Debt and Credit Facilities

12 Months Ended

Dec. 31, 2013

Debt And Credit Facilities [Abstract]


			December 31, 2013
(in millions)			Duke Energy		Duke Energy (Parent)		Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Facility size^(a)		$	6,000	$	2,250	$	1,000	$	750	$	650	$	650	$	700
Reduction to backstop issuances
	Notes payable and commercial paper^(b)		(450)		―		(300)		―		―		―		(150)
	Outstanding letters of credit		(62)		(55)		(4)		(2)		(1)		―		―
	Tax-exempt bonds		(240)		―		(75)		―		―		(84)		(81)
Available capacity		$	5,248	$	2,195	$	621	$	748	$	649	$	566	$	469

(a)	Represents the sublimit of each borrower at December 31, 2013. The Duke Energy Ohio sublimit includes $100 million for Duke Energy Kentucky.
(b)	Duke Energy issued $450 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas and Duke Energy Indiana. The balances are classified as long-term borrowings within Long-term Debt in Duke Energy Carolinas' and Duke Energy Indiana's Condensed Consolidated Balance Sheets.


(in millions)	Maturity Date	Interest Rate		December 31, 2013
Unsecured Debt
Duke Energy (Parent)	February 2014	6.300	%	$	750
Progress Energy (Parent)	March 2014	6.050	%		300
Duke Energy (Parent)	September 2014	3.950	%		500
Tax-exempt Bonds
Duke Energy Progress	January 2014	0.105	%		167
Other					387
Current maturities of long-term debt				$	2,104

Year Ended December 31, 2013

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Progress

Duke Energy Ohio

Duke Energy Indiana

Duke Energy

Unsecured Debt

January 2013^(a)

January 2073

5.125

500

―

500

June 2013^(b)

June 2018

2.100

500

―

500

August 2013^(c)(d)

August 2023

11.000

―

220

October 2013^(e)

October 2023

3.950

400

―

400

Secured Debt

February 2013^(f)(g)

December 2030

2.043

―

203

February 2013^(f)

June 2037

4.740

―

220

April 2013^(h)

April 2026

5.456

―

230

December 2013⁽ⁱ⁾

December 2016

0.852

―

300

―

300

First Mortgage Bonds

March 2013^(j)

March 2043

4.100

―

500

―

500

July 2013^(k)

July 2043

4.900

―

350

July 2013^(k)(l)

July 2016

0.619

―

150

September 2013^(m)

September 2023

3.800

―

300

―

300

September 2013^(m)(n)

March 2015

0.400

―

150

―

150

Total Issuances

1,400

800

450

500

4,023

(a)

Callable after January 2018 at par. Proceeds were used to redeem the $300 million 7.10% Cumulative Quarterly Income Preferred Securities (QUIPS) and to repay a portion of outstanding commercial paper and for general corporate purposes. See Note 17 for additional information about the QUIPS.

(b)

Proceeds were used to repay $250 million of current maturities and for general corporate purposes, including the repayment of outstanding commercial paper.

(c)

Proceeds were used to repay $200 million of current maturities. The maturity date included above applies to half of the instrument. The remaining half matures in August 2018.

(d)

The debt is floating rate based on a consumer price index and an overnight funds rate in Brazil. The debt is denominated in Brazilian Real.

(e)

Proceeds were used to repay commercial paper as well as for general corporate purposes.

(f)

Represents the conversion of construction loans related to a renewable energy project issued in December 2012 to term loans. No cash proceeds were received in conjunction with the conversion. The term loans have varying maturity dates. The maturity date presented represents the latest date for all components of the respective loans.

(g)

The debt is floating rate. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 95 percent of the loans.

(h)

Represents the conversion of a $190 million bridge loan issued in conjunction with the acquisition of Ibener in December 2012. Duke Energy received incremental proceeds of $40 million upon conversion of the bridge loan. The debt is floating rate and is denominated in U.S. dollars. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 75 percent of the loan.

(i)

Relates to the securitization of accounts receivable at a subsidiary of Duke Energy Progress; the proceeds were used to repay short-term debt. See Note 17 for further details.

(j)

Proceeds were used to repay notes payable to affiliated companies as well as for general corporate purposes.

(k)

Proceeds were used to repay $400 million of current maturities.

(l)

The debt is floating rate based on 3-month London Interbank Offered Rate (LIBOR) and a fixed credit spread of 35 basis points.

(m)

Proceeds were used for general corporate purposes including the repayment of short-term notes payable, a portion of which was incurred to fund the retirement of $250 million of first mortgage bonds that matured in the first half of 2013.

(n)

The debt is floating rate based on 3-month LIBOR plus a fixed spread of 14 basis points.

Year Ended December 31, 2012

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Carolinas

Progress Energy (Parent)

Duke Energy Progress

Duke Energy Florida

Duke Energy Indiana

Duke Energy

Unsecured Debt

March 2012^(a)

April 2022

3.15

―

450

―

450

August 2012^(b)

August 2017

1.63

700

―

700

August 2012^(b)

August 2022

3.05

500

―

500

Secured Debt

April 2012^(c)

September 2024

2.64

330

―

330

December 2012^(d)

March 2013

2.77

203

―

203

December 2012^(d)

March 2013

4.74

220

―

220

December 2012^(e)

June 2013

1.01

190

―

190

December 2012^(e)

December 2025

1.56

200

―

200

First Mortgage Bonds

March 2012^(f)

March 2042

4.20

―

250

May 2012^(g)

May 2022

2.80

―

500

―

500

May 2012^(g)

May 2042

4.10

―

500

―

500

September 2012^(h)

September 2042

4.00

―

650

―

650

November 2012⁽ⁱ⁾

November 2015

0.65

―

250

―

250

November 2012⁽ⁱ⁾

November 2042

3.85

―

400

―

400

Total Issuances

2,343

650

450

1,000

650

250

5,343

(a)

Proceeds were used to repay current maturities of $450 million.

(b)

Proceeds were used to repay current maturities of $500 million, as well as for general corporate purposes, including the repayment of commercial paper.

(c)

Proceeds were used to reimburse construction costs for DS Cornerstone, LLC joint venture wind projects. Debt was subsequently deconsolidated upon execution of a joint venture. See Note 17 for further details.

(d)

Proceeds 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 were collateralized with cash deposits equal to 101 percent of the loan amounts. See Note 2 for further details.

(f)

Proceeds were used to repay a portion of outstanding short-term debt.

(g)

Proceeds were used to repay current maturities of $500 million, a portion of outstanding commercial paper and notes payable to affiliated companies.

(h)

Proceeds were used to repay current maturities of $420 million, as well as for general corporate purposes, including the funding of capital expenditures.

(i)

Proceeds will be used to repay current maturities of $425 million, as well as for general corporate purposes.

6. DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize outstanding debt.


		December 31, 2013
(in millions)		Weighted Average Interest Rate		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Unsecured debt, maturing 2014 - 2073		5.18	%	$	13,550	$	1,157	$	4,150	$	―	$	150	$	805	$	744
Secured debt, maturing 2014 - 2037		2.69	%		2,559		400		305		305		―		―		―
First mortgage bonds, maturing 2015 - 2043^(a)		4.90	%		17,831		6,161		8,450		4,125		4,325		900		2,319
Capital leases, maturing 2014 - 2051^(b)		5.23	%		1,516		30		327		148		179		27		20
Other debt, maturing 2027		4.77	%		8		―		―		―		―		8		―
Tax-exempt bonds, maturing 2014 - 2041^(c)		1.28	%		2,356		395		910		669		241		479		573
Notes payable and commercial paper^(d)		1.02	%		1,289		―		―		―		―		―		―
Money pool/intercompany borrowings					―		300		1,213		462		181		43		150
Fair value hedge carrying value adjustment					9		9		―		―		―		―		―
Unamortized debt discount and premium, net^(e)					1,977		(16)		(27)		(12)		(9)		(31)		(10)
Total debt					41,095		8,436		15,328		5,697		5,067		2,231		3,796
Short-term notes payable and commercial paper					(839)		―		―		―		―		―		―
Short-term money pool borrowings					―		―		(1,213)		(462)		(181)		(43)		―
Current maturities of long-term debt					(2,104)		(47)		(485)		(174)		(11)		(47)		(5)
Total long-term debt^(f)				$	38,152	$	8,389	$	13,630	$	5,061	$	4,875	$	2,141	$	3,791

(a)	Substantially all electric utility fixed assets are mortgaged under mortgage bond indentures.
(b)	Duke Energy includes $144 million and $838 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as leases in their financial statements because of grandfathering provisions in GAAP.
(c)	Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit.
(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 49 days.
(e)	Duke Energy includes $2,067 million in purchase accounting adjustments related to the merger with Progress Energy. See Note 2 for additional information.
(f)	Includes $1,966 million for Duke Energy, $400 million for Duke Energy Carolinas and $300 million for Progress Energy and Duke Energy Progress related to consolidated VIEs.


		December 31, 2012
(in millions)		Weighted Average Interest Rate		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke 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
Notes payable and commercial paper^(d)		0.83	%		1,507		―		―		―		―		―		―
Money pool/intercompany 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					40,518		8,741		14,883		5,204		5,320		2,242		3,783
Short-term notes payable and commercial paper					(1,057)		―		―		―		―		―		―
Short-term money pool borrowings					―		―		(455)		(364)		―		(245)		(81)
Current maturities of long-term debt					(3,110)		(406)		(843)		(407)		(435)		(261)		(405)
Total long-term debt^(f)				$	36,351	$	8,335	$	13,585	$	4,433	$	4,885	$	1,736	$	3,297

(a)	Substantially all electric utility fixed assets are mortgaged under mortgage bond indentures.
(b)	Duke Energy includes $158 million and $907 million of capital lease purchase accounting adjustments for Duke Energy Progress and Duke 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)	Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit.
(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)	Duke Energy includes $2,311 million in purchase accounting adjustments related to the merger with Progress Energy. See Note 2 for additional information.
(f)	Includes $852 million for Duke Energy and $300 million for Duke Energy Carolinas related to consolidated VIEs.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of long-term debt on the respective Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations primarily with cash on hand and proceeds from additional borrowings.


(in millions)	Maturity Date	Interest Rate		December 31, 2013
Unsecured Debt
Duke Energy (Parent)	February 2014	6.300	%	$	750
Progress Energy (Parent)	March 2014	6.050	%		300
Duke Energy (Parent)	September 2014	3.950	%		500
Tax-exempt Bonds
Duke Energy Progress	January 2014	0.105	%		167
Other					387
Current maturities of long-term debt				$	2,104

Maturities and Call Options

The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable and commercial paper and money pool borrowings for the Subsidiary Registrants.


		December 31, 2013
(in millions)		Duke Energy^(a)		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
2014		$	2,104	$	47	$	485	$	174	$	11	$	47	$	5
2015			2,634		507		1,264		702		562		157		5
2016			2,975		756		614		302		12		56		480
2017			1,342		116		265		3		262		2		3
2018			3,235		1,505		603		59		544		3		153
Thereafter			25,899		5,505		10,884		3,995		3,495		1,923		3,150
Total long-term debt, including current maturities		$	38,189	$	8,436	$	14,115	$	5,235	$	4,886	$	2,188	$	3,796

(a)	Excludes $2,067 million in purchase accounting adjustments related to the merger with Progress Energy. See Note 2 for additional information.

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

Short-term Obligations Classified as Long-term Debt

Tax-exempt bonds that may be put to the Company at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-term debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long term due to Duke Energy's intent and ability to utilize such borrowings as long-term financing. As Duke Energy's master credit facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.


	December 31, 2013
(in millions)	Duke Energy		Duke Energy Carolinas		Duke Energy Ohio		Duke Energy Indiana
Tax-exempt bonds	$	471	$	75	$	111	$	285
Notes payable and commercial paper		450		300		―		150
Secured debt^(a)		200		―		―		―
Total	$	1,121	$	375	$	111	$	435


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

(a)	Instrument has a term of less than one year with the right to extend the maturity date for additional one-year periods with a final maturity date no later than December 2026.
(a)	Duke Energy Receivables Finance Company, LLC (DERF) is a wholly owned limited liability company of Duke Energy Carolinas. See Note 17 for further information.

Summary of SIGNIFICANT Debt ISSUANCES

The following tables summarize significant debt issuances (in millions).

Year Ended December 31, 2013

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Progress

Duke Energy Ohio

Duke Energy Indiana

Duke Energy

Unsecured Debt

January 2013^(a)

January 2073

5.125

500

―

500

June 2013^(b)

June 2018

2.100

500

―

500

August 2013^(c)(d)

August 2023

11.000

―

220

October 2013^(e)

October 2023

3.950

400

―

400

Secured Debt

February 2013^(f)(g)

December 2030

2.043

―

203

February 2013^(f)

June 2037

4.740

―

220

April 2013^(h)

April 2026

5.456

―

230

December 2013⁽ⁱ⁾

December 2016

0.852

―

300

―

300

First Mortgage Bonds

March 2013^(j)

March 2043

4.100

―

500

―

500

July 2013^(k)

July 2043

4.900

―

350

July 2013^(k)(l)

July 2016

0.619

―

150

September 2013^(m)

September 2023

3.800

―

300

―

300

September 2013^(m)(n)

March 2015

0.400

―

150

―

150

Total Issuances

1,400

800

450

500

4,023

(a)

(b)

Proceeds were used to repay $250 million of current maturities and for general corporate purposes, including the repayment of outstanding commercial paper.

(c)

Proceeds were used to repay $200 million of current maturities. The maturity date included above applies to half of the instrument. The remaining half matures in August 2018.

(d)

The debt is floating rate based on a consumer price index and an overnight funds rate in Brazil. The debt is denominated in Brazilian Real.

(e)

Proceeds were used to repay commercial paper as well as for general corporate purposes.

(f)

(g)

The debt is floating rate. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 95 percent of the loans.

(h)

(i)

Relates to the securitization of accounts receivable at a subsidiary of Duke Energy Progress; the proceeds were used to repay short-term debt. See Note 17 for further details.

(j)

Proceeds were used to repay notes payable to affiliated companies as well as for general corporate purposes.

(k)

Proceeds were used to repay $400 million of current maturities.

(l)

The debt is floating rate based on 3-month London Interbank Offered Rate (LIBOR) and a fixed credit spread of 35 basis points.

(m)

(n)

The debt is floating rate based on 3-month LIBOR plus a fixed spread of 14 basis points.

Year Ended December 31, 2012

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Carolinas

Progress Energy (Parent)

Duke Energy Progress

Duke Energy Florida

Duke Energy Indiana

Duke Energy

Unsecured Debt

March 2012^(a)

April 2022

3.15

―

450

―

450

August 2012^(b)

August 2017

1.63

700

―

700

August 2012^(b)

August 2022

3.05

500

―

500

Secured Debt

April 2012^(c)

September 2024

2.64

330

―

330

December 2012^(d)

March 2013

2.77

203

―

203

December 2012^(d)

March 2013

4.74

220

―

220

December 2012^(e)

June 2013

1.01

190

―

190

December 2012^(e)

December 2025

1.56

200

―

200

First Mortgage Bonds

March 2012^(f)

March 2042

4.20

―

250

May 2012^(g)

May 2022

2.80

―

500

―

500

May 2012^(g)

May 2042

4.10

―

500

―

500

September 2012^(h)

September 2042

4.00

―

650

―

650

November 2012⁽ⁱ⁾

November 2015

0.65

―

250

―

250

November 2012⁽ⁱ⁾

November 2042

3.85

―

400

―

400

Total Issuances

2,343

650

450

1,000

650

250

5,343

(a)

Proceeds were used to repay current maturities of $450 million.

(b)

Proceeds were used to repay current maturities of $500 million, as well as for general corporate purposes, including the repayment of commercial paper.

(c)

(d)

Proceeds 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 were collateralized with cash deposits equal to 101 percent of the loan amounts. See Note 2 for further details.

(f)

Proceeds were used to repay a portion of outstanding short-term debt.

(g)

Proceeds were used to repay current maturities of $500 million, a portion of outstanding commercial paper and notes payable to affiliated companies.

(h)

Proceeds were used to repay current maturities of $420 million, as well as for general corporate purposes, including the funding of capital expenditures.

(i)

Proceeds will be used to repay current maturities of $425 million, as well as for general corporate purposes.

Available Credit Facilities

Duke Energy has a master credit facility with a capacity of $6 billion through December 2018. The Subsidiary Registrants, excluding Progress Energy each have borrowing capacity under the master credit facility up to specified sublimits for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the master credit facility has been reduced to backstop the issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. The table below includes the current borrowing sublimits and available capacity under the master credit facility.


			December 31, 2013
(in millions)			Duke Energy		Duke Energy (Parent)		Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Facility size^(a)		$	6,000	$	2,250	$	1,000	$	750	$	650	$	650	$	700
Reduction to backstop issuances
	Notes payable and commercial paper^(b)		(450)		―		(300)		―		―		―		(150)
	Outstanding letters of credit		(62)		(55)		(4)		(2)		(1)		―		―
	Tax-exempt bonds		(240)		―		(75)		―		―		(84)		(81)
Available capacity		$	5,248	$	2,195	$	621	$	748	$	649	$	566	$	469

(a)	Represents the sublimit of each borrower at December 31, 2013. The Duke Energy Ohio sublimit includes $100 million for Duke Energy Kentucky.
(b)	Duke Energy issued $450 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas and Duke Energy Indiana. The balances are classified as long-term borrowings within Long-term Debt in Duke Energy Carolinas' and Duke Energy Indiana's Condensed Consolidated Balance Sheets.

Other Debt Matters

In September 2013, Duke Energy filed a registration statement (Form S-3) with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, 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.

Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $1.5 billion 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, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor's option at any time. The balance as of December 31, 2013 and 2012 was $836 million and $395 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy's Consolidated Balance Sheets.

At December 31, 2013 and 2012, $811 million and $734 million, respectively, of debt issued by Duke Energy Carolinas was guaranteed by Duke Energy.

Money Pool

The Subsidiary Registrants, excluding Progress Energy 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 in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent), 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.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the respective Subsidiary Registrants' Consolidated Balance Sheets. 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.

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 not exceed 65 percent 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, 2013, 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 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 2013 and 2012, Duke Energy and Duke Energy Progress had loans outstanding against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were $571 million, including $48 million at Duke Energy Progress and $496 million as of December 31, 2013 and 2012, 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.

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