Business Segments

3 Months Ended

Mar. 31, 2014

Business Segments [Abstract]

Business Segments

3. BUSINESS SEGMENTS

Duke Energy evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income.

Operating segments are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance.

Products and services are sold between affiliate companies and reportable segments of Duke Energy at cost. Segment assets as presented in the tables that follow exclude all intercompany assets.

DUKE ENERGY

Duke Energy has the following reportable operating segments: Regulated Utilities, International Energy and Commercial Power.

Regulated Utilities conducts operations primarily through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana, and the regulated transmission and distribution operations of Duke Energy Ohio. These electric and gas operations are subject to the rules and regulations of the FERC, NCUC, PSCSC, FPSC, PUCO, IURC, and KPSC. Substantially all of Regulated Utilities' operations are regulated and, accordingly, these operations qualify for regulatory accounting treatment.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power, natural gas, and natural gas liquids outside the U.S. Its activities principally target power generation in Latin America. Additionally, International Energy owns a 25 percent interest in National Methanol Company (NMC), a large regional producer of Methyl tertiary butyl ether (MTBE) located in Saudi Arabia. The investment in NMC is accounted for under the equity method of accounting.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants as well as other contractual positions. Commercial Power's generation operations consist primarily of Duke Energy Ohio's coal-fired and gas-fired nonregulated generation assets located in the Midwest region of the U.S. and wind and solar generation located throughout the U.S. The asset portfolio has a diversified fuel mix with baseload and mid-merit coal-fired units as well as combined cycle and peaking natural gas-fired units. In addition, Commercial Power operates and develops transmission projects.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes unallocated corporate interest expense, certain unallocated corporate costs, Bison Insurance Company Limited (Bison), Duke Energy's wholly owned, captive insurance subsidiary, and contributions to the Duke Energy Foundation. On December 31, 2013, Duke Energy sold its interest in DukeNet Communications Holdings, LLC (DukeNet) to Time Warner Cable, Inc.

		Three Months Ended March 31, 2014
(in millions)		Regulated Utilities		International Energy		Commercial Power		Total Reportable Segments		Other		Eliminations		Consolidated
Unaffiliated revenues		$	5,795	$	382	$	442	$	6,619	$	5	$	―	$	6,624
Intersegment revenues			10		―		7		17		20		(37)		―
	Total revenues	$	5,805	$	382	$	449	$	6,636	$	25	$	(37)	$	6,624
Segment income (loss)(a)(b)		$	737	$	130	$	(879)	$	(12)	$	(82)	$	―	$	(94)
Add back noncontrolling interests component															4
Loss from discontinued operations, net of tax															(3)
Net loss														$	(93)
Segment assets(a)		$	100,097	$	5,064	$	5,666	$	110,827	$	2,789	$	176	$	113,792
(a)	Commercial Power includes the impairment charge related to the planned disposition of the Midwest Generation business. See Note 2 for additional information.
(b)	Other includes after-tax costs to achieve the Progress Energy merger.

		Three Months Ended March 31, 2013
(in millions)		Regulated Utilities		International Energy		Commercial Power		Total Reportable Segments		Other		Eliminations		Consolidated
Unaffiliated revenues		$	5,052	$	392	$	439	$	5,883	$	15	$	―	$	5,898
Intersegment revenues			8		―		13		21		20		(41)		―
	Total revenues	$	5,060	$	392	$	452	$	5,904	$	35	$	(41)	$	5,898
Segment income (loss) / Consolidated net income(a)		$	656	$	97	$	(42)	$	711	$	(77)	$	―	$	634
(a)	Other includes after-tax costs to achieve the Progress Energy merger.

DUKE ENERGY OHIO

Duke Energy Ohio has two reportable operating segments, Regulated Utilities and Commercial Power.

Regulated Utilities transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Kentucky. Regulated Utilities also transports and sells natural gas in portions of Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy. See Note 8 for additional information. All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

		Three Months Ended March 31, 2014
(in millions)		Regulated Utilities		Commercial Power		Total Reportable Segments		Other		Eliminations		Consolidated
Unaffiliated revenues(a)		$	562	$	201	$	763	$	―	$	―	$	763
Intersegment revenues			―		7		7		―		(7)		―
	Total revenues	$	562	$	208	$	770	$	―	$	(7)	$	763
Segment income (loss) / Consolidated net loss(a)(b)		$	64	$	(951)	$	(887)	$	(3)	$	―	$	(890)
Segment assets(b)		$	6,736	$	2,858	$	9,594	$	102	$	(161)	$	9,535
(a)	In May 2013, Duke Energy Ohio implemented revised customer rates approved by the PUCO. This increase impacts Regulated Utilities. See Note 4 for additional information about the revised customer rates.
(b)	Commercial Power includes the impairment charge related to the planned disposition of the Midwest Generation business. See Note 2 for additional information.
		Three Months Ended March 31, 2013
(in millions)		Regulated Utilities		Commercial Power		Total Reportable Segments		Other		Eliminations		Consolidated
Unaffiliated revenues		$	492	$	255	$	747	$	―	$	―	$	747
Intersegment revenues			―		11		11		―		(11)		―
	Total revenues	$	492	$	266	$	758	$	―	$	(11)	$	747
Segment income (loss) / Consolidated net loss		$	53	$	(67)	$	(14)	$	(7)	$	―	$	(21)

DUKE ENERGY CAROLINAS, PROGRESS ENERGY, DUKE ENERGY PROGRESS, DUKE ENERGY FLORIDA AND DUKE ENERGY INDIANA

The remaining Duke Energy Registrants each have one reportable operating segment, Regulated Utility, which generates, transmits, distributes and sells electricity. The remainder of each company's operations is classified as Other. While not considered a reportable segment for any of these companies, Other consists of certain unallocated corporate costs. Other for Progress Energy also includes interest expense on corporate debt instruments of $63 million and $101million for the three months endedMarch 31, 2014 and 2013, respectively.The following table summarizes the net loss for Other at each of these registrants.

	Three Months Ended March 31,
(in millions)	2014		2013
Duke Energy Carolinas	$	(21)	$	(19)
Progress Energy		(52)		(79)
Duke Energy Progress		(10)		(7)
Duke Energy Florida		(4)		(5)
Duke Energy Indiana		(3)		(4)

The respective Regulated Utility and Regulated Utilities operating segmentsinclude substantially all of Duke Energy Carolinas', Progress Energy's, Duke Energy Progress', Duke Energy Florida's and Duke Energy Indiana's assets at March 31, 2014 and 2013.