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Business Segments
 12 Months Ended
Dec. 31, 2012
Business Segments [Abstract]  
Business Segments

3. BUSINESS SEGMENTS

Effective with the first quarter of 2012, management began evaluating segment performance based on Segment Income. Segment Income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment Income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. In conjunction with management's use of the new reporting measure, certain governance costs that were previously unallocated have now been allocated to each of the segments. In addition, direct interest expense and income taxes are included in Segment Income. Prior year segment profitability information has been recast to conform to the current year presentation. None of these changes impacts the reportable operating segments' or the Duke Energy Registrants' previously reported consolidated revenues, net income or earnings per share.

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.

Products and services are sold between the affiliate companies and between the reportable segments of Duke Energy at cost. Segment assets as presented in the tables that follow exclude all intercompany assets.

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 North Carolina, South Carolina, west central Florida, central, north central and southern Indiana, and northern Kentucky. USFE&G also transmits and distributes electricity in southwestern Ohio. Additionally, USFE&G transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida, certain regulated portions of Duke Energy Ohio, and Duke Energy Indiana. Segment information for USFE&G for the year ended December 31, 2012, includes the results of the regulated operations of Progress Energy from July 2, 2012 forward.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Service provider in Ohio. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power engages in the development, construction and operation of renewable energy projects. In addition, DEGS develops commercial 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, located in Saudi Arabia, which is a large regional producer of methanol and methyl tertiary butyl ether.

The remainder of Duke Energy's operations is presented as Other. While it is not considered an operating segment, Other primarily includes unallocated corporate costs, which include costs not allocable to Duke Energy's reportable business segments, primarily interest expense on corporate debt instruments, 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's 60% interest in Duke Energy Trading and Marketing, LLC.

Business Segment Data                   
  Year Ended December 31, 2012
           Total       
    Commercial International Reportable      
(in millions)USFE&G Power Energy Segments Other Eliminations Total
Unaffiliated revenues(a)$ 16,042 $ 2,020 $ 1,549 $ 19,611 $ 13 $ ― $ 19,624
Intersegment revenues  38   58   ―   96   47   (143)   ―
 Total revenues$ 16,080 $ 2,078 $ 1,549 $ 19,707 $ 60 $ (143) $ 19,624
Interest expense$ 806 $ 63 $ 77 $ 946 $ 296 $ ― $ 1,242
Depreciation and amortization  1,827   228   99   2,154   135   ―   2,289
Equity in earnings of unconsolidated affiliates  (5)   14   134   143   5   ―   148
Income tax expense (benefit)  942   (8)   149   1,083   (378)   ―   705
Segment income(a)(b)(c)  1,744   87   439   2,270   (538)   ―   1,732
Add back noncontrolling interest component                    14
Income from discontinued operations, net of tax                    36
Net income                    1,782
Capital investments expenditures and acquisitions  4,220   1,038   551   5,809   149   ―   5,958
Segment assets  98,162   6,992   5,406   110,560   3,126   170   113,856
                      
(a)On January 25, 2012 and January 27, 2012, the Duke Energy Carolinas' South Carolina and North Carolina rate case settlement agreements were approved by the PSCSC and NCUC, respectively. Among other things, the rate case settlements included an annual base rate increase of $309 million in North Carolina and a $93 million annual base rate increase in South Carolina, both beginning in February 2012. The impact of these rates impacts USFE&G. See Note 4 for additional information.
(b)USFE&G recorded after-tax impairment and other charges of $402 million, net of tax of $226 million, related to the Edwardsport integrated gasification combined cycle (IGCC) project. See Note 4 for additional information. USFE&G also recorded the reversal of expenses of $60 million, net of tax of $39 million, related to a prior year Voluntary Opportunity Plan in accordance with Duke Energy Carolinas' 2011 rate case. See Note 21 for additional information.
(c)Other includes after-tax costs to achieve the merger with Progress Energy of $397 million, net of tax of $239 million. See Note 2 for additional information.

  Year Ended December 31, 2011
           Total       
    Commercial International Reportable      
(in millions)USFE&G Power Energy Segments(a) Other Eliminations Total
Unaffiliated revenues$ 10,586 $ 2,480 $ 1,467 $ 14,533 $ (4) $ ― $ 14,529
Intersegment revenues  33   11   ―   44   48   (92)   ―
 Total revenues$ 10,619 $ 2,491 $ 1,467 $ 14,577 $ 44 $ (92) $ 14,529
Interest expense$ 568 $ 87 $ 47 $ 702 $ 157 $ ― $ 859
Depreciation and amortization  1,383   230   90   1,703   103   ―   1,806
Equity in earnings of unconsolidated affiliates  ―   6   145   151   9   ―   160
Income tax expense (benefit)  674   (2)   196   868   (116)   ―   752
Segment income(a)(b)(c)  1,181   134   466   1,781   (76)   ―   1,705
Add back noncontrolling interest component                    8
Income from discontinued operations, net of tax                    1
Net income                    1,714
Capital investments expenditures and acquisitions  3,717   492   114   4,323   141   ―   4,464
Segment assets  47,977   6,939   4,539   59,455   2,961   110   62,526
                      
(a)USFE&G recorded an after-tax impairment charge of $135 million, net of tax of $87 million, related to the Edwardsport IGCC project. See Note 4 for additional information.
(b)Commercial Power recorded an after-tax impairment charge of $51 million, net of tax of $28 million, to write-down the carrying value of certain emission allowances. See Note 12 for additional information.
(c)Other includes after-tax costs to achieve the merger with Progress Energy of $51 million, net of tax of $17 million. See Note 2 for additional information.

  Year Ended December 31, 2010
           Total       
    Commercial International Reportable      
(in millions)USFE&G Power Energy Segments(a) Other Eliminations Total
Unaffiliated revenues$ 10,563 $ 2,440 $ 1,204 $ 14,207 $ 65 $ ― $ 14,272
Intersegment revenues  34   8   ―   42   53   (95)   ―
 Total revenues$ 10,597 $ 2,448 $ 1,204 $ 14,249 $ 118 $ (95) $ 14,272
Interest expense$ 569 $ 68 $ 71 $ 708 $ 132 $ ― $ 840
Depreciation and amortization  1,386   225   86   1,697   89   ―   1,786
Equity in earnings of unconsolidated affiliates  ―   7   102   109   7   ―   116
Income tax expense (benefit)  787   22   143   952   (62)   ―   890
Segment income(a)(b)(c)  1,380   (327)   305   1,358   (41)   ―   1,317
Add back noncontrolling interest component                    3
Income from discontinued operations, net of tax                    3
Net income                    1,323
Capital investments expenditures and acquisitions  3,891   525   181   4,597   258   ―   4,855
Segment assets  45,210   6,704   4,310   56,224   2,845   21   59,090
                      
(a)Commercial Power recorded an impairment charge of $602 million, which consisted of a $500 million goodwill impairment charge associated with the nonregulated Midwest generating operations and a $102 million charge, net of tax of $58 million, to write-down the value of certain nonregulated Midwest generating assets and emission allowances primarily associated with these generation assets.
(b)Other includes expense of $105 million, net of tax of $67 million, related to the 2010 voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina. See Note 21 for additional information.
(c)Other recognized an $86 million gain, net of tax of $53 million, from the sale of a 50% ownership interest in DukeNet (See Note 2 for additional information), and $68 million gain, net of tax of $41 million, from the sale of an equity method investment in Q-Comm Corporation (Q-Comm). See Note 13 for additional information.

Geographic Data        
          
(in millions)U.S. Latin America(a) Consolidated
2012        
Consolidated revenues$ 18,078 $ 1,546 $ 19,624
Consolidated long-lived assets  79,144   2,467   81,611
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
          
(a)Change in amounts of long-lived assets in Latin America includes foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

Progress Energy

Effective with the consummation of the merger with Duke Energy on July 2, 2012, Progress Energy's reportable segments changed based on the financial information the chief decision maker evaluates for the allocation of resources and assessing performance. Progress Energy's sole reportable segment is now Franchised Electric, which is primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. These electric operations also distribute and sell electricity to other utilities, primarily on the east coast of the United States. The remainder of Progress Energy's operations is presented as Other. While it is not considered an operating segment, Other primarily includes the Progress Energy holding company and Progress Energy Service Company, LLC and other miscellaneous nonregulated businesses, as well as costs to achieve the merger with Duke Energy and certain governance costs allocated by its parent, Duke Energy. See Note 14 for additional information. Also effective with the consummation of the merger, management began evaluating segment performance based on Segment Income. Segment Income is defined as income from continuing operations net of income attributable to noncontrolling interests.

Prior periods' segment information has been recast to conform to the current year presentation. None of these segment changes impact Progress Energy's previously reported consolidated net income.

Business Segment Data             
  Year Ended December 31, 2012
     Total Reportable Segment         
  Franchised Electric           
(in millions)    Other Eliminations Total
Unaffiliated revenues$ 9,305 $ 9,305 $ 12 $ ― $ 9,317
Affiliated revenues  90   90   ―   (2)   88
 Total revenues$ 9,395 $ 9,395 $ 12 $ (2) $ 9,405
Interest expense$ 459 $ 459 $ 304 $ (23) $ 740
Depreciation and amortization  727   727   20   ―   747
Income tax expense (benefit)  384   384   (212)   ―   172
Segment income(a)(b)  727   727   (379)   ―   348
Add back noncontrolling interest component              7
Income from discontinued operations, net of tax              52
Net income              407
Capital investment expenditures and acquisitions  2,334   2,334   32   ―   2,366
Segment assets  36,764   36,764   684   (43)   37,405
                
(a)Franchised Electric recorded an $88 million impairment, net of tax of $58 million, related to the decision to retire Crystal River Unit 3 and a $60 million charge, net of tax of $40 million, to record a regulatory liability related to replacement power obligations as a result of the Crystal River Unit 3 outage. These charges were not applicable to Duke Energy as this reporting unit has a lower carrying value at Duke Energy. See Note 4 for additional information.
(b)Other includes after-tax costs to achieve the merger with Duke Energy of $198 million, net of tax of $127 million. See Note 2 for additional information.
                
  Year Ended December 31, 2011
     Total Reportable Segment         
  Franchised Electric           
(in millions)    Other Eliminations Total
Unaffiliated revenues(a)$ 8,936 $ 8,936 $ 12 $ ― $ 8,948
Affiliated revenues  3   3   ―   (3)   ―
 Total revenues$ 8,939 $ 8,939 $ 12 $ (3) $ 8,948
Interest expense$ 423 $ 423 $ 324 $ (22) $ 725
Depreciation and amortization  683   683   18   ―   701
Income tax expense (benefit)  436   436   (113)   ―   323
Segment income(a)(b)  853   853   (273)   ―   580
Add back noncontrolling interest component              7
Income from discontinued operations, net of tax              (5)
Net income              582
Capital investment expenditures and acquisitions  2,239   2,239   17   ―   2,256
Segment assets  34,166   34,166   765   ―   34,931
                
(a)Franchised Electric recorded a $173 million charge, net of tax of $115 million, for the amount to be refunded to customers through the fuel clause in accordance with the FPSC's 2012 settlement agreement. See Note 4 for additional information.
(b)Other includes after-tax costs to achieve the merger with Duke Energy of $33 million, net of tax of $22 million. See Note 2 for additional information.
                
  Year Ended December 31, 2010
     Total Reportable Segment         
  Franchised Electric           
(in millions)    Other Eliminations Total
Unaffiliated revenues$ 10,207 $ 10,207 $ 16 $ ― $ 10,223
Affiliated revenues  2   2   ―   (2)   ―
 Total revenues$ 10,209 $ 10,209 $ 16 $ (2) $ 10,223
Interest expense$ 444 $ 444 $ 332 $ (29) $ 747
Depreciation and amortization  905   905   15      920
Income tax expense (benefit)  627   627   (88)      539
Segment income  1,045   1,045   (185)   ―   860
Add back noncontrolling interest component              7
Income from discontinued operations, net of tax              (4)
Net income              863
Capital investment expenditures and acquisitions  2,437   2,437   32   (24)   2,445
Segment assets  32,475   32,475   450   (39)   32,886
                

Duke Energy Ohio

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

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

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which are 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 14 for additional information. All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

Business Segment Data            
  Year Ended December 31, 2012
(in millions)Franchised Electric and GasCommercial PowerTotal Reportable SegmentsOtherEliminationsConsolidated Total
Unaffiliated revenues(a)$ 1,745$ 1,407$ 3,152$ ―$ ―$ 3,152
Intersegment revenues  1  51  52  ―  (52)  ―
 Total revenues$ 1,746$ 1,458$ 3,204$ ―$ (52)$ 3,152
Interest expense$ 61$ 28$ 89$ ―$ ―$ 89
Depreciation and amortization  179  159  338  ―  ―  338
Income tax expense (benefit)  91  25  116  (18)  ―  98
Segment income  159  50  209  (34)  ―  175
Net income            175
Capital expenditures  427  87  514  ―  ―  514
Segment assets  6,434  4,175  10,609  117  (166)  10,560
              
(a)Duke Energy Ohio earned approximately 36% of its consolidated operating revenues from PJM Settlements, Inc. in 2012, all of which is included in the Commercial Power segment. These revenues relate to the sale of capacity and electricity from Commercial Power's non-regulated generation assets.
              
  Year Ended December 31, 2011
(in millions)Franchised Electric and GasCommercial PowerTotal Reportable SegmentsOtherEliminationsConsolidated Total
Unaffiliated revenues(a)$ 1,474$ 1,707$ 3,181$ ―$ ―$ 3,181
Intersegment revenues  ―  4  4  ―  (4)  ―
 Total revenues$ 1,474$ 1,711$ 3,185$ ―$ (4)$ 3,181
Interest expense$ 68$ 36$ 104$ ―$ ―$ 104
Depreciation and amortization  168  167  335  ―  ―  335
Income tax expense (benefit)  98  6  104  (8)  ―  96
Segment income(b)  133  78  211  (17)  ―  194
Net income            194
Capital expenditures  375  124  499  ―  ―  499
Segment assets  6,293  4,740  11,033  259  (353)  10,939
              
(a)Duke Energy Ohio earned approximately 24% of its consolidated operating revenues from PJM Interconnection, LLC (PJM) in 2011, all of which is included in the Commercial Power segment. These revenues relate to the sale of capacity and electricity from Commercial Power's nonregulated generation assets.
(b)Commercial Power recorded an after-tax impairment charge of $51 million, net of tax of $28 million, during the year ended December 31, 2011, to write-down the carrying value of certain emission allowances. See Note 12 for additional information.
              
  Year Ended December 31, 2010
(in millions)Franchised Electric and GasCommercial PowerTotal Reportable SegmentsOtherEliminationsConsolidated Total
Unaffiliated revenues(a)$ 1,623$ 1,706$ 3,329$ ―$ ―$ 3,329
Intersegment revenues  ―  5  5  ―  (5)  ―
 Total revenues$ 1,623$ 1,711$ 3,334$ ―$ (5)$ 3,329
Interest expense$ 68$ 41$ 109  ―$ ―$ 109
Depreciation and amortization  226  174  400  ―  ―  400
Income tax expense (benefit)  106  40  146  (14)  ―  132
Segment loss(b)(c)  (61)  (361)  (422)  (19)  ―  (441)
Net loss            (441)
Capital expenditures  353  93  446  ―  ―  446
Segment assets  6,258  4,821  11,079 192  (247)  11,024
              
(a)Duke Energy Ohio earned approximately 13% of its consolidated operating revenues from PJM in 2010, all of which is included in the Commercial Power segment. These revenues relate to the sale of capacity and electricity from Commercial Power's nonregulated generation assets.
(b)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.
(c)Commercial Power recorded impairment charges of $621 million, which consisted of a $461 million goodwill impairment charge associated with the nonregulated Midwest generation operations and a $102 million charge, net of tax of $58 million, to write-down the value of certain nonregulated Midwest generating assets and emission allowances primarily associated with these generation assets.
              

Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana

Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana each have one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity. The remainder of each companies' operations is classified as Other. While not considered reportable segments for any of these companies, Other consists of each respective companies' share of costs to achieve the merger between Duke Energy and Progress Energy, certain corporate severance programs, and certain costs for use of corporate assets as allocated to each company. See Note 14 for additional information. The following table summarizes the net loss for Other at each of these entities.

   Year Ended December 31,
(in millions) 20122011
Duke Energy Carolinas(a)$ (169)$ (46)
Progress Energy Carolinas(a)  (139)  (18)
Progress Energy Florida(a)  (58)  (16)
Duke Energy Indiana(a)  (27)  (12)
       
(a)The net loss for the year ended December 31, 2010, recorded in Other was not material.

The Franchised Electric operating segments own substantially all of Duke Energy Carolinas', Progress Energy Carolinas', Progress Energy Florida's and Duke Energy Indiana's assets at December 31, 2012 and 2011.