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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT RETIREMENT PLANS
Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans, which consist of the Duke Energy Retirement Cash Balance Plan (RCBP), which is an active plan, and the Duke Energy Legacy Pension Plan (DELPP), which is an inactive plan. These plans cover most employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings, age or age and years of service and interest credits. Certain employees are eligible for benefits that use a final average earnings formula. Under these final average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-, four-, or five-year average earnings, (ii) highest three-, four-, or five-year average earnings in excess of covered compensation per year of participation (maximum of 35 years) or (iii) highest three-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans that cover certain executives. The qualified and non-qualified, non-contributory defined benefit plans are closed to new participants.
Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan assets on December 31, 2022, were primarily attributable to actual investment performance that was less than expected investment performance. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2022, were primarily attributable to the increase in the discount rate used to measure plan obligations. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan assets as of December 31, 2021, were primarily attributable to actual investment performance that was less than expected investment performance. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2021, were primarily attributable to the increase in the discount rate used to measure plan obligations.
As a result of the application of settlement accounting due to total lump-sum benefit payments exceeding the settlement threshold (defined as the sum of service cost and interest cost on projected benefit obligation components of net periodic benefit costs) for one of its qualified pension plans, Duke Energy recognized settlement charges of $117 million, of which $95 million was recorded to Regulatory Assets within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets and $22 million was recorded to Other Income and Expenses, net, within the Condensed Consolidated Statement of Operations as of December 31, 2022.
Settlement charges recognized by the Subsidiary Registrants as of December 31, 2022, which represent amounts allocated by Duke Energy for employees of the Subsidiary Registrants and allocated charges for their proportionate share of settlement charges for employees of Duke Energy's shared services affiliate, and recorded to Regulatory Assets within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets were $35 million for Duke Energy Carolinas, $23 million for Progress Energy, $16 million for Duke Energy Progress, $7 million for Duke Energy Florida, $8 million for Duke Energy Indiana and $29 million for Piedmont. Settlement charges recognized by the Subsidiary Registrants as of December 31, 2022, recorded to Other Income and Expenses, net, within the Condensed Consolidated Statement of Operations were $3 million for Duke Energy Carolinas, $5 million for Progress Energy, $5 million for Duke Energy Progress, $1 million for Duke Energy Florida, $5 million for Duke Energy Ohio and $6 million for Piedmont.
The settlement charges reflect the recognition of a pro-rata portion of previously unrecognized actuarial losses, equal to the percentage of reduction in the projected benefit obligation resulting from total lump-sum benefit payments as of December 31, 2022. Settlement charges recognized as a regulatory asset within Other Noncurrent Assets on the Consolidated Balance Sheets are amortized over the average remaining service period for participants in the plan. Amortization of settlement charges is disclosed in the tables below as a component of net periodic pension costs.
Effective December 31, 2022, Duke Energy Florida changed its method for calculating the market related value of plan assets (MRVA) from the fair value method to a method that recognizes changes in fair value of its plan assets over a five-year period. This represents a change in regulatory treatment that will serve to mitigate the impact of market volatility on retail customer rates, resulting in the timing of net periodic pension cost recognition that is more consistent with treatment of the related cost in the ratemaking process. The three-year retrospective impact of this method change of $24 million was recognized by Duke Energy, Progress Energy and Duke Energy Florida, respectively, and was recorded to Other Income and Expenses, net, within the Condensed Consolidated Statement of Operations and has been disclosed in the tables below as a component of net periodic pension costs.
Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented prior to capitalization of amounts reflected as Net property, plant and equipment, on the Consolidated Balance Sheets. Only the service cost component of net periodic benefit costs is eligible to be capitalized. The remaining non-capitalized portions of net periodic benefit costs are classified as either: (1) service cost, which is recorded in Operations, maintenance and other on the Consolidated Statements of Operations; or as (2) components of non-service cost, which is recorded in Other income and expenses, net on the Consolidated Statements of Operations. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit cost allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Consolidated Statements of Operations of the Subsidiary Registrants also include allocated net periodic benefit costs for their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy’s shared services affiliate that provide support to the Subsidiary Registrants. However, in the tables below, these amounts are only presented within the Duke Energy column (except for amortization of settlement charges). These allocated amounts are included in the governance and shared service costs discussed in Note 14.
Duke Energy’s policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants’ contributions to its qualified defined benefit pension plans. There were no contributions made in the years ended December 31, 2021 and 2020.
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Contributions Made:
2022$58 $15 $13 $8 $5 $3 $5 $2 
QUALIFIED PENSION PLANS
Components of Net Periodic Pension Costs
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$152 $48 $43 $25 $17 $4 $9 $5 
Interest cost on projected benefit obligation249 59 77 35 41 13 20 8 
Expected return on plan assets(558)(152)(183)(88)(94)(23)(37)(24)
Amortization of actuarial loss81 16 23 12 12 4 9 5 
Amortization of prior service credit(18)(3)— — — — (2)(7)
Amortization of settlement charges(c)
32 9 8 7 1 5 1 7 
MRVA method change24 — 24 — 24 — — — 
Net periodic pension costs(a)(b)
$(38)$(23)$(8)$(9)$1 $3 $— $(6)
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$176 $56 $50 $29 $21 $5 $10 $6 
Interest cost on projected benefit obligation220 51 70 30 39 13 18 7 
Expected return on plan assets(558)(141)(187)(84)(102)(28)(40)(20)
Amortization of actuarial loss133 29 38 18 20 7 13 10 
Amortization of prior service credit(29)(8)(2)(1)(1)(1)(2)(9)
Amortization of settlement charges9 5 2 2 1 — — 1 
Net periodic pension costs(a)(b)
$(49)$(8)$(29)$(6)$(22)$(4)$(1)$(5)
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$165 $51 $48 $27 $21 $5 $9 $6 
Interest cost on projected benefit obligation269 62 85 38 46 15 22 9 
Expected return on plan assets(572)(145)(190)(87)(101)(28)(42)(21)
Amortization of actuarial loss128 28 41 18 23 6 12 9 
Amortization of prior service credit(32)(8)(3)(2)(1)— (2)(9)
Amortization of settlement charges(c)
18 9 7 6 1 — 1 1 
Net periodic pension costs(a)(b)
$(24)$(3)$(12)$— $(11)$(2)$— $(5)
(a)    Duke Energy amounts exclude $3 million, $3 million and $4 million for the years ended December 2022, 2021 and 2020, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b)    Duke Energy Ohio amounts exclude $1 million, $1 million and $2 million for the years ended December 2022, 2021 and 2020, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(c)    Includes settlement charges not deferred as a regulatory asset.
Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net increase (decrease)$367 $221 $107 $101 $5 $(1)$(12)$9 
Accumulated other comprehensive loss (income)
Deferred income tax expense$(7)$— $(1)$— $— $— $— $— 
Amortization of prior year service credit— — — — — — — — 
Amortization of prior year actuarial losses37 — 2 — — — — — 
Net amount recognized in accumulated other comprehensive income$30 $— $1 $— $— $— $— $— 
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net decrease$(261)$(57)$(128)$(31)$(97)$(17)$(19)$(5)
Accumulated other comprehensive loss (income)
Deferred income tax expense$1 $— $— $— $— $— $— $— 
Amortization of prior year service credit1 — — — — — — — 
Amortization of prior year actuarial losses(8)— (1)— — — — — 
Net amount recognized in accumulated other comprehensive income$(6)$— $(1)$— $— $— $— $— 
Reconciliation of Funded Status to Net Amount Recognized
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date $8,207 $1,903 $2,560 $1,153 $1,392 $450 $680 $273 
Service cost145 47 40 24 16 4 8 5 
Interest cost249 59 77 35 41 13 20 8 
Actuarial gain(1,490)(301)(513)(197)(312)(84)(143)(47)
Benefits paid(753)(159)(184)(101)(82)(50)(66)(69)
Transfers— 5 (5)(5)— — — — 
Obligation at measurement date$6,358 $1,554 $1,975 $909 $1,055 $333 $499 $170 
Accumulated Benefit Obligation at measurement date$6,324 $1,556 $1,959 $910 $1,038 $327 $495 $170 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$9,235 $2,365 $3,053 $1,421 $1,610 $438 $669 $334 
Employer contributions58 15 13 8 5 3 5 2 
Actual return on plan assets(1,547)(411)(506)(240)(262)(68)(107)(64)
Benefits paid(753)(159)(184)(101)(82)(50)(66)(69)
Transfers— 5 (5)(5)— — — — 
Plan assets at measurement date$6,993 $1,815 $2,371 $1,083 $1,271 $323 $501 $203 
Funded status of plan$635 $261 $396 $174 $216 $(10)$2 $33 
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date $8,634 $1,988 $2,715 $1,193 $1,507 $502 $715 $293 
Service cost168 54 48 28 20 5 9 6 
Interest cost220 51 70 30 39 13 18 7 
Actuarial gain(200)(42)(108)(18)(89)(10)(10)(5)
Benefits paid(615)(148)(161)(80)(81)(50)(52)(28)
Transfers— — (4)— (4)(10)— — 
Obligation at measurement date$8,207 $1,903 $2,560 $1,153 $1,392 $450 $680 $273 
Accumulated Benefit Obligation at measurement date$8,144 $1,904 $2,529 $1,154 $1,361 $439 $672 $274 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$9,337 $2,381 $3,049 $1,422 $1,605 $472 $684 $343 
Actual return on plan assets513 132 169 79 90 26 37 19 
Benefits paid(615)(148)(161)(80)(81)(50)(52)(28)
Transfers— — (4)— (4)(10)— — 
Plan assets at measurement date$9,235 $2,365 $3,053 $1,421 $1,610 $438 $669 $334 
Funded status of plan$1,028 $462 $493 $268 $218 $(12)$(11)$61 
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded pension(a)
$885 $261 $396 $174 $216 $62 $90 $33 
Noncurrent pension liability(b)
$250 $— $— $— $— $72 $88 $— 
Net asset (liability) recognized$635 $261 $396 $174 $216 $(10)$2 $33 
Regulatory assets$2,016 $545 $670 $353 $316 $92 $178 $84 
Accumulated other comprehensive (income) loss 
Deferred income tax benefit$(27)$— $(1)$— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial loss129 — 3 — — — — — 
Net amounts recognized in accumulated other comprehensive loss$101 $— $2 $— $— $— $— $— 
December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded pension(a)
$1,071 $462 $494 $268 $219 $74 $100 $61 
Noncurrent pension liability(b)
$43 $— $1 $— $1 $86 $111 $— 
Net asset (liability) recognized$1,028 $462 $493 $268 $218 $(12)$(11)$61 
Regulatory assets$1,649 $324 $563 $252 $311 $93 $190 $75 
Accumulated other comprehensive (income) loss
Deferred income tax benefit$(20)$— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial loss92 — 1 — — — — — 
Net amounts recognized in accumulated other comprehensive loss$71 $— $1 $— $— $— $— $— 
(a)    Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.
(b)    Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets
December 31, 2022
DukeDuke
DukeEnergyEnergy
(in millions)EnergyOhioIndiana
Projected benefit obligation$3,323 $103 $198 
Accumulated benefit obligation3,288 99 193 
Fair value of plan assets3,073 31 110 
December 31, 2021
DukeDuke
EnergyEnergy
(in millions)OhioIndiana
Projected benefit obligation$153 $284 
Accumulated benefit obligation143 275 
Fair value of plan assets67 173 
Assumptions Used for Pension Benefits Accounting
The discount rate used to determine the current year pension obligation and following year’s pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.
The average remaining service period for participants in active plans and life expectancy of participants in inactive plans is 13 years for Duke Energy and Duke Energy Progress, 15 years for Duke Energy Florida and Duke Energy Ohio, 14 years for Progress Energy and Duke Energy Indiana, 12 years for Duke Energy Carolinas and nine years for Piedmont.
The following tables present the assumptions or range of assumptions used for pension benefit accounting.
December 31,
202220212020
Benefit Obligations
Discount rate5.60%2.90%2.60%
Interest crediting rate4.35%4.00%4.00%
Salary increase 3.50 %–4.00%3.50 %–4.00%3.50 %–4.00%
Net Periodic Benefit Cost
Discount rate2.90 %–5.70%2.60%3.30%
Interest crediting rate4.00%4.00%4.00%
Salary increase3.50 %–4.00%3.50 %–4.00%3.50 %–4.00%
Expected long-term rate of return on plan assets6.50%6.50%6.85%
Expected Benefit Payments
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ending December 31,
2023$661 $186 $183 $99 $83 $32 $45 $19 
2024635 176 180 95 84 31 45 18 
2025629 174 183 97 85 31 44 16 
2026607 164 180 91 87 30 44 16 
2027592 156 177 89 87 29 43 15 
2028-20322,581 628 804 372 427 135 205 71 
NON-QUALIFIED PENSION PLANS
The accumulated benefit obligation, which equals the projected benefit obligation for non-qualified pension plans, was $232 million for Duke Energy, $10 million for Duke Energy Carolinas, $78 million for Progress Energy, $24 million for Duke Energy Progress, $32 million for Duke Energy Florida, $3 million for Duke Energy Ohio, $2 million for Duke Energy Indiana and $3 million for Piedmont as of December 31, 2022.
Employer contributions, which equal benefits paid for non-qualified pension plans, were $24 million for Duke Energy, $1 million for Duke Energy Carolinas, $10 million for Progress Energy, $3 million for Duke Energy Progress and $4 million for Duke Energy Florida for the year ended December 31, 2022. Employer contributions were not material for Duke Energy Ohio, Duke Energy Indiana or Piedmont for the year ended December 31, 2022.
Net periodic pension costs for non-qualified pension plans were not material for the years ended December 31, 2022, 2021 or 2020.
OTHER POST-RETIREMENT BENEFIT PLANS
Duke Energy provides, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. The health care benefits include medical, dental, vision and prescription drug coverage and are subject to certain limitations, such as deductibles and copayments.
Duke Energy did not make any pre-funding contributions to its other post-retirement benefit plans during the years ended December 31, 2022, 2021 or 2020.
Components of Net Periodic Other Post-Retirement Benefit Costs
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$3 $1 $— $— $— $— $— $— 
Interest cost on accumulated post-retirement benefit obligation17 4 7 4 3 1 1 1 
Expected return on plan assets(10)(6)— — — — — (2)
Amortization of actuarial loss2 — 1 1 1 — — — 
Amortization of prior service credit(8)(3)(2)(1)(1)— — (2)
Net periodic post-retirement benefit costs (a)(b)
$4 $(4)$6 $4 $3 $1 $1 $(3)
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$4 $1 $1 $— $— $— $1 $— 
Interest cost on accumulated post-retirement benefit obligation18 4 7 4 3 1 1 1 
Expected return on plan assets(11)(7)— — — — — (2)
Amortization of actuarial loss2 — 1 — 1 — 4 — 
Amortization of prior service credit(13)(4)(2)(1)(1)(1)(1)(2)
Net periodic post-retirement benefit costs(a)(b)
$— $(6)$7 $3 $3 $— $5 $(3)
Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$4 $1 $1 $— $— $— $1 $— 
Interest cost on accumulated post-retirement benefit obligation23 5 10 5 4 1 2 1 
Expected return on plan assets(13)(8)— — — — — (2)
Amortization of actuarial loss2 — 1 — 1 — 4 — 
Amortization of prior service credit(14)(4)(3)(1)(2)(1)(1)(2)
Net periodic post-retirement benefit costs(a)(b)
$2 $(6)$9 $4 $3 $— $6 $(3)
(a)    Duke Energy amounts exclude $4 million, $5 million and $6 million for the years ended December 2022, 2021 and 2020, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b)    Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2022, 2021 and 2020, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net (decrease) increase$(79)$— $(80)$(45)$(36)$— $(3)$— 
Regulatory liabilities, net increase (decrease)$27 $— $— $— $— $— $19 $(5)
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain$1 $— $— $— $— $— $— $— 
Net amount recognized in accumulated other comprehensive income$1 $— $— $— $— $— $— $— 
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Regulatory assets, net (decrease) increase$(15)$— $(18)$(9)$(9)$4 $(4)$— 
Regulatory liabilities, net increase$23 $12 $— $— $— $4 $1 $2 
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain$(1)$— $— $— $— $— $— $— 
Net amount recognized in accumulated other comprehensive income$(1)$— $— $— $— $— $— $— 
Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date$625 $149 $263 $147 $112 $25 $54 $27 
Service cost3 1 — — — — — — 
Interest cost17 4 7 4 3 1 1 1 
Plan participants' contributions11 2 4 2 2 1 1 — 
Actuarial gains(80)(17)(43)(27)(16)(3)(1)(5)
Plan amendments(71)(11)(37)(18)(19)— (17)— 
Benefits paid(68)(16)(26)(13)(13)(4)(8)(2)
Accumulated post-retirement benefit obligation at measurement date$437 $112 $168 $95 $69 $20 $30 $21 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$211 $135 $(1)$(2)$(2)$9 $6 $39 
Actual return on plan assets(31)(19)— — — (2)— (7)
Benefits paid(68)(16)(26)(13)(13)(4)(8)(2)
Employer contributions39 3 23 11 11 3 4 1 
Plan participants' contributions11 2 4 2 2 1 1 — 
Plan assets at measurement date$162 $105 $— $(2)$(2)$7 $3 $31 
Funded status of plan$(275)$(7)$(168)$(97)$(71)$(13)$(27)$10 
Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date$709 $174 $299 $166 $130 $27 $61 $30 
Service cost4 1 1 — — — 1 — 
Interest cost18 4 7 4 3 1 1 1 
Plan participants' contributions14 3 5 3 2 1 2 — 
Actuarial gains(47)(14)(20)(10)(10)(1)(2)(2)
Benefits paid(73)(19)(29)(16)(13)(3)(9)(2)
Accumulated post-retirement benefit obligation at measurement date$625 $149 $263 $147 $112 $25 $54 $27 
Change in Fair Value of Plan Assets
Plan assets at prior measurement date$237 $139 $(1)$(2)$(1)$9 $7 $37 
Actual return on plan assets15 9 — — — 1 — 3 
Benefits paid(73)(19)(29)(16)(13)(3)(9)(2)
Employer contributions18 3 24 13 10 1 6 1 
Plan participants' contributions14 3 5 3 2 1 2 — 
Plan assets at measurement date$211 $135 $(1)$(2)$(2)$9 $6 $39 
Funded status of plan$(414)$(14)$(264)$(149)$(114)$(16)$(48)$12 
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded post-retirement benefit$— $— $— $— $— $1 $— $10 
Current post-retirement liability(a)
9 — 5 3 2 2 — — 
Noncurrent post-retirement liability(b)
266 7 163 94 69 12 27 — 
Net liability (asset) recognized$275 $7 $168 $97 $71 $13 $27 $(10)
Regulatory assets$50 $— $46 $34 $11 $4 $25 $— 
Regulatory liabilities$189 $44 $— $— $— $21 $82 $— 
Accumulated other comprehensive (income) loss
Deferred income tax expense$3 $— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial gain(13)— — — — — — — 
Net amounts recognized in accumulated other comprehensive income$(11)$— $— $— $— $— $— $— 
December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Prefunded post-retirement benefit$12 $— $— $— $— $1 $— $12 
Current post-retirement liability(a)
9 — 5 3 2 1 — — 
Noncurrent post-retirement liability(b)
417 14 259 146 112 16 48 — 
Net liability (asset) recognized$414 $14 $264 $149 $114 $16 $48 $(12)
Regulatory assets$129 $— $126 $79 $47 $4 $28 $— 
Regulatory liabilities$162 $44 $— $— $— $21 $63 $5 
Accumulated other comprehensive (income) loss
Deferred income tax expense$3 $— $— $— $— $— $— $— 
Prior service credit(1)— — — — — — — 
Net actuarial gain(14)— — — — — — — 
Net amounts recognized in accumulated other comprehensive income$(12)$— $— $— $— $— $— $— 
(a)    Included in Other within Current Liabilities on the Consolidated Balance Sheets. 
(b)    Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Assumptions Used for Other Post-Retirement Benefits Accounting
The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.
The average remaining service period of active covered employees is seven years for Duke Energy and Duke Energy Florida, six years for Duke Energy Carolinas, Duke Energy Ohio, Duke Energy Indiana and Piedmont and five years for Progress Energy and Duke Energy Progress.
The following tables present the assumptions used for other post-retirement benefits accounting.
December 31,
202220212020
Benefit Obligations
Discount rate5.60 %2.90 %2.60 %
Net Periodic Benefit Cost
Discount rate2.90 %2.60 %3.30 %
Expected long-term rate of return on plan assets6.50 %6.50 %6.85 %
Assumed Health Care Cost Trend Rate
December 31,
20222021
Health care cost trend rate assumed for next year6.50 %6.25 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)4.75 %4.75 %
Year that rate reaches ultimate trend2030-20322028
Expected Benefit Payments
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ending December 31,
2023$68 $16 $25 $14 $11 $3 $7 $2 
202449 13 18 10 7 3 4 2 
202545 12 16 9 7 2 3 2 
202641 11 15 9 6 2 3 2 
202738 10 14 8 6 2 3 2 
2028-2032158 41 61 36 25 8 9 9 
PLAN ASSETS
Description and Allocations
Duke Energy Corporation Master Retirement Trust
Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Corporation Master Retirement Trust. Approximately 98% of the Duke Energy Corporation Master Retirement Trust assets were allocated to qualified pension plans and approximately 2% were allocated to other post-retirement plans (comprised of 401(h) accounts), as of December 31, 2022, and 2021. The investment objective of the Duke Energy Corporation Master Retirement Trust is to invest in a diverse portfolio of assets that is expected to generate positive surplus return over time (i.e., asset growth greater than liability growth) subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.
As of December 31, 2022, Duke Energy assumes qualified pension and other post-retirement plan assets will generate a long-term rate of return of 8.25% for the RCBP pension and RCBP 401(h) account assets and 6.5% for the DELPP pension and DELPP 401(h) account assets. The expected long-term rate of return was developed using a weighted average calculation of expected returns based primarily on future expected returns across asset classes considering the use of active asset managers, where applicable. The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their higher expected returns. Debt securities are primarily held to hedge the qualified pension plan. Return seeking debt securities, hedge funds and other global securities are held for diversification. Investments within asset classes are diversified to achieve broad market participation and reduce the impact of individual managers or investments.
Effective January 1, 2023, the target asset allocation for the RCBP assets is 35% liability hedging and 65% return-seeking assets and the target asset allocation for the DELPP assets is 80% liability hedging assets and 20% return-seeking assets. Duke Energy periodically reviews its asset allocation targets, and over time, as the funded status of the benefit plans increase, the level of asset risk relative to plan liabilities may be reduced to better manage Duke Energy's benefit plan liabilities and reduce funded status volatility.
The Duke Energy Corporation Master Retirement Trust is authorized to engage in the lending of certain plan assets. Securities lending is an investment management enhancement that utilizes certain existing securities of the Duke Energy Corporation Master Retirement Trust to earn additional income. Securities lending involves the loaning of securities to approved parties. In return for the loaned securities, the Duke Energy Corporation Master Retirement Trust receives collateral in the form of cash and securities as a safeguard against possible default of any borrower on the return of the loan under terms that permit the Duke Energy Corporation Master Retirement Trust to sell the securities. The Duke Energy Corporation Master Retirement Trust mitigates credit risk associated with securities lending arrangements by monitoring the fair value of the securities loaned, with additional collateral obtained or refunded as necessary. The fair value of securities on loan was approximately $390 million and $542 million at December 31, 2022, and 2021, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned at December 31, 2022, and 2021, respectively. Securities lending income earned by the Duke Energy Corporation Master Retirement Trust was immaterial for the years ended December 31, 2022, 2021 and 2020, respectively.
Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Corporation Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.
The following table includes the target asset allocations by asset class at December 31, 2022, and the actual asset allocations for the RCBP assets.
Actual Allocation at
TargetDecember 31,
Allocation20222021
Global equity securities45 %49 %24 %
Global private equity securities2 %2 %1 %
Debt securities35 %30 %62 %
Return seeking debt securities7 %7 %4 %
Hedge funds4 %6 %3 %
Real estate and cash7 %6 %6 %
Total100 %100 %100 %
The following table includes the target asset allocations by asset class at December 31, 2022, and the actual asset allocations for the DELPP assets.
Actual Allocation at
TargetDecember 31,
Allocation20222021
Global equity securities14 %14 %24 %
Global private equity securities1 %— %1 %
Debt securities80 %80 %62 %
Return seeking debt securities2 %2 %4 %
Hedge funds1 %2 %3 %
Real estate and cash2 %2 %6 %
Total100 %100 %100 %
Other post-retirement assets
Duke Energy's other post-retirement assets are comprised of Voluntary Employees' Beneficiary Association (VEBA) trusts and 401(h) accounts held within the Duke Energy Corporation Master Retirement Trust. Duke Energy's investment objective is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants.
The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2022.
Actual Allocation at
TargetDecember 31,
Allocation20222021
U.S. equity securities30 %12 %19 %
Non-U.S. equity securities5 %5 %5 %
Real estate1 %3 %3 %
Debt securities45 %11 %18 %
Cash19 %69 %55 %
Total100 %100 %100 %
Fair Value Measurements
Duke Energy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 17.
Valuation methods of the primary fair value measurements disclosed below are as follows:
Investments in equity securities
Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When the price of an institutional commingled fund is unpublished, it is not categorized in the fair value hierarchy, even though the funds are readily available at the fair value.
Investments in corporate debt securities and U.S. government securities
Most debt investments are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3. U.S. Treasury debt is typically Level 2.
Investments in short-term investment funds
Investments in short-term investment funds are valued at the net asset value of units held at year end and are readily redeemable at the measurement date. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.
Duke Energy Corporation Master Retirement Trust
The following tables provide the fair value measurement amounts for the Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets.
December 31, 2022
Total FairNot
(in millions)ValueLevel 1Level 2Level 3
Categorized(b)
Equity securities$2,234 $2,014 $194 $— $26 
Corporate debt securities2,944 — 2,944 — — 
Short-term investment funds193 1 192 — — 
Partnership interests62 — — 62 — 
Hedge funds209 — — — 209 
U.S. government securities1,254 — 1,254 — — 
Governments bonds – foreign112 — 112 — — 
Cash45 45 — — — 
Government and commercial mortgage backed securities6 — 6 — — 
Net pending transactions and other investments14 5 9 — — 
Total assets(a)
$7,073 $2,065 $4,711 $62 $235 
(a)    Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%, respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2022. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)    Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
December 31, 2021
Total FairNot
(in millions)ValueLevel 1Level 2Level 3
Categorized(b)
Equity securities$2,575 $2,547 $— $— $28 
Corporate debt securities4,189 — 4,189 — — 
Short-term investment funds382 272 110 — — 
Partnership interests95 — — 95 — 
Hedge funds216 — — — 216 
U.S. government securities1,618 — 1,618 — — 
Governments bonds – foreign78 — 78 — — 
Cash144 144 — — — 
Government and commercial mortgage backed securities 2 — 2 — — 
Net pending transactions and other investments53 12 41 — — 
Total assets(a)
$9,352 $2,975 $6,038 $95 $244 
(a)    Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 26%, 32%, 15%, 17%, 5%, 7% and 4%, respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2021. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)    Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
The following table provides a reconciliation of beginning and ending balances of Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).
(in millions)20222021
Balance at January 1$95 $— 
Sales(18)— 
Total gains and other, net(8)— 
Transfer of Level 3 assets from other classifications(7)95 
Balance at December 31$62 $95 
Other post-retirement assets
The following tables provide the fair value measurement amounts for VEBA trust assets.
December 31, 2022
Total Fair
(in millions)ValueLevel 2
Cash and cash equivalents$11 $11 
Real estate2 2 
Equity securities12 12 
Debt securities8 8 
Total assets$33 $33 
December 31, 2021
Total Fair
(in millions)ValueLevel 2
Cash and cash equivalents$14 $14 
Real estate2 2 
Equity securities18 18 
Debt securities11 11 
Total assets$45 $45 
EMPLOYEE SAVINGS PLANS
Retirement Savings Plan
Duke Energy Corporation sponsors, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100% of employee before-tax and Roth 401(k) contributions of up to 6% of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS.
For new and rehired employees who are not eligible to participate in Duke Energy’s defined benefit plans, an additional employer contribution of 4% of eligible pay per pay period, which is subject to a three-year vesting schedule, is provided to the employee’s savings plan account. Certain Piedmont employees whose participation in a prior Piedmont defined benefit plan (that was frozen as of December 31, 2017) are eligible for employer transition credit contributions of 3% to 5% of eligible pay per period, for each pay period during the three-year period ending December 31, 2020.
The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Years ended December 31,
2022$246 $76 $65 $43 $22 $6 $12 $13 
2021229 70 60 39 21 5 12 11 
2020213 67 57 38 19 5 11 13