Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurement Amounts For Assets And Liabilities

Duke Energy
	The following tables provide the fair value measurement amounts for financial assets and liabilities recorded at fair value on Duke Energy's Condensed
Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note ##RMDIHA. See Note ##INV for additional information related to investments by major security type.
		Total Fair Value Amounts at
(in millions)		September 30, 2012		Level 1		Level 2		Level 3
Investments in available-for-sale auction rate securities(a)		$	41	$	―	$	―	$	41
Nuclear decommissioning trust fund equity securities			2,779		2,707		53		19
Nuclear decommissioning trust fund debt securities			1,376		234		1,095		47
Other long-term trading and available-for-sale equity securities(b)			77		68		9		―
Other trading and available-for-sale debt securities(c)			650		66		584		―
Derivative assets(b)			89		―		10		79
	Total Assets		5,012		3,075		1,751		186
Derivative liabilities(d)			(776)		(24)		(598)		(154)
	Net Assets	$	4,236	$	3,051	$	1,153	$	32

		Total Fair Value Amounts at
(in millions)		December 31, 2011		Level 1		Level 2		Level 3
Investments in available-for-sale auction rate securities(a)		$	71	$	―	$	―	$	71
Nuclear decommissioning trust fund equity securities			1,337		1,285		46		6
Nuclear decommissioning trust fund debt securities			723		109		567		47
Other long-term trading and available-for-sale equity securities(b)			68		61		7		―
Other trading and available-for-sale debt securities(c)			382		22		360		―
Derivative assets(b)			74		43		6		25
	Total Assets		2,655		1,520		986		149
Derivative liabilities(d)			(264)		(36)		(164)		(64)
	Net Assets	$	2,391	$	1,484	$	822	$	85
(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.
(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Investments and Other Assets and Short-term Investments on the Condensed Consolidated Balance Sheets.
(d)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

Duke Energy Carolinas
	The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Carolinas’
Condensed Consolidated Balance Sheets at fair value. Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note ##RMDIHA. See Note ##INV for additional information related to investments by major security type.
			Total Fair Value Amounts at
(in millions)			September 30, 2012	Level 1		Level 2		Level 3
Investments in available-for-sale auction rate securities(a)		$	6	$	―	$	―	$	6
Nuclear decommissioning trust fund equity securities			1,553		1,487		47		19
Nuclear decommissioning trust fund debt securities			758		102		609		47
	Total Assets	$	2,317	$	1,589	$	656	$	72
Derivative liabilities(c)			(12)		―		―		(12)
	Net Assets	$	2,305	$	1,589	$	656	$	60

		Total Fair Value Amounts at
(in millions)		December 31, 2011		Level 1		Level 2		Level 3
Investments in available-for-sale auction rate securities(a)		$	12	$	―	$	―	$	12
Nuclear decommissioning trust fund equity securities			1,337		1,285		46		6
Nuclear decommissioning trust fund debt securities			723		109		567		47
Derivative assets(b)			1		―		1		―
	Total Assets	$	2,073	$	1,394	$	614	$	65
(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.
(b)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

Duke Energy Ohio
	The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Ohio’s
Condensed Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note ##RMDIHA.
		Total Fair Value Amounts at
(in millions)		September 30, 2012		Level 1		Level 2		Level 3
Derivative assets(a)		$	40	$	27	$	4	$	9
Derivative liabilities(b)			(46)		(20)		(9)		(17)
	Net Assets (Liabilities)	$	(6)	$	7	$	(5)	$	(8)

		Total Fair Value Amounts at
(in millions)		December 31, 2011		Level 1		Level 2		Level 3
Derivative assets(a)		$	56	$	42	$	5	$	9
Derivative liabilities(b)			(30)		(10)		(8)		(12)
	Net Assets (Liabilities)	$	26	$	32	$	(3)	$	(3)
(a)	Included in Other within Current Assets and Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.
(b)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

Duke Energy Indiana
The following tables provide the fair value measurement amounts for assets and liabilities recorded on Duke Energy Indiana’s
Condensed Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note ##RMDIHA. See Note ##INV for additional information related to investments by major security type.
		Total Fair Value Amounts at
(in millions)		September 30, 2012		Level 1		Level 2		Level 3
Available-for-sale equity securities(a)		$	49	$	49	$	―	$	―
Available-for-sale debt securities(a)			28		―		28		―
Derivative assets(b)			17		―		―		17
	Total Assets		94		49		28	$	17
Derivative liabilities(c)			(71)		―		(71)		―
	Net Assets (Liabilities)	$	23	$	49	$	(43)	$	17

		Total Fair Value Amounts at
(in millions)		December 31, 2011		Level 1		Level 2		Level 3
Available-for-sale equity securities(a)		$	46	$	46	$	―	$	―
Available-for-sale debt securities(a)			28		―		28		―
Derivative assets(b)			4		―		―		4
	Total Assets		78		46		28	$	4
Derivative liabilities(c)			(69)		(1)		(68)		―
	Net Assets (Liabilities)	$	9	$	45	$	(40)	$	4
(a)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.
(b)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheets.
(c)	Included in Other within Current Liabilities and Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

	The following tables provide a reconciliation of beginning and ending balances of assets and liabilities measured at fair value on a
recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):
(in millions)			Available-for-Sale Auction Rate Securities		Available-for-Sale NDTF Investments		Derivatives (net)		Total
Three Months Ended September 30, 2012
Balance at June 30, 2012			$	41	$	64	$	(19)	$	86
Amounts acquired in Progress Energy Merger				―		―		(30)		(30)
	Total pre-tax realized or unrealized losses included in earnings:
		Regulated electric		―		―		12		12
		Revenue, non-regulated electric, natural gas, and other		―		―		(6)		(6)
	Purchases, sales, issuances and settlements:
		Purchases		―		1		―		1
		Issuances		―		―		(24)		(24)
		Settlements		―		―		(10)		(10)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		1		2		3
Balance at September 30, 2012			$	41	$	66	$	(75)	$	32
Three Months Ended September 30, 2011
Balance at June 30, 2011			$	90	$	53	$	(22)	$	121
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Revenue, non-regulated electric, natural gas, and other		―		―		8		8
	Total pre-tax losses included in other comprehensive income:
		Gains on available for sale securities and other		8		―		―		8
	Purchases, sales, issuances and settlements:
		Purchases		―		―		8		8
		Settlements		(1)		―		(2)		(3)
	Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		1		(16)		(15)
	Transfers out of Level 3			(25)		―		―		(25)
Balance at September 30, 2011			$	72	$	54	$	(24)	$	102

(in millions)			Available-for-Sale Auction Rate Securities		Available-for-Sale NDTF Investments		Derivatives (net)		Total
Nine Months Ended September 30, 2012
Balance at December 31, 2011			$	71	$	53	$	(39)	$	85
Amounts acquired in Progress Energy Merger				―		―		(30)		(30)
	Total pre-tax realized or unrealized losses included in earnings:
		Regulated electric		―		―		37		37
		Revenue, non-regulated electric, natural gas, and other		―		―		(9)		(9)
	Total pre-tax gains included in other comprehensive income:
		Gains on available for sale securities and other		9		―		―		9
	Purchases, sales, issuances and settlements:
		Purchases		―		10		22		32
		Issuances		―		―		(24)		(24)
		Settlements		(39)		―		(34)		(73)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		3		2		5
Balance at September 30, 2012			$	41	$	66	$	(75)	$	32
Pre-tax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding at September 30, 2012
		Revenue, non-regulated electric, natural gas, and other		―		―		5		5
Total			$	―	$	―	$	5	$	5
Nine Months Ended September 30, 2011
Balance at December 31, 2010			$	118	$	47	$	(19)	$	146
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		―		―		8		8
		Revenue, non-regulated electric, natural gas, and other		―		―		(19)		(19)
	Total pre-tax gains included in other comprehensive income:
		Gains on available for sale securities and other		13		―		―		13
	Purchases, sales, issuances and settlements:
		Purchases		―		7		8		15
		Sales		―		(3)		―		(3)
		Settlements		(25)		―		(5)		(30)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		3		3		6
	Transfers out of Level 3			(34)		―		―		(34)
Balance at September 30, 2011			$	72	$	54	$	(24)	$	102
Pre-tax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding at September 30, 2011
		Revenue, non-regulated electric, natural gas, and other		―		―		(12)		(12)
Total			$	―	$	―	$	(12)	$	(12)

	The following tables provide a reconciliation of beginning and ending balances of assets and liabilities measured at fair value
on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):
(in millions)			Available-for-Sale Auction Rate Securities		Available-for-Sale NDTF Investments		Derivatives (net)		Total
Three Months Ended September 30, 2012
Balance at June 30, 2012			$	6	$	64	$	―	$	70
	Purchases, sales, issuances and settlements:
		Purchases		―		1		―		1
		Issuances		―		―		(14)		(14)
		Settlements		―		―		2		2
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		1		―		1
Balance at September 30, 2012				6	$	66	$	(12)	$	60
Three Months Ended September 30, 2011
Balance at June 30, 2011			$	12	$	53	$	―	$	65
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		1		―		1
Balance at September 30, 2011			$	12	$	54	$	―	$	66

			Available-for-Sale Auction Rate Securities		Available-for-Sale NDTF Investments		Derivatives (net)		Total
Nine Months Ended September 30, 2012
Balance at December 31, 2011			$	12	$	53	$	―	$	65
	Total pre-tax gains included in other comprehensive income:
		Gains on available for sale securities and other		2		―		―		2
	Purchases, sales, issuances and settlements:
		Purchases		―		10		―		10
		Issuances		―		―		(14)		(14)
		Settlements		(8)		―		2		(6)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		3		―		3
Balance at September 30, 2012			$	6	$	66	$	(12)	$	60
Nine Months Ended September 30, 2011
Balance at December 31, 2010			$	12	$	47	$	―	$	59
	Purchases, sales, issuances and settlements:
		Purchases		―		7		―		7
		Sales		―		(3)		―		(3)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			―		3		―		3
Balance at September 30, 2011			$	12	$	54	$	―	$	66

	The following tables provide a reconciliation of beginning and ending balances of assets and liabilities measured at fair value on a
recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):
(in millions)			Derivatives (net)
Three Months Ended September 30, 2012
Balance at June 30, 2012			$	(2)
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		1
		Revenue, non-regulated electric, natural gas, and other		(6)
	Purchases, sales, issuances and settlements:
		Settlements		(1)
Balance at September 30, 2012			$	(8)
Three Months Ended September 30, 2011
Balance at June 30, 2011			$	7
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Revenue, non-regulated electric, natural gas, and other		(1)
	Purchases, sales, issuances and settlements:
		Settlements		(1)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			2
Balance at September 30, 2011			$	7

(in millions)			Derivatives (net)
Nine Months Ended September 30, 2012
Balance at December 31, 2011			$	(3)
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated Electric		1
		Revenue, non-regulated electric, natural gas, and other		(5)
	Purchases, sales, issuances and settlements:
		Settlements		1
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			(2)
Balance at September 30, 2012			$	(8)
Pre-tax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding at September 30, 2012:
		Revenue, non-regulated electric and other	$	1
Total			$	1
Nine Months Ended September 30, 2011
Balance at December 31, 2010			$	13
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Revenue, non-regulated electric, natural gas, and other		(7)
	Purchases, sales, issuances and settlements:
		Settlements		(2)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			3
Balance at September 30, 2011			$	7
Pre-tax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding at September 30, 2011:
		Revenue, non-regulated electric and other	$	1
Total			$	1

	The following tables provide a reconciliation of beginning and ending balances of assets and liabilities measured at fair value
on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):
			Derivatives
(in millions)			(net)
Three Months Ended September 30, 2012
Balance at June 30, 2012			$	22
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		11
	Purchases, sales, issuances and settlements:
		Settlements		(16)
Balance at September 30, 2012			$	17
Three Months Ended September 30, 2011
Balance at June 30, 2011			$	10
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		8
	Purchases, sales, issuances and settlements:
		Purchases		8
		Settlements		(2)
	Total losses included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			(18)
Balance at September 30, 2011			$	6

			Derivatives
(in millions)			(net)
Nine Months Ended September 30, 2012
Balance at December 31, 2011			$	4
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		35
	Purchases, sales, issuances and settlements:
		Sales		22
		Settlements		(45)
	Total gains included on the Condensed Consolidated Balance Sheet as regulatory asset or liability			1
Balance at September 30, 2012			$	17
Nine Months Ended September 30, 2011
Balance at December 31, 2010			$	4
	Total pre-tax realized or unrealized gains (losses) included in earnings:
		Regulated electric		8
	Purchases, sales, issuances and settlements:
		Purchases		8
		Settlements		(14)
Balance at September 30, 2011			$	6

Schedule of Long-term debt, including current

Additional Fair Value Disclosures—Long-term debt, including current maturities:
The fair value of long-term debt is summarized in the following table. Judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates determined are not necessarily indicative of the amounts the Duke Energy Registrants could have settled in current markets. The fair value of the long-term debt is determined using Level 2 measurements.
		As of September 30, 2012				As of December 31, 2011
(in millions)		Book Value		Fair Value		Book Value		Fair Value
Duke Energy (a)		$	38,597	$	43,908	$	20,573	$	23,053
Duke Energy Carolinas(b)		$	9,166	$	10,744	$	9,274	$	10,629
Duke Energy Ohio		$	2,046	$	2,236	$	2,555	$	2,688
Duke Energy Indiana		$	3,704	$	4,427	$	3,459	$	4,048
(a)	Includes book value of Non-recourse long-term debt of variable interest entities of $911 million and $949 million September 30, 2012 and December 31, 2011, respectively.
(b)	Includes book value of Non-recourse long-term debt of variable interest entities of $300 million at both September 30, 2012 and December 31, 2011, respectively.