The Duke Energy Registrants use commodity and interest rate contracts to manage commodity price and interest rate risks. The primary use of energy commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Interest rate swaps are used to manage interest rate risk associated with borrowings.

All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting agreement is offset against the collateralized derivatives on the balance sheet.

Changes in the fair value of derivative agreements that either do not qualify for or have not been designated as hedges are reflected in current earnings or as regulatory assets or liabilities.

The Duke Energy Registrants are exposed to the impact of changes in the future prices of electricity, coal, and natural gas. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets, and delivery locations.

At December 31, 2013, there were no open commodity derivative instruments designated as hedges.

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 2018.

Duke Energy Carolinas and Duke Energy Progress have entered into firm power sale agreements, which are accounted for as derivatives, as part of the Interim FERC Mitigation in connection with Duke Energy's merger with Progress Energy. See Note 2 for further information. Duke Energy Carolinas' undesignated contracts are primarily associated with forward sales and purchases of electricity. Duke Energy Progress' and Duke Energy Florida's undesignated contracts are primarily associated with forward purchases of natural gas. Duke Energy Ohio's undesignated contracts are primarily associated with forward sales and purchases of electricity, coal, and natural gas. Duke Energy Indiana's undesignated contracts are primarily associated with forward purchases and sales of electricity and financial transmission rights.

The tables show information relating to the volume of the outstanding commodity derivatives. Amounts disclosed represent the notional volumes of commodity contracts excluding NPNS. 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.


		December 31, 2013
		Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity (Gigawatt-hours)^(a)		71,466	1,205	925	925	―	69,362	203
Natural gas (millions of decatherms)		636	―	363	141	222	274	―

		December 31, 2012
		Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity (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 include intercompany positions that eliminate at Duke Energy.

The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements, and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward starting interest rate swaps may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt. Pretax gains or losses recognized from inception to termination of the hedges are 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.

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


		December 31, 2013				December 31, 2012
(in millions)		Duke Energy		Duke Energy Ohio		Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Ohio		Duke Energy Indiana
Cash flow hedges^(a)		$	798	$	―	$	1,047	$	―	$	―	$	―	$	―
Undesignated contracts			34		27		290		50		50		27		200
Fair value hedges			―		―		250		―		―		250		―
	Total notional amount	$	832	$	27	$	1,587	$	50	$	50	$	277	$	200

(a)	Duke Energy includes amounts related to non-recourse variable rate long-term debt of VIEs of $584 million at December 31, 2013 and $620 million at December 31, 2012.

The following table shows the fair value of derivatives and the line items in the Consolidated Balance Sheets where they are reported. Although derivatives subject to master netting arrangements are netted on the Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.



	December 31,
	2013				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
Interest rate contracts
Current assets: other		―		―		2		―
Investments and other assets: other		27		―		7		―
Current liabilities: Other		―		18		―		81
Deferred credits and other liabilities: other		―		4		―		35
Total Derivatives Designated as Hedging Instruments		27		23		9		119
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other		201		158		41		2
Investments and other assets: other		215		131		106		50
Current liabilities: other		13		153		106		407
Deferred credits and other liabilities: other		5		166		2		255
Interest rate contracts
Current liabilities: other		―		1		―		76
Deferred credits and other liabilities: other		―		4		―		8
Total Derivatives Not Designated as Hedging Instruments		434		613		255		798
Total Derivatives	$	461	$	636	$	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 financial position. The amounts shown were calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	214	$	233	$	322	$	299
Gross amounts offset			(179)		(138)		(192)		(155)
Net amount subject to master netting			35		95		130		144
Amounts not subject to master netting			―		14		4		11
Net amounts recognized on the Consolidated Balance Sheet		$	35	$	109	$	134	$	155

		December 31, 2012
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
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 Consolidated Balance Sheet		$	35	$	61	$	417	$	259

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations where such gains and losses are included when reclassified from AOCI.

		Years Ended December 31,
(in millions)		2013		2012		2011
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts^(a)		$	79	$	(23)	$	(88)
Commodity contracts			1		1		―
Total Pretax Gains (Losses) Recorded in AOCI		$	80	$	(22)	$	(88)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense		$	(2)	$	2	$	(5)
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings		$	(2)	$	2	$	(5)

(a)	Reclassified to earnings as interest expense over the term of the related debt.

There was no hedge ineffectiveness during the years ended December 31, 2013, 2012 and 2011, and no gains or losses were excluded from the assessment of hedge effectiveness during the same periods.

At December 31, 2013, and December 31, 2012, $59 million and $151 million, respectively, of pretax deferred net losses interest rate cash flow hedges were included in AOCI. A $4 million pretax gain is expected to be recognized in earnings during the next 12 months as interest expense.

The following table shows the gains and losses during the year recognized on undesignated derivatives and the line items on the Consolidated Statements of Operations or the Consolidated Balance Sheets where the pretax gains and losses were reported.


		Years Ended December 31,
(in millions)		2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric		$	11	$	(23)	$	―
Revenue: Nonregulated electric, natural gas and other			43		38		(59)
Other income and expenses			―		(2)		―
Fuel used in electric generation and purchased power-regulated			(200)		(194)		―
Fuel used in electric generation and purchased power - nonregulated			(100)		2		(1)
Interest rate contracts
Interest expense			(18)		(8)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	(264)	$	(187)	$	(60)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets		$	10	$	(2)	$	(1)
Regulatory liabilities			15		36		17
Interest rate contracts^(b)
Regulatory assets			55		10		(165)
Regulatory liabilities			―		―		(60)
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	80	$	44	$	(209)

(a)	Reclassified to earnings to match recovery through the fuel clause.
(b)	Reclassified to earnings as interest expense over the term of the related debt.


	December 31,
	2013				2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current liabilities: other		―		1		―		6
Deferred credits and other liabilities: other		―		1		―		6
Total Derivatives Not Designated as Hedging Instruments		―		2		―		12
Total Derivatives	$	―	$	2	$	―	$	12


		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Amounts not subject to master netting		$	―	$	―	$	1	$	1
Net amounts recognized on the Consolidated Balance Sheet		$	―	$	―	$	1	$	1

		December 31, 2012
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Amounts not subject to master netting		$	―	$	―	$	6	$	6
Net amounts recognized on the Consolidated Balance Sheet		$	―	$	―	$	6	$	6

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations and Comprehensive Income where such gains and losses are included when reclassified from AOCI.

Losses on cash flow hedges reclassified at Duke Energy Carolinas during the year ended December 31, 2013 and 2012 were not material.

	Years Ended December 31,
(in millions)	2013		2012		2011
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	$	(3)	$	(3)	$	(5)
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings	$	(3)	$	(3)	$	(5)

For the years ended December 31, 2013, Duke Energy Carolinas had $23 million of pretax deferred net losses on settled interest rate cash flow hedges remaining in AOCI. A $5 million pretax gain is expected to be recognized in earnings during the next 12 months as interest expense.


	Years Ended December 31,
(in millions)	2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	(12)	$	(12)	$	―
Total Pretax (Losses) Gains Recognized in Earnings	$	(12)	$	(12)	$	―
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Interest rate contracts
Regulatory assets	$	―	$	―	$	(94)
Regulatory liabilities		―		―		(60)
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	―	$	―	$	(154)


	December 31,
	2013				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		―		4		―		1
Total Derivatives Designated as Hedging Instruments		―		5		―		3
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other		3		2		3		―
Investments and other assets: other		2		1		8		―
Current liabilities: other		11		105		―		231
Deferred credits and other liabilities: other		4		91		―		195
Interest rate contracts
Current liabilities: other		―		―		―		11
Total Derivatives Not Designated as Hedging Instruments		20		199		11		437
Total Derivatives	$	20	$	204	$	11	$	440


		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	15	$	5	$	107	$	93
Gross amounts offset			(13)		(4)		(17)		(10)
Net amount subject to master netting			2		1		90		83
Amounts not subject to master netting			―		―		―		4
Net amounts recognized on the Consolidated Balance Sheet		$	2	$	1	$	90	$	87

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

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations and Comprehensive Income or Consolidated Balance Sheet where such gains and losses are included when reclassified from AOCI.

		Years Ended December 31,
(in millions)		2013		2012		2011
Pretax Gains (Losses) Recorded in AOCI
Commodity contracts		$	1	$	1	$	(3)
Interest rate contracts^(a)			―		(11)		(141)
Total Pretax Gains (Losses) Recorded in AOCI		$	1	$	(10)	$	(144)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense		$	―	$	(14)	$	(13)
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings		$	―	$	(14)	$	(13)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets or Liabilities^(b)
Interest rate contracts
Regulatory assets		$	―	$	(159)	$	―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	―	$	(159)	$	―

(a)	Reclassified to earnings as interest expense over the term of the related debt.
(b)	Effective with the merger, Progress Energy no longer designates interest rate derivatives for regulated operations as cash flow hedges. As a result, the pretax losses on derivatives as of the date of the merger were reclassified from AOCI to Regulatory assets.

There was no hedge ineffectiveness during the years ended December 31, 2013, 2012, and 2011, and no gains or losses have been excluded from the assessment of hedge effectiveness during the same periods.

At December 31, 2013, and 2012, $61 million and $65 million, respectively of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI. A $5 million pretax loss is expected to be recognized in earnings during the next 12 months as interest expense.

The following table shows the gains and losses during the year recognized on undesignated derivatives and the line items on the Consolidated Statements of Operations and Comprehensive Income or the Consolidated Balance Sheets where the pretax gains and losses were reported.


		Years Ended December 31,
(in millions)		2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues		$	11	$	(11)	$	1
Fuel used in electric generation and purchased power			(200)		(454)		(297)
Other income and expenses, net			―		7		(59)
Interest rate contracts
Interest expense			(17)		(8)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	(206)	$	(466)	$	(355)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets		$	10	$	(171)	$	(502)
Interest rate contracts^(b)
Regulatory assets			18		6		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	28	$	(165)	$	(502)

(a)	Reclassified to earnings to match recovery through the fuel clause.
(b)	Reclassified to earnings as interest expense over the term of the related debt.


		December 31,
		2013				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
Total Derivatives Designated as Hedging Instruments			―		1		―		2
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current assets: other			―		―		1		―
Investments and other assets: other			2		1		1		―
Current liabilities: other			2		40		―		85
Deferred credits and other liabilities: other			2		29		―		68
Interest rate contracts
Current liabilities: other			―		―		―		11
Total Derivatives Not Designated as Hedging Instruments			6		70		2		164
Total Derivatives		$	6	$	71	$	2	$	166

(a)	Substantially all of these contracts are recorded as regulatory assets or liabilities.


		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	3	$	3	$	41	$	30
Gross amounts offset			(3)		(3)		(3)		(3)
Net amount subject to master netting			―		―		38		27
Net amounts recognized on the Consolidated Balance Sheet		$	―	$	―	$	38	$	27

		December 31, 2012
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	1	$	1	$	97	$	69
Gross amounts offset			―		―		(2)		(7)
Net amounts subject to master netting			1		1		95		62
Net amounts recognized on the Consolidated Balance Sheet		$	1	$	1	$	95	$	62

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations and Comprehensive Income or Consolidated Balance Sheets in which such gains and losses are included when reclassified from AOCI.

		Years Ended December 31,
(in millions)		2013		2012		2011
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts^(a)		$	―	$	(7)	$	(70)
Total Pretax Gains (Losses) Recorded in AOCI		$	―	$	(7)	$	(70)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense		$	―	$	(5)	$	(7)
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings		$	―	$	(5)	$	(7)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets or Liabilities^(b)
Interest rate contracts
Regulatory assets		$	―	$	(117)	$	―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	―	$	(117)	$	―

(a)	Reclassified to earnings as interest expense over the term of the related debt.
(b)	Effective with the merger, Duke Energy Progress no longer designates interest rate derivatives for regulated operations as cash flow hedges. As a result, the pretax losses on derivatives as of the date of the merger were reclassified from AOCI to Regulatory assets.

There was no hedge ineffectiveness during the years ended December 31, 2013, 2012 and 2011, and no gains or losses have been excluded from the assessment of hedge effectiveness during the same periods.


		Years Ended December 31,
(in millions)		2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues		$	11	$	(11)	$	1
Fuel used in electric generation and purchased power			(71)		(115)		(60)
Interest rate contracts
Interest expense			(13)		(6)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	(73)	$	(132)	$	(59)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets		$	(6)	$	(55)	$	(140)
Interest rate contracts^(b)
Regulatory assets			13		6		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	7	$	(49)	$	(140)

(a)	Reclassified to earnings to match recovery through the fuel clause.
(b)	Reclassified to earnings as interest expense over the term of the related debt.


		December 31,
		2013				2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other		$	―	$	―	$	―	$	1
Total Derivatives Designated as Hedging Instruments			―		―		―		1
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current assets: other			3		2		2		―
Investments and other assets: other			―		―		7		―
Current liabilities: other			9		64		―		146
Deferred credits and other liabilities: other			2		63		―		123
Total Derivatives Not Designated as Hedging Instruments			14		129		9		269
Total Derivatives		$	14	$	129	$	9	$	270

(a)	Substantially all of these contracts are recorded as regulatory assets or liabilities.


		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	12	$	2	$	66	$	63
Gross amounts offset			(10)		(2)		(15)		(7)
Net amount subject to master netting			2		―		51		56
Net amounts recognized on the Consolidated Balance Sheet		$	2	$	―	$	51	$	56

		December 31, 2012
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	2	$	7	$	147	$	123
Gross amounts offset			―		―		(20)		(29)
Net amounts subject to master netting			2		7		127		94
Net amounts recognized on the Consolidated Balance Sheet		$	2	$	7	$	127	$	94

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations and Comprehensive Income or Consolidated Balance Sheets in which such gains and losses are included when reclassified from AOCI.

		Years Ended December 31,
(in millions)		2013		2012		2011
Pretax Gains (Losses) Recorded in AOCI
Commodity contracts		$	1	$	1	$	(3)
Interest rate contracts^(a)			―		(2)		(35)
Total Pretax Gains (Losses) Recorded in AOCI		$	1	$	(1)	$	(38)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense		$	―	$	(2)	$	(1)
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings		$	―	$	(2)	$	(1)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets^(b)
Interest rate contracts
Regulatory assets		$	―	$	(42)	$	―
Total Pretax Gains (Losses) Reclassified from AOCI to Regulatory Assets		$	―	$	(42)	$	―

(a)	Reclassified to earnings as interest expense over the term of the related debt.
(b)	Effective with the merger, Duke Energy Florida no longer designates interest rate derivatives for regulated operations as cash flow hedges. As a result, the pretax losses on derivatives as of the date of the merger were reclassified from AOCI to Regulatory assets.

There was no hedge ineffectiveness during the years ended December 31,2013, 2012 and 2011, and no gains or losses have been excluded from the assessment of hedge effectiveness during the same periods.


		Years Ended December 31,
(in millions)		2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power		$	(129)	$	(339)	$	(237)
Interest rate contracts
Interest expense			(5)		(2)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	(134)	$	(341)	$	(237)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets		$	16	$	(116)	$	(362)
Interest rate contracts
Regulatory assets			5		―		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	21	$	(116)	$	(362)

(a)	Reclassified to earnings to match recovery through the fuel clause.


	December 31,
	2013				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		186		163		31		4
Investments and other assets: other		202		130		81		51
Current liabilities: other		1		36		106		132
Deferred credits and other liabilities: other		2		56		―		4
Interest rate contracts
Current liabilities: other		―		1		―		1
Deferred credits and other liabilities: other		―		4		―		7
Total Derivatives Not Designated as Hedging Instruments		391		390		218		199
Total Derivatives	$	391	$	390	$	220	$	199



		December 31, 2013
		Derivative Assets				Derivative Liabilities
(in millions)		Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized		$	186	$	205	$	199	$	186
Gross amounts offset			(165)		(132)		(173)		(143)
Net amount subject to master netting			21		73		26		43
Amounts not subject to master netting			―		―		1		4
Net amounts recognized on the Consolidated Balance Sheet		$	21	$	73	$	27	$	47

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

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

There were no gains or losses on cash flow hedges recorded or reclassified at Duke Energy Ohio for the years ended December 31, 2013 and 2012, respectively. There was an immaterial amount of losses on cash flow hedges reclassified at Duke Energy Ohio for the year ended December 31, 2011.


	Years Ended December 31,
(in millions)	2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Nonregulated electric, natural gas and other	$	44	$	76	$	(26)
Fuel used in electric generation and purchased power - nonregulated		(100)		2		(1)
Interest rate contracts
Interest expense		(1)		(1)		(1)
Total Pretax (Losses) Gains Recognized in Earnings	$	(57)	$	77	$	(28)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	―	$	2	$	1
Regulatory liabilities		―		(1)		―
Interest rate contracts
Regulatory assets		4		―		(4)
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	4	$	1	$	(3)



	December 31,
	2013				2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other	$	12	$	―	$	10	$	―
Interest rate contracts
Current liabilities: other		―		―		―		63
Total Derivatives Not Designated as Hedging Instruments		12		―		10		63
Total Derivatives	$	12	$	―	$	10	$	63

December 31, 2013

Derivative Assets

Derivative Liabilities

(in millions)

Current^(a)

Non-Current^(b)

Current^(c)

Non-Current^(d)

Gross amounts recognized

―

Gross amounts offset

(1)

―

Net amount subject to master netting

―

Net amounts recognized on the Consolidated Balance Sheet

―

December 31, 2012

Derivative Assets

Derivative Liabilities

(in millions)

Current^(a)

Non-Current^(b)

Current^(c)

Non-Current^(d)

Amounts not subject to master netting

―

Net amounts recognized on the Consolidated Balance Sheet

―

(a)

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

(b)

Included in Other within Investments and Other Assets on the Consolidated Balance Sheet.

(c)

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

(d)

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

The following table shows the gains and losses during the year recognized on cash flow hedges and the line items on the Consolidated Statements of Operations and Comprehensive Income where such gains and losses are included when reclassified from AOCI.

	Years Ended December 31,
(in millions)	2013		2012		2011
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	$	3	$	3	$	2
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings	$	3	$	3	$	2

The following table shows the gains and losses during the year recognized on undesignated derivatives and the line items on the Consolidated Balance Sheets where the pretax gains and losses were reported.


		Years Ended December 31,
(in millions)		2013		2012		2011
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue, regulated electric		$	1	$	―	$	―
Total Pretax (Losses) Gains Recognized in Earnings		$	1	$	―	$	―
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets		$	―	$	2	$	(2)
Regulatory liabilities			16		35		17
Interest rate contracts^(b)
Regulatory assets			34		4		(67)
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	50	$	41	$	(52)

(a)	Reclassified to earnings to match recovery through the fuel clause.
(b)	Reclassified to earnings as interest expense over the term of the related debt.

Certain derivative contracts contain contingent credit features. These features may include (i) material adverse change clauses or payment acceleration clauses that could result in immediate payments, (ii) the posting of letters of credit or 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.


	December 31, 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	$	525	$	168	$	60	$	108	$	355
Fair value of collateral already posted		135		10		―		10		125
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered		205		158		60		98		47

	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		230		227		99		128		2

The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative must be executed with the same counterparty under the same master netting agreement. Amounts disclosed 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.


	December 31,
	2013				2012
(in millions)	Receivables		Payables		Receivables		Payables
Duke Energy
Amounts offset against net derivative positions	$	30	$	―	$	73	$	―
Amounts not offset against net derivative positions		122		―		93		―
Progress Energy
Amounts offset against net derivative positions	$	10	$	―	$	58	$	―
Amounts not offset against net derivative positions		―		―		1		―
Duke Energy Progress
Amounts offset against net derivative positions	$	―	$	―	$	9	$	―
Amounts not offset against net derivative positions		―		―		―		―
Duke Energy Florida
Amounts offset against net derivative positions	$	10	$	―	$	49	$	―
Amounts not offset against net derivative positions		―		―		1		―
Duke Energy Ohio
Amounts offset against net derivative positions	$	19		―	$	15	$	―
Amounts not offset against net derivative positions		115	$	―		92		―
Duke Energy Indiana
Amounts offset against net derivative positions		―		1		―		―
Amounts not offset against net derivative positions	$	1	$	―	$	―	$	―