ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices and Telephone Number | IRS Employer Identification No. |
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1-32853 | DUKE ENERGY CORPORATION (a Delaware corporation) 550 South Tryon Street Charlotte, North Carolina 28202-1803 704-382-3853 | 20-2777218 |
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number and IRS Employer Identification Number | Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number and IRS Employer Identification Number | |
1-4928 | DUKE ENERGY CAROLINAS, LLC (a North Carolina limited liability company) 526 South Church Street Charlotte, North Carolina 28202-1803 704-382-3853 56-0205520 | 1-3274 | DUKE ENERGY FLORIDA, LLC (a Florida limited liability company) 299 First Avenue North St. Petersburg, Florida 33701 704-382-3853 59-0247770 | |
1-15929 | PROGRESS ENERGY, INC. (a North Carolina corporation) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 56-2155481 | 1-1232 | DUKE ENERGY OHIO, INC. (an Ohio corporation) 139 East Fourth Street Cincinnati, Ohio 45202 704-382-3853 31-0240030 | |
1-3382 | DUKE ENERGY PROGRESS, LLC (a North Carolina limited liability company) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 56-0165465 | 1-3543 | DUKE ENERGY INDIANA, LLC (an Indiana limited liability company) 1000 East Main Street Plainfield, Indiana 46168 704-382-3853 35-0594457 | |
1-6196 | PIEDMONT NATURAL GAS COMPANY, INC. (a North Carolina corporation) 4720 Piedmont Row Drive Charlotte, North Carolina 28210 704-364-3120 56-0556998 |
Duke Energy Corporation (Duke Energy) | Yes x | No ¨ | Duke Energy Florida, LLC (Duke Energy Florida) | Yes x | No ¨ | |
Duke Energy Carolinas, LLC (Duke Energy Carolinas) | Yes x | No ¨ | Duke Energy Ohio, Inc. (Duke Energy Ohio) | Yes x | No ¨ | |
Progress Energy, Inc. (Progress Energy) | Yes x | No ¨ | Duke Energy Indiana, LLC (Duke Energy Indiana) | Yes x | No ¨ | |
Duke Energy Progress, LLC (Duke Energy Progress) | Yes x | No ¨ | Piedmont Natural Gas Company, Inc. (Piedmont) | Yes x | No ¨ |
Duke Energy | Yes x | No ¨ | Duke Energy Florida | Yes x | No ¨ | |
Duke Energy Carolinas | Yes x | No ¨ | Duke Energy Ohio | Yes x | No ¨ | |
Progress Energy | Yes x | No ¨ | Duke Energy Indiana | Yes x | No ¨ | |
Duke Energy Progress | Yes x | No ¨ | Piedmont | Yes x | No ¨ |
Duke Energy | Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy Carolinas | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Progress Energy | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy Progress | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy Florida | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy Ohio | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy Indiana | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Piedmont | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | Emerging Growth Company ¨ |
Duke Energy | Yes ¨ | No x | Duke Energy Florida | Yes ¨ | No x | |
Duke Energy Carolinas | Yes ¨ | No x | Duke Energy Ohio | Yes ¨ | No x | |
Progress Energy | Yes ¨ | No x | Duke Energy Indiana | Yes ¨ | No x | |
Duke Energy Progress | Yes ¨ | No x | Piedmont | Yes ¨ | No x |
Registrant | Description | Shares |
Duke Energy | Common stock, $0.001 par value | 699,950,383 |
PART I. FINANCIAL INFORMATION | ||
Piedmont Natural Gas Company, Inc. Financial Statements | ||
Note 1 – Organization and Basis of Presentation | ||
Note 2 – Acquisitions and Dispositions | ||
Note 3 – Business Segments | ||
Note 4 – Regulatory Matters | ||
Note 5 – Commitments and Contingencies | ||
Note 6 – Debt and Credit Facilities | ||
Note 7 – Goodwill and Intangible Assets | ||
Note 8 – Related Party Transactions | ||
Note 9 – Derivatives and Hedging | ||
Note 10 – Investments in Debt and Equity Securities | ||
Note 11 – Fair Value Measurements | ||
Note 12 – Variable Interest Entities | ||
Note 13 – Common Stock | ||
Note 14 – Stock-Based Compensation | ||
Note 15 – Employee Benefit Plans | ||
Note 16 – Income Taxes | ||
Note 17 – Subsequent Events | ||
PART II. OTHER INFORMATION | ||
◦ | State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; |
◦ | The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate; |
◦ | The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process; |
◦ | The costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; |
◦ | Costs and effects of legal and administrative proceedings, settlements, investigations and claims; |
◦ | Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies; |
◦ | Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs; |
◦ | Advancements in technology; |
◦ | Additional competition in electric and natural gas markets and continued industry consolidation; |
◦ | The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change; |
◦ | The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; |
◦ | The ability to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business; |
◦ | Operational interruptions to our gas distribution and transmission activities; |
◦ | The availability of adequate interstate pipeline transportation capacity and natural gas supply; |
◦ | The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events such as fires, explosions, pandemic health events or other similar occurrences; |
◦ | The inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers; |
◦ | The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; |
◦ | The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, and general economic conditions; |
◦ | Credit ratings of the Duke Energy Registrants may be different from what is expected; |
◦ | Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds; |
◦ | Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all; |
◦ | Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; |
◦ | The ability to control operation and maintenance costs; |
◦ | The level of creditworthiness of counterparties to transactions; |
◦ | Employee workforce factors, including the potential inability to attract and retain key personnel; |
◦ | The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); |
◦ | The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; |
◦ | The effect of accounting pronouncements issued periodically by accounting standard-setting bodies; |
◦ | Substantial revision to the U.S. tax code, such as changes to the corporate tax rate or material change in the deductibility of interest; |
◦ | The impact of potential goodwill impairments; |
◦ | The ability to successfully complete future merger, acquisition or divestiture plans; |
◦ | The ability to successfully integrate the natural gas businesses following the acquisition of Piedmont Natural Gas Company, Inc. and realize anticipated benefits; and |
◦ | The ability to implement our business strategy. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions, except per-share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | |||||||||||||||
Regulated electric | $ | 5,118 | $ | 4,965 | $ | 10,031 | $ | 10,018 | |||||||
Regulated natural gas | 275 | 97 | 921 | 266 | |||||||||||
Nonregulated electric and other | 162 | 151 | 332 | 306 | |||||||||||
Total operating revenues | 5,555 | 5,213 | 11,284 | 10,590 | |||||||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 1,541 | 1,521 | 2,990 | 3,109 | |||||||||||
Cost of natural gas | 76 | 9 | 334 | 58 | |||||||||||
Operation, maintenance and other | 1,407 | 1,351 | 2,840 | 2,767 | |||||||||||
Depreciation and amortization | 835 | 790 | 1,694 | 1,583 | |||||||||||
Property and other taxes | 307 | 290 | 611 | 585 | |||||||||||
Impairment charges | 9 | 1 | 9 | 4 | |||||||||||
Total operating expenses | 4,175 | 3,962 | 8,478 | 8,106 | |||||||||||
Gains on Sales of Other Assets and Other, net | 7 | 8 | 18 | 15 | |||||||||||
Operating Income | 1,387 | 1,259 | 2,824 | 2,499 | |||||||||||
Other Income and Expenses | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 36 | 15 | 65 | 23 | |||||||||||
Other income and expenses, net | 81 | 81 | 167 | 151 | |||||||||||
Total other income and expenses | 117 | 96 | 232 | 174 | |||||||||||
Interest Expense | 486 | 478 | 977 | 967 | |||||||||||
Income From Continuing Operations Before Income Taxes | 1,018 | 877 | 2,079 | 1,706 | |||||||||||
Income Tax Expense from Continuing Operations | 327 | 253 | 671 | 505 | |||||||||||
Income From Continuing Operations | 691 | 624 | 1,408 | 1,201 | |||||||||||
(Loss) Income From Discontinued Operations, net of tax | (2 | ) | (112 | ) | (2 | ) | 10 | ||||||||
Net Income | 689 | 512 | 1,406 | 1,211 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 3 | 4 | 8 | |||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 686 | $ | 509 | $ | 1,402 | $ | 1,203 | |||||||
Earnings Per Share – Basic and Diluted | |||||||||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.98 | $ | 0.90 | $ | 2.00 | $ | 1.73 | |||||||
Diluted | $ | 0.98 | $ | 0.90 | $ | 2.00 | $ | 1.73 | |||||||
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | — | $ | (0.16 | ) | $ | — | $ | 0.01 | ||||||
Diluted | $ | — | $ | (0.16 | ) | $ | — | $ | 0.01 | ||||||
Net income attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.98 | $ | 0.74 | $ | 2.00 | $ | 1.74 | |||||||
Diluted | $ | 0.98 | $ | 0.74 | $ | 2.00 | $ | 1.74 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 700 | 689 | 700 | 689 | |||||||||||
Diluted | 700 | 690 | 700 | 689 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | 689 | $ | 512 | $ | 1,406 | $ | 1,211 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Foreign currency translation adjustments | — | 58 | — | 107 | |||||||||||
Pension and OPEB adjustments | 1 | 2 | 2 | 2 | |||||||||||
Net unrealized losses on cash flow hedges | (6 | ) | (11 | ) | (4 | ) | (25 | ) | |||||||
Reclassification into earnings from cash flow hedges | 4 | — | 5 | 2 | |||||||||||
Unrealized gains on available-for-sale securities | 4 | 3 | 8 | 7 | |||||||||||
Other Comprehensive Income, net of tax | 3 | 52 | 11 | 93 | |||||||||||
Comprehensive Income | 692 | 564 | 1,417 | 1,304 | |||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interests | 3 | 6 | 4 | 12 | |||||||||||
Comprehensive Income Attributable to Duke Energy Corporation | $ | 689 | $ | 558 | $ | 1,413 | $ | 1,292 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 298 | $ | 392 | |||
Receivables (net of allowance for doubtful accounts of $13 at 2017 and $14 at 2016) | 498 | 751 | |||||
Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2017 and $54 at 2016) | 1,880 | 1,893 | |||||
Inventory | 3,369 | 3,522 | |||||
Regulatory assets (includes $52 at 2017 and $50 at 2016 related to VIEs) | 1,192 | 1,023 | |||||
Other | 436 | 458 | |||||
Total current assets | 7,673 | 8,039 | |||||
Property, Plant and Equipment | |||||||
Cost | 124,439 | 121,397 | |||||
Accumulated depreciation and amortization | (40,522 | ) | (39,406 | ) | |||
Generation facilities to be retired, net | 487 | 529 | |||||
Net property, plant and equipment | 84,404 | 82,520 | |||||
Other Noncurrent Assets | |||||||
Goodwill | 19,425 | 19,425 | |||||
Regulatory assets (includes $1,121 at 2017 and $1,142 at 2016 related to VIEs) | 12,808 | 12,878 | |||||
Nuclear decommissioning trust funds | 6,601 | 6,205 | |||||
Investments in equity method unconsolidated affiliates | 1,267 | 925 | |||||
Other | 2,826 | 2,769 | |||||
Total other noncurrent assets | 42,927 | 42,202 | |||||
Total Assets | $ | 135,004 | $ | 132,761 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 2,177 | $ | 2,994 | |||
Notes payable and commercial paper | 3,488 | 2,487 | |||||
Taxes accrued | 432 | 384 | |||||
Interest accrued | 506 | 503 | |||||
Current maturities of long-term debt (includes $212 at 2017 and $260 at 2016 related to VIEs) | 3,472 | 2,319 | |||||
Asset retirement obligations | 397 | 411 | |||||
Regulatory liabilities | 286 | 409 | |||||
Other | 1,708 | 2,044 | |||||
Total current liabilities | 12,466 | 11,551 | |||||
Long-Term Debt (includes $4,018 at 2017 and $3,587 at 2016 related to VIEs) | 46,043 | 45,576 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 14,695 | 14,155 | |||||
Asset retirement obligations | 10,165 | 10,200 | |||||
Regulatory liabilities | 7,048 | 6,881 | |||||
Accrued pension and other post-retirement benefit costs | 1,108 | 1,111 | |||||
Investment tax credits | 534 | 493 | |||||
Other | 1,651 | 1,753 | |||||
Total other noncurrent liabilities | 35,201 | 34,593 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, $0.001 par value, 2 billion shares authorized; 700 million shares outstanding at 2017 and 2016 | 1 | 1 | |||||
Additional paid-in capital | 38,758 | 38,741 | |||||
Retained earnings | 2,607 | 2,384 | |||||
Accumulated other comprehensive loss | (82 | ) | (93 | ) | |||
Total Duke Energy Corporation stockholders' equity | 41,284 | 41,033 | |||||
Noncontrolling interests | 10 | 8 | |||||
Total equity | 41,294 | 41,041 | |||||
Total Liabilities and Equity | $ | 135,004 | $ | 132,761 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 1,406 | $ | 1,211 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | 1,953 | 1,868 | |||||
Equity component of AFUDC | (125 | ) | (87 | ) | |||
Gains on sales of other assets | (20 | ) | (18 | ) | |||
Impairment charges | 9 | 198 | |||||
Deferred income taxes | 669 | 285 | |||||
Equity in earnings of unconsolidated affiliates | (65 | ) | (23 | ) | |||
Accrued pension and other post-retirement benefit costs | 13 | 8 | |||||
Payments for asset retirement obligations | (272 | ) | (263 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | (12 | ) | 199 | ||||
Receivables | 293 | (38 | ) | ||||
Inventory | 153 | 178 | |||||
Other current assets | (148 | ) | (51 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | (505 | ) | (153 | ) | |||
Taxes accrued | 41 | 216 | |||||
Other current liabilities | (531 | ) | (281 | ) | |||
Other assets | (101 | ) | (9 | ) | |||
Other liabilities | (2 | ) | (15 | ) | |||
Net cash provided by operating activities | 2,756 | 3,225 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (3,931 | ) | (3,393 | ) | |||
Contributions to equity method investments | (287 | ) | (136 | ) | |||
Purchases of available-for-sale securities | (2,412 | ) | (3,033 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 2,439 | 3,059 | |||||
Change in restricted cash | (44 | ) | (21 | ) | |||
Other | (89 | ) | (84 | ) | |||
Net cash used in investing activities | (4,324 | ) | (3,608 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the: | |||||||
Issuance of long-term debt | 2,734 | 3,514 | |||||
Issuance of common stock related to employee benefit plans | — | 7 | |||||
Payments for the redemption of long-term debt | (1,009 | ) | (795 | ) | |||
Proceeds from the issuance of short-term debt with original maturities greater than 90 days | 230 | 500 | |||||
Payments for the redemption of short-term debt with original maturities greater than 90 days | (32 | ) | (492 | ) | |||
Notes payable and commercial paper | 783 | (1,349 | ) | ||||
Dividends paid | (1,200 | ) | (1,140 | ) | |||
Other | (32 | ) | (43 | ) | |||
Net cash provided by financing activities | 1,474 | 202 | |||||
Changes in cash and cash equivalents associated with assets held for sale | — | 79 | |||||
Net decrease in cash and cash equivalents | (94 | ) | (102 | ) | |||
Cash and cash equivalents at beginning of period | 392 | 383 | |||||
Cash and cash equivalents at end of period | $ | 298 | $ | 281 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 589 | $ | 670 |
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||
Net Unrealized | Total | |||||||||||||||||||||||||||||||||||||||||
Foreign | Net | (Losses) Gains | Duke Energy | |||||||||||||||||||||||||||||||||||||||
Common | Additional | Currency | Losses on | on Available- | Pension and | Corporation | ||||||||||||||||||||||||||||||||||||
Stock | Common | Paid-in | Retained | Translation | Cash Flow | for-Sale- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||||||||||
(in millions) | Shares | Stock | Capital | Earnings | Adjustments | Hedges | Securities | Adjustments | Equity | Interests | Equity | |||||||||||||||||||||||||||||||
Balance at December 31, 2015 | 688 | $ | 1 | $ | 37,968 | $ | 2,564 | $ | (692 | ) | $ | (50 | ) | $ | (3 | ) | $ | (61 | ) | $ | 39,727 | $ | 44 | $ | 39,771 | |||||||||||||||||
Net income | — | — | — | 1,203 | — | — | — | — | 1,203 | 8 | 1,211 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 103 | (23 | ) | 7 | 2 | 89 | 4 | 93 | ||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | 1 | — | 16 | — | — | — | — | — | 16 | — | 16 | |||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (1,140 | ) | — | — | — | — | (1,140 | ) | — | (1,140 | ) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||
Balance at June 30, 2016 | 689 | $ | 1 | $ | 37,984 | $ | 2,627 | $ | (589 | ) | $ | (73 | ) | $ | 4 | $ | (59 | ) | $ | 39,895 | $ | 53 | $ | 39,948 | ||||||||||||||||||
Balance at December 31, 2016 | 700 | $ | 1 | $ | 38,741 | $ | 2,384 | $ | — | $ | (20 | ) | $ | (1 | ) | $ | (72 | ) | $ | 41,033 | $ | 8 | $ | 41,041 | ||||||||||||||||||
Net income | — | — | — | 1,402 | — | — | — | — | 1,402 | 4 | 1,406 | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 1 | 8 | 2 | 11 | — | 11 | |||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | — | — | 17 | — | — | — | — | — | 17 | — | 17 | |||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (1,200 | ) | — | — | — | — | (1,200 | ) | — | (1,200 | ) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||
Other(a) | — | — | — | 21 | — | — | — | — | 21 | — | 21 | |||||||||||||||||||||||||||||||
Balance at June 30, 2017 | 700 | $ | 1 | $ | 38,758 | $ | 2,607 | $ | — | $ | (19 | ) | $ | 7 | $ | (70 | ) | $ | 41,284 | $ | 10 | $ | 41,294 |
(a) | Cumulative-effect adjustment due to implementation of a new accounting standard related to stock-based compensation and the associated income taxes. See Note 1 for more information. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | $ | 1,729 | $ | 1,675 | $ | 3,445 | $ | 3,415 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 435 | 389 | 863 | 810 | |||||||||||
Operation, maintenance and other | 469 | 476 | 951 | 988 | |||||||||||
Depreciation and amortization | 269 | 275 | 523 | 534 | |||||||||||
Property and other taxes | 71 | 71 | 139 | 138 | |||||||||||
Total operating expenses | 1,244 | 1,211 | 2,476 | 2,470 | |||||||||||
Operating Income | 485 | 464 | 969 | 945 | |||||||||||
Other Income and Expenses, net | 36 | 45 | 73 | 82 | |||||||||||
Interest Expense | 103 | 107 | 206 | 214 | |||||||||||
Income Before Income Taxes | 418 | 402 | 836 | 813 | |||||||||||
Income Tax Expense | 145 | 141 | 293 | 281 | |||||||||||
Net Income | $ | 273 | $ | 261 | $ | 543 | $ | 532 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Reclassification into earnings from cash flow hedges | 1 | — | 1 | 1 | |||||||||||
Comprehensive Income | $ | 274 | $ | 261 | $ | 544 | $ | 533 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 16 | $ | 14 | |||
Receivables (net of allowance for doubtful accounts of $2 at 2017 and 2016) | 165 | 160 | |||||
Receivables of VIEs (net of allowance for doubtful accounts of $7 at 2017 and 2016) | 611 | 645 | |||||
Receivables from affiliated companies | 85 | 163 | |||||
Notes receivable from affiliated companies | — | 66 | |||||
Inventory | 1,066 | 1,055 | |||||
Regulatory assets | 249 | 238 | |||||
Other | 34 | 37 | |||||
Total current assets | 2,226 | 2,378 | |||||
Property, Plant and Equipment | |||||||
Cost | 41,881 | 41,127 | |||||
Accumulated depreciation and amortization | (14,632 | ) | (14,365 | ) | |||
Net property, plant and equipment | 27,249 | 26,762 | |||||
Other Noncurrent Assets | |||||||
Regulatory assets | 3,060 | 3,159 | |||||
Nuclear decommissioning trust funds | 3,499 | 3,273 | |||||
Other | 929 | 943 | |||||
Total other noncurrent assets | 7,488 | 7,375 | |||||
Total Assets | $ | 36,963 | $ | 36,515 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 639 | $ | 833 | |||
Accounts payable to affiliated companies | 127 | 247 | |||||
Notes payable to affiliated companies | 534 | — | |||||
Taxes accrued | 162 | 143 | |||||
Interest accrued | 104 | 102 | |||||
Current maturities of long-term debt | 704 | 116 | |||||
Asset retirement obligations | 227 | 222 | |||||
Regulatory liabilities | 115 | 161 | |||||
Other | 409 | 468 | |||||
Total current liabilities | 3,021 | 2,292 | |||||
Long-Term Debt | 8,520 | 9,187 | |||||
Long-Term Debt Payable to Affiliated Companies | 300 | 300 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 6,742 | 6,544 | |||||
Asset retirement obligations | 3,644 | 3,673 | |||||
Regulatory liabilities | 2,885 | 2,840 | |||||
Accrued pension and other post-retirement benefit costs | 103 | 97 | |||||
Investment tax credits | 235 | 203 | |||||
Other | 574 | 607 | |||||
Total other noncurrent liabilities | 14,183 | 13,964 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Member's equity | 10,947 | 10,781 | |||||
Accumulated other comprehensive loss | (8 | ) | (9 | ) | |||
Total equity | 10,939 | 10,772 | |||||
Total Liabilities and Equity | $ | 36,963 | $ | 36,515 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 543 | $ | 532 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amortization of nuclear fuel) | 688 | 673 | |||||
Equity component of AFUDC | (59 | ) | (48 | ) | |||
Deferred income taxes | 283 | 273 | |||||
Accrued pension and other post-retirement benefit costs | — | 2 | |||||
Payments for asset retirement obligations | (123 | ) | (118 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | 24 | 3 | |||||
Receivables | 36 | (48 | ) | ||||
Receivables from affiliated companies | 78 | 36 | |||||
Inventory | (14 | ) | 102 | ||||
Other current assets | (21 | ) | 24 | ||||
Increase (decrease) in | |||||||
Accounts payable | (125 | ) | (226 | ) | |||
Accounts payable to affiliated companies | (120 | ) | (56 | ) | |||
Taxes accrued | 19 | 188 | |||||
Other current liabilities | (140 | ) | 28 | ||||
Other assets | (44 | ) | 22 | ||||
Other liabilities | (15 | ) | (14 | ) | |||
Net cash provided by operating activities | 1,010 | 1,373 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (1,092 | ) | (1,031 | ) | |||
Purchases of available-for-sale securities | (1,225 | ) | (1,395 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 1,228 | 1,395 | |||||
Notes receivable from affiliated companies | 66 | (89 | ) | ||||
Other | (29 | ) | (41 | ) | |||
Net cash used in investing activities | (1,052 | ) | (1,161 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | — | 992 | |||||
Payments for the redemption of long-term debt | (114 | ) | (1 | ) | |||
Notes payable to affiliated companies | 534 | — | |||||
Distributions to parent | (375 | ) | (1,200 | ) | |||
Other | (1 | ) | — | ||||
Net cash provided by (used in) financing activities | 44 | (209 | ) | ||||
Net increase in cash and cash equivalents | 2 | 3 | |||||
Cash and cash equivalents at beginning of period | 14 | 13 | |||||
Cash and cash equivalents at end of period | $ | 16 | $ | 16 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 200 | $ | 228 |
Accumulated Other | |||||||||||
Comprehensive | |||||||||||
Loss | |||||||||||
Net Losses on | |||||||||||
Member's | Cash Flow | Total | |||||||||
(in millions) | Equity | Hedges | Equity | ||||||||
Balance at December 31, 2015 | $ | 11,617 | $ | (11 | ) | $ | 11,606 | ||||
Net income | 532 | — | 532 | ||||||||
Other comprehensive income | — | 1 | 1 | ||||||||
Distributions to parent | (1,200 | ) | — | (1,200 | ) | ||||||
Balance at June 30, 2016 | $ | 10,949 | $ | (10 | ) | $ | 10,939 | ||||
Balance at December 31, 2016 | $ | 10,781 | $ | (9 | ) | $ | 10,772 | ||||
Net income | 543 | — | 543 | ||||||||
Other comprehensive income | — | 1 | 1 | ||||||||
Distributions to parent | (375 | ) | — | (375 | ) | ||||||
Other | (2 | ) | — | (2 | ) | ||||||
Balance at June 30, 2017 | $ | 10,947 | $ | (8 | ) | $ | 10,939 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | $ | 2,392 | $ | 2,348 | $ | 4,571 | $ | 4,680 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 831 | 852 | 1,557 | 1,712 | |||||||||||
Operation, maintenance and other | 534 | 525 | 1,078 | 1,117 | |||||||||||
Depreciation and amortization | 311 | 296 | 624 | 586 | |||||||||||
Property and other taxes | 129 | 120 | 246 | 239 | |||||||||||
Impairment charges | 2 | 1 | 2 | 3 | |||||||||||
Total operating expenses | 1,807 | 1,794 | 3,507 | 3,657 | |||||||||||
Gains on Sales of Other Assets and Other, net | 6 | 6 | 14 | 12 | |||||||||||
Operating Income | 591 | 560 | 1,078 | 1,035 | |||||||||||
Other Income and Expenses, net | 21 | 28 | 45 | 48 | |||||||||||
Interest Expense | 196 | 160 | 402 | 320 | |||||||||||
Income Before Income Taxes | 416 | 428 | 721 | 763 | |||||||||||
Income Tax Expense | 139 | 154 | 243 | 277 | |||||||||||
Net Income | 277 | 274 | 478 | 486 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 2 | 5 | 5 | |||||||||||
Net Income Attributable to Parent | $ | 274 | $ | 272 | $ | 473 | $ | 481 | |||||||
Net Income | $ | 277 | $ | 274 | $ | 478 | $ | 486 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Pension and OPEB adjustments | 1 | 1 | 2 | 2 | |||||||||||
Net unrealized gain on cash flow hedges | 5 | — | 6 | — | |||||||||||
Reclassification into earnings from cash flow hedges | — | 2 | — | 3 | |||||||||||
Unrealized gains on available-for-sale securities | 1 | — | 2 | 1 | |||||||||||
Other Comprehensive Income, net of tax | 7 | 3 | 10 | 6 | |||||||||||
Comprehensive Income | 284 | 277 | 488 | 492 | |||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interests | 3 | 2 | 5 | 5 | |||||||||||
Comprehensive Income Attributable to Parent | $ | 281 | $ | 275 | $ | 483 | $ | 487 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 39 | $ | 46 | |||
Receivables (net of allowance for doubtful accounts of $4 at 2017 and $6 at 2016) | 95 | 114 | |||||
Receivables of VIEs (net of allowance for doubtful accounts of $7 at 2017 and 2016) | 777 | 692 | |||||
Receivables from affiliated companies | 3 | 106 | |||||
Notes receivable from affiliated companies | 140 | 80 | |||||
Inventory | 1,621 | 1,717 | |||||
Regulatory assets (includes $52 at 2017 and $50 at 2016 related to VIEs) | 533 | 401 | |||||
Other | 196 | 148 | |||||
Total current assets | 3,404 | 3,304 | |||||
Property, Plant and Equipment | |||||||
Cost | 46,317 | 44,864 | |||||
Accumulated depreciation and amortization | (15,652 | ) | (15,212 | ) | |||
Generation facilities to be retired, net | 487 | 529 | |||||
Net property, plant and equipment | 31,152 | 30,181 | |||||
Other Noncurrent Assets | |||||||
Goodwill | 3,655 | 3,655 | |||||
Regulatory assets (includes $1,121 at 2017 and $1,142 at 2016 related to VIEs) | 5,853 | 5,722 | |||||
Nuclear decommissioning trust funds | 3,102 | 2,932 | |||||
Other | 865 | 856 | |||||
Total other noncurrent assets | 13,475 | 13,165 | |||||
Total Assets | $ | 48,031 | $ | 46,650 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 649 | $ | 1,003 | |||
Accounts payable to affiliated companies | 208 | 348 | |||||
Notes payable to affiliated companies | 1,070 | 729 | |||||
Taxes accrued | 165 | 83 | |||||
Interest accrued | 228 | 201 | |||||
Current maturities of long-term debt (includes $55 at 2017 and $62 at 2016 related to VIEs) | 1,022 | 778 | |||||
Asset retirement obligations | 170 | 189 | |||||
Regulatory liabilities | 120 | 189 | |||||
Other | 660 | 745 | |||||
Total current liabilities | 4,292 | 4,265 | |||||
Long-Term Debt (includes $1,711 at 2017 and $1,741 at 2016 related to VIEs) | 15,950 | 15,590 | |||||
Long-Term Debt Payable to Affiliated Companies | 1,173 | 1,173 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 5,662 | 5,246 | |||||
Asset retirement obligations | 5,288 | 5,286 | |||||
Regulatory liabilities | 2,511 | 2,395 | |||||
Accrued pension and other post-retirement benefit costs | 537 | 547 | |||||
Other | 321 | 341 | |||||
Total other noncurrent liabilities | 14,319 | 13,815 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2017 and 2016 | — | — | |||||
Additional paid-in capital | 8,096 | 8,094 | |||||
Retained earnings | 4,237 | 3,764 | |||||
Accumulated other comprehensive loss | (28 | ) | (38 | ) | |||
Total Progress Energy, Inc. stockholders' equity | 12,305 | 11,820 | |||||
Noncontrolling interests | (8 | ) | (13 | ) | |||
Total equity | 12,297 | 11,807 | |||||
Total Liabilities and Equity | $ | 48,031 | $ | 46,650 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 478 | $ | 486 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | 733 | 696 | |||||
Equity component of AFUDC | (48 | ) | (30 | ) | |||
Gains on sales of other assets | (15 | ) | (15 | ) | |||
Impairment charges | 2 | 3 | |||||
Deferred income taxes | 412 | 285 | |||||
Accrued pension and other post-retirement benefit costs | (5 | ) | (12 | ) | |||
Payments for asset retirement obligations | (128 | ) | (126 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | — | 32 | |||||
Receivables | (64 | ) | (66 | ) | |||
Receivables from affiliated companies | 99 | 306 | |||||
Inventory | 95 | 25 | |||||
Other current assets | (200 | ) | 45 | ||||
Increase (decrease) in | |||||||
Accounts payable | (211 | ) | (26 | ) | |||
Accounts payable to affiliated companies | (140 | ) | (79 | ) | |||
Taxes accrued | 81 | 90 | |||||
Other current liabilities | (148 | ) | (162 | ) | |||
Other assets | (70 | ) | (72 | ) | |||
Other liabilities | (18 | ) | 15 | ||||
Net cash provided by operating activities | 853 | 1,395 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (1,733 | ) | (1,441 | ) | |||
Purchases of available-for-sale securities | (1,108 | ) | (1,570 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 1,123 | 1,594 | |||||
Proceeds from insurance | 4 | 58 | |||||
Notes receivable from affiliated companies | (60 | ) | — | ||||
Change in restricted cash | 5 | (6 | ) | ||||
Other | (26 | ) | (14 | ) | |||
Net cash used in investing activities | (1,795 | ) | (1,379 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | 923 | 1,338 | |||||
Payments for the redemption of long-term debt | (326 | ) | (320 | ) | |||
Notes payable to affiliated companies | 341 | (392 | ) | ||||
Dividends to parent | — | (651 | ) | ||||
Other | (3 | ) | (1 | ) | |||
Net cash provided by (used in) financing activities | 935 | (26 | ) | ||||
Net decrease in cash and cash equivalents | (7 | ) | (10 | ) | |||
Cash and cash equivalents at beginning of period | 46 | 44 | |||||
Cash and cash equivalents at end of period | $ | 39 | $ | 34 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 174 | $ | 288 |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||
Net Unrealized | Total Progress | ||||||||||||||||||||||||||||||
Additional | Net Losses on | Gains on | Pension and | Energy, Inc. | |||||||||||||||||||||||||||
Paid-in | Retained | Cash Flow | Available-for- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||
(in millions) | Capital | Earnings | Hedges | Sale Securities | Adjustments | Equity | Interests | Equity | |||||||||||||||||||||||
Balance at December 31, 2015 | $ | 8,092 | $ | 4,831 | $ | (31 | ) | $ | — | $ | (17 | ) | $ | 12,875 | $ | (22 | ) | $ | 12,853 | ||||||||||||
Net income | — | 481 | — | — | — | 481 | 5 | 486 | |||||||||||||||||||||||
Other comprehensive income | — | — | 3 | 1 | 2 | 6 | — | 6 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||||||||
Dividends to parent | — | (651 | ) | — | — | — | (651 | ) | — | (651 | ) | ||||||||||||||||||||
Balance at June 30, 2016 | $ | 8,092 | $ | 4,661 | $ | (28 | ) | $ | 1 | $ | (15 | ) | $ | 12,711 | $ | (18 | ) | $ | 12,693 | ||||||||||||
Balance at December 31, 2016 | $ | 8,094 | $ | 3,764 | $ | (23 | ) | $ | 1 | $ | (16 | ) | $ | 11,820 | $ | (13 | ) | $ | 11,807 | ||||||||||||
Net income | — | 473 | — | — | — | 473 | 5 | 478 | |||||||||||||||||||||||
Other comprehensive income | — | — | 6 | 2 | 2 | 10 | — | 10 | |||||||||||||||||||||||
Other | 2 | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||
Balance at June 30, 2017 | $ | 8,096 | $ | 4,237 | $ | (17 | ) | $ | 3 | $ | (14 | ) | $ | 12,305 | $ | (8 | ) | $ | 12,297 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | $ | 1,199 | $ | 1,213 | $ | 2,418 | $ | 2,520 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 375 | 424 | 739 | 872 | |||||||||||
Operation, maintenance and other | 330 | 321 | 680 | 707 | |||||||||||
Depreciation and amortization | 173 | 175 | 354 | 350 | |||||||||||
Property and other taxes | 40 | 38 | 80 | 79 | |||||||||||
Total operating expenses | 918 | 958 | 1,853 | 2,008 | |||||||||||
Gains on Sales of Other Assets and Other, net | 1 | — | 3 | 1 | |||||||||||
Operating Income | 282 | 255 | 568 | 513 | |||||||||||
Other Income and Expenses, net | 14 | 12 | 33 | 29 | |||||||||||
Interest Expense | 70 | 64 | 152 | 127 | |||||||||||
Income Before Income Taxes | 226 | 203 | 449 | 415 | |||||||||||
Income Tax Expense | 72 | 72 | 148 | 147 | |||||||||||
Net Income and Comprehensive Income | $ | 154 | $ | 131 | $ | 301 | $ | 268 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 12 | $ | 11 | |||
Receivables (net of allowance for doubtful accounts of $1 at 2017 and $4 at 2016) | 32 | 51 | |||||
Receivables of VIEs (net of allowance for doubtful accounts of $5 at 2017 and 2016) | 422 | 404 | |||||
Receivables from affiliated companies | 5 | 5 | |||||
Notes receivable from affiliated companies | — | 165 | |||||
Inventory | 1,053 | 1,076 | |||||
Regulatory assets | 212 | 188 | |||||
Other | 76 | 57 | |||||
Total current assets | 1,812 | 1,957 | |||||
Property, Plant and Equipment | |||||||
Cost | 28,936 | 28,419 | |||||
Accumulated depreciation and amortization | (10,734 | ) | (10,561 | ) | |||
Generation facilities to be retired, net | 487 | 529 | |||||
Net property, plant and equipment | 18,689 | 18,387 | |||||
Other Noncurrent Assets | |||||||
Regulatory assets | 3,379 | 3,243 | |||||
Nuclear decommissioning trust funds | 2,380 | 2,217 | |||||
Other | 536 | 525 | |||||
Total other noncurrent assets | 6,295 | 5,985 | |||||
Total Assets | $ | 26,796 | $ | 26,329 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 277 | $ | 589 | |||
Accounts payable to affiliated companies | 169 | 227 | |||||
Notes payable to affiliated companies | 633 | — | |||||
Taxes accrued | 61 | 104 | |||||
Interest accrued | 101 | 102 | |||||
Current maturities of long-term debt | 203 | 452 | |||||
Asset retirement obligations | 170 | 189 | |||||
Regulatory liabilities | 113 | 158 | |||||
Other | 308 | 365 | |||||
Total current liabilities | 2,035 | 2,186 | |||||
Long-Term Debt | 6,407 | 6,409 | |||||
Long-Term Debt Payable to Affiliated Companies | 150 | 150 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 3,539 | 3,323 | |||||
Asset retirement obligations | 4,520 | 4,508 | |||||
Regulatory liabilities | 2,048 | 1,946 | |||||
Accrued pension and other post-retirement benefit costs | 246 | 252 | |||||
Investment tax credits | 145 | 146 | |||||
Other | 47 | 51 | |||||
Total other noncurrent liabilities | 10,545 | 10,226 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Member's Equity | 7,659 | 7,358 | |||||
Total Liabilities and Equity | $ | 26,796 | $ | 26,329 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 301 | $ | 268 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amortization of nuclear fuel) | 453 | 451 | |||||
Equity component of AFUDC | (26 | ) | (20 | ) | |||
Gains on sales of other assets | (4 | ) | (3 | ) | |||
Deferred income taxes | 224 | 172 | |||||
Accrued pension and other post-retirement benefit costs | (10 | ) | (16 | ) | |||
Payments for asset retirement obligations | (101 | ) | (100 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | (3 | ) | (1 | ) | |||
Receivables | 3 | (19 | ) | ||||
Receivables from affiliated companies | — | 7 | |||||
Inventory | 23 | 20 | |||||
Other current assets | (50 | ) | 131 | ||||
Increase (decrease) in | |||||||
Accounts payable | (218 | ) | (28 | ) | |||
Accounts payable to affiliated companies | (58 | ) | (56 | ) | |||
Taxes accrued | (43 | ) | 56 | ||||
Other current liabilities | (111 | ) | (12 | ) | |||
Other assets | (37 | ) | (26 | ) | |||
Other liabilities | (9 | ) | (6 | ) | |||
Net cash provided by operating activities | 334 | 818 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (840 | ) | (704 | ) | |||
Purchases of available-for-sale securities | (819 | ) | (1,299 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 805 | 1,284 | |||||
Notes receivable from affiliated companies | 165 | — | |||||
Other | (22 | ) | (19 | ) | |||
Net cash used in investing activities | (711 | ) | (738 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | 15 | 59 | |||||
Payments for the redemption of long-term debt | (269 | ) | (15 | ) | |||
Notes payable to affiliated companies | 633 | (131 | ) | ||||
Other | (1 | ) | — | ||||
Net cash provided by (used in) financing activities | 378 | (87 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 1 | (7 | ) | ||||
Cash and cash equivalents at beginning of period | 11 | 15 | |||||
Cash and cash equivalents at end of period | $ | 12 | $ | 8 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 52 | $ | 73 |
Member's | |||
(in millions) | Equity | ||
Balance at December 31, 2015 | $ | 7,059 | |
Net income | 268 | ||
Balance at June 30, 2016 | $ | 7,327 | |
Balance at December 31, 2016 | $ | 7,358 | |
Net income | 301 | ||
Balance at June 30, 2017 | $ | 7,659 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | $ | 1,191 | $ | 1,133 | $ | 2,150 | $ | 2,157 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 455 | 429 | 817 | 841 | |||||||||||
Operation, maintenance and other | 203 | 199 | 394 | 404 | |||||||||||
Depreciation and amortization | 137 | 122 | 269 | 236 | |||||||||||
Property and other taxes | 89 | 82 | 166 | 160 | |||||||||||
Impairment charges | 1 | 1 | 2 | 3 | |||||||||||
Total operating expenses | 885 | 833 | 1,648 | 1,644 | |||||||||||
Operating Income | 306 | 300 | 502 | 513 | |||||||||||
Other Income and Expenses, net | 14 | 14 | 30 | 19 | |||||||||||
Interest Expense | 70 | 40 | 140 | 81 | |||||||||||
Income Before Income Taxes | 250 | 274 | 392 | 451 | |||||||||||
Income Tax Expense | 92 | 103 | 144 | 170 | |||||||||||
Net Income | $ | 158 | $ | 171 | $ | 248 | $ | 281 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Unrealized gains on available-for-sale securities | 1 | — | 2 | 1 | |||||||||||
Comprehensive Income | $ | 159 | $ | 171 | $ | 250 | $ | 282 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 8 | $ | 16 | |||
Receivables (net of allowance for doubtful accounts of $3 at 2017 and $2 at 2016) | 61 | 61 | |||||
Receivables of VIEs (net of allowance for doubtful accounts of $2 at 2017 and 2016) | 354 | 288 | |||||
Receivables from affiliated companies | 1 | 5 | |||||
Notes receivable from affiliated companies | 230 | — | |||||
Inventory | 568 | 641 | |||||
Regulatory assets (includes $52 at 2017 and $50 at 2016 related to VIEs) | 321 | 213 | |||||
Other (includes $33 at 2017 and $53 at 2016 related to VIEs) | 50 | 125 | |||||
Total current assets | 1,593 | 1,349 | |||||
Property, Plant and Equipment | |||||||
Cost | 17,369 | 16,434 | |||||
Accumulated depreciation and amortization | (4,910 | ) | (4,644 | ) | |||
Net property, plant and equipment | 12,459 | 11,790 | |||||
Other Noncurrent Assets | |||||||
Regulatory assets (includes $1,121 at 2017 and $1,142 at 2016 related to VIEs) | 2,474 | 2,480 | |||||
Nuclear decommissioning trust funds | 723 | 715 | |||||
Other | 279 | 278 | |||||
Total other noncurrent assets | 3,476 | 3,473 | |||||
Total Assets | $ | 17,528 | $ | 16,612 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 372 | $ | 413 | |||
Accounts payable to affiliated companies | 42 | 125 | |||||
Notes payable to affiliated companies | — | 297 | |||||
Taxes accrued | 112 | 33 | |||||
Interest accrued | 58 | 49 | |||||
Current maturities of long-term debt (includes $55 at 2017 and $62 at 2016 related to VIEs) | 819 | 326 | |||||
Regulatory liabilities | 7 | 31 | |||||
Other | 322 | 352 | |||||
Total current liabilities | 1,732 | 1,626 | |||||
Long-Term Debt (includes $1,414 at 2017 and $1,442 at 2016 related to VIEs) | 6,160 | 5,799 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 2,893 | 2,694 | |||||
Asset retirement obligations | 768 | 778 | |||||
Regulatory liabilities | 462 | 448 | |||||
Accrued pension and other post-retirement benefit costs | 258 | 262 | |||||
Other | 103 | 105 | |||||
Total other noncurrent liabilities | 4,484 | 4,287 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Member's equity | 5,149 | 4,899 | |||||
Accumulated other comprehensive income | 3 | 1 | |||||
Total equity | 5,152 | 4,900 | |||||
Total Liabilities and Equity | $ | 17,528 | $ | 16,612 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 248 | $ | 281 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | 274 | 239 | |||||
Equity component of AFUDC | (22 | ) | (9 | ) | |||
Impairment charges | 2 | 3 | |||||
Deferred income taxes | 186 | 113 | |||||
Accrued pension and other post-retirement benefit costs | 2 | 1 | |||||
Payments for asset retirement obligations | (27 | ) | (25 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | 2 | 34 | |||||
Receivables | (65 | ) | (49 | ) | |||
Receivables from affiliated companies | — | 23 | |||||
Inventory | 72 | 5 | |||||
Other current assets | (47 | ) | (13 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | 7 | 3 | |||||
Accounts payable to affiliated companies | (83 | ) | (16 | ) | |||
Taxes accrued | 78 | 5 | |||||
Other current liabilities | (57 | ) | (142 | ) | |||
Other assets | (32 | ) | (47 | ) | |||
Other liabilities | (5 | ) | 20 | ||||
Net cash provided by operating activities | 533 | 426 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (893 | ) | (737 | ) | |||
Purchases of available-for-sale securities | (289 | ) | (271 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 318 | 310 | |||||
Proceeds from insurance | 4 | 58 | |||||
Notes receivable from affiliated companies | (230 | ) | — | ||||
Change in restricted cash | — | (6 | ) | ||||
Other | (4 | ) | 5 | ||||
Net cash used in investing activities | (1,094 | ) | (641 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | 908 | 1,278 | |||||
Payments for the redemption of long-term debt | (57 | ) | (5 | ) | |||
Notes payable to affiliated companies | (297 | ) | (407 | ) | |||
Distributions to parent | — | (649 | ) | ||||
Other | (1 | ) | (2 | ) | |||
Net cash provided by financing activities | 553 | 215 | |||||
Net decrease in cash and cash equivalents | (8 | ) | — | ||||
Cash and cash equivalents at beginning of period | 16 | 8 | |||||
Cash and cash equivalents at end of period | $ | 8 | $ | 8 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 122 | $ | 215 |
Accumulated | |||||||||||
Other | |||||||||||
Comprehensive | |||||||||||
Income | |||||||||||
Net Unrealized | |||||||||||
Gains on | |||||||||||
Member's | Available-for-Sale | Total | |||||||||
(in millions) | Equity | Securities | Equity | ||||||||
Balance at December 31, 2015 | $ | 5,121 | $ | — | $ | 5,121 | |||||
Net income | 281 | — | 281 | ||||||||
Other comprehensive income | — | 1 | 1 | ||||||||
Distribution to parent | (649 | ) | — | (649 | ) | ||||||
Balance at June 30, 2016 | $ | 4,753 | $ | 1 | $ | 4,754 | |||||
Balance at December 31, 2016 | $ | 4,899 | $ | 1 | $ | 4,900 | |||||
Net income | 248 | — | 248 | ||||||||
Other comprehensive income | — | 2 | 2 | ||||||||
Other | 2 | — | 2 | ||||||||
Balance at June 30, 2017 | $ | 5,149 | $ | 3 | $ | 5,152 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | |||||||||||||||
Regulated electric | $ | 328 | $ | 323 | $ | 665 | $ | 663 | |||||||
Regulated natural gas | 100 | 99 | 270 | 269 | |||||||||||
Nonregulated electric and other | 9 | 6 | 20 | 12 | |||||||||||
Total operating revenues | 437 | 428 | 955 | 944 | |||||||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power – regulated | 86 | 100 | 183 | 211 | |||||||||||
Fuel used in electric generation and purchased power – nonregulated | 14 | 13 | 29 | 23 | |||||||||||
Cost of natural gas | 10 | 9 | 64 | 58 | |||||||||||
Operation, maintenance and other | 131 | 122 | 261 | 241 | |||||||||||
Depreciation and amortization | 63 | 64 | 130 | 125 | |||||||||||
Property and other taxes | 67 | 65 | 139 | 136 | |||||||||||
Impairment charges | 1 | — | 1 | — | |||||||||||
Total operating expenses | 372 | 373 | 807 | 794 | |||||||||||
Gains on Sales of Other Assets and Other, net | — | — | — | 1 | |||||||||||
Operating Income | 65 | 55 | 148 | 151 | |||||||||||
Other Income and Expenses, net | 4 | 1 | 8 | 3 | |||||||||||
Interest Expense | 23 | 21 | 45 | 41 | |||||||||||
Income From Continuing Operations Before Income Taxes | 46 | 35 | 111 | 113 | |||||||||||
Income Tax Expense From Continuing Operations | 16 | 12 | 39 | 33 | |||||||||||
Income From Continuing Operations | 30 | 23 | 72 | 80 | |||||||||||
Income From Discontinued Operations, net of tax | — | — | — | 2 | |||||||||||
Net Income and Comprehensive Income | $ | 30 | $ | 23 | $ | 72 | $ | 82 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 9 | $ | 13 | |||
Receivables (net of allowance for doubtful accounts of $2 at 2017 and 2016) | 61 | 71 | |||||
Receivables from affiliated companies | 74 | 129 | |||||
Notes receivable from affiliated companies | 63 | 94 | |||||
Inventory | 134 | 137 | |||||
Regulatory assets | 42 | 37 | |||||
Other | 38 | 37 | |||||
Total current assets | 421 | 518 | |||||
Property, Plant and Equipment | |||||||
Cost | 8,348 | 8,126 | |||||
Accumulated depreciation and amortization | (2,626 | ) | (2,579 | ) | |||
Net property, plant and equipment | 5,722 | 5,547 | |||||
Other Noncurrent Assets | |||||||
Goodwill | 920 | 920 | |||||
Regulatory assets | 519 | 520 | |||||
Other | 23 | 23 | |||||
Total other noncurrent assets | 1,462 | 1,463 | |||||
Total Assets | $ | 7,605 | $ | 7,528 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 267 | $ | 282 | |||
Accounts payable to affiliated companies | 47 | 63 | |||||
Notes payable to affiliated companies | 24 | 16 | |||||
Taxes accrued | 100 | 178 | |||||
Interest accrued | 19 | 19 | |||||
Current maturities of long-term debt | 1 | 1 | |||||
Regulatory liabilities | 16 | 21 | |||||
Other | 77 | 91 | |||||
Total current liabilities | 551 | 671 | |||||
Long-Term Debt | 1,951 | 1,858 | |||||
Long-Term Debt Payable to Affiliated Companies | 25 | 25 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 1,506 | 1,443 | |||||
Asset retirement obligations | 76 | 77 | |||||
Regulatory liabilities | 240 | 236 | |||||
Accrued pension and other post-retirement benefit costs | 56 | 56 | |||||
Other | 157 | 166 | |||||
Total other noncurrent liabilities | 2,035 | 1,978 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2017 and 2016 | 762 | 762 | |||||
Additional paid-in capital | 2,670 | 2,695 | |||||
Accumulated deficit | (389 | ) | (461 | ) | |||
Total equity | 3,043 | 2,996 | |||||
Total Liabilities and Equity | $ | 7,605 | $ | 7,528 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 72 | $ | 82 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 132 | 127 | |||||
Equity component of AFUDC | (5 | ) | (2 | ) | |||
Gains on sales of other assets | — | (1 | ) | ||||
Impairment charges | 1 | — | |||||
Deferred income taxes | 64 | 68 | |||||
Accrued pension and other post-retirement benefit costs | 2 | 3 | |||||
Payments for asset retirement obligations | (3 | ) | (3 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | — | (2 | ) | ||||
Receivables | 11 | 3 | |||||
Receivables from affiliated companies | 55 | 49 | |||||
Inventory | 6 | (5 | ) | ||||
Other current assets | (11 | ) | 49 | ||||
Increase (decrease) in | |||||||
Accounts payable | (4 | ) | 8 | ||||
Accounts payable to affiliated companies | (16 | ) | 23 | ||||
Taxes accrued | (79 | ) | (68 | ) | |||
Other current liabilities | (15 | ) | (66 | ) | |||
Other assets | (12 | ) | (8 | ) | |||
Other liabilities | (8 | ) | (9 | ) | |||
Net cash provided by operating activities | 190 | 248 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (286 | ) | (214 | ) | |||
Notes receivable from affiliated companies | 31 | (186 | ) | ||||
Other | (13 | ) | (13 | ) | |||
Net cash used in investing activities | (268 | ) | (413 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | 93 | 341 | |||||
Payments for the redemption of long-term debt | (1 | ) | (52 | ) | |||
Notes payable to affiliated companies | 8 | (103 | ) | ||||
Dividends to parent | (25 | ) | (25 | ) | |||
Other | (1 | ) | — | ||||
Net cash provided by financing activities | 74 | 161 | |||||
Net decrease in cash and cash equivalents | (4 | ) | (4 | ) | |||
Cash and cash equivalents at beginning of period | 13 | 14 | |||||
Cash and cash equivalents at end of period | $ | 9 | $ | 10 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 59 | $ | 30 |
Additional | |||||||||||||||
Common | Paid-in | Accumulated | Total | ||||||||||||
(in millions) | Stock | Capital | Deficit | Equity | |||||||||||
Balance at December 31, 2015 | $ | 762 | $ | 2,720 | $ | (698 | ) | $ | 2,784 | ||||||
Net income | — | — | 82 | 82 | |||||||||||
Dividends to parent | — | (25 | ) | — | (25 | ) | |||||||||
Balance at June 30, 2016 | $ | 762 | $ | 2,695 | $ | (616 | ) | $ | 2,841 | ||||||
Balance at December 31, 2016 | $ | 762 | $ | 2,695 | $ | (461 | ) | $ | 2,996 | ||||||
Net income | — | — | 72 | 72 | |||||||||||
Dividends to parent | — | (25 | ) | — | (25 | ) | |||||||||
Balance at June 30, 2017 | $ | 762 | $ | 2,670 | $ | (389 | ) | $ | 3,043 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | $ | 742 | $ | 702 | $ | 1,500 | $ | 1,416 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 234 | 220 | 485 | 448 | |||||||||||
Operation, maintenance and other | 192 | 189 | 366 | 351 | |||||||||||
Depreciation and amortization | 91 | 97 | 216 | 222 | |||||||||||
Property and other taxes | 15 | 22 | 37 | 45 | |||||||||||
Total operating expenses | 532 | 528 | 1,104 | 1,066 | |||||||||||
Operating Income | 210 | 174 | 396 | 350 | |||||||||||
Other Income and Expenses, net | 9 | 6 | 17 | 10 | |||||||||||
Interest Expense | 44 | 47 | 88 | 91 | |||||||||||
Income Before Income Taxes | 175 | 133 | 325 | 269 | |||||||||||
Income Tax Expense | 69 | 48 | 128 | 89 | |||||||||||
Net Income | $ | 106 | $ | 85 | $ | 197 | $ | 180 | |||||||
Other Comprehensive Loss, net of tax | |||||||||||||||
Reclassification into earnings from cash flow hedges | — | — | — | (1 | ) | ||||||||||
Comprehensive Income | $ | 106 | $ | 85 | $ | 197 | $ | 179 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 17 | $ | 17 | |||
Receivables (net of allowance for doubtful accounts of $1 at 2017 and 2016) | 45 | 105 | |||||
Receivables from affiliated companies | 87 | 114 | |||||
Notes receivable from affiliated companies | 19 | 86 | |||||
Inventory | 470 | 504 | |||||
Regulatory assets | 159 | 149 | |||||
Other | 88 | 45 | |||||
Total current assets | 885 | 1,020 | |||||
Property, Plant and Equipment | |||||||
Cost | 14,573 | 14,241 | |||||
Accumulated depreciation and amortization | (4,484 | ) | (4,317 | ) | |||
Net property, plant and equipment | 10,089 | 9,924 | |||||
Other Noncurrent Assets | |||||||
Regulatory assets | 1,100 | 1,073 | |||||
Other | 159 | 147 | |||||
Total other noncurrent assets | 1,259 | 1,220 | |||||
Total Assets | $ | 12,233 | $ | 12,164 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 171 | $ | 263 | |||
Accounts payable to affiliated companies | 50 | 74 | |||||
Taxes accrued | 28 | 31 | |||||
Interest accrued | 59 | 61 | |||||
Current maturities of long-term debt | 3 | 3 | |||||
Regulatory liabilities | 36 | 40 | |||||
Other | 122 | 93 | |||||
Total current liabilities | 469 | 565 | |||||
Long-Term Debt | 3,631 | 3,633 | |||||
Long-Term Debt Payable to Affiliated Companies | 150 | 150 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 2,011 | 1,900 | |||||
Asset retirement obligations | 865 | 866 | |||||
Regulatory liabilities | 745 | 748 | |||||
Accrued pension and other post-retirement benefit costs | 77 | 71 | |||||
Investment tax credits | 148 | 137 | |||||
Other | 23 | 27 | |||||
Total other noncurrent liabilities | 3,869 | 3,749 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Member's Equity | 4,114 | 4,067 | |||||
Total Liabilities and Equity | $ | 12,233 | $ | 12,164 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 197 | $ | 180 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | 218 | 223 | |||||
Equity component of AFUDC | (12 | ) | (7 | ) | |||
Deferred income taxes | 131 | 36 | |||||
Accrued pension and other post-retirement benefit costs | 3 | 4 | |||||
Payments for asset retirement obligations | (17 | ) | (16 | ) | |||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | 1 | — | |||||
Receivables | 73 | 12 | |||||
Receivables from affiliated companies | 27 | 11 | |||||
Inventory | 34 | 62 | |||||
Other current assets | (15 | ) | (19 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | (68 | ) | (22 | ) | |||
Accounts payable to affiliated companies | (24 | ) | 4 | ||||
Taxes accrued | (3 | ) | (42 | ) | |||
Other current liabilities | (11 | ) | (60 | ) | |||
Other assets | (13 | ) | (29 | ) | |||
Other liabilities | (9 | ) | 44 | ||||
Net cash provided by operating activities | 512 | 381 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (397 | ) | (325 | ) | |||
Purchases of available-for-sale securities | (10 | ) | (7 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 4 | 5 | |||||
Notes receivable from affiliated companies | 67 | (64 | ) | ||||
Other | (23 | ) | (6 | ) | |||
Net cash used in investing activities | (359 | ) | (397 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | — | 495 | |||||
Payments for the redemption of long-term debt | (2 | ) | (326 | ) | |||
Distributions to parent | (150 | ) | (149 | ) | |||
Other | (1 | ) | (1 | ) | |||
Net cash (used in) provided by financing activities | (153 | ) | 19 | ||||
Net increase in cash and cash equivalents | — | 3 | |||||
Cash and cash equivalents at beginning of period | 17 | 9 | |||||
Cash and cash equivalents at end of period | $ | 17 | $ | 12 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 81 | $ | 43 |
Accumulated | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||
Income | |||||||||||||||||||||||
Additional | Net Gains on | ||||||||||||||||||||||
Common | Paid-in | Retained | Member's | Cash Flow | Total | ||||||||||||||||||
(in millions) | Stock | Capital | Earnings | Equity | Hedges | Equity | |||||||||||||||||
Balance at December 31, 2015 | $ | 1 | $ | 1,384 | $ | 2,450 | $ | — | $ | 1 | $ | 3,836 | |||||||||||
Net income | — | — | — | 180 | — | 180 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
Distributions to parent | — | — | — | (149 | ) | — | (149 | ) | |||||||||||||||
Transfer to Member's Equity | (1 | ) | (1,384 | ) | (2,450 | ) | 3,835 | — | — | ||||||||||||||
Balance at June 30, 2016 | $ | — | $ | — | $ | — | $ | 3,866 | $ | — | $ | 3,866 | |||||||||||
Balance at December 31, 2016 | $ | — | $ | — | $ | — | $ | 4,067 | $ | — | $ | 4,067 | |||||||||||
Net income | — | — | — | 197 | — | 197 | |||||||||||||||||
Distributions to parent | — | — | — | (150 | ) | — | (150 | ) | |||||||||||||||
Balance at June 30, 2017 | $ | — | $ | — | $ | — | $ | 4,114 | $ | — | $ | 4,114 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating Revenues | |||||||||||||||
Regulated natural gas | $ | 198 | $ | 179 | $ | 696 | $ | 660 | |||||||
Nonregulated natural gas and other | 3 | 3 | 5 | 5 | |||||||||||
Total operating revenues | 201 | 182 | 701 | 665 | |||||||||||
Operating Expenses | |||||||||||||||
Cost of natural gas | 65 | 50 | 270 | 247 | |||||||||||
Operation, maintenance and other | 76 | 73 | 153 | 147 | |||||||||||
Depreciation and amortization | 36 | 34 | 71 | 68 | |||||||||||
Property and other taxes | 12 | 11 | 25 | 22 | |||||||||||
Impairment charges | 7 | — | 7 | — | |||||||||||
Total operating expenses | 196 | 168 | 526 | 484 | |||||||||||
Operating Income | 5 | 14 | 175 | 181 | |||||||||||
Equity in Earnings of Unconsolidated Affiliates | 2 | 7 | 5 | 23 | |||||||||||
Other income and expenses, net | (1 | ) | — | (1 | ) | — | |||||||||
Total other income and expenses | 1 | 7 | 4 | 23 | |||||||||||
Interest Expense | 19 | 16 | 39 | 33 | |||||||||||
(Loss) Income Before Income Taxes | (13 | ) | 5 | 140 | 171 | ||||||||||
Income Tax (Benefit) Expense | (5 | ) | 2 | 53 | 65 | ||||||||||
Net (Loss) Income and Comprehensive (Loss) Income | $ | (8 | ) | $ | 3 | $ | 87 | $ | 106 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 14 | $ | 25 | |||
Receivables (net of allowance for doubtful accounts of $4 at 2017 and $3 at 2016) | 80 | 232 | |||||
Receivables from affiliated companies | 8 | 7 | |||||
Inventory | 38 | 66 | |||||
Regulatory assets | 119 | 124 | |||||
Other | 87 | 21 | |||||
Total current assets | 346 | 475 | |||||
Property, Plant and Equipment | |||||||
Cost | 6,430 | 6,174 | |||||
Accumulated depreciation and amortization | (1,424 | ) | (1,360 | ) | |||
Net property, plant and equipment | 5,006 | 4,814 | |||||
Other Noncurrent Assets | |||||||
Goodwill | 49 | 49 | |||||
Regulatory assets | 346 | 373 | |||||
Investments in equity method unconsolidated affiliates | 74 | 212 | |||||
Other | 12 | 21 | |||||
Total other noncurrent assets | 481 | 655 | |||||
Total Assets | $ | 5,833 | $ | 5,944 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 105 | $ | 155 | |||
Accounts payable to affiliated companies | 50 | 8 | |||||
Notes payable and commercial paper | — | 330 | |||||
Notes payable to affiliated companies | 167 | — | |||||
Taxes accrued | 21 | 67 | |||||
Interest accrued | 30 | 33 | |||||
Current maturities of long-term debt | 35 | 35 | |||||
Other | 67 | 102 | |||||
Total current liabilities | 475 | 730 | |||||
Long-Term Debt | 1,911 | 1,786 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income taxes | 1,019 | 931 | |||||
Asset retirement obligations | 15 | 14 | |||||
Regulatory liabilities | 625 | 608 | |||||
Accrued pension and other post-retirement benefit costs | 14 | 14 | |||||
Other | 164 | 189 | |||||
Total other noncurrent liabilities | 1,837 | 1,756 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, no par value: 100 shares authorized and outstanding at 2017 and 2016 | 860 | 860 | |||||
Retained earnings | 750 | 812 | |||||
Total equity | 1,610 | 1,672 | |||||
Total Liabilities and Equity | $ | 5,833 | $ | 5,944 |
Six Months Ended | |||||||
June 30, | |||||||
(in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 87 | $ | 106 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 74 | 74 | |||||
Impairment charges | 7 | — | |||||
Deferred income taxes | 100 | 70 | |||||
Equity in earnings from unconsolidated affiliates | (5 | ) | (23 | ) | |||
Accrued pension and other post-retirement benefit costs | 6 | 2 | |||||
Payments for asset retirement obligations | — | (4 | ) | ||||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | (39 | ) | 41 | ||||
Receivables | 155 | 90 | |||||
Receivables from affiliated companies | (1 | ) | 48 | ||||
Inventory | 28 | — | |||||
Other current assets | (64 | ) | (93 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | (44 | ) | (21 | ) | |||
Accounts payable to affiliated companies | 42 | — | |||||
Taxes accrued | (46 | ) | 8 | ||||
Other current liabilities | (23 | ) | (4 | ) | |||
Other assets | 28 | 49 | |||||
Other liabilities | (6 | ) | 3 | ||||
Net cash provided by operating activities | 299 | 346 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (260 | ) | (247 | ) | |||
Contributions to equity method investments | (12 | ) | (22 | ) | |||
Other | 1 | (1 | ) | ||||
Net cash used in investing activities | (271 | ) | (270 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the: | |||||||
Issuance of long-term debt | 125 | — | |||||
Issuance of common stock | — | 12 | |||||
Payments for the redemption of long-term debt | — | (40 | ) | ||||
Notes payable and commercial paper | (330 | ) | (5 | ) | |||
Notes payable to affiliated companies | 167 | — | |||||
Dividends paid | — | (55 | ) | ||||
Other | (1 | ) | — | ||||
Net cash used in financing activities | (39 | ) | (88 | ) | |||
Net decrease in cash and cash equivalents | (11 | ) | (12 | ) | |||
Cash and cash equivalents at beginning of period | 25 | 33 | |||||
Cash and cash equivalents at end of period | $ | 14 | $ | 21 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 45 | $ | 50 | |||
Transfer of ownership interest of certain equity method investees to parent | 149 | — |
Accumulated | |||||||||||||||
Other | |||||||||||||||
Comprehensive | |||||||||||||||
Income | |||||||||||||||
Net Loss on | |||||||||||||||
Hedging Activities | |||||||||||||||
Common | Retained | of Unconsolidated | Total | ||||||||||||
(in millions) | Stock | Earnings | Affiliates | Equity | |||||||||||
Balance at December 31, 2015 | $ | 728 | $ | 731 | $ | (1 | ) | $ | 1,458 | ||||||
Net income | — | 106 | — | 106 | |||||||||||
Common stock issuances, including dividend reinvestments and employee benefits | 12 | — | — | 12 | |||||||||||
Common stock dividends | — | (55 | ) | — | (55 | ) | |||||||||
Balance at June 30, 2016 | $ | 740 | $ | 782 | $ | (1 | ) | $ | 1,521 | ||||||
Balance at December 31, 2016 | $ | 860 | $ | 812 | $ | — | $ | 1,672 | |||||||
Net income | — | 87 | — | 87 | |||||||||||
Transfer of ownership interest of certain equity method investees to parent | — | (149 | ) | — | (149 | ) | |||||||||
Balance at June 30, 2017 | $ | 860 | $ | 750 | $ | — | $ | 1,610 |
Applicable Notes | |||||||||||||||||||||||||||||||||
Registrant | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | ||||||||||||||||
Duke Energy Corporation | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | |||||||||||||||||
Duke Energy Carolinas, LLC | • | • | • | • | • | • | • | • | • | • | • | • | • | ||||||||||||||||||||
Progress Energy, Inc. | • | • | • | • | • | • | • | • | • | • | • | • | • | • | |||||||||||||||||||
Duke Energy Progress, LLC | • | • | • | • | • | • | • | • | • | • | • | • | • | ||||||||||||||||||||
Duke Energy Florida, LLC | • | • | • | • | • | • | • | • | • | • | • | • | • | ||||||||||||||||||||
Duke Energy Ohio, Inc. | • | • | • | • | • | • | • | • | • | • | • | • | • | ||||||||||||||||||||
Duke Energy Indiana, LLC | • | • | • | • | • | • | • | • | • | • | • | • | • | ||||||||||||||||||||
Piedmont Natural Gas Company, Inc. | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Duke Energy | $ | 761 | $ | 831 | |||
Duke Energy Carolinas | 310 | 313 | |||||
Progress Energy | 220 | 161 | |||||
Duke Energy Progress | 125 | 102 | |||||
Duke Energy Florida | 95 | 59 | |||||
Duke Energy Ohio | 1 | 2 | |||||
Duke Energy Indiana | 13 | 32 | |||||
Piedmont | 1 | 77 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Duke Energy Ohio | $ | 70 | $ | 97 | |||
Duke Energy Indiana | 118 | 123 |
Three Months Ended | Six Months Ended | ||||||
(in millions) | June 30, 2016 | June 30, 2016 | |||||
Income from Continuing Operations | $ | 624 | $ | 1,201 | |||
Income from Continuing Operations Attributable to Noncontrolling Interests | — | 3 | |||||
Income from Continuing Operations Attributable to Duke Energy Corporation | $ | 624 | $ | 1,198 | |||
(Loss) Income from Discontinued Operations, net of tax | $ | (112 | ) | $ | 10 | ||
Income from Discontinued Operations Attributable to Noncontrolling Interests, net of tax | 3 | 5 | |||||
(Loss) Income from Discontinued Operations Attributable to Duke Energy Corporation, net of tax | $ | (115 | ) | $ | 5 | ||
Net Income | $ | 512 | $ | 1,211 | |||
Net Income Attributable to Noncontrolling Interests | 3 | 8 | |||||
Net Income Attributable to Duke Energy Corporation | $ | 509 | $ | 1,203 |
June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Materials and supplies | $ | 2,368 | $ | 791 | $ | 1,129 | $ | 782 | $ | 347 | $ | 85 | $ | 321 | $ | 2 | |||||||||||||||
Coal | 665 | 239 | 262 | 161 | 101 | 17 | 147 | — | |||||||||||||||||||||||
Natural gas, oil and other fuel | 336 | 36 | 230 | 110 | 120 | 32 | 2 | 36 | |||||||||||||||||||||||
Total inventory | $ | 3,369 | $ | 1,066 | $ | 1,621 | $ | 1,053 | $ | 568 | $ | 134 | $ | 470 | $ | 38 |
December 31, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Materials and supplies | $ | 2,374 | $ | 767 | $ | 1,167 | $ | 813 | $ | 354 | $ | 84 | $ | 312 | $ | 1 | |||||||||||||||
Coal | 774 | 251 | 314 | 148 | 166 | 19 | 190 | — | |||||||||||||||||||||||
Natural gas, oil and other fuel | 374 | 37 | 236 | 115 | 121 | 34 | 2 | 65 | |||||||||||||||||||||||
Total inventory | $ | 3,522 | $ | 1,055 | $ | 1,717 | $ | 1,076 | $ | 641 | $ | 137 | $ | 504 | $ | 66 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Duke Energy | $ | 91 | $ | 87 | $ | 182 | $ | 178 | |||||||
Duke Energy Carolinas | 9 | 7 | 18 | 15 | |||||||||||
Progress Energy | 55 | 50 | 101 | 96 | |||||||||||
Duke Energy Progress | 4 | 4 | 9 | 9 | |||||||||||
Duke Energy Florida | 51 | 46 | 92 | 87 | |||||||||||
Duke Energy Ohio | 23 | 22 | 51 | 51 | |||||||||||
Duke Energy Indiana | 3 | 8 | 10 | 16 | |||||||||||
Piedmont | 1 | — | 2 | 1 |
(in millions) | |||
Current assets | $ | 497 | |
Property, plant and equipment, net | 4,714 | ||
Goodwill | 3,353 | ||
Other long-term assets | 804 | ||
Total assets | 9,368 | ||
Current liabilities, including current maturities of long-term debt | 576 | ||
Long-term liabilities | 1,790 | ||
Long-term debt | 2,002 | ||
Total liabilities | 4,368 | ||
Total purchase price | $ | 5,000 |
Three Months Ended | Six Months Ended | ||||||
(in millions) | June 30, 2016 | June 30, 2016 | |||||
Operating Revenues | $ | 5,374 | $ | 11,214 | |||
Net Income Attributable to Duke Energy Corporation | 540 | 1,372 |
Three Months Ended | Six Months Ended | ||||||
(in millions) | June 30, 2016 | June 30, 2016 | |||||
Operating Revenues | $ | 270 | $ | 516 | |||
Fuel used in electric generation and purchased power | 70 | 117 | |||||
Cost of natural gas | 12 | 23 | |||||
Operation, maintenance and other | 84 | 155 | |||||
Depreciation and amortization | 22 | 44 | |||||
Property and other taxes | 2 | 5 | |||||
Impairment charges (a) | 194 | 194 | |||||
Gains on Sales of Other Assets and Other, net | 1 | 1 | |||||
Other Income and Expenses, net | 11 | 21 | |||||
Interest Expense | 22 | 44 | |||||
Loss before income taxes | (124 | ) | (44 | ) | |||
Income tax benefit(b) | (13 | ) | (52 | ) | |||
(Loss) Income from discontinued operations of the International Disposal Group | (111 | ) | 8 | ||||
(Loss) Income from discontinued operations of other businesses | (1 | ) | 2 | ||||
(Loss) Income from Discontinued Operations, net of tax | $ | (112 | ) | $ | 10 |
(a) | In conjunction with the advancements of marketing efforts during 2016, Duke Energy performed recoverability tests of the long-lived asset groups of International Energy. As a result, Duke Energy determined the carrying value of certain assets in Central America was not fully recoverable and recorded a pretax impairment charge of $194 million. The charge represents the excess carrying value over the estimated fair value of the assets, which was based on a Level 3 Fair Value measurement that was primarily determined from the income approach using discounted cash flows but also considered market information obtained in 2016. |
(b) | Includes an income tax benefit of $95 million for the six months ended June 30, 2016 related to historical undistributed foreign earnings. See Note 16 for additional information. |
Six Months Ended | |||
(in millions) | June 30, 2016 | ||
Cash flows provided by (used in): | |||
Operating activities | $ | 144 | |
Investing activities | (24 | ) |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Consolidated | ||||||||||||||||||||
Unaffiliated revenues | $ | 5,150 | $ | 279 | $ | 110 | $ | 5,539 | $ | 16 | $ | — | $ | 5,555 | |||||||||||||
Intersegment revenues | 8 | 22 | — | 30 | 19 | (49 | ) | — | |||||||||||||||||||
Total revenues | $ | 5,158 | $ | 301 | $ | 110 | $ | 5,569 | $ | 35 | $ | (49 | ) | $ | 5,555 | ||||||||||||
Segment income (loss)(a) | $ | 729 | $ | 27 | $ | 26 | $ | 782 | $ | (94 | ) | $ | — | $ | 688 | ||||||||||||
Add back noncontrolling interests | 3 | ||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (2 | ) | |||||||||||||||||||||||||
Net income | $ | 689 | |||||||||||||||||||||||||
Segment assets | $ | 117,009 | $ | 11,073 | $ | 4,306 | $ | 132,388 | $ | 2,435 | $ | 181 | $ | 135,004 |
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Consolidated | ||||||||||||||||||||
Unaffiliated revenues | $ | 4,993 | $ | 97 | $ | 112 | $ | 5,202 | $ | 11 | $ | — | $ | 5,213 | |||||||||||||
Intersegment revenues | 8 | 2 | — | 10 | 19 | (29 | ) | — | |||||||||||||||||||
Total revenues | $ | 5,001 | $ | 99 | $ | 112 | $ | 5,212 | $ | 30 | $ | (29 | ) | $ | 5,213 | ||||||||||||
Segment income (loss)(a) | $ | 704 | $ | 16 | $ | 11 | $ | 731 | $ | (107 | ) | $ | — | $ | 624 | ||||||||||||
Loss from discontinued operations, net of tax | (112 | ) | |||||||||||||||||||||||||
Net income | $ | 512 |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Consolidated | ||||||||||||||||||||
Unaffiliated revenues | $ | 10,090 | $ | 927 | $ | 238 | $ | 11,255 | $ | 29 | $ | — | $ | 11,284 | |||||||||||||
Intersegment revenues | 15 | 44 | — | 59 | 39 | (98 | ) | — | |||||||||||||||||||
Total revenues | $ | 10,105 | $ | 971 | $ | 238 | $ | 11,314 | $ | 68 | $ | (98 | ) | $ | 11,284 | ||||||||||||
Segment income (loss)(a) | $ | 1,364 | $ | 160 | $ | 51 | $ | 1,575 | $ | (171 | ) | $ | — | $ | 1,404 | ||||||||||||
Add back noncontrolling interests | 4 | ||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (2 | ) | |||||||||||||||||||||||||
Net income | $ | 1,406 |
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Consolidated | ||||||||||||||||||||
Unaffiliated revenues | $ | 10,074 | $ | 266 | $ | 226 | $ | 10,566 | $ | 24 | $ | — | $ | 10,590 | |||||||||||||
Intersegment revenues | 16 | 3 | — | 19 | 35 | (54 | ) | — | |||||||||||||||||||
Total revenues | $ | 10,090 | $ | 269 | $ | 226 | $ | 10,585 | $ | 59 | $ | (54 | ) | $ | 10,590 | ||||||||||||
Segment income (loss)(a) | $ | 1,368 | $ | 48 | $ | 37 | $ | 1,453 | $ | (255 | ) | $ | — | $ | 1,198 | ||||||||||||
Add back noncontrolling interests | 3 | ||||||||||||||||||||||||||
Income from discontinued operations, net of tax | 10 | ||||||||||||||||||||||||||
Net income | $ | 1,211 |
(a) | Other includes costs to achieve the Piedmont acquisition. See Notes 2 and 9 for additional information. |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Consolidated | ||||||||||||||
Total revenues | $ | 329 | $ | 100 | $ | 429 | $ | 8 | $ | 437 | |||||||||
Segment income (loss)/Net Income | 22 | 17 | 39 | (9 | ) | 30 | |||||||||||||
Segment assets | 4,879 | 2,672 | 7,551 | 54 | 7,605 |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Consolidated | ||||||||||||||
Total revenues | $ | 323 | $ | 98 | $ | 421 | $ | 7 | $ | 428 | |||||||||
Segment income (loss)/Net Income | 19 | 14 | 33 | (10 | ) | 23 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Consolidated | ||||||||||||||
Total revenues | $ | 665 | $ | 270 | $ | 935 | $ | 20 | $ | 955 | |||||||||
Segment income (loss)/Net Income | 46 | 42 | 88 | (16 | ) | 72 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Consolidated | ||||||||||||||
Total revenues | $ | 663 | $ | 269 | $ | 932 | $ | 12 | $ | 944 | |||||||||
Segment income (loss) | $ | 55 | $ | 45 | $ | 100 | $ | (20 | ) | $ | 80 | ||||||||
Income from discontinued operations, net of tax | 2 | ||||||||||||||||||
Net income | 82 |
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||
Duke Energy Carolinas | $ | (6 | ) | $ | (17 | ) | $ | (12 | ) | $ | (34 | ) | ||
Progress Energy | (45 | ) | (45 | ) | (88 | ) | (94 | ) | ||||||
Duke Energy Progress | (4 | ) | (8 | ) | (7 | ) | (16 | ) | ||||||
Duke Energy Florida | (3 | ) | (5 | ) | (5 | ) | (9 | ) | ||||||
Duke Energy Indiana | (1 | ) | (5 | ) | (3 | ) | (7 | ) | ||||||
Piedmont | (9 | ) | 1 | (13 | ) | 7 |
Remaining Net | ||||||
Capacity | Book Value | |||||
(in MW) | (in millions) | |||||
Duke Energy Carolinas | ||||||
Allen Steam Station Units 1-3(a) | 585 | $ | 172 | |||
Progress Energy and Duke Energy Florida | ||||||
Crystal River Units 1 and 2(b) | 873 | 113 | ||||
Duke Energy Indiana | ||||||
Gallagher Units 2 and 4(c) | 280 | 131 | ||||
Total Duke Energy | 1,738 | $ | 416 |
(a) | Duke Energy Carolinas will retire Allen Steam Station Units 1 through 3 by December 31, 2024, as part of the resolution of a lawsuit involving alleged New Source Review violations. |
(b) | Duke Energy Florida will likely retire these coal units by 2018 to comply with environmental regulations. |
(c) | Duke Energy Indiana committed to either retire or stop burning coal at Gallagher Units 2 and 4 by December 31, 2022, as part of the settlement of Edwardsport IGCC matters. |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Balance at beginning of period | $ | 98 | $ | 10 | $ | 18 | $ | 3 | $ | 14 | $ | 59 | $ | 10 | $ | 1 | |||||||||||||||
Provisions/adjustments | — | 1 | — | — | 1 | (2 | ) | — | — | ||||||||||||||||||||||
Cash reductions | (8 | ) | (1 | ) | (2 | ) | — | (2 | ) | (4 | ) | (1 | ) | — | |||||||||||||||||
Balance at end of period | $ | 90 | $ | 10 | $ | 16 | $ | 3 | $ | 13 | $ | 53 | $ | 9 | $ | 1 |
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Balance at beginning of period | $ | 94 | $ | 10 | $ | 17 | $ | 3 | $ | 14 | $ | 54 | $ | 12 | $ | 1 | |||||||||||||||
Provisions/adjustments | 27 | 3 | 4 | 1 | 3 | 1 | 21 | — | |||||||||||||||||||||||
Cash reductions | (7 | ) | (2 | ) | (4 | ) | (1 | ) | (3 | ) | (1 | ) | (1 | ) | — | ||||||||||||||||
Balance at end of period | $ | 114 | $ | 11 | $ | 17 | $ | 3 | $ | 14 | $ | 54 | $ | 32 | $ | 1 |
(in millions) | |||
Duke Energy | $ | 70 | |
Duke Energy Carolinas | 23 | ||
Duke Energy Ohio | 35 | ||
Duke Energy Indiana | 7 | ||
Piedmont | 2 |
(in millions) | June 30, 2017 | December 31, 2016 | |||||
Reserves for Legal Matters | |||||||
Duke Energy | $ | 82 | $ | 98 | |||
Duke Energy Carolinas | 23 | 23 | |||||
Progress Energy | 57 | 59 | |||||
Duke Energy Progress | 12 | 14 | |||||
Duke Energy Florida | 28 | 28 | |||||
Duke Energy Ohio | — | 4 | |||||
Piedmont | 2 | 2 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Maturity | Interest | Duke | Energy | Energy | Energy | ||||||||||||||
Issuance Date | Date | Rate | Energy | (Parent) | Florida | Ohio | |||||||||||||
Unsecured Debt | |||||||||||||||||||
April 2017(a) | April 2025 | 3.364 | % | $ | 420 | $ | 420 | $ | — | $ | — | ||||||||
June 2017(b) | June 2020 | 2.100 | % | 330 | 330 | — | — | ||||||||||||
Secured Debt | |||||||||||||||||||
February 2017(c) | June 2034 | 4.120 | % | 587 | — | — | — | ||||||||||||
First Mortgage Bonds | |||||||||||||||||||
January 2017(d) | January 2020 | 1.850 | % | 250 | — | 250 | — | ||||||||||||
January 2017(d) | January 2027 | 3.200 | % | 650 | — | 650 | — | ||||||||||||
March 2017(e) | June 2046 | 3.700 | % | 100 | — | — | 100 | ||||||||||||
Total issuances | $ | 2,337 | $ | 750 | $ | 900 | $ | 100 |
(a) | Proceeds were used to refinance $400 million of unsecured debt at maturity and to repay a portion of outstanding commercial paper. |
(b) | Debt issued to repay a portion of outstanding commercial paper. |
(c) | Portfolio financing of four Texas and Oklahoma wind facilities. Secured by substantially all of the assets of these wind facilities and nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures. |
(d) | Debt issued to fund capital expenditures for ongoing construction and capital maintenance, to repay at maturity a $250 million aggregate principal amount of bonds due September 2017 and for general corporate purposes. |
(e) | Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes. |
(in millions) | Maturity Date | Interest Rate | June 30, 2017 | |||||
Unsecured Debt | ||||||||
Duke Energy (Parent) | August 2017 | 1.625 | % | $ | 700 | |||
Piedmont | September 2017 | 8.510 | % | 35 | ||||
Duke Energy (Parent) | June 2018 | 6.250 | % | 250 | ||||
Duke Energy (Parent) | June 2018 | 2.100 | % | 500 | ||||
First Mortgage Bonds | ||||||||
Duke Energy Florida | September 2017 | 5.800 | % | 250 | ||||
Duke Energy Progress | November 2017 | 1.372 | % | 200 | ||||
Duke Energy Carolinas | January 2018 | 5.250 | % | 400 | ||||
Duke Energy Carolinas | April 2018 | 5.100 | % | 300 | ||||
Duke Energy Florida | June 2018 | 5.650 | % | 500 | ||||
Other(a) | 337 | |||||||
Current maturities of long-term debt | $ | 3,472 |
June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||
Duke | Energy | Energy | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | (Parent) | Carolinas | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Facility size(a) | $ | 8,000 | $ | 3,150 | $ | 1,350 | $ | 1,250 | $ | 700 | $ | 450 | $ | 600 | $ | 500 | |||||||||||||||
Reduction to backstop issuances | |||||||||||||||||||||||||||||||
Commercial paper(b) | (3,115 | ) | (1,392 | ) | (732 | ) | (661 | ) | — | (45 | ) | (150 | ) | (135 | ) | ||||||||||||||||
Outstanding letters of credit | (68 | ) | (59 | ) | (4 | ) | (2 | ) | (1 | ) | — | — | (2 | ) | |||||||||||||||||
Tax-exempt bonds | (81 | ) | — | — | — | — | — | (81 | ) | — | |||||||||||||||||||||
Coal ash set-aside | (500 | ) | — | (250 | ) | (250 | ) | — | — | — | — | ||||||||||||||||||||
Available capacity under the Master Credit Facility | $ | 4,236 | $ | 1,699 | $ | 364 | $ | 337 | $ | 699 | $ | 405 | $ | 369 | $ | 363 |
(a) | Represents the sublimit of each borrower. |
(b) | Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies on the Condensed Consolidated Balance Sheets. |
Electric Utilities | Gas Utilities | Commercial | |||||||||||||
(in millions) | and Infrastructure | and Infrastructure | Renewables | Total | |||||||||||
Goodwill | $ | 17,379 | $ | 1,924 | $ | 122 | $ | 19,425 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Duke Energy Carolinas | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 178 | $ | 199 | $ | 377 | $ | 416 | |||||||
Indemnification coverages(b) | 6 | 5 | 12 | 11 | |||||||||||
JDA revenue(c) | 17 | 2 | 33 | 11 | |||||||||||
JDA expense(c) | 21 | 50 | 52 | 91 | |||||||||||
Intercompany natural gas purchases(d) | 1 | — | 2 | — | |||||||||||
Progress Energy | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 173 | $ | 160 | $ | 342 | $ | 334 | |||||||
Indemnification coverages(b) | 9 | 9 | 19 | 17 | |||||||||||
JDA revenue(c) | 21 | 50 | 52 | 91 | |||||||||||
JDA expense(c) | 17 | 2 | 33 | 11 | |||||||||||
Intercompany natural gas purchases(d) | 19 | — | 38 | — | |||||||||||
Duke Energy Progress | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 102 | $ | 89 | $ | 205 | $ | 189 | |||||||
Indemnification coverages(b) | 3 | 4 | 7 | 7 | |||||||||||
JDA revenue(c) | 21 | 50 | 52 | 91 | |||||||||||
JDA expense(c) | 17 | 2 | 33 | 11 | |||||||||||
Intercompany natural gas purchases(d) | 19 | — | 38 | — | |||||||||||
Duke Energy Florida | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 71 | $ | 71 | $ | 137 | $ | 145 | |||||||
Indemnification coverages(b) | 6 | 5 | 12 | 10 | |||||||||||
Duke Energy Ohio | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 84 | $ | 87 | $ | 174 | $ | 172 | |||||||
Indemnification coverages(b) | 1 | 1 | 2 | 2 | |||||||||||
Duke Energy Indiana | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 87 | $ | 89 | $ | 177 | $ | 183 | |||||||
Indemnification coverages(b) | 2 | 2 | 4 | 4 | |||||||||||
Piedmont | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | 8 | $ | — | $ | 14 | $ | — | |||||||
Indemnification coverages(b) | — | — | 1 | — | |||||||||||
Intercompany natural gas sales(d) | 20 | — | 40 | — |
(a) | The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income. |
(b) | The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income. |
(c) | Duke Energy Carolinas and Duke Energy Progress participate in a Joint Dispatch Agreement (JDA), which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power under the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income. |
(d) | Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress' natural gas-fired generation facilities. Piedmont records the sales in Regulated natural gas revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases in Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income. The amounts are not eliminated in accordance with rate-based accounting regulations. For the three and six months ended June 30, 2016, which was prior to the Piedmont acquisition, Piedmont recorded $19 million and $38 million, respectively, of natural gas sales with Duke Energy Progress and $1 million and 2 million, respectively, with Duke Energy Carolinas. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(in millions) | Type of expense | 2017 | 2016 | 2017 | 2016 | |||||||||
Cardinal | Transportation Costs | $ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||
Pine Needle | Gas Storage Costs | 2 | 2 | 4 | 5 | |||||||||
Hardy Storage | Gas Storage Costs | 3 | 3 | 5 | 5 | |||||||||
Total | $ | 7 | $ | 7 | $ | 13 | $ | 14 |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||
Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||
(in millions) | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||
June 30, 2017 | |||||||||||||||||||||
Intercompany income tax receivable | $ | — | $ | 102 | $ | 35 | $ | — | $ | 19 | $ | 25 | $ | 56 | |||||||
Intercompany income tax payable | 20 | — | — | 3 | — | — | — | ||||||||||||||
December 31, 2016 | |||||||||||||||||||||
Intercompany income tax receivable | $ | 1 | $ | — | $ | — | $ | 37 | $ | — | $ | — | $ | — | |||||||
Intercompany income tax payable | — | 37 | 90 | — | 1 | 3 | 38 |
June 30, 2017 | |||||||||||||||||||||||
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | |||||||||||||||||
Cash flow hedges(a) | $ | 703 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Undesignated contracts | 927 | 400 | 500 | 250 | 250 | 27 | |||||||||||||||||
Total notional amount | $ | 1,630 | $ | 400 | $ | 500 | $ | 250 | $ | 250 | $ | 27 |
December 31, 2016 | |||||||||||||||||||||||
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | |||||||||||||||||
Cash flow hedges(a) | $ | 750 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Undesignated contracts | 927 | 400 | 500 | 250 | 250 | 27 | |||||||||||||||||
Total notional amount | $ | 1,677 | $ | 400 | $ | 500 | $ | 250 | $ | 250 | $ | 27 |
(a) | Duke Energy includes amounts related to consolidated VIEs of $703 million and $750 million as of June 30, 2017 and December 31, 2016, respectively. |
June 30, 2017 | ||||||||||||||||||||
Duke | Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | |||||||||||||||
Energy | Carolinas | Energy | Progress | Florida | Indiana | Piedmont | ||||||||||||||
Electricity (gigawatt-hours) | 178 | — | — | — | — | 178 | — | |||||||||||||
Natural gas (millions of dekatherms) | 791 | 92 | 202 | 106 | 96 | 2 | 495 |
December 31, 2016 | ||||||||||||||||||||
Duke | Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | |||||||||||||||
Energy | Carolinas | Energy | Progress | Florida | Indiana | Piedmont | ||||||||||||||
Electricity (gigawatt-hours) | 147 | — | — | — | — | 147 | — | |||||||||||||
Natural gas (millions of dekatherms) | 890 | 91 | 269 | 118 | 151 | 1 | 529 |
Derivative Assets | June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Commodity Contracts | ||||||||||||||||||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 76 | $ | 7 | $ | 11 | $ | 7 | $ | 4 | $ | 3 | $ | 54 | $ | 2 | ||||||||||||||||
Noncurrent | 3 | 1 | 2 | 1 | 1 | — | — | — | ||||||||||||||||||||||||
Total Derivative Assets – Commodity Contracts | $ | 79 | $ | 8 | $ | 13 | $ | 8 | $ | 5 | $ | 3 | $ | 54 | $ | 2 | ||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||||||||||||||
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Noncurrent | $ | 14 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | 2 | — | 2 | — | 1 | — | — | — | ||||||||||||||||||||||||
Total Derivative Assets – Interest Rate Contracts | $ | 16 | $ | — | $ | 2 | $ | — | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||
Total Derivative Assets | $ | 95 | $ | 8 | $ | 15 | $ | 8 | $ | 6 | $ | 3 | $ | 54 | $ | 2 |
Derivative Liabilities | June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Commodity Contracts | ||||||||||||||||||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 40 | $ | 1 | $ | 21 | $ | 2 | $ | 19 | $ | — | $ | — | $ | 18 | ||||||||||||||||
Noncurrent | 140 | 3 | 10 | 3 | 1 | — | — | 127 | ||||||||||||||||||||||||
Total Derivative Liabilities – Commodity Contracts | $ | 180 | $ | 4 | $ | 31 | $ | 5 | $ | 20 | $ | — | $ | — | $ | 145 | ||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||||||||||||||
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Noncurrent | 9 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | 23 | 22 | — | — | — | 1 | — | — | ||||||||||||||||||||||||
Noncurrent | 9 | — | 4 | 3 | — | 4 | — | — | ||||||||||||||||||||||||
Total Derivative Liabilities – Interest Rate Contracts | $ | 47 | $ | 22 | $ | 4 | $ | 3 | $ | — | $ | 5 | $ | — | $ | — | ||||||||||||||||
Total Derivative Liabilities | $ | 227 | $ | 26 | $ | 35 | $ | 8 | $ | 20 | $ | 5 | $ | — | $ | 145 |
Derivative Assets | December 31, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Commodity Contracts | ||||||||||||||||||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 108 | $ | 23 | $ | 61 | $ | 35 | $ | 26 | $ | 4 | $ | 16 | $ | 3 | ||||||||||||||||
Noncurrent | 32 | 10 | 21 | 10 | 11 | 1 | — | — | ||||||||||||||||||||||||
Total Derivative Assets – Commodity Contracts | $ | 140 | $ | 33 | $ | 82 | $ | 45 | $ | 37 | $ | 5 | $ | 16 | $ | 3 | ||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||||||||||||||
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Noncurrent | $ | 19 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | 3 | — | 3 | 1 | 2 | — | — | — | ||||||||||||||||||||||||
Total Derivative Assets – Interest Rate Contracts | $ | 22 | $ | — | $ | 3 | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | ||||||||||||||||
Total Derivative Assets | $ | 162 | $ | 33 | $ | 85 | $ | 46 | $ | 39 | $ | 5 | $ | 16 | $ | 3 |
Derivative Liabilities | December 31, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Commodity Contracts | ||||||||||||||||||||||||||||||||
Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 43 | $ | — | $ | 12 | $ | — | $ | 12 | $ | — | $ | 2 | $ | 35 | ||||||||||||||||
Noncurrent | 166 | 1 | 7 | 1 | — | — | — | 152 | ||||||||||||||||||||||||
Total Derivative Liabilities – Commodity Contracts | $ | 209 | $ | 1 | $ | 19 | $ | 1 | $ | 12 | $ | — | $ | 2 | $ | 187 | ||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||||||||||||||
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Noncurrent | 8 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Not Designated as Hedging Instruments | — | |||||||||||||||||||||||||||||||
Current | 1 | — | — | — | — | 1 | — | — | ||||||||||||||||||||||||
Noncurrent | 26 | 15 | 6 | 6 | — | 5 | — | — | ||||||||||||||||||||||||
Total Derivative Liabilities – Interest Rate Contracts | $ | 43 | $ | 15 | $ | 6 | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | ||||||||||||||||
Total Derivative Liabilities | $ | 252 | $ | 16 | $ | 25 | $ | 7 | $ | 12 | $ | 6 | $ | 2 | $ | 187 |
Derivative Assets | June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 78 | $ | 7 | $ | 13 | $ | 7 | $ | 5 | $ | 3 | $ | 54 | $ | 2 | ||||||||||||||||
Gross amounts offset | (3 | ) | — | (4 | ) | — | (3 | ) | — | — | — | |||||||||||||||||||||
Net amounts presented in Current Assets: Other | $ | 75 | $ | 7 | $ | 9 | $ | 7 | $ | 2 | $ | 3 | $ | 54 | $ | 2 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 17 | $ | 1 | $ | 2 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||
Gross amounts offset | (1 | ) | — | (1 | ) | — | (1 | ) | — | — | — | |||||||||||||||||||||
Net amounts presented in Other Noncurrent Assets: Other | $ | 16 | $ | 1 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | $ | — |
Derivative Liabilities | June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 69 | $ | 23 | $ | 21 | $ | 2 | $ | 19 | $ | 1 | $ | — | $ | 18 | ||||||||||||||||
Gross amounts offset | (4 | ) | (1 | ) | (4 | ) | (1 | ) | (3 | ) | — | — | — | |||||||||||||||||||
Net amounts presented in Current Liabilities: Other | $ | 65 | $ | 22 | $ | 17 | $ | 1 | $ | 16 | $ | 1 | $ | — | $ | 18 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 158 | $ | 3 | $ | 14 | $ | 6 | $ | 1 | $ | 4 | $ | — | $ | 127 | ||||||||||||||||
Gross amounts offset | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | — | |||||||||||||||||||
Net amounts presented in Other Noncurrent Liabilities: Other | $ | 156 | $ | 2 | $ | 13 | $ | 5 | $ | — | $ | 4 | $ | — | $ | 127 |
Derivative Assets | December 31, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 111 | $ | 23 | $ | 64 | $ | 36 | $ | 28 | $ | 4 | $ | 16 | $ | 3 | ||||||||||||||||
Gross amounts offset | (11 | ) | — | (11 | ) | — | (11 | ) | — | — | — | |||||||||||||||||||||
Net amounts presented in Current Assets: Other | $ | 100 | $ | 23 | $ | 53 | $ | 36 | $ | 17 | $ | 4 | $ | 16 | $ | 3 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 51 | $ | 10 | $ | 21 | $ | 10 | $ | 11 | $ | 1 | $ | — | $ | — | ||||||||||||||||
Gross amounts offset | (2 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | — | — | ||||||||||||||||||||
Net amounts presented in Other Noncurrent Assets: Other | $ | 49 | $ | 9 | $ | 20 | $ | 9 | $ | 11 | $ | 1 | $ | — | $ | — |
Derivative Liabilities | December 31, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 52 | $ | — | $ | 12 | $ | — | $ | 12 | $ | 1 | $ | 2 | $ | 35 | ||||||||||||||||
Gross amounts offset | (11 | ) | — | (11 | ) | — | (11 | ) | — | — | — | |||||||||||||||||||||
Net amounts presented in Current Liabilities: Other | $ | 41 | $ | — | $ | 1 | $ | — | $ | 1 | $ | 1 | $ | 2 | $ | 35 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 200 | $ | 16 | $ | 13 | $ | 7 | $ | — | $ | 5 | $ | — | $ | 152 | ||||||||||||||||
Gross amounts offset | (2 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | — | — | ||||||||||||||||||||
Net amounts presented in Other Noncurrent Liabilities: Other | $ | 198 | $ | 15 | $ | 12 | $ | 6 | $ | — | $ | 5 | $ | — | $ | 152 |
June 30, 2017 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Aggregate fair value of derivatives in a net liability position | $ | 51 | $ | 25 | $ | 26 | $ | 7 | $ | 19 | |||||||||
Fair value of collateral already posted | — | — | — | — | — | ||||||||||||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered | 51 | 25 | 26 | 7 | 19 |
December 31, 2016 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Aggregate fair value of derivatives in a net liability position | $ | 34 | $ | 16 | $ | 18 | $ | 6 | $ | 12 | |||||||||
Fair value of collateral already posted | — | — | — | — | — | ||||||||||||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered | 34 | 16 | 18 | 6 | 12 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
NDTF | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 116 | $ | — | $ | — | $ | 111 | |||||||||||
Equity securities | 2,373 | 29 | 4,422 | 2,092 | 54 | 4,106 | |||||||||||||||||
Corporate debt securities | 15 | 2 | 611 | 10 | 8 | 528 | |||||||||||||||||
Municipal bonds | 4 | 3 | 340 | 3 | 10 | 331 | |||||||||||||||||
U.S. government bonds | 12 | 6 | 961 | 10 | 8 | 984 | |||||||||||||||||
Other debt securities | — | 1 | 142 | — | 3 | 124 | |||||||||||||||||
Total NDTF | $ | 2,404 | $ | 41 | $ | 6,592 | $ | 2,115 | $ | 83 | $ | 6,184 | |||||||||||
Other Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 15 | $ | — | $ | — | $ | 25 | |||||||||||
Equity securities | 47 | — | 110 | 38 | — | 104 | |||||||||||||||||
Corporate debt securities | 1 | — | 63 | 1 | 1 | 66 | |||||||||||||||||
Municipal bonds | 3 | 1 | 82 | 2 | 1 | 82 | |||||||||||||||||
U.S. government bonds | — | — | 49 | — | 1 | 51 | |||||||||||||||||
Other debt securities | — | — | 36 | — | 2 | 42 | |||||||||||||||||
Total Other Investments | $ | 51 | $ | 1 | $ | 355 | $ | 41 | $ | 5 | $ | 370 | |||||||||||
Total Investments | $ | 2,455 | $ | 42 | $ | 6,947 | $ | 2,156 | $ | 88 | $ | 6,554 |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 86 | |
Due after one through five years | 631 | ||
Due after five through 10 years | 503 | ||
Due after 10 years | 1,064 | ||
Total | $ | 2,284 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Realized gains | $ | 40 | $ | 64 | $ | 133 | $ | 118 | |||||||
Realized losses | 37 | 42 | 99 | 92 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
NDTF | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 33 | $ | — | $ | — | $ | 18 | |||||||||||
Equity securities | 1,299 | 14 | 2,441 | 1,157 | 28 | 2,245 | |||||||||||||||||
Corporate debt securities | 9 | 2 | 407 | 5 | 6 | 354 | |||||||||||||||||
Municipal bonds | 1 | 1 | 60 | 1 | 2 | 67 | |||||||||||||||||
U.S. government bonds | 3 | 3 | 417 | 2 | 5 | 458 | |||||||||||||||||
Other debt securities | — | 1 | 132 | — | 3 | 116 | |||||||||||||||||
Total NDTF | $ | 1,312 | $ | 21 | $ | 3,490 | $ | 1,165 | $ | 44 | $ | 3,258 | |||||||||||
Other Investments | |||||||||||||||||||||||
Other debt securities | — | — | — | — | 1 | 3 | |||||||||||||||||
Total Investments | $ | 1,312 | $ | 21 | $ | 3,490 | $ | 1,165 | $ | 45 | $ | 3,261 |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 4 | |
Due after one through five years | 224 | ||
Due after five through 10 years | 245 | ||
Due after 10 years | 543 | ||
Total | $ | 1,016 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Realized gains | $ | 24 | $ | 33 | $ | 90 | $ | 67 | |||||||
Realized losses | 23 | 19 | 63 | 56 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
NDTF | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 83 | $ | — | $ | — | $ | 93 | |||||||||||
Equity securities | 1,074 | 15 | 1,981 | 935 | 26 | 1,861 | |||||||||||||||||
Corporate debt securities | 6 | — | 204 | 5 | 2 | 174 | |||||||||||||||||
Municipal bonds | 3 | 2 | 280 | 2 | 8 | 264 | |||||||||||||||||
U.S. government bonds | 9 | 3 | 544 | 8 | 3 | 526 | |||||||||||||||||
Other debt securities | — | — | 10 | — | — | 8 | |||||||||||||||||
Total NDTF | $ | 1,092 | $ | 20 | $ | 3,102 | $ | 950 | $ | 39 | $ | 2,926 | |||||||||||
Other Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | 21 | |||||||||||
Municipal bonds | 3 | — | 47 | 2 | — | 44 | |||||||||||||||||
Total Other Investments | $ | 3 | $ | — | $ | 59 | $ | 2 | $ | — | $ | 65 | |||||||||||
Total Investments | $ | 1,095 | $ | 20 | $ | 3,161 | $ | 952 | $ | 39 | $ | 2,991 |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 72 | |
Due after one through five years | 347 | ||
Due after five through 10 years | 196 | ||
Due after 10 years | 470 | ||
Total | $ | 1,085 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Realized gains | $ | 15 | $ | 31 | $ | 42 | $ | 50 | |||||||
Realized losses | 14 | 23 | 35 | 36 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
NDTF | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 31 | $ | — | $ | — | $ | 45 | |||||||||||
Equity securities | 816 | 12 | 1,607 | 704 | 21 | 1,505 | |||||||||||||||||
Corporate debt securities | 5 | — | 142 | 4 | 1 | 120 | |||||||||||||||||
Municipal bonds | 3 | 2 | 279 | 2 | 8 | 263 | |||||||||||||||||
U.S. government bonds | 6 | 2 | 314 | 5 | 2 | 275 | |||||||||||||||||
Other debt securities | — | — | 6 | — | — | 5 | |||||||||||||||||
Total NDTF | $ | 830 | $ | 16 | $ | 2,379 | $ | 715 | $ | 32 | $ | 2,213 | |||||||||||
Other Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||
Total Investments | $ | 830 | $ | 16 | $ | 2,380 | $ | 715 | $ | 32 | $ | 2,214 |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 18 | |
Due after one through five years | 220 | ||
Due after five through 10 years | 144 | ||
Due after 10 years | 359 | ||
Total | $ | 741 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Realized gains | $ | 11 | $ | 27 | $ | 35 | $ | 42 | |||||||
Realized losses | 11 | 20 | 30 | 31 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
NDTF | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 52 | $ | — | $ | — | $ | 48 | |||||||||||
Equity securities | 258 | 3 | 374 | 231 | 5 | 356 | |||||||||||||||||
Corporate debt securities | 1 | — | 62 | 1 | 1 | 54 | |||||||||||||||||
Municipal bonds | — | — | 1 | — | — | 1 | |||||||||||||||||
U.S. government bonds | 3 | 1 | 230 | 3 | 1 | 251 | |||||||||||||||||
Other debt securities | — | — | 4 | — | — | 3 | |||||||||||||||||
Total NDTF(a) | $ | 262 | $ | 4 | $ | 723 | $ | 235 | $ | 7 | $ | 713 | |||||||||||
Other Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | 4 | |||||||||||
Municipal bonds | 3 | — | 47 | 2 | — | 44 | |||||||||||||||||
Total Other Investments | $ | 3 | $ | — | $ | 48 | $ | 2 | $ | — | $ | 48 | |||||||||||
Total Investments | $ | 265 | $ | 4 | $ | 771 | $ | 237 | $ | 7 | $ | 761 |
(a) | During the six months ended June 30, 2017, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing decommissioning activity of the Crystal River Unit 3 nuclear plant. |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 54 | |
Due after one through five years | 127 | ||
Due after five through 10 years | 52 | ||
Due after 10 years | 111 | ||
Total | $ | 344 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Realized gains | $ | 4 | $ | 4 | $ | 7 | $ | 8 | |||||||
Realized losses | 3 | 3 | 5 | 5 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Estimated | Unrealized | Unrealized | Estimated | ||||||||||||||||||
Holding | Holding | Fair | Holding | Holding | Fair | ||||||||||||||||||
(in millions) | Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||
Investments | |||||||||||||||||||||||
Equity securities | $ | 40 | $ | — | $ | 87 | $ | 33 | $ | — | $ | 79 | |||||||||||
Corporate debt securities | — | — | 3 | — | — | 2 | |||||||||||||||||
Municipal bonds | — | 1 | 27 | — | 1 | 28 | |||||||||||||||||
U.S. government bonds | — | — | 1 | — | — | 1 | |||||||||||||||||
Total Investments | $ | 40 | $ | 1 | $ | 118 | $ | 33 | $ | 1 | $ | 110 |
(in millions) | June 30, 2017 | ||
Due in one year or less | $ | 3 | |
Due after one through five years | 14 | ||
Due after five through 10 years | 8 | ||
Due after 10 years | 6 | ||
Total | $ | 31 |
June 30, 2017 | |||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not categorized | ||||||||||
NDTF equity securities | $ | 4,422 | $ | 4,345 | $ | — | $ | — | $ | 77 | |||||
NDTF debt securities | 2,170 | 593 | 1,577 | — | — | ||||||||||
Other trading and AFS equity securities | 112 | 112 | — | — | — | ||||||||||
Other trading and AFS debt securities | 245 | 63 | 182 | — | — | ||||||||||
Derivative assets | 95 | 4 | 37 | 54 | — | ||||||||||
Total assets | 7,044 | 5,117 | 1,796 | 54 | 77 | ||||||||||
Derivative liabilities | (227 | ) | (1 | ) | (81 | ) | (145 | ) | — | ||||||
Net assets (liabilities) | $ | 6,817 | $ | 5,116 | $ | 1,715 | $ | (91 | ) | $ | 77 |
December 31, 2016 | |||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not categorized | ||||||||||
NDTF equity securities | $ | 4,106 | $ | 4,029 | $ | — | $ | — | $ | 77 | |||||
NDTF debt securities | 2,078 | 632 | 1,446 | — | — | ||||||||||
Other trading and AFS equity securities | 104 | 104 | — | — | — | ||||||||||
Other trading and AFS debt securities | 266 | 75 | 186 | 5 | — | ||||||||||
Derivative assets | 162 | 5 | 136 | 21 | — | ||||||||||
Total assets | 6,716 | 4,845 | 1,768 | 26 | 77 | ||||||||||
Derivative liabilities | (252 | ) | (2 | ) | (63 | ) | (187 | ) | — | ||||||
Net assets (liabilities) | $ | 6,464 | $ | 4,843 | $ | 1,705 | $ | (161 | ) | $ | 77 |
Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 | ||||||||||||||||||||||
(in millions) | Investments | Derivatives (net) | Total | Investments | Derivatives (net) | Total | |||||||||||||||||
Balance at beginning of period | $ | 5 | $ | (135 | ) | $ | (130 | ) | $ | 4 | $ | 2 | $ | 6 | |||||||||
Total pretax realized or unrealized gains included in comprehensive income | 1 | — | 1 | — | — | — | |||||||||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||||||||||
Purchases | — | 55 | 55 | — | 34 | 34 | |||||||||||||||||
Sales | (6 | ) | — | (6 | ) | — | — | — | |||||||||||||||
Settlements | — | (9 | ) | (9 | ) | — | (6 | ) | (6 | ) | |||||||||||||
Total (losses) gains included on the Condensed Consolidated Balance Sheet | — | (2 | ) | (2 | ) | — | 4 | 4 | |||||||||||||||
Balance at end of period | $ | — | $ | (91 | ) | $ | (91 | ) | $ | 4 | $ | 34 | $ | 38 |
Six Months Ended June 30, 2017 | Six Months Ended June 30, 2016 | ||||||||||||||||||||||
(in millions) | Investments | Derivatives (net) | Total | Investments | Derivatives (net) | Total | |||||||||||||||||
Balance at beginning of period | $ | 5 | $ | (166 | ) | $ | (161 | ) | $ | 5 | $ | 10 | $ | 15 | |||||||||
Total pretax realized or unrealized gains included in comprehensive income | 1 | — | 1 | — | — | — | |||||||||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||||||||||
Purchases | — | 55 | 55 | — | 34 | 34 | |||||||||||||||||
Sales | (6 | ) | — | (6 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Settlements | — | (18 | ) | (18 | ) | — | (13 | ) | (13 | ) | |||||||||||||
Total gains included on the Condensed Consolidated Balance Sheet | — | 38 | 38 | — | 3 | 3 | |||||||||||||||||
Balance at end of period | $ | — | $ | (91 | ) | $ | (91 | ) | $ | 4 | $ | 34 | $ | 38 |
June 30, 2017 | |||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not categorized | ||||||||||
NDTF equity securities | $ | 2,441 | $ | 2,364 | $ | — | $ | — | $ | 77 | |||||
NDTF debt securities | 1,049 | 141 | 908 | — | — | ||||||||||
Derivative assets | 8 | — | 8 | — | — | ||||||||||
Total assets | 3,498 | 2,505 | 916 | — | 77 | ||||||||||
Derivative liabilities | (26 | ) | — | (26 | ) | — | — | ||||||||
Net assets | $ | 3,472 | $ | 2,505 | $ | 890 | $ | — | $ | 77 |
December 31, 2016 | |||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not categorized | ||||||||||
NDTF equity securities | $ | 2,245 | $ | 2,168 | $ | — | $ | — | $ | 77 | |||||
NDTF debt securities | 1,013 | 178 | 835 | — | — | ||||||||||
Other AFS debt securities | 3 | — | — | 3 | — | ||||||||||
Derivative assets | 33 | — | 33 | — | — | ||||||||||
Total assets | 3,294 | 2,346 | 868 | 3 | 77 | ||||||||||
Derivative liabilities | (16 | ) | — | (16 | ) | — | — | ||||||||
Net assets | $ | 3,278 | $ | 2,346 | $ | 852 | $ | 3 | $ | 77 |
Investments | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||
Balance at beginning of period | 3 | $ | 3 | $ | 3 | 3 | |||||||
Total pretax realized or unrealized gains included in comprehensive income | 1 | — | 1 | — | |||||||||
Purchases, sales, issuances and settlements: | |||||||||||||
Sales | (4 | ) | — | (4 | ) | — | |||||||
Balance at end of period | $ | — | $ | 3 | $ | — | $ | 3 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||
NDTF equity securities | $ | 1,981 | $ | 1,981 | $ | — | $ | 1,861 | $ | 1,861 | $ | — | |||||||
NDTF debt securities | 1,121 | 452 | 669 | 1,065 | 454 | 611 | |||||||||||||
Other AFS debt securities | 59 | 12 | 47 | 65 | 21 | 44 | |||||||||||||
Derivative assets | 15 | — | 15 | 85 | — | 85 | |||||||||||||
Total assets | 3,176 | 2,445 | 731 | 3,076 | 2,336 | 740 | |||||||||||||
Derivative liabilities | (35 | ) | — | (35 | ) | (25 | ) | — | (25 | ) | |||||||||
Net assets | $ | 3,141 | $ | 2,445 | $ | 696 | $ | 3,051 | $ | 2,336 | $ | 715 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||
NDTF equity securities | $ | 1,607 | $ | 1,607 | $ | — | $ | 1,505 | $ | 1,505 | $ | — | |||||||
NDTF debt securities and other | 772 | 226 | 546 | 708 | 207 | 501 | |||||||||||||
Other AFS debt securities and other | 1 | 1 | — | 1 | 1 | — | |||||||||||||
Derivative assets | 8 | — | 8 | 46 | — | 46 | |||||||||||||
Total assets | 2,388 | 1,834 | 554 | 2,260 | 1,713 | 547 | |||||||||||||
Derivative liabilities | (8 | ) | — | (8 | ) | (7 | ) | — | (7 | ) | |||||||||
Net assets | $ | 2,380 | $ | 1,834 | $ | 546 | $ | 2,253 | $ | 1,713 | $ | 540 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||
NDTF equity securities | $ | 374 | $ | 374 | $ | — | $ | 356 | $ | 356 | $ | — | |||||||
NDTF debt securities and other | 349 | 226 | 123 | 357 | 247 | 110 | |||||||||||||
Other AFS debt securities and other | 48 | 1 | 47 | 48 | 4 | 44 | |||||||||||||
Derivative assets | 6 | — | 6 | 39 | — | 39 | |||||||||||||
Total assets | 777 | 601 | 176 | 800 | 607 | 193 | |||||||||||||
Derivative liabilities | (20 | ) | — | (20 | ) | (12 | ) | — | (12 | ) | |||||||||
Net assets | $ | 757 | $ | 601 | $ | 156 | $ | 788 | $ | 607 | $ | 181 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||
(in millions) | Total Fair Value | Level 2 | Level 3 | Total Fair Value | Level 2 | Level 3 | |||||||||||||
Derivative assets | $ | 3 | $ | — | $ | 3 | $ | 5 | $ | — | $ | 5 | |||||||
Derivative liabilities | (5 | ) | (5 | ) | — | (6 | ) | (6 | ) | — | |||||||||
Net (liabilities) assets | $ | (2 | ) | $ | (5 | ) | $ | 3 | $ | (1 | ) | $ | (6 | ) | $ | 5 |
Derivatives (net) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance at beginning of period | $ | 1 | $ | — | $ | 5 | $ | 3 | |||||||
Purchases, sales, issuances and settlements: | |||||||||||||||
Purchases | 3 | 5 | 3 | 5 | |||||||||||
Settlements | (1 | ) | — | (2 | ) | (2 | ) | ||||||||
Total losses included on the Condensed Consolidated Balance Sheet | — | — | (3 | ) | (1 | ) | |||||||||
Balance at end of period | $ | 3 | $ | 5 | $ | 3 | $ | 5 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Other AFS equity securities | $ | 87 | $ | 87 | $ | — | $ | — | $ | 79 | $ | 79 | $ | — | $ | — | |||||||||
Other AFS debt securities and other | 31 | — | 31 | — | 31 | — | 31 | — | |||||||||||||||||
Derivative assets | 54 | 3 | — | 51 | 16 | — | — | 16 | |||||||||||||||||
Total assets | 172 | 90 | 31 | 51 | 126 | 79 | 31 | 16 | |||||||||||||||||
Derivative liabilities | — | — | — | — | (2 | ) | (2 | ) | — | — | |||||||||||||||
Net assets | $ | 172 | $ | 90 | $ | 31 | $ | 51 | $ | 124 | $ | 77 | $ | 31 | $ | 16 |
Derivatives (net) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance at beginning of period | $ | 9 | $ | 2 | $ | 16 | $ | 7 | |||||||
Purchases, sales, issuances and settlements: | |||||||||||||||
Purchases | 52 | 29 | 52 | 29 | |||||||||||
Settlements | (9 | ) | (6 | ) | (16 | ) | (11 | ) | |||||||
Total (losses) gains included on the Condensed Consolidated Balance Sheet | (1 | ) | 4 | (1 | ) | 4 | |||||||||
Balance at end of period | $ | 51 | $ | 29 | $ | 51 | $ | 29 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||
(in millions) | Total Fair Value | Level 1 | Level 3 | Total Fair Value | Level 1 | Level 3 | |||||||||||||
Other trading equity securities | 2 | 2 | — | $ | 4 | $ | 4 | $ | — | ||||||||||
Other trading debt securities | — | — | — | 1 | 1 | — | |||||||||||||
Derivative assets | 2 | 2 | — | 3 | 3 | — | |||||||||||||
Total assets | 4 | 4 | — | 8 | 8 | — | |||||||||||||
Derivative liabilities | (145 | ) | — | (145 | ) | (187 | ) | — | (187 | ) | |||||||||
Net (liabilities) assets | $ | (141 | ) | $ | 4 | $ | (145 | ) | $ | (179 | ) | $ | 8 | $ | (187 | ) |
Derivatives (net) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance at beginning of period | $ | (145 | ) | $ | (126 | ) | $ | (187 | ) | $ | (149 | ) | |||
Total (losses) gains and settlements | — | (64 | ) | 42 | (41 | ) | |||||||||
Balance at end of period | $ | (145 | ) | $ | (190 | ) | $ | (145 | ) | $ | (190 | ) |
June 30, 2017 | ||||||||||||
Fair Value | ||||||||||||
Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | ||||||||
Duke Energy Ohio | ||||||||||||
Financial Transmission Rights (FTRs) | $ | 3 | RTO auction pricing | FTR price – per megawatt-hour (MWh) | $ | (5.24 | ) | - | $ | 1.82 | ||
Duke Energy Indiana | ||||||||||||
FTRs | 51 | RTO auction pricing | FTR price – per MWh | (1.65 | ) | - | 6.66 | |||||
Piedmont | ||||||||||||
Natural gas contracts | (145 | ) | Discounted cash flow | Forward natural gas curves – price per million British thermal unit (MMBtu) | 2.21 | - | 3.78 | |||||
Duke Energy | ||||||||||||
Total Level 3 derivatives | $ | (91 | ) |
December 31, 2016 | ||||||||||||
Fair Value | ||||||||||||
Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | ||||||||
Duke Energy Ohio | ||||||||||||
FTRs | $ | 5 | RTO auction pricing | FTR price – per MWh | $ | 0.77 | - | $ | 3.52 | |||
Duke Energy Indiana | ||||||||||||
FTRs | 16 | RTO auction pricing | FTR price – per MWh | (0.83 | ) | - | 9.32 | |||||
Piedmont | ||||||||||||
Natural gas contracts | (187 | ) | Discounted cash flow | Forward natural gas curves – price per MMBtu | 2.31 | - | 4.18 | |||||
Duke Energy | ||||||||||||
Total Level 3 derivatives | $ | (166 | ) |
June 30, 2017 | December 31, 2016 | ||||||||||||||
(in millions) | Book Value | Fair Value | Book Value | Fair Value | |||||||||||
Duke Energy | $ | 49,515 | $ | 51,947 | $ | 47,895 | $ | 49,161 | |||||||
Duke Energy Carolinas | 9,524 | 10,657 | 9,603 | 10,494 | |||||||||||
Progress Energy | 18,145 | 20,101 | 17,541 | 19,107 | |||||||||||
Duke Energy Progress | 6,760 | 7,266 | 7,011 | 7,357 | |||||||||||
Duke Energy Florida | 6,979 | 7,753 | 6,125 | 6,728 | |||||||||||
Duke Energy Ohio | 1,977 | 2,155 | 1,884 | 2,020 | |||||||||||
Duke Energy Indiana | 3,784 | 4,379 | 3,786 | 4,260 | |||||||||||
Piedmont | 1,946 | 2,107 | 1,821 | 1,933 |
Duke Energy | |||||||||||||||
Duke Energy | Duke Energy | Duke Energy | |||||||||||||
Carolinas | Progress | Florida | |||||||||||||
(in millions) | CRC | DERF | DEPR | DEFR | |||||||||||
Expiration date | December 2018 | December 2018 | February 2019 | April 2019 | |||||||||||
Credit facility amount | $ | 325 | $ | 425 | $ | 300 | $ | 225 | |||||||
Amounts borrowed at June 30, 2017 | 325 | 425 | 297 | 225 | |||||||||||
Amounts borrowed at December 31, 2016 | 325 | 425 | 300 | 225 |
(in millions) | June 30, 2017 | December 31, 2016 | ||||
Receivables of VIEs | $ | 5 | $ | 6 | ||
Current Assets: Regulatory assets | 52 | 50 | ||||
Current Assets: Other | 33 | 53 | ||||
Other Noncurrent Assets: Regulatory assets | 1,121 | 1,142 | ||||
Current Liabilities: Other | 10 | 17 | ||||
Current maturities of long-term debt | 55 | 62 | ||||
Long-Term Debt | 1,189 | 1,217 |
(in millions) | June 30, 2017 | December 31, 2016 | ||||
Current Assets: Other | $ | 293 | $ | 223 | ||
Property, plant and equipment, cost | 3,695 | 3,419 | ||||
Accumulated depreciation and amortization | (518 | ) | (453 | ) | ||
Current maturities of long-term debt | 157 | 198 | ||||
Long-Term Debt | 1,557 | 1,097 | ||||
Deferred income taxes | 300 | 275 | ||||
Other Noncurrent Liabilities: Other | 249 | 252 |
June 30, 2017 | |||||||||||||||||||||||
Duke Energy | Duke | Duke | |||||||||||||||||||||
Pipeline | Commercial | Other | Energy | Energy | |||||||||||||||||||
(in millions) | Investments | Renewables | VIEs | Total | Ohio | Indiana | |||||||||||||||||
Receivables from affiliated companies | $ | — | $ | — | $ | — | $ | — | $ | 44 | $ | 72 | |||||||||||
Investments in equity method unconsolidated affiliates | 800 | 176 | 92 | 1,068 | — | — | |||||||||||||||||
Other noncurrent assets | 12 | — | — | 12 | — | — | |||||||||||||||||
Total assets | $ | 812 | $ | 176 | $ | 92 | $ | 1,080 | $ | 44 | $ | 72 | |||||||||||
Other current liabilities | 10 | — | — | 10 | — | — | |||||||||||||||||
Other noncurrent liabilities | — | — | 13 | 13 | — | — | |||||||||||||||||
Total liabilities | $ | 10 | $ | — | $ | 13 | $ | 23 | $ | — | $ | — | |||||||||||
Net assets | $ | 802 | $ | 176 | $ | 79 | $ | 1,057 | $ | 44 | $ | 72 |
December 31, 2016 | |||||||||||||||||||||||||||
Duke Energy | Duke | Duke | |||||||||||||||||||||||||
Pipeline | Commercial | Other | Energy | Energy | |||||||||||||||||||||||
(in millions) | Investments | Renewables | VIEs | Total | Ohio | Indiana | Piedmont(a) | ||||||||||||||||||||
Receivables from affiliated companies | $ | — | $ | — | $ | — | $ | — | $ | 82 | $ | 101 | $ | — | |||||||||||||
Investments in equity method unconsolidated affiliates | 487 | 174 | 90 | 751 | — | — | 139 | ||||||||||||||||||||
Other noncurrent assets | 12 | — | — | 12 | — | — | — | ||||||||||||||||||||
Total assets | $ | 499 | $ | 174 | $ | 90 | $ | 763 | $ | 82 | $ | 101 | $ | 139 | |||||||||||||
Other current liabilities | — | — | 3 | 3 | — | — | — | ||||||||||||||||||||
Other noncurrent liabilities | — | — | 13 | 13 | — | — | 4 | ||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 16 | $ | 16 | $ | — | $ | — | 4 | ||||||||||||||
Net assets | $ | 499 | $ | 174 | $ | 74 | $ | 747 | $ | 82 | $ | 101 | $ | 135 |
(a) | In April 2017, Piedmont transferred its non-consolidated VIE investments to a wholly owned subsidiary of Duke Energy. See "Pipeline Investments" section below for additional detail. |
Duke Energy | ||||||||||
VIE Investment Amount (in millions) | ||||||||||
Ownership | June 30, | December 31, | ||||||||
Entity Name | Interest | 2017 | 2016 | |||||||
ACP | 47 | % | $ | 507 | $ | 265 | ||||
Sabal Trail | 7.5 | % | 211 | 140 | ||||||
Constitution | 24 | % | 82 | 82 | ||||||
Total | $ | 800 | $ | 487 |
Duke Energy Ohio | Duke Energy Indiana | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Anticipated credit loss ratio | 0.5 | % | 0.5 | % | 0.3 | % | 0.3 | % | |||
Discount rate | 1.9 | % | 1.5 | % | 1.9 | % | 1.5 | % | |||
Receivable turnover rate | 13.4 | % | 13.3 | % | 10.7 | % | 10.6 | % |
Duke Energy Ohio | Duke Energy Indiana | ||||||||||||||
(in millions) | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | |||||||||||
Receivables sold | $ | 210 | $ | 267 | $ | 299 | $ | 306 | |||||||
Less: Retained interests | 44 | 82 | 72 | 101 | |||||||||||
Net receivables sold | $ | 166 | $ | 185 | $ | 227 | $ | 205 |
Duke Energy Ohio | Duke Energy Indiana | ||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||
Receivables sold | $ | 421 | $ | 429 | $ | 954 | $ | 961 | $ | 663 | $ | 623 | $ | 1,327 | $ | 1,258 | |||||||||||||||
Loss recognized on sale | 3 | 2 | 5 | 5 | 3 | 2 | 6 | 5 | |||||||||||||||||||||||
Cash flows | |||||||||||||||||||||||||||||||
Cash proceeds from receivables sold | $ | 428 | $ | 427 | $ | 987 | $ | 964 | $ | 658 | $ | 612 | $ | 1,351 | $ | 1,255 | |||||||||||||||
Collection fees received | — | — | — | — | 1 | 1 | 1 | 1 | |||||||||||||||||||||||
Return received on retained interests | 1 | — | 2 | 1 | 1 | 1 | 3 | 2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions, except per-share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income from continuing operations attributable to Duke Energy common stockholders excluding impact of participating securities | $ | 687 | $ | 621 | $ | 1,402 | $ | 1,195 | |||||||
Weighted average shares outstanding – basic | 700 | 689 | 700 | 689 | |||||||||||
Equity Forwards | — | 1 | — | — | |||||||||||
Weighted average shares outstanding – diluted | 700 | 690 | 700 | 689 | |||||||||||
Earnings per share from continuing operations attributable to Duke Energy common stockholders | |||||||||||||||
Basic | $ | 0.98 | $ | 0.90 | $ | 2.00 | $ | 1.73 | |||||||
Diluted | $ | 0.98 | $ | 0.90 | $ | 2.00 | $ | 1.73 | |||||||
Potentially dilutive items excluded from the calculation(a) | 2 | 2 | 2 | 2 | |||||||||||
Dividends declared per common share | $ | 0.855 | $ | 0.825 | $ | 1.71 | $ | 1.65 |
(a) | Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Restricted stock unit awards | $ | 12 | $ | 10 | $ | 20 | $ | 17 | |||||||
Performance awards | 6 | 5 | 13 | 10 | |||||||||||
Pretax stock-based compensation cost | $ | 18 | $ | 15 | $ | 33 | $ | 27 | |||||||
Tax benefit associated with stock-based compensation expense | $ | 7 | $ | 5 | $ | 12 | $ | 9 | |||||||
Stock-based compensation costs capitalized | — | 1 | 1 | 2 |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 40 | $ | 12 | $ | 12 | $ | 6 | $ | 5 | $ | 1 | $ | 2 | $ | 3 | |||||||||||||||
Interest cost on projected benefit obligation | 82 | 20 | 25 | 12 | 13 | 5 | 7 | 3 | |||||||||||||||||||||||
Expected return on plan assets | (136 | ) | (36 | ) | (43 | ) | (21 | ) | (21 | ) | (7 | ) | (11 | ) | (6 | ) | |||||||||||||||
Amortization of actuarial loss | 36 | 8 | 14 | 6 | 7 | 1 | 3 | 3 | |||||||||||||||||||||||
Amortization of prior service credit | (6 | ) | (2 | ) | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||||
Other | 2 | — | 1 | 1 | — | — | — | 1 | |||||||||||||||||||||||
Net periodic pension costs | $ | 18 | $ | 2 | $ | 8 | $ | 4 | $ | 4 | $ | — | $ | 1 | $ | 3 |
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 37 | $ | 12 | $ | 10 | $ | 6 | $ | 5 | $ | 1 | $ | 2 | $ | 2 | |||||||||||||||
Interest cost on projected benefit obligation | 83 | 22 | 27 | 13 | 14 | 5 | 7 | 3 | |||||||||||||||||||||||
Expected return on plan assets | (129 | ) | (36 | ) | (42 | ) | (20 | ) | (21 | ) | (7 | ) | (11 | ) | (6 | ) | |||||||||||||||
Amortization of actuarial loss | 33 | 8 | 13 | 5 | 7 | 1 | 3 | 2 | |||||||||||||||||||||||
Amortization of prior service credit | (4 | ) | (2 | ) | (1 | ) | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Other | 1 | — | — | 1 | — | — | — | — | |||||||||||||||||||||||
Net periodic pension costs | $ | 21 | $ | 4 | $ | 7 | $ | 4 | $ | 5 | $ | — | $ | 1 | $ | — |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 80 | $ | 24 | $ | 24 | $ | 12 | $ | 10 | $ | 2 | $ | 4 | $ | 6 | |||||||||||||||
Interest cost on projected benefit obligation | 164 | 40 | 50 | 24 | 26 | 10 | 14 | 6 | |||||||||||||||||||||||
Expected return on plan assets | (272 | ) | (71 | ) | (86 | ) | (42 | ) | (42 | ) | (14 | ) | (22 | ) | (12 | ) | |||||||||||||||
Amortization of actuarial loss | 72 | 16 | 28 | 12 | 14 | 2 | 6 | 6 | |||||||||||||||||||||||
Amortization of prior service credit | (12 | ) | (4 | ) | (2 | ) | — | — | — | — | (2 | ) | |||||||||||||||||||
Other | 4 | — | 2 | 1 | — | — | — | 1 | |||||||||||||||||||||||
Net periodic pension costs | $ | 36 | $ | 5 | $ | 16 | $ | 7 | $ | 8 | $ | — | $ | 2 | $ | 5 |
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 73 | $ | 24 | $ | 21 | $ | 12 | $ | 10 | $ | 2 | $ | 4 | $ | 5 | |||||||||||||||
Interest cost on projected benefit obligation | 166 | 43 | 53 | 25 | 28 | 10 | 14 | 5 | |||||||||||||||||||||||
Expected return on plan assets | (258 | ) | (71 | ) | (84 | ) | (41 | ) | (42 | ) | (14 | ) | (21 | ) | (12 | ) | |||||||||||||||
Amortization of actuarial loss | 66 | 16 | 27 | 11 | 14 | 2 | 6 | 4 | |||||||||||||||||||||||
Amortization of prior service credit | (8 | ) | (4 | ) | (2 | ) | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Other | 4 | 1 | 1 | 1 | — | — | — | — | |||||||||||||||||||||||
Net periodic pension costs | $ | 43 | $ | 9 | $ | 16 | $ | 7 | $ | 10 | $ | — | $ | 3 | $ | 1 |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest cost on projected benefit obligation | 3 | 1 | 1 | — | — | ||||||||||||||
Amortization of actuarial loss | 2 | — | 1 | — | — | ||||||||||||||
Net periodic pension costs | $ | 5 | $ | 1 | $ | 2 | $ | — | $ | — |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest cost on projected benefit obligation | 3 | 1 | 1 | 1 | 1 | ||||||||||||||
Amortization of actuarial loss | 2 | — | — | — | — | ||||||||||||||
Net periodic pension costs | $ | 6 | $ | 1 | $ | 1 | $ | 1 | $ | 1 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest cost on projected benefit obligation | 6 | 1 | 2 | 1 | 1 | ||||||||||||||
Amortization of actuarial loss | 4 | — | 2 | — | — | ||||||||||||||
Net periodic pension costs | $ | 10 | $ | 1 | $ | 4 | $ | 1 | $ | 1 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Duke | Duke | Duke | |||||||||||||||||
Duke | Energy | Progress | Energy | Energy | |||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | ||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest cost on projected benefit obligation | 7 | 1 | 2 | 1 | 1 | ||||||||||||||
Amortization of actuarial loss | 4 | — | 1 | — | — | ||||||||||||||
Net periodic pension costs | $ | 12 | $ | 1 | $ | 3 | $ | 1 | $ | 1 |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest cost on accumulated post-retirement benefit obligation | 9 | 2 | 3 | 2 | 2 | — | — | — | |||||||||||||||||||||||
Expected return on plan assets | (4 | ) | (2 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Amortization of actuarial loss (gain) | 2 | (1 | ) | 5 | 3 | 2 | (1 | ) | — | — | |||||||||||||||||||||
Amortization of prior service credit | (29 | ) | (2 | ) | (21 | ) | (13 | ) | (7 | ) | — | — | — | ||||||||||||||||||
Net periodic other post-retirement benefit costs | $ | (21 | ) | $ | (3 | ) | $ | (13 | ) | $ | (8 | ) | $ | (3 | ) | $ | (1 | ) | $ | — | $ | — |
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest cost on accumulated post-retirement benefit obligation | 9 | 2 | 3 | 2 | 1 | 1 | 1 | — | |||||||||||||||||||||||
Expected return on plan assets | (4 | ) | (2 | ) | — | — | — | — | (1 | ) | — | ||||||||||||||||||||
Amortization of actuarial loss (gain) | 2 | (1 | ) | 6 | 3 | 3 | (1 | ) | — | — | |||||||||||||||||||||
Amortization of prior service credit | (36 | ) | (3 | ) | (25 | ) | (17 | ) | (9 | ) | — | — | — | ||||||||||||||||||
Net periodic other post-retirement benefit costs | $ | (28 | ) | $ | (4 | ) | $ | (16 | ) | $ | (12 | ) | $ | (5 | ) | $ | — | $ | — | $ | — |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest cost on accumulated post-retirement benefit obligation | 18 | 4 | 7 | 4 | 4 | — | — | — | |||||||||||||||||||||||
Expected return on plan assets | (7 | ) | (4 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Amortization of actuarial loss (gain) | 4 | (2 | ) | 10 | 6 | 4 | (1 | ) | — | — | |||||||||||||||||||||
Amortization of prior service credit | (58 | ) | (4 | ) | (42 | ) | (27 | ) | (15 | ) | — | — | — | ||||||||||||||||||
Net periodic other post-retirement benefit costs | $ | (41 | ) | $ | (6 | ) | $ | (25 | ) | $ | (17 | ) | $ | (7 | ) | $ | (1 | ) | $ | — | $ | — |
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service cost | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest cost on accumulated post-retirement benefit obligation | 17 | 4 | 7 | 4 | 3 | 1 | 2 | 1 | |||||||||||||||||||||||
Expected return on plan assets | (7 | ) | (4 | ) | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||||||
Amortization of actuarial loss (gain) | 3 | (2 | ) | 11 | 6 | 5 | (1 | ) | (1 | ) | — | ||||||||||||||||||||
Amortization of prior service credit | (71 | ) | (6 | ) | (51 | ) | (34 | ) | (18 | ) | — | — | — | ||||||||||||||||||
Net periodic other post-retirement benefit costs | $ | (56 | ) | $ | (8 | ) | $ | (33 | ) | $ | (24 | ) | $ | (10 | ) | $ | — | $ | — | $ | — |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||
2017 | $ | 39 | $ | 13 | $ | 12 | $ | 8 | $ | 4 | $ | 1 | $ | 2 | $ | 1 | |||||||||||||||
2016 | 39 | 13 | 12 | 8 | 4 | 1 | 2 | 1 | |||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2017 | $ | 104 | $ | 35 | $ | 30 | $ | 21 | $ | 9 | $ | 2 | $ | 5 | $ | 3 | |||||||||||||||
2016 | 91 | 31 | 27 | 19 | 8 | 2 | 4 | 3 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Duke Energy | 32.1 | % | 28.8 | % | 32.3 | % | 29.6 | % | |||
Duke Energy Carolinas | 34.7 | % | 35.1 | % | 35.0 | % | 34.6 | % | |||
Progress Energy | 33.4 | % | 36.0 | % | 33.7 | % | 36.3 | % | |||
Duke Energy Progress | 31.9 | % | 35.5 | % | 33.0 | % | 35.4 | % | |||
Duke Energy Florida | 36.8 | % | 37.6 | % | 36.7 | % | 37.7 | % | |||
Duke Energy Ohio | 34.8 | % | 34.3 | % | 35.1 | % | 29.2 | % | |||
Duke Energy Indiana | 39.4 | % | 36.1 | % | 39.4 | % | 33.1 | % | |||
Piedmont | 38.5 | % | 40.0 | % | 37.9 | % | 38.0 | % |
• | Costs to Achieve Mergers represent charges that result from strategic acquisitions. |
• | Cost Savings Initiatives represent severance charges related to companywide initiatives, excluding merger integration, to standardize processes and systems, leverage technology and workforce optimization. |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
(in millions, except per-share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||
GAAP Reported Earnings/GAAP Reported EPS | $ | 686 | $ | 0.98 | $ | 509 | $ | 0.74 | |||||||
Adjustments: | |||||||||||||||
Costs to Achieve Mergers(a) | 19 | 0.03 | 69 | 0.10 | |||||||||||
Cost Savings Initiatives(b) | — | — | 15 | 0.02 | |||||||||||
Discontinued Operations(c) | 2 | — | 146 | 0.21 | |||||||||||
Adjusted Earnings/Adjusted Diluted EPS | $ | 707 | $ | 1.01 | $ | 739 | $ | 1.07 |
(a) | Net of tax of $11 million in 2017 and $42 million in 2016. |
(b) | Net of tax of $9 million in 2016. |
(c) | The 2016 amount is net of tax of $49 million and primarily represents an impairment charge related to certain assets in Central America that were sold in 2016. |
• | Lower regulated electric revenues due to less favorable weather in the current year; |
• | The prior year operating results of the International Disposal Group, which was sold in December 2016; and |
• | Higher financing costs, primarily due to the Piedmont acquisition. |
• | Higher regulated electric revenues from increased pricing and riders driven by new rates in Duke Energy Progress South Carolina, base rate adjustments in Florida, and energy efficiency rider revenues in North Carolina; |
• | Additional earnings from investments in the Atlantic Coast Pipeline (ACP) and Sabal Trail natural gas pipelines; and |
• | Improved resources and new wind projects placed in service at Commercial Renewables. |
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
(in millions, except per-share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||
GAAP Reported Earnings/GAAP Reported EPS | $ | 1,402 | $ | 2.00 | $ | 1,203 | $ | 1.74 | |||||||
Adjustments: | |||||||||||||||
Costs to Achieve Mergers(a) | 29 | 0.05 | 143 | 0.21 | |||||||||||
Cost Savings Initiatives(b) | — | — | 27 | 0.04 | |||||||||||
Discontinued Operations(c) | 2 | — | 143 | 0.21 | |||||||||||
Adjusted Earnings/Adjusted Diluted EPS | $ | 1,433 | $ | 2.05 | $ | 1,516 | $ | 2.20 |
(a) | Net of tax of $17 million in 2017 and $88 million in 2016. |
(b) | Net of tax of $17 million in 2016. |
(c) | The 2016 amount is net of tax of $49 million and primarily represents an impairment charge related to certain assets in Central America that were sold in 2016. |
• | Lower regulated electric revenues due to unfavorable weather in the current year; and |
• | The prior year operating results of the International Disposal Group, which was sold in December 2016. The 2016 operating results included a benefit from the revaluation of deferred income taxes. See Note 16 to the Condensed Consolidated Financial Statements, "Income Taxes," for additional information. |
• | Higher regulated electric revenues from increased pricing and riders driven by new rates in Duke Energy Progress South Carolina, base rate adjustments in Florida, and energy efficiency rider revenues in North Carolina, as well as growth in weather-normal retail volumes; |
• | Lower operations and maintenance expense, net of amounts recoverable in rates, at Electric Utilities and Infrastructure resulting from ongoing cost efficiency efforts and significant storm costs in the prior year; and |
• | Piedmont's earnings contribution, net of financing costs, due to the acquisition on October 3, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||
Operating Revenues | $ | 5,158 | $ | 5,001 | $ | 157 | $ | 10,105 | $ | 10,090 | $ | 15 | |||||||||||
Operating Expenses | |||||||||||||||||||||||
Fuel used in electric generation and purchased power | 1,549 | 1,509 | 40 | 3,003 | 3,086 | (83 | ) | ||||||||||||||||
Operation, maintenance and other | 1,265 | 1,230 | 35 | 2,536 | 2,528 | 8 | |||||||||||||||||
Depreciation and amortization | 714 | 701 | 13 | 1,451 | 1,410 | 41 | |||||||||||||||||
Property and other taxes | 270 | 263 | 7 | 531 | 525 | 6 | |||||||||||||||||
Impairment charges | 2 | 1 | 1 | 2 | 3 | (1 | ) | ||||||||||||||||
Total operating expenses | 3,800 | 3,704 | 96 | 7,523 | 7,552 | (29 | ) | ||||||||||||||||
Gains on Sales of Other Assets and Other, net | 1 | 1 | — | 4 | 2 | 2 | |||||||||||||||||
Operating Income | 1,359 | 1,298 | 61 | 2,586 | 2,540 | 46 | |||||||||||||||||
Other Income and Expenses | 76 | 77 | (1 | ) | 155 | 140 | 15 | ||||||||||||||||
Interest Expense | 305 | 272 | 33 | 620 | 542 | 78 | |||||||||||||||||
Income Before Income Taxes | 1,130 | 1,103 | 27 | 2,121 | 2,138 | (17 | ) | ||||||||||||||||
Income Tax Expense | 401 | 399 | 2 | 757 | 770 | (13 | ) | ||||||||||||||||
Segment Income | $ | 729 | $ | 704 | $ | 25 | $ | 1,364 | $ | 1,368 | $ | (4 | ) | ||||||||||
Duke Energy Carolinas Gigawatt-hours (GWh) sales | 21,243 | 20,757 | 486 | 42,024 | 42,382 | (358 | ) | ||||||||||||||||
Duke Energy Progress GWh sales | 15,562 | 16,829 | (1,267 | ) | 31,199 | 33,978 | (2,779 | ) | |||||||||||||||
Duke Energy Florida GWh sales | 10,740 | 10,646 | 94 | 19,045 | 19,102 | (57 | ) | ||||||||||||||||
Duke Energy Ohio GWh sales | 5,901 | 5,796 | 105 | 11,960 | 11,903 | 57 | |||||||||||||||||
Duke Energy Indiana GWh sales | 7,972 | 8,157 | (185 | ) | 16,180 | 17,551 | (1,371 | ) | |||||||||||||||
Total Electric Utilities and Infrastructure GWh sales | 61,418 | 62,185 | (767 | ) | 120,408 | 124,916 | (4,508 | ) | |||||||||||||||
Net proportional Megawatt (MW) capacity in operation | 48,877 | 49,620 | (743 | ) |
• | a $147 million increase in rider revenues related to energy efficiency programs, Duke Energy Florida's nuclear asset securitization revenues, Midwest transmission and distribution revenues, and Duke Energy Indiana's clean coal equipment, as well as increased retail pricing due to Duke Energy Florida's base rate adjustments for the Osprey acquisition and Hines Chillers, and the Duke Energy Progress South Carolina rate case; |
• | a $32 million increase in weather-normal sales volumes to retail customers in the current year; and |
• | an $11 million increase in transmission and other miscellaneous revenues. |
• | a $61 million decrease in retail sales, net of fuel revenues, due to less favorable weather in the current year. |
• | a $40 million increase in fuel expense, including purchased power, primarily due to higher costs at fossil plants; |
• | a $35 million increase in operations and maintenance (O&M) expense primarily due to higher operational costs that are recoverable in rates; and |
• | a $13 million increase in depreciation and amortization expense primarily due to additional plant in service. |
• | a $256 million increase in rider revenues related to energy efficiency programs, Duke Energy Florida's nuclear asset securitization revenues, Midwest transmission and distribution revenues, and Duke Energy Indiana's clean coal equipment, as well as increased retail pricing due to Duke Energy Florida's base rate adjustments for the Osprey acquisition and Hines Chillers, and the Duke Energy Progress South Carolina rate case; |
• | a $43 million increase in weather-normal sales volumes to retail customers in the current year; |
• | a $21 million increase in transmission and other miscellaneous revenues; and |
• | a $6 million increase in wholesale power revenues, net of sharing and fuel. |
• | a $220 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year; and |
• | a $94 million decrease in fuel revenues due to lower retail sales volumes, partially offset by higher fuel prices included in rates. |
• | an $83 million decrease in fuel expense, including purchased power, primarily due to lower retail sales volumes, partially offset by higher fuel prices. |
• | a $41 million increase in depreciation and amortization expense primarily due to additional plant in service; and |
• | an $8 million increase in operations and maintenance expense primarily due to higher operational costs that are recoverable in rates, partially offset by lower storm restoration costs and O&M efficiencies, including decreased labor costs. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||
Operating Revenues | $ | 301 | $ | 99 | $ | 202 | $ | 971 | $ | 269 | $ | 702 | |||||||||||
Operating Expenses | |||||||||||||||||||||||
Cost of natural gas | 76 | 9 | 67 | 334 | 58 | 276 | |||||||||||||||||
Operation, maintenance and other | 93 | 28 | 65 | 198 | 60 | 138 | |||||||||||||||||
Depreciation and amortization | 57 | 20 | 37 | 114 | 40 | 74 | |||||||||||||||||
Property and other taxes | 26 | 14 | 12 | 56 | 32 | 24 | |||||||||||||||||
Total operating expenses | 252 | 71 | 181 | 702 | 190 | 512 | |||||||||||||||||
Operating Income | 49 | 28 | 21 | 269 | 79 | 190 | |||||||||||||||||
Other Income and Expenses | 20 | 3 | 17 | 38 | 6 | 32 | |||||||||||||||||
Interest Expense | 26 | 6 | 20 | 52 | 13 | 39 | |||||||||||||||||
Income Before Income Taxes | 43 | 25 | 18 | 255 | 72 | 183 | |||||||||||||||||
Income Tax Expense | 16 | 9 | 7 | 95 | 24 | 71 | |||||||||||||||||
Segment Income | $ | 27 | $ | 16 | $ | 11 | $ | 160 | $ | 48 | $ | 112 | |||||||||||
Piedmont LDC throughput (dekatherms) (a) | 94,013,754 | — | 94,013,754 | 227,290,541 | — | 227,290,541 | |||||||||||||||||
Duke Energy Midwest LDC throughput (Mcf) | 12,204,767 | 12,714,127 | (509,360 | ) | 43,035,766 | 47,455,646 | (4,419,880 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||
Operating Revenues | $ | 110 | $ | 112 | $ | (2 | ) | $ | 238 | $ | 226 | $ | 12 | ||||||||||
Operating Expenses | |||||||||||||||||||||||
Operation, maintenance and other | 58 | 82 | (24 | ) | 135 | 155 | (20 | ) | |||||||||||||||
Depreciation and amortization | 38 | 32 | 6 | 77 | 62 | 15 | |||||||||||||||||
Property and other taxes | 8 | 6 | 2 | 17 | 12 | 5 | |||||||||||||||||
Total operating expenses | 104 | 120 | (16 | ) | 229 | 229 | — | ||||||||||||||||
Gains on Sales of Other Assets and Other, net | 2 | 1 | 1 | 4 | 2 | 2 | |||||||||||||||||
Operating Income (Loss) | 8 | (7 | ) | 15 | 13 | (1 | ) | 14 | |||||||||||||||
Other Income and Expenses | (1 | ) | — | (1 | ) | (2 | ) | (2 | ) | — | |||||||||||||
Interest Expense | 23 | 12 | 11 | 42 | 23 | 19 | |||||||||||||||||
Loss Before Income Taxes | (16 | ) | (19 | ) | 3 | (31 | ) | (26 | ) | (5 | ) | ||||||||||||
Income Tax Benefit | (42 | ) | (29 | ) | (13 | ) | (81 | ) | (62 | ) | (19 | ) | |||||||||||
Less: Loss Attributable to Noncontrolling Interests | — | (1 | ) | 1 | (1 | ) | (1 | ) | — | ||||||||||||||
Segment Income | $ | 26 | $ | 11 | $ | 15 | $ | 51 | $ | 37 | $ | 14 | |||||||||||
Renewable plant production, GWh | 2,231 | 1,758 | 473 | 4,516 | 3,818 | 698 | |||||||||||||||||
Net proportional MW capacity in operation | 2,908 | 1,978 | 930 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||
Operating Revenues | $ | 35 | $ | 30 | $ | 5 | $ | 68 | $ | 59 | $ | 9 | |||||||||||
Operating Expenses | |||||||||||||||||||||||
Fuel used in electric generation and purchased power | 14 | 12 | 2 | 29 | 23 | 6 | |||||||||||||||||
Operation, maintenance and other | 18 | 39 | (21 | ) | 26 | 75 | (49 | ) | |||||||||||||||
Depreciation and amortization | 26 | 37 | (11 | ) | 52 | 71 | (19 | ) | |||||||||||||||
Property and other taxes | 4 | 8 | (4 | ) | 7 | 17 | (10 | ) | |||||||||||||||
Impairment charges | 7 | — | 7 | 7 | 2 | 5 | |||||||||||||||||
Total operating expenses | 69 | 96 | (27 | ) | 121 | 188 | (67 | ) | |||||||||||||||
Gains on Sales of Other Assets and Other, net | 6 | 6 | — | 11 | 11 | — | |||||||||||||||||
Operating Loss | (28 | ) | (60 | ) | 32 | (42 | ) | (118 | ) | 76 | |||||||||||||
Other Income and Expenses | 28 | 19 | 9 | 49 | 36 | 13 | |||||||||||||||||
Interest Expense | 139 | 191 | (52 | ) | 273 | 396 | (123 | ) | |||||||||||||||
Loss Before Income Taxes | (139 | ) | (232 | ) | 93 | (266 | ) | (478 | ) | 212 | |||||||||||||
Income Tax Benefit | (48 | ) | (126 | ) | 78 | (100 | ) | (227 | ) | 127 | |||||||||||||
Less: Income Attributable to Noncontrolling Interests | 3 | 1 | 2 | 5 | 4 | 1 | |||||||||||||||||
Net Expense | $ | (94 | ) | $ | (107 | ) | $ | 13 | $ | (171 | ) | $ | (255 | ) | $ | 84 |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | $ | 3,445 | $ | 3,415 | $ | 30 | |||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power | 863 | 810 | 53 | ||||||||
Operation, maintenance and other | 951 | 988 | (37 | ) | |||||||
Depreciation and amortization | 523 | 534 | (11 | ) | |||||||
Property and other taxes | 139 | 138 | 1 | ||||||||
Total operating expenses | 2,476 | 2,470 | 6 | ||||||||
Operating Income | 969 | 945 | 24 | ||||||||
Other Income and Expenses | 73 | 82 | (9 | ) | |||||||
Interest Expense | 206 | 214 | (8 | ) | |||||||
Income Before Income Taxes | 836 | 813 | 23 | ||||||||
Income Tax Expense | 293 | 281 | 12 | ||||||||
Net Income | $ | 543 | $ | 532 | $ | 11 |
Increase (Decrease) over prior year | 2017 | |
Residential sales | (4.1 | )% |
General service sales | (0.5 | )% |
Industrial sales | 0.1 | % |
Wholesale power sales | 5.5 | % |
Joint dispatch sales | 181.6 | % |
Total sales | (0.8 | )% |
Average number of customers | 1.5 | % |
• | a $70 million increase in rider revenues related to energy efficiency programs; |
• | a $67 million increase in fuel revenues primarily due to changes in generation mix; |
• | a $16 million increase in weather-normal retail sales volumes, net of fuel revenues; and |
• | a $5 million increase in wholesale power revenues, net of sharing and fuel, primarily due to additional volumes for customers served under long-term contracts. |
• | a $132 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year. |
• | a $53 million increase in fuel expense primarily due to changes in generation mix and higher costs at fossil plants, partially offset by lower retail sales. |
• | a $37 million decrease in operations and maintenance expense primarily due to lower expenses at generating plants, lower storm restoration costs, and lower severance expenses, partially offset by higher energy efficiency program costs and higher distribution maintenance expenses; and |
• | an $11 million decrease in depreciation and amortization expense primarily due to lower amortization of certain regulatory assets, partially offset by higher depreciation due to additional plant in service. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | $ | 4,571 | $ | 4,680 | $ | (109 | ) | ||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power | 1,557 | 1,712 | (155 | ) | |||||||
Operation, maintenance and other | 1,078 | 1,117 | (39 | ) | |||||||
Depreciation and amortization | 624 | 586 | 38 | ||||||||
Property and other taxes | 246 | 239 | 7 | ||||||||
Impairment charges | 2 | 3 | (1 | ) | |||||||
Total operating expenses | 3,507 | 3,657 | (150 | ) | |||||||
Gains on Sales of Other Assets and Other, net | 14 | 12 | 2 | ||||||||
Operating Income | 1,078 | 1,035 | 43 | ||||||||
Other Income and Expenses | 45 | 48 | (3 | ) | |||||||
Interest Expense | 402 | 320 | 82 | ||||||||
Income Before Income Taxes | 721 | 763 | (42 | ) | |||||||
Income Tax Expense | 243 | 277 | (34 | ) | |||||||
Net Income | 478 | 486 | (8 | ) | |||||||
Less: Net Income Attributable to Noncontrolling Interests | 5 | 5 | — | ||||||||
Net Income Attributable to Parent | $ | 473 | $ | 481 | $ | (8 | ) |
• | a $168 million decrease in fuel revenues driven by lower retail sales and changes in generation mix at Duke Energy Progress, as well as decreased demand and capacity rates to retail customers at Duke Energy Florida, partially offset by an increase in fuel rates to retail customers; and |
• | a $72 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year. |
• | a $67 million increase in rider revenues related to energy efficiency programs at Duke Energy Progress, as well as nuclear asset securitization beginning in July 2016 and extended uprate project revenues beginning in 2017 at Duke Energy Florida; and |
• | a $41 million increase in retail pricing due to the base rate adjustment for the Osprey acquisition and the completion of the Hines Energy Complex Chiller Uprate Project, as well as the Duke Energy Progress South Carolina rate case. |
• | a $155 million decrease in fuel expense primarily due to lower retail sales and changes in generation mix at Duke Energy Progress, as well as decreased purchased power and lower deferred fuel and capacity costs at Duke Energy Florida; and |
• | a $39 million decrease in operations and maintenance expense due to lower storm restoration costs at Duke Energy Progress and lower planned outage costs at Duke Energy Florida. |
• | a $38 million increase in depreciation and amortization expense primarily due to additional plant in service and nuclear regulatory asset amortization at Duke Energy Florida. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | $ | 2,418 | $ | 2,520 | $ | (102 | ) | ||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power | 739 | 872 | (133 | ) | |||||||
Operation, maintenance and other | 680 | 707 | (27 | ) | |||||||
Depreciation and amortization | 354 | 350 | 4 | ||||||||
Property and other taxes | 80 | 79 | 1 | ||||||||
Total operating expenses | 1,853 | 2,008 | (155 | ) | |||||||
Gains on Sales of Other Assets and Other, net | 3 | 1 | 2 | ||||||||
Operating Income | 568 | 513 | 55 | ||||||||
Other Income and Expenses | 33 | 29 | 4 | ||||||||
Interest Expense | 152 | 127 | 25 | ||||||||
Income Before Income Taxes | 449 | 415 | 34 | ||||||||
Income Tax Expense | 148 | 147 | 1 | ||||||||
Net Income and Comprehensive Income | $ | 301 | $ | 268 | $ | 33 |
Increase (Decrease) over prior period | 2017 | |
Residential sales | (3.0 | )% |
General service sales | (0.9 | )% |
Industrial sales | 2.1 | % |
Wholesale power sales | (17.9 | )% |
Joint dispatch sales | (46.8 | )% |
Total sales | (8.2 | )% |
Average number of customers | 1.3 | % |
• | a $146 million decrease in fuel revenues driven by lower retail sales and changes in generation mix; and |
• | a $37 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year. |
• | a $29 million increase in rider revenues related to energy efficiency programs; |
• | a $28 million increase in wholesale power revenues, net of fuel, primarily due to higher peak demand; and |
• | an $18 million increase in retail pricing due to the Duke Energy Progress South Carolina rate case. |
• | a $133 million decrease in fuel expense primarily due to lower retail sales and changes in generation mix; and |
• | a $27 million decrease in operations and maintenance expense primarily due to lower storm restoration costs. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | $ | 2,150 | $ | 2,157 | $ | (7 | ) | ||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power | 817 | 841 | (24 | ) | |||||||
Operation, maintenance and other | 394 | 404 | (10 | ) | |||||||
Depreciation and amortization | 269 | 236 | 33 | ||||||||
Property and other taxes | 166 | 160 | 6 | ||||||||
Impairment charges | 2 | 3 | (1 | ) | |||||||
Total operating expenses | 1,648 | 1,644 | 4 | ||||||||
Operating Income | 502 | 513 | (11 | ) | |||||||
Other Income and Expenses | 30 | 19 | 11 | ||||||||
Interest Expense | 140 | 81 | 59 | ||||||||
Income Before Income Taxes | 392 | 451 | (59 | ) | |||||||
Income Tax Expense | 144 | 170 | (26 | ) | |||||||
Net Income | $ | 248 | $ | 281 | $ | (33 | ) |
Increase (Decrease) over prior period | 2017 | |
Residential sales | (3.1 | )% |
General service sales | (0.1 | )% |
Industrial sales | (1.4 | )% |
Wholesale and other | 32.9 | % |
Total sales | (0.3 | )% |
Average number of customers | 1.5 | % |
• | a $35 million decrease in retail sales, net of fuel revenues, due to unfavorable weather in the current year; |
• | a $30 million decrease in wholesale power revenues primarily due to contracts that expired in the prior year; and |
• | a $22 million decrease in fuel and capacity revenues primarily due to a decrease in capacity rates to retail customers, partially offset by an increase in fuel rates to retail customers. |
• | a $38 million increase in rider revenues primarily due to nuclear asset securitization beginning in July 2016 and extended power uprate project revenues beginning in 2017; |
• | a $23 million increase in retail pricing due to the base rate adjustment for the Osprey acquisition and the completion of the Hines Energy Complex Chiller Uprate Project; and |
• | a $20 million increase in weather-normal sales volumes to retail customers in the current year. |
• | a $33 million increase in depreciation and amortization expense primarily due to nuclear regulatory asset amortization, as well as additional plant in service. |
• | a $24 million decrease in fuel expense primarily due to decreased purchased power and lower deferred fuel and capacity costs, partially offset by higher generation costs; and |
• | a $10 million decrease in operations and maintenance expense primarily due to lower planned outage costs. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | |||||||||||
Regulated electric | $ | 665 | $ | 663 | $ | 2 | |||||
Regulated natural gas | 270 | 269 | 1 | ||||||||
Nonregulated electric and other | 20 | 12 | 8 | ||||||||
Total operating revenues | 955 | 944 | 11 | ||||||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power – regulated | 183 | 211 | (28 | ) | |||||||
Fuel used in electric generation and purchased power – nonregulated | 29 | 23 | 6 | ||||||||
Cost of natural gas | 64 | 58 | 6 | ||||||||
Operation, maintenance and other | 261 | 241 | 20 | ||||||||
Depreciation and amortization | 130 | 125 | 5 | ||||||||
Property and other taxes | 139 | 136 | 3 | ||||||||
Impairment Charges | 1 | — | 1 | ||||||||
Total operating expenses | 807 | 794 | 13 | ||||||||
Gains on Sales of Other Assets and Other, net | — | 1 | (1 | ) | |||||||
Operating Income | 148 | 151 | (3 | ) | |||||||
Other Income and Expenses | 8 | 3 | 5 | ||||||||
Interest Expense | 45 | 41 | 4 | ||||||||
Income from Continuing Operations Before Income Taxes | 111 | 113 | (2 | ) | |||||||
Income Tax Expense from Continuing Operations | 39 | 33 | 6 | ||||||||
Income from Continuing Operations | 72 | 80 | (8 | ) | |||||||
Income from Discontinued Operations, net of tax | — | 2 | (2 | ) | |||||||
Net Income | $ | 72 | $ | 82 | $ | (10 | ) |
Increase (Decrease) over prior year | 2017 | |
Residential sales | (0.9 | )% |
General service sales | (1.1 | )% |
Industrial sales | 0.1 | % |
Wholesale power sales | 178.4 | % |
Total sales | 0.5 | % |
Average number of customers | 0.8 | % |
• | a $24 million increase in rider revenues primarily due to energy efficiency programs and a rate increase for the distribution capital investment rider, partially offset by a decrease in the percentage of income payment plan rider due to a rate decrease; |
• | a $10 million increase in PJM Interconnection, LLC (PJM) transmission revenues; |
• | a $7 million increase in other revenues related to OVEC; and |
• | a $5 million increase in Bulk Power Marketing (BPM) sales. |
• | a $24 million decrease in fuel revenues primarily due to lower electric fuel prices and sales volumes, partially offset by higher costs passed through to natural gas customers due to higher natural gas prices; and |
• | a $13 million decrease in electric retail sales, net of fuel revenues, due to unfavorable weather in the current year. |
• | a $20 million increase in operations and maintenance expense due to higher energy efficiency program costs and higher transmission and distribution operations costs; |
• | a $6 million increase in natural gas costs due to higher gas prices; and |
• | a $5 million increase in depreciation and amortization expense due to additional plant in service. |
• | a $28 million decrease in fuel expense driven by lower sales volumes and lower electric fuel costs. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | $ | 1,500 | $ | 1,416 | $ | 84 | |||||
Operating Expenses | |||||||||||
Fuel used in electric generation and purchased power | 485 | 448 | 37 | ||||||||
Operation, maintenance and other | 366 | 351 | 15 | ||||||||
Depreciation and amortization | 216 | 222 | (6 | ) | |||||||
Property and other taxes | 37 | 45 | (8 | ) | |||||||
Total operating expenses | 1,104 | 1,066 | 38 | ||||||||
Operating Income | 396 | 350 | 46 | ||||||||
Other Income and Expenses | 17 | 10 | 7 | ||||||||
Interest Expense | 88 | 91 | (3 | ) | |||||||
Income Before Income Taxes | 325 | 269 | 56 | ||||||||
Income Tax Expense | 128 | 89 | 39 | ||||||||
Net Income | $ | 197 | $ | 180 | $ | 17 |
Increase (Decrease) over prior year | 2017 | |
Residential sales | (2.5 | )% |
General service sales | (0.3 | )% |
Industrial sales | 0.2 | % |
Wholesale power sales | (29.0 | )% |
Total sales | (7.8 | )% |
Average number of customers | 0.9 | % |
• | a $56 million increase in rider revenues related to Edwardsport Integrated Gasification Combined Cycle (IGCC) and energy efficiency programs; and |
• | a $34 million increase in fuel revenues primarily due to higher purchased power costs passed through to customers and higher financial transmission right (FTR) revenues. |
• | a $37 million increase in fuel and purchased power expense, primarily due to higher purchased power volumes and prices; and |
• | a $15 million increase in operations and maintenance expense due to growth in energy efficiency programs and higher expenses at Edwardsport IGCC. |
• | an $8 million decrease in property and other taxes primarily due to utilization of ITCs. |
Six Months Ended June 30, | |||||||||||
(in millions) | 2017 | 2016 | Variance | ||||||||
Operating Revenues | |||||||||||
Regulated natural gas | $ | 696 | $ | 660 | $ | 36 | |||||
Nonregulated natural gas and other | 5 | 5 | — | ||||||||
Total operating revenues | 701 | 665 | 36 | ||||||||
Operating Expenses | |||||||||||
Cost of natural gas | 270 | 247 | 23 | ||||||||
Operation, maintenance and other | 153 | 147 | 6 | ||||||||
Depreciation and amortization | 71 | 68 | 3 | ||||||||
Property and other taxes | 25 | 22 | 3 | ||||||||
Impairment charges | 7 | — | 7 | ||||||||
Total operating expenses | 526 | 484 | 42 | ||||||||
Operating Income | 175 | 181 | (6 | ) | |||||||
Equity in Earnings of Unconsolidated Affiliates | 5 | 23 | (18 | ) | |||||||
Other income and expenses, net | (1 | ) | — | (1 | ) | ||||||
Total other income and expenses | 4 | 23 | (19 | ) | |||||||
Interest Expense | 39 | 33 | 6 | ||||||||
Income Before Income Taxes | 140 | 171 | (31 | ) | |||||||
Income Tax Expense | 53 | 65 | (12 | ) | |||||||
Net Income | $ | 87 | $ | 106 | $ | (19 | ) |
Increase (Decrease) over prior year | 2017 | |
Residential deliveries | (21.9 | )% |
Commercial deliveries | (17.2 | )% |
Industrial deliveries | (5.0 | )% |
Power generation deliveries | (13.1 | )% |
For resale | (10.6 | )% |
Total throughput deliveries | (13.0 | )% |
Secondary market volumes | 2.5 | % |
Average number of customers | 1.6 | % |
• | a $23 million increase due to higher natural gas costs passed through to customers primarily due to higher natural gas prices; and |
• | a $13 million increase in revenues to residential and commercial customers, net of natural gas costs passed through to customers, primarily due to Integrity Management Rider (IMR) rate adjustments, customer growth and wholesale marketing revenue. |
• | a $23 million increase in costs of natural gas primarily due to higher natural gas prices; |
• | a $6 million increase in operations and maintenance expense primarily due to higher severance and contract labor expenses; and |
• | a $7 million increase due to an impairment of software resulting from planned accounting system and process integration in 2018. |
Six Months Ended | ||||||||
June 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Cash flows provided by (used in): | ||||||||
Operating activities | $ | 2,756 | $ | 3,225 | ||||
Investing activities | (4,324 | ) | (3,608 | ) | ||||
Financing activities | 1,474 | 202 | ||||||
Changes in cash and cash equivalents included in assets held for sale | — | 79 | ||||||
Net decrease in cash and cash equivalents | (94 | ) | (102 | ) | ||||
Cash and cash equivalents at beginning of period | 392 | 383 | ||||||
Cash and cash equivalents at end of period | $ | 298 | $ | 281 |
Six Months Ended | ||||||||
June 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Net income | $ | 1,406 | $ | 1,211 | ||||
Non-cash adjustments to net income | 2,434 | 2,231 | ||||||
Payments for asset retirement obligations | (272 | ) | (263 | ) | ||||
Working capital | (812 | ) | 46 | |||||
Net cash provided by operating activities | $ | 2,756 | $ | 3,225 |
• | an $858 million decrease in cash flows from working capital due to the timing of the payment of accruals; increased taxes accrued resulting from an increased effective tax rate; warmer winter weather; and the absence of the International Disposal Group's operating cash flows. |
• | a $398 million increase in net income after non-cash adjustments, primarily due to higher regulated electric revenues from increased pricing; lower operations and maintenance expense; and the additional Piedmont earnings contribution in the current year. |
Six Months Ended | ||||||||
June 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Capital, investment and acquisition expenditures | $ | (4,218 | ) | $ | (3,529 | ) | ||
Other investing items | (106 | ) | (79 | ) | ||||
Net cash used in investing activities | $ | (4,324 | ) | $ | (3,608 | ) |
• | a $689 million increase in capital, investment and acquisition expenditures due to growth in regulated generation investments and natural gas infrastructure; partially offset by a reduction in Commercial Renewables capital expenditures. |
Six Months Ended | ||||||||
June 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Issuances of long-term debt, net | $ | 1,725 | $ | 2,719 | ||||
Notes payable and commercial paper | 981 | (1,341 | ) | |||||
Dividends paid | (1,200 | ) | (1,140 | ) | ||||
Other financing items | (32 | ) | (36 | ) | ||||
Net cash provided by financing activities | $ | 1,474 | $ | 202 |
• | a $2,322 million decrease in cash outflows for the net payments of notes payable and commercial paper primarily through the use of the proceeds from $1,294 million nuclear asset-recovery bonds issued at Duke Energy Florida in the prior year, further increased by the repayment of commercial paper at the end of 2016 with proceeds from the sale of the international business. |
• | a $994 million decrease in issuances of long-term debt caused by the prior year $1,294 million nuclear asset-recovery bonds issued at Duke Energy Florida net of a $300 million increase in proceeds from net issuances of long-term debt. |
(in millions) | Estimated Cost | ||
Duke Energy | $ | 1,225 | |
Duke Energy Carolinas | 530 | ||
Progress Energy | 350 | ||
Duke Energy Progress | 260 | ||
Duke Energy Florida | 90 | ||
Duke Energy Ohio | 125 | ||
Duke Energy Indiana | 220 |
Duke | Duke | Duke | Duke | Duke | |||||||||||||
Exhibit | Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||
Number | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||
*4.1 | Sixteenth Supplemental Indenture, dated as of June 13, 2017. | X | |||||||||||||||
10.1 | $1,000,000,000 Credit Agreement, dated as of June 14, 2017, among Duke Energy Corporation, the lenders listed therein, The Bank of Nova Scotia, as Administrative Agent, PNC Bank, National Association, Sumitomo Mitsui Banking Corporation and TD Bank, N.A., as Co-Syndication Agents, and Bank of China, New York Branch, BNP Paribas, Santander Bank, N.A. and U.S. Bank National Association, as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on June 14, 2017, File No. 1-32853). | X | |||||||||||||||
10.2 | $250,000,000 Term Loan Credit Agreement, dated as of June 14, 2017, among Piedmont Natural Gas Company, Inc., the lenders listed therein, U.S. Bank National Association, as Administrative Agent, Branch Banking and Trust Company and Regions Bank, as Co-Syndication Agents, and PNC Bank, National Association, as Documentation Agent (incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on June 14, 2017, File No. 1-32853). | X | |||||||||||||||
*10.3 | Duke Energy Corporation Director Compensation Program Summary | X | |||||||||||||||
*12 | Computation of Ratio of Earnings to Fixed Charges – DUKE ENERGY CORPORATION. | X | |||||||||||||||
*31.1.1 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.2 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.3 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.4 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.5 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.6 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.7 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.1.8 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X |
*31.2.1 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.2 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.3 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.4 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.5 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.6 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.7 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*31.2.8 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.3 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.4 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.5 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.6 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.7 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.1.8 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.3 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.4 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X |
*32.2.5 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.6 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.7 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*32.2.8 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||
*101.INS | XBRL Instance Document. | X | X | X | X | X | X | X | X | ||||||||
*101.SCH | XBRL Taxonomy Extension Schema Document. | X | X | X | X | X | X | X | X | ||||||||
*101.CAL | XBRL Taxonomy Calculation Linkbase Document. | X | X | X | X | X | X | X | X | ||||||||
*101.LAB | XBRL Taxonomy Label Linkbase Document. | X | X | X | X | X | X | X | X | ||||||||
*101.PRE | XBRL Taxonomy Presentation Linkbase Document. | X | X | X | X | X | X | X | X | ||||||||
*101.DEF | XBRL Taxonomy Definition Linkbase Document. | X | X | X | X | X | X | X | X |
DUKE ENERGY CORPORATION DUKE ENERGY CAROLINAS, LLC PROGRESS ENERGY, INC. DUKE ENERGY PROGRESS, LLC DUKE ENERGY FLORIDA, LLC DUKE ENERGY OHIO, INC. DUKE ENERGY INDIANA, LLC PIEDMONT NATURAL GAS COMPANY, INC. | ||
Date: | August 3, 2017 | /s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||
Date: | August 3, 2017 | /s/ WILLIAM E. CURRENS JR. |
William E. Currens Jr. Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) |
Section 1.01. | Establishment .....................................................................................................1 |
Section 1.02. | Definitions .........................................................................................................2 |
Section 1.03. | Payment of Principal and Interest ......................................................................2 |
Section 1.04. | Denominations ...................................................................................................3 |
Section 1.05. | Global Securities ................................................................................................3 |
Section 1.06. | Redemption ........................................................................................................4 |
Section 1.07. | Paying Agent ......................................................................................................5 |
Section 1.08. | Legends ..............................................................................................................6 |
Section 2.01. | Recitals by the Corporation ................................................................................6 |
Section 2.02. | Ratification and Incorporation of Original Indenture .........................................6 |
Section 2.03. | Executed in Counterparts ....................................................................................6 |
Duke Energy Corporation | ||
By: | /s/John L. Sullivan, III | |
Name: | John L. Sullivan, III | |
Title: | Assistant Treasurer | |
The Bank of New York Mellon Trust Company, N.A., as Trustee | ||
By: | /s/Valere Boyd | |
Name: | Valere Boyd | |
Title: | Vice President |
No. | Rule 144A CUSIP No. 26441C AV7 |
Regulation S CUSIP No. U2648M AC6 |
Duke Energy Corporation | ||
By: | ||
Name: | ||
Title: |
Dated: June 13, 2017 | The Bank of New York Mellon Trust Company, N.A., as Trustee | |
By: | ||
Authorized Signatory |
TEN COM - as tenants in common | UNIF GIFT MIN ACT - ______Custodian ______ under (Cust) (Minor) Uniform Gifts to Minors Act ——————————— (State) | ||
TEN ENT - as tenants by the entireties | |||
JT TEN - as joint tenants with rights of survivorship and not as tenants in common | |||
Dated: | ||||
NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever. | ||||
Signature Guarantee: |
Dated: | The Bank of New York Mellon Trust Company, N.A., as Trustee | |
By: | ||
Authorized Signatory |
Dated: | ||||
NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever. | ||||
Signature Guarantee: |
Date | Amount of increase in Principal Amount of this Global Security | Amounts of decrease in Principle Amount of this Global Security | Principal Amount of this Global Security following each decrease or increase | Signature of authorized signatory of Trustee or Securities Registrar | ||||
Type of Fee | Fee |
Annual Board Retainer (Cash) | $125,000 |
Additional Annual Board Retainer (Cash) (up to one) If director meets one or more of the following during the calendar year: - Serves as a member of a special committee - Attends (in person) more than two offsite committee meetings (excluding the annual Board retreat) - Attends more than thirty (30) meetings of the Board and its regular standing committees | $10,000 |
Annual Board Retainer (Stock) | $160,000 |
Annual Non-Executive Chairman of the Board Retainer, if applicable | $100,000 |
Annual Lead Director Retainer, if applicable | $40,000 |
Annual Audit Committee Chair Retainer | $25,000 |
Annual Compensation Committee Chair/Nuclear Oversight Committee Chair Retainer | $20,000 |
Annual Committee Chair Retainer (Other Committees) | $15,000 |
Six Months Ended June 30, | Years Ended December 31, | ||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 (a) | |||||||||||||||||
Earnings as defined for fixed charges calculation | |||||||||||||||||||||||
Add: | |||||||||||||||||||||||
Pretax income from continuing operations(b) | $ | 2,010 | $ | 3,668 | $ | 3,832 | $ | 3,636 | $ | 3,204 | $ | 1,622 | |||||||||||
Fixed charges | 1,078 | 2,170 | 1,859 | 1,871 | 1,886 | 1,510 | |||||||||||||||||
Distributed income of equity investees | 5 | 30 | 104 | 136 | 109 | 151 | |||||||||||||||||
Deduct: | |||||||||||||||||||||||
Preferred dividend requirements of subsidiaries | — | — | — | — | — | 3 | |||||||||||||||||
Interest capitalized | 1 | 10 | 18 | 7 | 8 | 30 | |||||||||||||||||
Total earnings | $ | 3,092 | $ | 5,858 | $ | 5,777 | $ | 5,636 | $ | 5,191 | $ | 3,250 | |||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest on debt, including capitalized portions | $ | 1,030 | $ | 2,066 | $ | 1,733 | $ | 1,733 | $ | 1,760 | $ | 1,420 | |||||||||||
Estimate of interest within rental expense | 48 | 104 | 126 | 138 | 126 | 87 | |||||||||||||||||
Preferred dividend requirements of subsidiaries | — | — | — | — | — | 3 | |||||||||||||||||
Total fixed charges | $ | 1,078 | $ | 2,170 | $ | 1,859 | $ | 1,871 | $ | 1,886 | $ | 1,510 | |||||||||||
Ratio of earnings to fixed charges | 2.9 | 2.7 | 3.1 | 3.0 | 2.8 | 2.2 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends combined(c) | 2.9 | 2.7 | 3.1 | 3.0 | 2.8 | 2.2 |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Corporation; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chairman, President and Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Carolinas, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Progress Energy, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Progress, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Florida, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Ohio, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Indiana, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Piedmont Natural Gas Company, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Corporation; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Carolinas, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Progress Energy, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Progress, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Florida, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Ohio, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Duke Energy Indiana, LLC; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
1) | I have reviewed this quarterly report on Form 10-Q of Piedmont Natural Gas Company, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Acts Rules 13a–15(f) and 15d–15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy. |
/s/ LYNN J. GOOD |
Lynn J. Good Chairman, President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Carolinas. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Progress Energy. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Progress. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Florida. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Ohio. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Indiana. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Piedmont. |
/s/ LYNN J. GOOD |
Lynn J. Good Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Carolinas. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Progress Energy. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Progress. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Florida. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Ohio. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Duke Energy Indiana. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Piedmont. |
/s/ STEVEN K. YOUNG |
Steven K. Young Executive Vice President and Chief Financial Officer |
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