Fair Value Measurements (Tables)

9 Months Ended

Sep. 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.



	September 30, 2015
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	3,396		$	3,224		$	1		$	171
Nuclear decommissioning trust fund debt securities	2,166			557			1,609			—
Other trading and available-for-sale equity securities	90			90			—			—
Other trading and available-for-sale debt securities	324			85			234			5
Derivative assets	33			—			16			17
Total assets	6,009			3,956			1,860			193
Derivative liabilities	(406		)	(4		)	(402		)	—
Net assets	$	5,603		$	3,952		$	1,458		$	193



	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 September 30, 2015
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	173		$	23		$	196
Purchases, sales, issuances and settlements:
Purchases	2			—			2
Sales	(3		)	—			(3		)
Settlements	—			(6		)	(6		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			—			4
Balance at end of period	$	176		$	17		$	193



	Three Months Ended September 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	188		$	22		$	210
Total pretax realized or unrealized gains (losses) included in earnings	—			(33		)	(33		)
Purchases, sales, issuances and settlements:
Purchases	13			(1		)	12
Sales	(13		)	—			(13		)
Issuances	—			1			1
Transfers out of Level 3 due to observability of inputs	—			(1		)	(1		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			(10		)	(6		)
Balance at end of period	$	192		$	(22	)	$	170
Pretax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding	$	—		$	(49	)	$	(49	)



	Nine Months Ended September 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	14			24			38
Sales	(7		)	—			(7		)
Settlements	—			(28		)	(28		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	13			4			17
Balance at end of period	$	176		$	17		$	193


(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.



	Nine Months Ended September 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	—			(21		)	(21		)
Purchases, sales, issuances and settlements:
Purchases	29			50			79
Sales	(15		)	—			(15		)
Settlements	—			(45		)	(45		)
Transfers out of Level 3 due to observability of inputs	68			(4		)	64
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	12			(15		)	(3		)
Balance at end of period	$	192		$	(22	)	$	170
Pretax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding	$	—		$	(49	)	$	(49	)

Quantitative Information Table - Level 3

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



	September 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	$	18.50		–	$	84.35
Financial transmission rights (FTRs)	16		RTO auction pricing	FTR price – per MWh	(0.81		)	–	7.23
Total Level 3 derivatives	$	17
Duke Energy Ohio
FTRs	4		RTO auction pricing	FTR price – per MWh	0.37			–	2.17
Duke Energy Indiana
FTRs	$	12	RTO auction pricing	FTR price – per MWh	(0.81		)	–	7.23



	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.



	September 30, 2015				December 31, 2014
(in millions)	Book Value		Fair Value		Book Value		Fair Value
Duke Energy	$	40,203	$	43,864	$	40,020	$	44,566
Duke Energy Carolinas	8,884		9,860		8,391		9,626
Progress Energy	15,396		17,146		14,754		16,951
Duke Energy Progress	6,851		7,214		6,201		6,696
Duke Energy Florida	4,850		5,585		4,860		5,767
Duke Energy Ohio	1,605		1,766		1,766		1,970
Duke Energy Indiana	3,790		4,330		3,791		4,456

Duke Energy Carolinas [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	September 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,990		$	1,818	$	1		$	171
Nuclear decommissioning trust fund debt securities	960			203		757			—
Other trading and available-for-sale debt securities	3			—		—			3
Total assets	2,953			2,021		758			174
Derivative liabilities	(33		)	—		(33		)	—
Net assets	$	2,920		$	2,021	$	725		$	174



	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 September 30, 2015
(in millions)	Investments			Derivatives (net)		Total
Balance at beginning of period	$	171		$	—	$	171
Purchases, sales, issuances and settlements:
Purchases	2			—		2
Sales	(3		)	—		(3		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			—		4
Balance at end of period	$	174		$	—	$	174



	Three Months Ended September 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	171		$	(3	)	$	168
Purchases, sales, issuances and settlements:
Purchases	13			—			13
Sales	(13		)	—			(13		)
Settlements	—			3			3
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	4			—			4
Balance at end of period	$	175		$	—		$	175



	Nine Months Ended September 30, 2015
(in millions)	Investments			Derivatives (net)		Total
Balance at beginning of period	$	154		$	—	$	154
Purchases, sales, issuances and settlements:
Purchases	14			—		14
Sales	(7		)	—		(7		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	13			—		13
Balance at end of period	$	174		$	—	$	174



	Nine Months Ended September 30, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	81		$	(2	)	$	79
Purchases, sales, issuances and settlements:
Purchases	29			—			29
Sales	(15		)	—			(15		)
Settlements	—			2			2
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	12			—			12
Balance at end of period	$	175		$	—		$	175

Progress Energy [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	September 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,406		$	1,406	$	—		$	—
Nuclear decommissioning trust fund debt securities	1,206			354		852			—
Other trading and available-for-sale debt securities	66			23		43			—
Derivative assets	13			—		13			—
Total assets	2,691			1,783		908			—
Derivative liabilities	(309		)	—		(309		)	—
Net assets	$	2,382		$	1,783	$	599		$	—



	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

Duke Energy Progress [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	September 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,107		$	1,107	$	—		$	—
Nuclear decommissioning trust fund debt securities	836			136		700			—
Other trading and available-for-sale debt securities	1			1		—			—
Derivative assets	2			—		2			—
Total assets	1,946			1,244		702			—
Derivative liabilities	(95		)	—		(95		)	—
Net assets	$	1,851		$	1,244	$	607		$	—



	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

Duke Energy Florida [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	September 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	299		$	299	$	—		$	—
Nuclear decommissioning trust fund debt securities and other	370			219		151			—
Other trading and available-for-sale debt securities and other	54			11		43			—
Derivative assets	11			—		11			—
Total assets	734			529		205			—
Derivative liabilities	(209		)	—		(209		)	—
Net assets (liabilities)	$	525		$	529	$	(4	)	$	—



	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



	September 30, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Derivative assets	$	4		$	—	$	—		$	4
Derivative liabilities	(7		)	—		(7		)	—
Net liabilities	$	(3	)	$	—	$	(7	)	$	4



	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						Nine Months Ended
	September 30,						September 30,
(in millions)	2015			2014			2015			2014
Balance at beginning of period	$	5		$	(28	)	$	(18	)	$	(4	)
Total pretax realized or unrealized gains (losses) included in earnings^(a)	—			(24		)	21			(43		)
Purchases, sales, issuances and settlements:
Purchases	5			—			5			1
Sales	(5		)	—			—			—
Settlements	(1		)	(2		)	(4		)	(6		)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	—			(1		)	—			1
Transfers out of Level 3 due to observability of inputs	—			—			—			(4		)
Balance at end of period	$	4		$	(55	)	$	4		$	(55	)
Pretax amounts included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to Level 3 measurements outstanding at September 30, 2014	$	—		$	—		$	—		(52		)


(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



	September 30, 2015
(in millions)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale equity securities	$	67	$	67	$	—	$	—
Available-for-sale debt securities	30		—		30		—
Derivative assets	12		—		—		12
Net assets	$	109	$	67	$	30	$	12



	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						Nine Months Ended
	September 30,						September 30,
(in millions)	2015			2014			2015			2014
Balance at beginning of period	$	17		$	45		$	14		$	12
Total pretax realized or unrealized gains (losses) included in earnings	—			(13		)	—			14
Purchases, sales, issuances and settlements:
Purchases	1			—			19			49
Settlements	(6		)	—			(25		)	(38		)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	—			(10		)	4			(15		)
Balance at end of period	$	12		$	22		$	12		$	22