Business Segments

9 Months Ended

Sep. 30, 2011

Business Segments

2. Business Segments

Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT.

Duke Energy

Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of Duke Energy Ohio including Duke Energy Kentucky, and Duke Energy Indiana.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. In addition, DEGS engages in the development, construction and operation of renewable energy projects and is also developing transmission projects.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC (Duke Energy International) and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes certain unallocated corporate costs, which include certain costs not allocable to Duke Energy' reportable business segments, primarily governance, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes, Bison Insurance Company Limited (Bison), Duke Energy's wholly-owned, captive insurance subsidiary, Duke Energy's 50% interest in DukeNet Communications, LLC (DukeNet) and related telecommunications businesses, and Duke Energy Trading and Marketing, LLC (DETM), which is 40% owned by Exxon Mobil Corporation and 60% owned by Duke Energy. Prior to the sale of a 50% ownership in DukeNet to investment funds managed by Alinda Capital Partners, LLC (collectively Alinda) in December 2010, Other reflected the results of Duke Energy's 100% ownership of DukeNet.

Business Segment Data

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
USFE&G(a)	$	2,917		$	9		$	2,926		$	721		$	352
Commercial Power		684			3			687			67			56
International Energy		360			—			360			168			23
Total reportable segments		3,961			12			3,973			956			431
Other		3			11			14			(74	)		24
Eliminations		—			(23	)		(23	)		—			—
Interest expense		—			—			—			(213	)		—
Interest income and other(d)		—			—			—			7			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			1			—
Total consolidated	$	3,964		$	—		$	3,964		$	677		$	455
Three Months Ended September 30, 2010
USFE&G(a)	$	2,934		$	10		$	2,944		$	946		$	350
Commercial Power		736			1			737			188			54
International Energy		273			—			273			110			21
Total reportable segments		3,943			11			3,954			1,244			425
Other(c)		3			14			17			(100	)		22
Eliminations		—			(25	)		(25	)		—			—
Interest expense		—			—			—			(202	)		—
Interest income and other(d)		—			—			—			25			—
Total consolidated	$	3,946		$	—		$	3,946		$	967		$	447
Nine Months Ended September 30, 2011
USFE&G(a)	$	8,131		$	27		$	8,158		$	2,052		$	1,032
Commercial Power		1,918			8			1,926			217			173
International Energy		1,114			—			1,114			527			66
Total reportable segments		11,163			35			11,198			2,796			1,271
Other		(2	)		36			34			(176	)		75
Eliminations		—			(71	)		(71	)		—			—
Interest expense		—			—			—			(635	)		—
Interest income and other(d)		—			—			—			53			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—
Total consolidated	$	11,161		$	—		$	11,161		$	2,056		$	1,346

	Unaffiliated Revenues		Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Nine Months Ended September 30, 2010
USFE&G(a)	$	8,017	$	25		$	8,042		$	2,361		$	1,033
Commercial Power(b)		1,850		6			1,856			(287	)		167
International Energy		919		—			919			376			63
Total reportable segments		10,786		31			10,817			2,450			1,263
Other(c)		41		41			82			(368	)		66
Eliminations		—		(72	)		(72	)		—			—
Interest expense		—		—			—			(624	)		—
Interest income and other(d)		—		—			—			62			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—		—			—			16			—
Total consolidated	$	10,827	$	—		$	10,827		$	1,536		$	1,329

(a) As discussed in Note 4, Duke Energy recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

(b) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

(c) During the three and nine months ended September 30, 2010, Other recorded a $20 million and $164 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

(d) Other within Interest Income and Other includes foreign currency transaction gains and losses and additional noncontrolling interest amounts not allocated to the reportable segments and Other results.

Segment assets in the following table exclude all intercompany assets.

Segment Assets

	September 30, 2011		December 31, 2010
	(in millions)
USFE&G	$	46,827	$	45,210
Commercial Power		6,739		6,704
International Energy		4,379		4,310
Total reportable segments		57,945		56,224
Other		2,730		2,845
Reclassifications(a)		101		21
Total consolidated assets	$	60,776	$	59,090

(a) Primarily represents reclassification of federal tax balances in consolidation.

Duke Energy Carolinas

Duke Energy Carolinas has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Carolinas, which consists of the regulated electric utility business in North Carolina and South Carolina.

The remainder of Duke Energy Carolinas' operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain corporate governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/ Consolidated Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric	$	627		$	654		$	1,486		$	1,567
Total reportable segment		627			654			1,486			1,567
Other(a)		(40	)		(85	)		(121	)		(244	)
Interest expense		(93	)		(95	)		(264	)		(271	)
Interest income		1			3			9			21
Total consolidated	$	495		$	477		$	1,110		$	1,073

(a) During the three and nine months ended September 30, 2010, Other recorded a $13 million and a $98 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, substantially all of Duke Energy Carolinas' assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in southwestern Ohio and generates, transmits, distributes, and sells electricity in northern Kentucky. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly-owned subsidiary Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which is included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Unaffiliated Revenues  (a)		Segment EBIT/ Consolidated Income (Loss) Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
Franchised Electric and Gas	$	333	$	93		$	42
Commercial Power		505		44			41
Total reportable segments		838		137			83
Other		—		(16	)		—
Interest expense		—		(27	)		—
Interest income and other		—		3			—
Total consolidated	$	838	$	97		$	83
Three Months Ended September 30, 2010
Franchised Electric and Gas	$	367	$	102		$	56
Commercial Power(c)		556		196			41
Total reportable segments		923		298			97
Other		—		(19	)		—
Interest expense		—		(26	)		—
Interest income and other		—		8			—
Total consolidated	$	923	$	261		$	97
Nine Months Ended September 30, 2011
Franchised Electric and Gas	$	1,112	$	251		$	133
Commercial Power		1,299		118			126
Total reportable segments		2,411		369			259
Other		—		(52	)		—
Interest expense		—		(78	)		—
Interest income and other		—		10			—
Total consolidated	$	2,411	$	249		$	259
Nine Months Ended September 30, 2010
Franchised Electric and Gas(b)	$	1,204	$	69		$	168
Commercial Power(c)		1,345		(273	)		132
Total reportable segments		2,549		(204	)		300
Other		—		(71	)		—
Interest expense		—		(84	)		—
Interest income and other		—		17			—
Total consolidated	$	2,549	$	(342	)	$	300

(a) There was an insignificant amount of intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

(b) In the second quarter of 2010, Franchised Electric and Gas recorded a goodwill impairment charge of $216 million related to the Ohio Transmission and Distribution (Ohio T&D) reporting unit. This impairment charge was not applicable to Duke Energy. See Note 7 for additional information.

(c) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

Segment Assets

	September 30, 2011			December 31, 2010
	(in millions)
Franchised Electric and Gas	$	6,210		$	6,258
Commercial Power		4,573			4,821
Total reportable segments		10,783			11,079
Other		162			192
Eliminations and reclassifications		(286	)		(247	)
Total consolidated assets	$	10,659		$	11,024

Duke Energy Indiana

Duke Energy Indiana has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Indiana, which consists of the regulated electric utility business in north central, central and southern Indiana.

The remainder of Duke Energy Indiana's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/Consolidated (Loss)/Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric(a)	$	(6	)	$	178		$	295		$	484
Total reportable segment		(6	)		178			295			484
Other		(13	)		(15	)		(39	)		(65	)
Interest expense		(34	)		(32	)		(104	)		(99	)
Interest income and other		3			5			11			11
Total consolidated	$	(50	)	$	136		$	163		$	331

(a) As discussed in Note 4, Duke Energy Indiana recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, all of Duke Energy Indiana's assets are owned by its Franchised Electric operating segment.

Duke Energy Corp [Member]

Business Segments

2. Business Segments

Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT.

Duke Energy

Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of Duke Energy Ohio including Duke Energy Kentucky, and Duke Energy Indiana.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. In addition, DEGS engages in the development, construction and operation of renewable energy projects and is also developing transmission projects.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC (Duke Energy International) and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes certain unallocated corporate costs, which include certain costs not allocable to Duke Energy' reportable business segments, primarily governance, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes, Bison Insurance Company Limited (Bison), Duke Energy's wholly-owned, captive insurance subsidiary, Duke Energy's 50% interest in DukeNet Communications, LLC (DukeNet) and related telecommunications businesses, and Duke Energy Trading and Marketing, LLC (DETM), which is 40% owned by Exxon Mobil Corporation and 60% owned by Duke Energy. Prior to the sale of a 50% ownership in DukeNet to investment funds managed by Alinda Capital Partners, LLC (collectively Alinda) in December 2010, Other reflected the results of Duke Energy's 100% ownership of DukeNet.

Business Segment Data

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
USFE&G(a)	$	2,917		$	9		$	2,926		$	721		$	352
Commercial Power		684			3			687			67			56
International Energy		360			—			360			168			23
Total reportable segments		3,961			12			3,973			956			431
Other		3			11			14			(74	)		24
Eliminations		—			(23	)		(23	)		—			—
Interest expense		—			—			—			(213	)		—
Interest income and other(d)		—			—			—			7			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			1			—
Total consolidated	$	3,964		$	—		$	3,964		$	677		$	455
Three Months Ended September 30, 2010
USFE&G(a)	$	2,934		$	10		$	2,944		$	946		$	350
Commercial Power		736			1			737			188			54
International Energy		273			—			273			110			21
Total reportable segments		3,943			11			3,954			1,244			425
Other(c)		3			14			17			(100	)		22
Eliminations		—			(25	)		(25	)		—			—
Interest expense		—			—			—			(202	)		—
Interest income and other(d)		—			—			—			25			—
Total consolidated	$	3,946		$	—		$	3,946		$	967		$	447
Nine Months Ended September 30, 2011
USFE&G(a)	$	8,131		$	27		$	8,158		$	2,052		$	1,032
Commercial Power		1,918			8			1,926			217			173
International Energy		1,114			—			1,114			527			66
Total reportable segments		11,163			35			11,198			2,796			1,271
Other		(2	)		36			34			(176	)		75
Eliminations		—			(71	)		(71	)		—			—
Interest expense		—			—			—			(635	)		—
Interest income and other(d)		—			—			—			53			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—
Total consolidated	$	11,161		$	—		$	11,161		$	2,056		$	1,346

	Unaffiliated Revenues		Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Nine Months Ended September 30, 2010
USFE&G(a)	$	8,017	$	25		$	8,042		$	2,361		$	1,033
Commercial Power(b)		1,850		6			1,856			(287	)		167
International Energy		919		—			919			376			63
Total reportable segments		10,786		31			10,817			2,450			1,263
Other(c)		41		41			82			(368	)		66
Eliminations		—		(72	)		(72	)		—			—
Interest expense		—		—			—			(624	)		—
Interest income and other(d)		—		—			—			62			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—		—			—			16			—
Total consolidated	$	10,827	$	—		$	10,827		$	1,536		$	1,329

(a) As discussed in Note 4, Duke Energy recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

(b) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

(c) During the three and nine months ended September 30, 2010, Other recorded a $20 million and $164 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

(d) Other within Interest Income and Other includes foreign currency transaction gains and losses and additional noncontrolling interest amounts not allocated to the reportable segments and Other results.

Segment assets in the following table exclude all intercompany assets.

Segment Assets

	September 30, 2011		December 31, 2010
	(in millions)
USFE&G	$	46,827	$	45,210
Commercial Power		6,739		6,704
International Energy		4,379		4,310
Total reportable segments		57,945		56,224
Other		2,730		2,845
Reclassifications(a)		101		21
Total consolidated assets	$	60,776	$	59,090

(a) Primarily represents reclassification of federal tax balances in consolidation.

Duke Energy Carolinas

Duke Energy Carolinas has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Carolinas, which consists of the regulated electric utility business in North Carolina and South Carolina.

The remainder of Duke Energy Carolinas' operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain corporate governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/ Consolidated Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric	$	627		$	654		$	1,486		$	1,567
Total reportable segment		627			654			1,486			1,567
Other(a)		(40	)		(85	)		(121	)		(244	)
Interest expense		(93	)		(95	)		(264	)		(271	)
Interest income		1			3			9			21
Total consolidated	$	495		$	477		$	1,110		$	1,073

(a) During the three and nine months ended September 30, 2010, Other recorded a $13 million and a $98 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, substantially all of Duke Energy Carolinas' assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in southwestern Ohio and generates, transmits, distributes, and sells electricity in northern Kentucky. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly-owned subsidiary Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which is included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Unaffiliated Revenues  (a)		Segment EBIT/ Consolidated Income (Loss) Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
Franchised Electric and Gas	$	333	$	93		$	42
Commercial Power		505		44			41
Total reportable segments		838		137			83
Other		—		(16	)		—
Interest expense		—		(27	)		—
Interest income and other		—		3			—
Total consolidated	$	838	$	97		$	83
Three Months Ended September 30, 2010
Franchised Electric and Gas	$	367	$	102		$	56
Commercial Power(c)		556		196			41
Total reportable segments		923		298			97
Other		—		(19	)		—
Interest expense		—		(26	)		—
Interest income and other		—		8			—
Total consolidated	$	923	$	261		$	97
Nine Months Ended September 30, 2011
Franchised Electric and Gas	$	1,112	$	251		$	133
Commercial Power		1,299		118			126
Total reportable segments		2,411		369			259
Other		—		(52	)		—
Interest expense		—		(78	)		—
Interest income and other		—		10			—
Total consolidated	$	2,411	$	249		$	259
Nine Months Ended September 30, 2010
Franchised Electric and Gas(b)	$	1,204	$	69		$	168
Commercial Power(c)		1,345		(273	)		132
Total reportable segments		2,549		(204	)		300
Other		—		(71	)		—
Interest expense		—		(84	)		—
Interest income and other		—		17			—
Total consolidated	$	2,549	$	(342	)	$	300

(a) There was an insignificant amount of intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

(b) In the second quarter of 2010, Franchised Electric and Gas recorded a goodwill impairment charge of $216 million related to the Ohio Transmission and Distribution (Ohio T&D) reporting unit. This impairment charge was not applicable to Duke Energy. See Note 7 for additional information.

(c) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

Segment Assets

	September 30, 2011			December 31, 2010
	(in millions)
Franchised Electric and Gas	$	6,210		$	6,258
Commercial Power		4,573			4,821
Total reportable segments		10,783			11,079
Other		162			192
Eliminations and reclassifications		(286	)		(247	)
Total consolidated assets	$	10,659		$	11,024

Duke Energy Indiana

Duke Energy Indiana has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Indiana, which consists of the regulated electric utility business in north central, central and southern Indiana.

The remainder of Duke Energy Indiana's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/Consolidated (Loss)/Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric(a)	$	(6	)	$	178		$	295		$	484
Total reportable segment		(6	)		178			295			484
Other		(13	)		(15	)		(39	)		(65	)
Interest expense		(34	)		(32	)		(104	)		(99	)
Interest income and other		3			5			11			11
Total consolidated	$	(50	)	$	136		$	163		$	331

(a) As discussed in Note 4, Duke Energy Indiana recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, all of Duke Energy Indiana's assets are owned by its Franchised Electric operating segment.

Duke Energy Carolinas [Member]

Business Segments

2. Business Segments

Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT.

Duke Energy

Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of Duke Energy Ohio including Duke Energy Kentucky, and Duke Energy Indiana.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. In addition, DEGS engages in the development, construction and operation of renewable energy projects and is also developing transmission projects.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC (Duke Energy International) and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes certain unallocated corporate costs, which include certain costs not allocable to Duke Energy' reportable business segments, primarily governance, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes, Bison Insurance Company Limited (Bison), Duke Energy's wholly-owned, captive insurance subsidiary, Duke Energy's 50% interest in DukeNet Communications, LLC (DukeNet) and related telecommunications businesses, and Duke Energy Trading and Marketing, LLC (DETM), which is 40% owned by Exxon Mobil Corporation and 60% owned by Duke Energy. Prior to the sale of a 50% ownership in DukeNet to investment funds managed by Alinda Capital Partners, LLC (collectively Alinda) in December 2010, Other reflected the results of Duke Energy's 100% ownership of DukeNet.

Business Segment Data

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
USFE&G(a)	$	2,917		$	9		$	2,926		$	721		$	352
Commercial Power		684			3			687			67			56
International Energy		360			—			360			168			23
Total reportable segments		3,961			12			3,973			956			431
Other		3			11			14			(74	)		24
Eliminations		—			(23	)		(23	)		—			—
Interest expense		—			—			—			(213	)		—
Interest income and other(d)		—			—			—			7			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			1			—
Total consolidated	$	3,964		$	—		$	3,964		$	677		$	455
Three Months Ended September 30, 2010
USFE&G(a)	$	2,934		$	10		$	2,944		$	946		$	350
Commercial Power		736			1			737			188			54
International Energy		273			—			273			110			21
Total reportable segments		3,943			11			3,954			1,244			425
Other(c)		3			14			17			(100	)		22
Eliminations		—			(25	)		(25	)		—			—
Interest expense		—			—			—			(202	)		—
Interest income and other(d)		—			—			—			25			—
Total consolidated	$	3,946		$	—		$	3,946		$	967		$	447
Nine Months Ended September 30, 2011
USFE&G(a)	$	8,131		$	27		$	8,158		$	2,052		$	1,032
Commercial Power		1,918			8			1,926			217			173
International Energy		1,114			—			1,114			527			66
Total reportable segments		11,163			35			11,198			2,796			1,271
Other		(2	)		36			34			(176	)		75
Eliminations		—			(71	)		(71	)		—			—
Interest expense		—			—			—			(635	)		—
Interest income and other(d)		—			—			—			53			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—
Total consolidated	$	11,161		$	—		$	11,161		$	2,056		$	1,346

	Unaffiliated Revenues		Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Nine Months Ended September 30, 2010
USFE&G(a)	$	8,017	$	25		$	8,042		$	2,361		$	1,033
Commercial Power(b)		1,850		6			1,856			(287	)		167
International Energy		919		—			919			376			63
Total reportable segments		10,786		31			10,817			2,450			1,263
Other(c)		41		41			82			(368	)		66
Eliminations		—		(72	)		(72	)		—			—
Interest expense		—		—			—			(624	)		—
Interest income and other(d)		—		—			—			62			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—		—			—			16			—
Total consolidated	$	10,827	$	—		$	10,827		$	1,536		$	1,329

(a) As discussed in Note 4, Duke Energy recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

(b) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

(c) During the three and nine months ended September 30, 2010, Other recorded a $20 million and $164 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

(d) Other within Interest Income and Other includes foreign currency transaction gains and losses and additional noncontrolling interest amounts not allocated to the reportable segments and Other results.

Segment assets in the following table exclude all intercompany assets.

Segment Assets

	September 30, 2011		December 31, 2010
	(in millions)
USFE&G	$	46,827	$	45,210
Commercial Power		6,739		6,704
International Energy		4,379		4,310
Total reportable segments		57,945		56,224
Other		2,730		2,845
Reclassifications(a)		101		21
Total consolidated assets	$	60,776	$	59,090

(a) Primarily represents reclassification of federal tax balances in consolidation.

Duke Energy Carolinas

Duke Energy Carolinas has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Carolinas, which consists of the regulated electric utility business in North Carolina and South Carolina.

The remainder of Duke Energy Carolinas' operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain corporate governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/ Consolidated Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric	$	627		$	654		$	1,486		$	1,567
Total reportable segment		627			654			1,486			1,567
Other(a)		(40	)		(85	)		(121	)		(244	)
Interest expense		(93	)		(95	)		(264	)		(271	)
Interest income		1			3			9			21
Total consolidated	$	495		$	477		$	1,110		$	1,073

(a) During the three and nine months ended September 30, 2010, Other recorded a $13 million and a $98 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, substantially all of Duke Energy Carolinas' assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in southwestern Ohio and generates, transmits, distributes, and sells electricity in northern Kentucky. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly-owned subsidiary Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which is included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Unaffiliated Revenues  (a)		Segment EBIT/ Consolidated Income (Loss) Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
Franchised Electric and Gas	$	333	$	93		$	42
Commercial Power		505		44			41
Total reportable segments		838		137			83
Other		—		(16	)		—
Interest expense		—		(27	)		—
Interest income and other		—		3			—
Total consolidated	$	838	$	97		$	83
Three Months Ended September 30, 2010
Franchised Electric and Gas	$	367	$	102		$	56
Commercial Power(c)		556		196			41
Total reportable segments		923		298			97
Other		—		(19	)		—
Interest expense		—		(26	)		—
Interest income and other		—		8			—
Total consolidated	$	923	$	261		$	97
Nine Months Ended September 30, 2011
Franchised Electric and Gas	$	1,112	$	251		$	133
Commercial Power		1,299		118			126
Total reportable segments		2,411		369			259
Other		—		(52	)		—
Interest expense		—		(78	)		—
Interest income and other		—		10			—
Total consolidated	$	2,411	$	249		$	259
Nine Months Ended September 30, 2010
Franchised Electric and Gas(b)	$	1,204	$	69		$	168
Commercial Power(c)		1,345		(273	)		132
Total reportable segments		2,549		(204	)		300
Other		—		(71	)		—
Interest expense		—		(84	)		—
Interest income and other		—		17			—
Total consolidated	$	2,549	$	(342	)	$	300

(a) There was an insignificant amount of intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

(b) In the second quarter of 2010, Franchised Electric and Gas recorded a goodwill impairment charge of $216 million related to the Ohio Transmission and Distribution (Ohio T&D) reporting unit. This impairment charge was not applicable to Duke Energy. See Note 7 for additional information.

(c) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

Segment Assets

	September 30, 2011			December 31, 2010
	(in millions)
Franchised Electric and Gas	$	6,210		$	6,258
Commercial Power		4,573			4,821
Total reportable segments		10,783			11,079
Other		162			192
Eliminations and reclassifications		(286	)		(247	)
Total consolidated assets	$	10,659		$	11,024

Duke Energy Indiana

Duke Energy Indiana has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Indiana, which consists of the regulated electric utility business in north central, central and southern Indiana.

The remainder of Duke Energy Indiana's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/Consolidated (Loss)/Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric(a)	$	(6	)	$	178		$	295		$	484
Total reportable segment		(6	)		178			295			484
Other		(13	)		(15	)		(39	)		(65	)
Interest expense		(34	)		(32	)		(104	)		(99	)
Interest income and other		3			5			11			11
Total consolidated	$	(50	)	$	136		$	163		$	331

(a) As discussed in Note 4, Duke Energy Indiana recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, all of Duke Energy Indiana's assets are owned by its Franchised Electric operating segment.

Duke Energy Indiana [Member]

Business Segments

2. Business Segments

Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT.

Duke Energy

Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of Duke Energy Ohio including Duke Energy Kentucky, and Duke Energy Indiana.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. In addition, DEGS engages in the development, construction and operation of renewable energy projects and is also developing transmission projects.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC (Duke Energy International) and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes certain unallocated corporate costs, which include certain costs not allocable to Duke Energy' reportable business segments, primarily governance, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes, Bison Insurance Company Limited (Bison), Duke Energy's wholly-owned, captive insurance subsidiary, Duke Energy's 50% interest in DukeNet Communications, LLC (DukeNet) and related telecommunications businesses, and Duke Energy Trading and Marketing, LLC (DETM), which is 40% owned by Exxon Mobil Corporation and 60% owned by Duke Energy. Prior to the sale of a 50% ownership in DukeNet to investment funds managed by Alinda Capital Partners, LLC (collectively Alinda) in December 2010, Other reflected the results of Duke Energy's 100% ownership of DukeNet.

Business Segment Data

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
USFE&G(a)	$	2,917		$	9		$	2,926		$	721		$	352
Commercial Power		684			3			687			67			56
International Energy		360			—			360			168			23
Total reportable segments		3,961			12			3,973			956			431
Other		3			11			14			(74	)		24
Eliminations		—			(23	)		(23	)		—			—
Interest expense		—			—			—			(213	)		—
Interest income and other(d)		—			—			—			7			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			1			—
Total consolidated	$	3,964		$	—		$	3,964		$	677		$	455
Three Months Ended September 30, 2010
USFE&G(a)	$	2,934		$	10		$	2,944		$	946		$	350
Commercial Power		736			1			737			188			54
International Energy		273			—			273			110			21
Total reportable segments		3,943			11			3,954			1,244			425
Other(c)		3			14			17			(100	)		22
Eliminations		—			(25	)		(25	)		—			—
Interest expense		—			—			—			(202	)		—
Interest income and other(d)		—			—			—			25			—
Total consolidated	$	3,946		$	—		$	3,946		$	967		$	447
Nine Months Ended September 30, 2011
USFE&G(a)	$	8,131		$	27		$	8,158		$	2,052		$	1,032
Commercial Power		1,918			8			1,926			217			173
International Energy		1,114			—			1,114			527			66
Total reportable segments		11,163			35			11,198			2,796			1,271
Other		(2	)		36			34			(176	)		75
Eliminations		—			(71	)		(71	)		—			—
Interest expense		—			—			—			(635	)		—
Interest income and other(d)		—			—			—			53			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—
Total consolidated	$	11,161		$	—		$	11,161		$	2,056		$	1,346

	Unaffiliated Revenues		Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Nine Months Ended September 30, 2010
USFE&G(a)	$	8,017	$	25		$	8,042		$	2,361		$	1,033
Commercial Power(b)		1,850		6			1,856			(287	)		167
International Energy		919		—			919			376			63
Total reportable segments		10,786		31			10,817			2,450			1,263
Other(c)		41		41			82			(368	)		66
Eliminations		—		(72	)		(72	)		—			—
Interest expense		—		—			—			(624	)		—
Interest income and other(d)		—		—			—			62			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—		—			—			16			—
Total consolidated	$	10,827	$	—		$	10,827		$	1,536		$	1,329

(a) As discussed in Note 4, Duke Energy recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

(b) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

(c) During the three and nine months ended September 30, 2010, Other recorded a $20 million and $164 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

(d) Other within Interest Income and Other includes foreign currency transaction gains and losses and additional noncontrolling interest amounts not allocated to the reportable segments and Other results.

Segment assets in the following table exclude all intercompany assets.

Segment Assets

	September 30, 2011		December 31, 2010
	(in millions)
USFE&G	$	46,827	$	45,210
Commercial Power		6,739		6,704
International Energy		4,379		4,310
Total reportable segments		57,945		56,224
Other		2,730		2,845
Reclassifications(a)		101		21
Total consolidated assets	$	60,776	$	59,090

(a) Primarily represents reclassification of federal tax balances in consolidation.

Duke Energy Carolinas

Duke Energy Carolinas has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Carolinas, which consists of the regulated electric utility business in North Carolina and South Carolina.

The remainder of Duke Energy Carolinas' operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain corporate governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/ Consolidated Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric	$	627		$	654		$	1,486		$	1,567
Total reportable segment		627			654			1,486			1,567
Other(a)		(40	)		(85	)		(121	)		(244	)
Interest expense		(93	)		(95	)		(264	)		(271	)
Interest income		1			3			9			21
Total consolidated	$	495		$	477		$	1,110		$	1,073

(a) During the three and nine months ended September 30, 2010, Other recorded a $13 million and a $98 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, substantially all of Duke Energy Carolinas' assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in southwestern Ohio and generates, transmits, distributes, and sells electricity in northern Kentucky. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly-owned subsidiary Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which is included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Unaffiliated Revenues  (a)		Segment EBIT/ Consolidated Income (Loss) Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
Franchised Electric and Gas	$	333	$	93		$	42
Commercial Power		505		44			41
Total reportable segments		838		137			83
Other		—		(16	)		—
Interest expense		—		(27	)		—
Interest income and other		—		3			—
Total consolidated	$	838	$	97		$	83
Three Months Ended September 30, 2010
Franchised Electric and Gas	$	367	$	102		$	56
Commercial Power(c)		556		196			41
Total reportable segments		923		298			97
Other		—		(19	)		—
Interest expense		—		(26	)		—
Interest income and other		—		8			—
Total consolidated	$	923	$	261		$	97
Nine Months Ended September 30, 2011
Franchised Electric and Gas	$	1,112	$	251		$	133
Commercial Power		1,299		118			126
Total reportable segments		2,411		369			259
Other		—		(52	)		—
Interest expense		—		(78	)		—
Interest income and other		—		10			—
Total consolidated	$	2,411	$	249		$	259
Nine Months Ended September 30, 2010
Franchised Electric and Gas(b)	$	1,204	$	69		$	168
Commercial Power(c)		1,345		(273	)		132
Total reportable segments		2,549		(204	)		300
Other		—		(71	)		—
Interest expense		—		(84	)		—
Interest income and other		—		17			—
Total consolidated	$	2,549	$	(342	)	$	300

(a) There was an insignificant amount of intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

(b) In the second quarter of 2010, Franchised Electric and Gas recorded a goodwill impairment charge of $216 million related to the Ohio Transmission and Distribution (Ohio T&D) reporting unit. This impairment charge was not applicable to Duke Energy. See Note 7 for additional information.

(c) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

Segment Assets

	September 30, 2011			December 31, 2010
	(in millions)
Franchised Electric and Gas	$	6,210		$	6,258
Commercial Power		4,573			4,821
Total reportable segments		10,783			11,079
Other		162			192
Eliminations and reclassifications		(286	)		(247	)
Total consolidated assets	$	10,659		$	11,024

Duke Energy Indiana

Duke Energy Indiana has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Indiana, which consists of the regulated electric utility business in north central, central and southern Indiana.

The remainder of Duke Energy Indiana's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/Consolidated (Loss)/Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric(a)	$	(6	)	$	178		$	295		$	484
Total reportable segment		(6	)		178			295			484
Other		(13	)		(15	)		(39	)		(65	)
Interest expense		(34	)		(32	)		(104	)		(99	)
Interest income and other		3			5			11			11
Total consolidated	$	(50	)	$	136		$	163		$	331

(a) As discussed in Note 4, Duke Energy Indiana recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, all of Duke Energy Indiana's assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio [Member]

Business Segments

2. Business Segments

Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT.

Duke Energy

Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of Duke Energy Ohio including Duke Energy Kentucky, and Duke Energy Indiana.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. In addition, DEGS engages in the development, construction and operation of renewable energy projects and is also developing transmission projects.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC (Duke Energy International) and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not an operating segment, Other primarily includes certain unallocated corporate costs, which include certain costs not allocable to Duke Energy' reportable business segments, primarily governance, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes, Bison Insurance Company Limited (Bison), Duke Energy's wholly-owned, captive insurance subsidiary, Duke Energy's 50% interest in DukeNet Communications, LLC (DukeNet) and related telecommunications businesses, and Duke Energy Trading and Marketing, LLC (DETM), which is 40% owned by Exxon Mobil Corporation and 60% owned by Duke Energy. Prior to the sale of a 50% ownership in DukeNet to investment funds managed by Alinda Capital Partners, LLC (collectively Alinda) in December 2010, Other reflected the results of Duke Energy's 100% ownership of DukeNet.

Business Segment Data

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
USFE&G(a)	$	2,917		$	9		$	2,926		$	721		$	352
Commercial Power		684			3			687			67			56
International Energy		360			—			360			168			23
Total reportable segments		3,961			12			3,973			956			431
Other		3			11			14			(74	)		24
Eliminations		—			(23	)		(23	)		—			—
Interest expense		—			—			—			(213	)		—
Interest income and other(d)		—			—			—			7			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			1			—
Total consolidated	$	3,964		$	—		$	3,964		$	677		$	455
Three Months Ended September 30, 2010
USFE&G(a)	$	2,934		$	10		$	2,944		$	946		$	350
Commercial Power		736			1			737			188			54
International Energy		273			—			273			110			21
Total reportable segments		3,943			11			3,954			1,244			425
Other(c)		3			14			17			(100	)		22
Eliminations		—			(25	)		(25	)		—			—
Interest expense		—			—			—			(202	)		—
Interest income and other(d)		—			—			—			25			—
Total consolidated	$	3,946		$	—		$	3,946		$	967		$	447
Nine Months Ended September 30, 2011
USFE&G(a)	$	8,131		$	27		$	8,158		$	2,052		$	1,032
Commercial Power		1,918			8			1,926			217			173
International Energy		1,114			—			1,114			527			66
Total reportable segments		11,163			35			11,198			2,796			1,271
Other		(2	)		36			34			(176	)		75
Eliminations		—			(71	)		(71	)		—			—
Interest expense		—			—			—			(635	)		—
Interest income and other(d)		—			—			—			53			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—
Total consolidated	$	11,161		$	—		$	11,161		$	2,056		$	1,346

	Unaffiliated Revenues		Intersegment Revenues			Total Revenues			Segment EBIT / Consolidated Income From Continuing Operations  Before Income Taxes			Depreciation and Amortization
	(in millions)
Nine Months Ended September 30, 2010
USFE&G(a)	$	8,017	$	25		$	8,042		$	2,361		$	1,033
Commercial Power(b)		1,850		6			1,856			(287	)		167
International Energy		919		—			919			376			63
Total reportable segments		10,786		31			10,817			2,450			1,263
Other(c)		41		41			82			(368	)		66
Eliminations		—		(72	)		(72	)		—			—
Interest expense		—		—			—			(624	)		—
Interest income and other(d)		—		—			—			62			—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—		—			—			16			—
Total consolidated	$	10,827	$	—		$	10,827		$	1,536		$	1,329

(a) As discussed in Note 4, Duke Energy recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

(b) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

(c) During the three and nine months ended September 30, 2010, Other recorded a $20 million and $164 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

(d) Other within Interest Income and Other includes foreign currency transaction gains and losses and additional noncontrolling interest amounts not allocated to the reportable segments and Other results.

Segment assets in the following table exclude all intercompany assets.

Segment Assets

	September 30, 2011		December 31, 2010
	(in millions)
USFE&G	$	46,827	$	45,210
Commercial Power		6,739		6,704
International Energy		4,379		4,310
Total reportable segments		57,945		56,224
Other		2,730		2,845
Reclassifications(a)		101		21
Total consolidated assets	$	60,776	$	59,090

(a) Primarily represents reclassification of federal tax balances in consolidation.

Duke Energy Carolinas

Duke Energy Carolinas has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Carolinas, which consists of the regulated electric utility business in North Carolina and South Carolina.

The remainder of Duke Energy Carolinas' operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain corporate governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/ Consolidated Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric	$	627		$	654		$	1,486		$	1,567
Total reportable segment		627			654			1,486			1,567
Other(a)		(40	)		(85	)		(121	)		(244	)
Interest expense		(93	)		(95	)		(264	)		(271	)
Interest income		1			3			9			21
Total consolidated	$	495		$	477		$	1,110		$	1,073

(a) During the three and nine months ended September 30, 2010, Other recorded a $13 million and a $98 million expense, respectively, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (See Note 15).

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Carolinas' depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, substantially all of Duke Energy Carolinas' assets are owned by its Franchised Electric operating segment.

Duke Energy Ohio

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in southwestern Ohio and generates, transmits, distributes, and sells electricity in northern Kentucky. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly-owned subsidiary Duke Energy Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which is included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Unaffiliated Revenues  (a)		Segment EBIT/ Consolidated Income (Loss) Before Income Taxes			Depreciation and Amortization
	(in millions)
Three Months Ended September 30, 2011
Franchised Electric and Gas	$	333	$	93		$	42
Commercial Power		505		44			41
Total reportable segments		838		137			83
Other		—		(16	)		—
Interest expense		—		(27	)		—
Interest income and other		—		3			—
Total consolidated	$	838	$	97		$	83
Three Months Ended September 30, 2010
Franchised Electric and Gas	$	367	$	102		$	56
Commercial Power(c)		556		196			41
Total reportable segments		923		298			97
Other		—		(19	)		—
Interest expense		—		(26	)		—
Interest income and other		—		8			—
Total consolidated	$	923	$	261		$	97
Nine Months Ended September 30, 2011
Franchised Electric and Gas	$	1,112	$	251		$	133
Commercial Power		1,299		118			126
Total reportable segments		2,411		369			259
Other		—		(52	)		—
Interest expense		—		(78	)		—
Interest income and other		—		10			—
Total consolidated	$	2,411	$	249		$	259
Nine Months Ended September 30, 2010
Franchised Electric and Gas(b)	$	1,204	$	69		$	168
Commercial Power(c)		1,345		(273	)		132
Total reportable segments		2,549		(204	)		300
Other		—		(71	)		—
Interest expense		—		(84	)		—
Interest income and other		—		17			—
Total consolidated	$	2,549	$	(342	)	$	300

(a) There was an insignificant amount of intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

(b) In the second quarter of 2010, Franchised Electric and Gas recorded a goodwill impairment charge of $216 million related to the Ohio Transmission and Distribution (Ohio T&D) reporting unit. This impairment charge was not applicable to Duke Energy. See Note 7 for additional information.

(c) As discussed in Note 7, in the second quarter of 2010, Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $160 million charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets.

Segment Assets

	September 30, 2011			December 31, 2010
	(in millions)
Franchised Electric and Gas	$	6,210		$	6,258
Commercial Power		4,573			4,821
Total reportable segments		10,783			11,079
Other		162			192
Eliminations and reclassifications		(286	)		(247	)
Total consolidated assets	$	10,659		$	11,024

Duke Energy Indiana

Duke Energy Indiana has one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity and conducts operations through Duke Energy Indiana, which consists of the regulated electric utility business in north central, central and southern Indiana.

The remainder of Duke Energy Indiana's operations is presented as Other. While it is not considered an operating segment, Other primarily includes certain governance costs allocated by its parent, Duke Energy (see Note 17).

Business Segment Data

	Segment EBIT/Consolidated (Loss)/Income Before Income Taxes
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in millions)
Franchised Electric(a)	$	(6	)	$	178		$	295		$	484
Total reportable segment		(6	)		178			295			484
Other		(13	)		(15	)		(39	)		(65	)
Interest expense		(34	)		(32	)		(104	)		(99	)
Interest income and other		3			5			11			11
Total consolidated	$	(50	)	$	136		$	163		$	331

(a) As discussed in Note 4, Duke Energy Indiana recorded a pre-tax charge of $222 million in the third quarter of 2011 and a $44 million pre-tax charge in the third quarter of 2010 related to the Edwardsport IGCC project.

Unaffiliated Revenues

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's revenues are from its Franchised Electric operating segment. There were no intersegment revenues for the three and nine months ended September 30, 2011 and 2010.

Depreciation and Amortization

For the three and nine months ended September 30, 2011 and 2010, substantially all of Duke Energy Indiana's depreciation and amortization are from its Franchised Electric operating segment.

Segment Assets

At September 30, 2011 and December 31, 2010, all of Duke Energy Indiana's assets are owned by its Franchised Electric operating segment.