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Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Derivative Positions

The following tables show notional amounts of outstanding derivatives related to interest rate risk.


	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana		Ohio
Cash flow hedges	$	1,875	$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	2,477		650		1,500		500		1,000		300		27
Total notional amount	$	4,352	$	650	$	1,500	$	500	$	1,000	$	300	$	27


	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana		Ohio
Cash flow hedges	$	500	$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	2,377		1,250		800		500		300		300		27
Total notional amount	$	2,877	$	1,250	$	800	$	500	$	300	$	300	$	27

The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.


	September 30, 2023
		Duke		Duke	Duke	Duke
	Duke	Energy	Progress	Energy	Energy	Energy
	Energy	Carolinas	Energy	Progress	Ohio	Indiana	Piedmont
Electricity (GWh)	20,961	—	—	—	2,550	18,411	—
Natural gas (millions of dekatherms)	841	276	272	272	—	21	272


	December 31, 2022
		Duke		Duke	Duke	Duke
	Duke	Energy	Progress	Energy	Energy	Energy
	Energy	Carolinas	Energy	Progress	Ohio	Indiana	Piedmont
Electricity (GWh)	14,086	—	—	—	1,820	12,266	—
Natural gas (millions of dekatherms)	909	307	292	292	—	11	299

The following table shows Duke Energy's outstanding derivatives related to foreign currency risk at September 30, 2023.


										Fair Value Loss(a)
										(in millions)
	Pay Notional				Receive Notional		Receive		Hedge	Three Months Ended September 30,				Nine Months Ended September 30,
	(in millions)		Pay Rate		(in millions)		Rate		Maturity Date	2023		2022		2023		2022
Fair value hedges
	$	645	4.75	%	600	euros	3.10	%	June 2028	$	(20)	$	(41)	$	(10)	$	(57)
	537		5.31	%	500	euros	3.85	%	June 2034	(17)		(34)		(9)		(47)
Total notional amount	$	1,182			1,100	euros				$	(37)	$	(75)	$	(19)	$	(104)

(a) Amounts are recorded in Other Income and expenses, net on the Condensed Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Condensed Consolidated Statements of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded

Location and Fair Value of Derivatives Recognized in the Condensed Consolidated Balance Sheets

The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.


Derivative Assets	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts



Not Designated as Hedging Instruments
Current	$	57	$	11	$	14	$	9	$	5	$	2	$	28	$	1
Noncurrent	86		40		46		46		—		—		—		—
Total Derivative Assets – Commodity Contracts	$	143	$	51	$	60	$	55	$	5	$	2	$	28	$	1
Interest Rate Contracts
Designated as Hedging Instruments

Noncurrent	177		—		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current	104		26		78		—		78		—		—		—
Noncurrent	101		16		58		24		34		—		27		—
Total Derivative Assets – Interest Rate Contracts	$	382	$	42	$	136	$	24	$	112	$	—	$	27	$	—








Total Derivative Assets	$	525	$	93	$	196	$	79	$	117	$	2	$	55	$	1


Derivative Liabilities	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts



Not Designated as Hedging Instruments
Current	$	275	$	156	$	97	$	97	$	—	$	—	$	4	$	18
Noncurrent	215		48		40		40		—		—		—		127
Total Derivative Liabilities – Commodity Contracts	$	490	$	204	$	137	$	137	$	—	$	—	$	4	$	145
Interest Rate Contracts



Not Designated as Hedging Instruments

Noncurrent	1		—		—		—		—		1		—		—
Total Derivative Liabilities – Interest Rate Contracts	$	1	$	—	$	—	$	—	$	—	$	1	$	—	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	11		—		—		—		—		—		—		—



Total Derivative Liabilities – Foreign Currency Contracts	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities	$	520	$	204	$	137	$	137	$	—	$	1	$	4	$	145


Derivative Assets	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts



Not Designated as Hedging Instruments
Current	$	265	$	132	$	99	$	99	$	—	$	5	$	29	$	—
Noncurrent	213		104		108		108		—		—		—		—
Total Derivative Assets – Commodity Contracts	$	478	$	236	$	207	$	207	$	—	$	5	$	29	$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current	$	101	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Not Designated as Hedging Instruments
Current	$	216	$	94	$	41	$	23	$	17	$	—	$	81	$	—

Total Derivative Assets – Interest Rate Contracts	$	317	$	94	$	41	$	23	$	17	$	—	$	81	$	—








Total Derivative Assets	$	795	$	330	$	248	$	230	$	17	$	5	$	110	$	—


Derivative Liabilities	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts



Not Designated as Hedging Instruments
Current	$	175	$	96	$	36	$	18	$	19	$	—	$	16	$	27
Noncurrent	202		31		30		30		—		—		—		141
Total Derivative Liabilities – Commodity Contracts	$	377	$	127	$	66	$	48	$	19	$	—	$	16	$	168
Interest Rate Contracts



Not Designated as Hedging Instruments

Noncurrent	$	2	$	—	$	—	$	—	$	—	$	2	$	—	$	—
Total Derivative Liabilities – Interest Rate Contracts	$	2	$	—	$	—	$	—	$	—	$	2	$	—	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	40		—		—		—		—		—		—		—



Total Derivative Liabilities – Equity Securities Contracts	$	58	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities	$	437	$	127	$	66	$	48	$	19	$	2	$	16	$	168

Offsetting Assets

The following tables present the line items on the Condensed Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


Derivative Assets	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	161	$	37	$	92	$	9	$	83	$	2	$	28	$	1
Offset	(17)		(9)		(8)		(8)		—		—		—		—

Net amounts presented in Current Assets: Other	$	144	$	28	$	84	$	1	$	83	$	2	$	28	$	1
Noncurrent
Gross amounts recognized	$	364	$	56	$	104	$	70	$	34	$	—	$	27	$	—
Offset	(60)		(32)		(28)		(28)		—		—		—		—

Net amounts presented in Other Noncurrent Assets: Other	$	304	$	24	$	76	$	42	$	34	$	—	$	27	$	—


Derivative Liabilities	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	293	$	156	$	97	$	97	$	—	$	—	$	4	$	18
Offset	(17)		(9)		(8)		(8)		—		—		—		—
Cash collateral posted	(16)		(12)		(1)		(1)		—		—		(4)		—
Net amounts presented in Current Liabilities: Other	$	260	$	135	$	88	$	88	$	—	$	—	$	—	$	18
Noncurrent
Gross amounts recognized	$	227	$	48	$	40	$	40	$	—	$	1	$	—	$	127
Offset	(60)		(33)		(28)		(28)		—		—		—		—
Cash collateral posted	$	(8)	$	(7)	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Net amounts presented in Other Noncurrent Liabilities: Other	$	159	$	8	$	11	$	11	$	—	$	1	$	—	$	127


Derivative Assets	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	582	$	226	$	140	$	122	$	17	$	5	$	110	$	—
Offset	(33)		(15)		(18)		(18)		—		—		—		—
Cash collateral received	(31)		(18)		(12)		(12)		—		—		—		—
Net amounts presented in Current Assets: Other	$	518	$	193	$	110	$	92	$	17	$	5	$	110	$	—
Noncurrent
Gross amounts recognized	$	213	$	104	$	108	$	108	$	—	$	—	$	—	$	—
Offset	(59)		(29)		(30)		(30)		—		—		—		—
Cash collateral received	(38)		(11)		(27)		(27)		—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	$	116	$	64	$	51	$	51	$	—	$	—	$	—	$	—


Derivative Liabilities	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	193	$	96	$	36	$	18	$	19	$	—	$	16	$	27
Offset	(33)		(15)		(18)		(18)		—		—		—		—
Cash collateral posted	(16)		—		—		—		—		—		(16)		—
Net amounts presented in Current Liabilities: Other	$	144	$	81	$	18	$	—	$	19	$	—	$	—	$	27
Noncurrent
Gross amounts recognized	$	244	$	31	$	30	$	30	$	—	$	2	$	—	$	141
Offset	(59)		(29)		(30)		(30)		—		—		—		—

Net amounts presented in Other Noncurrent Liabilities: Other	$	185	$	2	$	—	$	—	$	—	$	2	$	—	$	141

Offsetting Liabilities


Derivative Assets	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	161	$	37	$	92	$	9	$	83	$	2	$	28	$	1
Offset	(17)		(9)		(8)		(8)		—		—		—		—

Net amounts presented in Current Assets: Other	$	144	$	28	$	84	$	1	$	83	$	2	$	28	$	1
Noncurrent
Gross amounts recognized	$	364	$	56	$	104	$	70	$	34	$	—	$	27	$	—
Offset	(60)		(32)		(28)		(28)		—		—		—		—

Net amounts presented in Other Noncurrent Assets: Other	$	304	$	24	$	76	$	42	$	34	$	—	$	27	$	—


Derivative Liabilities	September 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	293	$	156	$	97	$	97	$	—	$	—	$	4	$	18
Offset	(17)		(9)		(8)		(8)		—		—		—		—
Cash collateral posted	(16)		(12)		(1)		(1)		—		—		(4)		—
Net amounts presented in Current Liabilities: Other	$	260	$	135	$	88	$	88	$	—	$	—	$	—	$	18
Noncurrent
Gross amounts recognized	$	227	$	48	$	40	$	40	$	—	$	1	$	—	$	127
Offset	(60)		(33)		(28)		(28)		—		—		—		—
Cash collateral posted	$	(8)	$	(7)	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Net amounts presented in Other Noncurrent Liabilities: Other	$	159	$	8	$	11	$	11	$	—	$	1	$	—	$	127


Derivative Assets	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	582	$	226	$	140	$	122	$	17	$	5	$	110	$	—
Offset	(33)		(15)		(18)		(18)		—		—		—		—
Cash collateral received	(31)		(18)		(12)		(12)		—		—		—		—
Net amounts presented in Current Assets: Other	$	518	$	193	$	110	$	92	$	17	$	5	$	110	$	—
Noncurrent
Gross amounts recognized	$	213	$	104	$	108	$	108	$	—	$	—	$	—	$	—
Offset	(59)		(29)		(30)		(30)		—		—		—		—
Cash collateral received	(38)		(11)		(27)		(27)		—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	$	116	$	64	$	51	$	51	$	—	$	—	$	—	$	—


Derivative Liabilities	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	193	$	96	$	36	$	18	$	19	$	—	$	16	$	27
Offset	(33)		(15)		(18)		(18)		—		—		—		—
Cash collateral posted	(16)		—		—		—		—		—		(16)		—
Net amounts presented in Current Liabilities: Other	$	144	$	81	$	18	$	—	$	19	$	—	$	—	$	27
Noncurrent
Gross amounts recognized	$	244	$	31	$	30	$	30	$	—	$	2	$	—	$	141
Offset	(59)		(29)		(30)		(30)		—		—		—		—

Net amounts presented in Other Noncurrent Liabilities: Other	$	185	$	2	$	—	$	—	$	—	$	2	$	—	$	141

Derivative Contracts with Contingent Credit Features

The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit risk-related payment provisions.


	September 30, 2023
			Duke				Duke
	Duke		Energy		Progress		Energy
(in millions)	Energy		Carolinas		Energy		Progress
Aggregate fair value of derivatives in a net liability position	$	312	$	175	$	138	$	138
Fair value of collateral already posted	21		19		2		2
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered	$	291	$	156	$	136	$	136


	December 31, 2022
			Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida
Aggregate fair value of derivatives in a net liability position	$	141	$	86	$	55	$	48	$	7
Fair value of collateral already posted	—		—		—		—		—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered	$	141	$	86	$	55	$	48	$	7

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details