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, 2023, and December 31, 2022.


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	160	$	—	$	—	$	215
Equity securities	4,218		44		6,530		3,658		105		5,871
Corporate debt securities	—		80		612		1		85		641
Municipal bonds	—		41		318		—		39		330
U.S. government bonds	—		136		1,470		2		112		1,423

Other debt securities	—		18		169		—		18		156
Total NDTF Investments	$	4,218	$	319	$	9,259	$	3,661	$	359	$	8,636
Other Investments
Cash and cash equivalents	$	—	$	—	$	36	$	—	$	—	$	22
Equity securities	26		9		141		21		16		128
Corporate debt securities	—		10		83		—		12		84
Municipal bonds	—		3		74		—		3		78
U.S. government bonds	—		5		46		—		2		62
Other debt securities	—		5		52		—		3		41
Total Other Investments	$	26	$	32	$	432	$	21	$	36	$	415
Total Investments	$	4,244	$	351	$	9,691	$	3,682	$	395	$	9,051

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, 2023, and 2022, were as follows.


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
FV-NI:
Realized gains	$	61	$	25	$	107	$	170
Realized losses	35		61		117		247
AFS:
Realized gains	16		7		37		22
Realized losses	45		40		104		105


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	59	$	—	$	—	$	117
Equity securities	2,468		25		3,767		2,147		51		3,367
Corporate debt securities	—		60		376		1		62		401
Municipal bonds	—		9		45		—		10		64
U.S. government bonds	—		73		745		1		51		685
Other debt securities	—		18		163		—		18		148
Total NDTF Investments	$	2,468	$	185	$	5,155	$	2,149	$	192	$	4,782


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
FV-NI:
Realized gains	$	43	$	16	$	70	$	109
Realized losses	17		39		64		143
AFS:
Realized gains	12		7		21		19
Realized losses	26		20		54		57


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	101	$	—	$	—	$	98
Equity securities	1,750		19		2,763		1,511		54		2,504
Corporate debt securities	—		20		236		—		23		240
Municipal bonds	—		32		273		—		29		266
U.S. government bonds	—		63		725		1		61		738

Other debt securities	—		—		6		—		—		8
Total NDTF Investments	$	1,750	$	134	$	4,104	$	1,512	$	167	$	3,854
Other Investments
Cash and cash equivalents	$	—	$	—	$	8	$	—	$	—	$	11

Municipal bonds	—		—		23		—		—		25
Total Other Investments	$	—	$	—	$	31	$	—	$	—	$	36
Total Investments	$	1,750	$	134	$	4,135	$	1,512	$	167	$	3,890


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
FV-NI:
Realized gains	$	18	$	9	$	37	$	61
Realized losses	18		22		53		104
AFS:
Realized gains	4		—		16		3
Realized losses	19		9		50		32


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	62	$	—	$	—	$	56
Equity securities	1,661		19		2,663		1,431		54		2,411
Corporate debt securities	—		19		224		—		22		230
Municipal bonds	—		32		273		—		29		266
U.S. government bonds	—		43		469		1		37		460
Other debt securities	—		—		5		—		—		7
Total NDTF Investments	$	1,661	$	113	$	3,696	$	1,432	$	142	$	3,430
Other Investments
Cash and cash equivalents	$	—	$	—	$	4	$	—	$	—	$	9
Total Other Investments	$	—	$	—	$	4	$	—	$	—	$	9
Total Investments	$	1,661	$	113	$	3,700	$	1,432	$	142	$	3,439


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
FV-NI:
Realized gains	$	15	$	9	$	34	$	60
Realized losses	18		21		52		101
AFS:
Realized gains	4		—		15		3
Realized losses	18		9		47		29


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	39	$	—	$	—	$	42
Equity securities	89		—		100		80		—		93
Corporate debt securities	—		1		12		—		1		10

U.S. government bonds	—		20		256		—		24		278

Other debt securities	—		—		1		—		—		1
Total NDTF Investments(a)	$	89	$	21	$	408	$	80	$	25	$	424
Other Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	1

Municipal bonds	—		—		23		—		—		25
Total Other Investments	$	—	$	—	$	24	$	—	$	—	$	26
Total Investments	$	89	$	21	$	432	$	80	$	25	$	450

(a)During the nine months ended September 30, 2023, and the year ended December 31, 2022, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.


	September 30, 2023						December 31, 2022
	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	$	—	$	—	$	3	$	—	$	—	$	1
Equity securities	3		9		88		2		16		79
Corporate debt securities	—		—		9		—		1		8
Municipal bonds	—		3		44		—		3		45
U.S. government bonds	—		—		6		—		—		7

Total Investments	$	3	$	12	$	150	$	2	$	20	$	140


	September 30, 2023
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	137	$	7	$	109	$	21	$	88	$	7
Due after one through five years	671		209		388		235		153		19
Due after five through 10 years	545		311		197		184		13		10
Due after 10 years	1,471		802		569		531		38		23
Total	$	2,824	$	1,329	$	1,263	$	971	$	292	$	59