Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as Available for Sale (AFS) and investments in equity securities as fair value through net income (FV-NI).

For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.

The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the guidelines set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.

Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of September 30, 2022, and December 31, 2021.


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	120	$	—	$	—	$	160
Equity securities	3,238		181		5,447		4,905		43		7,350
Corporate debt securities	—		116		682		39		6		829
Municipal bonds	—		49		319		14		1		314
U.S. government bonds	—		139		1,391		31		12		1,568

Other debt securities	—		20		164		3		1		180
Total NDTF Investments	$	3,238	$	505	$	8,123	$	4,992	$	63	$	10,401
Other Investments
Cash and cash equivalents	$	—	$	—	$	37	$	—	$	—	$	36
Equity securities	15		20		116		36		—		156
Corporate debt securities	—		14		81		2		1		119
Municipal bonds	—		4		80		3		1		80
U.S. government bonds	—		1		63		—		—		56
Other debt securities	—		3		40		—		1		45
Total Other Investments	$	15	$	42	$	417	$	41	$	3	$	492
Total Investments	$	3,253	$	547	$	8,540	$	5,033	$	66	$	10,893

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2022, and 2021, were as follows.


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
FV-NI:
Realized gains	$	25	$	34	$	170	$	320
Realized losses	61		40		247		100
AFS:
Realized gains	7		17		22		51
Realized losses	40		15		105		46


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	41	$	—	$	—	$	53
Equity securities	1,903		87		3,154		2,887		19		4,265
Corporate debt securities	—		86		433		24		4		506
Municipal bonds	—		13		57		2		—		48
U.S. government bonds	—		65		637		16		3		712
Other debt securities	—		19		159		3		1		175
Total NDTF Investments	$	1,903	$	270	$	4,481	$	2,932	$	27	$	5,759


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
FV-NI:
Realized gains	$	16	$	25	$	109	$	243
Realized losses	39		29		143		68
AFS:
Realized gains	7		10		19		35
Realized losses	20		10		57		32


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	79	$	—	$	—	$	107
Equity securities	1,335		94		2,293		2,018		24		3,085
Corporate debt securities	—		30		249		15		2		323
Municipal bonds	—		36		262		12		1		266
U.S. government bonds	—		74		754		15		9		856

Other debt securities	—		1		5		—		—		5
Total NDTF Investments	$	1,335	$	235	$	3,642	$	2,060	$	36	$	4,642
Other Investments
Cash and cash equivalents	$	—	$	—	$	13	$	—	$	—	$	20

Municipal bonds	—		—		25		2		—		26
Total Other Investments	$	—	$	—	$	38	$	2	$	—	$	46
Total Investments	$	1,335	$	235	$	3,680	$	2,062	$	36	$	4,688


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
FV-NI:
Realized gains	$	9	$	9	$	61	$	77
Realized losses	22		11		104		32
AFS:
Realized gains	—		7		3		14
Realized losses	9		6		32		12


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	47	$	—	$	—	$	94
Equity securities	1,261		94		2,206		1,915		23		2,970
Corporate debt securities	—		29		234		15		2		282
Municipal bonds	—		36		262		12		1		266
U.S. government bonds	—		47		450		15		3		472
Other debt securities	—		1		5		—		—		5
Total NDTF Investments	$	1,261	$	207	$	3,204	$	1,957	$	29	$	4,089
Other Investments
Cash and cash equivalents	$	—	$	—	$	11	$	—	$	—	$	16
Total Other Investments	$	—	$	—	$	11	$	—	$	—	$	16
Total Investments	$	1,261	$	207	$	3,215	$	1,957	$	29	$	4,105


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
FV-NI:
Realized gains	$	9	$	9	$	60	$	76
Realized losses	21		11		101		31
AFS:
Realized gains	—		6		3		13
Realized losses	9		5		29		11


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	32	$	—	$	—	$	13
Equity securities	74		—		87		103		1		115
Corporate debt securities	—		1		15		—		—		41

U.S. government bonds	—		27		304		—		6		384


Total NDTF Investments(a)	$	74	$	28	$	438	$	103	$	7	$	553
Other Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	3

Municipal bonds	—		—		25		2		—		26
Total Other Investments	$	—	$	—	$	26	$	2	$	—	$	29
Total Investments	$	74	$	28	$	464	$	105	$	7	$	582

(a)During the nine months ended September 30, 2022, and the year ended December 31, 2021, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.


	September 30, 2022						December 31, 2021
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	—
Equity securities	—		20		72		6		—		97
Corporate debt securities	—		1		7		—		—		6
Municipal bonds	—		4		45		1		1		46
U.S. government bonds	—		—		7		—		—		12

Total Investments	$	—	$	25	$	132	$	7	$	1	$	161


	September 30, 2022
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	139	$	7	$	115	$	35	$	80	$	8
Due after one through five years	854		301		473		259		214		22
Due after five through 10 years	451		208		191		176		15		7
Due after 10 years	1,376		770		516		481		35		22
Total	$	2,820	$	1,286	$	1,295	$	951	$	344	$	59