Investments in domestic and international affiliates that are not controlled by Duke Energy, but over which it has significant influence, are accounted for using the equity method. Significant investments in affiliates accounted for under the equity method are discussed below.

As of December 31, 2012 and 2011 investments accounted for under the equity method primarily consisted of Duke Energy's approximate 50% ownership interest in the five Sweetwater projects (Phase I-V), which own wind power assets located in Texas. As of December 31, 2012 Duke Energy held a 50% ownership interest in both INDU Solar Holdings, LLC and DS Cornerstone, LLC, which own solar and wind power projects, respectively. As of December 31, 2011 Duke Energy held a 49% ownership interest in Suez-DEGS Solutions of Ashtabula LLC, and a 50% ownership interest in INDU Solar Holdings, LLC. Duke Energy sold its interest in Ashtabula during 2012. The sale did not result in a significant gain or loss.

As of December 31, 2012 and 2011, Duke Energy held a 25% indirect interest in NMC, which owns and operates a methanol and MTBE business in Jubail, Saudi Arabia. As of December 31, 2011, Duke Energy held a 25% ownership interest in Attiki Gas Supply, S.A (Attiki). In the first quarter of 2012, Duke Energy completed the sale of this interest to an existing equity owner. No gain or loss was recognized on the sale.

As of December 31, 2012 and 2011, investments accounted for under the equity method primarily include a 50% ownership interest in DukeNet, which owns and operates telecommunications businesses.

On December 21, 2010, as discussed in Note 3, Duke Energy completed an agreement with Alinda to sell a 50% ownership interest in DukeNet. As a result of the disposition transaction, DukeNet and Alinda are equal 50% owners in the new joint venture. The sale resulted in a $139 million pre-tax gain recorded in Gains on Sales of Other Assets and Other, net on the Consolidated Statements of Operations. Prior to the closing of the transaction, DukeNet was a consolidated wholly owned subsidiary of Duke Energy.

On December 2, 2010, Duke Energy completed the sale of its 30% equity investment in Q-Comm to Windstream Corp. (Windstream). The sale resulted in $165 million in net proceeds, including $87 million of Windstream common shares and a $109 million pre-tax gain recorded in Gains on sales of unconsolidated affiliates on the Consolidated Statements of Operations.

As of December 31, 2012 and 2011, the carrying amount of investments in affiliates with carrying amounts greater than zero approximated the amount of underlying equity in net assets.

During the years ended December 31, 2012 and 2010, Duke Energy recorded pre-tax impairment charges to the carrying value of investments in unconsolidated affiliates of $6 million and $11 million, respectively. There were no significant pre-tax impairment charges to the carrying value of investments in unconsolidated affiliates during the year ended December 31, 2011. These impairment charges, which were recorded in Gains (losses) on sales of unconsolidated affiliates on the Consolidated Statements of Operations, were recorded as a result of Duke Energy concluding that it would not be able to recover its carrying value in the related investments, thus the carrying value of these investments were written down to their estimated fair value.

The following table presents Duke Energy's investment in equity method unconsolidated affiliates by segment and geographic area.


	December 31, 2012						December 31, 2011
(in millions)		U.S.		Foreign		Total		U.S.		Foreign		Total
U.S. Franchised Electric and Gas	$	5	$	―	$	5	$	5	$	―	$	5
Commercial Power		219		―		219		188		―		188
International Energy		―		81		81		―		91		91
Other		168		10		178		167		9		176
Investments in Equity Method Unconsolidated Affiliates	$	392	$	91	$	483	$	360	$	100	$	460


	The following table presents Duke Energy's equity in earnings of equity method unconsolidated affiliates by segment.

		Years Ended December 31,
		2012						2011						2010
(in millions)			U.S		Foreign		Total		U.S		Foreign		Total		U.S		Foreign		Total
U.S. Franchised Electric and Gas		$	(5)	$	―	$	(5)	$	―	$	―	$	―	$	―	$	―	$	―
Commercial Power			14		―		14		6		―		6		7		―		7
International Energy			―		134		134		―		145		145		―		102		102
Other			3		2		5		7		2		9		5		2		7
Equity in Earnings of Unconsolidated Affiliates		$	12	$	136	$	148	$	13	$	147	$	160	$	12	$	104	$	116

	During the years ended December 31, 2012, 2011 and 2010, Duke Energy received distributions from equity investments of $183 million,
$149 million and $111 million, respectively, which are included in Other assets within Cash Flows from Operating Activities on the Consolidated
Statements of Cash Flows.

	The following table presents Duke Energy's summarized combined financial information of equity method unconsolidated affiliates.

(in millions)		December 31, 2012		December 31, 2011
Balance Sheet
Current assets		$	577	$	492
Non-current assets			2,252		1,599
Current liabilities			(601)		(267)
Non-current liabilities			(579)		(225)
Net assets		$	1,649	$	1,599

	Years Ended December 31,
(in millions)	2012		2011		2010
Income Statement
Operating revenues	$	1,624	$	1,615	$	1,385
Operating expenses	$	727	$	865	$	924
Net income	$	665	$	607	$	430

Commercial Power had an interest in South Houston Green Power, L.P. (SHGP), which is a cogeneration facility containing three combustion turbines in Texas City, Texas. Although Duke Energy owned a significant portion of SHGP, it was not consolidated as Duke Energy did not hold a majority voting control or have the ability to exercise control over SHGP, nor was Duke Energy the primary beneficiary. Duke Energy exercised the cash settlement option of an asset swap agreement for SHGP and received total cash proceeds of $184 million in December 2010. This transaction did not result in a significant gain.