Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2017

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)

The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

Duke Energy Carolinas and Duke Energy Progress participate in a Joint Dispatch Agreement (JDA), which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power under the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(d)

Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress' natural gas-fired generation facilities. Piedmont records the sales in Regulated natural gas revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases in Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income. The amounts are not eliminated in accordance with rate-based accounting regulations. For the three and six months ended June 30, 2016, which was prior to the Piedmont acquisition, Piedmont recorded $19 million and $38 million, respectively, of natural gas sales with Duke Energy Progress and $1 million and 2 million, respectively, with Duke Energy Carolinas.

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Progress Energy [Member]

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Duke Energy Progress [Member]

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)

Duke Energy Florida [Member]

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)

Duke Energy Ohio [Member]

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Duke Energy Indiana [Member]

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)

Piedmont Natural Gas [Member]

The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.



	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2017
Intercompany income tax receivable	$	—	$	102	$	35	$	—	$	19	$	25	$	56
Intercompany income tax payable	20		—		—		3		—		—		—

December 31, 2016
Intercompany income tax receivable	$	1	$	—	$	—	$	37	$	—	$	—	$	—
Intercompany income tax payable	—		37		90		—		1		3		38

The following table presents expenses for the three and six months ended June 30, 2017 and 2016, which are included in Cost of natural gas on Piedmont's Condensed Consolidated Statement of Operations and Comprehensive Income.



		Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	Type of expense	2017		2016		2017		2016
Cardinal	Transportation Costs	$	2	$	2	$	4	$	4
Pine Needle	Gas Storage Costs	2		2		4		5
Hardy Storage	Gas Storage Costs	3		3		5		5
Total		$	7	$	7	$	13	$	14

Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2017		2016		2017		2016
Duke Energy Carolinas
Corporate governance and shared service expenses^(a)	$	178	$	199	$	377	$	416
Indemnification coverages^(b)	6		5		12		11
JDA revenue^(c)	17		2		33		11
JDA expense^(c)	21		50		52		91
Intercompany natural gas purchases^(d)	1		—		2		—
Progress Energy
Corporate governance and shared service expenses^(a)	$	173	$	160	$	342	$	334
Indemnification coverages^(b)	9		9		19		17
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Progress
Corporate governance and shared service expenses^(a)	$	102	$	89	$	205	$	189
Indemnification coverages^(b)	3		4		7		7
JDA revenue^(c)	21		50		52		91
JDA expense^(c)	17		2		33		11
Intercompany natural gas purchases^(d)	19		—		38		—
Duke Energy Florida
Corporate governance and shared service expenses^(a)	$	71	$	71	$	137	$	145
Indemnification coverages^(b)	6		5		12		10
Duke Energy Ohio
Corporate governance and shared service expenses^(a)	$	84	$	87	$	174	$	172
Indemnification coverages^(b)	1		1		2		2
Duke Energy Indiana
Corporate governance and shared service expenses^(a)	$	87	$	89	$	177	$	183
Indemnification coverages^(b)	2		2		4		4
Piedmont
Corporate governance and shared service expenses^(a)	$	8	$	—	$	14	$	—
Indemnification coverages^(b)	—		—		1		—
Intercompany natural gas sales^(d)	20		—		40		—

(a)


(b)	The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.

(c)

(d)