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Debt and Credit Facilities
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Debt And Credit Facilities DEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions).
 
 
 
 
 
Nine Months Ended September 30, 2020
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2020(a)
Jun 2030
 
2.450
%
 
$
500

 
$
500

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

May 2020(b)
Jun 2050
 
3.350
%
 
400

 
—

 
—

 
 
 
—

 
—

 
—

 
400

August 2020(c)
Feb 2022
 
0.430
%
(d) 
700

 
—

 
—

 
700

 
—

 
—

 
—

 
—

September 2020(e)
Sep 2025
 
0.900
%
 
650

 
650

 
—

 
—

 
—

 
—

 
—

 
—

September 2020(e)
Jun 2030
 
2.450
%
 
350

 
350

 
—

 
—

 
—

 
—

 
—

 
—

First Mortgage Bonds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 2020(f)
Feb 2030
 
2.450
%
 
500

 
—

 
500

 
—

 
—

 
—

 
—

 
—

January 2020(f)
Aug 2049
 
3.200
%
 
400

 
—

 
400

 
—

 
—

 
—

 
—

 
—

March 2020(g)
Apr 2050
 
2.750
%
 
550

 
—

 
—

 
—

 
—

 
—

 
550

 
—

May 2020(b)
Jun 2030
 
2.125
%
 
400

 
—

 
—

 
—

 
—

 
400

 
—

 
—

June 2020(b)
Jun 2030
 
1.750
%
 
500

 
—

 
—

 
—

 
500

 
—

 
—

 
—

August 2020(h)
Aug 2050
 
2.500
%
 
600

 
—

 
—

 
600

 
—

 
—

 
—

 
—

Total issuances
 
 
 
 
$
5,550

 
$
1,500


$
900


$
1,300

 
$
500


$
400


$
550

 
$
400


(a)
Debt issued to repay $500 million borrowing made under Duke Energy (Parent) revolving credit facility in March 2020, and for general corporate purposes.
(b)
Debt issued to repay short-term debt and for general corporate purposes.
(c)
Debt issued to repay $700 million two-year term loan facility expiring in December 2020.
(d)
Debt issuance has a floating interest rate.
(e)
Debt issued to repay a portion of outstanding commercial paper, to repay a portion of Duke Energy (Parent)'s outstanding $1.7 billion term loan due March 2021 and for general corporate purposes.
(f)
Debt issued to repay at maturity $450 million first mortgage bonds due June 2020 and for general corporate purposes.
(g)
Debt issued to repay at maturity $500 million first mortgage bonds due July 2020 and to pay down short-term debt.
(h)
Debt issued to repay at maturity $300 million first mortgage bonds due September 2020 and for general corporate purposes.
CURRENT MATURITIES OF LONG-TERM DEBT
The following table shows the significant components of Current maturities of long-term debt on the Condensed 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

 
September 30, 2020

Unsecured Debt
 
 
 
 
 
Progress Energy, Inc
January 2021
 
4.400
%
 
$
500

Duke Energy (Parent)
May 2021
 
0.765
%
(a) 
500

Piedmont
June 2021
 
4.240
%
 
160

Duke Energy (Parent)
September 2021
 
3.550
%
 
500

Duke Energy (Parent)
September 2021
 
1.800
%
 
750

Secured Debt
 
 
 
 
 
Duke Energy Florida
April 2021
 
1.035
%
(a) 
250

First Mortgage Bonds
 
 
 
 
 
Duke Energy Carolinas
June 2021
 
3.900
%
 
500

Duke Energy Florida
August 2021
 
3.100
%
 
300

Duke Energy Progress
September 2021
 
3.000
%
 
500

Duke Energy Progress
September 2021
 
8.625
%
 
100

Other(b)
 
 
 
 
609

Current maturities of long-term debt
 
 
 
 
$
4,669

(a)    Debt has a floating interest rate.
(b)    Includes finance lease obligations, amortizing debt and small bullet maturities.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2020, Duke Energy amended its existing $8 billion Master Credit Facility to extend the termination date to March 2025. 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.
The table below includes the current borrowing sublimits and available capacity under these credit facilities.
 
September 30, 2020
 


 
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

 
$
1,475

 
$
1,250

 
$
800

 
$
625

 
$
600

 
$
600

Reduction to backstop issuances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper(b)
(2,007
)
 
(693
)
 
(300
)
 
(308
)
 
(62
)
 
(106
)
 
(229
)
 
(309
)
Outstanding letters of credit
(40
)
 
(34
)
 
(4
)
 
(2
)
 
—

 
—

 
—

 
—

Tax-exempt bonds
(81
)
 
—

 
—

 
—

 
—

 
—

 
(81
)
 
—

Available capacity under the Master Credit Facility
$
5,872


$
1,923


$
1,171


$
940


$
738


$
519


$
290

 
$
291

(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.
Term Loan Facility
In response to market volatility and ongoing liquidity impacts from COVID-19, in March 2020, Duke Energy (Parent) entered into a $1.5 billion, 364-day Term Loan Credit Agreement, borrowing the full $1.5 billion available on March 19, 2020. The term loan contains a provision for increasing the amount available for borrowing by up to $500 million. Duke Energy (Parent) exercised this provision on March 27, 2020, borrowing an additional $188 million. Proceeds were used to reduce outstanding commercial paper and for general corporate purposes. In the third quarter of 2020, Duke Energy (Parent) repaid $844 million of the loan. Refer to Note 1 for additional information on the COVID-19 pandemic.
Other Credit Facilities
 
September 30, 2020
(in millions)
Facility size

 
Amount drawn

Duke Energy (Parent) Three-Year Revolving Credit Facility
$
1,000

 
$
500


In August 2020, Duke Energy Progress repaid its $700 million two-year term loan facility.