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Debt and Credit Facilities
 12 Months Ended
Dec. 31, 2021
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, 2021
Weighted
AverageDukeDukeDukeDukeDuke
InterestDukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) Rate EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unsecured debt, maturing 2022-20823.71 %$24,564 $1,150 $2,250 $— $150 $1,330 $700 $2,990 
Secured debt, maturing 2022-20522.50 %5,584 1,094 2,397 1,120 1,278 — — — 
First mortgage bonds, maturing 2022-2051(a)
3.87 %31,026 10,507 15,450 8,375 7,075 1,850 3,219 — 
Finance leases, maturing 2022-2051(b)
5.81 %915 289 690 629 61 — 10 — 
Tax-exempt bonds, maturing 2027-2041(c)
0.65 %360 — 48 48 — 27 285 — 
Notes payable and commercial paper(d)
0.35 %3,929 — — — — — — — 
Money pool/intercompany borrowings — 526 2,959 322 199 128 150 518 
Fair value hedge carrying value adjustment  4 4 — — — — — — 
Unamortized debt discount and premium, net(e)
 1,119 (21)(34)(19)(14)(27)(18)(6)
Unamortized debt issuance costs(f)
(362)(67)(128)(54)(68)(13)(23)(16)
Total debt 3.50 %$67,139 $13,482 $23,632 $10,421 $8,681 $3,295 $4,323 $3,486 
Short-term notes payable and commercial paper  (3,304)— — — — — — — 
Short-term money pool/intercompany borrowings — (226)(2,809)(172)(199)(103)— (518)
Current maturities of long-term debt(g)
 (3,387)(362)(1,082)(556)(76)— (84)— 
Total long-term debt(g)
$60,448 $12,894 $19,741 $9,693 $8,406 $3,192 $4,239 $2,968 
(a)Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)Duke Energy includes $256 million of finance lease purchase accounting adjustments related to Duke Energy Florida 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 15 days.
(e)Duke Energy includes $1,121 million and $100 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(f)Duke Energy includes $29 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g)Refer to Note 17 for additional information on amounts from consolidated VIEs.
 December 31, 2020
Weighted
AverageDukeDukeDukeDukeDuke
InterestDukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) Rate EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unsecured debt, maturing 2021-20783.71 %$23,669 $1,150 $3,150 $700 $350 $1,180 $403 $2,800 
Secured debt, maturing 2021-20522.67 %4,270 543 1,584 252 1,332 — — — 
First mortgage bonds, maturing 2021-2050(a)
4.00 %29,177 10,008 14,100 7,875 6,225 1,850 3,219 — 
Finance leases, maturing 2022-2051(b)
6.96 %845 294 377 296 81 — 10 — 
Tax-exempt bonds, maturing 2027-2041(c)
0.75 %477 — 48 48 — 77 352 — 
Notes payable and commercial paper(d)
0.51 %3,407 — — — — — — — 
Money pool/intercompany borrowings — 806 3,119 445 196 194 281 530 
Fair value hedge carrying value adjustment  4 4 — — — — — — 
Unamortized debt discount and premium, net(e)
 1,217 (20)(31)(19)(11)(29)(18)(5)
Unamortized debt issuance costs(f)
(330)(62)(113)(44)(62)(14)(25)(15)
Total debt 3.62 %$62,736 $12,723 $22,234 $9,553 $8,111 $3,258 $4,222 $3,310 
Short-term notes payable and commercial paper  (2,873)— — — — — — — 
Short-term money pool/intercompany borrowings — (506)(2,969)(295)(196)(169)(131)(530)
Current maturities of long-term debt(g)
 (4,238)(506)(1,426)(603)(823)(50)(70)(160)
Total long-term debt(g)
$55,625 $11,711 $17,839 $8,655 $7,092 $3,039 $4,021 $2,620 
(a)    Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)    Duke Energy includes $24 million and $341 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 23 days.
(e)    Duke Energy includes $1,196 million and $117 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(f)    Duke Energy includes $33 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g)     Refer to Note 17 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 DateInterest RateDecember 31, 2021
Unsecured Debt(a)
Duke Energy (Parent)March 20223.227 %300 
Duke Energy (Parent)(b)
March 20220.851 %300 
Progress EnergyApril 20223.150 %450 
Duke Energy (Parent)August 20223.050 %500 
Duke Energy (Parent)August 20222.400 %500 
First Mortgage Bonds
Duke Energy IndianaJanuary 20228.850 %53 
Duke Energy CarolinasMay 20223.350 %350 
Duke Energy ProgressMay 20222.800 %500 
Other(c)
434 
Current maturities of long-term debt$3,387 
(a)    In December 2021, Duke Energy Progress early retired $700 million of unsecured debt with an original maturity date of February 2022.
(b)    Debt has a floating interest rate.
(c)    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, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)
Energy(a)
CarolinasEnergyProgressFloridaOhioIndianaPiedmont
2022$3,387 $362 $1,082 $556 $76 $— $84 $— 
20234,725 1,018 1,046 719 327 475 303 45 
20241,917 19 138 72 66 — 4 40 
20253,078 496 639 575 64 245 4 205 
20263,125 921 310 229 81 70 154 40 
Thereafter46,844 10,528 17,766 8,168 7,949 2,442 3,814 2,660 
Total long-term debt, including current maturities$63,076 $13,344 $20,981 $10,319 $8,563 $3,232 $4,363 $2,990 
(a)    Excludes $1,250 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, 2021
DukeDukeDukeDuke
DukeEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasProgressOhioIndiana
Tax-exempt bonds $312 $— $— $27 $285 
Commercial paper(a)
625 300 150 25 150 
Total $937 $300 $150 $52 $435 
 December 31, 2020
DukeDukeDukeDuke
DukeEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasProgressOhioIndiana
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, 2021
DukeDukeDukeDuke
MaturityInterestDukeEnergyEnergyEnergyEnergy
Issuance DateDateRateEnergy(Parent)CarolinasProgressFloridaPiedmont
Unsecured Debt
March 2021a)
March 20312.500 %$350 $— $— $— $— $350 
June 2021(b)(c)
June 20230.299 %500 500 — — — — 
June 2021(c)
June 20312.550 %1,000 1,000 — — — — 
June 2021(c)
June 20413.300 %750 750 — — — — 
June 2021(c)
June 20513.500 %750 750 — — — — 
September 2021(d)
January 20823.250 %500 500 
Secured Debt
November 2021(e)
July 20311.679 %100 — 100 — — — 
November 2021(e)
July 20412.617 %137 — 137 — — — 
November 2021(e)
July 20281.295 %221 — — 221 — — 
November 2021(e)
July 20372.387 %352 — — 352 — — 
November 2021(e)
July 20412.799 %197 — — 197 — — 
First Mortgage Bonds
April 2021(f)
April 20312.550 %550 — 550 — — — 
April 2021(f)
April 20513.450 %450 — 450 — — — 
August 2021(g)
August 20312.000 %650 — — 650 — — 
August 2021(g)
August 20512.900 %

450 — — 450 — — 
December 2021(h)
December 20312.400 %650 — — — 650 — 
December 2021(h)
December 20513.000 %500 — — — 500 — 
Total issuances$8,107 $3,500 $1,237 $1,870 $1,150 $350 
(a)Debt issued to repay at maturity $160 million senior unsecured notes due June 2021, pay down short-term debt and for general corporate purposes.
(b)Debt has a floating interest rate.
(c)Debt issued to repay $1.75 billion of Duke Energy (Parent) debt maturities, to repay a portion of short-term debt and for general corporate purposes.
(d)Debt issued to repay in October 2021 $500 million of Duke Energy (Parent) unsecured notes. The interest rate resets every five years.
(e)Debt issued to finance the North Carolina portion of storm restoration expenditures related to Hurricane Florence, Hurricane Michael, Hurricane Dorian and Winter Storm Diego.
(f)Debt issued to repay at maturity $500 million first mortgage bonds due June 2021, pay down short-term debt and for general company purposes.
(g)Debt issued to repay at maturity a total of $600 million first mortgage bonds due September 2021, pay down short-term debt and for general company purposes.
(h)Proceeds will be used to finance or refinance, in whole or in part, existing or new eligible projects under the sustainable financing framework.
Year Ended December 31, 2020
DukeDukeDukeDukeDukeDuke
MaturityInterestDukeEnergyEnergyEnergyEnergyEnergyEnergy
Issuance DateDateRateEnergy(Parent)CarolinasProgressFloridaOhioIndianaPiedmont
Unsecured Debt
May 2020(a)
June 20302.450 %$500 $500 $— $— $— $— $— $— 
May 2020(b)
June 20503.350 %400 — — — — — — 400 
August 2020(c)(d)
February 20220.400 %700 — — 700 — — — — 
September 2020(e)
September 20250.900 %650 650 — — — — — — 
September 2020(e)
June 20302.450 %350 350 — — — — — — 
First Mortgage Bonds
January 2020(f)
February 20302.450 %500 — 500 — — — — — 
January 2020(f)
August 20493.200 %400 — 400 — — — — — 
March 2020(g)
April 20502.750 %550 — — — — — 550 — 
May 2020(b)
June 20302.125 %400 — — — — 400 — — 
June 2020(b)
June 20301.750 %500 — — — 500 — — — 
August 2020(h)
August 20502.500 %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 term loan due 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.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2021, Duke Energy amended its existing $8 billion Master Credit Facility to extend the termination date to March 2026. 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.
 December 31, 2021
DukeDukeDukeDukeDukeDuke
DukeEnergyEnergyEnergyEnergyEnergyEnergy
(in millions) Energy(Parent)CarolinasProgressFloridaOhioIndianaPiedmont
Facility size(a)
$8,000 $2,650 $1,225 $1,150 $900 $775 $600 $700 
Reduction to backstop issuances
Commercial paper(b)
(2,863)(1,128)(506)(307)(181)(119)(150)(472)
Outstanding letters of credit (38)(25)(4)(2)(7)— — — 
Tax-exempt bonds (81)— — — — — (81)— 
Available capacity $5,018 $1,497 $715 $841 $712 $656 $369 $228 
(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. In March 2021, Duke Energy extended the termination date of the facility from May 2022 to May 2024. Borrowings under this facility will be used for general corporate purposes. As of December 31, 2021, $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. During the first quarter of 2020, an additional $500 million was drawn under this facility to manage liquidity impacts from COVID-19. The additional $500 million was paid down during the second quarter of 2020. The terms and conditions of the facility are generally consistent with those governing Duke Energy's Master Credit Facility.
Duke Energy Ohio Term Loan Facility
In October 2021, Duke Energy Ohio entered into a two-year term loan facility with commitments totaling $100 million. Borrowings under the facility will be used to pay down short-term debt and for general corporate purposes. The term loan was fully drawn at the time of closing in October. The balance is classified as Long-Term Debt on Duke Energy Ohio’s Consolidated Balance Sheets.
Duke Energy Indiana Term Loan Facility
In October 2021, Duke Energy Indiana entered into a two-year term loan facility with commitments totaling $300 million. Borrowings under the facility will be used to pay down short-term debt and for general corporate purposes. The term loan was fully drawn at the time of closing in October. The balance is classified as Long-Term Debt on Duke Energy Indiana’s Consolidated Balance Sheets.
Duke Energy Kentucky Term Loan Facility
In October 2021, Duke Energy Kentucky entered into a two-year term loan facility with commitments totaling $50 million. Borrowings under the facility will be used to pay down short-term debt and for general corporate purposes. The term loan was fully drawn at the time of closing in October. The balance is classified as Long-Term Debt on Duke Energy Ohio’s Consolidated Balance Sheets.
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, including preferred stock, 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.
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, 2021, and 2020, was $1,066 million and $1,168 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 and Intercompany Credit Agreements
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.
Progress Energy has a revolving credit agreement with Duke Energy (Parent) which allows up to $2.5 billion in intercompany borrowings. The balance is reflected within Notes payable to affiliated companies on the Progress Energy 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, 2021, 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, 2021, and 2020, Duke Energy had loans outstanding of $819 million, including $34 million at Duke Energy Progress and $817 million, including $35 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.