Derivatives and Hedging

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

DERIVATIVES AND HEDGING

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.

COMMODITY PRICE RISK

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.

Fair Value and Cash Flow Hedges

At December 31, 2014, there were no open commodity derivative instruments designated as hedges.

Undesignated Contracts

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’ 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.

Volumes

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.

	December 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)	25,370	—	—	—	—	19,141	—
Natural gas (millions of decatherms)	676	35	328	116	212	313	—

	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.

INTEREST RATE RISK

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 U.S. 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, 2014						December 31, 2013
(in millions)	Duke Energy		Duke Energy Florida		Duke Energy Ohio		Duke Energy		Duke Energy Ohio
Cash flow hedges(a)	$	750	$	—	$	—	$	798	$	—
Undesignated contracts	277		250		27		34		27
Total notional amount	$	1,027	250		$	27	$	832	$	27

(a) Duke Energy includes amounts related to consolidated VIEs of $541 million at December 31, 2014 and $584 million at December 31, 2013.

DUKE ENERGY

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,
	2014				2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other	$	—	$	—	$	—	$	1
Interest rate contracts
Investments and other assets: other	10		—		27		—
Current liabilities: other	—		13		—		18
Deferred credits and other liabilities: other	—		29		—		4
Total Derivatives Designated as Hedging Instruments	$	10	$	42	$	27	$	23
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other	$	18	$	—	$	201	$	158
Current assets: assets held for sale	15		—		—		—
Investments and other assets: other	3		—		215		131
Investments and other assets: assets held for sale	15		—		—		—
Current liabilities: other	1		307		13		153
Current liabilities: assets held for sale	174		253		—		—
Deferred credits and other liabilities: other	2		91		5		166
Deferred credits and other liabilities: assets held for sale	111		208		—		—
Interest rate contracts
Current assets: other	2		—		—		—
Current liabilities: other	—		1		—		1
Deferred credits and other liabilities: other	—		7		—		4
Total Derivatives Not Designated as Hedging Instruments	341		867		434		613
Total Derivatives	$	351	$	909	$	461	$	636

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
	December 31, 2014						December 31, 2013
(in millions)	Current(a)			Non-Current(b)			Current(e)			Non-Current(f)
Gross amounts recognized	$	210		$	136		$	214		$	233
Gross amounts offset	(153		)	(88		)	(179		)	(138		)
Net amount subject to master netting	57			48			35			95
Amounts not subject to master netting	—			5			—			14
Net amounts recognized on the Consolidated Balance Sheet	$	57		$	53		$	35		$	109

	Derivative Liabilities
	December 31, 2014						December 31, 2013
(in millions)	Current(c)			Non-Current(d)			Current(g)			Non-Current(h)
Gross amounts recognized	$	573		$	319		$	322		$	299
Gross amounts offset	(213		)	(173		)	(192		)	(155		)
Net amounts subject to master netting	360			146			130			144
Amounts not subject to master netting	1			16			4			11
Net amounts recognized on the Consolidated Balance Sheet	$	361		$	162		$	134		$	155

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

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

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

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

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

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

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

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

The following table shows the gains and losses 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. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.

	Years Ended December 31,
(in millions)	2014			2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts	$	(39	)	$	79		$	(23	)
Commodity contracts	—			1			1
Total Pretax Gains (Losses) Recorded in AOCI	$	(39	)	$	80		$	(22	)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(7		)	(2		)	2

There was no hedge ineffectiveness during the years ended December 31, 2014, 2013 and 2012, and no gains or losses were excluded from the assessment of hedge effectiveness during the same periods.

A $10 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. 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	—		$	11		$	(23	)
Other income and expenses	—			—			(2		)
Fuel used in electric generation and purchased power-regulated	(44		)	(200		)	(194		)
Income (Loss) From Discontinued Operations	(729		)	(57		)	40
Interest rate contracts
Interest expense	(6		)	(18		)	(8		)
Total Pretax (Losses) Gains Recognized in Earnings	$	(779	)	$	(264	)	$	(187	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(268	)	$	10		$	(2	)
Regulatory liabilities	14			15			36
Interest rate contracts
Regulatory assets	—			55			10
Regulatory liabilities	2			—			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(252	)	$	80		$	44

DUKE ENERGY CAROLINAS

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,
	2014				2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current liabilities: other	$	—	$	14	$	—	$	1
Deferred credits and other liabilities: other	—		5		—		1
Total Derivatives Not Designated as Hedging Instruments	—		19		—		2
Total Derivatives	$	—	$	19	$	—	$	2

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
	December 31, 2014				December 31, 2013
(in millions)	Current(a)		Non-Current(b)		Current(a)		Non-Current(b)
Gross amounts recognized	$	—	$	—	$	—	$	—
Gross amounts offset	—		—		—		—
Net amount subject to master netting	—		—		—		—
Amounts not subject to master netting	—		—		—		—
Net amounts recognized on the Consolidated Balance Sheet	$	—	$	—	$	—	$	—

	Derivative Liabilities
	December 31, 2014				December 31, 2013
(in millions)	Current(c)		Non-Current(d)		Current(c)		Non-Current(d)
Gross amounts recognized	$	14	$	5	$	—	$	—
Gross amounts offset	—		—		—		—
Net amount subject to master netting	14		5		—		—
Amounts not subject to master netting	—		—		1		1
Net amounts recognized on the Consolidated Balance Sheet	$	14	$	5	$	1	$	1

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

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	$	(3	)	$	(3	)	$	(3	)

A $3 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 and Comprehensive Income or the Consolidated Balance Sheets where the pretax gains and losses were reported. Amounts not 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
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
Commodity contracts
Regulatory assets	$	(19	)	$	—		$	—

PROGRESS ENERGY

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,
	2014				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	$	—	$	—	$	3	$	2
Investments and other assets: other	—		—		2		1
Current liabilities: other	—		288		11		105
Deferred credits and other liabilities: other	—		80		4		91
Interest rate contracts
Current assets: other	2		—		—		—
Deferred credits and other liabilities: other	—		2		—		—
Total Derivatives Not Designated as Hedging Instruments	2		370		20		199
Total Derivatives	$	2	$	371	$	20	$	204

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

	Derivative Liabilities
	December 31, 2014						December 31, 2013
(in millions)	Current(c)			Non-Current(d)			Current(c)			Non-Current(d)
Gross amounts recognized	$	289		$	82		$	107		$	93
Gross amounts offset	(17		)	(8		)	(17		)	(10		)
Net amounts subject to master netting	272			74			90			83
Amounts not subject to master netting	—			—			—			4
Net amounts recognized on the Consolidated Balance Sheet	$	272		$	74		$	90		$	87

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

	Years Ended December 31,
(in millions)	2014			2013		2012
Pretax Gains (Losses) Recorded in AOCI
Commodity contracts	$	—		$	1	$	1
Interest rate contracts	—			—		(11		)
Total Pretax Gains (Losses) Recorded in AOCI	$	—		$	1	$	(10	)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(13		)	—		(14		)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets or Liabilities(a)
Interest rate contracts
Regulatory assets	—			$	—	(159		)

(a)    Effective with the merger, Duke Energy Progress and 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, 2014, 2013 and 2012, and no gains or losses have been excluded from the assessment of hedge effectiveness during the same periods.

A $13 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. 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues	$	—		$	11		$	(11	)
Fuel used in electric generation and purchased power	(44		)	(200		)	(454		)
Other income and expenses, net	—			—			7
Interest rate contracts
Interest expense	(4		)	(17		)	(8		)
Total Pretax (Losses) Gains Recognized in Earnings	$	(48	)	$	(206	)	$	(466	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(233	)	$	10		$	(171	)
Regulatory liabilities	2			—			—
Interest rate contracts
Regulatory assets	2			18			6
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(229	)	$	28		$	(165	)

DUKE ENERGY PROGRESS

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. Substantially all derivatives not designated as hedging instruments receive regulatory accounting treatment.

	December 31,
	2014				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	—		108		2		40
Deferred credits and other liabilities: other	—		23		2		29
Total Derivatives Not Designated as Hedging Instruments	—		131		6		70
Total Derivatives	$	—	$	132	$	6	$	71

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
	December 31, 2014				December 31, 2013
(in millions)	Current(a)		Non-Current(b)		Current(a)			Non-Current(b)
Gross amounts recognized	$	—	$	—	$	3		$	3
Gross amounts offset	—		—		(3		)	(3		)
Net amounts recognized on the Consolidated Balance Sheet	$	—	$	—	$	—		$	—

	Derivative Liabilities
	December 31, 2014				December 31, 2013
(in millions)	Current(c)		Non-Current(d)		Current(c)			Non-Current(d)
Gross amounts recognized	$	109	$	23	$	41		$	30
Gross amounts offset	—		—		(3		)	(3		)
Net amounts recognized on the Consolidated Balance Sheet	$	109	$	23	$	38		$	27

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

	Years Ended December 31,
(in millions)	2014		2013		2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts	$	—	$	—	$	(7	)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	—		—		(5		)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets or Liabilities(a)
Interest rate contracts
Regulatory assets	—		$	—	(117		)

(a) 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, 2014, 2013 and 2012, and no gains or losses have been excluded from the assessment of hedge effectiveness during the same periods.

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. 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues	$	—		$	11		$	(11	)
Fuel used in electric generation and purchased power	(15		)	(71		)	(115		)
Interest rate contracts
Interest expense	—			(13		)	(6		)
Total Pretax (Losses) Gains Recognized in Earnings	$	(15	)	$	(73	)	$	(132	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(82	)	$	(6	)	$	(55	)
Interest rate contracts
Regulatory assets	—			13			6
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(82	)	$	7		$	(49	)

DUKE ENERGY FLORIDA

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,
	2014				2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other	$	—	$	—	$	3	$	2
Current liabilities: other	—		180		9		64
Deferred credits and other liabilities: other	—		57		2		63
Interest rate contracts
Current assets: other	2		—		—		—
Deferred credits and other liabilities: other	—		2		—		—
Total Derivatives Not Designated as Hedging Instruments	2		239		14		129
Total Derivatives	$	2	$	239	$	14	$	129

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

	Derivative Liabilities
	December 31, 2014						December 31, 2013
(in millions)	Current(c)			Non-Current(d)			Current(c)			Non-Current(d)
Gross amounts recognized	$	180		$	59		$	66		$	63
Gross amounts offset	(17		)	(8		)	(15		)	(7		)
Net amounts recognized on the Consolidated Balance Sheet	$	163		$	51		$	51		$	56

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

	Years Ended December 31,
(in millions)	2014			2013		2012
Pretax Gains (Losses) Recorded in AOCI
Commodity contracts	$	—		$	1	$	1
Interest rate contracts	—			—		(2		)
Total Pretax Gains (Losses) Recorded in AOCI	$	—		$	1	$	(1	)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(2		)	—		(2		)
Location of Pretax Gains and (Losses) Reclassified from AOCI to Regulatory Assets(a)
Interest rate contracts
Regulatory assets	—			$	—	(42		)

(a) 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.

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. 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power	$	(29	)	$	(129	)	$	(339	)
Interest rate contracts
Interest expense	(4		)	(5		)	(2		)
Total Pretax (Losses) Gains Recognized in Earnings	$	(33	)	$	(134	)	$	(341	)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(151	)	$	16		$	(116	)
Interest rate contracts
Regulatory assets	2			5			—
Regulatory liabilities	2			—			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(147	)	$	21		$	(116	)

DUKE ENERGY OHIO

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,
	2014				2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other	$	1	$	—	$	186	$	163
Current assets: assets held for sale	28		4		—		—
Investments and other assets: other	—		—		202		130
Investments and other assets: assets held for sale	26		4		—		—
Current liabilities: other	—		—		1		36
Current liabilities: assets held for sale	175		252		—		—
Deferred credits and other liabilities: other	—		—		2		56
Deferred credits and other liabilities: assets held for sale	111		207		—		—
Interest rate contracts
Current liabilities: other	—		1		—		1
Deferred credits and other liabilities: other	—		5		—		4
Total Derivatives Not Designated as Hedging Instruments	341		473		391		390
Total Derivatives	$	341	$	473	$	391	$	390

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
	December 31, 2014						December 31, 2013
(in millions)	Current(a)			Non-Current(b)			Current(e)			Non-Current(f)
Gross amounts recognized	$	204		$	137		$	186		$	205
Gross amounts offset	(179		)	(114		)	(165		)	(132		)
Net amounts recognized on the Consolidated Balance Sheet	$	25		$	23		$	21		$	73

	Derivative Liabilities
	December 31, 2014						December 31, 2013
(in millions)	Current(c)			Non-Current(d)			Current(g)			Non-Current(h)
Gross amounts recognized	$	257		$	216		$	199		$	186
Gross amounts offset	(222		)	(193		)	(173		)	(143		)
Net amounts subject to master netting	35			23			26			43
Amounts not subject to master netting	—			—			1			4
Net amounts recognized on the Consolidated Balance Sheet	$	35		$	23		$	27		$	47

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

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

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

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

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

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

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

(h) 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 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. 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.

	Years Ended December 31,
(in millions)	2014			2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Income (Loss) from discontinued operations	(758		)	(56		)	78
Interest rate contracts
Interest expense	(1		)	(1		)	(1		)
Total Pretax (Losses) Gains Recognized in Earnings	$	(759	)	$	(57	)	$	77
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	1		$	—		$	2
Regulatory liabilities	5			—			(1		)
Interest rate contracts
Regulatory assets	(2		)	4			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	4		$	4		$	1

DUKE ENERGY INDIANA

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,
	2014				2013
(in millions)	Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other	$	14	$	—	$	12	$	—
Total Derivatives Not Designated as Hedging Instruments	14		—		12		—
Total Derivatives	$	14	$	—	$	12	$	—

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
	December 31, 2014				December 31, 2013
(in millions)	Current(a)		Non-Current(b)		Current(a)			Non-Current(b)
Gross amounts recognized	$	14	$	—	$	12		$	—
Gross amounts offset	—		—		(1		)	—
Net amounts recognized on the Consolidated Balance Sheet	$	14	$	—	$	11		$	—

	Derivative Liabilities
	December 31, 2014				December 31, 2013
(in millions)	Current(c)		Non-Current(d)		Current(c)		Non-Current(d)
Gross amounts recognized	$	—	$	—	$	—	$	—
Gross amounts offset	—		—		—		—
Net amount subject to master netting	—		—		—		—
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. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.

	Years Ended December 31,
(in millions)	2014		2013		2012
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	$	—	$	3	$	3

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. 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.

	Years Ended December 31,
(in millions)	2014			2013		2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	—		$	1	$	—
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(16	)	$	—	$	2
Regulatory liabilities	9			16		35
Interest rate contracts
Regulatory assets	—			34		4
Regulatory liabilities	—			—		—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(7	)	$	50	$	41

CREDIT RISK

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 or (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, 2014
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	845	$	19	$	370	$	131	$	239	$	456
Fair value of collateral already posted	209		—		23		—		23		186
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	407		19		347		131		216		41

	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

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,
	2014				2013
(in millions)	Receivables		Payables		Receivables		Payables
Duke Energy
Amounts offset against net derivative positions	$	145	$	—	$	30	$	—
Amounts not offset against net derivative positions	64		—		122		—
Progress Energy
Amounts offset against net derivative positions	23		—		10		—
Duke Energy Florida
Amounts offset against net derivative positions	23		—		10		—
Duke Energy Ohio
Amounts offset against net derivative positions	122		—		19		—
Amounts not offset against net derivative positions	64		—		115		—
Duke Energy Indiana
Amounts offset against net derivative positions	—		—		—		1
Amounts not offset against net derivative positions	—		—		1		—