Business Segments

12 Months Ended

Dec. 31, 2011

Business Segments

3. 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.

Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Beginning in 2012, the chief operating decision maker began evaluating segment financial performance and allocation of resources on a net income basis. In addition, previously unallocated corporate costs will be reflected in each segment. The information presented in the tables below has not been restated to reflect this change as management used EBIT to evaluate the results through December 31, 2011.

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, distributes, and sells 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 Supplier (CRES) 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 and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company (NMC), located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether (MTBE). Through December 31, 2009, International Energy had a 25% ownership interest in Attiki Gas Supply S.A. (Attiki), which is a natural gas distributor located in Athens, Greece. See Note 13 for additional information related to the investment in Attiki.

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's 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 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. See Note 13 for additional information related to DukeNet.

Business Segment Data^(a)

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment  EBIT/ Consolidated Income from  Continuing Operations before Income Taxes			Depreciation  and Amortization		Capital and Investment Expenditures and Acquisitions		Segment Assets(b)
	(in millions)
Year Ended December 31, 2011
U.S. Franchised Electric and Gas(d)	$	10,586		$	33		$	10,619		$	2,604		$	1,383	$	3,717	$	47,977
Commercial Power(e)		2,480			11			2,491			225			230		492		6,939
International Energy		1,467			—			1,467			679			90		114		4,539
Total reportable segments		14,533			44			14,577			3,508			1,703		4,323		59,455
Other		(4	)		48			44			(261	)		103		141		2,961
Eliminations and reclassifications		—			(92	)		(92	)		—			—		—		110
Interest expense		—			—			—			(859	)		—		—		—
Interest income and other(h)		—			—			—			56			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			21			—		—		—
Total consolidated	$	14,529		$	—		$	14,529		$	2,465		$	1,806	$	4,464	$	62,526
Year Ended December 31, 2010
U.S. Franchised Electric and Gas(c)(d)	$	10,563		$	34		$	10,597		$	2,966		$	1,386	$	3,891	$	45,210
Commercial Power(e)		2,440			8			2,448			(229	)		225		525		6,704
International Energy		1,204			—			1,204			486			86		181		4,310
Total reportable segments		14,207			42			14,249			3,223			1,697		4,597		56,224
Other(f)(g)		65			53			118			(255	)		89		258		2,845
Eliminations and reclassifications		—			(95	)		(95	)		—			—		—		21
Interest expense		—			—			—			(840	)		—		—		—
Interest income and other(h)		—			—			—			72			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			10			—		—		—
Total consolidated	$	14,272		$	—		$	14,272		$	2,210		$	1,786	$	4,855	$	59,090
Year Ended December 31, 2009
U.S. Franchised Electric and Gas(c)	$	9,392		$	41		$	9,433		$	2,321		$	1,290	$	3,560	$	42,763
Commercial Power(e)		2,109			5			2,114			27			206		688		7,345
International Energy		1,158			—			1,158			365			81		128		4,067
Total reportable segments		12,659			46			12,705			2,713			1,577		4,376		54,175
Other		72			56			128			(251	)		79		181		2,736
Eliminations and reclassifications		—			(102	)		(102	)		—			—		—		129
Interest expense		—			—			—			(751	)		—		—		—
Interest income and other(h)		—			—			—			102			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—		—		—
Total consolidated	$	12,731		$	—		$	12,731		$	1,831		$	1,656	$	4,557	$	57,040

(a) Segment results exclude results of entities classified as discontinued operations.

(b) Includes assets held for sale and assets of entities in discontinued operations. See Note 13 for description and carrying value of investments accounted for under the equity method of accounting within each segment.

(c) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010, and a $74 million annual base rate increase in South Carolina effective February 1, 2010. On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) As discussed in Note 4, Duke Energy recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively related to the Edwardsport integrated gasification combined cycle (IGCC) plant that is currently under construction.

(e) As discussed further in Note 12, during the year ended December 31, 2011, Commercial Power recorded a $79 million impairment to write-down the carrying value of certain emission allowances. During the year ended December 31, 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generating operations and a $160 million pre-tax charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $413 million, which consists of a $371 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million pre-tax charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) During 2010, a $172 million expense was recorded related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(g) During 2010, Duke Energy recognized a $139 million pre-tax gain from the sale of a 50% ownership interest in DukeNet (see Note 2), and a $109 million pre-tax gain from the sale of an equity method investment in, Q-Comm Corporation (Q-Comm) (see Note 13).

(h) 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.

Geographic Data

	U.S.		Latin America(a)		Consolidated
	(in millions)
2011
Consolidated revenues	$	13,062	$	1,467	$	14,529
Consolidated long-lived assets		45,920		2,612		48,532
2010
Consolidated revenues	$	13,068	$	1,204	$	14,272
Consolidated long-lived assets		42,754		2,733		45,487
2009
Consolidated revenues	$	11,573	$	1,158	$	12,731
Consolidated long-lived assets		41,043		2,561		43,604

(a) Change in amounts of long-lived assets in Latin America is primarily due to foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

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 central and western North Carolina and western 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Carolinas' assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Carolinas' revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	1,836		$	1,930		$	1,545
Total reportable segment		1,836			1,930			1,545
Other(b)		(180	)		(296	)		(143	)
Interest expense		(360	)		(362	)		(330	)
Interest income		10			23			7
Total consolidated	$	1,306		$	1,295		$	1,079

(a) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010 and a $74 million annual base rate increase in South Carolina effective February 1, 2010.

(b) During 2010, a $99 million expense was recorded related to the 2010 voluntary severance plan (see Note 19).

Duke Energy Ohio

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

Franchised Electric and Gas transmits, distributes, and sells 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 13). All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Unaffiliated Revenues(a)		Segment  EBIT/ Consolidated (Loss) Income Before Income Taxes			Depreciation  and Amortization		Capital Expenditures		Segment Assets
Year Ended December 31, 2011
Franchised Electric and Gas	$	1,474	$	327		$	168	$	375	$	6,293
Commercial Power(f)		1,707		133			167		124		4,740
Total reportable segments		3,181		460			335		499		11,033
Other		—		(80	)		—		—		259
Eliminations and reclassifications		—		—			—		—		(353	)
Interest expense		—		(104	)		—		—		—
Interest income and other		—		14			—		—		—
Total consolidated	$	3,181	$	290		$	335	$	499	$	10,939
Year Ended December 31, 2010
Franchised Electric and Gas(c)(d)	$	1,623	$	137		$	226	$	353	$	6,258
Commercial Power(e)(f)		1,706		(262	)		174		93		4,821
Total reportable segments		3,329		(125	)		400		446		11,079
Other(b)		—		(93	)		—		—		192
Eliminations and reclassifications		—		—			—		—		(247	)
Interest expense		—		(109	)		—		—		—
Interest income and other		—		18			—		—		—
Total consolidated	$	3,329	$	(309	)	$	400	$	446	$	11,024
Year Ended December 31, 2009
Franchised Electric and Gas(c)	$	1,578	$	283		$	205	$	294	$	6,091
Commercial Power(e)		1,810		(352	)		179		139		5,489
Total reportable segments		3,338		(69	)		384		433		11,580
Other		—		(64	)		—		—		4
Eliminations and reclassifications		—		—			—		—		(73	)
Interest expense		—		(117	)		—		—		—
Interest income and other		—		10			—		—		—
Total consolidated	$	3,338	$	(240	)	$	384	$	433	$	11,511

(a) There was an insignificant amount of intersegment revenues for the years ended December 31, 2011, 2010 and 2009.

(b) During 2010, a $24 million expense was recorded related to the 2010 voluntary severance and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(c) On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) In the second quarter of 2010, Franchised Electric and Gas recorded an impairment charge of $216 million related to the Ohio Transmission and Distribution reporting unit. This impairment charge was not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 12 for additional information.

(e) As discussed in Note 12, during the year ended December 31, 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. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $769 million, which consisted of a $727 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) Duke Energy Ohio earned approximately 24% and 13% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011 and 2010, respectively. These revenues relate to the sale of capacity and electricity from Commercial Power's gas-fired non-regulated generation assets. In 2009 no single counterparty contributed 10% or more of consolidated operating revenue.

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 central, north 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Indiana's assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Indiana's revenues are generated domestically and its long-lived assets are in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	424		$	650		$	494
Total reportable segment		424			650			494
Other		(59	)		(87	)		(46	)
Interest expense		(137	)		(135	)		(144	)
Interest income		14			13			13
Total consolidated	$	242		$	441		$	317

(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively, related to the Edwardsport IGCC plant that is currently under construction.

Duke Energy Corp [Member]

Business Segments

3. 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.

Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Beginning in 2012, the chief operating decision maker began evaluating segment financial performance and allocation of resources on a net income basis. In addition, previously unallocated corporate costs will be reflected in each segment. The information presented in the tables below has not been restated to reflect this change as management used EBIT to evaluate the results through December 31, 2011.

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, distributes, and sells 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 Supplier (CRES) 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 and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company (NMC), located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether (MTBE). Through December 31, 2009, International Energy had a 25% ownership interest in Attiki Gas Supply S.A. (Attiki), which is a natural gas distributor located in Athens, Greece. See Note 13 for additional information related to the investment in Attiki.

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's 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 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. See Note 13 for additional information related to DukeNet.

Business Segment Data^(a)

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment  EBIT/ Consolidated Income from  Continuing Operations before Income Taxes			Depreciation  and Amortization		Capital and Investment Expenditures and Acquisitions		Segment Assets(b)
	(in millions)
Year Ended December 31, 2011
U.S. Franchised Electric and Gas(d)	$	10,586		$	33		$	10,619		$	2,604		$	1,383	$	3,717	$	47,977
Commercial Power(e)		2,480			11			2,491			225			230		492		6,939
International Energy		1,467			—			1,467			679			90		114		4,539
Total reportable segments		14,533			44			14,577			3,508			1,703		4,323		59,455
Other		(4	)		48			44			(261	)		103		141		2,961
Eliminations and reclassifications		—			(92	)		(92	)		—			—		—		110
Interest expense		—			—			—			(859	)		—		—		—
Interest income and other(h)		—			—			—			56			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			21			—		—		—
Total consolidated	$	14,529		$	—		$	14,529		$	2,465		$	1,806	$	4,464	$	62,526
Year Ended December 31, 2010
U.S. Franchised Electric and Gas(c)(d)	$	10,563		$	34		$	10,597		$	2,966		$	1,386	$	3,891	$	45,210
Commercial Power(e)		2,440			8			2,448			(229	)		225		525		6,704
International Energy		1,204			—			1,204			486			86		181		4,310
Total reportable segments		14,207			42			14,249			3,223			1,697		4,597		56,224
Other(f)(g)		65			53			118			(255	)		89		258		2,845
Eliminations and reclassifications		—			(95	)		(95	)		—			—		—		21
Interest expense		—			—			—			(840	)		—		—		—
Interest income and other(h)		—			—			—			72			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			10			—		—		—
Total consolidated	$	14,272		$	—		$	14,272		$	2,210		$	1,786	$	4,855	$	59,090
Year Ended December 31, 2009
U.S. Franchised Electric and Gas(c)	$	9,392		$	41		$	9,433		$	2,321		$	1,290	$	3,560	$	42,763
Commercial Power(e)		2,109			5			2,114			27			206		688		7,345
International Energy		1,158			—			1,158			365			81		128		4,067
Total reportable segments		12,659			46			12,705			2,713			1,577		4,376		54,175
Other		72			56			128			(251	)		79		181		2,736
Eliminations and reclassifications		—			(102	)		(102	)		—			—		—		129
Interest expense		—			—			—			(751	)		—		—		—
Interest income and other(h)		—			—			—			102			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—		—		—
Total consolidated	$	12,731		$	—		$	12,731		$	1,831		$	1,656	$	4,557	$	57,040

(a) Segment results exclude results of entities classified as discontinued operations.

(b) Includes assets held for sale and assets of entities in discontinued operations. See Note 13 for description and carrying value of investments accounted for under the equity method of accounting within each segment.

(c) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010, and a $74 million annual base rate increase in South Carolina effective February 1, 2010. On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) As discussed in Note 4, Duke Energy recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively related to the Edwardsport integrated gasification combined cycle (IGCC) plant that is currently under construction.

(e) As discussed further in Note 12, during the year ended December 31, 2011, Commercial Power recorded a $79 million impairment to write-down the carrying value of certain emission allowances. During the year ended December 31, 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generating operations and a $160 million pre-tax charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $413 million, which consists of a $371 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million pre-tax charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) During 2010, a $172 million expense was recorded related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(g) During 2010, Duke Energy recognized a $139 million pre-tax gain from the sale of a 50% ownership interest in DukeNet (see Note 2), and a $109 million pre-tax gain from the sale of an equity method investment in, Q-Comm Corporation (Q-Comm) (see Note 13).

(h) 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.

Geographic Data

	U.S.		Latin America(a)		Consolidated
	(in millions)
2011
Consolidated revenues	$	13,062	$	1,467	$	14,529
Consolidated long-lived assets		45,920		2,612		48,532
2010
Consolidated revenues	$	13,068	$	1,204	$	14,272
Consolidated long-lived assets		42,754		2,733		45,487
2009
Consolidated revenues	$	11,573	$	1,158	$	12,731
Consolidated long-lived assets		41,043		2,561		43,604

(a) Change in amounts of long-lived assets in Latin America is primarily due to foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

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 central and western North Carolina and western 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Carolinas' assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Carolinas' revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	1,836		$	1,930		$	1,545
Total reportable segment		1,836			1,930			1,545
Other(b)		(180	)		(296	)		(143	)
Interest expense		(360	)		(362	)		(330	)
Interest income		10			23			7
Total consolidated	$	1,306		$	1,295		$	1,079

(a) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010 and a $74 million annual base rate increase in South Carolina effective February 1, 2010.

(b) During 2010, a $99 million expense was recorded related to the 2010 voluntary severance plan (see Note 19).

Duke Energy Ohio

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

Franchised Electric and Gas transmits, distributes, and sells 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 13). All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Unaffiliated Revenues(a)		Segment  EBIT/ Consolidated (Loss) Income Before Income Taxes			Depreciation  and Amortization		Capital Expenditures		Segment Assets
Year Ended December 31, 2011
Franchised Electric and Gas	$	1,474	$	327		$	168	$	375	$	6,293
Commercial Power(f)		1,707		133			167		124		4,740
Total reportable segments		3,181		460			335		499		11,033
Other		—		(80	)		—		—		259
Eliminations and reclassifications		—		—			—		—		(353	)
Interest expense		—		(104	)		—		—		—
Interest income and other		—		14			—		—		—
Total consolidated	$	3,181	$	290		$	335	$	499	$	10,939
Year Ended December 31, 2010
Franchised Electric and Gas(c)(d)	$	1,623	$	137		$	226	$	353	$	6,258
Commercial Power(e)(f)		1,706		(262	)		174		93		4,821
Total reportable segments		3,329		(125	)		400		446		11,079
Other(b)		—		(93	)		—		—		192
Eliminations and reclassifications		—		—			—		—		(247	)
Interest expense		—		(109	)		—		—		—
Interest income and other		—		18			—		—		—
Total consolidated	$	3,329	$	(309	)	$	400	$	446	$	11,024
Year Ended December 31, 2009
Franchised Electric and Gas(c)	$	1,578	$	283		$	205	$	294	$	6,091
Commercial Power(e)		1,810		(352	)		179		139		5,489
Total reportable segments		3,338		(69	)		384		433		11,580
Other		—		(64	)		—		—		4
Eliminations and reclassifications		—		—			—		—		(73	)
Interest expense		—		(117	)		—		—		—
Interest income and other		—		10			—		—		—
Total consolidated	$	3,338	$	(240	)	$	384	$	433	$	11,511

(a) There was an insignificant amount of intersegment revenues for the years ended December 31, 2011, 2010 and 2009.

(b) During 2010, a $24 million expense was recorded related to the 2010 voluntary severance and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(c) On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) In the second quarter of 2010, Franchised Electric and Gas recorded an impairment charge of $216 million related to the Ohio Transmission and Distribution reporting unit. This impairment charge was not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 12 for additional information.

(e) As discussed in Note 12, during the year ended December 31, 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. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $769 million, which consisted of a $727 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) Duke Energy Ohio earned approximately 24% and 13% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011 and 2010, respectively. These revenues relate to the sale of capacity and electricity from Commercial Power's gas-fired non-regulated generation assets. In 2009 no single counterparty contributed 10% or more of consolidated operating revenue.

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 central, north 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Indiana's assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Indiana's revenues are generated domestically and its long-lived assets are in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	424		$	650		$	494
Total reportable segment		424			650			494
Other		(59	)		(87	)		(46	)
Interest expense		(137	)		(135	)		(144	)
Interest income		14			13			13
Total consolidated	$	242		$	441		$	317

(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively, related to the Edwardsport IGCC plant that is currently under construction.

Duke Energy Carolinas [Member]

Business Segments

3. 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.

Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Beginning in 2012, the chief operating decision maker began evaluating segment financial performance and allocation of resources on a net income basis. In addition, previously unallocated corporate costs will be reflected in each segment. The information presented in the tables below has not been restated to reflect this change as management used EBIT to evaluate the results through December 31, 2011.

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, distributes, and sells 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 Supplier (CRES) 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 and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company (NMC), located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether (MTBE). Through December 31, 2009, International Energy had a 25% ownership interest in Attiki Gas Supply S.A. (Attiki), which is a natural gas distributor located in Athens, Greece. See Note 13 for additional information related to the investment in Attiki.

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's 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 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. See Note 13 for additional information related to DukeNet.

Business Segment Data^(a)

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment  EBIT/ Consolidated Income from  Continuing Operations before Income Taxes			Depreciation  and Amortization		Capital and Investment Expenditures and Acquisitions		Segment Assets(b)
	(in millions)
Year Ended December 31, 2011
U.S. Franchised Electric and Gas(d)	$	10,586		$	33		$	10,619		$	2,604		$	1,383	$	3,717	$	47,977
Commercial Power(e)		2,480			11			2,491			225			230		492		6,939
International Energy		1,467			—			1,467			679			90		114		4,539
Total reportable segments		14,533			44			14,577			3,508			1,703		4,323		59,455
Other		(4	)		48			44			(261	)		103		141		2,961
Eliminations and reclassifications		—			(92	)		(92	)		—			—		—		110
Interest expense		—			—			—			(859	)		—		—		—
Interest income and other(h)		—			—			—			56			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			21			—		—		—
Total consolidated	$	14,529		$	—		$	14,529		$	2,465		$	1,806	$	4,464	$	62,526
Year Ended December 31, 2010
U.S. Franchised Electric and Gas(c)(d)	$	10,563		$	34		$	10,597		$	2,966		$	1,386	$	3,891	$	45,210
Commercial Power(e)		2,440			8			2,448			(229	)		225		525		6,704
International Energy		1,204			—			1,204			486			86		181		4,310
Total reportable segments		14,207			42			14,249			3,223			1,697		4,597		56,224
Other(f)(g)		65			53			118			(255	)		89		258		2,845
Eliminations and reclassifications		—			(95	)		(95	)		—			—		—		21
Interest expense		—			—			—			(840	)		—		—		—
Interest income and other(h)		—			—			—			72			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			10			—		—		—
Total consolidated	$	14,272		$	—		$	14,272		$	2,210		$	1,786	$	4,855	$	59,090
Year Ended December 31, 2009
U.S. Franchised Electric and Gas(c)	$	9,392		$	41		$	9,433		$	2,321		$	1,290	$	3,560	$	42,763
Commercial Power(e)		2,109			5			2,114			27			206		688		7,345
International Energy		1,158			—			1,158			365			81		128		4,067
Total reportable segments		12,659			46			12,705			2,713			1,577		4,376		54,175
Other		72			56			128			(251	)		79		181		2,736
Eliminations and reclassifications		—			(102	)		(102	)		—			—		—		129
Interest expense		—			—			—			(751	)		—		—		—
Interest income and other(h)		—			—			—			102			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—		—		—
Total consolidated	$	12,731		$	—		$	12,731		$	1,831		$	1,656	$	4,557	$	57,040

(a) Segment results exclude results of entities classified as discontinued operations.

(b) Includes assets held for sale and assets of entities in discontinued operations. See Note 13 for description and carrying value of investments accounted for under the equity method of accounting within each segment.

(c) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010, and a $74 million annual base rate increase in South Carolina effective February 1, 2010. On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) As discussed in Note 4, Duke Energy recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively related to the Edwardsport integrated gasification combined cycle (IGCC) plant that is currently under construction.

(e) As discussed further in Note 12, during the year ended December 31, 2011, Commercial Power recorded a $79 million impairment to write-down the carrying value of certain emission allowances. During the year ended December 31, 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generating operations and a $160 million pre-tax charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $413 million, which consists of a $371 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million pre-tax charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) During 2010, a $172 million expense was recorded related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(g) During 2010, Duke Energy recognized a $139 million pre-tax gain from the sale of a 50% ownership interest in DukeNet (see Note 2), and a $109 million pre-tax gain from the sale of an equity method investment in, Q-Comm Corporation (Q-Comm) (see Note 13).

(h) 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.

Geographic Data

	U.S.		Latin America(a)		Consolidated
	(in millions)
2011
Consolidated revenues	$	13,062	$	1,467	$	14,529
Consolidated long-lived assets		45,920		2,612		48,532
2010
Consolidated revenues	$	13,068	$	1,204	$	14,272
Consolidated long-lived assets		42,754		2,733		45,487
2009
Consolidated revenues	$	11,573	$	1,158	$	12,731
Consolidated long-lived assets		41,043		2,561		43,604

(a) Change in amounts of long-lived assets in Latin America is primarily due to foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

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 central and western North Carolina and western 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Carolinas' assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Carolinas' revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	1,836		$	1,930		$	1,545
Total reportable segment		1,836			1,930			1,545
Other(b)		(180	)		(296	)		(143	)
Interest expense		(360	)		(362	)		(330	)
Interest income		10			23			7
Total consolidated	$	1,306		$	1,295		$	1,079

(a) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010 and a $74 million annual base rate increase in South Carolina effective February 1, 2010.

(b) During 2010, a $99 million expense was recorded related to the 2010 voluntary severance plan (see Note 19).

Duke Energy Ohio

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

Franchised Electric and Gas transmits, distributes, and sells 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 13). All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Unaffiliated Revenues(a)		Segment  EBIT/ Consolidated (Loss) Income Before Income Taxes			Depreciation  and Amortization		Capital Expenditures		Segment Assets
Year Ended December 31, 2011
Franchised Electric and Gas	$	1,474	$	327		$	168	$	375	$	6,293
Commercial Power(f)		1,707		133			167		124		4,740
Total reportable segments		3,181		460			335		499		11,033
Other		—		(80	)		—		—		259
Eliminations and reclassifications		—		—			—		—		(353	)
Interest expense		—		(104	)		—		—		—
Interest income and other		—		14			—		—		—
Total consolidated	$	3,181	$	290		$	335	$	499	$	10,939
Year Ended December 31, 2010
Franchised Electric and Gas(c)(d)	$	1,623	$	137		$	226	$	353	$	6,258
Commercial Power(e)(f)		1,706		(262	)		174		93		4,821
Total reportable segments		3,329		(125	)		400		446		11,079
Other(b)		—		(93	)		—		—		192
Eliminations and reclassifications		—		—			—		—		(247	)
Interest expense		—		(109	)		—		—		—
Interest income and other		—		18			—		—		—
Total consolidated	$	3,329	$	(309	)	$	400	$	446	$	11,024
Year Ended December 31, 2009
Franchised Electric and Gas(c)	$	1,578	$	283		$	205	$	294	$	6,091
Commercial Power(e)		1,810		(352	)		179		139		5,489
Total reportable segments		3,338		(69	)		384		433		11,580
Other		—		(64	)		—		—		4
Eliminations and reclassifications		—		—			—		—		(73	)
Interest expense		—		(117	)		—		—		—
Interest income and other		—		10			—		—		—
Total consolidated	$	3,338	$	(240	)	$	384	$	433	$	11,511

(a) There was an insignificant amount of intersegment revenues for the years ended December 31, 2011, 2010 and 2009.

(b) During 2010, a $24 million expense was recorded related to the 2010 voluntary severance and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(c) On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) In the second quarter of 2010, Franchised Electric and Gas recorded an impairment charge of $216 million related to the Ohio Transmission and Distribution reporting unit. This impairment charge was not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 12 for additional information.

(e) As discussed in Note 12, during the year ended December 31, 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. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $769 million, which consisted of a $727 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) Duke Energy Ohio earned approximately 24% and 13% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011 and 2010, respectively. These revenues relate to the sale of capacity and electricity from Commercial Power's gas-fired non-regulated generation assets. In 2009 no single counterparty contributed 10% or more of consolidated operating revenue.

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 central, north 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Indiana's assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Indiana's revenues are generated domestically and its long-lived assets are in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	424		$	650		$	494
Total reportable segment		424			650			494
Other		(59	)		(87	)		(46	)
Interest expense		(137	)		(135	)		(144	)
Interest income		14			13			13
Total consolidated	$	242		$	441		$	317

(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively, related to the Edwardsport IGCC plant that is currently under construction.

Duke Energy Indiana [Member]

Business Segments

3. 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.

Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Beginning in 2012, the chief operating decision maker began evaluating segment financial performance and allocation of resources on a net income basis. In addition, previously unallocated corporate costs will be reflected in each segment. The information presented in the tables below has not been restated to reflect this change as management used EBIT to evaluate the results through December 31, 2011.

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, distributes, and sells 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 Supplier (CRES) 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 and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company (NMC), located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether (MTBE). Through December 31, 2009, International Energy had a 25% ownership interest in Attiki Gas Supply S.A. (Attiki), which is a natural gas distributor located in Athens, Greece. See Note 13 for additional information related to the investment in Attiki.

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's 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 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. See Note 13 for additional information related to DukeNet.

Business Segment Data^(a)

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment  EBIT/ Consolidated Income from  Continuing Operations before Income Taxes			Depreciation  and Amortization		Capital and Investment Expenditures and Acquisitions		Segment Assets(b)
	(in millions)
Year Ended December 31, 2011
U.S. Franchised Electric and Gas(d)	$	10,586		$	33		$	10,619		$	2,604		$	1,383	$	3,717	$	47,977
Commercial Power(e)		2,480			11			2,491			225			230		492		6,939
International Energy		1,467			—			1,467			679			90		114		4,539
Total reportable segments		14,533			44			14,577			3,508			1,703		4,323		59,455
Other		(4	)		48			44			(261	)		103		141		2,961
Eliminations and reclassifications		—			(92	)		(92	)		—			—		—		110
Interest expense		—			—			—			(859	)		—		—		—
Interest income and other(h)		—			—			—			56			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			21			—		—		—
Total consolidated	$	14,529		$	—		$	14,529		$	2,465		$	1,806	$	4,464	$	62,526
Year Ended December 31, 2010
U.S. Franchised Electric and Gas(c)(d)	$	10,563		$	34		$	10,597		$	2,966		$	1,386	$	3,891	$	45,210
Commercial Power(e)		2,440			8			2,448			(229	)		225		525		6,704
International Energy		1,204			—			1,204			486			86		181		4,310
Total reportable segments		14,207			42			14,249			3,223			1,697		4,597		56,224
Other(f)(g)		65			53			118			(255	)		89		258		2,845
Eliminations and reclassifications		—			(95	)		(95	)		—			—		—		21
Interest expense		—			—			—			(840	)		—		—		—
Interest income and other(h)		—			—			—			72			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			10			—		—		—
Total consolidated	$	14,272		$	—		$	14,272		$	2,210		$	1,786	$	4,855	$	59,090
Year Ended December 31, 2009
U.S. Franchised Electric and Gas(c)	$	9,392		$	41		$	9,433		$	2,321		$	1,290	$	3,560	$	42,763
Commercial Power(e)		2,109			5			2,114			27			206		688		7,345
International Energy		1,158			—			1,158			365			81		128		4,067
Total reportable segments		12,659			46			12,705			2,713			1,577		4,376		54,175
Other		72			56			128			(251	)		79		181		2,736
Eliminations and reclassifications		—			(102	)		(102	)		—			—		—		129
Interest expense		—			—			—			(751	)		—		—		—
Interest income and other(h)		—			—			—			102			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—		—		—
Total consolidated	$	12,731		$	—		$	12,731		$	1,831		$	1,656	$	4,557	$	57,040

(a) Segment results exclude results of entities classified as discontinued operations.

(b) Includes assets held for sale and assets of entities in discontinued operations. See Note 13 for description and carrying value of investments accounted for under the equity method of accounting within each segment.

(c) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010, and a $74 million annual base rate increase in South Carolina effective February 1, 2010. On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) As discussed in Note 4, Duke Energy recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively related to the Edwardsport integrated gasification combined cycle (IGCC) plant that is currently under construction.

(e) As discussed further in Note 12, during the year ended December 31, 2011, Commercial Power recorded a $79 million impairment to write-down the carrying value of certain emission allowances. During the year ended December 31, 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generating operations and a $160 million pre-tax charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $413 million, which consists of a $371 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million pre-tax charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) During 2010, a $172 million expense was recorded related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(g) During 2010, Duke Energy recognized a $139 million pre-tax gain from the sale of a 50% ownership interest in DukeNet (see Note 2), and a $109 million pre-tax gain from the sale of an equity method investment in, Q-Comm Corporation (Q-Comm) (see Note 13).

(h) 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.

Geographic Data

	U.S.		Latin America(a)		Consolidated
	(in millions)
2011
Consolidated revenues	$	13,062	$	1,467	$	14,529
Consolidated long-lived assets		45,920		2,612		48,532
2010
Consolidated revenues	$	13,068	$	1,204	$	14,272
Consolidated long-lived assets		42,754		2,733		45,487
2009
Consolidated revenues	$	11,573	$	1,158	$	12,731
Consolidated long-lived assets		41,043		2,561		43,604

(a) Change in amounts of long-lived assets in Latin America is primarily due to foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

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 central and western North Carolina and western 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Carolinas' assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Carolinas' revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	1,836		$	1,930		$	1,545
Total reportable segment		1,836			1,930			1,545
Other(b)		(180	)		(296	)		(143	)
Interest expense		(360	)		(362	)		(330	)
Interest income		10			23			7
Total consolidated	$	1,306		$	1,295		$	1,079

(a) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010 and a $74 million annual base rate increase in South Carolina effective February 1, 2010.

(b) During 2010, a $99 million expense was recorded related to the 2010 voluntary severance plan (see Note 19).

Duke Energy Ohio

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

Franchised Electric and Gas transmits, distributes, and sells 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 13). All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Unaffiliated Revenues(a)		Segment  EBIT/ Consolidated (Loss) Income Before Income Taxes			Depreciation  and Amortization		Capital Expenditures		Segment Assets
Year Ended December 31, 2011
Franchised Electric and Gas	$	1,474	$	327		$	168	$	375	$	6,293
Commercial Power(f)		1,707		133			167		124		4,740
Total reportable segments		3,181		460			335		499		11,033
Other		—		(80	)		—		—		259
Eliminations and reclassifications		—		—			—		—		(353	)
Interest expense		—		(104	)		—		—		—
Interest income and other		—		14			—		—		—
Total consolidated	$	3,181	$	290		$	335	$	499	$	10,939
Year Ended December 31, 2010
Franchised Electric and Gas(c)(d)	$	1,623	$	137		$	226	$	353	$	6,258
Commercial Power(e)(f)		1,706		(262	)		174		93		4,821
Total reportable segments		3,329		(125	)		400		446		11,079
Other(b)		—		(93	)		—		—		192
Eliminations and reclassifications		—		—			—		—		(247	)
Interest expense		—		(109	)		—		—		—
Interest income and other		—		18			—		—		—
Total consolidated	$	3,329	$	(309	)	$	400	$	446	$	11,024
Year Ended December 31, 2009
Franchised Electric and Gas(c)	$	1,578	$	283		$	205	$	294	$	6,091
Commercial Power(e)		1,810		(352	)		179		139		5,489
Total reportable segments		3,338		(69	)		384		433		11,580
Other		—		(64	)		—		—		4
Eliminations and reclassifications		—		—			—		—		(73	)
Interest expense		—		(117	)		—		—		—
Interest income and other		—		10			—		—		—
Total consolidated	$	3,338	$	(240	)	$	384	$	433	$	11,511

(a) There was an insignificant amount of intersegment revenues for the years ended December 31, 2011, 2010 and 2009.

(b) During 2010, a $24 million expense was recorded related to the 2010 voluntary severance and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(c) On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) In the second quarter of 2010, Franchised Electric and Gas recorded an impairment charge of $216 million related to the Ohio Transmission and Distribution reporting unit. This impairment charge was not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 12 for additional information.

(e) As discussed in Note 12, during the year ended December 31, 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. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $769 million, which consisted of a $727 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) Duke Energy Ohio earned approximately 24% and 13% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011 and 2010, respectively. These revenues relate to the sale of capacity and electricity from Commercial Power's gas-fired non-regulated generation assets. In 2009 no single counterparty contributed 10% or more of consolidated operating revenue.

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 central, north 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Indiana's assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Indiana's revenues are generated domestically and its long-lived assets are in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	424		$	650		$	494
Total reportable segment		424			650			494
Other		(59	)		(87	)		(46	)
Interest expense		(137	)		(135	)		(144	)
Interest income		14			13			13
Total consolidated	$	242		$	441		$	317

(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively, related to the Edwardsport IGCC plant that is currently under construction.

Duke Energy Ohio [Member]

Business Segments

3. 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.

Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Beginning in 2012, the chief operating decision maker began evaluating segment financial performance and allocation of resources on a net income basis. In addition, previously unallocated corporate costs will be reflected in each segment. The information presented in the tables below has not been restated to reflect this change as management used EBIT to evaluate the results through December 31, 2011.

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, distributes, and sells 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 Supplier (CRES) 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 and its affiliates and its activities principally target power generation in Latin America. Additionally, International Energy owns a 25% interest in National Methanol Company (NMC), located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether (MTBE). Through December 31, 2009, International Energy had a 25% ownership interest in Attiki Gas Supply S.A. (Attiki), which is a natural gas distributor located in Athens, Greece. See Note 13 for additional information related to the investment in Attiki.

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's 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 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. See Note 13 for additional information related to DukeNet.

Business Segment Data^(a)

	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			Segment  EBIT/ Consolidated Income from  Continuing Operations before Income Taxes			Depreciation  and Amortization		Capital and Investment Expenditures and Acquisitions		Segment Assets(b)
	(in millions)
Year Ended December 31, 2011
U.S. Franchised Electric and Gas(d)	$	10,586		$	33		$	10,619		$	2,604		$	1,383	$	3,717	$	47,977
Commercial Power(e)		2,480			11			2,491			225			230		492		6,939
International Energy		1,467			—			1,467			679			90		114		4,539
Total reportable segments		14,533			44			14,577			3,508			1,703		4,323		59,455
Other		(4	)		48			44			(261	)		103		141		2,961
Eliminations and reclassifications		—			(92	)		(92	)		—			—		—		110
Interest expense		—			—			—			(859	)		—		—		—
Interest income and other(h)		—			—			—			56			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			21			—		—		—
Total consolidated	$	14,529		$	—		$	14,529		$	2,465		$	1,806	$	4,464	$	62,526
Year Ended December 31, 2010
U.S. Franchised Electric and Gas(c)(d)	$	10,563		$	34		$	10,597		$	2,966		$	1,386	$	3,891	$	45,210
Commercial Power(e)		2,440			8			2,448			(229	)		225		525		6,704
International Energy		1,204			—			1,204			486			86		181		4,310
Total reportable segments		14,207			42			14,249			3,223			1,697		4,597		56,224
Other(f)(g)		65			53			118			(255	)		89		258		2,845
Eliminations and reclassifications		—			(95	)		(95	)		—			—		—		21
Interest expense		—			—			—			(840	)		—		—		—
Interest income and other(h)		—			—			—			72			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			10			—		—		—
Total consolidated	$	14,272		$	—		$	14,272		$	2,210		$	1,786	$	4,855	$	59,090
Year Ended December 31, 2009
U.S. Franchised Electric and Gas(c)	$	9,392		$	41		$	9,433		$	2,321		$	1,290	$	3,560	$	42,763
Commercial Power(e)		2,109			5			2,114			27			206		688		7,345
International Energy		1,158			—			1,158			365			81		128		4,067
Total reportable segments		12,659			46			12,705			2,713			1,577		4,376		54,175
Other		72			56			128			(251	)		79		181		2,736
Eliminations and reclassifications		—			(102	)		(102	)		—			—		—		129
Interest expense		—			—			—			(751	)		—		—		—
Interest income and other(h)		—			—			—			102			—		—		—
Add back of noncontrolling interest component of reportable segment and Other EBIT		—			—			—			18			—		—		—
Total consolidated	$	12,731		$	—		$	12,731		$	1,831		$	1,656	$	4,557	$	57,040

(a) Segment results exclude results of entities classified as discontinued operations.

(b) Includes assets held for sale and assets of entities in discontinued operations. See Note 13 for description and carrying value of investments accounted for under the equity method of accounting within each segment.

(c) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010, and a $74 million annual base rate increase in South Carolina effective February 1, 2010. On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) As discussed in Note 4, Duke Energy recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively related to the Edwardsport integrated gasification combined cycle (IGCC) plant that is currently under construction.

(e) As discussed further in Note 12, during the year ended December 31, 2011, Commercial Power recorded a $79 million impairment to write-down the carrying value of certain emission allowances. During the year ended December 31, 2010, Commercial Power recorded impairment charges of $660 million, which consisted of a $500 million goodwill impairment charge associated with the non-regulated Midwest generating operations and a $160 million pre-tax charge to write-down the value of certain non-regulated Midwest generating assets and emission allowances primarily associated with these generation assets. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $413 million, which consists of a $371 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million pre-tax charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) During 2010, a $172 million expense was recorded related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(g) During 2010, Duke Energy recognized a $139 million pre-tax gain from the sale of a 50% ownership interest in DukeNet (see Note 2), and a $109 million pre-tax gain from the sale of an equity method investment in, Q-Comm Corporation (Q-Comm) (see Note 13).

(h) 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.

Geographic Data

	U.S.		Latin America(a)		Consolidated
	(in millions)
2011
Consolidated revenues	$	13,062	$	1,467	$	14,529
Consolidated long-lived assets		45,920		2,612		48,532
2010
Consolidated revenues	$	13,068	$	1,204	$	14,272
Consolidated long-lived assets		42,754		2,733		45,487
2009
Consolidated revenues	$	11,573	$	1,158	$	12,731
Consolidated long-lived assets		41,043		2,561		43,604

(a) Change in amounts of long-lived assets in Latin America is primarily due to foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

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 central and western North Carolina and western 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Carolinas' assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Carolinas' revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	1,836		$	1,930		$	1,545
Total reportable segment		1,836			1,930			1,545
Other(b)		(180	)		(296	)		(143	)
Interest expense		(360	)		(362	)		(330	)
Interest income		10			23			7
Total consolidated	$	1,306		$	1,295		$	1,079

(a) On December 7, 2009 and January 10, 2010, the North Carolina and South Carolina rate case settlement agreements were approved by the NCUC and PSCSC, respectively. Among other things, the rate case settlements included an annual base rate increase of $315 million in North Carolina to be phased-in primarily over a two-year period beginning January 1, 2010 and a $74 million annual base rate increase in South Carolina effective February 1, 2010.

(b) During 2010, a $99 million expense was recorded related to the 2010 voluntary severance plan (see Note 19).

Duke Energy Ohio

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

Franchised Electric and Gas transmits, distributes, and sells 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 13). All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data

	Unaffiliated Revenues(a)		Segment  EBIT/ Consolidated (Loss) Income Before Income Taxes			Depreciation  and Amortization		Capital Expenditures		Segment Assets
Year Ended December 31, 2011
Franchised Electric and Gas	$	1,474	$	327		$	168	$	375	$	6,293
Commercial Power(f)		1,707		133			167		124		4,740
Total reportable segments		3,181		460			335		499		11,033
Other		—		(80	)		—		—		259
Eliminations and reclassifications		—		—			—		—		(353	)
Interest expense		—		(104	)		—		—		—
Interest income and other		—		14			—		—		—
Total consolidated	$	3,181	$	290		$	335	$	499	$	10,939
Year Ended December 31, 2010
Franchised Electric and Gas(c)(d)	$	1,623	$	137		$	226	$	353	$	6,258
Commercial Power(e)(f)		1,706		(262	)		174		93		4,821
Total reportable segments		3,329		(125	)		400		446		11,079
Other(b)		—		(93	)		—		—		192
Eliminations and reclassifications		—		—			—		—		(247	)
Interest expense		—		(109	)		—		—		—
Interest income and other		—		18			—		—		—
Total consolidated	$	3,329	$	(309	)	$	400	$	446	$	11,024
Year Ended December 31, 2009
Franchised Electric and Gas(c)	$	1,578	$	283		$	205	$	294	$	6,091
Commercial Power(e)		1,810		(352	)		179		139		5,489
Total reportable segments		3,338		(69	)		384		433		11,580
Other		—		(64	)		—		—		4
Eliminations and reclassifications		—		—			—		—		(73	)
Interest expense		—		(117	)		—		—		—
Interest income and other		—		10			—		—		—
Total consolidated	$	3,338	$	(240	)	$	384	$	433	$	11,511

(a) There was an insignificant amount of intersegment revenues for the years ended December 31, 2011, 2010 and 2009.

(b) During 2010, a $24 million expense was recorded related to the 2010 voluntary severance and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina (see Note 19).

(c) On July 8, 2009, the PUCO approved a $55 million annual increase in rates for electric delivery service. These new rates were effective July 13, 2009. Additionally, on December 29, 2009, the KPSC approved a $13 million increase in annual base natural gas rates. New rates went into effect January 4, 2010.

(d) In the second quarter of 2010, Franchised Electric and Gas recorded an impairment charge of $216 million related to the Ohio Transmission and Distribution reporting unit. This impairment charge was not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 12 for additional information.

(e) As discussed in Note 12, during the year ended December 31, 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. During the year ended December 31, 2009, Commercial Power recorded impairment charges of $769 million, which consisted of a $727 million goodwill impairment charge associated with the non-regulated Midwest generation operations and a $42 million charge to write-down the value of certain generating assets in the Midwest to their estimated fair value.

(f) Duke Energy Ohio earned approximately 24% and 13% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011 and 2010, respectively. These revenues relate to the sale of capacity and electricity from Commercial Power's gas-fired non-regulated generation assets. In 2009 no single counterparty contributed 10% or more of consolidated operating revenue.

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 central, north 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 13).

At December 31, 2011, 2010, and 2009, all of Duke Energy Indiana's assets are owned by the Franchised Electric operating segment. For the years ended December 31, 2011, 2010, and 2009 all revenues, expenses, and capital and acquisition expenditures are from the Franchised Electric operating segment. There were no intersegment revenues for the years ended December 31, 2011, 2010, and 2009. All of Duke Energy Indiana's revenues are generated domestically and its long-lived assets are in the U.S.

Business Segment Data

	Segment EBIT/Consolidated Income Before Income Taxes
	Years Ended December 31,
	2011			2010			2009
	(in millions)
Franchised Electric(a)	$	424		$	650		$	494
Total reportable segment		424			650			494
Other		(59	)		(87	)		(46	)
Interest expense		(137	)		(135	)		(144	)
Interest income		14			13			13
Total consolidated	$	242		$	441		$	317

(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million and $44 million during the years ended December 31, 2011 and 2010, respectively, related to the Edwardsport IGCC plant that is currently under construction.