8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report

(Date of earliest event reported): August 7, 2014

DUKE ENERGY CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware	001-32853	20-2777218
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

550 South Tryon Street, Charlotte, North Carolina, 28202

(Address of principal executive offices, including zip code)

(704) 594-6200

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On August 7, 2014, Duke Energy Corporation issued a news release announcing its financial results for the second quarter ended June 30, 2014. A copy of this news release is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is being furnished pursuant to this Item 2.02.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 News Release issued by Duke Energy Corporation on August 7, 2014

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

DUKE ENERGY CORPORATION

/s/ BRIAN D. SAVOY

Brian D. Savoy

Vice President, Chief Accounting Officer, and Controller

Dated: August 7, 2014

EXHIBIT INDEX

Exhibit	Description
99.1	News Release issued by Duke Energy Corporation on August 7, 2014

EX-99.1

Exhibit 99.1

Media Contact: Tom Shiel

Office: 704.382.2355 | 24-Hour: 800.559.3853

Analysts: Bill Currens

Office: 704.382.1603

Aug. 7, 2014

Duke Energy posts strong second quarter 2014 results; increases outlook for 2014

• Second quarter 2014 adjusted diluted earnings per share (EPS) was $1.11, compared to 87 cents for the second quarter 2013

• Reported diluted EPS for the second quarter 2014 of 86 cents, compared to reported diluted EPS of 48 cents for the second quarter 2013

• Company increases its 2014 adjusted earnings guidance range from $4.45 to $4.60 per share to $4.50 to $4.65 per share

CHARLOTTE, N.C. – Duke Energy today announced second quarter 2014 adjusted diluted EPS of $1.11, compared to 87 cents for second quarter 2013, and reported diluted EPS of 86 cents, compared to 48 cents for the same period last year.

The company saw strong performance from all of its business units in the quarter, led by Regulated Utilities, which continued to benefit from favorable weather and a lower effective tax rate, and International Energy, which recognized a tax benefit resulting from the reorganization of the company’s operations in Chile.

Based upon results through the first half of the year, the company is increasing its 2014 adjusted earnings guidance range from $4.45 to $4.60 per share to $4.50 to $4.65 per share.

“Our strong second quarter performance and continued focus on operational excellence leaves us well-positioned to meet our financial objectives in 2014 and beyond. We are committed to maintaining affordable customer rates and to supporting the strength of our local communities, as evidenced by our recent agreement with the North Carolina Eastern Municipal Power Agency,” said Lynn Good, president and CEO.

“We are executing our strategy to position the business for long-term sustainable growth, benefitting our customers and shareholders,” she added.

Duke Energy News Release 2

Business Unit Results

In addition to the summary business unit discussion below, a comprehensive table of quarterly and year-to-date earnings per share drivers compared to the prior year are provided on pages 10 and 11.

The discussion below of second-quarter results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 24 through 27 present a reconciliation of reported results to adjusted results.

Regulated Utilities

Regulated Utilities recognized second quarter 2014 adjusted segment income of $689 million, compared to $590 million in the second quarter 2013, an increase of $0.13 per share.

Increased quarterly results at Regulated Utilities were primarily driven by:

• Higher revenues from increased pricing and riders (+$0.07 per share) primarily related to the implementation of revised customer rates

• Favorable weather (+$0.07 per share) driven by warmer than normal temperatures across Duke Energy’s service territories

• Lower effective tax rate (+$0.05 per share) primarily due to a state tax settlement that resulted in a favorable adjustment to deferred taxes

• Lower operating and maintenance expenses (+$0.03 per share) primarily driven by a prior-year donation associated with the 2013 Duke Energy Progress rate case settlement as well as the benefit of nuclear outage cost levelization

• Increased wholesale net margins (+$0.02 per share) primarily resulting from growth in contracted amounts

These favorable drivers were partially offset by:

• Higher depreciation and amortization expense (-$0.07 per share) primarily resulting from additional plant in service and a decrease in cost of removal amortization

• Higher interest expense (-$0.03 per share) primarily due to lower post-in-service debt returns on projects now reflected in customer rates

• Lower AFUDC equity (-$0.01 per share) primarily due to the completion of certain major capital projects

Duke Energy News Release 3

On a year-to-date basis, Regulated Utilities recognized adjusted segment income of $1,426 million, compared to $1,246 million in the comparable year-to-date period of 2013, an increase of $0.26 per share.

Increased year-to-date results at Regulated Utilities were primarily driven by:

• Higher revenues from increased pricing and riders (+$0.20 per share) primarily related to the implementation of revised customer rates

• Favorable weather (+$0.15 per share) across Duke Energy’s service territories

• Higher weather-normal retail volumes (+$0.06 per share) of 1.5 percent compared to 2013 primarily driven by strong results in the first quarter

• Lower effective tax rate (+$0.05 per share) primarily due to a state tax settlement that resulted in a favorable adjustment to deferred taxes

• Increased wholesale net margins (+$0.05 per share) primarily resulting from growth in contracted amounts and favorable weather

These favorable drivers were partially offset by:

• Higher depreciation and amortization expense (-$0.14 per share) due to additional plant in service and the prior-year impact of cost of removal amortization primarily in Florida

• Higher interest expense (-$0.06 per share) due to lower post-in-service debt returns on projects now reflected in customer rates

• Lower AFUDC equity (-$0.03 per share) primarily due to the completion of certain major capital projects

International Energy

International Energy recognized second quarter 2014 adjusted segment income of $146 million, compared to $87 million in the second quarter 2013, an increase of $0.09 per share.

International Energy’s improved quarterly earnings were driven by:

• Favorable results in Latin America (+$0.08 per share) primarily due to a tax benefit resulting from the reorganization of the company’s operations in Chile

• Higher results at National Methanol Company (+$0.02 per share) due to a prior-year extended planned maintenance outage

These favorable drivers were partially offset by unfavorable foreign currency exchange rates (-$0.01 per share).

Duke Energy News Release 4

On a year-to-date basis, International Energy recognized adjusted segment income of $276 million, compared to $184 million in the comparable year-to-date period of 2013, an increase of $0.13 per share.

International Energy’s improved year-to-date earnings were driven by:

• Stronger results in Latin America (+$0.13 per share), primarily due to a tax benefit resulting from the reorganization of the company’s operations in Chile and higher average volumes and pricing in Brazil

• Higher results at National Methanol Company (+$0.02 per share) due to a prior-year extended planned maintenance outage

These drivers were partially offset by unfavorable foreign currency exchange rates (-$0.03 per share).

Commercial Power

Commercial Power recognized second quarter 2014 adjusted segment income of $16 million, compared to a segment loss of $3 million in the second quarter 2013, an increase of $0.02 per share.

Commercial Power’s improved quarterly earnings were primarily driven by:

• Higher results from the Midwest coal and gas generation fleets (+$0.02 per share) primarily due to higher PJM capacity prices

• Increased results at the renewables business (+$0.01 per share) due to higher production of the wind and solar portfolio

On a year-to-date basis, Commercial Power recognized adjusted segment income of $26 million, compared to $3 million in the comparable year-to-date period of 2013, an increase of $0.03 per share.

Commercial Power’s improved year-to-date earnings were primarily driven by:

• Increased results from the renewables business (+$0.03 per share) due to higher production of the wind and solar portfolio and lower operating costs

• Higher results from the Midwest coal and gas generation fleets (+$0.03 per share) primarily due to higher PJM capacity prices

These results were partially offset by lower earnings from the company’s competitive retail business, Duke Energy Retail (-$0.02 per share).

Duke Energy News Release 5

Other

On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy’s captive insurance company, other investments, and income tax levelization adjustments.

Other recognized a second quarter 2014 adjusted net expense of $65 million, compared to $57 million in the second quarter 2013. On a year-to-date basis, Other recognized adjusted net expense of $113 million, compared to $100 million in the comparable period of 2013.

Earnings Conference Call for Analysts

An earnings conference call for analysts is scheduled for 10 a.m. ET today to discuss Duke Energy’s financial performance for the quarter and other business updates.

The conference call will be hosted by Lynn Good, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors’ section (http://www.duke-energy.com/investors/) of Duke Energy’s website or by dialing 877-718-5108 in the United States or 719-325-4765 outside the United States. The confirmation code is 6615300. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, Aug. 17, 2014, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 6615300. A replay and transcript also will be available by accessing the investors’ section of the company’s website.

Special Items and Non-GAAP Reconciliation

Special items affecting Duke Energy’s adjusted diluted EPS for second quarter 2014 and second quarter 2013 include:

(In millions, except per-share amounts)	Pre-Tax Amount			Tax Effect			2Q2014 EPS Impact			2Q2013 EPS Impact
Second Quarter 2014
•     Economic hedges (mark-to-market)	$	(213	)	$	77		$	(0.19	)
•     Costs to achieve, Progress Energy merger	$	(61	)	$	23		$	(0.06	)
•     Discontinued operations	$	(13	)	$	10			—
Second Quarter 2013
•     Crystal River Unit 3 impairment	$	(295	)	$	115					$	(0.26	)
•     Nuclear development charges	$	(87	)	$	30					$	(0.08	)
•     Costs to achieve, Progress Energy merger	$	(82	)	$	31					$	(0.07	)
•     Litigation reserve	$	(50	)	$	19					$	(0.04	)
•     Economic hedges (mark-to-market)	$	73		$	(29	)				$	0.06
•     Discontinued operations	$	(5	)	$	2						—
Total diluted EPS impact							$	(0.25	)	$	(0.39	)

Duke Energy News Release 6

Reconciliation of reported to adjusted diluted EPS for the quarters:

	2Q2014 EPS		2Q2013 EPS
Diluted EPS, as reported	$	0.86	$	0.48
Adjustments to reported EPS:
•       Diluted EPS impact of special items, mark-to-market in Commercial Power, and discontinued operations (net of tax)	$	0.25	$	0.39
Diluted EPS, adjusted	$	1.11	$	0.87

Non-GAAP financial measures

Management evaluates financial performance in part based on the non-GAAP financial measures, adjusted earnings and adjusted diluted earnings per share (EPS). These items are measured as income from continuing operations after deducting income attributable to noncontrolling interests, adjusted for the dollar and per share impact of special items and mark-to-market impacts of economic hedges in the Commercial Power segment. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment and also relate to existing derivative positions that may have tenors beyond the planned disposal date of the nonregulated Midwest generation business. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. However, due to the divestiture of the nonregulated Midwest generation business as mentioned above, certain derivative positions have tenors beyond the planned disposal date of these assets. As such, management expects to exclude any settlement of these derivative positions from adjusted diluted EPS as these realized gains and losses more closely relate to the loss on disposal of these assets. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting results to the Board of Directors, employees, shareholders, analysts and investors concerning Duke Energy’s financial performance. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly

Duke Energy News Release 7

comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS attributable to Duke Energy Corporation common shareholders, which include the dollar and per share impact of special items, mark-to-market impacts of economic hedges in the Commercial Power segment and discontinued operations. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items and mark-to-market impacts of economic hedges in the Commercial Power segment. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income is segment income, which represents segment income from continuing operations, including any special items and mark-to-market impacts of economic hedges in the Commercial Power segment.

Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items or mark-to-market adjustments for future periods. The earnings guidance range assumptions for 2014 include a full-year of earnings contributions from the nonregulated Midwest generation business, which management has begun a process to exit. Irrespective of whether this business is reclassified as discontinued operations for accounting purposes, management expects to continue including any nonregulated Midwest generation business earnings in adjusted earnings, adjusted diluted EPS, and adjusted segment income. Management believes it is unlikely a sale transaction will close in 2014.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States with more than $115 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and

Duke Energy News Release 8

Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions.

These forward-looking statements are identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “outlook,” “guidance,” and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or 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 the costs and liabilities relating to the Dan River ash basin release and future regulatory changes related to the management of coal ash; the ability to recover eligible costs, including those associated with future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 could prove to be more extensive than is currently identified and all costs may not be fully recoverable through the regulatory process; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; 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 customer usage patterns, including energy efficiency effort and use of alternative energy sources including self-generation and distributed generation technologies; additional competition in electric markets and continued industry consolidation; political and regulatory uncertainty in other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers; the impact on facilities and business from a terrorist attack, cyber security threats, data security breaches and other

Duke Energy News Release 9

catastrophic events; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange 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 and general economic conditions; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; 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); 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 potential goodwill impairments; the ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax-free basis; and the ability to successfully complete future merger, acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Duke Energy’s and its subsidiaries’ reports filed with the SEC and available at the SEC’s website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

###

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2014 QTD vs. Prior Year

($ per share)	Regulated Utilities			International Energy		Commercial Power			Other			Consolidated
2013 QTD Reported Earnings Per Share, Diluted	$	0.50		$	0.12	$	0.06		$	(0.20	)	$	0.48
Crystal River Unit 3 Impairment		0.26			—		—			—			0.26
Nuclear Development Charges		0.08			—		—			—			0.08
Costs to Achieve, Progress Merger		—			—		—			0.07			0.07
Litigation Reserve		—			—		—			0.04			0.04
Economic Hedges (Mark-to-Market)		—			—		(0.06	)		—			(0.06	)
2013 QTD Adjusted Earnings Per Share, Diluted	$	0.84		$	0.12	$	—		$	(0.09	)	$	0.87
Weather		0.07			—		—			—			0.07
Pricing and Riders (a)		0.07			—		—			—			0.07
Operation and Maintenance, net of recoverables (b)		0.03			—		—			—			0.03
Latin America, including Foreign Exchange Rates (c)		—			0.07		—			—			0.07
National Methanol Company		—			0.02		—			—			0.02
Midwest Generation (d)		—			—		0.02			—			0.02
Duke Energy Renewables (e)		—			—		0.01			—			0.01
Interest Expense (f)		(0.03	)		—		(0.01	)		0.01			(0.03	)
Change in effective income tax rate		0.05			—		(0.01	)		—			0.04
Other (g)		(0.06	)		—		0.01			(0.01	)		(0.06	)
2014 QTD Adjusted Earnings Per Share, Diluted	$	0.97		$	0.21	$	0.02		$	(0.09	)	$	1.11
Costs to Achieve, Progress Merger		—			—		—			(0.06	)		(0.06	)
Economic Hedges (Mark-to-Market)		—			—		(0.19	)		—			(0.19	)
2014 QTD Reported Earnings Per Share, Diluted	$	0.97		$	0.21	$	(0.17	)	$	(0.15	)	$	0.86

Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

(a) Primarily due to the September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.06), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.02), and the May 2013 implementation of revised electric distribution rates for Duke Energy Ohio (+$0.01).

(b) Primarily driven by lower donations and the impact of nuclear outage cost levelization.

(c) Primarily driven by favorable results in Latin America (+$0.08) due to a tax benefit related to the reorganization of the company’s operations in Chile, partially offset by unfavorable foreign currency exchange rates (-$0.01).

(d) Primarily due to lower depreciation and amortization due to ceasing depreciation on assets held for sale in the second quarter of 2014 (+$0.03) and higher PJM capacity revenues (+$0.02), partially offset by lower coal generation margins (-$0.01) and the impairment of ongoing capital maintenance investments that are not expected to change the estimated fair value of the generation business (-$0.02).

(e) Primarily due to higher production of the wind and solar portfolio.

(f) Amount for Regulated Utilities is primarily due to the discontinuation of booking a post in-service debt return on projects that are now reflected in customer rates.

(g) Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.07) due to higher depreciable base and lower adjustments to the cost of removal reserve, and lower AFUDC-equity (-$0.01), partially offset by higher wholesale net margins, including new contracts (+$0.02).

10

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2014 YTD vs. Prior Year

($ per share)	Regulated Utilities			International Energy		Commercial Power			Other			Consolidated
2013 YTD Reported Earnings Per Share, Diluted	$	1.42		$	0.26	$	(0.01	)	$	(0.30	)	$	1.37
Crystal River Unit 3 Impairment		0.26			—		—			—			0.26
Nuclear Development Charges		0.08			—		—			—			0.08
Costs to Achieve, Progress Merger		—			—		—			0.13			0.13
Litigation Reserve		—			—		—			0.04			0.04
Economic Hedges (Mark-to-Market)		—			—		0.01			—			0.01
2013 YTD Adjusted Earnings Per Share, Diluted	$	1.76		$	0.26	$	—		$	(0.13	)	$	1.89
Weather		0.15			—		—			—			0.15
Pricing and Riders (a)		0.20			—		—			—			0.20
Volumes		0.06			—		—			—			0.06
Operation and Maintenance, net of recoverables (b)		(0.01	)		—		—			—			(0.01	)
Latin America, including Foreign Exchange Rates (c)		—			0.10		—			—			0.10
National Methanol Company		—			0.02		—			—			0.02
Midwest Generation (d)		—			—		0.03			—			0.03
Duke Energy Retail		—			—		(0.02	)		—			(0.02	)
Duke Energy Renewables (e)		—			—		0.03			—			0.03
Interest Expense (f)		(0.06	)		—		(0.01	)		(0.01	)		(0.08	)
Change in effective income tax rate		0.05			—		(0.01	)		0.01			0.05
Other (g)		(0.13	)		0.01		0.01			(0.03	)		(0.14	)
2014 YTD Adjusted Earnings Per Share, Diluted	$	2.02		$	0.39	$	0.03		$	(0.16	)	$	2.28
Midwest Generation Impairment		—			—		(1.23	)		—			(1.23	)
Costs to Achieve, Progress Merger		—			—		—			(0.10	)		(0.10	)
Economic Hedges (Mark-to-Market)		—			—		(0.22	)		—			(0.22	)
Discontinued Operations													(0.01	)
2014 YTD Reported Earnings Per Share, Diluted	$	2.02		$	0.39	$	(1.42	)	$	(0.26	)	$	0.72

Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

(a) Primarily due to the September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.12), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.06), and the May 2013 implementation of revised electric distribution rates for Duke Energy Ohio (+$0.02).

(b) Primarily driven by storm costs in the Carolinas, the 2013 deferral of Crystal River Unit 3 costs, and clean up costs related to the Dan River coal ash spill. These drivers are partially offset by the impact of nuclear outage cost levelization and lower nuclear generation operating expenses.

(c) Primarily driven by a tax benefit related to the reorganization of the company’s operations in Chile (+$0.07) and higher pricing and volumes in Brazil (+$0.04), partially offset by unfavorable foreign exchange rates (-$0.03).

(d) Primarily due to lower depreciation and amortization due to ceasing depreciation on assets held for sale in the second quarter of 2014 (+$0.03), higher PJM capacity revenues (+$0.02), and higher gas generation margins (+$0.02), partially offset by lower coal generation margins (-$0.03) and the impairment of ongoing capital maintenance investments that are not expected to change the estimated fair value of the generation business (-$0.02).

(e) Primarily due to higher production of the wind and solar portfolio and lower operating costs.

(f) Amount for Regulated Utilities is primarily due to the discontinuation of booking a post in-service debt return on projects that are now reflected in customer rates.

(g) Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.14) due to higher depreciable base and the 2013 reduction in the cost of removal component of amortization expense for Duke Energy Florida, lower AFUDC-equity (-$0.03), and higher non-income taxes (-$0.01), partially offset by higher wholesale net margins (+$0.05).

11

June 2014

QUARTERLY HIGHLIGHTS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per-share amounts and where noted)	2014			2013			2014			2013
COMMON STOCK DATA
Income from continuing operations attributable to Duke Energy Corporation common shareholders
Basic	$	0.86		$	0.48		$	0.73		$	1.37
Diluted	$	0.86		$	0.48		$	0.73		$	1.37
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common shareholders
Basic	$	—		$	—		$	(0.01	)	$	—
Diluted	$	—		$	—		$	(0.01	)	$	—
Net income attributable to Duke Energy Corporation common shareholders
Basic	$	0.86		$	0.48		$	0.72		$	1.37
Diluted	$	0.86		$	0.48		$	0.72		$	1.37
Dividends Declared Per Share	$	0.78		$	1.545		$	1.56		$	2.310
Weighted-Average Shares Outstanding
Basic		707			706			707			705
Diluted		707			706			707			706
SEGMENT INCOME BY BUSINESS SEGMENT
Regulated Utilities(a)(b)	$	689		$	353		$	1,426		$	1,009
International Energy		146			87			276			184
Commercial Power(c)(d)		(120	)		41			(999	)		(1	)
Total Reportable Segment Income		715			481			703			1,192
Other Net Expense(e)(f)		(103	)		(139	)		(185	)		(216	)
Loss from Discontinued Operations, net of tax		(3	)		(3	)		(6	)		(3	)
Net Income Attributable to Duke Energy Corporation	$	609		$	339		$	512		$	973
CAPITALIZATION
Total Common Equity								48	%		49	%
Total Debt								52	%		51	%
Total Debt							$	42,460		$	41,408
Book Value Per Share							$	57.80		$	56.95
Actual Shares Outstanding								707			706
CAPITAL AND INVESTMENT EXPENDITURES
Regulated Utilities	$	1,073		$	1,250		$	2,175		$	2,543
International Energy		16			42			25			67
Commercial Power		100			14			168			26
Other		25			64			86			128
Total Capital and Investment Expenditures	$	1,214		$	1,370		$	2,454		$	2,764

(a) Includes an impairment charge of $180 million for the three and six months ended June 30, 2013 related to the Crystal River Unit 3 Nuclear Station (net of tax of $115 million).

(b) Includes impairment charges of $57 million for the three and six months ended June 30, 2013 related to nuclear development costs (net of tax of $30 million).

(c) Includes an impairment charge related to the planned sale of the Midwest Generation assets of $867 million for the six months ended June 30, 2014 (net of tax of $514 million).

(d) Includes mark-to-market losses on economic hedges of $136 million for the three months ended June 30, 2014 (net of tax of $77 million), and $158 million for the six months ended June 30, 2014 (net of tax of $89 million).

(e) Includes costs to achieve Progress merger of $38 million for the three months ended June 30, 2014 (net of tax of $23 million), and $72 million for the six months ended June 30, 2014 (net of tax of $44 million).

(f) Includes costs to achieve Progress merger of $51 million for the three months ended June 30, 2013 (net of tax of $31 million), and $85 million for the six months ended June 30, 2013 (net of tax of $52 million).

12

June 2014

QUARTERLY HIGHLIGHTS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except where noted)	2014			2013			2014			2013
REGULATED UTILITIES
Operating Revenues	$	5,283		$	4,920		$	11,088		$	9,980
Operating Expenses(a)(b)		4,019			4,165			8,446			8,005
Gains on Sales of Other Assets, net		—			4			1			6
Operating Income		1,264			759			2,643			1,981
Other Income and Expenses		62			48			131			109
Interest Expense		275			242			545			478
Income Before Income Taxes		1,051			565			2,229			1,612
Income Tax Expense(c)(d)		362			212			803			603
Segment Income	$	689		$	353		$	1,426		$	1,009
Depreciation and Amortization	$	688		$	556		$	1,365		$	1,092
Duke Energy Carolinas GWh sales		20,836			20,202			44,529			42,448
Duke Energy Progress GWh sales		14,693			14,055			30,854			28,756
Duke Energy Florida GWh sales		9,840			9,853			18,501			17,869
Duke Energy Ohio GWh sales		5,824			5,800			12,303			11,978
Duke Energy Indiana GWh sales		8,455			7,937			17,329			16,442
Total GWh sales		59,648			57,847			123,516			117,493
Net Proportional MW Capacity in Operation								49,452			49,560
INTERNATIONAL ENERGY
Operating Revenues	$	364		$	406		$	746		$	798
Operating Expenses		254			270			485			533
Gains on Sales of Other Assets, net		5			—			5			—
Operating Income		115			136			266			265
Other Income and Expenses		52			14			109			47
Interest Expense		23			17			46			38
Income Before Income Taxes		144			133			329			274
Income Tax Expense		(5	)		42			46			84
Less: Income Attributable to Noncontrolling Interests		3			4			7			6
Segment Income	$	146		$	87		$	276		$	184
Depreciation and Amortization	$	27		$	24		$	50		$	50
Sales, GWh		4,281			4,926			9,522			9,682
Proportional MW Capacity in Operation								4,411			4,584
COMMERCIAL POWER
Operating Revenues(e)	$	309		$	557		$	758		$	1,009
Operating Expenses(f)		502			508			2,364			1,041
Gains on Sales of Other Assets, net		1			1			1			1
Operating (Loss) Income		(192	)		50			(1,605	)		(31	)
Other Income and Expenses		5			—			10			11
Interest Expense		23			17			38			32
(Loss) Income Before Income Taxes		(210	)		33			(1,633	)		(52	)
Income Tax Benefit(g)(h)		(90	)		(8	)		(634	)		(51	)
Segment (Loss) Income	$	(120	)	$	41		$	(999	)	$	(1	)
Depreciation and Amortization	$	20		$	62		$	81		$	125
Actual Coal-fired Plant Production, GWh		3,087			4,185			7,798			8,734
Actual Gas-fired Plant Production, GWh		3,981			3,341			7,773			7,238
Actual Renewable Plant Production, GWh		1,469			1,415			3,058			2,820
Actual Plant Production, GWh		8,537			8,941			18,629			18,792
Net Proportional MW Capacity in Operation								7,839			8,127
OTHER
Operating Revenues	$	28		$	36		$	53		$	71
Operating Expenses(i)(j)		100			156			184			246
Losses on Sales of Other Assets, net		—			(4	)		—			(4	)
Operating Loss		(72	)		(124	)		(131	)		(179	)
Other Income and Expenses		15			8			22			19
Interest Expense		103			105			208			200
Loss Before Income Taxes		(160	)		(221	)		(317	)		(360	)
Income Tax Benefit(k)(l)		(58	)		(81	)		(133	)		(141	)
Less: Income (Loss) Attributable to Noncontrolling Interests		1			(1	)		1			(3	)
Segment Net Expense	$	(103	)	$	(139	)	$	(185	)	$	(216	)
Depreciation and Amortization	$	26		$	36		$	55		$	71

(a) Includes a pre-tax impairment charge of $295 million for the three and six months ended June 30, 2013, related to the Crystal River Unit 3 Nuclear Station.

(b) Includes pre-tax impairment charges of $87 million for the three and six months ended June 30, 2013, related to nuclear development costs.

(c) Includes a tax benefit of $115 million for the three and six months ended June 30, 2013, on the impairment related to the Crystal River Unit 3 Nuclear Station.

(d) Includes a tax benefit of $30 million for the three and six months ended June 30, 2013, on the impairment related to nuclear development costs.

(e) Includes mark-to-market losses on economic hedges of $185 million for the three months ended June 30, 2014 and $309 million for the six months ended June 30, 2014.

(f) Includes a pre-tax impairment charge of $1,381 million for the six months ended June 30, 2014, related to the planned sale of the Midwest Generation assets.

(g) Includes a tax benefit of $77 million for the three months ended June 30, 2014 and $89 million for the six months ended June 30, 2014, related to the mark-to-market losses on economic hedges.

(h) Includes a tax benefit of $514 million for the six months ended June 30, 2014, on the impairment related to the planned sale of the Midwest Generation assets.

(i) Includes costs to achieve Progress merger of $61 million recorded in Operating Expense for the three months ended June 30, 2014, and $114 million recorded in Operating Expense for the six months ended June 30, 2014.

(j) Includes costs to achieve Progress merger of $92 million recorded in Operating Expense for the three months ended June 30, 2013, and $162 million recorded in Operating Expense for the six months ended June 30, 2013.

(k) Includes tax benefit related to costs to achieve Progress merger of $23 million for the three months ended June 30, 2014, and $44 million for the six months ended June 30, 2014.

(l) Includes tax benefit related to costs to achieve Progress merger of $31 million for the three months ended June 30, 2013, and $52 million for the six months ended June 30, 2013.

13

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Operating Revenues
Regulated electric	$	5,167		$	4,834		$	10,745		$	9,723
Nonregulated electric, natural gas, and other		675			951			1,499			1,775
Regulated natural gas		107			94			329			279
Total operating revenues		5,949			5,879			12,573			11,777
Operating Expenses
Fuel used in electric generation and purchased power - regulated		1,808			1,678			3,808			3,381
Fuel used in electric generation and purchased power - nonregulated		436			447			845			901
Cost of natural gas and other		43			43			165			147
Operation, maintenance and other		1,467			1,504			2,973			2,925
Depreciation and amortization		761			678			1,551			1,338
Property and other taxes		318			323			676			666
Impairment charges		6			386			1,388			386
Total operating expenses		4,839			5,059			11,406			9,744
Gains on Sales of Other Assets and Other, net		6			1			7			3
Operating Income		1,116			821			1,174			2,036
Other Income and Expenses
Equity in earnings of unconsolidated affiliates		33			22			69			58
Other income and expenses, net		89			48			184			128
Total other income and expenses		122			70			253			186
Interest Expense		413			381			819			748
Income From Continuing Operations Before Income Taxes		825			510			608			1,474
Income Tax Expense from Continuing Operations		209			165			82			495
Income From Continuing Operations		616			345			526			979
Loss From Discontinued Operations, net of tax		(3	)		(3	)		(6	)		(3	)
Net Income		613			342			520			976
Less: Net Income Attributable to Noncontrolling Interests		4			3			8			3
Net Income Attributable to Duke Energy Corporation	$	609		$	339		$	512		$	973
Earnings Per Share - Basic and Diluted
Income from continuing operations attributable to Duke Energy Corporation common shareholders
Basic	$	0.86		$	0.48		$	0.73		$	1.37
Diluted	$	0.86		$	0.48		$	0.73		$	1.37
Loss from discontinued operations attributable to Duke Energy Corporation common shareholders
Basic	$	—		$	—		$	(0.01	)	$	—
Diluted	$	—		$	—		$	(0.01	)	$	—
Net Income attributable to Duke Energy Corporation common shareholders
Basic	$	0.86		$	0.48		$	0.72		$	1.37
Diluted	$	0.86		$	0.48		$	0.72		$	1.37
Weighted-average shares outstanding
Basic		707			706			707			705
Diluted		707			706			707			706

14

DUKE ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

	June 30, 2014			December 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	$	2,008		$	1,501
Short-term investments		—			44
Receivables (net of allowance for doubtful accounts of $18 at June 30, 2014 and $30 at December 31, 2013)		877			1,286
Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $54 at June 30, 2014 and $43 at December 31, 2013)		2,118			1,719
Inventory		3,056			3,250
Assets held for sale		409			—
Regulatory assets		1,349			895
Other		1,698			1,821
Total current assets		11,515			10,516
Investments and Other Assets
Investments in equity method unconsolidated affiliates		381			390
Nuclear decommissioning trust funds		5,417			5,132
Goodwill		16,343			16,340
Assets held for sale		2,195			107
Other		3,227			3,432
Total investments and other assets		27,563			25,401
Property, Plant and Equipment
Cost		100,885			103,115
Accumulated depreciation and amortization		(33,977	)		(33,625	)
Net property, plant and equipment		66,908			69,490
Regulatory Assets and Deferred Debits
Regulatory assets		9,009			9,191
Other		178			181
Total regulatory assets and deferred debits		9,187			9,372
Total Assets	$	115,173		$	114,779
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,782		$	2,391
Notes payable and commercial paper		1,867			839
Taxes accrued		522			551
Interest accrued		453			440
Current maturities of long-term debt		1,887			2,104
Liabilities associated with assets held for sale		271			7
Regulatory liabilities		140			316
Other		1,786			1,996
Total current liabilities		8,708			8,644
Long-term Debt		38,706			38,152
Deferred Credits and Other Liabilities
Deferred income taxes		12,014			12,097
Investment tax credits		435			442
Accrued pension and other post-retirement benefit costs		1,263			1,322
Liabilities associated with assets held for sale		75			66
Asset retirement obligations		5,030			4,950
Regulatory liabilities		6,338			5,949
Other		1,723			1,749
Total deferred credits and other liabilities		26,878			26,575
Equity
Common stock, $0.001 par value, 2 billion shares authorized; 707 million and 706 million shares outstanding at June 30, 2014 and December 31, 2013, respectively		1			1
Additional paid-in capital		39,389			39,365
Retained earnings		1,768			2,363
Accumulated other comprehensive loss		(355	)		(399	)
Total Duke Energy Corporation stockholders’ equity		40,803			41,330
Noncontrolling interests		78			78
Total equity		40,881			41,408
Total Liabilities and Equity	$	115,173		$	114,779

15

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

	Six Months Ended June 30,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	520		$	976
Adjustments to reconcile net income to net cash provided by operating activities:		2,099			1,867
Net cash provided by operating activities		2,619			2,843
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		(2,367	)		(2,562	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by (used in) financing activities		255			(134	)
Net increase in cash and cash equivalents		507			147
Cash and cash equivalents at beginning of period		1,501			1,424
Cash and cash equivalents at end of period	$	2,008		$	1,571

16

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended June 30												Six Months Ended June 30
	2014			2013			% Inc. (Dec.)			% Inc. (Dec.) Weather Normal (2)			2014			2013			% Inc. (Dec.)			% Inc. (Dec.) Weather Normal (2)
GWH Sales (1)
Residential		17,911			17,857			0.3	%		0.1	%		42,104			39,591			6.3	%		1.6	%
General Service		18,725			18,431			1.6	%		0.5	%		36,872			35,976			2.5	%		2.0	%
Industrial		13,081			12,821			2.0	%		0.8	%		25,136			24,746			1.6	%		0.6	%
Other Energy Sales		153			149			2.7	%					303			300			1.0	%
Unbilled Sales		1,164			549			112.0	%		n/a			580			343			69.1	%		n/a
Total Retail Sales		51,034			49,807			2.5	%		0.4	%		104,995			100,956			4.0	%		1.5	%
Special Sales		8,614			8,040			7.1	%					18,521			16,537			12.0	%
Total Consolidated Electric Sales - Regulated Utilities		59,648			57,847			3.1	%					123,516			117,493			5.1	%
Average Number of Customers
Residential		6,266,316			6,205,209			1.0	%					6,265,818			6,203,184			1.0	%
General Service		941,986			935,671			0.7	%					940,517			933,951			0.7	%
Industrial		18,308			18,635			(1.8	%)					18,341			18,662			(1.7	%)
Other Energy Sales		22,468			22,193			1.2	%					22,464			22,152			1.4	%
Total Regular Sales		7,249,078			7,181,708			0.9	%					7,247,140			7,177,949			1.0	%
Special Sales		60			61			(1.6	%)					62			62			0.0	%
Total Average Number of Customers - Regulated Utilities		7,249,138			7,181,769			0.9	%					7,247,202			7,178,011			1.0	%
Heating and Cooling Degree Days (3)
Carolinas - Actual
Heating Degree Days		156			232			(32.8	%)					2,125			2,007			5.9	%
Cooling Degree Days		593			466			27.3	%					593			467			27.0	%
Variance from Normal
Heating Degree Days		(15.7	%)		22.8	%		n/a						15.4	%		6.6	%		n/a
Cooling Degree Days		10.2	%		(14.3	%)		n/a						8.2	%		(15.2	%)		n/a
Midwest - Actual
Heating Degree Days		443			462			(4.1	%)					3,756			3,296			14.0	%
Cooling Degree Days		350			338			3.6	%					350			338			3.6	%
Variance from Normal
Heating Degree Days		4.2	%		3.6	%		n/a						22.3	%		5.3	%		n/a
Cooling Degree Days		(0.3	%)		(0.9	%)		n/a						(1.7	%)		(1.5	%)		n/a
Florida - Actual
Heating Degree Days		1			—			n/a						418			338			23.7	%
Cooling Degree Days		1,061			1,041			1.9	%					1,205			1,220			(1.2	%)
Variance from Normal
Heating Degree Days		(90.9	%)		(100.0	%)		n/a						0.7	%		(18.8	%)		n/a
Cooling Degree Days		0.7	%		(1.2	%)		n/a						(2.1	%)		(0.8	%)		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

17

Duke Energy Carolinas

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended												Six Months Ended
	June 30												June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
GWH Sales (1)
Residential		5,872			5,818			0.9	%					14,436			13,523			6.8	%
General Service		6,953			6,777			2.6	%					13,734			13,303			3.2	%
Industrial		5,467			5,329			2.6	%					10,381			10,140			2.4	%
Other Energy Sales		76			72			5.6	%					149			146			2.1	%
Unbilled Sales		366			16			2187.5	%					185			26			611.5	%
Total Regular Electric Sales		18,734			18,012			4.0	%		0.6	%		38,885			37,138			4.7	%		1.5	%
Special Sales		2,102			2,190			(4.0	%)					5,644			5,310			6.3	%
Total Electric Sales - Duke Energy Carolinas		20,836			20,202			3.1	%					44,529			42,448			4.9	%
Average Number of Customers
Residential		2,083,576			2,064,385			0.9	%					2,082,721			2,063,362			0.9	%
General Service		341,212			338,779			0.7	%					340,700			338,147			0.8	%
Industrial		6,531			6,627			(1.4	%)					6,527			6,639			(1.7	%)
Other Energy Sales		14,505			14,412			0.6	%					14,495			14,381			0.8	%
Total Regular Sales		2,445,824			2,424,203			0.9	%					2,444,443			2,422,529			0.9	%
Special Sales		24			24			0.0	%					25			24			4.2	%
Total Average Number of Customers - Duke Energy Carolinas		2,445,848			2,424,227			0.9	%					2,444,468			2,422,553			0.9	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		181			249			(27.3	%)					2,223			2,106			5.6	%
Cooling Degree Days		557			438			27.2	%					557			438			27.2	%
Variance from Normal
Heating Degree Days		(10.0	%)		20.9	%		n/a						16.0	%		7.4	%		n/a
Cooling Degree Days		8.4	%		(15.1	%)		n/a						6.5	%		(16.3	%)		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

18

Duke Energy Progress

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended June 30												Six Months Ended June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
GWH Sales (1)
Residential		3,959			3,812			3.9	%					9,539			8,771			8.8	%
General Service		3,769			3,675			2.6	%					7,410			7,157			3.5	%
Industrial		2,616			2,664			(1.8	%)					4,997			5,108			(2.2	%)
Other Energy Sales		29			30			(3.3	%)					59			60			(1.7	%)
Unbilled Sales		(30	)		(48	)		37.5	%					(27	)		(13	)		(107.7	%)
Total Regular Electric Sales		10,343			10,133			2.1	%		(1.5	%)		21,978			21,083			4.2	%		0.4	%
Special Sales		4,350			3,922			10.9	%					8,876			7,673			15.7	%
Total Electric Sales - Duke Energy Progress		14,693			14,055			4.5	%					30,854			28,756			7.3	%
Average Number of Customers
Residential		1,253,519			1,240,416			1.1	%					1,252,564			1,238,992			1.1	%
General Service		223,061			221,592			0.7	%					222,477			220,900			0.7	%
Industrial		4,277			4,375			(2.2	%)					4,284			4,385			(2.3	%)
Other Energy Sales		1,730			1,812			(4.5	%)					1,741			1,812			(3.9	%)
Total Regular Sales		1,482,587			1,468,195			1.0	%					1,481,066			1,466,089			1.0	%
Special Sales		15			15			0.0	%					15			15			0.0	%
Total Average Number of Customers - Duke Energy Progress		1,482,602			1,468,210			1.0	%					1,481,081			1,466,104			1.0	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		131			214			(38.8	%)					2,027			1,909			6.2	%
Cooling Degree Days		629			494			27.3	%					629			496			26.8	%
Variance from Normal
Heating Degree Days		(22.0	%)		25.1	%		n/a						14.7	%		5.9	%		n/a
Cooling Degree Days		11.7	%		(13.5	%)		n/a						9.6	%		(14.3	%)		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

19

Duke Energy Florida

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended												Six Months Ended
	June 30												June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
GWH Sales (1)
Residential		4,396			4,491			(2.1	%)					8,447			8,235			2.6	%
General Service		3,702			3,694			0.2	%					6,950			6,918			0.5	%
Industrial		803			827			(2.9	%)					1,604			1,582			1.4	%
Other Energy Sales		6			6			0.0	%					12			12			0.0	%
Unbilled Sales		592			379			56.2	%					731			413			77.0	%
Total Regular Sales		9,499			9,397			1.1	%		0.5	%		17,744			17,160			3.4	%		1.8	%
Special Sales		341			456			(25.2	%)					757			709			6.8	%
Total Electric Sales - Duke Energy Florida		9,840			9,853			(0.1	%)					18,501			17,869			3.5	%
Average Number of Customers
Residential		1,498,175			1,476,411			1.5	%					1,495,267			1,475,080			1.4	%
General Service		190,979			188,839			1.1	%					190,708			188,591			1.1	%
Industrial		2,279			2,357			(3.3	%)					2,290			2,359			(2.9	%)
Other Energy Sales		1,556			1,567			(0.7	%)					1,556			1,568			(0.8	%)
Total Regular Sales		1,692,989			1,669,174			1.4	%					1,689,821			1,667,598			1.3	%
Special Sales		14			15			(6.7	%)					15			15			0.0	%
Total Average Number of Customers - Duke Energy Florida		1,693,003			1,669,189			1.4	%					1,689,836			1,667,613			1.3	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		1			—			n/a						418			338			23.7	%
Cooling Degree Days		1,061			1,041			1.9	%					1,205			1,220			(1.2	%)
Variance from Normal
Heating Degree Days		(90.9	%)		(100.0	%)		n/a						0.7	%		(18.8	%)		n/a
Cooling Degree Days		0.7	%		(1.2	%)		n/a						(2.1	%)		(0.8	%)		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

20

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended												Six Months Ended
	June 30												June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
GWH Sales (1)
Residential		1,813			1,837			(1.3	%)					4,592			4,335			5.9	%
General Service		2,299			2,283			0.7	%					4,671			4,565			2.3	%
Industrial		1,494			1,423			5.0	%					2,930			2,819			3.9	%
Other Energy Sales		28			28			0.0	%					56			56			0.0	%
Unbilled Sales		160			130			23.1	%					(82	)		(16	)		(412.5	%)
Total Regular Electric Sales		5,794			5,701			1.6	%		2.6	%		12,167			11,759			3.5	%		2.3	%
Special Sales		30			99			(69.7	%)					136			219			(37.9	%)
Total Electric Sales - Duke Energy Ohio		5,824			5,800			0.4	%					12,303			11,978			2.7	%
Average Number of Customers
Residential		741,069			737,683			0.5	%					742,324			737,483			0.7	%
General Service		86,497			86,233			0.3	%					86,374			86,145			0.3	%
Industrial		2,519			2,557			(1.5	%)					2,521			2,559			(1.5	%)
Other Energy		3,171			2,934			8.1	%					3,171			2,930			8.2	%
Total Regular Sales		833,256			829,407			0.5	%					834,390			829,117			0.6	%
Special Sales		1			1			0.0	%					1			1			0.0	%
Total Average Number of Electric Customers - Duke Energy Ohio		833,257			829,408			0.5	%					834,391			829,118			0.6	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		361			423			(14.7	%)					3,470			3,126			11.0	%
Cooling Degree Days		382			346			10.4	%					382			346			10.4	%
Variance from Normal
Heating Degree Days		(11.7	%)		(0.7	%)		n/a						16.8	%		3.3	%		n/a
Cooling Degree Days		10.7	%		3.0	%		n/a						9.1	%		2.4	%		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

21

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Gas Information

June 2014

	Three Months Ended												Six Months Ended
	June 30												June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
MCF Sales (1)
Residential		5,948,555			6,575,647			(9.5	%)					29,534,496			26,620,497			10.9	%
General Service		3,931,932			4,151,037			(5.3	%)					17,624,423			15,799,582			11.5	%
Industrial		1,508,405			1,281,485			17.7	%					4,321,235			3,688,976			17.1	%
Other Energy Sales		4,822,263			4,733,817			1.9	%					11,419,293			10,888,315			4.9	%
Unbilled Sales		(2,435,000	)		(4,003,000	)		39.2	%					(4,902,000	)		(4,915,000	)		0.3	%
Total Gas Sales - Duke Energy Ohio		13,776,155			12,738,986			8.1	%		3.1	%		57,997,447			52,082,370			11.4	%		2.3	%
Average Number of Customers
Residential		472,847			470,301			0.5	%					474,482			470,936			0.8	%
General Service		43,330			43,300			0.1	%					44,316			44,151			0.4	%
Industrial		1,609			1,625			(1.0	%)					1,663			1,657			0.4	%
Other Energy		155			165			(6.1	%)					156			166			(6.0	%)
Total Average Number of Gas Customers - Duke Energy Ohio		517,941			515,391			0.5	%					520,617			516,910			0.7	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		361			423			(14.7	%)					3,470			3,126			11.0	%
Cooling Degree Days		382			346			10.4	%					382			346			10.4	%
Variance from Normal
Heating Degree Days		(11.7	%)		(0.7	%)		n/a						16.8	%		3.3	%		n/a
Cooling Degree Days		10.7	%		3.0	%		n/a						9.1	%		2.4	%		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

22

Duke Energy Indiana

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

June 2014

	Three Months Ended												Six Months Ended
	June 30												June 30
										% Inc. (Dec.)												% Inc. (Dec.)
							%			Weather									%			Weather
	2014			2013			Inc. (Dec.)			Normal (2)			2014			2013			Inc. (Dec.)			Normal (2)
GWH Sales (1)
Residential		1,871			1,899			(1.5	%)					5,090			4,727			7.7	%
General Service		2,002			2,002			0.0	%					4,107			4,033			1.8	%
Industrial		2,701			2,578			4.8	%					5,224			5,097			2.5	%
Other Energy Sales		14			13			7.7	%					27			26			3.8	%
Unbilled Sales		76			72			5.6	%					(227	)		(67	)		(238.8	%)
Total Regular Electric Sales		6,664			6,564			1.5	%		1.2	%		14,221			13,816			2.9	%		2.0	%
Special Sales		1,791			1,373			30.4	%					3,108			2,626			18.4	%
Total Electric Sales - Duke Energy Indiana		8,455			7,937			6.5	%					17,329			16,442			5.4	%
Average Number of Customers
Residential		689,977			686,314			0.5	%					692,942			688,267			0.7	%
General Service		100,237			100,228			0.0	%					100,258			100,168			0.1	%
Industrial		2,702			2,719			(0.6	%)					2,719			2,720			(0.0	%)
Other Energy		1,506			1,468			2.6	%					1,501			1,461			2.7	%
Total Regular Sales		794,422			790,729			0.5	%					797,420			792,616			0.6	%
Special Sales		6			6			0.0	%					6			7			(14.3	%)
Total Average Number of Electric Customers - Duke Energy Indiana		794,428			790,735			0.5	%					797,426			792,623			0.6	%
Heating and Cooling Degree Days (3)
Actual
Heating Degree Days		525			499			5.2	%					4,042			3,465			16.7	%
Cooling Degree Days		318			329			(3.3	%)					318			329			(3.3	%)
Variance from Normal
Heating Degree Days		18.5	%		7.8	%		n/a						27.5	%		7.1	%		n/a
Cooling Degree Days		(10.9	%)		-4.4	%		n/a						(12.2	%)		(4.9	%)		n/a

(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

(2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

(3) Certain 2013 data has been recast to conform to the 2014 methodology which provides for consistency across all Regulated Utilities’ jurisdictions.

23

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Three Months Ended June 30, 2014

(Dollars in millions, except per-share amounts)

				Special Items
	Adjusted Earnings			Costs to Achieve, Progress Merger			Economic Hedges (Mark- to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT INCOME
Regulated Utilities	$	689		$	—		$	—		$	—		$	—		$	689
International Energy		146			—			—			—			—			146
Commercial Power		16			—			(136	)B		—			(136	)		(120	)
Total Reportable Segment Income		851			—			(136	)		—			(136	)		715
Other		(65	)		(38	)A		—			—			(38	)		(103	)
Total Reportable Segment Income and Other Net Expense		786			(38	)		(136	)		—			(174	)		612
Discontinued Operations		—			—			—			(3	)C		(3	)		(3	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	786		$	(38	)	$	(136	)	$	(3	)	$	(177	)	$	609
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	1.11		$	(0.06	)	$	(0.19	)	$	—		$	(0.25	)	$	0.86
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	1.11		$	(0.06	)	$	(0.19	)	$	—		$	(0.25	)	$	0.86

A - Net of $23 million tax benefit. $61 million recorded in Operating Expenses on the Condensed Consolidated Statements of Operations.

B - Net of $77 million tax benefit. $185 million loss recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $28 million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed Consolidated Statements of Operations.

C - Recorded in Income (loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) - in millions

Basic	707
Diluted	707

* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods.

24

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2014

(Dollars in millions, except per-share amounts)

				Special Items
	Adjusted Earnings			Costs to Achieve, Progress Merger			Midwest Generation Impairment			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT INCOME
Regulated Utilities	$	1,426		$	—		$	—		$	—		$	—		$	—		$	1,426
International Energy		276			—			—			—			—			—			276
Commercial Power		26			—			(867	)C		(158	)B		—			(1,025	)		(999	)
Total Reportable Segment Income		1,728			—			(867	)		(158	)		—			(1,025	)		703
Other		(113	)		(72	)A		—			—			—			(72	)		(185	)
Total Reportable Segment Income and Other Net Expense		1,615			(72	)		(867	)		(158	)		—			(1,097	)		518
Discontinued Operations		—			—			—			—			(6	)D		(6	)		(6	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	1,615		$	(72	)	$	(867	)	$	(158	)	$	(6	)	$	(1,103	)	$	512
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	2.28		$	(0.10	)	$	(1.23	)	$	(0.22	)	$	(0.01	)	$	(1.56	)	$	0.72
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	2.28		$	(0.10	)	$	(1.23	)	$	(0.22	)	$	(0.01	)	$	(1.56	)	$	0.72

A - Net of $44 million tax benefit. $1 million recorded as a decrease in Operating Revenues, $114 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.

B - Net of $89 million tax benefit. $309 million loss recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $62 million gain recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed Consolidated Statements of Operations.

C - Net of $514 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statement of Operations.

D - Recorded in Income (loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) - in millions

Basic	707
Diluted	707

* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods.

25

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Three Months Ended June 30, 2013

(Dollars in millions, except per-share amounts)

				Special Items
	Adjusted Earnings			Costs to Achieve, Progress Merger			Nuclear Development Charges			Litigation Reserve			Crystal River Unit 3 Impairment			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT INCOME
Regulated Utilities	$	590		$	—		$	(57	)D	$	—		$	(180	)F	$	—		$	—		$	(237	)	$	353
International Energy		87			—			—			—			—			—			—			—			87
Commercial Power		(3	)		—			—			—			—			44	B		—			44			41
Total Reportable Segment Income		674			—			(57	)		—			(180	)		44			—			(193	)		481
Other		(57	)		(51	)A		—			(31	)E		—			—			—			(82	)		(139	)
Total Reportable Segment Income and Other Net Expense		617			(51	)		(57	)		(31	)		(180	)		44			—			(275	)		342
Discontinued Operations		—			—			—			—			—			—			(3	)C		(3	)		(3	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	617		$	(51	)	$	(57	)	$	(31	)	$	(180	)	$	44		$	(3	)	$	(278	)	$	339
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	0.87		$	(0.07	)	$	(0.08	)	$	(0.04	)	$	(0.26	)	$	0.06		$	—		$	(0.39	)	$	0.48
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.87		$	(0.07	)	$	(0.08	)	$	(0.04	)	$	(0.26	)	$	0.06		$	—		$	(0.39	)	$	0.48

A - Net of $31 million tax benefit. $11 million recorded as an increase in Operating Revenues, $92 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.

B - Net of $29 million tax expense. $79 million gain recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $10 million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed Consolidated Statements of Operations.

C - Recorded in Income (loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

D - Net of $30 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statement of Operations.

E - Net of $19 million tax benefit. Recorded in Operations, maintenance and other (Operating Expenses) on the Condensed Consolidated Statement of Operations.

F - Net of $115 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statement of Operations.

Weighted Average Shares (reported and adjusted) - in millions

Basic	706
Diluted	706

* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods.

26

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2013

(Dollars in millions, except per-share amounts)

				Special Items
	Adjusted Earnings			Costs to Achieve, Progress Merger			Nuclear Development Charges			Litigation Reserve			Crystal River Unit 3 Impairment			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT INCOME
Regulated Utilities	$	1,246		$	—		$	(57	)D	$	—		$	(180	)F	$	—		$	—		$	(237	)	$	1,009
International Energy		184			—			—			—			—			—			—			—			184
Commercial Power		3			—			—			—			—			(4	)B		—			(4	)		(1	)
Total Reportable Segment Income		1,433			—			(57	)		—			(180	)		(4	)		—			(241	)		1,192
Other		(100	)		(85	)A		—			(31	)E		—			—			—			(116	)		(216	)
Total Reportable Segment Income and Other Net Expense		1,333			(85	)		(57	)		(31	)		(180	)		(4	)		—			(357	)		976
Discontinued Operations		—			—			—			—			—			—			(3	)C		(3	)		(3	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	1,333		$	(85	)	$	(57	)	$	(31	)	$	(180	)	$	(4	)	$	(3	)	$	(360	)	$	973
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	1.89		$	(0.13	)	$	(0.08	)	$	(0.04	)	$	(0.26	)	$	(0.01	)	$	—		$	(0.52	)	$	1.37
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	1.89		$	(0.13	)	$	(0.08	)	$	(0.04	)	$	(0.26	)	$	(0.01	)	$	—		$	(0.52	)	$	1.37

A - Net of $52 million tax benefit. $26 million recorded as an increase in Operating Revenues, $162 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.

B - Net of $2 million tax benefit. $11 million gain recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $17 million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed Consolidated Statements of Operations.

C - Recorded in Income (loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

D - Net of $30 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statement of Operations.

E - Net of $19 million tax benefit. Recorded in Operations, maintenance and other (Operating Expenses) on the Condensed Consolidated Statement of Operations.

F - Net of $115 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statement of Operations.

Weighted Average Shares (reported and adjusted) - in millions

Basic	705
Diluted	706

* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods.

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