XML 86 R35.htm IDEA: XBRL DOCUMENT

Derivatives and Hedging (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Notional Amounts Of Derivative Instruments Related To Interest Rate Risk


		March 31, 2014				December 31, 2013
(in millions)		Duke Energy		Duke Energy Ohio		Duke Energy		Duke Energy Ohio
Cash flow hedges^(a)		$	798	$	―	$	798	$	―
Undesignated contracts			27		27		34		27
Total notional amount		$	825	$	27	$	832	$	27


(a)	Duke Energy includes amounts related to non-recourse variable rate long-term debt of VIEs of $584 million at March 31, 2014, and at December 31, 2013.

Underlying Notional Amounts for Commodity Derivative Instruments Accounted for at Fair Value

	March 31, 2014
	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Electricity (gigawatt-hours)^(a)		66,268		1,028		925		925		―		60,115		272
Natural gas (millions of decatherms)		604		―		352		128		224		254		―

	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		―

Location And Fair Value Amounts Of Derivatives Reflected In The Condensed Consolidated Balance Sheets


	March 31, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other	$	―	$	1	$	―	$	1
Interest rate contracts
Investments and Other Assets: Other		21		―		27		―
Current Liabilities: Other		―		16		―		18
Deferred Credits and Other Liabilities: Other		―		15		―		4
Total Derivatives Designated as Hedging Instruments		21		32		27		23
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other		27		7		201		158
Current Assets: Assets Held for Sale		9		1		―		―
Investments and Other Assets: Other		7		―		215		131
Investments and Other Assets: Assets Held for Sale		312		257		―		―
Current Liabilities: Other		22		116		13		153
Current Liabilities: Assets Held for Sale		398		463		―		―
Deferred Credits and Other Liabilities: Other		4		92		5		166
Deferred Credits and Other Liabilities: Assets Held for Sale		3		39		―		―
Interest rate contracts
Current Liabilities: Other		―		1		―		1
Deferred Credits and Other Liabilities: Other		―		4		―		4
Total Derivatives Not Designated as Hedging Instruments		782		980		434		613
Total Derivatives	$	803	$	1,012	$	461	$	636

Offsetting Assets and Liabilities

	March 31, 2014
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized	$	454	$	338	$	606	$	399
Gross amounts offset		(436)		(265)		(473)		(267)
Net amount subject to master netting		18		73		133		132
Amounts not subject to master netting		―		11		1		6
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	18	$	84	$	134	$	138

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

Cash Flow Hedges-Location And Amount Of Pre-Tax (Losses) Recognized In Comprehensive Income


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

		Three Months Ended March 31,
(in millions)		2014			2013
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts^(a)			$	2	$	13
Commodity contracts				―		1
Total Pretax Gains (Losses) Recorded in AOCI			$	2	$	14
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense			$	(1)	$	(1)
Total Pretax Losses Reclassified from AOCI into Earnings			$	(1)	$	(1)

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

Undesignated Contracts - Location And Amount Of Pre-Tax Gains And (Losses) Recognized In Income Or As Regulatory Assets Or Liabilities


		Three Months Ended March 31,
(in millions)				2014		2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric			$	(4)	$	6
Revenue: Nonregulated electric, natural gas and other				(397)		(82)
Fuel used in electric generation and purchased power - regulated				7		(52)
Fuel used in electric generation and purchased power - nonregulated				138		(7)
Interest rate contracts
Interest expense				(4)		(4)
Total Pretax Losses Recognized in Earnings			$	(260)	$	(139)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets			$	(2)	$	105
Regulatory liabilities				27		(5)
Interest rate contracts^(b)
Regulatory assets				4		13
Total Pretax Losses Recognized as Regulatory Assets or Liabilities			$	29	$	113

(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.

Schedule Of Information Regarding Derivative Instruments That Contain Credit-Risk Related Contingent Features

	March 31, 2014
(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	$	613	$	142	$	23	$	119	$	611
Fair value of collateral already posted		287		8		―		8		248
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered		26		135		23		112		26

	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

Schedule Of Cash Collateral Under Master Netting Arrangements

March 31, 2014

December 31, 2013

(in millions)

Receivables

Payables

Receivables

Payables

Duke Energy

Amounts offset against net derivative positions

―

Amounts not offset against net derivative positions

248

―

122

―

Progress Energy

Amounts offset against net derivative positions

―

Duke Energy Florida

Amounts offset against net derivative positions

―

Duke Energy Ohio

Amounts offset against net derivative positions

―

Amounts not offset against net derivative positions

217

―

115

―

Progress Energy [Member]

Derivative [Line Items]

Location And Fair Value Amounts Of Derivatives Reflected In The Condensed Consolidated Balance Sheets


	March 31, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other	$	―	$	1	$	―	$	1
Deferred Credits and Other Liabilities: Other		―		―		―		4
Total Derivatives Designated as Hedging Instruments		―		1		―		5
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other		10		6		3		2
Investments and Other Assets: Other		1		―		2		1
Current Liabilities: Other		22		102		11		105
Deferred Credits and Other Liabilities: Other		3		81		4		91
Total Derivatives Not Designated as Hedging Instruments		36		189		20		199
Total Derivatives	$	36	$	190	$	20	$	204

Offsetting Assets and Liabilities

	March 31, 2014
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized	$	32	$	4	$	108	$	82
Gross amounts offset		(28)		(4)		(34)		(6)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	4	$	―	$	74	$	76

	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 Condensed Consolidated Balance Sheet	$	2	$	1	$	90	$	87

Undesignated Contracts - Location And Amount Of Pre-Tax Gains And (Losses) Recognized In Income Or As Regulatory Assets Or Liabilities


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

		Three Months Ended March 31,
(in millions)				2014		2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues			$	(3)	$	6
Fuel used in electric generation and purchased power				7		(52)
Interest rate contracts
Interest expense				(4)		(4)
Total Pretax Losses Recognized in Earnings			$	―	$	(50)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets			$	(2)	$	105
Interest rate contracts^(b)
Regulatory assets				4		5
Total Pretax (Losses) Gains Recognized as Regulatory Assets or Liabilities			$	2	$	110

(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.

Duke Energy Progress [Member]

Derivative [Line Items]

Location And Fair Value Amounts Of Derivatives Reflected In The Condensed Consolidated Balance Sheets


		March 31, 2014				December 31, 2013
(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			6		5		―		―
Investments and Other Assets: Other			1		―		2		1
Current Liabilities: Other			7		43		2		40
Deferred Credits and Other Liabilities: Other			1		23		2		29
Total Derivatives Not Designated as Hedging Instruments			15		71		6		70
Total Derivatives		$	15	$	72	$	6	$	71

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

Offsetting Assets and Liabilities

	March 31, 2014
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized	$	13	$	2	$	48	$	24
Gross amounts offset		(11)		(2)		(11)		(2)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	2	$	―	$	37	$	22

	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 amounts recognized on the Condensed Consolidated Balance Sheet	$	―	$	―	$	38	$	27

Undesignated Contracts - Location And Amount Of Pre-Tax Gains And (Losses) Recognized In Income Or As Regulatory Assets Or Liabilities


		Three Months Ended March 31,
(in millions)		2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues			$	(3)	$	6
Fuel used in electric generation and purchased power				7		(17)
Interest rate contracts
Interest expense				(3)		(3)
Total Pretax Losses Recognized in Earnings			$	1	$	(14)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets			$	17	$	36
Interest rate contracts^(b)
Regulatory assets				3		3
Total Pretax Losses Recognized as Regulatory Assets or Liabilities			$	20	$	39

(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.

Duke Energy Florida [Member]

Derivative [Line Items]

Location And Fair Value Amounts Of Derivatives Reflected In The Condensed Consolidated Balance Sheets


		March 31, 2014				December 31, 2013
(in millions)		Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Assets: Other			4		1		3		2
Current Liabilities: Other			15		58		9		64
Deferred Credits and Other Liabilities: Other			2		58		2		63
Total Derivatives		$	21	$	117	$	14	$	129

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

Offsetting Assets and Liabilities

	March 31, 2014
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized	$	19	$	2	$	59	$	58
Gross amounts offset		(16)		(2)		(20)		(6)
Net amounts recognized on the Condensed Balance Sheet	$	3	$	―	$	39	$	52

	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 amounts recognized on the Condensed Balance Sheet	$	2	$	―	$	51	$	56

Undesignated Contracts - Location And Amount Of Pre-Tax Gains And (Losses) Recognized In Income Or As Regulatory Assets Or Liabilities


		Three Months Ended March 31,
(in millions)		2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power			$	―	$	(35)
Interest rate contracts
Interest expense				(1)		(1)
Total Pretax Losses Recognized in Earnings			$	(1)	$	(36)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(a)
Regulatory assets			$	(19)	$	69
Interest rate contracts
Regulatory assets				1		1
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities			$	(18)	$	70

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

Duke Energy Ohio [Member]

Derivative [Line Items]

Location And Fair Value Amounts Of Derivatives Reflected In The Condensed Consolidated Balance Sheets


	March 31, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other		―		―		186		163
Current Assets: Assets Held for Sale		7		1		―		―
Investments and Other Assets: Other		―		―		202		130
Investments and Other Assets: Assets Held for Sale		315		256		―		―
Current Liabilities: Other		―		―		1		36
Current Liabilities: Assets Held for Sale		407		479		―		―
Deferred Credits and Other Liabilities: Other		―		―		2		56
Deferred Credits and Other Liabilities: Assets Held for Sale		3		37		―		―
Interest rate contracts
Current Liabilities: Other		―		1		―		1
Deferred Credits and Other Liabilities: Other		―		4		―		4
Total Derivatives	$	732	$	778	$	391	$	390

Offsetting Assets and Liabilities

	March 31, 2014
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(a)		Non-Current^(b)		Current^(c)		Non-Current^(d)
Gross amounts recognized	$	413	$	319	$	482	$	296
Gross amounts offset		(407)		(260)		(438)		(260)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	6	$	59	$	44	$	36

	December 31, 2013
	Derivative Assets				Derivative Liabilities
(in millions)	Current^(e)		Non-Current^(f)		Current^(g)		Non-Current^(h)
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 Condensed Consolidated Balance Sheet	$	21	$	73	$	27	$	47

Undesignated Contracts - Location And Amount Of Pre-Tax Gains And (Losses) Recognized In Income Or As Regulatory Assets Or Liabilities


	Three Months Ended March 31,
(in millions)	2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Nonregulated electric, natural gas and other		$	(449)	$	(91)
Fuel used in electric generation and purchased power - nonregulated			138		(7)
Total Pretax (Losses) Gains Recognized in Earnings		$	(311)	$	(98)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory liabilities			2		―
Interest rate contracts
Regulatory assets		$	―	$	1
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	2	$	1