset Retirement Obligations
|
108
|
|
106
|
|
||
Other Noncurrent Liabilities: Other
|
222
|
|
212
|
|
FINANCIAL STATEMENTS
|
VARIABLE INTEREST ENTITIES
|
|
June 30, 2019
|
||||||||||||||||||||||
|
Duke Energy
|
|
Duke
|
|
|
Duke
|
|
||||||||||||||||
|
Pipeline
|
|
|
Commercial
|
|
|
Other
|
|
|
|
|
Energy
|
|
|
Energy
|
|
|||||||
(in millions)
|
Investments
|
|
|
Renewables
|
|
|
VIEs
|
|
|
Total
|
|
|
Ohio
|
|
|
Indiana
|
|
||||||
Receivables from affiliated companies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
81
|
|
Investments in equity method unconsolidated affiliates
|
1,066
|
|
|
187
|
|
|
52
|
|
|
1,305
|
|
|
—
|
|
|
—
|
|
||||||
Total assets
|
$
|
1,066
|
|
|
$
|
187
|
|
|
$
|
52
|
|
|
$
|
1,305
|
|
|
$
|
45
|
|
|
$
|
81
|
|
Taxes accrued
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Other current liabilities
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Deferred income taxes
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||
Total liabilities
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net assets
|
$
|
1,020
|
|
|
$
|
187
|
|
|
$
|
37
|
|
|
$
|
1,244
|
|
|
$
|
45
|
|
|
$
|
81
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Duke Energy
|
|
Duke
|
|
|
Duke
|
|
||||||||||||||||
|
Pipeline
|
|
|
Commercial
|
|
|
Other
|
|
|
|
|
Energy
|
|
|
Energy
|
|
|||||||
(in millions)
|
Investments
|
|
|
Renewables
|
|
|
VIEs
|
|
|
Total
|
|
|
Ohio
|
|
|
Indiana
|
|
||||||
Receivables from affiliated companies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
118
|
|
Investments in equity method unconsolidated affiliates
|
822
|
|
|
190
|
|
|
48
|
|
|
1,060
|
|
|
—
|
|
|
—
|
|
||||||
Total assets
|
$
|
822
|
|
|
$
|
190
|
|
|
$
|
48
|
|
|
$
|
1,060
|
|
|
$
|
93
|
|
|
$
|
118
|
|
Taxes accrued
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Other current liabilities
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Deferred income taxes
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||||
Total liabilities
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net assets
|
$
|
802
|
|
|
$
|
190
|
|
|
$
|
32
|
|
|
$
|
1,024
|
|
|
$
|
93
|
|
|
$
|
118
|
|
|
|
|
VIE Investment Amount (in millions)
|
|||||||
|
Ownership
|
|
June 30,
|
|
December 31,
|
|||||
Entity Name
|
Interest
|
|
2019
|
|
2018
|
|||||
ACP(a)
|
47
|
%
|
|
$
|
1,041
|
|
|
$
|
797
|
|
Constitution
|
24
|
%
|
|
25
|
|
|
25
|
|
||
Total
|
|
|
$
|
1,066
|
|
|
$
|
822
|
|
(a)
|
Duke Energy evaluated this investment for impairment as of June 30, 2019, and December 31, 2018, and determined that fair value approximated carrying value and therefore no impairment was necessary.
|
FINANCIAL STATEMENTS
|
VARIABLE INTEREST ENTITIES
|
|
Duke Energy Ohio
|
|
Duke Energy Indiana
|
||||||||||||
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||||
Receivables sold
|
$
|
210
|
|
|
$
|
269
|
|
|
$
|
314
|
|
|
$
|
336
|
|
Less: Retained interests
|
45
|
|
|
93
|
|
|
81
|
|
|
118
|
|
||||
Net receivables sold
|
$
|
165
|
|
|
$
|
176
|
|
|
$
|
233
|
|
|
$
|
218
|
|
|
Duke Energy Ohio
|
|
Duke Energy Indiana
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Receivables sold
|
$
|
429
|
|
|
$
|
461
|
|
|
$
|
1,004
|
|
|
$
|
1,028
|
|
|
$
|
676
|
|
|
$
|
692
|
|
|
$
|
1,410
|
|
|
$
|
1,386
|
|
Loss recognized on sale
|
3
|
|
|
3
|
|
|
7
|
|
|
6
|
|
|
4
|
|
|
4
|
|
|
9
|
|
|
7
|
|
||||||||
Cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash proceeds from receivables sold
|
$
|
448
|
|
|
$
|
465
|
|
|
$
|
1,045
|
|
|
$
|
1,050
|
|
|
$
|
680
|
|
|
$
|
686
|
|
|
$
|
1,438
|
|
|
$
|
1,397
|
|
Collection fees received
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||||||
Return received on retained interests
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
5
|
|
|
4
|
|
FINANCIAL STATEMENTS
|
REVENUE
|
|
Remaining Performance Obligations
|
||||||||||||||||||||
(in millions)
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
|
|||||||
Progress Energy
|
$
|
63
|
|
$
|
121
|
|
$
|
87
|
|
$
|
82
|
|
$
|
39
|
|
$
|
42
|
|
$
|
434
|
|
Duke Energy Progress
|
4
|
|
9
|
|
9
|
|
9
|
|
9
|
|
9
|
|
49
|
|
|||||||
Duke Energy Florida
|
59
|
|
112
|
|
78
|
|
73
|
|
30
|
|
33
|
|
385
|
|
|||||||
Duke Energy Indiana
|
5
|
|
10
|
|
5
|
|
—
|
|
—
|
|
—
|
|
20
|
|
|
Remaining Performance Obligations
|
||||||||||||||||||||
(in millions)
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
|
|||||||
Piedmont
|
$
|
34
|
|
$
|
69
|
|
$
|
65
|
|
$
|
64
|
|
$
|
61
|
|
$
|
432
|
|
$
|
725
|
|
FINANCIAL STATEMENTS
|
REVENUE
|
|
Three Months Ended June 30, 2019
|
|||||||||||||||||||||||
|
|
Duke
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
|||||||||||
(in millions)
|
Duke
|
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
|||||||||
By market or type of customer
|
Energy
|
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
||||||||
Electric Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
2,304
|
|
$
|
679
|
|
$
|
1,243
|
|
$
|
496
|
|
$
|
747
|
|
$
|
159
|
|
$
|
225
|
|
$
|
—
|
|
General
|
1,584
|
|
531
|
|
750
|
|
339
|
|
411
|
|
105
|
|
197
|
|
—
|
|
||||||||
Industrial
|
759
|
|
289
|
|
231
|
|
164
|
|
67
|
|
36
|
|
201
|
|
—
|
|
||||||||
Wholesale
|
527
|
|
109
|
|
351
|
|
309
|
|
42
|
|
9
|
|
59
|
|
—
|
|
||||||||
Other revenues
|
187
|
|
68
|
|
99
|
|
44
|
|
55
|
|
25
|
|
27
|
|
—
|
|
||||||||
Total Electric Utilities and Infrastructure revenue from contracts with customers
|
$
|
5,361
|
|
$
|
1,676
|
|
$
|
2,674
|
|
$
|
1,352
|
|
$
|
1,322
|
|
$
|
334
|
|
$
|
709
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gas Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
146
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
64
|
|
$
|
—
|
|
$
|
82
|
|
Commercial
|
85
|
|
—
|
|
—
|
|
—
|
|
—
|
|
26
|
|
—
|
|
59
|
|
||||||||
Industrial
|
29
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
24
|
|
||||||||
Power Generation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
||||||||
Other revenues
|
22
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
19
|
|
||||||||
Total Gas Utilities and Infrastructure revenue from contracts with customers
|
$
|
282
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
95
|
|
$
|
—
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Renewables
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
46
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Total revenue from contracts with customers
|
$
|
5,695
|
|
$
|
1,676
|
|
$
|
2,674
|
|
$
|
1,352
|
|
$
|
1,322
|
|
$
|
429
|
|
$
|
709
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other revenue sources(a)
|
$
|
178
|
|
$
|
37
|
|
$
|
70
|
|
$
|
35
|
|
$
|
31
|
|
$
|
4
|
|
$
|
5
|
|
$
|
12
|
|
Total revenues
|
$
|
5,873
|
|
$
|
1,713
|
|
$
|
2,744
|
|
$
|
1,387
|
|
$
|
1,353
|
|
$
|
433
|
|
$
|
714
|
|
$
|
209
|
|
FINANCIAL STATEMENTS
|
REVENUE
|
|
Three Months Ended June 30, 2018
|
|||||||||||||||||||||||
|
|
Duke
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
|||||||||||
(in millions)
|
Duke
|
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
|||||||||
By market or type of customer
|
Energy
|
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
||||||||
Electric Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
2,185
|
|
$
|
659
|
|
$
|
1,099
|
|
$
|
452
|
|
$
|
648
|
|
$
|
181
|
|
$
|
245
|
|
$
|
—
|
|
General
|
1,481
|
|
501
|
|
678
|
|
300
|
|
377
|
|
110
|
|
188
|
|
—
|
|
||||||||
Industrial
|
736
|
|
286
|
|
224
|
|
159
|
|
66
|
|
33
|
|
192
|
|
—
|
|
||||||||
Wholesale
|
515
|
|
115
|
|
322
|
|
287
|
|
34
|
|
2
|
|
77
|
|
—
|
|
||||||||
Other revenues
|
194
|
|
85
|
|
96
|
|
47
|
|
50
|
|
23
|
|
20
|
|
—
|
|
||||||||
Total Electric Utilities and Infrastructure revenue from contracts with customers
|
$
|
5,111
|
|
$
|
1,646
|
|
$
|
2,419
|
|
$
|
1,245
|
|
$
|
1,175
|
|
$
|
349
|
|
$
|
722
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gas Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
153
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
66
|
|
$
|
—
|
|
$
|
87
|
|
Commercial
|
87
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28
|
|
—
|
|
59
|
|
||||||||
Industrial
|
31
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
28
|
|
||||||||
Power Generation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14
|
|
||||||||
Other revenues
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
—
|
|
17
|
|
||||||||
Total Gas Utilities and Infrastructure revenue from contracts with customers
|
$
|
294
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
103
|
|
$
|
—
|
|
$
|
205
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Renewables
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
47
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
15
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10
|
|
$
|
—
|
|
$
|
—
|
|
Total revenue from contracts with customers
|
$
|
5,467
|
|
$
|
1,646
|
|
$
|
2,419
|
|
$
|
1,245
|
|
$
|
1,175
|
|
$
|
462
|
|
$
|
722
|
|
$
|
205
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other revenue sources(a)
|
$
|
176
|
|
$
|
26
|
|
$
|
79
|
|
$
|
46
|
|
$
|
28
|
|
$
|
(3
|
)
|
$
|
16
|
|
$
|
10
|
|
Total revenues
|
$
|
5,643
|
|
$
|
1,672
|
|
$
|
2,498
|
|
$
|
1,291
|
|
$
|
1,203
|
|
$
|
459
|
|
$
|
738
|
|
$
|
215
|
|
(a)
|
Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
|
FINANCIAL STATEMENTS
|
REVENUE
|
|
Six Months Ended June 30, 2019
|
|||||||||||||||||||||||
|
|
Duke
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
|||||||||||
(in millions)
|
Duke
|
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
|||||||||
By market or type of customer
|
Energy
|
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
||||||||
Electric Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
4,674
|
|
$
|
1,439
|
|
$
|
2,357
|
|
$
|
1,032
|
|
$
|
1,325
|
|
$
|
348
|
|
$
|
531
|
|
$
|
—
|
|
General
|
3,011
|
|
1,027
|
|
1,382
|
|
645
|
|
737
|
|
208
|
|
394
|
|
—
|
|
||||||||
Industrial
|
1,470
|
|
555
|
|
453
|
|
325
|
|
128
|
|
69
|
|
391
|
|
—
|
|
||||||||
Wholesale
|
1,068
|
|
228
|
|
704
|
|
624
|
|
80
|
|
23
|
|
113
|
|
—
|
|
||||||||
Other revenues
|
359
|
|
146
|
|
271
|
|
169
|
|
102
|
|
41
|
|
44
|
|
—
|
|
||||||||
Total Electric Utilities and Infrastructure revenue from contracts with customers
|
$
|
10,582
|
|
$
|
3,395
|
|
$
|
5,167
|
|
$
|
2,795
|
|
$
|
2,372
|
|
$
|
689
|
|
$
|
1,473
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gas Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
560
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
176
|
|
$
|
—
|
|
$
|
384
|
|
Commercial
|
291
|
|
—
|
|
—
|
|
—
|
|
—
|
|
75
|
|
—
|
|
216
|
|
||||||||
Industrial
|
77
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
—
|
|
66
|
|
||||||||
Power Generation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
26
|
|
||||||||
Other revenues
|
85
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
—
|
|
75
|
|
||||||||
Total Gas Utilities and Infrastructure revenue from contracts with customers
|
$
|
1,013
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
271
|
|
$
|
—
|
|
$
|
767
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Renewables
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
88
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
10
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Total Revenue from contracts with customers
|
$
|
11,693
|
|
$
|
3,395
|
|
$
|
5,167
|
|
$
|
2,795
|
|
$
|
2,372
|
|
$
|
960
|
|
$
|
1,473
|
|
$
|
767
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other revenue sources(a)
|
$
|
343
|
|
$
|
62
|
|
$
|
149
|
|
$
|
76
|
|
$
|
67
|
|
$
|
4
|
|
$
|
9
|
|
$
|
21
|
|
Total revenues
|
$
|
12,036
|
|
$
|
3,457
|
|
$
|
5,316
|
|
$
|
2,871
|
|
$
|
2,439
|
|
$
|
964
|
|
$
|
1,482
|
|
$
|
788
|
|
FINANCIAL STATEMENTS
|
REVENUE
|
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||||||
|
|
Duke
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
|||||||||||
(in millions)
|
Duke
|
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
|||||||||
By market or type of customer
|
Energy
|
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
||||||||
Electric Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
4,535
|
|
$
|
1,440
|
|
$
|
2,211
|
|
$
|
968
|
|
$
|
1,243
|
|
$
|
361
|
|
$
|
523
|
|
$
|
—
|
|
General
|
2,856
|
|
973
|
|
1,309
|
|
599
|
|
710
|
|
206
|
|
366
|
|
—
|
|
||||||||
Industrial
|
1,400
|
|
541
|
|
432
|
|
304
|
|
128
|
|
63
|
|
365
|
|
—
|
|
||||||||
Wholesale
|
1,148
|
|
234
|
|
768
|
|
684
|
|
84
|
|
2
|
|
145
|
|
—
|
|
||||||||
Other revenues
|
333
|
|
152
|
|
225
|
|
132
|
|
93
|
|
37
|
|
37
|
|
—
|
|
||||||||
Total Electric Utilities and Infrastructure revenue from contracts with customers
|
$
|
10,272
|
|
$
|
3,340
|
|
$
|
4,945
|
|
$
|
2,687
|
|
$
|
2,258
|
|
$
|
669
|
|
$
|
1,436
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gas Utilities and Infrastructure
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential
|
$
|
566
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
177
|
|
$
|
—
|
|
$
|
389
|
|
Commercial
|
288
|
|
—
|
|
—
|
|
—
|
|
—
|
|
77
|
|
—
|
|
211
|
|
||||||||
Industrial
|
79
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
—
|
|
69
|
|
||||||||
Power Generation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
||||||||
Other revenues
|
78
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
—
|
|
66
|
|
||||||||
Total Gas Utilities and Infrastructure revenue from contracts with customers
|
$
|
1,011
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
276
|
|
$
|
—
|
|
$
|
762
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial Renewables
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
80
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue from contracts with customers
|
$
|
31
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
24
|
|
$
|
—
|
|
$
|
—
|
|
Total Revenue from contracts with customers
|
$
|
11,394
|
|
$
|
3,340
|
|
$
|
4,945
|
|
$
|
2,687
|
|
$
|
2,258
|
|
$
|
969
|
|
$
|
1,436
|
|
$
|
762
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other revenue sources(a)
|
$
|
384
|
|
$
|
95
|
|
$
|
129
|
|
$
|
64
|
|
$
|
60
|
|
$
|
14
|
|
$
|
33
|
|
$
|
6
|
|
Total revenues
|
$
|
11,778
|
|
$
|
3,435
|
|
$
|
5,074
|
|
$
|
2,751
|
|
$
|
2,318
|
|
$
|
983
|
|
$
|
1,469
|
|
$
|
768
|
|
(a)
|
Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
Duke Energy
|
$
|
790
|
|
|
$
|
896
|
|
Duke Energy Carolinas
|
288
|
|
|
313
|
|
||
Progress Energy
|
270
|
|
|
244
|
|
||
Duke Energy Progress
|
148
|
|
|
148
|
|
||
Duke Energy Florida
|
122
|
|
|
96
|
|
||
Duke Energy Ohio
|
1
|
|
|
2
|
|
||
Duke Energy Indiana
|
14
|
|
|
23
|
|
||
Piedmont
|
4
|
|
|
73
|
|
FINANCIAL STATEMENTS
|
REVENUE
|
(in millions)
|
June 30, 2019
|
|
|
December 31, 2018
|
|
||
Duke Energy Ohio
|
$
|
65
|
|
|
$
|
86
|
|
Duke Energy Indiana
|
116
|
|
|
128
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in millions, except per-share amounts)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Income from continuing operations attributable to Duke Energy common stockholders excluding impact of participating securities
|
$
|
819
|
|
|
$
|
504
|
|
|
$
|
1,718
|
|
|
$
|
1,123
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding – basic
|
728
|
|
|
703
|
|
|
728
|
|
|
702
|
|
||||
Equity Forwards
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Weighted average common shares outstanding – diluted
|
728
|
|
|
704
|
|
|
728
|
|
|
702
|
|
||||
EPS from continuing operations attributable to Duke Energy common stockholders
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted
|
$
|
1.12
|
|
|
$
|
0.72
|
|
|
$
|
2.36
|
|
|
$
|
1.60
|
|
Potentially dilutive items excluded from the calculation(a)
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Dividends declared per common share
|
$
|
0.928
|
|
|
$
|
0.89
|
|
|
$
|
1.855
|
|
|
$
|
1.78
|
|
Dividends declared on preferred stock per depositary share
|
$
|
0.307
|
|
|
$
|
—
|
|
|
$
|
0.307
|
|
|
$
|
—
|
|
(a)
|
Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.
|
FINANCIAL STATEMENTS
|
STOCKHOLDERS' EQUITY
|
•
|
senior to Common Stock and to each other class or series of capital stock established after the original issue date of the Series A Preferred Stock that is expressly made subordinated to the Series A Preferred Stock;
|
•
|
on a parity with any class or series of capital stock established after the original issue date of the Series A Preferred Stock that is not expressly made senior or subordinated to the Series A Preferred Stock;
|
•
|
junior to any class or series of capital stock established after the original issue date of the Series A Preferred Stock that is expressly made senior to the Series A Preferred Stock;
|
•
|
junior to all of existing and future indebtedness (including indebtedness outstanding under Duke Energy's credit facilities, unsecured senior notes, junior subordinated debentures and commercial paper) and other liabilities with respect to assets available to satisfy claims against Duke Energy; and
|
•
|
structurally subordinated to existing and future indebtedness and other liabilities of Duke Energy's subsidiaries and future preferred stock of subsidiaries.
|
FINANCIAL STATEMENTS
|
EMPLOYEE BENEFIT PLANS
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Service cost
|
$
|
37
|
|
|
$
|
12
|
|
|
$
|
10
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest cost on projected benefit obligation
|
82
|
|
|
21
|
|
|
26
|
|
|
12
|
|
|
13
|
|
|
4
|
|
|
7
|
|
|
3
|
|
||||||||
Expected return on plan assets
|
(143
|
)
|
|
(37
|
)
|
|
(45
|
)
|
|
(21
|
)
|
|
(22
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
(6
|
)
|
||||||||
Amortization of actuarial loss
|
25
|
|
|
5
|
|
|
9
|
|
|
3
|
|
|
6
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||
Amortization of prior service credit
|
(8
|
)
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
||||||||
Net periodic pension costs
|
$
|
(7
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Service cost
|
$
|
45
|
|
|
$
|
15
|
|
|
$
|
13
|
|
|
$
|
8
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
2
|
|
Interest cost on projected benefit obligation
|
75
|
|
|
18
|
|
|
22
|
|
|
10
|
|
|
12
|
|
|
4
|
|
|
6
|
|
|
3
|
|
||||||||
Expected return on plan assets
|
(140
|
)
|
|
(37
|
)
|
|
(43
|
)
|
|
(21
|
)
|
|
(23
|
)
|
|
(7
|
)
|
|
(11
|
)
|
|
(6
|
)
|
||||||||
Amortization of actuarial loss
|
33
|
|
|
7
|
|
|
11
|
|
|
5
|
|
|
6
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||||||
Amortization of prior service credit
|
(8
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||||
Net periodic pension costs
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
||||||||||
(in millions)
|
Energy
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
|||||||||
Service cost
|
$
|
74
|
|
|
$
|
24
|
|
|
$
|
21
|
|
|
$
|
12
|
|
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
3
|
|
Interest cost on projected benefit obligation
|
165
|
|
|
41
|
|
|
52
|
|
|
24
|
|
|
27
|
|
|
9
|
|
|
13
|
|
|
6
|
|
||||||||
Expected return on plan assets
|
(286
|
)
|
|
(75
|
)
|
|
(89
|
)
|
|
(44
|
)
|
|
(44
|
)
|
|
(14
|
)
|
|
(21
|
)
|
|
(11
|
)
|
||||||||
Amortization of actuarial loss
|
49
|
|
|
11
|
|
|
18
|
|
|
6
|
|
|
12
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||||||
Amortization of prior service credit
|
(16
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(5
|
)
|
||||||||
Net periodic pension costs
|
$
|
(14
|
)
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
(4
|
)
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||||||
|
|
|
Duke
|
|
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
Duke
|
|
|
|
|||||||||||
|
Duke
|
|
|
Energy
|
|
|
Progress
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
Energy
|
|
|
|
|||||||||
(in millions)
|
Energy
|
|
|
Carolinas
|
|
|
Energy
|
|
|
Progress
|
|
|
Florida
|
|
|
Ohio
|
|
|
Indiana
|
|
|
Piedmont
|
|
||||||||
Service cost
|
$
|
90
|
|
|
$
|
30
|
|
|
$
|
26
|
|
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
4
|
|
Interest cost on projected benefit obligation
|
150
|
|
|
36
|
|
|
46
|
|
|
21
|
|
|
25
|
|
|
9
|
|
|
12
|
|
|
6
|
|
||||||||
Expected return on plan assets
|
(280
|
)
|
|
(74
|
)
|
|
(88
|
)
|
|
(42
|
)
|
|
(46
|
)
|
|
(14
|
)
|
|
(21
|
)
|
|
(12
|
)
|
||||||||
Amortization of actuarial loss
|
66
|
|
|
14
|
|
|
22
|
|
|
10
|
|
|
12
|
|
|
2
|
|
|
4
|
|
|
6
|
|
||||||||
Amortization of prior service credit
|
(16
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||||
Net periodic pension costs
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
FINANCIAL STATEMENTS
|
EMPLOYEE BENEFIT PLANS
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Duke Energy
|
15.9
|
%
|
|
16.5
|
%
|
|
12.6
|
%
|
|
19.9
|
%
|
Duke Energy Carolinas
|
19.7
|
%
|
|
21.5
|
%
|
|
18.7
|
%
|
|
21.8
|
%
|
Progress Energy
|
16.7
|
%
|
|
17.3
|
%
|
|
17.0
|
%
|
|
15.4
|
%
|
Duke Energy Progress
|
16.3
|
%
|
|
20.1
|
%
|
|
17.1
|
%
|
|
16.8
|
%
|
Duke Energy Florida
|
19.6
|
%
|
|
18.0
|
%
|
|
19.5
|
%
|
|
17.4
|
%
|
Duke Energy Ohio
|
16.1
|
%
|
|
25.8
|
%
|
|
16.5
|
%
|
|
16.0
|
%
|
Duke Energy Indiana
|
24.2
|
%
|
|
25.8
|
%
|
|
24.2
|
%
|
|
25.8
|
%
|
Piedmont
|
22.2
|
%
|
|
27.3
|
%
|
|
21.8
|
%
|
|
23.9
|
%
|
MD&A
|
DUKE ENERGY
|
•
|
New base rates were implemented in the Duke Energy Ohio Electric Base Rate Case on January 2, 2019.
|
•
|
On January 11, 2019, Duke Energy Progress filed a request with the PSCSC, which included a request for the continuation of prior deferrals requested for ice storms and hurricanes Florence, Michael and Matthew. The request was approved on January 30, 2019.
|
•
|
On January 30, 2019, Duke Energy Kentucky entered into a settlement agreement with the Attorney General of Kentucky related to the Natural Gas Base Rate Case. The settlement provides for an approximate $7 million increase in natural gas base revenue and approval of the proposed WNA mechanism. The KPSC issued its Order approving the settlement without material modification on March 27, 2019.
|
•
|
On April 1, 2019, Piedmont filed an application with the NCUC, its first general rate case in North Carolina in six years. Piedmont expects new rates arising from this proceeding to take effect by the end of 2019.
|
•
|
On May 21, 2019, Duke Energy Carolinas and Duke Energy Progress received orders from the PSCSC and revised customer rates became effective June 1, 2019. On May 31, 2019, Duke Energy Carolinas and Duke Energy Progress filed Petitions for Rehearing or Reconsideration regarding certain coal ash costs and return on equity, among other items, and await the orders on reconsideration detailing the commission's decision. Once the orders are received, Duke Energy Carolinas and Duke Energy Progress have 30 days to file a notice of appeal with the South Carolina Supreme Court.
|
•
|
On June 11, 2019, the FPSC approved the petition to recover incremental storm restoration costs for Hurricane Michael and to apply tax savings resulting from the Tax Act toward storm costs in lieu of implementing a storm surcharge. On June 13, 2019, the FPSC issued its order approving the settlement agreement for storm cost recovery related to hurricanes Irma and Nate. Storm costs are currently expected to be fully recovered by approximately year-end 2021.
|
•
|
On July 2, 2019, Duke Energy Indiana filed a general rate case with the IURC, its first general rate case in Indiana in 16 years. Hearings are expected to commence in late 2019 or early 2020, with rates to be effective in mid-2020.
|
•
|
Costs to Achieve Piedmont Merger represents charges that resulted from the Piedmont acquisition.
|
MD&A
|
DUKE ENERGY
|
•
|
Regulatory and Legislative Impacts represents charges related to rate case orders, settlements or other actions of regulators or legislative bodies.
|
•
|
Sale of Retired Plant represents the loss associated with selling Beckjord, a nonregulated generating facility in Ohio.
|
•
|
Impairment of Equity Method Investment represents an OTTI of an investment in Constitution.
|
•
|
Impacts of the Tax Act represents an AMT valuation allowance recognized related to the Tax Act.
|
|
Three Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(in millions, except per-share amounts)
|
Earnings
|
|
EPS
|
|
Earnings
|
|
EPS
|
||||||||
GAAP Reported Earnings/GAAP Reported EPS
|
$
|
820
|
|
|
$
|
1.12
|
|
|
$
|
500
|
|
|
$
|
0.71
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Costs to Achieve Piedmont Merger(a)
|
—
|
|
|
—
|
|
|
15
|
|
|
0.02
|
|
||||
Regulatory and Legislative Impacts(b)
|
—
|
|
|
—
|
|
|
136
|
|
|
0.19
|
|
||||
Discontinued Operations
|
—
|
|
|
—
|
|
|
5
|
|
|
0.01
|
|
||||
Adjusted Earnings/Adjusted Diluted EPS
|
$
|
820
|
|
|
$
|
1.12
|
|
|
$
|
656
|
|
|
$
|
0.93
|
|
(a)
|
Net of $5 million tax benefit.
|
(b)
|
Net of $43 million tax benefit.
|
|
Six Months Ended June 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(in millions, except per-share amounts)
|
Earnings
|
|
EPS
|
|
Earnings
|
|
EPS
|
||||||||
GAAP Reported Earnings/GAAP Reported EPS
|
$
|
1,720
|
|
|
$
|
2.36
|
|
|
$
|
1,120
|
|
|
$
|
1.59
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Costs to Achieve Piedmont Merger(a)
|
—
|
|
|
—
|
|
|
28
|
|
|
0.04
|
|
||||
Regulatory and Legislative Impacts(b)
|
—
|
|
|
—
|
|
|
202
|
|
|
0.29
|
|
||||
Sale of Retired Plant(c)
|
—
|
|
|
—
|
|
|
82
|
|
|
0.12
|
|
||||
Impairment of Equity Method Investment(d)
|
—
|
|
|
—
|
|
|
42
|
|
|
0.06
|
|
||||
Impacts of the Tax Act (AMT valuation allowance)
|
—
|
|
|
—
|
|
|
76
|
|
|
0.11
|
|
||||
Discontinued Operations
|
—
|
|
|
—
|
|
|
5
|
|
|
0.01
|
|
||||
Adjusted Earnings/Adjusted Diluted EPS
|
$
|
1,720
|
|
|
$
|
2.36
|
|
|
$
|
1,555
|
|
|
$
|
2.22
|
|
(a)
|
Net of $9 million tax benefit.
|
(b)
|
Net of $63 million tax benefit.
|
(c)
|
Net of $25 million tax benefit.
|
(d)
|
Net of $13 million tax benefit.
|
MD&A
|
SEGMENT RESULTS - ELECTRIC UTILITIES AND INFRASTRUCTURE
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
||||||
Operating Revenues
|
$
|
5,475
|
|
|
$
|
5,223
|
|
|
$
|
252
|
|
|
$
|
10,804
|
|
|
$
|
10,546
|
|
|
$
|
258
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fuel used in electric generation and purchased power
|
1,662
|
|
|
1,582
|
|
|
80
|
|
|
3,292
|
|
|
3,267
|
|
|
25
|
|
||||||
Operation, maintenance and other
|
1,318
|
|
|
1,395
|
|
|
(77
|
)
|
|
2,600
|
|
|
2,720
|
|
|
(120
|
)
|
||||||
Depreciation and amortization
|
951
|
|
|
838
|
|
|
113
|
|
|
1,898
|
|
|
1,673
|
|
|
225
|
|
||||||
Property and other taxes
|
297
|
|
|
279
|
|
|
18
|
|
|
598
|
|
|
553
|
|
|
45
|
|
||||||
Impairment charges
|
4
|
|
|
172
|
|
|
(168
|
)
|
|
4
|
|
|
215
|
|
|
(211
|
)
|
||||||
Total operating expenses
|
4,232
|
|
|
4,266
|
|
|
(34
|
)
|
|
8,392
|
|
|
8,428
|
|
|
(36
|
)
|
||||||
Gains on Sales of Other Assets and Other, net
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||||
Operating Income
|
1,246
|
|
|
957
|
|
|
289
|
|
|
2,412
|
|
|
2,119
|
|
|
293
|
|
||||||
Other Income and Expenses, net
|
89
|
|
|
91
|
|
|
(2
|
)
|
|
180
|
|
|
179
|
|
|
1
|
|
||||||
Interest Expense
|
330
|
|
|
316
|
|
|
14
|
|
|
668
|
|
|
633
|
|
|
35
|
|
||||||
Income Before Income Taxes
|
1,005
|
|
|
732
|
|
|
273
|
|
|
1,924
|
|
|
1,665
|
|
|
259
|
|
||||||
Income Tax Expense
|
196
|
|
|
157
|
|
|
39
|
|
|
365
|
|
|
340
|
|
|
25
|
|
||||||
Segment Income
|
$
|
809
|
|
|
$
|
575
|
|
|
$
|
234
|
|
|
$
|
1,559
|
|
|
$
|
1,325
|
|
|
$
|
234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Duke Energy Carolinas GWh sales
|
21,604
|
|
|
22,272
|
|
|
(668
|
)
|
|
43,432
|
|
|
44,899
|
|
|
(1,467
|
)
|
||||||
Duke Energy Progress GWh sales
|
16,222
|
|
|
15,896
|
|
|
326
|
|
|
32,570
|
|
|
33,122
|
|
|
(552
|
)
|
||||||
Duke Energy Florida GWh sales
|
11,151
|
|
|
10,304
|
|
|
847
|
|
|
19,472
|
|
|
19,423
|
|
|
49
|
|
||||||
Duke Energy Ohio GWh sales
|
5,660
|
|
|
6,147
|
|
|
(487
|
)
|
|
11,824
|
|
|
12,219
|
|
|
(395
|
)
|
||||||
Duke Energy Indiana GWh sales
|
7,437
|
|
|
8,301
|
|
|
(864
|
)
|
|
15,470
|
|
|
16,786
|
|
|
(1,316
|
)
|
||||||
Total Electric Utilities and Infrastructure GWh sales
|
62,074
|
|
|
62,920
|
|
|
(846
|
)
|
|
122,768
|
|
|
126,449
|
|
|
(3,681
|
)
|
||||||
Net proportional MW capacity in operation
|
|
|
|
|
|
|
|
49,725
|
|
|
49,297
|
|
|
428
|
|
•
|
a $155 million increase in retail pricing primarily due to the prior year Duke Energy Carolinas North Carolina rate case and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service;
|
•
|
a $66 million increase in fuel related revenues; and
|
•
|
a $19 million increase in weather-normal retail sales volumes.
|
•
|
a $168 million decrease in impairment charges primarily due to the impacts associated with the prior year Duke Energy Carolinas North Carolina rate case; and
|
•
|
a $77 million decrease in operation, maintenance and other expense primarily due to lower payroll and benefit costs resulting from prior year workforce reductions.
|
•
|
a $113 million increase in depreciation and amortization expense primarily due to higher amortization of deferred coal ash costs, additional plant in service and new depreciation rates associated with the prior year Duke Energy Carolinas North Carolina rate case and Duke Energy Florida's Citrus County CC being placed in service;
|
•
|
an $80 million increase in fuel used in electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from the prior year at Duke Energy Progress; and
|
•
|
an $18 million increase in property and other taxes primarily due to higher property taxes for additional plant in service at Duke Energy Florida.
|
MD&A
|
SEGMENT RESULTS - ELECTRIC UTILITIES AND INFRASTRUCTURE
|
•
|
a $330 million increase in retail pricing primarily due to the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service; and
|
•
|
a $34 million increase in fuel related revenues.
|
•
|
a $76 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year; and
|
•
|
a $35 million decrease in rider revenues primarily due to excess deferred taxes and energy efficiency programs, partially offset by a decrement rider relating to nuclear decommissioning that ended in the prior year at Duke Energy Carolinas.
|
•
|
a $211 million decrease in impairment charges primarily due to the impacts associated with the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases; and
|
•
|
a $120 million decrease in operation, maintenance and other expense primarily due to lower payroll and benefit costs resulting from prior year workforce reductions.
|
•
|
a $225 million increase in depreciation and amortization expense primarily due to higher amortization of deferred coal ash costs, additional plant in service and new depreciation rates associated with the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases and Duke Energy Florida's Citrus County CC being placed in service;
|
•
|
a $45 million increase in property and other taxes primarily due to higher property taxes for additional plant in service at Duke Energy Florida and a favorable sales and use tax credit in the prior year at Duke Energy Progress; and
|
•
|
a $25 million increase in fuel used in electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from the prior year at Duke Energy Progress.
|
MD&A
|
SEGMENT RESULTS - ELECTRIC UTILITIES AND INFRASTRUCTURE
|
MD&A
|
SEGMENT RESULTS - GAS UTILITIES AND INFRASTRUCTURE
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
||||||
Operating Revenues
|
$
|
306
|
|
|
$
|
318
|
|
|
$
|
(12
|
)
|
|
$
|
1,062
|
|
|
$
|
1,045
|
|
|
$
|
17
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of natural gas
|
76
|
|
|
89
|
|
|
(13
|
)
|
|
403
|
|
|
402
|
|
|
1
|
|
||||||
Operation, maintenance and other
|
107
|
|
|
103
|
|
|
4
|
|
|
217
|
|
|
211
|
|
|
6
|
|
||||||
Depreciation and amortization
|
63
|
|
|
60
|
|
|
3
|
|
|
128
|
|
|
121
|
|
|
7
|
|
||||||
Property and other taxes
|
27
|
|
|
26
|
|
|
1
|
|
|
60
|
|
|
57
|
|
|
3
|
|
||||||
Total operating expenses
|
273
|
|
|
278
|
|
|
(5
|
)
|
|
808
|
|
|
791
|
|
|
17
|
|
||||||
Operating Income
|
33
|
|
|
40
|
|
|
(7
|
)
|
|
254
|
|
|
254
|
|
|
—
|
|
||||||
Other Income and Expenses, net
|
37
|
|
|
22
|
|
|
15
|
|
|
77
|
|
|
(13
|
)
|
|
90
|
|
||||||
Interest Expense
|
27
|
|
|
26
|
|
|
1
|
|
|
57
|
|
|
53
|
|
|
4
|
|
||||||
Income Before Income Taxes
|
43
|
|
|
36
|
|
|
7
|
|
|
274
|
|
|
188
|
|
|
86
|
|
||||||
Income Tax Expense
|
3
|
|
|
8
|
|
|
(5
|
)
|
|
8
|
|
|
44
|
|
|
(36
|
)
|
||||||
Segment Income
|
$
|
40
|
|
|
$
|
28
|
|
|
$
|
12
|
|
|
$
|
266
|
|
|
$
|
144
|
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Piedmont LDC throughput (dekatherms)
|
104,684,733
|
|
|
116,839,962
|
|
|
(12,155,229
|
)
|
|
256,350,657
|
|
|
271,741,341
|
|
|
(15,390,684
|
)
|
||||||
Duke Energy Midwest LDC throughput (Mcf)
|
13,742,907
|
|
|
15,615,050
|
|
|
(1,872,143
|
)
|
|
52,281,179
|
|
|
52,741,115
|
|
|
(459,936
|
)
|
•
|
an $11 million decrease at Piedmont primarily due to lower residential sales volumes due to unfavorable weather in the current year and a reduction of rates in South Carolina; and
|
•
|
a $6 million decrease in the Midwest primarily due to lower natural gas costs passed through to customers and unfavorable weather in the current year.
|
•
|
a $4 million increase primarily due to North Carolina and Tennessee IMR increases.
|
•
|
a $13 million decrease in cost of natural gas primarily due to lower volumes sold at Piedmont and lower natural gas prices in the Midwest.
|
•
|
a $4 million increase in operation, maintenance and other expense primarily due to higher employee benefit expenses and information technology outside services at Piedmont; and
|
•
|
a $3 million increase in depreciation and amortization expense primarily due to additional plant in service.
|
•
|
an $11 million increase primarily due to North Carolina and Tennessee IMR increases;
|
•
|
a $9 million increase primarily due to higher natural gas prices associated with off-system sales; and
|
•
|
an $8 million increase primarily due to NCUC approval related to tax reform accounting from fixed rate contracts.
|
MD&A
|
SEGMENT RESULTS - GAS UTILITIES AND INFRASTRUCTURE
|
•
|
a $6 million decrease primarily due to a reduction of rates in South Carolina;
|
•
|
a $4 million decrease due to lower natural gas costs passed through to customers in the Midwest, due to lower natural gas prices; and
|
•
|
a $2 million decrease due to unfavorable weather in the current year for the Midwest.
|
•
|
a $6 million increase in operation, maintenance and other expense primarily due to information technology outside services and higher gas operations labor costs;
|
•
|
a $5 million increase in cost of natural gas at Piedmont primarily due to the impact of higher natural gas prices on off-system sales and unbilled revenue; and
|
•
|
a $3 million increase in property and other taxes primarily due to higher property tax expense related to additional plant in service.
|
•
|
a $4 million decrease in cost of natural gas sold in the Midwest primarily due to lower natural gas prices.
|
MD&A
|
SEGMENT RESULTS - COMMERCIAL RENEWABLES
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
||||||
Operating Revenues
|
$
|
118
|
|
|
$
|
119
|
|
|
$
|
(1
|
)
|
|
$
|
224
|
|
|
$
|
220
|
|
|
$
|
4
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operation, maintenance and other
|
64
|
|
|
69
|
|
|
(5
|
)
|
|
130
|
|
|
124
|
|
|
6
|
|
||||||
Depreciation and amortization
|
40
|
|
|
38
|
|
|
2
|
|
|
80
|
|
|
76
|
|
|
4
|
|
||||||
Property and other taxes
|
6
|
|
|
6
|
|
|
—
|
|
|
12
|
|
|
13
|
|
|
(1
|
)
|
||||||
Total operating expenses
|
110
|
|
|
113
|
|
|
(3
|
)
|
|
222
|
|
|
213
|
|
|
9
|
|
||||||
Operating Income
|
8
|
|
|
6
|
|
|
2
|
|
|
2
|
|
|
7
|
|
|
(5
|
)
|
||||||
Other Income and Expenses, net
|
(8
|
)
|
|
18
|
|
|
(26
|
)
|
|
(10
|
)
|
|
20
|
|
|
(30
|
)
|
||||||
Interest Expense
|
22
|
|
|
23
|
|
|
(1
|
)
|
|
43
|
|
|
45
|
|
|
(2
|
)
|
||||||
(Loss) Income Before Income Taxes
|
(22
|
)
|
|
1
|
|
|
(23
|
)
|
|
(51
|
)
|
|
(18
|
)
|
|
(33
|
)
|
||||||
Income Tax Benefit
|
(24
|
)
|
|
(36
|
)
|
|
12
|
|
|
(59
|
)
|
|
(75
|
)
|
|
16
|
|
||||||
Less: Loss Attributable to Noncontrolling Interests
|
(84
|
)
|
|
(1
|
)
|
|
(83
|
)
|
|
(91
|
)
|
|
(1
|
)
|
|
(90
|
)
|
||||||
Segment Income
|
$
|
86
|
|
|
$
|
38
|
|
|
$
|
48
|
|
|
$
|
99
|
|
|
$
|
58
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Renewable plant production, GWh
|
2,314
|
|
|
2,471
|
|
|
(157
|
)
|
|
4,382
|
|
|
4,651
|
|
|
(269
|
)
|
||||||
Net proportional MW capacity in operation(a)
|
|
|
|
|
|
|
|
3,157
|
|
|
2,951
|
|
|
206
|
|
(a)
|
Certain projects are included in tax equity structures where investors have differing interests in the project's economic attributes. One hundred percent of the tax equity project's capacity is included in the table above.
|
MD&A
|
SEGMENT RESULTS - COMMERCIAL RENEWABLES
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
||||||
Operating Revenues
|
$
|
25
|
|
|
$
|
32
|
|
|
$
|
(7
|
)
|
|
$
|
46
|
|
|
$
|
67
|
|
|
$
|
(21
|
)
|
Operating Expenses
|
11
|
|
|
59
|
|
|
(48
|
)
|
|
39
|
|
|
113
|
|
|
(74
|
)
|
||||||
Gains (Losses) on Sales of Other Assets and Other, net
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
(99
|
)
|
|
99
|
|
||||||
Operating Income (Loss)
|
14
|
|
|
(25
|
)
|
|
39
|
|
|
7
|
|
|
(145
|
)
|
|
152
|
|
||||||
Other Income and Expenses, net
|
30
|
|
|
27
|
|
|
3
|
|
|
74
|
|
|
41
|
|
|
33
|
|
||||||
Interest Expense
|
180
|
|
|
164
|
|
|
16
|
|
|
351
|
|
|
321
|
|
|
30
|
|
||||||
Loss Before Income Taxes
|
(136
|
)
|
|
(162
|
)
|
|
26
|
|
|
(270
|
)
|
|
(425
|
)
|
|
155
|
|
||||||
Income Tax Benefit
|
(33
|
)
|
|
(28
|
)
|
|
(5
|
)
|
|
(78
|
)
|
|
(27
|
)
|
|
(51
|
)
|
||||||
Less: Net Income Attributable to Noncontrolling Interests
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
4
|
|
|
(4
|
)
|
||||||
Less: Preferred Dividends
|
12
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Net Loss
|
$
|
(115
|
)
|
|
$
|
(136
|
)
|
|
$
|
21
|
|
|
$
|
(204
|
)
|
|
$
|
(402
|
)
|
|
$
|
198
|
|
MD&A
|
DUKE ENERGY CAROLINAS
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
3,457
|
|
|
$
|
3,435
|
|
|
$
|
22
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power
|
867
|
|
|
880
|
|
|
(13
|
)
|
|||
Operation, maintenance and other
|
881
|
|
|
950
|
|
|
(69
|
)
|
|||
Depreciation and amortization
|
663
|
|
|
561
|
|
|
102
|
|
|||
Property and other taxes
|
155
|
|
|
147
|
|
|
8
|
|
|||
Impairment charges
|
5
|
|
|
190
|
|
|
(185
|
)
|
|||
Total operating expenses
|
2,571
|
|
|
2,728
|
|
|
(157
|
)
|
|||
Losses on Sales of Other Assets and Other, net
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Operating Income
|
886
|
|
|
706
|
|
|
180
|
|
|||
Other Income and Expenses, net
|
72
|
|
|
74
|
|
|
(2
|
)
|
|||
Interest Expense
|
227
|
|
|
217
|
|
|
10
|
|
|||
Income Before Income Taxes
|
731
|
|
|
563
|
|
|
168
|
|
|||
Income Tax Expense
|
137
|
|
|
123
|
|
|
14
|
|
|||
Net Income
|
$
|
594
|
|
|
$
|
440
|
|
|
$
|
154
|
|
Increase (Decrease) over prior year
|
2019
|
|
Residential sales
|
(4.7
|
)%
|
General service sales
|
(1.0
|
)%
|
Industrial sales
|
(1.6
|
)%
|
Wholesale power sales
|
(15.7
|
)%
|
Joint dispatch sales
|
13.0
|
%
|
Total sales
|
(3.3
|
)%
|
Average number of customers
|
2.1
|
%
|
•
|
a $106 million increase in retail pricing due to the impacts of the prior year North Carolina rate case and the current year South Carolina rate case.
|
•
|
a $44 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year; and
|
•
|
a $35 million decrease in rider revenues primarily due to excess deferred taxes and energy efficiency programs, partially offset by a decrement rider relating to nuclear decommissioning that ended in the prior year.
|
•
|
a $185 million decrease in impairment charges primarily due to impacts of the prior year North Carolina rate order and charges related to coal ash costs in South Carolina; and
|
•
|
a $69 million decrease in operation, maintenance and other expense primarily due to decreased labor costs, partially offset by higher distribution maintenance costs and higher storm restoration costs.
|
•
|
a $102 million increase in depreciation and amortization expense primarily due to additional plant in service, new depreciation rates associated with the prior year North Carolina rate case and higher amortization of deferred coal ash costs associated with the prior year North Carolina rate case.
|
MD&A
|
DUKE ENERGY CAROLINAS
|
MD&A
|
PROGRESS ENERGY
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
5,316
|
|
|
$
|
5,074
|
|
|
$
|
242
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power
|
1,913
|
|
|
1,871
|
|
|
42
|
|
|||
Operation, maintenance and other
|
1,173
|
|
|
1,233
|
|
|
(60
|
)
|
|||
Depreciation and amortization
|
881
|
|
|
764
|
|
|
117
|
|
|||
Property and other taxes
|
280
|
|
|
254
|
|
|
26
|
|
|||
Impairment charges
|
—
|
|
|
33
|
|
|
(33
|
)
|
|||
Total operating expenses
|
4,247
|
|
|
4,155
|
|
|
92
|
|
|||
(Losses) Gains on Sales of Other Assets and Other, net
|
(1
|
)
|
|
12
|
|
|
(13
|
)
|
|||
Operating Income
|
1,068
|
|
|
931
|
|
|
137
|
|
|||
Other Income and Expenses, net
|
65
|
|
|
77
|
|
|
(12
|
)
|
|||
Interest Expense
|
438
|
|
|
412
|
|
|
26
|
|
|||
Income Before Income Taxes
|
695
|
|
|
596
|
|
|
99
|
|
|||
Income Tax Expense
|
118
|
|
|
92
|
|
|
26
|
|
|||
Net Income
|
577
|
|
|
504
|
|
|
73
|
|
|||
Less: Net Income Attributable to Noncontrolling Interests
|
—
|
|
|
4
|
|
|
(4
|
)
|
|||
Net Income Attributable to Parent
|
$
|
577
|
|
|
$
|
500
|
|
|
$
|
77
|
|
•
|
a $193 million increase in retail pricing primarily due to the impacts of the prior year Duke Energy Progress North Carolina rate case, Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service and annual increases from the 2017 Settlement Agreement;
|
•
|
a $54 million increase in fuel revenues primarily related to increased fuel cost recovery due to extreme weather in the prior year at Duke Energy Progress;
|
•
|
a $17 million increase in weather-normal retail sales volumes at Duke Energy Florida;
|
•
|
a $12 million increase in transmission revenues related to the Fixed Bill program at Duke Energy Florida; and
|
•
|
an $11 million increase in rider revenues primarily related to energy efficiency programs at Duke Energy Progress.
|
•
|
a $22 million decrease in fuel and capacity revenues primarily due to a decrease in fuel and capacity rates billed to retail customers at Duke Energy Florida;
|
•
|
a $14 million decrease in retail rider revenues at Duke Energy Progress primarily related to decreased revenue requirements in the current year; and
|
•
|
a $13 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year at Duke Energy Progress.
|
•
|
a $117 million increase in depreciation and amortization expense primarily due to higher amortization of deferred coal ash costs, new depreciation rates associated with the prior year Duke Energy Progress North Carolina rate case and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service;
|
•
|
a $42 million increase in fuel used in electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from prior year at Duke Energy Progress, partially offset by lower purchased power at Duke Energy Florida; and
|
•
|
a $26 million increase in property and other taxes primarily due to higher property taxes for additional plant in service at Duke Energy Florida and a favorable sales and use tax credit in the prior year at Duke Energy Progress.
|
MD&A
|
PROGRESS ENERGY
|
•
|
a $60 million decrease in operation, maintenance and other expense primarily due to prior year impacts associated with the Duke Energy Progress North Carolina rate case and lower employee benefit expenses at Duke Energy Progress; and
|
•
|
a $33 million decrease in impairment charges primarily due to prior year impacts associated with the Duke Energy Progress North Carolina rate case.
|
MD&A
|
DUKE ENERGY PROGRESS
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
2,871
|
|
|
$
|
2,751
|
|
|
$
|
120
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power
|
994
|
|
|
917
|
|
|
77
|
|
|||
Operation, maintenance and other
|
692
|
|
|
756
|
|
|
(64
|
)
|
|||
Depreciation and amortization
|
541
|
|
|
470
|
|
|
71
|
|
|||
Property and other taxes
|
85
|
|
|
75
|
|
|
10
|
|
|||
Impairment charges
|
—
|
|
|
33
|
|
|
(33
|
)
|
|||
Total operating expenses
|
2,312
|
|
|
2,251
|
|
|
61
|
|
|||
Gains on Sales of Other Assets and Other, net
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||
Operating Income
|
559
|
|
|
502
|
|
|
57
|
|
|||
Other Income and Expenses, net
|
48
|
|
|
37
|
|
|
11
|
|
|||
Interest Expense
|
158
|
|
|
159
|
|
|
(1
|
)
|
|||
Income Before Income Taxes
|
449
|
|
|
380
|
|
|
69
|
|
|||
Income Tax Expense
|
77
|
|
|
64
|
|
|
13
|
|
|||
Net Income
|
$
|
372
|
|
|
$
|
316
|
|
|
$
|
56
|
|
•
|
a $68 million increase in retail pricing due to the impacts of the prior year North Carolina rate case and the current year South Carolina rate case;
|
•
|
a $54 million increase in fuel revenues primarily related to increased fuel cost recovery due to extreme weather in the prior year; and
|
•
|
an $11 million increase in rider revenues primarily related to energy efficiency programs.
|
•
|
a $13 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year.
|
•
|
a $77 million increase in fuel used in electric generation and purchased power primarily due to a higher deferred fuel balance and an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from prior year, partially offset by lower demand and changes in generation mix;
|
•
|
a $71 million increase in depreciation and amortization expense primarily due to higher amortization of deferred coal ash costs and new depreciation rates associated with the prior year North Carolina rate case, partially offset by the amortization credit for the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement increase from prior year; and
|
•
|
a $10 million increase in property and other taxes primarily due to a favorable sales and use tax credit in the prior year.
|
•
|
a $64 million decrease in operation, maintenance and other expense primarily due to prior year impacts associated with the North Carolina rate case and lower employee benefit and outage costs; and
|
MD&A
|
DUKE ENERGY PROGRESS
|
•
|
a $33 million decrease in impairment charges due to prior year impacts associated with the North Carolina rate case.
|
MD&A
|
DUKE ENERGY FLORIDA
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
2,439
|
|
|
$
|
2,318
|
|
|
$
|
121
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power
|
919
|
|
|
953
|
|
|
(34
|
)
|
|||
Operation, maintenance and other
|
474
|
|
|
474
|
|
|
—
|
|
|||
Depreciation and amortization
|
340
|
|
|
294
|
|
|
46
|
|
|||
Property and other taxes
|
196
|
|
|
179
|
|
|
17
|
|
|||
Total operating expenses
|
1,929
|
|
|
1,900
|
|
|
29
|
|
|||
Losses on Sales of Other Assets and Other, net
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Operating Income
|
509
|
|
|
418
|
|
|
91
|
|
|||
Other Income and Expenses, net
|
25
|
|
|
47
|
|
|
(22
|
)
|
|||
Interest Expense
|
165
|
|
|
137
|
|
|
28
|
|
|||
Income Before Income Taxes
|
369
|
|
|
328
|
|
|
41
|
|
|||
Income Tax Expense
|
72
|
|
|
57
|
|
|
15
|
|
|||
Net Income
|
$
|
297
|
|
|
$
|
271
|
|
|
$
|
26
|
|
•
|
a $125 million increase in retail pricing due to base rate adjustments related to Citrus County CC being placed in service and annual increases from the 2017 Settlement Agreement;
|
•
|
a $17 million increase in weather-normal retail sales volumes driven by residential growth; and
|
•
|
a $12 million increase in other revenues primarily due to increased transmission revenues related to the Fixed Bill program which began later in 2018 and non-regulated products and services revenues.
|
•
|
a $22 million decrease in fuel and capacity revenues primarily due to a decrease in fuel and capacity rates billed to retail customers; and
|
•
|
a $14 million decrease in retail rider revenues primarily related to decreased revenue requirements in the current year.
|
•
|
a $46 million increase in depreciation and amortization expense primarily due to base rate adjustments related to Citrus County CC being placed in service, other additional plant in service and increases resulting from the 2018 Crystal River Unit 3 nuclear decommissioning cost study; and
|
•
|
a $17 million increase in property and other taxes primarily due to higher property taxes from additional plant in service.
|
•
|
a $34 million decrease in fuel used in electric generation and purchased power primarily due to lower purchased power, partially offset by higher deferred fuel and capacity expenses.
|
MD&A
|
DUKE ENERGY FLORIDA
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
|
|
|
|
|
||||||
Regulated electric
|
$
|
691
|
|
|
$
|
682
|
|
|
$
|
9
|
|
Regulated natural gas
|
273
|
|
|
277
|
|
|
(4
|
)
|
|||
Nonregulated electric and other
|
—
|
|
|
24
|
|
|
(24
|
)
|
|||
Total operating revenues
|
964
|
|
|
983
|
|
|
(19
|
)
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power – regulated
|
179
|
|
|
185
|
|
|
(6
|
)
|
|||
Fuel used in electric generation and purchased power – nonregulated
|
—
|
|
|
29
|
|
|
(29
|
)
|
|||
Cost of natural gas
|
64
|
|
|
69
|
|
|
(5
|
)
|
|||
Operation, maintenance and other
|
255
|
|
|
261
|
|
|
(6
|
)
|
|||
Depreciation and amortization
|
130
|
|
|
132
|
|
|
(2
|
)
|
|||
Property and other taxes
|
158
|
|
|
145
|
|
|
13
|
|
|||
Total operating expenses
|
786
|
|
|
821
|
|
|
(35
|
)
|
|||
Losses on Sales of Other Assets and Other, net
|
—
|
|
|
(106
|
)
|
|
106
|
|
|||
Operating Income
|
178
|
|
|
56
|
|
|
122
|
|
|||
Other Income and Expenses, net
|
15
|
|
|
14
|
|
|
1
|
|
|||
Interest Expense
|
54
|
|
|
45
|
|
|
9
|
|
|||
Income Before Income Taxes
|
139
|
|
|
25
|
|
|
114
|
|
|||
Income Tax Expense
|
23
|
|
|
4
|
|
|
19
|
|
|||
Net Income
|
$
|
116
|
|
|
$
|
21
|
|
|
$
|
95
|
|
|
Electric
|
Natural Gas
|
||
Increase (Decrease) over prior year
|
2019
|
|
2019
|
|
Residential sales
|
(7.2
|
)%
|
(1.4
|
)%
|
General service sales
|
(3.5
|
)%
|
0.1
|
%
|
Industrial sales
|
(2.1
|
)%
|
(1.0
|
)%
|
Wholesale electric power sales
|
65.3
|
%
|
n/a
|
|
Other natural gas sales
|
n/a
|
|
(1.1
|
)%
|
Total sales
|
(3.2
|
)%
|
(0.9
|
)%
|
Average number of customers
|
0.6
|
%
|
0.8
|
%
|
MD&A
|
DUKE ENERGY OHIO
|
•
|
a $25 million decrease in fuel related revenues primarily due to a decrease in sales volumes;
|
•
|
a $16 million decrease in rider revenues primarily related to the implementation of new base rates;
|
•
|
a $14 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year;
|
•
|
a $12 million decrease in FTR rider revenues; and
|
•
|
a $6 million decrease in OVEC revenues.
|
•
|
a $38 million increase in retail pricing primarily due to rate case impacts; and
|
•
|
a $12 million increase in point-to-point transmission revenues.
|
•
|
a $35 million decrease in fuel used in electric generation and purchased power expense due to the prior year outage at East Bend Station and the deferral of OVEC related purchased power costs.
|
•
|
a $13 million increase in property and other taxes primarily due to a higher tax base.
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
1,482
|
|
|
$
|
1,469
|
|
|
$
|
13
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Fuel used in electric generation and purchased power
|
486
|
|
|
458
|
|
|
28
|
|
|||
Operation, maintenance and other
|
377
|
|
|
378
|
|
|
(1
|
)
|
|||
Depreciation and amortization
|
263
|
|
|
256
|
|
|
7
|
|
|||
Property and other taxes
|
39
|
|
|
40
|
|
|
(1
|
)
|
|||
Total operating expenses
|
1,165
|
|
|
1,132
|
|
|
33
|
|
|||
Operating Income
|
317
|
|
|
337
|
|
|
(20
|
)
|
|||
Other Income and Expenses, net
|
27
|
|
|
13
|
|
|
14
|
|
|||
Interest Expense
|
71
|
|
|
83
|
|
|
(12
|
)
|
|||
Income Before Income Taxes
|
273
|
|
|
267
|
|
|
6
|
|
|||
Income Tax Expense
|
66
|
|
|
69
|
|
|
(3
|
)
|
|||
Net Income
|
$
|
207
|
|
|
$
|
198
|
|
|
$
|
9
|
|
MD&A
|
DUKE ENERGY INDIANA
|
Increase (Decrease) over prior year
|
2019
|
|
Residential sales
|
(6.3
|
)%
|
General service sales
|
(1.7
|
)%
|
Industrial sales
|
(1.6
|
)%
|
Wholesale power sales
|
(33.1
|
)%
|
Total sales
|
(7.8
|
)%
|
Average number of customers
|
1.3
|
%
|
•
|
a $25 million increase in fuel revenues primarily due to higher fuel rates billed to customers, partially offset by lower wholesale fuel revenues due to the expiration of a contract with a wholesale customer.
|
•
|
a $10 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year; and
|
•
|
a $1 million decrease in weather-normal retail sales volumes.
|
•
|
a $28 million increase in fuel used in electric generation and purchased power expense primarily due to higher amortization of deferred fuel costs and higher purchased power, partially offset by lower natural gas and coal costs; and
|
•
|
a $7 million increase in depreciation and amortization expense primarily due to the regulatory liability related to Edwardsport IGCC plant being fully amortized in the prior year.
|
MD&A
|
PIEDMONT
|
|
Six Months Ended June 30,
|
||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Operating Revenues
|
$
|
788
|
|
|
$
|
768
|
|
|
$
|
20
|
|
Operating Expenses
|
|
|
|
|
|
||||||
Cost of natural gas
|
338
|
|
|
333
|
|
|
5
|
|
|||
Operation, maintenance and other
|
163
|
|
|
167
|
|
|
(4
|
)
|
|||
Depreciation and amortization
|
84
|
|
|
78
|
|
|
6
|
|
|||
Property and other taxes
|
25
|
|
|
24
|
|
|
1
|
|
|||
Total operating expenses
|
610
|
|
|
602
|
|
|
8
|
|
|||
Operating Income
|
178
|
|
|
166
|
|
|
12
|
|
|||
Other Income and Expenses, net
|
12
|
|
|
9
|
|
|
3
|
|
|||
Interest Expense
|
43
|
|
|
41
|
|
|
2
|
|
|||
Income Before Income Taxes
|
147
|
|
|
134
|
|
|
13
|
|
|||
Income Tax Expense
|
32
|
|
|
32
|
|
|
—
|
|
|||
Net Income
|
$
|
115
|
|
|
$
|
102
|
|
|
$
|
13
|
|
•
|
an $11 million increase primarily due to North Carolina and Tennessee IMR increases;
|
•
|
a $9 million increase primarily due to higher natural gas prices associated with increased off-system sales; and
|
•
|
an $8 million increase primarily due to NCUC approval related to tax reform accounting from fixed rate contracts.
|
•
|
a $6 million decrease primarily due to a reduction of rates in South Carolina.
|
•
|
a $6 million increase in depreciation and amortization expense primarily due to additional plant in service; and
|
•
|
a $5 million increase in cost of natural gas primarily due to the impact of higher natural gas prices on off-system sales and unbilled revenue.
|
•
|
a $4 million decrease in operations, maintenance and other expense primarily due to lower labor costs and a portion of rent expense being charged to shared services in current year.
|
MD&A
|
PIEDMONT
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
||
Cash flows provided by (used in):
|
|
|
|
|
||||
Operating activities
|
|
$
|
3,056
|
|
|
$
|
3,302
|
|
Investing activities
|
|
(5,788
|
)
|
|
(4,645
|
)
|
||
Financing activities
|
|
2,622
|
|
|
1,265
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
|
(110
|
)
|
|
(78
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
591
|
|
|
505
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
481
|
|
|
$
|
427
|
|
|
|
Six Months Ended
|
||||||||||
|
|
June 30,
|
||||||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Net income
|
|
$
|
1,641
|
|
|
$
|
1,124
|
|
|
$
|
517
|
|
Non-cash adjustments to net income
|
|
2,921
|
|
|
3,082
|
|
|
(161
|
)
|
|||
Contributions to qualified pension plans
|
|
—
|
|
|
(141
|
)
|
|
141
|
|
|||
Payments for asset retirement obligations
|
|
(336
|
)
|
|
(245
|
)
|
|
(91
|
)
|
|||
Payment for disposal of other assets
|
|
—
|
|
|
(105
|
)
|
|
105
|
|
|||
Working capital
|
|
(1,170
|
)
|
|
(413
|
)
|
|
(757
|
)
|
|||
Net cash provided by operating activities
|
|
$
|
3,056
|
|
|
$
|
3,302
|
|
|
$
|
(246
|
)
|
MD&A
|
LIQUIDITY AND CAPITAL RESOURCES
|
•
|
a $757 million increase in cash outflows from working capital primarily due to fluctuations in coal stock inventory, fluctuations of payables balances due primarily to storm costs and timing and increases in federal tax receivables, partially offset by fluctuations in accounts receivable balances due to higher receivables at December 31, 2018; and
|
•
|
a $91 million increase in payments for asset retirement obligations.
|
•
|
a $356 million increase in net income after adjustment for non-cash items due primarily to increases in revenues as a result of rate increases in the current year, partially offset by decreases in current year non-cash adjustments;
|
•
|
a $141 million decrease in contributions to qualified pension plans; and
|
•
|
a $105 million payment for disposal of Beckjord in the prior year.
|
|
|
Six Months Ended
|
||||||||||
|
|
June 30,
|
||||||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Capital, investment and acquisition expenditures
|
|
$
|
(5,627
|
)
|
|
$
|
(4,515
|
)
|
|
$
|
(1,112
|
)
|
Other investing items
|
|
(161
|
)
|
|
(130
|
)
|
|
(31
|
)
|
|||
Net cash used in investing activities
|
|
$
|
(5,788
|
)
|
|
$
|
(4,645
|
)
|
|
$
|
(1,143
|
)
|
|
|
Six Months Ended
|
||||||||||
|
|
June 30,
|
||||||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
Variance
|
|
|||
Issuances of long-term debt, net
|
|
$
|
2,467
|
|
|
$
|
537
|
|
|
$
|
1,930
|
|
Issuances of common stock
|
|
27
|
|
|
820
|
|
|
(793
|
)
|
|||
Issuances of preferred stock
|
|
973
|
|
|
—
|
|
|
973
|
|
|||
Notes payable and commercial paper
|
|
324
|
|
|
1,131
|
|
|
(807
|
)
|
|||
Dividends paid
|
|
(1,312
|
)
|
|
(1,199
|
)
|
|
(113
|
)
|
|||
Other financing items
|
|
143
|
|
|
(24
|
)
|
|
167
|
|
|||
Net cash provided by financing activities
|
|
$
|
2,622
|
|
|
$
|
1,265
|
|
|
$
|
1,357
|
|
•
|
a $973 million increase in proceeds from the issuance of preferred stock; and
|
•
|
a $1,930 million increase in proceeds from net issuances of long-term debt primarily due to the timing of issuances and redemptions of long-term debt.
|
•
|
an $807 million decrease in net proceeds from issuances of notes payable and commercial paper primarily due to the use of proceeds from the preferred stock issuance and increased long-term debt issuances to pay down outstanding commercial paper; and
|
•
|
a $793 million decrease in proceeds from the issuance of common stock due primarily to prior year issuances under equity forward agreements.
|
MD&A
|
OTHER MATTERS
|
MD&A
|
OTHER MATTERS
|
OTHER INFORMATION
|
|
EXHIBITS
|
|
|
|
|
|
|
Duke
|
|
|
|
Duke
|
|
Duke
|
|
Duke
|
|
Duke
|
|
|
Exhibit
|
|
Duke
|
|
Energy
|
|
Progress
|
|
Energy
|
|
Energy
|
|
Energy
|
|
Energy
|
|
|
|
Number
|
|
Energy
|
|
Carolinas
|
|
Energy
|
|
Progress
|
|
Florida
|
|
Ohio
|
|
Indiana
|
|
Piedmont
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
4.2
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
10.2
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*10.3
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
||
*31.1.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*31.1.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*31.1.3
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
||
*31.1.4
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
||
*31.1.5
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
||
*31.1.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
||
*31.1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
EXHIBITS
|
|
*31.1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
*31.2.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*31.2.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*31.2.3
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
||
*31.2.4
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
||
*31.2.5
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
||
*31.2.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
||
*31.2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
||
*31.2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
*32.1.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*32.1.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*32.1.3
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
||
*32.1.4
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
||
*32.1.5
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
||
*32.1.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
||
*32.1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
||
*32.1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
*32.2.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*32.2.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
||
*32.2.3
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
EXHIBITS
|
|
*32.2.4
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
||
*32.2.5
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
||
*32.2.6
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
||
*32.2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
||
*32.2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
*101.INS
|
XBRL Instance Document (this does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
*101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
*101.CAL
|
XBRL Taxonomy Calculation Linkbase Document.
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
*101.LAB
|
XBRL Taxonomy Label Linkbase Document.
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
*101.PRE
|
XBRL Taxonomy Presentation Linkbase Document.
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
*101.DEF
|
XBRL Taxonomy Definition Linkbase Document.
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
|
X
|
SIGNATURES
|
|
|
|
DUKE ENERGY CORPORATION
DUKE ENERGY CAROLINAS, LLC
PROGRESS ENERGY, INC.
DUKE ENERGY PROGRESS, LLC
DUKE ENERGY FLORIDA, LLC
DUKE ENERGY OHIO, INC.
DUKE ENERGY INDIANA, LLC
PIEDMONT NATURAL GAS COMPANY, INC.
|
|
|
|
Date:
|
August 6, 2019
|
/s/ STEVEN K. YOUNG
|
|
|
Steven K. Young
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
|
|
|
Date:
|
August 6, 2019
|
/s/ DWIGHT L. JACOBS
|
|
|
Dwight L. Jacobs
Senior Vice President, Chief Accounting Officer, Tax and Controller (Principal Accounting Officer) |
1
|
Project Description
|
2
|
General Scope of Work
|
3
|
Description of Major Equipment and Systems
|
4
|
Project Management Responsibilities
|
5
|
Engineering Responsibilities
|
6
|
Procurement Responsibilities
|
7
|
Quality Assurance and Control Responsibilities
|
8
|
Construction Responsibilities
|
9
|
Commissioning and Start-Up
|
10
|
Acceptance Testing
|
11
|
Piping Design and Plant Layout
|
12
|
Mechanical Systems
|
13
|
Electrical Systems
|
14
|
Iinstrumentation and Control Systems
|
15
|
Hazard Detection and Mitigiation Systems
|
16
|
Security and Communications Systems
|
17
|
Civil, Structural and Architectural
|
Appendix A
|
|
Design Codes and Standards
|
Appendix B
|
|
Preliminary HAZID Report and Methodology
|
Appendix C-1
|
|
Project Deliverables Standard
|
Appendix C-2
|
|
LNG Manual Standards for Plant Operation and Maintenance
|
Appendix C-3
|
|
Turnover Package Standard
|
Appendix C-4
|
|
Document Deliverables Checklist
|
Appendix D
|
|
Environmental Handbook and Checklist
|
Appendix E
|
|
Design Basis
|
Appendix F
|
|
AutoCad Standard
|
Appendix G
|
|
Project Execution Plan
|
Appendix H
|
|
NOT USED
|
Appendix I
|
|
Preliminary Design Drawings
|
Appendix J
|
|
Preliminary Equipment List
|
Appendix K
|
|
Hazard Analysis (K-1, 2, 3)
|
Appendix K-1
|
|
Firewater Calculation
|
Appendix K-2
|
|
Hazard Analysis
|
Appendix K-3
|
|
Spill Containment Sizing Report
|
Appendix L
|
|
NOT USED
|
Appendix M
|
|
Electrical Design Information
|
Appendix M-1
|
|
Preliminary Control Architecture Diagrams
|
Appendix M-2
|
|
Single Line Drawings
|
Appendix N
|
|
Owner Specifications (N-1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
|
Appendix N-1
|
|
Specification Electrical Construction
|
Appendix N-2
|
|
Specification Installation of Piping
|
Appendix N-3
|
|
Specification Insulation
|
Appendix N-4
|
|
Specification Painting and Coating
|
Appendix N-5
|
|
Specification Structural Steel Design Criteria
|
Appendix N-6
|
|
Specification Tank Coating
|
Appendix N-7
|
|
Specification Pressure Testing
|
Appendix N-8
|
|
Specification Concrete Design Criteria
|
Appendix N-9
|
|
Specification Grout
|
Appendix N-10
|
|
Specification Piping
|
Appendix N-11
|
|
Specification Shop Assembled Carbon Steel Pressure Vessels
|
Appendix N-12
|
|
Specification Shop Assembled Carbon Steel Pressure Vessels
|
Appendix O
|
|
LNG Storage Tank Specification
|
Appendix P
|
|
Pretreatment and Liquefaction Systems Scope of Supply Direction
|
Appendix Q
|
|
Preliminary Site Geotechnical Data Report
|
Appendix R
|
|
HAZOP Methodology
|
Appendix S
|
|
Health and Safety Handbook
|
Appendix T
|
|
Owner Electronic and Physical Facility Security Requirements (T-1,2,3,4)
|
Appendix T-1
|
|
PNG LNG Facility Security Requirements
|
Appendix T-2
|
|
Typical Fence Detail
|
Appendix T-3
|
|
Typical Gate Detail
|
Appendix T-4
|
|
Fence and Gate Layout
|
Appendix U
|
|
Environmental Study Reports and Permits Matrix (U-1, 2, 3, 4, 5, 6, 7, 8)
|
Appendix U-1
|
|
Environmental Feasibility Study
|
Appendix U-2
|
|
Permits Table
|
Appendix U-3
|
|
Wetlands Delineation
|
Appendix U-4
|
|
Robeson County Permits
|
Appendix U-5
|
|
Phase 1 Archaeology Survey Report
|
Appendix U-6
|
|
Phase 1 Architecture Survey Report
|
Appendix U-7
|
|
Hydrogeologic Evaluation
|
Appendix U-8
|
|
Stormwater Analysis Report
|
Appendix V
|
|
Criteria for 3D Model Reviews
|
Appendix W
|
|
NOT USED
|
Appendix X
|
|
Building Specifications (X-1, 2)
|
Appendix X-1
|
|
Building Specifications
|
Appendix X-2
|
|
Control Building Preliminary Design
|
Appendix Y
|
|
Owner Construction Stormwater Planning Manual
|
Exhibit F
|
Performance and Demonstration Testing and Guarantees (Refer to Exhibit A, Section 10 and Appendix E)
|
Exhibit N-6
|
Duke Energy Health and Safety Handbook (Refer to Exhibit A, Appendix S)
|
Exhibit N-7
|
Duke Energy Health and Safety Supplemental Requirements (Refer to Exhibit A, Appendix S)
|
Exhibit N-8
|
Duke Energy Environmental Handbook (Refer to Exhibit A, Appendix D)
|
Exhibit N-9
|
Duke Energy Environmental Checklist (Refer to Exhibit A, Appendix D)
|
Exhibit N-10
|
Duke Energy Construction Stormwater Planning Manual (Refer to Exhibit A, Appendix Y)
|
Exhibit N-12
|
Duke Energy Physical Security Requirements (Refer to Exhibit A, Appendix T)
|
1.
|
DEFINITIONS
|
(a)
|
acts of God, lightning causing significant damage at the Site or to the Work, war, riots, insurrection, rebellion, floods, tornadoes, earthquakes, pandemics, epidemics, and named hurricanes and tropical storms;
|
(b)
|
acts of terrorism;
|
(c)
|
explosions or fires;
|
(d)
|
strikes, lockouts, or other labor disputes, but excluding strikes, lockouts or labor disputes involving employees of any Contractor Person;
|
(e)
|
Change in Law; and
|
(f)
|
delays in obtaining goods or services caused by the occurrence of any of the events described in the immediately preceding clauses (a) through (e)
|
(a)
|
“P-1 Punchlist items” shall mean items of Work that require immediate action, are, considered by Owner to pose risk of damage to property or injury to person and must be corrected prior to the commencement of any pre-commissioning, start-up, commissioning, testing or operation activities for the Facility;
|
(b)
|
“P-2 Punchlist items” shall mean items of Work that, although considered by Owner to be serious in nature, will not through the use of proper safeguards acceptable to Owner result in damage to property or injury to person; and
|
(c)
|
“P-3 Punchlist items” shall mean items of Work that, although incomplete, are considered minor in nature and will not affect the safety, operability (including capacity, efficiency, reliability or cost effectiveness) or mechanical or electrical integrity of the Facility.
|
2.
|
GENERAL PROVISIONS
|
3.
|
SCOPE OF WORK
|
4.
|
CONTRACTOR RESPONSIBILITIES
|
(a)
|
documented lessons learned indicate that Contractor’s continued performance of such portion of the Work would result in a nonconformance that could not be corrected to the condition required hereunder or would require extensive or excessive time and retrofit, repair or rework to correct;
|
(b)
|
Contractor has not established or implemented required controls in accordance with the Quality Assurance Plan;
|
(c)
|
Contractor is performing such portion of the Services in violation of a requirement hereunder;
|
(d)
|
Contractor is using nonconforming materials, which Contractor has not corrected and such nonconforming materials have not been approved or conditionally released;
|
(e)
|
Contractor is using drawings, procedures or instructions that require prior approval, which has not been received, have not been conditionally released, are out of date, or are not in accordance with this Agreement;
|
(f)
|
drawings, procedures or instructions authorized to control such portion of the Work in progress are not available at the Site; or
|
(g)
|
such portion of the Work is being performed by Persons who are not qualified pursuant to the requirements hereunder.
|
5.
|
CONTRACTOR PERSONNEL
|
(i)
|
Development of new hires and existing Contractor Workers for each covered task performed;
|
(ii)
|
Preparing the Contractor Worker for performing new or individual tasks;
|
(iii)
|
Correction of Contractor Worker performance problems (e.g., poor performance, contribution to an incident); and
|
(iv)
|
Significant changes in practices or procedures used in performing covered tasks.
|
Drug
|
Ng/ml Cutoff
|
Ng/ml Confirmation
|
Marijuana (THC,
Cannabinoids)
|
50
|
15
|
Amphetamines
|
500
|
250
|
MDMA – Ecstasy
|
500
|
250
|
Cocaine
|
150
|
100
|
Phencyclidine (PCP)
|
25
|
25
|
Opiates
|
2000
|
2000
|
6-AM - Heroin
|
10
|
10
|
6.
|
LAWS; PROJECT AND SITE RULES
|
7.
|
OWNER RESPONSIBILITIES
|
8.
|
SCHEDULE
|
9.
|
CONTRACT PRICE; INVOICES AND PAYMENT
|
10.
|
CHANGE ORDERS
|
11.
|
FORCE MAJEURE
|
12.
|
MECHANICAL COMPLETION; START-UP AND COMMISSIONING; PERFORMANCE TESTING; SUBSTANTIAL COMPLETION; FINAL COMPLETION
|
13.
|
LIQUIDATED DAMAGES
|
14.
|
WARRANTY
|
15.
|
INDEMNIFICATION
|
16.
|
INSURANCE
|
17.
|
PROJECT CREDIT SUPPORT
|
18.
|
LIMITATION OF LIABILITY
|
19.
|
TITLE TO EQUIPMENT; LIENS; RISK OF LOSS
|
20.
|
TITLE TO DOCUMENTATION; INTELLECTUAL PROPERTY
|
21.
|
CONFIDENTIAL INFORMATION; SECURITY
|
(xxi)
|
Unique electronic identifier, routing code, account number, credit card number, or debit card number, in combination with any required security code, PIN, access code, or password that would permit access to an individual’s financial account; and
|
(xxii)
|
Other numbers or information which may be used to access a Person’s financial accounts or numbers or information issued by a Government Authority that uniquely will identify an individual,
|
(1)
|
Owner PII shall be encrypted in all applications where Owner PII is initially acquired.
|
(2)
|
Decryption of data elements of Owner PII shall only occur in a consuming application, or in output, with a Legitimate Business Requirement for native data elements of Owner’s Personal Information.
|
(3)
|
Access to a fully decrypted data element of Owner PII is provided only to individuals/entities with a Legitimate Business Requirement for such access, where such access is authenticated using identity management techniques.
|
(4)
|
Masking output is utilized to provide access to, or display, a portion of decrypted data in the absence of a Legitimate Business Requirement for decrypted access (i.e., mask all but last 4 digits of social security number on reports).
|
(5)
|
Custom application(s) will be developed to accommodate ad hoc database queries returning decrypted results appropriate for the individual’s Legitimate Business Requirement.
|
22.
|
SUSPENSION; DEFAULT; TERMINATION
|
23.
|
RECORDS; COOPERATION; AUDITS
|
24.
|
TAXES
|
(1)
|
That such Equipment was purchased free of State Sales Taxes; or that for out-of-state purchases, the invoices indicate the amount of foreign Sales Tax separately stated and paid;
|
(2)
|
The actual purchase prices of such Equipment;
|
(3)
|
The date of delivery to the Site of such Equipment;
|
(4)
|
The contractor cost code of such Equipment and, where available, a detailed description of the intended function of such Equipment.
|
25.
|
DISPUTE RESOLUTION
|
26.
|
MISCELLANEOUS PROVISIONS
|
Duke Energy Business Services LLC, as agent for and on behalf of Piedmont Natural Gas Company, Inc.
By:/s/ MELODY BIRMINGHAM-BYRD
Name: Melody Birmingham-Byrd
Title: SVP Supply Chain and CPO
|
Matrix Service Inc.
By:/s/ ALAN R. UPDYKE
Name: Alan R Updyke
Title: President
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ARTICLE 1
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DEFINITIONS; INTERPRETATION; EFFECTIVENESS 2
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1.1
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Definitions 2
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1.2
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Certain Interpretive Matters 20
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1.3
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Effectiveness; Survival 21
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ARTICLE 2
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REPRESENTATIONS AND WARRANTIES 21
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2.1
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Contractor and Buyer Representations and Warranties 21
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2.2
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Company Representations and Warranties 22
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ARTICLE 3
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PRE-CLOSING COVENANTS OF THE PARTIES 26
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3.1
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Company’s Conduct of Business Relating to the Assets and the CR-3
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3.2
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Contractor’s Conduct of Business 28
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3.3
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Further Assurances 28
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3.4
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Consents and Approvals 28
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3.5
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Notice of Significant Changes; Revised Schedules; First Amendment to
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3.6
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Contractor’s Delivery of Financial Statements 30
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3.7
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Access to Information 31
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3.8
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Protection of Proprietary Information 32
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3.9
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Expenses 33
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3.10
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Public Statements 34
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3.11
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Taxes 34
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3.12
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NRC Commitments 35
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3.13
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Decommissioning 36
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3.14
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Contractor’s Provisional Trust 36
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3.15
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ISFSI Decommissioning Trust 36
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3.16
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Appointment of Company Designee 36
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3.17
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Pre-Closing Decommissioning Services 36
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3.18
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Administration of Security Screening 37
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ARTICLE 4
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THE CLOSING OF THE SNF PSA 37
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4.1
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Closing 37
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4.2
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Deliveries by Company 37
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4.3
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Deliveries by Contractor and Buyer 38
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ARTICLE 5
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TERMINATION 40
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5.1
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Termination 40
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ARTICLE 6
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CONTRACTOR’S AND BUYER’S POST-CLOSING RIGHTS,
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6.1
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Authority for Operations; Limitations 42
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6.2
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Decommissioning 42
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6.3
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[**] 43
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6.4
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Security 43
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6.5
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Safety 43
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6.6
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Decommissioning in Compliance with Laws 43
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6.7
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Project Schedule 44
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6.8
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Removal of Improvements; Site Restoration 44
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6.9
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Covenant Against Liens 44
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6.10
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Maintenance of Records 45
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6.11
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Diverse Suppliers 45
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6.12
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Reporting; Walk-downs; Compliance Meetings 45
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6.13
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Claims Under the Spent Fuel Disposal Contract 46
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6.14
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Contractor’s Provisional Trust Fund 46
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6.15
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Amended and Restated LLC Agreement 46
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6.16
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Parent Guaranties and Parent Support Agreements 47
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6.17
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Utilities and Site Maintenance Services 47
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6.18
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Intent of Agreement 47
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6.19
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Third Party Contracts 47
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6.20
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SNF Services Agreement 47
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6.21
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Property Taxes 47
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6.22
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Financial Statements 48
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ARTICLE 7
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COMPANY’S POST-CLOSING RIGHTS, OBLIGATIONS AND RESPONSIBILITIES 49
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7.1
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Company Access 49
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7.2
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Department of Energy Decommissioning and Decontamination Fees 49
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7.3
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Cooperation for Claims Under Standard Contract 49
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ARTICLE 8
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RIGHTS, OBLIGATIONS AND RESPONSIBILITIES OF BOTH
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8.1
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Compliance with Laws and Permits 49
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8.2
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Permits 50
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8.3
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Release of any Hazardous Substance 51
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8.4
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Protection of Wetlands 51
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8.5
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Condemnation 51
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8.6
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Access to the NRC-Licensed Site; Coordination of Access 52
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8.7
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Books and Records 54
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8.8
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Post-Closing - Further Assurances 55
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8.9
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Occurrence of SAFSTOR Condition 55
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ARTICLE 9
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NDF; CONTRACTOR’S PROVISIONAL TRUST FUND;
|
|
DISBURSEMENTS 55
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9.1
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Compensation; [**] 55
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9.2
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NDF; IOI Decommissioning Subaccount 56
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9.3
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Withdrawals from IOI Decommissioning Subaccount 57
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9.4
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Maintenance of ISFSI Decommissioning Trust 58
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9.5
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Maintenance and Termination of Contractor’s Provisional Trust Fund 59
|
9.6
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Notice of Milestone One and End-State Conditions; Actions of Parties 59
|
9.7
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Payment of IOI Disbursement Certificates 60
|
9.8
|
Effect of Termination on Contractor’s Rights to Disbursement from the
|
9.9
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Audit Rights 60
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ARTICLE 10
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TARGET COMPLETION DATE 61
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10.1
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Guaranteed Completion 61
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10.2
|
Qualified Institution 61
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ARTICLE 11
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EXTENSIONS OF TIME; ADJUSTMENTS TO COSTS 62
|
11.1
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Occurrence of Schedule Extension Condition; Adjustment of Project
|
11.2
|
Occurrence of a Change in End-State Conditions; Inability to Access;
|
11.3
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Duty to Mitigate 63
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11.4
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No Duplicate Relief 64
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ARTICLE 12
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CONFIDENTIALITY; PUBLIC STATEMENTS 64
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12.1
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Access to Information 64
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12.2
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Protection of Proprietary Information 64
|
12.3
|
Public Statements 66
|
ARTICLE 13
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INDEMNIFICATION 66
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13.1
|
Contractor Indemnification 66
|
13.2
|
Company Indemnification 67
|
ARTICLE 14
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INSURANCE 67
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14.1
|
Contractor Insurance 67
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14.2
|
Company Insurance 67
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14.3
|
Environmental Liability Insurance Coverage 68
|
ARTICLE 15
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DEFAULT; REMEDIES 68
|
15.1
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Contractor Events of Default 68
|
15.2
|
Remedies Upon a Contractor Event of Default 70
|
15.3
|
Obligations Upon Termination 70
|
ARTICLE 16
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MISCELLANEOUS PROVISIONS 71
|
16.1
|
Amendment and Modification 71
|
16.2
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Waiver of Compliance; Consents 71
|
16.3
|
Notices 71
|
16.4
|
Assignment 73
|
16.5
|
Third Party Beneficiaries 73
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16.6
|
Governing Law 73
|
16.7
|
Dispute Resolution 73
|
16.8
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WAIVER OF JURY TRIAL 75
|
16.9
|
Entire Agreement 75
|
16.10
|
No Joint Venture 75
|
16.11
|
Change in Law 75
|
16.12
|
Severability 75
|
16.13
|
Counterparts 75
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16.14
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EXCLUSIVITY OF WARRANTIES 75
|
16.15
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LIMITATION ON CONSEQUENTIAL DAMAGES 76
|
Attachment 11
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Intentionally Omitted
|
Attachment 17
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Company’s Required Regulatory Approvals; Contractor’s Required Regulatory Approvals
|
Schedule 2.2.9
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Environmental Matters
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Assets
|
Seller Material Adverse Effect
|
Assumed Liabilities
|
Transfer Taxes
|
Buyer Material Adverse Effect
|
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chairman, President and
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Carolinas, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Progress Energy, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Progress, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Florida, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Ohio, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Indiana, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Piedmont Natural Gas Company, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Carolinas, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Progress Energy, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Progress, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Florida, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Ohio, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Duke Energy Indiana, LLC;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Piedmont Natural Gas Company, Inc.;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chairman, President and
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Carolinas.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Progress Energy.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Progress.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Florida.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Ohio.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Indiana.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Piedmont.
|
/s/ LYNN J. GOOD
|
Lynn J. Good
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Carolinas.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Progress Energy.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Progress.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Florida.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Ohio.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Indiana.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Piedmont.
|
/s/ STEVEN K. YOUNG
|
Steven K. Young
Executive Vice President and Chief Financial Officer
|