The Duke Energy Registrants closely monitor the risks associated with commodity price and interest rates changes on their operations and, where appropriate, use various commodity and interest rate instruments to manage these risks. Certain of these derivative instruments qualify for hedge accounting and are designated as hedging instruments, while others either do not qualify as hedges or have not been designated as hedges (hereinafter referred to as undesignated contracts). The Duke Energy Registrants' primary use of energy commodity derivatives is to hedge the generation portfolio against exposure to changes in the prices of electricity and fuel. Interest rate swaps are entered into to manage interest rate risk primarily associated with the Duke Energy Registrants' variable-rate and fixed-rate borrowings. Additionally, Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's nuclear decommissioning trust fund (NDTF) investment holdings may include certain derivative instruments, such as interest rate swaps and credit default swaps, as part of its overall investment strategy. As further discussed in Note 9 the NDTF's are managed by third party investment managers who have the discretion to make investment decisions within risk management guidelines determined by management of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. The fair value of these derivative instruments are included within Nuclear decommissioning trust funds on the Condensed Consolidated Balance Sheets and are not material to the investment balance at June 30, 2013 and December 31, 2012.

The accounting guidance for derivatives requires the recognition of all derivative instruments not identified as NPNS as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. For derivative instruments that qualify for hedge accounting, the Duke Energy Registrants may elect to designate such derivatives as either cash flow hedges or fair value hedges. The Duke Energy Registrants offset fair value amounts recognized on the Condensed Consolidated Balance Sheets related to derivative instruments executed with the same counterparty under the same master netting agreement.

Within the Duke Energy Registrants' regulated businesses, for derivatives that would otherwise be designated as cash flow hedges, gains and losses are reflected as a regulatory liability or asset instead of as a component of AOCI. For derivatives that would otherwise be designated as fair value hedges or left undesignated, gains and losses associated with the change in fair value of these derivative contracts are reflected as a regulatory liability or asset. As a result changes in fair value of these derivatives have no immediate earnings impact.

Within the Duke Energy Registrants' unregulated businesses, for derivative instruments that qualify for hedge accounting and are designated as cash flow hedges, the effective portion of the gain or loss is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gains or losses on the derivative that represent either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that qualify and are designated as a fair value hedge, the gain or loss on the derivative as well as the fully or partially offsetting loss or gain on the hedged item are recognized in earnings in the current period. The Duke Energy Registrants include the gain or loss on the derivative in the same line item as the offsetting loss or gain on the hedged item in the Condensed Consolidated Statements of Operations. Additionally, the Duke Energy Registrants enter into derivative agreements that are economic hedges that either do not qualify for hedge accounting or have not been designated as a hedge. The changes in fair value of these undesignated derivative instruments are reflected in current earnings.

The Duke Energy Registrants are exposed to the impact of market changes in future prices of electricity (energy, capacity and financial transmission rights), coal and natural gas as a result of their energy operations such as electricity generation and the transportation and sale of natural gas. With respect to commodity price risks associated with electricity generation, the Duke Energy Registrants are exposed to changes including, but not limited to, the cost of the coal and natural gas used to generate electricity, the prices of electricity sold in wholesale markets, the cost of capacity and electricity purchased for resale in wholesale markets and the cost of emission allowances primarily at the Duke Energy Registrants' coal fired power plants. Risks associated with commodity price changes on future operations are closely monitored and, where appropriate, various commodity contracts are used to mitigate the effect of such fluctuations on operations. Exposure to commodity price risk is influenced by a number of factors, including, but not limited to, the term of the contract, the liquidity of the market and delivery location.

At June 30, 2013, there were no open commodity derivative instruments that were designated as fair value hedges.

At June 30, 2013, open commodity derivative instruments that were designated as cash flow hedges were not material.

The Duke Energy Registrants use derivative contracts as economic hedges to manage the market risk exposures that arise from providing electricity generation and capacity to large energy customers, energy aggregators, retail customers and other wholesale companies. Undesignated contracts may include contracts not designated as a hedge, contracts that do not qualify for hedge accounting, derivatives that do not or no longer qualify for the NPNS scope exception, and de-designated hedge contracts. These contracts expire as late as 2017.

Undesignated contracts also include contracts associated with operations that Duke Energy continues to wind down or has included as discontinued operations. As these undesignated contracts expire as late as 2021, Duke Energy has entered into economic hedges that leave it minimally exposed to changes in prices over the duration of these contracts.

Duke Energy Carolinas and Duke Energy Progress use derivative contracts primarily as economic hedges to manage the market risk exposures that arise from electricity generation. Duke Energy Carolinas and Duke Energy Progress have also entered into firm power sale agreements, which are accounted for as derivative instruments, as part of the Interim FERC Mitigation in connection with Duke Energy's merger with Progress Energy. Duke Energy Carolinas' undesignated contracts as of June 30, 2013, are primarily associated with forward sales and purchases of power. Duke Energy Progress' undesignated contracts as of June 30, 2013, are primarily associated with forward purchases of fuel used in electricity generation.

Duke Energy Florida uses derivative contracts primarily as economic hedges to manage the market risk exposures that arise from electricity generation. Undesignated contracts at June 30, 2013, are primarily associated with forward purchases of fuel used in electricity generation.

Duke Energy Ohio uses derivative contracts as economic hedges to manage the market risk exposures that arise from providing electricity generation and capacity to large energy customers, energy aggregators, retail customers and other wholesale companies. Undesignated contracts at June 30, 2013, are primarily associated with forward sales and purchases of power, coal and gas for the Commercial Power segment.

Duke Energy Indiana uses derivative contracts as economic hedges to manage the market risk exposures that arise from electricity generation. Undesignated contracts at June 30, 2013, are primarily associated with forward purchases and sales of power, and financial transmission rights.

The tables below show information relating to the volume of the Duke Energy Registrants outstanding commodity derivative activity. Amounts disclosed represent the notional volumes of commodity contracts accounted for at fair value. For option contracts, notional amounts include only the delta-equivalent volumes which represent the notional volumes times the probability of exercising the option based on current price volatility. Volumes associated with contracts qualifying for the NPNS exception have been excluded from the table below. Amounts disclosed represent the absolute value of notional amounts. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown below. For additional information on notional dollar amounts of debt subject to derivative contracts accounted for at fair value, see “Interest Rate Risk” section below.


		June 30, 2013
		Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity-energy (Gigawatt-hours)^(a)		67,124	1,634	1,546	1,546	―	64,599	815
Natural gas (millions of decatherms)		543	―	346	129	217	197	―

		December 31, 2012
		Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity-energy (Gigawatt-hours)^(a)		52,104	2,028	1,850	1,850	―	51,215	97
Natural gas (millions of decatherms)		528	―	348	118	230	180	―

(a)	Amounts at Duke Energy Ohio included intercompany positions that were eliminated at Duke Energy.

The Duke Energy Registrants are exposed to risk resulting from changes in interest rates as a result of their issuance or anticipated issuance of variable and fixed-rate debt and commercial paper. Interest rate exposure is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring the effects of market changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into financial contracts; primarily interest rate swaps and U.S. Treasury lock agreements. Additionally, in anticipation of certain fixed-rate debt issuances, a series of forward starting interest rate swaps may be executed to lock in components of the market interest rates at the time and terminated prior to or upon the issuance of the corresponding debt. When these transactions occur within a business that meets the criteria for regulatory accounting treatment, these contracts may be treated as undesignated and any pretax gain or loss recognized from inception to termination of the hedges would be recorded as a regulatory liability or asset and amortized as a component of interest expense over the life of the debt. In businesses that don't meet the criteria for regulatory accounting treatment, these derivatives may be designated as hedges whereby any pretax gain or loss recognized from inception to termination of the hedges would be recorded in AOCI and amortized as a component of interest expense over the life of the debt.

Duke Energy has a combination foreign exchange, pay fixed-receive floating interest rate swap to fix the US Dollar equivalent payments on a floating rate Chilean debt issue.

As discussed above, within the Duke Energy Carolinas, Duke Energy Progress, and Duke Energy Florida NDTFs, certain of the fixed income investment managers have authorization to use interest rate swaps and credit default swaps in their investment strategies to either manage risk or enhance returns. Notional amounts for these contracts were not included in the table below as they were not material to the investment balance at June 30, 2013 and December 31, 2012.

The following tables show the notional amounts for derivatives related to interest rate risk.


		June 30, 2013
(in millions)		Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Ohio		Duke Energy Indiana
Cash flow hedges^(a)		$	1,140	$	―	$	―	$	―	$	―
Undesignated contracts^(b)			585		―		―		27		200
Total notional amount		$	1,725	$	―	$	―	$	27	$	200

		December 31, 2012
(in millions)		Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Ohio		Duke Energy Indiana
Cash flow hedges^(a)		$	1,047	$	―	$	―	$	―	$	―
Undesignated contracts			290		50		50		27		200
Fair value hedges			250		―		―		250		―
Total notional amount		$	1,587	$	50	$	50	$	277	$	200

(a)	Duke Energy includes amounts related to non-recourse variable rate long-term debt of VIEs of $592 million and $620 million at June 30, 2013, and at December 31, 2012, respectively.
(b)	In July 2013, $200 million of undesignated interest rate swaps at Duke Energy Indiana were terminated due to a new debt issuance. See Note 6 for more information.

The following table shows fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


	June 30, 2013				December 31, 2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other	$	―	$	1	$	―	$	2
Deferred credits and other liabilities: other		―		3		―		1
Interest rate contracts
Current assets: other		―		―		2		―
Investments and other assets: other		10		―		7		―
Current Liabilities: Other		―		50		―		81
Deferred credits and other liabilities: other		12		13		―		35
Total Derivatives Designated as Hedging Instruments		22		67		9		119
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other		50		2		41		2
Investments and other assets: other		137		93		106		50
Current liabilities: other		156		404		106		407
Deferred credits and other liabilities: other		4		208		2		255
Interest rate contracts
Current liabilities: other		―		37		―		76
Deferred credits and other liabilities: other		―		5		―		8
Total Derivatives Not Designated as Hedging Instruments		347		749		255		798
Total Derivatives	$	369	$	816	$	264	$	917

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements, or with an Independent System Operator (ISO) such as MISO or PJM. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy may also have available accounts receivable or accounts payable that are subject to master netting agreements that would offset exposures in the event of bankruptcy.


		June 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	183		$	143		$	369		$	287
Gross amounts offset			(157)			(99)			(177)			(118)
Net amount subject to master netting			26			44			192			169
Amounts not subject to master netting			22			21			123			37
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	48	^(a)	$	65	^(b)	$	315	^(c)	$	206	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	127		$	96		$	402		$	295
Gross amounts offset			(114)			(54)			(151)			(90)
Net amounts subject to master netting			13			42			251			205
Amounts not subject to master netting			22			19			166			54
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	35	^(a)	$	61	^(b)	$	417	^(c)	$	259	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations line items in which such gains and losses were included when reclassified from AOCI were as follows.

	Three Months Ended June 30,
(in millions)	2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts		$	58	$	(44)
Commodity contracts			―		―
Total Pretax Gains (Losses) Recorded in AOCI		$	58	$	(44)
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense		$	―	$	(1)
Total Pretax Losses Reclassified from AOCI into Earnings		$	―	$	(1)


		Six Months Ended June 30,
(in millions)		2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts			$	71	$	(26)
Commodity contracts				1		―
Total Pretax Gains (Losses) Recorded in AOCI			$	72	$	(26)
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense			$	(1)	$	(2)
Total Pretax Losses Reclassified from AOCI into Earnings			$	(1)	$	(2)

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationship and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

There was no hedge ineffectiveness during the three and six months ended June 30, 2013 and 2012, and no gains or losses were excluded from the assessment of hedge effectiveness during the same periods.

At June 30, 2013, and 2012, $70 million and $129 million, respectively, of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI and a $6 million pretax gain is expected to be recognized in earnings during the next 12 months as the hedged transactions occur.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Condensed Consolidated Statements of Operations in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)			2013		2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric		$	1	$	―
Revenue, nonregulated electric, natural gas and other			74		―
Fuel used in electric generation and purchased power regulated			(37)		―
Fuel used in electric generation and purchased power - nonregulated			(11)		―
Interest rate contracts
Interest expense			(5)		―
Total Pretax Losses Recognized in Earnings		$	22	$	―
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory asset		$	(110)	$	1
Regulatory liability			9		17
Interest rate contracts
Regulatory asset			26		(32)
Total Pretax Losses Recognized as Regulatory Assets of Liabilities		$	(75)	$	(14)


	Six Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric		$	7	$	―
Revenue, nonregulated electric, natural gas and other			(8)		36
Fuel used in electric generation and purchased power regulated			(89)		―
Fuel used in electric generation and purchased power - nonregulated			(18)		―
Interest rate contracts
Interest expense			(9)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	(117)	$	36
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory asset		$	(5)	$	―
Regulatory liability			4		22
Interest rate contracts
Regulatory asset			39		(10)
Total Pretax Gains Recognized as Regulatory Assets of Liabilities		$	38	$	12

The following table shows fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy Carolinas nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


		June 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current liabilities: other		$	―	$	3	$	―	$	6
Deferred credits and other liabilities: other			―		1		―		6
Total Derivatives Not Designated as Hedging Instruments			―		4		―		12
Total Derivatives		$	―	$	4	$	―	$	12

(a)	Substantially all of these contracts receive regulatory accounting treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Carolinas' financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy Carolinas may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy.

June 30, 2013

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Gross amounts recognized

―

Gross amounts offset

―

Net amount subject to master netting

―

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

―

^(a)

^(b)

December 31, 2012

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Gross amounts recognized

―

Gross amounts offset

―

Net amount subject to master netting

―

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

―

^(a)

^(b)

(a)

Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.

(b)

Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

Losses on cash flow hedges reclassified at Duke Energy Carolinas for the three and six months ended June 30, 2013 and 2012 were not material.

For the three and six months ended June 30, 2013 and 2012, there were $24 million of pretax deferred net losses on settled interest rate cash flow hedges remaining in AOCI for Duke Energy Carolinas.

For the three and six months ended June 30, 2013 and 2012, pretax losses recognized on undesignated contracts for Duke Energy Carolinas were insignificant.

The following table shows fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Progress Energy nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


		June 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other		$	―	$	1	$	―	$	2
Deferred credits and other liabilities: other			―		1		―		1
Total Derivatives Designated as Hedging Instruments			―		2		―		3
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current assets: other			―		―		3		―
Investments and other assets: other			―		―		8		―
Current liabilities: other			4		175		―		231
Deferred credits and other liabilities: other			2		154		―		195
Interest rate contracts
Current liabilities: other			―		―		―		11
Total Derivatives Not Designated as Hedging Instruments			6		329		11		437
Total Derivatives		$	6	$	331	$	11	$	440

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Progress Energy's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Progress Energy may also have available accounts receivable or accounts payables to offset exposures in the event of bankruptcy.


		June 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	4		$	2		$	176		$	151
Gross amounts offset			(4)			(2)			(17)			(21)
Net amount subject to master netting			―			―			159			130
Amounts not subject to master netting			―			―			―			4
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	―	^(a)	$	―	^(b)	$	159	^(c)	$	134	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	3		$	8		$	244		$	192
Gross amounts offset			―			―			(22)			(36)
Net amount subject to master netting			3			8			222			156
Amounts not subject to master netting			―			―			―			4
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	3	^(a)	$	8	^(b)	$	222	^(c)	$	160	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations and Comprehensive Income line items in which such gains and losses were included when reclassified from AOCI were as follows.

	Three Months Ended June 30,
(in millions)	2013			2012
Pretax Losses Recorded in AOCI
Interest rate contracts		$	―	$	(14)
Total Pretax Losses Recorded in AOCI		$	―	$	(14)
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense		$	―	$	(6)
Total Pretax Losses Reclassified from AOCI into Earnings		$	―	$	(6)


		Six Months Ended June 30,
(in millions)		2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts			$	―	$	(10)
Commodity contracts				1		―
Total Pretax Gains (Losses) Recorded in AOCI			$	1	$	(10)
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense			$	―	$	(10)
Total Pretax Losses Reclassified from AOCI into Earnings			$	―	$	(10)

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationships and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

At June 30, 2013 and 2012, $63 million and $235 million, respectively, of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI and a $5 million pretax loss is expected to be recognized in earnings during the next 12 months as the hedged transactions occur. Effective with the merger, Progress Energy no longer designates derivative instruments related to interest rate cash flow hedges for regulated operations as cash flow hedges. As a result, the pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)			2013		2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric		$	1	$	―
Fuel used in electric generation and purchased power - regulated^(a)			(37)		(155)
Other income and expenses, net			―		3
Interest rate contracts
Interest expense			(5)		―
Total Pretax Losses Recognized in Earnings		$	(41)	$	(152)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset		$	(108)	$	38
Regulatory liability			―		―
Interest rate contracts^(c)
Regulatory asset			4		―
Total Pretax (Losses) Gains Recognized as Regulatory Assets of Liabilities		$	(104)	$	38


		Six Months Ended June 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric			$	7	$	―
Fuel used in electric generation and purchased power - regulated^(a)				(89)		(260)
Other income and expenses, net				―		11
Interest rate contracts
Interest expense				(9)		―
Total Pretax Losses Recognized in Earnings			$	(91)	$	(249)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset			$	(3)	$	(168)
Interest rate contracts^(c)
Regulatory asset				9		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets of Liabilities			$	6	$	(168)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded as regulatory assets and liabilities in the Condensed Consolidated Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.
(c)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy Progress nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


		June 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other		$	―	$	1	$	―	$	1
Deferred credits and other liabilities: other			―		1		―		1
Total Derivatives Designated as Hedging Instruments			―		2		―		2
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current assets: other			―		―		1		―
Investments and other assets: other			―		―		1		―
Current liabilities: other			1		67		―		85
Deferred credits and other liabilities: other			―		56		―		68
Interest rate contracts
Current liabilities: other			―		―		―		11
Total Derivatives Not Designated as Hedging Instruments			1		123		2		164
Total Derivatives		$	1	$	125	$	2	$	166

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Progress' financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy Progress may also have available accounts receivable or accounts payable to offset exposures in the events of bankruptcy.


		June 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	1		$	―		$	68		$	57
Gross amounts offset			(1)			―			(2)			(3)
Net amount subject to master netting			―			―			66			54
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	―	^(a)	$	―	^(b)	$	66	^(c)	$	54	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	1		$	1		$	97		$	69
Gross amounts offset			―			―			(2)			(7)
Net amount subject to master netting			1			1			95			62
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	1	^(a)	$	1	^(b)	$	95	^(c)	$	62	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations and Comprehensive Income line items in which such gains and losses were included when reclassified from AOCI were as follows.

	Three Months Ended June 30,
(in millions)	2013			2012
Pretax Gains and (Losses) Recorded in AOCI
Interest rate contracts^(b)		$	―	$	(12)
Total Pretax Losses Recorded in AOCI		$	―	$	(12)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense		$	―	$	(2)
Total Pretax Losses Reclassified from AOCI into Earnings		$	―	$	(2)


		Six Months Ended June 30,
(in millions)		2013			2012
Pretax Gains and (Losses) Recorded in AOCI
Interest rate contracts^(b)			$	―	$	(7)
Total Pretax Losses Recorded in AOCI			$	―	$	(7)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings^(a)
Interest rate contracts
Interest expense			$	―	$	(5)
Total Pretax Losses Reclassified from AOCI into Earnings			$	―	$	(5)

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationships and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

At June 30, 2012, $118 million of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI. Effective with the merger, Duke Energy Progress no longer designates derivative instruments related to interest rate cash flow hedges for regulated operations as cash flow hedges. As a result, the pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument and the line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric		$	1	$	―
Fuel used in electric generation and purchased power -regulated^(a)			(12)		(39)
Other income and expenses, net			―		3
Interest rate contracts
Interest expense			(3)		―
Total Pretax Losses Recognized in Earnings		$	(14)	$	(36)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset		$	(43)	$	10
Interest rate contracts^(c)
Regulatory asset			4		―
Total Pretax (Losses) Gains Recognized as Regulatory Assets of Liabilities		$	(39)	$	10


		Six Months Ended June 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric			$	7	$	―
Fuel used in electric generation and purchased power - regulated^(a)				(29)		(65)
Other income and expenses, net						3
Interest rate contracts
Interest expense				(6)		―
Total Pretax Losses Recognized in Earnings			$	(28)	$	(62)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset			$	(7)	$	(49)
Interest rate contracts^(c)
Regulatory asset				7		―
Total Pretax Losses Recognized as Regulatory Assets of Liabilities			$	―	$	(49)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded in regulatory assets and liabilities in the Condensed Consolidated Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.
(c)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

The fair value amounts of derivative contracts, and the line items in the Condensed Balance Sheets in which such amounts were included were as follows. The fair value of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy Florida nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


		June 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other		$	―	$	1	$	―	$	1
Total Derivatives Designated as Hedging Instruments			―		1		―		1
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Assets: Other			―		―		2		―
Investments and Other Assets: Other			―		―		7		―
Current liabilities: other			3		107		―		146
Deferred credits and other liabilities: other			2		94		―		123
Total Derivatives Not Designated as Hedging Instruments			5		201		9		269
Total Derivatives		$	5	$	202	$	9	$	270

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Florida's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts offset in the table, Duke Energy Florida may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy.


		June 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	3		$	2		$	108		$	94
Gross amounts offset			(3)			(2)			(15)			(18)
Net amount subject to master netting			―			―			93			76
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Balance Sheet		$	―	^(a)	$	―	^(b)	$	93	^(c)	$	76	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	2		$	7		$	147		$	123
Gross amounts offset			―			―			(20)			(29)
Net amount subject to master netting			2			7			127			94
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Balance Sheet		$	2	^(a)	$	7	^(b)	$	127	^(c)	$	94	^(d)

(a)	Included in Other within Current Assets on the Condensed Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Balance Sheet.

Gains on cash flow hedges recorded or reclassified at Duke Energy Florida for the three months and six months ended June 30, 2013 and 2012 were not material.

At June 30, 2012, $43 million of pretax deferred net losses on derivative instruments related to outstanding interest rate cash flow hedges were included as a component of AOCI. Effective with the merger, Duke Energy Florida no longer designates derivative instruments related to interest rate cash flow hedges for regulated operations as cash flow hedges. As a result, the pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument and the line items in the Condensed Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power - regulated^(a)		$	(25)	$	(116)
Interest rate contracts
Interest expense			(1)		―
Total Pretax Losses Recognized in Earnings		$	(26)	$	(116)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset		$	(66)	$	28
Interest rate contracts
Regulatory asset			1		―
Total Pretax (Losses) Gains Recognized as Regulatory Assets of Liabilities		$	(65)	$	28


		Six Months Ended June 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power - regulated^(a)			$	(60)	$	(195)
Interest rate contracts
Interest expense				(2)		―
Total Pretax Losses Recognized in Earnings			$	(62)	$	(195)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory asset			$	3	$	(119)
Interest rate contracts
Regulatory asset				2		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets of Liabilities			$	5	$	(119)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded in regulatory assets and liabilities in the Condensed Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy Ohio nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts.


	June 30, 2013				December 31, 2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Interest rate contracts
Current assets: other	$		$	―	$	2	$	―
Total Derivatives Designated as Hedging Instruments		―		―		2		―
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other		27		8		31		4
Investments and other assets: other		129		93		81		51
Current liabilities: other		152		173		106		132
Deferred credits and other liabilities: other		1		20		―		4
Interest rate contracts
Current liabilities: other		―		1		―		1
Deferred credits and other liabilities: other		―		5		―		7
Total Derivatives Not Designated as Hedging Instruments		309		300		218		199
Total Derivatives	$	309	$	300	$	220	$	199

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Ohio's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements, or with an ISO such as MISO or PJM. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy Ohio may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy.


		June 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	178		$	131		$	180		$	114
Gross amounts offset			(161)			(94)			(166)			(94)
Net amount subject to master netting			17			37			14			20
Amounts not subject to master netting			―			―			1			5
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	17	^(a)	$	37	^(b)	$	15	^(c)	$	25	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	137		$	81		$	136		$	55
Gross amounts offset			(110)			(51)			(125)			(51)
Net amount subject to master netting			27			30			11			4
Amounts not subject to master netting			2			―			1			7
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	29	^(a)	$	30	^(b)	$	12	^(c)	$	11	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

There were no gains or losses on cash flow hedges recorded or reclassified at Duke Energy Ohio for the three and six months ended June 30, 2013 and 2012, respectively.

At June 30, 2013 and December 31, 2012 there were no pretax deferred net gains or losses on derivative instruments related to cash flow hedges remaining in AOCI for Duke Energy Ohio.

The amounts of the pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, nonregulated electric, natural gas and other		$	78	$	4
Fuel used in electric generation and purchased power - nonregulated			(11)		―
Interest rate contracts
Interest expense			(1)		(1)
Total Pretax (Losses) Gains Recognized in Earnings		$	66	$	3
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory asset		$	―	$	―
Interest rate contracts
Regulatory asset			2		(1)
Total Pretax Gains (Losses) Recognized as Regulatory Assets of Liabilities		$	2	$	(1)


	Six Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, nonregulated electric, natural gas and other		$	(13)	$	75
Fuel used in electric generation and purchased power - nonregulated			(18)		―
Interest rate contracts
Interest expense			(1)		(1)
Total Pretax (Losses) Gains Recognized in Earnings		$	(32)	$	74
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory asset		$	―	$	(2)
Regulatory liability					1
Interest rate contracts
Regulatory asset			3		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets of Liabilities		$	3	$	(1)

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets in which such amounts were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements where Duke Energy Indiana nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash associated with the derivative contracts were not netted against the fair value amounts.


		June 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current assets: other		$	18	$	―	$	10	$	―
Current liabilities: other			―		2		―		―
Interest rate contracts
Current liabilities: other			―		35		―		63
Total Derivatives Not Designated as Hedging Instruments			18		37		10		63
Total Derivatives		$	18	$	37	$	10	$	63

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Indiana's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy Indiana may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy.

June 30, 2013

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Gross amounts recognized

―

Gross amounts offset

―

(2)

―

Net amount subject to master netting

―

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

^(a)

―

^(b)

―

December 31, 2012

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Amounts not subject to master netting

Net amounts recognized on the Condensed Consolidated Balance Sheet

^(a)

―

^(b)

―

(a)

Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.

(b)

Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.

Gains on cash flow hedges reclassified at Duke Energy Indiana for the three and six months ended June 30, 2013 and 2012 were not material.

Pretax deferred net gains or losses on derivative instruments related to cash flow hedges remaining in AOCI for Duke Energy Indiana were not material at June 30, 2013, and 2012, respectively.

The amounts of the pretax gains and losses recognized on undesignated contracts by type of derivative instrument and line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended June 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory asset		$	(2)	$	2
Regulatory liability			―		18
Interest rate contracts
Regulatory asset			20		(30)
Total Pretax Gains Recognized as Regulatory Assets of Liabilities		$	18	$	(10)


		Six Months Ended June 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory asset			$	(2)	$	2
Regulatory liability				4		22
Interest rate contracts
Regulatory asset				28		(9)
Total Pretax Gains Recognized as Regulatory Assets of Liabilities			$	30	$	15

(a)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

Certain derivative contracts of the Duke Energy Registrants contain contingent credit features, such as material adverse change clauses or payment acceleration clauses that could result in immediate payments, the posting of letters of credit or the termination of the derivative contract before maturity if specific events occur, such as a credit rating downgrade below investment grade.

The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit-risk related payment provisions.


	June 30, 2013
(in millions)	Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	532	$	261	$	97	$	164	$	268
Fair value of collateral already posted		158		32		4		28		126
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered at the end of the reporting period		246		229		93		136		17

	December 31, 2012
(in millions)	Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	466	$	286	$	108	$	178	$	176
Fair value of collateral already posted		163		59		9		50		104
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered at the end of the reporting period		230		227		99		128		2

Netting of Cash Collateral and Derivative Assets and Liabilities Under Master Netting Arrangements. In accordance with applicable accounting guidance, the Duke Energy Registrants have elected to offset fair value amounts (or amounts that approximate fair value) recognized on their Condensed Consolidated Balance Sheets related to cash collateral amounts receivable or payable against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting agreement. The amounts disclosed in the table below represent the receivables related to the right to reclaim cash collateral and payables related to the obligation to return cash collateral under master netting arrangements. See Note 10 for additional information on fair value disclosures related to derivatives.

June 30, 2013

December 31, 2012

(in millions)

Receivables

Payables

Receivables

Payables

Duke Energy