Debt and Credit Facilities

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt and Credit Facilities

DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize outstanding debt.

	December 31, 2019
	Weighted
	Average					Duke						Duke			Duke			Duke			Duke
	Interest		Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Rate		Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2020-2078	4.02	%	$	22,477		$	1,150		$	3,650		$	700		$	350		$	1,110		$	405		$	2,399
Secured debt, maturing 2020-2052	3.30	%	4,537			544			1,722			335			1,387			—			—			—
First mortgage bonds, maturing 2020-2049(a)	4.13	%	27,977			9,557			13,800			7,575			6,225			1,449			3,169			—
Finance leases, maturing 2022-2051(b)	6.60	%	969			179			405			307			98			—			10			—
Tax-exempt bonds, maturing 2022-2041(c)	2.90	%	730			243			48			48			—			77			362			—
Notes payable and commercial paper(d)	1.98	%	3,588			—			—			—			—			—			—			—
Money pool/intercompany borrowings			—			329			1,970			216			—			337			180			476
Fair value hedge carrying value adjustment			5			5			—			—			—			—			—			—
Unamortized debt discount and premium, net(e)			1,294			(23		)	(29		)	(17		)	(11		)	(30		)	(19		)	(2		)
Unamortized debt issuance costs(f)			(316		)	(55		)	(111		)	(40		)	(62		)	(12		)	(20		)	(13		)
Total debt	3.92	%	$	61,261		$	11,929		$	21,455		$	9,124		$	7,987		$	2,931		$	4,087		$	2,860
Short-term notes payable and commercial paper			(3,135		)	—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings			—			(29		)	(1,821		)	(66		)	—			(312		)	(30		)	(476		)
Current maturities of long-term debt(g)			(3,141		)	(458		)	(1,577		)	(1,006		)	(571		)	—			(503		)	—
Total long-term debt(g)			$	54,985		$	11,442		$	18,057		$	8,052		$	7,416		$	2,619		$	3,554		$	2,384

(a) Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b) Duke Energy includes $44 million and $419 million of finance lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c) Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d) Includes $625 million classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 14 days.

(e) Duke Energy includes $1,275 million and $137 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f) Duke Energy includes $37 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g) Refer to Note 18 for additional information on amounts from consolidated VIEs.

	December 31, 2018
	Weighted
	Average					Duke						Duke			Duke			Duke			Duke
	Interest		Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Rate		Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2019-2078	4.26	%	$	20,955		$	1,150		$	3,800		$	50		$	350		$	1,000		$	408		$	2,150
Secured debt, maturing 2020-2037	3.69	%	4,297			450			1,703			300			1,403			—			—			—
First mortgage bonds, maturing 2019-2048(a)	4.32	%	25,628			8,759			13,100			7,574			5,526			1,099			2,670			—
Finance leases, maturing 2019-2051(b)	5.06	%	941			109			251			137			114			2			10			—
Tax-exempt bonds, maturing 2019-2041(c)	3.40	%	941			243			48			48			—			77			572			—
Notes payable and commercial paper(d)	2.73	%	4,035			—			—			—			—			—			—			—
Money pool/intercompany borrowings			—			739			1,385			444			108			299			317			198
Fair value hedge carrying value adjustment			5			5			—			—			—			—			—			—
Unamortized debt discount and premium, net(e)			1,434			(23		)	(29		)	(15		)	(11		)	(31		)	(8		)	(1		)
Unamortized debt issuance costs(f)			(297		)	(54		)	(112		)	(40		)	(61		)	(7		)	(20		)	(11		)
Total debt	4.13	%	$	57,939		$	11,378		$	20,146		$	8,498		$	7,429		$	2,439		$	3,949		$	2,336
Short-term notes payable and commercial paper			(3,410		)	—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings			—			(439		)	(1,235		)	(294		)	(108		)	(274		)	(167		)	(198		)
Current maturities of long-term debt(g)			(3,406		)	(6		)	(1,672		)	(603		)	(270		)	(551		)	(63		)	(350		)
Total long-term debt(g)			$	51,123		$	10,933		$	17,239		$	7,601		$	7,051		$	1,614		$	3,719		$	1,788

(a) Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b) Duke Energy includes $63 million and $531 million of finance lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c) Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d) Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper programs was 16 days.

(e) Duke Energy includes $1,380 million and $156 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f) Duke Energy includes $41 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g) Refer to Note 18 for additional information on amounts from consolidated VIEs.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.

(in millions)	Maturity Date	Interest Rate			December 31, 2019
Unsecured Debt
Duke Energy (Parent)	June 2020	2.100	%		$	330
Duke Energy Progress	December 2020	2.510	%	(a)	700
First Mortgage Bonds
Duke Energy Florida	January 2020	1.850	%		250
Duke Energy Florida	April 2020	4.550	%		250
Duke Energy Carolinas	June 2020	4.300	%		450
Duke Energy Indiana	July 2020	3.750	%		500
Duke Energy Progress	September 2020	2.065	%	(a)	300
Other(b)					361
Current maturities of long-term debt					$	3,141

(a) Debt has a floating interest rate.

(b) Includes finance lease obligations, amortizing debt and small bullet maturities.

Maturities and Call Options

The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable, commercial paper and money pool borrowings and debt issuance costs for the Subsidiary Registrants.

	December 31, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy(a)		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
2020	$	3,141	$	458	$	1,578	$	1,006	$	572	—		$	503	$	—
2021	5,053		504		2,257		932		825		50		70		160
2022	4,334		830		1,048		508		90		—		94		—
2023	3,112		1,006		398		319		79		325		3		45
2024	1,965		306		227		160		67		25		154		40
Thereafter	39,542		8,875		14,267		6,190		6,427		2,261		3,272		2,155
Total long-term debt, including current maturities	$	57,147	$	11,979	$	19,775	$	9,115	$	8,060	$	2,661	$	4,096	$	2,400

(a) Excludes $1,448 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.

The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.

Short-Term Obligations Classified as Long-Term Debt

Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long-term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.

	December 31, 2019
			Duke		Duke		Duke		Duke
	Duke		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Progress		Ohio		Indiana
Tax-exempt bonds	$	312	$	—	$	—	$	27	$	285
Commercial paper(a)	625		300		150		25		150
Total	$	937	$	300	$	150	$	52	$	435

	December 31, 2018
			Duke		Duke		Duke		Duke
	Duke		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Progress		Ohio		Indiana
Tax-exempt bonds	$	312	$	—	$	—	$	27	$	285
Commercial paper(a)	625		300		150		25		150
Total	$	937	$	300	$	150	$	52	$	435

(a) Progress Energy amounts are equal to Duke Energy Progress amounts.

Summary of Significant Debt Issuances

The following tables summarize significant debt issuances (in millions).

					Year Ended December 31, 2019
							Duke		Duke		Duke		Duke		Duke		Duke
	Maturity	Interest			Duke		Energy		Energy		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate			Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont
Unsecured Debt
March 2019(a)	Mar 2022	2.538	%	(b)	$	300	$	300	$	—	$	—	$	—	$	—	$	—	$	—
March 2019(a)	Mar 2022	3.227	%		300		300		—		—		—		—		—		—
May 2019(e)	Jun 2029	3.500	%		600		—		—		—		—		—		—		600
June 2019(a)	Jun 2029	3.400	%		600		600		—		—		—		—		—		—
June 2019(a)	Jun 2049	4.200	%		600		600		—		—		—		—		—		—
July 2019(g)	Jul 2049	4.320	%		40		—		—		—		—		40		—		—
September 2019(g)	Oct 2025	3.230	%		95		—		—		—		—		95		—		—
September 2019(g)	Oct 2029	3.560	%		75		—		—		—		—		75		—		—
November 2019(h)	Nov 2021	2.167	%	(b)	200		—		—		—		200		—		—		—
First Mortgage Bonds
January 2019(c)	Feb 2029	3.650	%		400		—		—		—		—		400		—		—
January 2019(c)	Feb 2049	4.300	%		400		—		—		—		—		400		—		—
March 2019(d)	Mar 2029	3.450	%		600		—		—		600		—		—		—		—
August 2019(a)	Aug 2029	2.450	%		450		—		450		—		—		—		—		—
August 2019(a)	Aug 2049	3.200	%		350		—		350		—		—		—		—		—
September 2019(f)	Oct 2049	3.250	%		500		—		—		—		—		—		500		—
November 2019(i)	Dec 2029	2.500	%		700		—		—		—		700		—		—		—
Total issuances					$	6,210	$	1,800	$	800	$	600	$	900	$	1,010	$	500	$	600

(a) Debt issued to pay down short-term debt and for general corporate purposes.

(b) Debt issuance has a floating interest rate.

(c) Debt issued to repay at maturity $450 million first mortgage bonds due April 2019, pay down short-term debt and for general corporate purposes.

(d) Debt issued to fund eligible green energy projects in the Carolinas.

(e) Debt issued to repay in full the outstanding $350 million Piedmont unsecured term loan due September 2019, pay down short-term debt and for general corporate purposes.

(f) Debt issued to retire $150 million of pollution control bonds, pay down short-term debt and for general corporate purposes.

(g) Debt issued to repay at maturity $100 million debentures due October 2019, pay down short-term debt and for general corporate purposes.

(h) Debt issued to fund storm restoration costs and for general corporate purposes.

(i) Debt issued to reimburse the payment of existing and new Eligible Green Expenditures in Florida.

In January 2020, Duke Energy Carolinas closed and funded $900 million of first mortgage bonds of which $500 million carry a fixed interest rate of 2.45% and mature February 2030 and $400 million carry a fixed interest rate of 3.20% and mature August 2049. The proceeds will be used to repay at maturity $450 million, 4.30% debentures maturing June 2020, and for general corporate purposes.

				Year Ended December 31, 2018
						Duke		Duke		Duke		Duke
	Maturity	Interest		Duke		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate		Energy		(Parent)		Carolinas		Progress		Florida
Unsecured Debt
March 2018(a)	April 2025	3.950	%	$	250	$	250	$	—	$	—	$	—
May 2018(b)	May 2021	3.114	%	500		500		—		—		—
September 2018(c)	September 2078	5.625	%	500		500		—		—		—
First Mortgage Bonds
March 2018(d)	March 2023	3.050	%	500		—		500		—		—
March 2018(d)	March 2048	3.950	%	500		—		500		—		—
June 2018(e)	July 2028	3.800	%	600		—		—		—		600
June 2018(e)	July 2048	4.200	%	400		—		—		—		400
August 2018(f)	September 2023	3.375	%	300		—		—		300		—
August 2018(f)	September 2028	3.700	%	500		—		—		500		—
November 2018(g)	May 2022	3.350	%	350		—		350		—		—
November 2018(g)	November 2028	3.950	%	650		—		650		—		—
Total issuances				$	5,050	$	1,250	$	2,000	$	800	$	1,000

(a) Debt issued to pay down short-term debt.

(b) Debt issued to pay down short-term debt. Debt issuance has a floating debt rate.

(c) Callable after September 2023 at par. Junior subordinated hybrid debt issued to pay down short-term debt and for general corporate purposes.

(d) Debt issued to repay at maturity a $300 million first mortgage bond due April 2018, pay down intercompany short-term debt and for general corporate purposes.

(e) Debt issued to repay a portion of intercompany short-term debt under the money pool borrowing arrangement and for general corporate purposes.

(f) Debt issued to repay short-term debt and for general corporate purposes.

(g) Debt issued to fund eligible green energy projects, including zero-carbon solar and energy storage, in the Carolinas.

Available Credit Facilities

In March 2019, Duke Energy amended its existing $8 billion Master Credit Facility to extend the termination date to March 2024. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. Duke Energy Carolinas and Duke Energy Progress are also required to each maintain $250 million of available capacity under the Master Credit Facility as security to meet obligations under plea agreements reached with the U.S. Department of Justice in 2015 related to violations at North Carolina facilities with ash basins.

The table below includes the current borrowing sublimits and available capacity under these credit facilities.

	December 31, 2019
				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		$	2,650		$	1,500		$	1,250		$	800	$	600		$	600		$	600
Reduction to backstop issuances
Commercial paper(b)	(2,537		)	(1,119		)	(325		)	(207		)	—		(296		)	(176		)	(414		)
Outstanding letters of credit	(50		)	(42		)	(4		)	(2		)	—		—			—			(2		)
Tax-exempt bonds	(81		)	—			—			—			—		—			(81		)	—
Coal ash set-aside	(500		)	—			(250		)	(250		)	—		—			—			—
Available capacity	$	4,832		$	1,489		$	921		$	791		$	800	$	304		$	343		$	184

(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 in the Consolidated Balance Sheets.

Three-Year Revolving Credit Facility

Duke Energy (Parent) has a $1 billion revolving credit facility. The facility had an initial termination date of June 2020, but in May 2019, Duke Energy extended the termination date of the facility to May 2022. Borrowings under this facility will be used for general corporate purposes. As of December 31, 2019, $500 million has been drawn under this facility. This balance is classified as Long-term debt on Duke Energy's Consolidated Balance Sheets. Any undrawn commitments can be drawn, and borrowings can be prepaid, at any time throughout the term of the facility. The terms and conditions of the facility are generally consistent with those governing Duke Energy's Master Credit Facility.

Duke Energy Progress Term Loan Facility

In December 2018, Duke Energy Progress entered into a two-year term loan facility with commitments totaling $700 million. Borrowings under the facility were used to pay storm-related costs, pay down commercial paper and to partially finance an upcoming bond maturity. As of December 31, 2019, the entire $700 million has been drawn under the term loan. This balance is classified as Current maturities of long-term debt on Duke Energy Progress' Consolidated Balance Sheets.

Piedmont Term Loan Facility

In May 2019, the $350 million Piedmont term loan was paid off in full with proceeds from the $600 million Piedmont debt offering.

Other Debt Matters

In September 2019, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common and preferred stock by Duke Energy. The expired Form S-3 was amended in March 2019, to allow Duke Energy to issue preferred stock.

Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $1.5 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2019, and 2018, was $1,049 million and $1,010 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets.

Money Pool

The Subsidiary Registrants, excluding Progress Energy, are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy, separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent), may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly owned subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.

Restrictive Debt Covenants

The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65% for each borrower, excluding Piedmont, and 70% for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2019, each of the Duke Energy Registrants was in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses.

Other Loans

As of December 31, 2019, and 2018, Duke Energy had loans outstanding of $777 million, including $36 million at Duke Energy Progress and $741 million, including $37 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.