Debt And Credit Facilities

12 Months Ended

Dec. 31, 2012

Debt And Credit Facilities [Abstract]

6. DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize the Duke Energy Registrants' outstanding debt.

Summary of Debt and Related Terms
		December 31, 2012
(in millions)		Weighted Average Interest Rate		Duke Energy		Duke Energy Carolinas		Progress Energy		Progress Energy Carolinas		Progress Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Unsecured debt, maturing 2013 - 2039		5.44	%	$	12,722	$	1,159	$	4,150	$	―	$	150	$	805	$	1,146
Secured debt, maturing 2013 - 2037		3.08	%		1,873		300		5		5		―		―		―
First mortgage bonds, maturing 2013 - 2042^(a)		5.00	%		17,856		6,562		8,775		4,025		4,750		700		1,819
Capital leases, maturing 2013 - 2051^(b)		5.19	%		1,689		32		339		150		189		35		23
Junior subordinated debt, maturing 2039		7.10	%		309		―		309		―		―		―		―
Other debt, maturing 2027		4.77	%		8		―		―		―		―		8		―
Tax-exempt bonds, maturing 2014 - 2041^(c)		1.39	%		2,357		395		910		669		241		479		573
Non-recourse notes payable of VIEs					312		―		―		―		―		―		―
Notes payable and commercial paper^(d)		0.83	%		1,195		―		―		―		―		―		―
Money pool borrowings					―		300		455		364		―		245		231
Fair value hedge carrying value adjustment					12		10		―		―		―		2		―
Unamortized debt discount and premium, net^(e)					2,185		(17)		(60)		(9)		(10)		(32)		(9)
Total debt^(f)					40,518		8,741		14,883		5,204		5,320		2,242		3,783
Short-term notes payable and commercial paper					(745)		―		―		―		―		―		―
Short-term money pool borrowings					―		―		(455)		(364)		―		(245)		(81)
Current maturities of long-term debt					(3,110)		(406)		(843)		(407)		(435)		(261)		(405)
Short-term non-recourse notes payable of VIEs					(312)		―		―		―		―		―		―
Total long-term debt, including long-term debt of VIEs				$	36,351	$	8,335	$	13,585	$	4,433	$	4,885	$	1,736	$	3,297

(a)	Substantially all of the Duke Energy Registrants' electric and gas plant in service is mortgaged under mortgage bond indentures.
(b)	At December 31, 2012, capital leases of Duke Energy included $158 million and $907 million of capital lease purchase accounting adjustments for Progress Energy Carolinas and Progress Energy Florida, respectively, related to power purchase agreements that are not accounted for as leases on their financial statements because of grandfathering provisions in GAAP.
(c)	$1.558 billion, $360 million, $910 million, $669 million, $241 million and $288 million were secured by first mortgage bonds at Duke Energy, Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana, respectively, and $231 million, $27 million and $204 million were secured by a letter of credit at Duke Energy, Duke Energy Ohio, and Duke Energy Indiana, respectively.
(d)	Includes $450 million that was classified as Long-term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that back-stop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted-average days to maturity was 18 days.
(e)	At December 31, 2012, $2.311 billion in purchase accounting adjustments related to the merger with Progress Energy were reflected in the balance for Duke Energy. See Note 2 for additional information.
(f)	Includes $451 million of debt for Duke Energy that was denominated in Brazilian Reals and $61 million denominated in Chilean Pesos.

		December 31, 2011
(in millions)		Weighted Average Interest Rate		Duke Energy		Duke Energy Carolinas		Progress Energy		Progress Energy Carolinas		Progress Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Unsecured debt, maturing 2012 - 2039		5.93	%	$	8,961	$	2,313	$	4,650	$	500	$	150	$	1,305	$	1,148
Secured debt, maturing 2012 - 2035		3.70	%		1,118		300		―		―		―		―		―
First mortgage bonds, maturing 2013 - 2041^(a)		5.24	%		8,182		5,913		7,125		3,025		4,100		700		1,569
Capital leases, maturing 2012 - 2047		8.10	%		306		34		211		12		199		44		27
Junior subordinated debt					―		―		309		―		―		―		―
Other debt, maturing 2014 - 2027		5.25	%		82		―		5		5		―		8		―
Tax exempt bonds, maturing 2012 - 2041^(b)		1.40	%		1,515		415		910		669		241		525		574
Non-recourse notes payable of VIEs					273		―		―		―		―		―		―
Notes payable and commercial paper^(c)		0.61	%		604		―		671		188		233		―		―
Money pool borrowings					―		300		―		31		8		―		450
Fair value hedge carrying value adjustment					19		13		―		―		―		7		―
Unamortized debt discount and premium, net					(60)		(14)		(58)		(5)		(9)		(34)		(9)
Total debt^(d)					21,000		9,274		13,823		4,425		4,922		2,555		3,759
Short-term notes payable and commercial paper					(154)		―		(671)		(188)		(233)		―		―
Short-term money pool borrowings					―		―		―		(31)		(8)		―		(300)
Current maturities of long-term debt					(1,894)		(1,178)		(961)		(502)		(10)		(507)		(6)
Short-term non-recourse notes payable of VIEs					(273)		―		―		―		―		―		―
Total long-term debt, including long-term debt of VIEs				$	18,679	$	8,096	$	12,191	$	3,704	$	4,671	$	2,048	$	3,453

(a)	Substantially all of the Duke Energy Registrants' electric and gas plant in service is mortgaged under the mortgage bond indentures.
(b)	$650 million, $360 million, $910 million, $669 million, $241 million and $289 million were secured by first mortgage bonds at Duke Energy, Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana, respectively, and $231 million, $27 million and $204 million were secured by a letter of credit at Duke Energy, Duke Energy Ohio, and Duke Energy Indiana, respectively.
(c)	Includes $450 million that was classified as Long-term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that back-stop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted-average days to maturity was 17 days.
(d)	Includes $420 million of debt for Duke Energy that was denominated in Brazilian Reals.

Summary of Significant Debt Issuances

	The following tables summarize the Duke Energy Registrants' significant debt issuances (in millions).

					For the year ended December 31, 2012
Issuance Date		Maturity Date	Interest Rate		Duke Energy (Parent)			Duke Energy Carolinas			Progress Energy (Parent)			Progress Energy Carolinas			Progress Energy Florida			Duke Energy Indiana
Unsecured Debt:
March 2012		April 2022	3.15	%	$	-		$	-		$	450	^(a)	$	-		$	-		$	-
August 2012		August 2017	1.63	%		700	^(b)		-			-			-			-			-
August 2012		August 2022	3.05	%		500	^(b)		-			-			-			-			-
Secured Debt:
April 2012		September 2024	2.64	%		330	^(c)		-			-			-			-			-
December 2012		March 2013	2.77	%		203	^(d)		-			-			-			-			-
December 2012		March 2013	4.74	%		220	^(d)		-			-			-			-			-
December 2012		June 2013	1.01	%		190	^(e)		-			-			-			-			-
December 2012		December 2025	1.56	%		200	^(e)		-			-			-			-			-
First Mortgage Bonds:																					-
March 2012		March 2042	4.20	%		-			-			-			-			-			250	^(f)
May 2012		May 2022	2.80	%		-			-			-			500	^(g)		-			-
May 2012		May 2042	4.10	%		-			-			-			500	^(g)		-			-
September 2012		September 2042	4.00	%		-			650	^(h)		-			-			-			-
November 2012		November 2015	0.65	%		-			-			-			-			250	⁽ⁱ⁾		-
November 2012		November 2042	3.85	%		-			-			-			-			400	⁽ⁱ⁾		-
Total Issuances					$	2,343		$	650		$	450		$	1,000		$	650		$	250

(a)	The net proceeds, along with available cash on hand, were used to repay $450 million 6.85% senior unsecured notes due April 15, 2012.
(b)	Proceeds from the issuances were used to repay at maturity $500 million of debentures due September 15, 2012, as well as for general corporate purposes, including the repayment of commercial paper.
(c)	Proceeds from the issuance were used to reimburse construction costs for DS Cornerstone, LLC joint venture wind projects. Note was subsequently deconsolidated upon execution of joint venture. See Note 18 for further details.
(d)	Proceeds from the issuances were used to fund the existing Los Vientos wind power portfolio.
(e)	Debt issuances were executed in connection with the acquisition of Ibener. Both loans are collateralized with cash deposits equal to 101% of the loan amounts. See Note 2 for further details.
(f)	Proceeds from the issuance were used to repay a portion of outstanding short-term debt.
(g)	Proceeds from the issuances were used to repay at maturity $500 million of 6.50% senior unsecured notes due July 15, 2012 and a portion of Progress Energy Carolinas outstanding commercial paper and notes payable to affiliated companies.
(h)	Proceeds from the issuance were used to repay at maturity the $420 million debentures due through November 2012, as well as for general corporate purposes, including the funding of capital expenditures.
(i)	Proceeds from the issuances will be used to repay $425 million 4.80% first mortgage bonds due March 1, 2013, as well as for general corporate purposes.

					For the year ended December 31, 2011
Issuance Date		Maturity Date	Interest Rate		Duke Energy (Parent)			Duke Energy Carolinas			Progress Energy (Parent)			Progress Energy Carolinas			Progress Energy Florida
Unsecured Debt:
January 2011		January 2021	4.40	%	$	-		$	-		$	500	^(a)	$	-		$	-
August 2011		September 2021	3.55	%		500	^(b)		-			-			-			-
November 2011		November 2016	2.15	%		500	^(c)		-			-			-			-
First Mortgage Bonds:
May 2011		June 2021	3.90	%		-			500	^(d)		-			-			-
August 2011		September 2021	3.10	%		-			-			-			-			300	^(e)
September 2011		August 2021	3.00	%		-			-			-			500	^(f)		-
December 2011		December 2016	1.75	%		-			350	^(g)		-			-			-
December 2011		December 2041	4.25	%		-			650	^(g)		-			-			-
Total Issuances					$	1,000		$	1,500		$	500		$	500		$	300

(a)	Proceeds from the issuance, along with available cash on hand, were used to repay $700 million 7.10% senior unsecured notes due March 1, 2011.
(b)	Proceeds from the issuance were used to repay a portion of commercial paper as it matured, to fund capital expenditures in Duke Energy's unregulated businesses in the U.S. and for general corporate purposes.
(c)	Proceeds from the issuance were used to fund capital expenditures in unregulated businesses in the U.S. and for general corporate purposes.
(d)	Proceeds from the issuance were used to fund capital expenditures and for general corporate purposes.
(e)	Proceeds from the issuance were used to repay a portion of outstanding short-term debt, of which $300 million was used to repay the July 15, 2011 maturity of 6.65% first mortgage bonds.
(f)	Proceeds from the issuance were used to repay outstanding short-term debt and the remainder was used for general corporate purposes, including construction expenditures.
(g)	Proceeds from the issuances were used to repay $750 million 6.25% senior unsecured notes which matured January 15, 2012, with the remainder to fund capital expenditures and for general corporate purposes.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of long-term debt on the Duke Energy Registrants' respective Consolidated Balance Sheets as of December 31, 2012. The amounts were presented as Long-term Debt as of December 31, 2011, except for the secured debt. The Duke Energy Registrants currently anticipate satisfying these obligations with proceeds from additional borrowings, unless otherwise noted.

(in millions)		Maturity Date	Interest Rate		December 31, 2012
Unsecured Debt:
Duke Energy (Parent)		June 2013	5.650	%	$	250
Duke Energy Indiana		September 2013	5.000	%		400
Secured Debt:
Duke Energy^(a)		March 2013	3.796	%		423
Duke Energy^(b)		June 2013	1.009	%		190
First Mortgage Bonds:
Duke Energy Carolinas		November 2013	5.750	%		400
Progress Energy Carolinas		September 2013	5.125	%		400
Progress Energy Florida		March 2013	4.800	%		425
Duke Energy Ohio		June 2013	2.100	%		250
Other						372
Current maturities of long-term debt					$	3,110

(a)	Represents a construction loan related to a renewable project that will be converted to a term loan once construction in complete and requirements to convert are fulfilled.
(b)	Notes are fully offset with cash collateral, which is recorded in Other current assets in the Consolidated Balance Sheets as of December 31, 2012.

Other Debt Matters

In the first quarter of 2012, Duke Energy completed the previously announced sale of International Energy's indirect 25% ownership interest in Attiki Gas Supply, S.A (Attiki), a Greek corporation, to an existing equity owner in a series of transactions that resulted in the full discharge of the related debt obligation. No gain or loss was recognized on these transactions. As of December 31, 2011, Duke Energy's investment balance was $64 million and the related debt obligation of $64 million was reflected in Current maturities of long-term debt on Duke Energy's Consolidated Balance Sheets.

In September 2010, Duke Energy filed a registration statement (Form S-3) with the SEC. Under this Form S-3, which is uncapped, Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement also allows for the issuance of common stock by Duke Energy.

On March 1, 2012, the Progress Energy, Inc., as a well-known seasoned issuer, Progress Energy Carolinas and Progress Energy Florida filed a combined shelf registration statement with the SEC, which became effective upon filing with the SEC. The registration statement is effective for three years and does not limit the amount or number of various securities that can be issued. On July 3, 2012, the Progress Energy, Inc. deregistered its equity securities from the registration statement in connection with the merger, but retained its ability to issue senior debt securities and junior subordinated debentures under the registration statement. However, we do not expect the Progress Energy, Inc. to issue any new securities of these types in the future. Under Progress Energy Carolinas' and Progress Energy Florida's registration statements, they may issue various long-term debt securities and preferred stock.

At December 31, 2012 and 2011, $734 million and $2.0 billion, respectively, of debt issued by Duke Energy Carolinas was guaranteed by Duke Energy.

On November 13, 2012, Duke Energy filed a prospectus supplement to the September 2010 Form S-3 with the SEC, to sell up to $1 billion of fixed or variable rate unsecured senior notes, called InterNotes, due one year to 30 years from the date of issuance. The InterNotes will be issued as direct, unsecured and unsubordinated obligations of Duke Energy Corporation. The net proceeds from the sale of InterNotes will be used to fund capital expenditures in our unregulated businesses and for general corporate purposes. The balance as of December 31, 2012 is $36 million, with maturities ranging from 10 to 14 years. The notes are long-term debt obligations of Duke Energy and are reflected as Long-term debt on Duke Energy's Consolidated Balance Sheets.

On April 4, 2011, Duke Energy filed a Form S-3 with the SEC to sell up to $1 billion of variable denomination floating rate demand notes, called PremierNotes. The Form S-3 states that no more than $500 million of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, but may be redeemed in whole or in part by Duke Energy at any time. The notes are non-transferable and may be redeemed in whole or in part at the investor's option. Proceeds from the sale of the notes will be used for general corporate purposes. The balance as of December 31, 2012 and December 31, 2011, was $395 million and $79 million, respectively. The notes are a short-term debt obligation of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy's Consolidated Balance Sheets.

In January 2013, Duke Energy issued $500 million of unsecured junior subordinated debentures, which carry a fixed interest rate of 5.125%, are callable at par after five years and mature January 15, 2073. Proceeds from the issuance were used to redeem at par $300 million of 7.10% junior subordinated debt in February 2013, with the remainder to repay a portion of commercial paper at it matures, to fund capital expenditures of our unregulated businesses and for general corporate purposes.

Money Pool

The Subsidiary Registrants receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating under this arrangement. The money pool is structured such that the Subsidiary Registrants separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between the money pool participants. Per the terms of the money pool arrangement the parent company, Duke Energy, may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly owned subsidiaries, all money pool balances are eliminated within Duke Energy's Consolidated Balance Sheets.

Prior to the merger with Duke Energy, Progress Energy's subsidiaries participated in internal money pools, administered by Progress Energy Service Company, LLC, to more effectively utilize cash resources and reduce external short-term borrowings. The utility money pool allowed Progress Energy Carolinas and Progress Energy Florida to lend to and borrow from each other. The non-utility money pool allowed unregulated operations to lend to and borrow from each other. The Progress Energy parent could lend money to the utility and non-utility money pools but could not borrow funds.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the respective Subsidiary Registrants' Consolidated Balance Sheets and money pool payable balances are reflected within either Notes payable to affiliated companies or Long-term debt payable to affiliated companies on the respective Consolidated Balance Sheets.

Increases or decreases in money pool receivables are reflected within investing activities on the respective Subsidiary Registrants' Consolidated Statements of Cash Flows, while increases or decreases in money pool borrowings are reflected within financing activities on the respective Subsidiary Registrants Consolidated Statements of Cash Flows.

Maturities and Call Options

		December 31, 2012
(in millions)		Duke Energy^(a)		Duke Energy Carolinas		Progress Energy		Progress Energy Carolinas		Progress Energy Florida		Duke Energy Ohio		Duke Energy Indiana
2013		$	3,098	$	406	$	843	$	407	$	435	$	261	$	405
2014			2,196		346		312		2		11		47		5
2015			2,478		506		1,262		701		561		7		5
2016			2,184		655		313		2		11		56		480
2017			1,321		116		311		51		261		2		3
Thereafter			25,873		6,712		11,387		3,677		4,041		1,624		2,804
Total long-term debt, including current maturities		$	37,150	$	8,741	$	14,428	$	4,840	$	5,320	$	1,997	$	3,702

(a)	At December 31, 2012, capital leases of Duke Energy included $158 million and $907 million of capital lease purchase accounting adjustments for Progress Energy Carolinas and Progress Energy Florida, respectively, related to power purchase agreements that are not accounted for as leases on their financial statements because of grandfathering provisions in GAAP.

The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.

Available Credit Facilities

In November 2011, Duke Energy entered into a $6 billion, 5-year master credit facility, expiring in November 2016, with $4 billion available at closing and the remaining $2 billion became available July 2, 2012, following the closing of the merger with Progress Energy. In October 2012, the Duke Energy Registrants reached an agreement with banks representing $5.63 billion of commitments under the master credit facility to extend the expiration date by one year to November 2017. Through November 2016, the available credit under this facility remains at $6 billion. The Duke Energy Registrants each have borrowing capacity under the master credit facility up to specified sub limits for each borrower. However, Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sub limits of each borrower, subject to a maximum sublimit for each borrower. See the table below for the borrowing sub limits for each of the borrowers as of December 31, 2012. The amount available under the master credit facility has been reduced, as indicated in the table below, by the use of the master credit facility to backstop the issuances of commercial paper, certain letters of credit and variable rate demand tax-exempt bonds that may be put to the Company at the option of the holder. As indicated, borrowing sub limits for the Subsidiary Registrants are also reduced for certain amounts outstanding under the money pool arrangement.

		December 31, 2012
(in millions)			Duke Energy (Parent)		Duke Energy Carolinas		Progress Energy Carolinas		Progress Energy Florida		Duke Energy Ohio		Duke Energy Indiana		Total Duke Energy
Facility size		$	1,750	$	1,250	$	750	$	750	$	750	$	750	$	6,000
Reduction to backstop issuances
	Notes payable and commercial paper		(195)		(300)		―		―		(104)		(201)		(800)
	Outstanding letters of credit		(50)		(7)		(2)		(1)		―		―		(60)
	Tax-exempt bonds		―		(75)		―		―		(84)		(81)		(240)
Available capacity		$	1,505	$	868	$	748	$	749	$	562	$	468	$	4,900

		December 31, 2012
(in millions)		Duke Energy		Duke Energy Carolinas		Duke Energy Ohio		Duke Energy Indiana
Tax-exempt bonds^(a)(b)(c)(d)		$	471	$	75	$	111	$	285
Notes payable and commercial paper^(e)			450		300		―		150
Revolving loan^(f)			200		―		―		―
DERF^(g)			300		300		―		―
Total		$	1,421	$	675	$	111	$	435

(a)	Of the $471 million of tax-exempt bonds outstanding at December 31, 2012 at Duke Energy, the master credit facility served as a backstop for $240 million of these tax-exempt bonds, with the remaining balance backstopped by other specific long-term credit facilities separate from the master credit facility.
(b)	For Duke Energy Carolinas, the master credit facility served as a backstop for the $75 million of tax-exempt bonds outstanding at December 31, 2012.
(c)	Of the $111 million of tax-exempt bonds outstanding at December 31, 2012 at Duke Energy Ohio, the master credit facility served as a backstop for $84 million of these tax-exempt bonds, with the remaining balance backstopped by other specific long-term credit facilities separate from the master credit facility.
(d)	Of the $285 million of tax-exempt bonds outstanding at December 31, 2012 at Duke Energy Indiana, $81 million were backstopped by Duke Energy’s master credit facility, with the remaining balance backstopped by other specific long-term credit facilities separate from the master credit facility.
(e)	Duke Energy has issued $450 million in Commercial Paper, which is backstopped by the master credit facility, and the proceeds are in the form of loans through the money pool to Duke Energy Carolinas and Duke Energy Indiana as of December 31, 2012.
(f)	Duke Energy International Energy's revolving loan is due in December 2013 with the right to extend the maturity date for additional one year periods with a final maturity date no later than December 2026.
(g)	Duke Energy Receivables Finance Company, LLC (DERF) is a wholly owned limited liability company of Duke Energy Carolinas. See Note 18 for further information.

		December 31, 2011
(in millions)		Duke Energy		Duke Energy Carolinas		Duke Energy Ohio		Duke Energy Indiana
Tax exempt bonds^(a)(b)(c)(d)		$	491	$	95	$	111	$	285
Notes payable and commercial paper^(e)			450		300		―		150
DERF			300		300		―		―
Total		$	1,241	$	695	$	111	$	435

(a)	Of the $491 million of tax-exempt bonds outstanding at December 31, 2011 at Duke Energy, the master credit facility served as a backstop for $287 million of these tax-exempt bonds (of which $27 million is in the form of letters of credit), with the remaining balance backstopped by other specific long-term credit facilities separate from the master credit facility.
(b)	For Duke Energy Carolinas, the master credit facility served as a backstop for the $95 million of tax-exempt bonds outstanding at December 31, 2011.
(c)	For Duke Energy Ohio, this master credit facility (of which $27 million is in the form of letters of credit) served as a backstop for the $111 million of tax-exempt bonds outstanding at December 31, 2011.
(d)	Of the $285 million of tax-exempt bonds outstanding at December 31, 2011 at Duke Energy Indiana, $81 million were backstopped by Duke Energy’s master credit facility, with the remaining balance backstopped by other specific long-term credit facilities separate from the master credit facility.
(e)	Duke Energy has issued $450 million in Commercial Paper, which is backstopped by the master credit facility, and the proceeds are in the form of loans through the money pool to Duke Energy Carolinas of $300 million and Duke Energy Indiana of $150 million as of December 31, 2011.

In January 2012, Duke Energy Indiana and Duke Energy Kentucky collectively entered into a $156 million 2-year bilateral letter of credit agreement, under which Duke Energy Indiana and Duke Energy Kentucky may request the issuance of letters of credit up to $129 million and $27 million, respectively, on their behalf to support various series of variable rate demand bonds. In addition, Duke Energy Indiana entered into a $78 million 2-year bilateral letter of credit facility. These credit facilities may not be used for any purpose other than to support the variable rate demand bonds issued by Duke Energy Indiana and Duke Energy Kentucky. In February 2012, letters of credit were issued corresponding to the amount of the facilities to support various series of tax-exempt bonds at Duke Energy Indiana and Duke Energy Kentucky. In February 2013, the letters of credit were amended to extend the expiration date to January 2015.

Restrictive Debt Covenants

The Duke Energy Registrants' debt and credit agreements contain various financial and other covenants. The master credit facility contains a covenant requiring the debt-to-total capitalization ratio to not exceed 65% for each borrower. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2012, each of the Duke Energy Registrants were in compliance with all covenants related to its significant debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or the acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the significant debt or credit agreements contain material adverse change clauses.

Other Loans

During 2012 and 2011, Duke Energy had loans outstanding against the cash surrender value of the life insurance policies that it owns on the lives of its executives. The amounts outstanding were $496 million and $457 million as of December 31, 2012 and 2011, respectively. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Investments and Other Assets on the Consolidated Balance Sheets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details