Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Measurement Amounts For Assets And Liabilities

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral, which is disclosed in Note 10. See Note 11 for additional information related to investments by major security type.



	June 30, 2015
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	3,654		$	3,485		$	1		$	168
Nuclear decommissioning trust fund debt securities	1,882			517			1,365			—
Other trading and available-for-sale equity securities	98			98			—			—
Other trading and available-for-sale debt securities	320			85			230			5
Derivative assets	51			1			27			23
Total assets	6,005			4,186			1,623			196
Derivative liabilities	(369		)	(1		)	(368		)	—
Net assets	$	5,636		$	4,185		$	1,255		$	196



	December 31, 2014
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	3,650		$	3,493		$	6		$	151
Nuclear decommissioning trust fund debt securities	1,899			648			1,251			—
Other trading and available-for-sale equity securities	96			96			—			—
Other trading and available-for-sale debt securities	263			41			217			5
Derivative assets	110			49			24			37
Total assets	6,018			4,327			1,498			193
Derivative liabilities	(668		)	(162		)	(468		)	(38		)
Net assets	$	5,350		$	4,165		$	1,030		$	155

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements. Amounts included in earnings for derivatives are primarily included in Operating Revenues.



	Three Months Ended June 30, 2015
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	169		$	14		$	183
Total pretax realized or unrealized gains (losses) included in earnings^(a)	—			(6		)	(6		)
Purchases, sales, issuances and settlements:
Purchases	3			24			27
Sales	(3		)	—			(3		)
Settlements	—			(12		)	(12		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			3			7
Balance at end of period	$	173		$	23		$	196


(a)	Includes amounts related to nonregulated operations and classified as (Loss) Income From Discontinued Operations, net of tax in Duke Energy's Condensed Consolidated Statements of Operations.



	Three Months Ended June 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	99		$	(14	)	$	85
Total pretax realized or unrealized gains (losses) included in earnings	—			(6		)	(6		)
Purchases, sales, issuances and settlements:
Purchases	15			51			66
Sales	(1		)	—			(1		)
Issuances	—			(1		)	(1		)
Settlements	—			(6		)	(6		)
Transfers out of Level 3 due to observability of inputs	68			2			70
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	7			(4		)	3
Balance at end of period	$	188		$	22		$	210
Pretax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding	$	—		$	(25	)	$	(25	)



	Six Months Ended June 30, 2015
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	156		$	(1	)	$	155
Total pretax realized or unrealized gains (losses) included in earnings^(a)	—			18			18
Purchases, sales, issuances and settlements:
Purchases	12			24			36
Sales	(4		)	—			(4		)
Settlements	—			(22		)	(22		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	9			4			13
Balance at end of period	$	173		$	23		$	196


(a)	Includes amounts related to nonregulated operations and classified as (Loss) Income From Discontinued Operations, net of tax in Duke Energy's Condensed Consolidated Statements of Operations.



	Six Months Ended June 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	98		$	13		$	111
Total pretax realized or unrealized gains (losses) included in earnings	—			12			12
Purchases, sales, issuances and settlements:
Purchases	16			51			67
Sales	(2		)	—			(2		)
Issuances	—			(1		)	(1		)
Settlements	—			(45		)	(45		)
Transfers out of Level 3 due to observability of inputs	68			(3		)	65
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	8			(5		)	3
Balance at end of period	$	188		$	22		$	210
Pretax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding	$	—		$	(25	)	$	(25	)

Quantitative Information Table - Level 3

The following table includes quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.



	June 30, 2015
Investment Type	Fair Value (in millions)		Valuation Technique	Unobservable Input	Range
Duke Energy
Swing options	1		Discounted cash flow	Forward capacity option curves – price per MMBtu	$	13.85		–	$	113.10
Financial transmission rights (FTRs)	22		RTO auction pricing	FTR price – per MWh	(1.72		)	–	8.85
Total Level 3 derivatives	$	23
Duke Energy Ohio
FTRs	5		RTO auction pricing	FTR price – per MWh	0.07			–	4.09
Duke Energy Indiana
FTRs	$	17	RTO auction pricing	FTR price – per MWh	(1.72		)	–	8.85



	December 31, 2014
Investment Type	Fair Value (in millions)			Valuation Technique	Unobservable Input	Range
Duke Energy
Natural gas contracts	$	(5	)	Discounted cash flow	Forward natural gas curves – price per MMBtu	$	2.12		–	$	4.35
Financial transmission rights (FTRs)	14			RTO auction pricing	FTR price – per MWh	(1.92		)	–	9.86
Electricity contracts	(1		)	Discounted cash flow	Forward electricity curves – price per MWh	25.16			–	51.75
Commodity capacity option contracts	2			Discounted cash flow	Forward capacity option curves – price per MW day	21.00			–	109.00
Commodity contract reserves	(11		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	(1	)
Duke Energy Ohio
Electricity contracts	$	(6	)	Discounted cash flow	Forward electricity curves – price per MWh	25.25			–	51.75
Natural gas contracts	(5		)	Discounted cash flow	Forward natural gas curves – price per MMBtu	2.12			–	4.35
Commodity contract reserves	(7		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	(18	)
Duke Energy Indiana
FTRs	$	14		RTO auction pricing	FTR price – per MWh	(1.92		)	–	9.86

Schedule of Long-term debt, including current

The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.



	June 30, 2015				December 31, 2014
(in millions)	Book Value		Fair Value		Book Value		Fair Value
Duke Energy	$	39,169	$	42,276	$	40,020	$	44,566
Duke Energy Carolinas	8,885		9,695		8,391		9,626
Progress Energy	14,206		15,689		14,754		16,951
Duke Energy Progress	5,657		5,881		6,201		6,696
Duke Energy Florida	4,855		5,507		4,860		5,767
Duke Energy Ohio	1,605		1,760		1,766		1,970
Duke Energy Indiana	3,791		4,259		3,791		4,456

Duke Energy Carolinas [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	2,132		$	1,963	$	1		$	168
Nuclear decommissioning trust fund debt securities	967			158		809			—
Other trading and available-for-sale debt securities	3			—		—			3
Derivative assets	1			—		1			—
Total assets	3,103			2,121		811			171
Derivative liabilities	(19		)	—		(19		)	—
Net assets	$	3,084		$	2,121	$	792		$	171



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	2,162		$	2,005	$	6		$	151
Nuclear decommissioning trust fund debt securities	870			138		732			—
Other trading and available-for-sale debt securities	3			—		—			3
Total assets	3,035			2,143		738			154
Derivative liabilities	(19		)	—		(19		)	—
Net assets	$	3,016		$	2,143	$	719		$	154

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Three Months Ended June 30, 2015
(in millions)	Investments			Derivatives (net)		Total
Balance at beginning of period	$	167		$	—	$	167
Purchases, sales, issuances and settlements:
Purchases	3			—		3
Issuances	(3		)	—		(3		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			—		4
Balance at end of period	$	171		$	—	$	171



	Three Months Ended June 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	82		$	(4	)	$	78
Purchases, sales, issuances and settlements:
Purchases	15			—			15
Sales	(1		)	—			(1		)
Settlements	—			1			1
Transfers out of Level 3 due to observability of inputs	68			—			68
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	7			—			7
Balance at end of period	$	171		$	(3	)	$	168



	Six Months Ended June 30, 2015
(in millions)	Investments			Derivatives (net)		Total
Balance at beginning of period	$	154		$	—	$	154
Purchases, sales, issuances and settlements:
Purchases	12			—		12
Issuances	(4		)	—		(4		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	9			—		9
Balance at end of period	$	171		$	—	$	171



	Six Months Ended June 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	81		$	(2	)	$	79
Purchases, sales, issuances and settlements:
Purchases	16			—			16
Issuances	(2		)	—			(2		)
Settlements	—			(1		)	(1		)
Transfers out of Level 3 to observability of inputs	68			—			68
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	8			—			8
Balance at end of period	$	171		$	(3	)	$	168

Progress Energy [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,522		$	1,522	$	—		$	—
Nuclear decommissioning trust fund debt securities	915			359		556			—
Other trading and available-for-sale debt securities	61			20		41			—
Derivative assets	12			—		12			—
Total assets	2,510			1,901		609			—
Derivative liabilities	(296		)	—		(296		)	—
Net assets	$	2,214		$	1,901	$	313		$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,488		$	1,488	$	—		$	—
Nuclear decommissioning trust fund debt securities	1,029			510		519			—
Other trading and available-for-sale debt securities	58			15		43			—
Derivative assets	4			—		4			—
Total assets	2,579			2,013		566			—
Derivative liabilities	(373		)	—		(373		)	—
Net assets	$	2,206		$	2,013	$	193		$	—

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2015		2014			2015		2014
Balance at beginning of period	$	—	$	(3	)	$	—	$	—
Total pretax realized or unrealized gains included in earnings	—		3			—		—
Transfers out of Level 3 due to observability of inputs	—		2			—		2
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	—		(2		)	—		(2		)
Balance at end of period	$	—	$	—		$	—	$	—

Duke Energy Progress [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,198		$	1,198	$	—		$	—
Nuclear decommissioning trust fund debt securities	540			121		419			—
Other trading and available-for-sale debt securities	1			1		—			—
Derivative assets	2			—		2			—
Total assets	1,741			1,320		421			—
Derivative liabilities	(96		)	—		(96		)	—
Net assets	$	1,645		$	1,320	$	325		$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,171		$	1,171	$	—		$	—
Nuclear decommissioning trust fund debt securities	540			151		389			—
Total assets	1,711			1,322		389			—
Derivative liabilities	(132		)	—		(132		)	—
Net assets	$	1,579		$	1,322	$	257		$	—

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2015		2014			2015		2014
Balance at beginning of period	$	—	$	(3	)	$	—	$	—
Total pretax realized or unrealized gains included in earnings	—		3			—		—
Balance at end of period	$	—	$	—		$	—	$	—

Duke Energy Florida [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	324		$	324	$	—		$	—
Nuclear decommissioning trust fund debt securities and other	375			238		137			—
Other trading and available-for-sale debt securities and other	49			9		40			—
Derivative assets	10			—		10			—
Total assets	758			571		187			—
Derivative liabilities	(195		)	—		(195		)	—
Net assets (liabilities)	$	563		$	571	$	(8	)	$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	317		$	317	$	—		$	—
Nuclear decommissioning trust fund debt securities and other	489			359		130			—
Other trading and available-for-sale debt securities and other	44			—		44			—
Derivative assets	4			—		4			—
Total assets	854			676		178			—
Derivative liabilities	(241		)	—		(241		)	—
Net assets (liabilities)	$	613		$	676	$	(63	)	$	—

Duke Energy Ohio [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Derivative assets	$	5		$	—	$	—		$	5
Derivative liabilities	(6		)	—		(6		)	—
Net liabilities	$	(1	)	$	—	$	(6	)	$	5



	December 31, 2014
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Derivative assets	$	49		$	20		$	9		$	20
Derivative liabilities	(181		)	(117		)	(26		)	(38		)
Net liabilities	$	(132	)	$	(97	)	$	(17	)	$	(18	)

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2015			2014			2015			2014
Balance at beginning of period	$	7		$	(19	)	$	(18	)	$	(4	)
Total pretax realized or unrealized gains (losses) included in earnings^(a)	(4		)	(13		)	21			(19		)
Purchases, sales, issuances and settlements:
Purchases	—			1			—			1
Sales	5			—			5			—
Settlements	(3		)	—			(3		)	(4		)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	—			2			—			2
Transfers out of Level 3 due to observability of inputs	—			1			—			(4		)
Balance at end of period	$	5		$	(28	)	$	5		$	(28	)
Pretax amounts included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to Level 3 measurements outstanding at June 30, 2014	$	—		$	—		$	—		(27		)


(a)	Includes amounts related to nonregulated operations and classified as (Loss) Income From Discontinued Operations, net of tax in Duke Energy Ohio's Condensed Consolidated Statements of Operations and Comprehensive Income.

Duke Energy Indiana [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	June 30, 2015
(in millions)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale equity securities	$	73	$	73	$	—	$	—
Available-for-sale debt securities	30		—		30		—
Derivative assets	18		1		—		17
Net assets	$	121	$	74	$	30	$	17



	December 31, 2014
(in millions)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale equity securities	$	71	$	71	$	—	$	—
Available-for-sale debt securities	30		—		30		—
Derivative assets	14		—		—		14
Net assets	$	115	$	71	$	30	$	14

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2015			2014			2015			2014
Balance at beginning of period	$	3		$	7		$	14		$	12
Total pretax realized or unrealized gains (losses) included in earnings	—			—			—			27
Purchases, sales, issuances and settlements:
Purchases	18			49			18			49
Settlements	(10		)	(7		)	(19		)	(38		)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	6			(4		)	4			(5		)
Balance at end of period	$	17		$	45		$	17		$	45