Revenue

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

Duke Energy earns substantially all of its revenues through its reportable segments, Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.

Electric Utilities and Infrastructure

Electric Utilities and Infrastructure earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.

The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:



	Remaining Performance Obligations
(in millions)	2019		2020		2021		2022		2023		Thereafter		Total
Progress Energy	$	63	$	121	$	87	$	82	$	39	$	42	$	434
Duke Energy Progress	4		9		9		9		9		9		49
Duke Energy Florida	59		112		78		73		30		33		385
Duke Energy Indiana	5		10		5		—		—		—		20

Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.

Gas Utilities and Infrastructure

Gas Utilities and Infrastructure earns its revenues through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.

Fixed capacity payments under long-term contracts for the Gas Utilities and Infrastructure segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:



	Remaining Performance Obligations
(in millions)	2019		2020		2021		2022		2023		Thereafter		Total
Piedmont	$	34	$	69	$	65	$	64	$	61	$	432	$	725

Commercial Renewables

Commercial Renewables earns the majority of its revenues through long-term PPAs and generally sells all of its wind and solar facility output, electricity and RECs to customers. The majority of these PPAs have historically been accounted for as leases. For PPAs that are not accounted for as leases, the delivery of electricity and the delivery of RECs are considered separate performance obligations.

Other

The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.

Disaggregated Revenues

Disaggregated revenues are presented as follows:



	Three Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,304	$	679	$	1,243	$	496	$	747	$	159	$	225	$	—
General	1,584		531		750		339		411		105		197		—
Industrial	759		289		231		164		67		36		201		—
Wholesale	527		109		351		309		42		9		59		—
Other revenues	187		68		99		44		55		25		27		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	5,361	$	1,676	$	2,674	$	1,352	$	1,322	$	334	$	709	$	—

Gas Utilities and Infrastructure
Residential	$	146	$	—	$	—	$	—	$	—	$	64	$	—	$	82
Commercial	85		—		—		—		—		26		—		59
Industrial	29		—		—		—		—		3		—		24
Power Generation	—		—		—		—		—		—		—		13
Other revenues	22		—		—		—		—		2		—		19
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	282	$	—	$	—	$	—	$	—	$	95	$	—	$	197

Commercial Renewables
Revenue from contracts with customers	$	46	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other
Revenue from contracts with customers	$	6	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	5,695	$	1,676	$	2,674	$	1,352	$	1,322	$	429	$	709	$	197

Other revenue sources^(a)	$	178	$	37	$	70	$	35	$	31	$	4	$	5	$	12
Total revenues	$	5,873	$	1,713	$	2,744	$	1,387	$	1,353	$	433	$	714	$	209



	Three Months Ended June 30, 2018
			Duke				Duke		Duke		Duke			Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy			Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio			Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,185	$	659	$	1,099	$	452	$	648	$	181		$	245	$	—
General	1,481		501		678		300		377		110			188		—
Industrial	736		286		224		159		66		33			192		—
Wholesale	515		115		322		287		34		2			77		—
Other revenues	194		85		96		47		50		23			20		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	5,111	$	1,646	$	2,419	$	1,245	$	1,175	$	349		$	722	$	—

Gas Utilities and Infrastructure
Residential	$	153	$	—	$	—	$	—	$	—	$	66		$	—	$	87
Commercial	87		—		—		—		—		28			—		59
Industrial	31		—		—		—		—		3			—		28
Power Generation	—		—		—		—		—		—			—		14
Other revenues	23		—		—		—		—		6			—		17
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	294	$	—	$	—	$	—	$	—	$	103		$	—	$	205

Commercial Renewables
Revenue from contracts with customers	$	47	$	—	$	—	$	—	$	—	$	—		$	—	$	—

Other
Revenue from contracts with customers	$	15	$	—	$	—	$	—	$	—	$	10		$	—	$	—
Total revenue from contracts with customers	$	5,467	$	1,646	$	2,419	$	1,245	$	1,175	$	462		$	722	$	205

Other revenue sources^(a)	$	176	$	26	$	79	$	46	$	28	$	(3	)	$	16	$	10
Total revenues	$	5,643	$	1,672	$	2,498	$	1,291	$	1,203	$	459		$	738	$	215

(a)

Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.



	Six Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	4,674	$	1,439	$	2,357	$	1,032	$	1,325	$	348	$	531	$	—
General	3,011		1,027		1,382		645		737		208		394		—
Industrial	1,470		555		453		325		128		69		391		—
Wholesale	1,068		228		704		624		80		23		113		—
Other revenues	359		146		271		169		102		41		44		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	10,582	$	3,395	$	5,167	$	2,795	$	2,372	$	689	$	1,473	$	—

Gas Utilities and Infrastructure
Residential	$	560	$	—	$	—	$	—	$	—	$	176	$	—	$	384
Commercial	291		—		—		—		—		75		—		216
Industrial	77		—		—		—		—		10		—		66
Power Generation	—		—		—		—		—		—		—		26
Other revenues	85		—		—		—		—		10		—		75
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,013	$	—	$	—	$	—	$	—	$	271	$	—	$	767

Commercial Renewables
Revenue from contracts with customers	$	88	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other
Revenue from contracts with customers	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Revenue from contracts with customers	$	11,693	$	3,395	$	5,167	$	2,795	$	2,372	$	960	$	1,473	$	767

Other revenue sources^(a)	$	343	$	62	$	149	$	76	$	67	$	4	$	9	$	21
Total revenues	$	12,036	$	3,457	$	5,316	$	2,871	$	2,439	$	964	$	1,482	$	788



	Six Months Ended June 30, 2018
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	4,535	$	1,440	$	2,211	$	968	$	1,243	$	361	$	523	$	—
General	2,856		973		1,309		599		710		206		366		—
Industrial	1,400		541		432		304		128		63		365		—
Wholesale	1,148		234		768		684		84		2		145		—
Other revenues	333		152		225		132		93		37		37		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	10,272	$	3,340	$	4,945	$	2,687	$	2,258	$	669	$	1,436	$	—

Gas Utilities and Infrastructure
Residential	$	566	$	—	$	—	$	—	$	—	$	177	$	—	$	389
Commercial	288		—		—		—		—		77		—		211
Industrial	79		—		—		—		—		10		—		69
Power Generation	—		—		—		—		—		—		—		27
Other revenues	78		—		—		—		—		12		—		66
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,011	$	—	$	—	$	—	$	—	$	276	$	—	$	762

Commercial Renewables
Revenue from contracts with customers	$	80	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other
Revenue from contracts with customers	$	31	$	—	$	—	$	—	$	—	$	24	$	—	$	—
Total Revenue from contracts with customers	$	11,394	$	3,340	$	4,945	$	2,687	$	2,258	$	969	$	1,436	$	762

Other revenue sources^(a)	$	384	$	95	$	129	$	64	$	60	$	14	$	33	$	6
Total revenues	$	11,778	$	3,435	$	5,074	$	2,751	$	2,318	$	983	$	1,469	$	768

(a)

UNBILLED REVENUE

Unbilled revenues are recognized by applying customer billing rates to the estimated volumes of energy or natural gas delivered but not yet billed. Unbilled revenues can vary significantly from period to period as a result of seasonality, weather, customer usage patterns, customer mix, average price in effect for customer classes, timing of rendering customer bills and meter reading schedules, and the impact of weather normalization or margin decoupling mechanisms.

Unbilled revenues are included within Receivables and Receivables of VIEs on the Condensed Consolidated Balance Sheets as shown in the following table.



(in millions)	June 30, 2019		December 31, 2018
Duke Energy	$	790	$	896
Duke Energy Carolinas	288		313
Progress Energy	270		244
Duke Energy Progress	148		148
Duke Energy Florida	122		96
Duke Energy Ohio	1		2
Duke Energy Indiana	14		23
Piedmont	4		73

Additionally, Duke Energy Ohio and Duke Energy Indiana sell, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 13 for further information. These receivables for unbilled revenues are shown in the table below.



(in millions)	June 30, 2019		December 31, 2018
Duke Energy Ohio	$	65	$	86
Duke Energy Indiana	116		128