XML 68 R37.htm IDEA: XBRL DOCUMENT

Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2014

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

The tables below show information relating to volumes of 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.



	September 30, 2014
	Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity (gigawatt-hours)^(a)	29,569	—	—	—	—	25,680	607
Natural gas (millions of decatherms)	659	—	319	117	202	340	—



	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	—


(a)	Amounts at Duke Energy Ohio include intercompany positions that eliminate at Duke Energy.

Notional Amounts Of Derivative Instruments Related To Interest Rate Risk

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



	September 30, 2014				December 31, 2013
(in millions)	Duke Energy		Duke Energy Ohio		Duke Energy		Duke Energy Ohio
Cash flow hedges^(a)	$	764	$	—	$	798	$	—
Undesignated contracts	27		27		34		27
Total notional amount	$	791	$	27	$	832	$	27


(a)	Duke Energy includes amounts related to consolidated Variable Interest Entities (VIEs) of $552 million at September 30, 2014 and $584 million at December 31, 2013.

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

The following table shows the fair value of derivatives and the line items in the Condensed Consolidated Balance Sheets where they are reported. Although derivatives subject to master netting arrangements are netted on the Condensed 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.



	September 30, 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	16		—		27		—
Current Liabilities: Other	—		14		—		18
Deferred Credits and Other Liabilities: Other	—		23		—		4
Total Derivatives Designated as Hedging Instruments	16		38		27		23
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other	36		—		201		158
Current Assets: Assets Held for Sale	2		2		—		—
Investments and Other Assets: Other	9		—		215		131
Investments and Other Assets: Assets Held for Sale	9		2		—		—
Current Liabilities: Other	4		123		13		153
Current Liabilities: Liabilities Associated with Assets Held for Sale	346		445		—		—
Deferred Credits and Other Liabilities: Other	—		37		5		166
Deferred Credits and Other Liabilities: Liabilities Associated with Assets Held for Sale	148		260		—		—
Interest rate contracts
Current Liabilities: Other	—		1		—		1
Deferred Credits and Other Liabilities: Other	—		5		—		4
Total Derivatives Not Designated as Hedging Instruments	554		875		434		613
Total Derivatives	$	570	$	913	$	461	$	636

Offsetting Assets and Liabilities

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.



	Derivative Assets
	September 30, 2014						December 31, 2013
(in millions)	Current^(a)			Non-Current^(b)			Current^(e)			Non-Current^(f)
Gross amounts recognized	$	388		$	175		$	214		$	233
Gross amounts offset	(362		)	(127		)	(179		)	(138		)
Net amount subject to master netting	26			48			35			95
Amounts not subject to master netting	—			7			—			14
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	26		$	55		$	35		$	109



	Derivative Liabilities
	September 30, 2014						December 31, 2013
(in millions)	Current^(c)			Non-Current^(d)			Current^(g)			Non-Current^(h)
Gross amounts recognized	$	583		$	314		$	322		$	299
Gross amounts offset	(402		)	(203		)	(192		)	(155		)
Net amounts subject to master netting	181			111			130			144
Amounts not subject to master netting	3			13			4			11
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	184		$	124		$	134		$	155


(a)	Included in Other and Assets Held for Sale within Current Assets on the Condensed Consolidated Balance Sheet.


(b)	Included in Other and Assets Held for Sale within Investments and Other Assets on the Condensed Consolidated Balance Sheet.


(c)	Included in Other and Liabilities Associated with Assets Held for Sale within Current Liabilities on the Condensed Consolidated Balance Sheet.


(d)	Included in Other and Liabilities Associated with Assets Held for Sale within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.


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


(f)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.


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


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

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. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.



	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2014			2013		2014			2013
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts	$	(6	)	$	—	$	(15	)	$	71
Commodity contracts	—			—		—			1
Total Pretax Gains (Losses) Recorded in AOCI	$	(6	)	$	—	$	(15	)	$	72
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(2		)	—		(7		)	(2		)

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 or the Condensed Consolidated Balance Sheets where the pretax gains and losses were reported. Amounts included in Regulatory Assets or Liabilities for commodity contracts are reclassified to earnings to match recovery through the fuel clause. Amounts included in Regulatory Assets or Liabilities for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.



	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	—		$	3		$	—		$	10
Revenue: Nonregulated electric, natural gas and other	—			(7		)	—			(7		)
Fuel used in electric generation and purchased power - regulated	32			(68		)	18			(157		)
Fuel used in electric generation and purchased power - nonregulated	—			(2		)	—			—
Loss from Discontinued Operations	(319		)	—			(825		)	(28		)
Interest rate contracts
Interest expense	9			(4		)	—			(13		)
Total Pretax Gains (Losses) Recognized in Earnings	$	(278	)	$	(78	)	$	(807	)	$	(195	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	3		$	(29	)	$	2		$	(34	)
Regulatory liabilities	1			6			—			10
Interest rate contracts
Regulatory assets	(7		)	12			9			51
Regulatory liabilities	(12		)	—			16			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(15	)	$	(11	)	$	27		$	27

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

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. Amounts for Duke Energy Carolinas and Duke Energy Indiana were not material.



	September 30, 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	$	688	$	107	$	38	$	69	$	688
Fair value of collateral already posted	202		—		—		—		202
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	86		107		38		69		86



	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

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. Amounts for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana were not material.



	September 30, 2014		December 31, 2013
(in millions)	Receivables		Receivables
Duke Energy
Amounts offset against net derivative positions	$	116	$	30
Amounts not offset against net derivative positions	86		122
Progress Energy
Amounts offset against net derivative positions	—		10
Duke Energy Florida
Amounts offset against net derivative positions	—		10
Duke Energy Ohio
Amounts offset against net derivative positions	116		19
Amounts not offset against net derivative positions	86		115

Progress Energy [Member]

Derivative [Line Items]

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



	September 30, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other	$	—	$	—	$	—	$	1
Deferred Credits and Other Liabilities: Other	—		—		—		4
Total Derivatives Designated as Hedging Instruments	—		—		—		5
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other	—		—		3		2
Investments and Other Assets: Other	—		—		2		1
Current Liabilities: Other	1		115		11		105
Deferred Credits and Other Liabilities: Other	1		29		4		91
Total Derivatives Not Designated as Hedging Instruments	2		144		20		199
Total Derivatives	$	2	$	144	$	20	$	204

Offsetting Assets and Liabilities



	Derivative Assets
	September 30, 2014						December 31, 2013
(in millions)	Current^(a)			Non-Current^(b)			Current^(a)			Non-Current^(b)
Gross amounts recognized	$	1		$	1		$	15		$	5
Gross amounts offset	(1		)	(1		)	(13		)	(4		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	—		$	—		$	2		$	1



	Derivative Liabilities
	September 30, 2014						December 31, 2013
(in millions)	Current^(c)			Non-Current^(d)			Current^(c)			Non-Current^(d)
Gross amounts recognized	$	115		$	29		$	107		$	93
Gross amounts offset	(1		)	(1		)	(17		)	(10		)
Net amounts subject to master netting	114			28			90			83
Amounts not subject to master netting	—			—			—			4
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	114		$	28		$	90		$	87


(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.

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. Amounts included in Regulatory Assets or Liabilities for commodity contracts are reclassified to earnings to match recovery through the fuel clause. Amounts included in Regulatory Assets or Liabilities for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.



	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2014		2013			2014		2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues	$	1	$	3		$	—	$	10
Fuel used in electric generation and purchased power	32		(68		)	18		(157		)
Interest rate contracts
Interest expense	—		(4		)	—		(13		)
Total Pretax Gains (Losses) Recognized in Earnings	$	33	$	(69	)	$	18	$	(160	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	3	$	(31	)	$	19	$	(34	)
Interest rate contracts
Regulatory assets	—		4			—		13
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	3	$	(27	)	$	19	$	(21	)

Duke Energy Progress [Member]

Derivative [Line Items]

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



	September 30, 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
Investments and Other Assets: Other	—		—		2		1
Current Liabilities: Other	2		39		2		40
Deferred Credits and Other Liabilities: Other	1		8		2		29
Total Derivatives Not Designated as Hedging Instruments	3		47		6		70
Total Derivatives	$	3	$	48	$	6	$	71

Offsetting Assets and Liabilities



	Derivative Assets
	September 30, 2014						December 31, 2013
(in millions)	Current^(a)			Non-Current^(b)			Current^(a)			Non-Current^(b)
Gross amounts recognized	$	2		$	1		$	3		$	3
Gross amounts offset	(2		)	(1		)	(3		)	(3		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	—		$	—		$	—		$	—



	Derivative Liabilities
	September 30, 2014						December 31, 2013
(in millions)	Current^(c)			Non-Current^(d)			Current^(c)			Non-Current^(d)
Gross amounts recognized	$	40		$	8		$	41		$	30
Gross amounts offset	(2		)	(1		)	(3		)	(3		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	38		$	7		$	38		$	27


(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.

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 and losses were reported. Amounts included in Regulatory Assets or Liabilities for commodity contracts are reclassified to earnings to match recovery through the fuel clause. Amounts included in Regulatory Assets or Liabilities for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.



	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014		2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues	$	1		$	3		$	—	$	10
Fuel used in electric generation and purchased power	13			(24		)	4		(53		)
Interest rate contracts
Interest expense	—			(3		)	—		(9		)
Total Pretax Gains (Losses) Recognized in Earnings	$	14		$	(24	)	$	4	$	(52	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(19	)	$	(11	)	$	21	$	(18	)
Interest rate contracts
Regulatory assets	—			3			—		10
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(19	)	$	(8	)	$	21	$	(8	)

Duke Energy Florida [Member]

Derivative [Line Items]

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



	September 30, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other	$	—	$	—	$	3	$	2
Current Liabilities: Other	1		75		9		64
Deferred Credits and Other Liabilities: Other	1		21		2		63
Total Derivatives	$	2	$	96	$	14	$	129

Offsetting Assets and Liabilities



	Derivative Assets
	September 30, 2014						December 31, 2013
(in millions)	Current^(a)			Non-Current^(b)			Current^(a)			Non-Current^(b)
Gross amounts recognized	$	1		$	1		$	12		$	2
Gross amounts offset	(1		)	(1		)	(10		)	(2		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	—		$	—		$	2		$	—



	Derivative Liabilities
	September 30, 2014						December 31, 2013
(in millions)	Current^(c)			Non-Current^(d)			Current^(c)			Non-Current^(d)
Gross amounts recognized	$	75		$	21		$	66		$	63
Gross amounts offset	(1		)	(1		)	(15		)	(7		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	74		$	20		$	51		$	56


(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.

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 and losses were reported. Amounts included in Regulatory Assets or Liabilities for commodity contracts are reclassified to earnings to match recovery through the fuel clause.



	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2014		2013			2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power	20		(45		)	14			(105		)
Interest rate contracts
Interest expense	—		(1		)	—			(3		)
Total Pretax Gains (Losses) Recognized in Earnings	$	20	$	(46	)	$	14		$	(108	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	22	$	(19	)	$	(2	)	$	(16	)
Interest rate contracts
Regulatory assets	—		1			—			3
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	22	$	(18	)	$	(2	)	$	(13	)

Duke Energy Ohio [Member]

Derivative [Line Items]

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



	September 30, 2014				December 31, 2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other	$	2	$	—	$	186	$	163
Current Assets: Assets Held for Sale	1		1		—		—
Investments and Other Assets: Other	—		—		202		130
Investments and Other Assets: Assets Held for Sale	9		2		—		—
Current Liabilities: Other	—		—		1		36
Current Liabilities: Liabilities Associated with Assets Held for Sale	378		484		—		—
Deferred Credits and Other Liabilities: Other	—		—		2		56
Deferred Credits and Other Liabilities: Liabilities Associated with Assets Held for Sale	174		287		—		—
Interest rate contracts
Current Liabilities: Other	—		—		—		1
Deferred Credits and Other Liabilities: Other	—		4		—		4
Total Derivatives Designated as Hedging Instruments	564		778		391		390
Total Derivatives	$	564	$	778	$	391	$	390

Offsetting Assets and Liabilities



	Derivative Assets
	September 30, 2014						December 31, 2013
(in millions)	Current^(a)			Non-Current^(b)			Current^(e)			Non-Current^(f)
Gross amounts recognized	$	381		$	183		$	186		$	205
Gross amounts offset	(377		)	(177		)	(165		)	(132		)
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	4		$	6		$	21		$	73



	Derivative Liabilities
	September 30, 2014						December 31, 2013
(in millions)	Current^(c)			Non-Current^(d)			Current^(g)			Non-Current^(h)
Gross amounts recognized	$	485		$	293		$	199		$	186
Gross amounts offset	(419		)	(251		)	(173		)	(143		)
Net amounts subject to master netting	66			42			26			43
Amounts not subject to master netting	—			—			1			4
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	66		$	42		$	27		$	47


(a)	Included in Assets Held for Sale within Current Assets on the Condensed Consolidated Balance Sheet.


(b)	Included in Assets Held for Sale within Investments and Other Assets on the Condensed Consolidated Balance Sheet.


(c)	Included in Liabilities Associated with Assets Held for Sale within Current Liabilities on the Condensed Consolidated Balance Sheet.


(d)	Included in Liabilities Associated with Assets Held for Sale within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.


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


(f)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.


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


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

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



	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2014			2013		2014			2013
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Income (Loss) from Discontinued Operations	$	(303	)	$	3	$	(887	)	$	(28	)
Interest rate contracts
Interest expense	—			—		(1		)	(1		)
Total Pretax Gains (Losses) Recognized in Earnings	$	(303	)	$	3	$	(888	)	$	(29	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	—		$	—	$	(1	)	$	—
Interest rate contracts
Regulatory assets	—			—		—			3
Regulatory liabilities	—			—		6			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	—		$	—	$	5		$	3