Revenue

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

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)	2020		2021		2022		2023		2024		Thereafter		Total
Progress Energy	$	30	$	92	$	94	$	44	$	45	$	58	$	363
Duke Energy Progress	2		8		8		8		8		—		34
Duke Energy Florida	28		84		86		36		37		58		329
Duke Energy Indiana	2		5		—		7		12		36		62

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)	2020		2021		2022		2023		2024		Thereafter		Total
Piedmont	$	17	$	65	$	64	$	61	$	58	$	377	$	642

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 Renewable Energy Certificates (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 September 30, 2020
			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	$	2,936	$	883		$	1,550	$	616	$	934	$	213		$	289		$	—
General	1,804		664			805		384		421		119			212			—
Industrial	797		342			245		179		66		35			175			—
Wholesale	603		117			412		358		54		10			64			—
Other revenues	238		62			167		75		92		23			22			—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,378	$	2,068		$	3,179	$	1,612	$	1,567	$	400		$	762		$	—
Gas Utilities and Infrastructure
Residential	$	112	$	—		$	—	$	—	$	—	$	55		$	—		$	57
Commercial	64		—			—		—		—		20			—			44
Industrial	24		—			—		—		—		3			—			22
Power Generation	—		—			—		—		—		—			—			10
Other revenues	16		—			—		—		—		3			—			11
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	216	$	—		$	—	$	—	$	—	$	81		$	—		$	144
Commercial Renewables
Revenue from contracts with customers	$	57	$	—		$	—	$	—	$	—	$	—		$	—		$	—
Other
Revenue from contracts with customers	$	7	$	—		$	—	$	—	$	—	$	—		$	—		$	—
Total revenue from contracts with customers	$	6,658	$	2,068		$	3,179	$	1,612	$	1,567	$	481		$	762		$	144
Other revenue sources(a)	$	63	$	(10	)	$	18	$	14	$	—	$	(8	)	$	(1	)	$	18
Total revenues	$	6,721	$	2,058		$	3,197	$	1,626	$	1,567	$	473		$	761		$	162

(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.

	Three Months Ended September 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	$	2,923	$	892	$	1,522	$	625	$	897	$	215		$	294		$	—
General	1,885		687		843		399		444		127			225			—
Industrial	869		372		255		189		66		40			204			—
Wholesale	617		113		429		368		61		13			63			—
Other revenues	198		76		118		70		48		18			22			—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,492	$	2,140	$	3,167	$	1,651	$	1,516	$	413		$	808		$	—
Gas Utilities and Infrastructure
Residential	$	113	$	—	$	—	$	—	$	—	$	53		$	—		$	59
Commercial	68		—		—		—		—		21			—			47
Industrial	26		—		—		—		—		4			—			25
Power Generation	—		—		—		—		—		—			—			13
Other revenues	16		—		—		—		—		3			—			13
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	223	$	—	$	—	$	—	$	—	$	81		$	—		$	157
Commercial Renewables
Revenue from contracts with customers	$	69	$	—	$	—	$	—	$	—	$	—		$	—		$	—
Other
Revenue from contracts with customers	$	8	$	—	$	—	$	—	$	—	$	—		$	—		$	—
Total revenue from contracts with customers	$	6,792	$	2,140	$	3,167	$	1,651	$	1,516	$	494		$	808		$	157
Other revenue sources(a)	$	148	$	22	$	75	$	37	$	32	$	(5	)	$	(1	)	$	11
Total revenues	$	6,940	$	2,162	$	3,242	$	1,688	$	1,548	$	489		$	807		$	168

(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.

	Nine Months Ended September 30, 2020
			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	$	7,451	$	2,316		$	3,792	$	1,578	$	2,214	$	558		$	785	$	—
General	4,691		1,720			2,080		1,001		1,079		336			554		—
Industrial	2,148		871			673		487		186		103			502		—
Wholesale	1,535		332			1,018		877		141		22			163		—
Other revenues	713		184			476		208		268		62			63		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	16,538	$	5,423		$	8,039	$	4,151	$	3,888	$	1,081		$	2,067	$	—
Gas Utilities and Infrastructure
Residential	$	631	$	—		$	—	$	—	$	—	$	214		$	—	$	417
Commercial	308		—			—		—		—		86			—		222
Industrial	92		—			—		—		—		12			—		80
Power Generation	—		—			—		—		—		—			—		27
Other revenues	58		—			—		—		—		12			—		46
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,089	$	—		$	—	$	—	$	—	$	324		$	—	$	792
Commercial Renewables
Revenue from contracts with customers	$	170	$	—		$	—	$	—	$	—	$	—		$	—	$	—
Other
Revenue from contracts with customers	$	20	$	—		$	—	$	—	$	—	$	—		$	—	$	—
Total Revenue from contracts with customers	$	17,817	$	5,423		$	8,039	$	4,151	$	3,888	$	1,405		$	2,067	$	792
Other revenue sources(a)	$	274	$	(7	)	$	78	$	56	$	9	$	(11	)	$	3	$	79
Total revenues	$	18,091	$	5,416		$	8,117	$	4,207	$	3,897	$	1,394		$	2,070	$	871

(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.

	Nine Months Ended September 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	$	7,597	$	2,331	$	3,879	$	1,657	$	2,222	$	563		$	825	$	—
General	4,896		1,714		2,225		1,044		1,181		335			619		—
Industrial	2,339		927		708		514		194		109			595		—
Wholesale	1,685		341		1,133		992		141		36			176		—
Other revenues	557		222		389		239		150		59			66		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	17,074	$	5,535	$	8,334	$	4,446	$	3,888	$	1,102		$	2,281	$	—
Gas Utilities and Infrastructure
Residential	$	673	$	—	$	—	$	—	$	—	$	229		$	—	$	443
Commercial	359		—		—		—		—		96			—		263
Industrial	103		—		—		—		—		14			—		91
Power Generation	—		—		—		—		—		—			—		39
Other revenues	101		—		—		—		—		13			—		88
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,236	$	—	$	—	$	—	$	—	$	352		$	—	$	924
Commercial Renewables
Revenue from contracts with customers	$	157	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Other
Revenue from contracts with customers	$	18	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Total Revenue from contracts with customers	$	18,485	$	5,535	$	8,334	$	4,446	$	3,888	$	1,454		$	2,281	$	924
Other revenue sources(a)	$	491	$	84	$	224	$	113	$	99	$	(1	)	$	8	$	32
Total revenues	$	18,976	$	5,619	$	8,558	$	4,559	$	3,987	$	1,453		$	2,289	$	956

(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.

As described in Note 1, Duke Energy adopted the new guidance for credit losses effective January 1, 2020, using the modified retrospective method of adoption, which does not require restatement of prior year reported results. The following table presents the reserve for credit losses for trade and other receivables based on adoption of the new standard.

	Three Months Ended September 30, 2020
				Duke						Duke			Duke		Duke		Duke
	Duke			Energy			Progress			Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida		Ohio		Indiana		Piedmont
Balance at June 30, 2020	$	102		$	14		$	29		$	14		$	14	$	5	$	3	$	6
Write-Offs	12			(2		)	15			13			2		—		—		—
Credit Loss Expense	(9		)	—			(16		)	(15		)	—		—		—		3
Other Adjustments	28			10			9			9			—		—		—		—
Balance at September 30, 2020	$	133		$	22		$	37		$	21		$	16	$	5	$	3	$	9

	Nine Months Ended September 30, 2020
				Duke					Duke			Duke		Duke		Duke
	Duke			Energy			Progress		Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy		Progress			Florida		Ohio		Indiana		Piedmont
Balance at December 31, 2019	$	76		$	10		$	16	$	8		$	7	$	4	$	3	$	6
Cumulative Change in Accounting Principle	5			1			2		1			1		—		—		1
Write-Offs	(7		)	(8		)	8		8			—		—		—		(5		)
Credit Loss Expense	24			9			2		(5		)	8		1		—		7
Other Adjustments	35			10			9		9			—		—		—		—
Balance at September 30, 2020	$	133		$	22		$	37	$	21		$	16	$	5	$	3	$	9

Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, including the impacts of COVID-19, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables. Due to the COVID-19 pandemic, as described in Note 1, certain jurisdictions have resumed standard billing and credit practices, disconnections for nonpayment and late payment charges, all of which were previously suspended in the first quarter of 2020. The specific actions taken by each Duke Energy Registrant are described in Note 3. The impact of COVID-19 and Duke Energy’s related response on customers’ ability to pay for service is uncertain, and it is reasonably possible eventual write-offs of customer receivables may increase over current estimates.

The aging of trade receivables is presented in the table below. Duke Energy considers receivables greater than 30 days outstanding past due.

	September 30, 2020
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unbilled Receivables	$	788	$	284	$	274	$	139	$	135	$	1	$	16	$	5
0-30 days	1,800		475		847		439		406		44		23		66
30-60 days	227		86		84		48		36		7		2		8
60-90 days	94		39		31		20		11		3		1		3
90+ days	263		85		68		37		31		40		9		20
Trade and Other Receivables	$	3,172	$	969	$	1,304	$	683	$	619	$	95	$	51	$	102

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)	September 30, 2020		December 31, 2019
Duke Energy	$	788	$	843
Duke Energy Carolinas	284		298
Progress Energy	274		217
Duke Energy Progress	139		122
Duke Energy Florida	135		95
Duke Energy Ohio	1		1
Duke Energy Indiana	16		16
Piedmont	5		78

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 12 for further information. These receivables for unbilled revenues are shown in the table below.

(in millions)	September 30, 2020		December 31, 2019
Duke Energy Ohio	$	66	$	82
Duke Energy Indiana	106		115