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Debt and Credit Facilities
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Debt and Credit Facilities
DEBT AND CREDIT FACILITIES
Summary of Debt and Related Terms
The following tables summarize outstanding debt.
 
December 31, 2017
 
Weighted

 
 
 
 
 
 
 
 
 
 
Average

 
 
Duke

 
Duke

Duke

Duke

Duke

 
 
Interest

 
Duke

Energy

Progress

Energy

Energy

Energy

Energy

 
(in millions)
Rate

 
Energy

Carolinas

Energy

Progress

Florida

Ohio

Indiana

Piedmont

Unsecured debt, maturing 2018-2073
4.17
%
 
$
20,409

$
1,150

$
3,950

$
—

$
550

$
900

$
411

$
2,050

Secured debt, maturing 2018-2037
3.15
%
 
4,458

450

1,757

300

1,457

—

—

—

First mortgage bonds, maturing 2018-2047(a)
4.51
%
 
23,529

7,959

11,801

6,776

5,025

1,100

2,669

—

Capital leases, maturing 2018-2051(b)
4.55
%
 
1,000

61

269

139

129

5

11

—

Tax-exempt bonds, maturing 2019-2041(c)
3.23
%
 
941

243

48

48

—

77

572

—

Notes payable and commercial paper(d)
1.57
%
 
2,788

—

—

—

—

—

—

—

Money pool/intercompany borrowings
 
 
—

404

955

390

—

54

311

364

Fair value hedge carrying value adjustment
 
 
6

6

—

—

—

—

—

—

Unamortized debt discount and premium, net(e)
 
 
1,582

(19
)
(30
)
(16
)
(10
)
(33
)
(9
)
(1
)
Unamortized debt issuance costs(f)
 
 
(271
)
(47
)
(108
)
(40
)
(56
)
(7
)
(21
)
(12
)
Total debt
4.09
%
 
$
54,442

$
10,207

$
18,642

$
7,597

$
7,095

$
2,096

$
3,944

$
2,401

Short-term notes payable and commercial paper
 
 
(2,163
)
—

—

—

—

—

—

—

Short-term money pool/intercompany borrowings
 
 
—

(104
)
(805
)
(240
)
—

(29
)
(161
)
(364
)
Current maturities of long-term debt(g)
 
 
(3,244
)
(1,205
)
(771
)
(3
)
(768
)
(3
)
(3
)
(250
)
Total long-term debt(g)

 
$
49,035

$
8,898

$
17,066

$
7,354

$
6,327

$
2,064

$
3,780

$
1,787

(a)
Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)
Duke Energy includes $81 million and $603 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as capital leases in their respective financial statements because of grandfathering provisions in GAAP.
(c)
Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit.
(d)
Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 14 days.
(e)
Duke Energy includes $1,509 million and $176 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(f)
Duke Energy includes $47 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g)
Refer to Note 17 for additional information on amounts from consolidated VIEs.
 
December 31, 2016
 
Weighted

 
 
 
 
 
 
 
 
 
 
Average

 
 
Duke

 
Duke

Duke

Duke

Duke

 
 
Interest

 
Duke

Energy

Progress

Energy

Energy

Energy

Energy

 
(in millions)
Rate

 
Energy

Carolinas

Energy

Progress

Florida

Ohio

Indiana

Piedmont

Unsecured debt, maturing 2017-2073
4.30
%
 
$
17,812

$
1,150

$
3,551

$
—

$
150

$
810

$
415

$
1,835

Secured debt, maturing 2017-2037
2.60
%
 
3,909

425

1,819

300

1,519

—

—

—

First mortgage bonds, maturing 2017-2046(a)
4.61
%
 
21,879

7,410

10,800

6,425

4,375

1,000

2,669

—

Capital leases, maturing 2018-2051(b)
4.48
%
 
1,100

22

285

142

143

7

11

—

Tax-exempt bonds, maturing 2017-2041(c)
2.84
%
 
1,053

355

48

48

—

77

572

—

Notes payable and commercial paper(d)
1.01
%
 
3,112

—

—

—

—

—

—

—

Money pool/intercompany borrowings(e)
 
 
—

300

1,902

150

297

41

150

—

Fair value hedge carrying value adjustment
 
 
6

6

—

—

—

—

—

—

Unamortized debt discount and premium, net(f)
 
 
1,753

(20
)
(31
)
(16
)
(10
)
(28
)
(9
)
(1
)
Unamortized debt issuance costs(g)
 
 
(242
)
(45
)
(104
)
(38
)
(52
)
(7
)
(22
)
(13
)
Total debt
4.07
%
 
$
50,382

$
9,603

$
18,270

$
7,011

$
6,422

$
1,900

$
3,786

$
1,821

Short-term notes payable and commercial paper
 
 
(2,487
)
—

—

—

—

—

—

—

Short-term money pool/intercompany borrowings
 
 
—

—

(729
)
—

(297
)
(16
)
—

—

Current maturities of long-term debt(h)
 
 
(2,319
)
(116
)
(778
)
(452
)
(326
)
(1
)
(3
)
(35
)
Total long-term debt(h)

 
$
45,576

$
9,487

$
16,763

$
6,559

$
5,799

$
1,883

$
3,783

$
1,786


(a)
Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)
Duke Energy includes $98 million and $670 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as capital leases in their respective financial statements because of grandfathering provisions in GAAP.
(c)
Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit.
(d)
Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy and Piedmont's commercial paper programs were 14 days and eight days, respectively.
(e)
Progress Energy amount includes a $1 billion intercompany loan related to the sale of the International Disposal Group. See Note 2 for further discussion of the sale.
(f)
Duke Energy includes $1,653 million and $197 million purchase accounting adjustments related to the mergers with Progress Energy and Piedmont, respectively.
(g)
Duke Energy includes $53 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(h)
Refer to Note 17 for additional information on amounts from consolidated VIEs.
Current Maturities of Long-Term Debt
The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.
(in millions)
Maturity Date
 
Interest Rate

 
December 31, 2017

Unsecured Debt
 
 
 
 
 
Duke Energy (Parent)
June 2018
 
6.250
%
 
$
250

Duke Energy (Parent)
June 2018
 
2.100
%
 
500

Piedmont
December 2018
 
2.286
%
(b) 
250

First Mortgage Bonds
 
 
 
 
 
Duke Energy Carolinas
January 2018
 
5.250
%
 
400

Duke Energy Carolinas
April 2018
 
5.100
%
 
300

Duke Energy Florida
June 2018
 
5.650
%
 
500

Duke Energy Carolinas
November 2018
 
7.000
%
 
500

Other(a)
 
 
 
 
544

Current maturities of long-term debt
 
 
 
 
$
3,244


(a)
Includes capital lease obligations, amortizing debt and small bullet maturities.
(b)
Debt has a floating interest rate.
Maturities and Call Options
The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable and commercial paper and money pool borrowings for the Subsidiary Registrants.
 
December 31, 2017
 
 
 
Duke

 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Progress

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy(a)

 
Carolinas

 
Energy

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

2018
$
3,244

 
$
1,205

 
$
771

 
$
3

 
$
768

 
$
3

 
$
3

 
$
250

2019
3,563

 
6

 
2,191

 
903

 
490

 
548

 
61

 
—

2020
3,699

 
906

 
871

 
304

 
568

 
—

 
502

 
—

2021
3,760

 
502

 
1,472

 
602

 
371

 
48

 
69

 
159

2022
3,010

 
302

 
1,176

 
653

 
74

 
23

 
243

 
—

Thereafter
33,271

 
7,182

 
11,356

 
4,892

 
4,824

 
1,445

 
2,905

 
1,628

Total long-term debt, including current maturities
$
50,547


$
10,103


$
17,837


$
7,357


$
7,095


$
2,067


$
3,783

 
$
2,037

(a)
Excludes $1,732 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.
The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.
Short-Term Obligations Classified as Long-Term Debt
Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.
 
December 31, 2017
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

(in millions)
Energy

 
Carolinas

 
Progress

 
Ohio

 
Indiana

Tax-exempt bonds
$
312

 
$
—

 
$
—

 
$
27

 
$
285

Commercial paper(a)
625

 
300

 
150

 
25

 
150

Total
$
937


$
300

 
$
150


$
52


$
435

 
December 31, 2016
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

(in millions)
Energy

 
Carolinas

 
Progress

 
Ohio

 
Indiana

Tax-exempt bonds
$
347

 
$
35

 
$
—

 
$
27

 
$
285

Commercial paper(a)
625

 
300

 
150

 
25

 
150

Total
$
972


$
335


$
150

 
$
52


$
435

(a)
Progress Energy amounts are equal to Duke Energy Progress amounts.
Summary of Significant Debt Issuances
The following tables summarize significant debt issuances (in millions).
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Maturity
 
Interest

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

Issuance Date
Date
 
Rate

 
Energy

 
(Parent)

 
Carolinas

 
Progress

 
Florida

 
Ohio

Unsecured Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
April 2017(a)
April 2025
 
3.364
%
 
$
420

 
$
420

 
$
—

 
$
—

 
$
—

 
$
—

June 2017(b)
June 2020
 
2.100
%
 
330

 
330

 
—

 
—

 
—

 
—

August 2017(c)
August 2022
 
2.400
%
 
500

 
500

 
—

 
—

 
—

 
—

August 2017(c)
August 2027
 
3.150
%
 
750

 
750

 
—

 
—

 
—

 
—

August 2017(c)
August 2047
 
3.950
%
 
500

 
500

 
—

 
—

 
—

 
—

December 2017(d)
December 2019
(k) 
2.100
%
 
400

 
—

 
—

 
—

 
400

 
—

Secured Debt
 
 


 


 


 


 


 


 
 
February 2017(e)
June 2034
 
4.120
%
 
587

 
—

 
—

 
—

 
—

 
—

August 2017(f)
December 2036
 
4.110
%
 
233

 
—

 
—

 
—

 
—

 
—

First Mortgage Bonds
 
 

 


 
 
 
 
 
 
 

 
 
January 2017(g)
January 2020
 
1.850
%
 
250

 
—

 
—

 
—

 
250

 
—

January 2017(g)
January 2027
 
3.200
%
 
650

 
—

 
—

 
—

 
650

 
—

March 2017(h)
June 2046
 
3.700
%
 
100

 
—

 
—

 
—

 
—

 
100

September 2017(i)
September 2020
 
1.500
%
(l) 
300

 
—

 
—

 
300

 
—

 
—

September 2017(i)
September 2047
 
3.600
%
 
500

 
—

 
—

 
500

 
—

 
—

November 2017(j)
December 2047
 
3.700
%
 
550

 
—

 
550

 
—

 
—

 
—

Total issuances
 
 
 
 
$
6,070

 
$
2,500


$
550

 
$
800

 
$
1,300

 
$
100

(a)
Proceeds were used to refinance $400 million of unsecured debt at maturity and to repay a portion of outstanding commercial paper.
(b)
Debt issued to repay a portion of outstanding commercial paper.
(c)
Debt issued to repay at maturity $700 million of unsecured debt, to repay outstanding commercial paper and for general corporate purposes.
(d)
Debt issued to fund storm restoration costs related to Hurricane Irma and for general corporate purposes.
(e)
Portfolio financing of four Texas and Oklahoma wind facilities. Duke Energy pledged substantially all of the assets of these wind facilities and is nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(f)
Portfolio financing of eight solar facilities located in California, Colorado and New Mexico. Duke Energy pledged substantially all of the assets of these solar facilities and is nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(g)
Debt issued to fund capital expenditures for ongoing construction and capital maintenance, to repay a $250 million aggregate principal amount of bonds at maturity and for general corporate purposes.
(h)
Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes.
(i)
Debt issued to repay at maturity a $200 million aggregate principal amount of bonds at maturity, pay down intercompany short-term debt and for general corporate purposes, including capital expenditures.
(j)
Debt issued to refinance $400 million aggregate principal amount of bonds due January 2018, pay down intercompany short-term debt and for general corporate purposes.
(k)
Principal balance will be repaid in equal quarterly installments beginning in March 2018.
(l)
Debt issuance has a floating interest rate.
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Maturity
 
Interest

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

Issuance Date
Date
 
Rate

 
Energy

 
(Parent)

 
Carolinas

 
Progress

 
Florida

 
Ohio

 
Indiana

Unsecured Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
April 2016(a)
April 2023
 
2.875
%
 
$
350

 
$
350

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

August 2016(b)
September 2021
 
1.800
%
 
750

 
750

 
—

 
—

 
—

 
—

 
—

August 2016(b)
September 2026
 
2.650
%
 
1,500

 
1,500

 
—

 
—

 
—

 
—

 
—

August 2016(b)
September 2046
 
3.750
%
 
1,500

 
1,500

 
—

 
—

 
—

 
—

 
—

Secured Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
June 2016(c)
March 2020
 
1.196
%
 
183

 
—

 
—

 
—

 
183

 
—

 
—

June 2016(c)
September 2022
 
1.731
%
 
150

 
—

 
—

 
—

 
150

 
—

 
—

June 2016(c)
September 2029
 
2.538
%
 
436

 
—

 
—

 
—

 
436

 
—

 
—

June 2016(c)
March 2033
 
2.858
%
 
250

 
—

 
—

 
—

 
250

 
—

 
—

June 2016(c)
September 2036
 
3.112
%
 
275

 
—

 
—

 
—

 
275

 
—

 
—

August 2016(d)
June 2034
 
2.747
%
(i) 
228

 
—

 
—

 
—

 
—

 
—

 
—

August 2016(d)
June 2020
 
2.747
%
(i) 
105

 
—

 
—

 
—

 
—

 
—

 
—

First Mortgage Bonds
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
March 2016(e)
March 2023
 
2.500
%
 
500

 
—

 
500

 
—

 
—

 
—

 
—

March 2016(e)
March 2046
 
3.875
%
 
500

 
—

 
500

 
—

 
—

 
—

 
—

May 2016(f)
May 2046
 
3.750
%
 
500

 
—

 
—

 
—

 
—

 
—

 
500

June 2016(e)
June 2046
 
3.700
%
 
250

 
—

 
—

 
—

 
—

 
250

 
—

September 2016(g)
October 2046
 
3.400
%
 
600

 
—

 
—

 
—

 
600

 
—

 
—

September 2016(e)
October 2046
 
3.700
%
 
450

 
—

 
—

 
450

 
—

 
—

 
—

November 2016(h)
December 2046
 
2.950
%
 
600

 
—

 
600

 
—

 
—

 
—

 
—

Total issuances
 
 
 
 
$
9,127

 
$
4,100


$
1,600

 
$
450


$
1,894


$
250

 
$
500

(a)
Proceeds were used to pay down outstanding commercial paper and for general corporate purposes.
(b)
Proceeds were used to finance a portion of the Piedmont acquisition. The $4.9 billion Bridge Facility was terminated following the issuance of this debt. See Note 2 for additional information on the Piedmont acquisition.
(c)
DEFPF issued nuclear-asset recovery bonds and used the proceeds to acquire nuclear-asset recovery property from its parent, Duke Energy Florida. The nuclear-asset recovery bonds are payable only from and secured by the nuclear asset-recovery property. DEFPF is consolidated for financial reporting purposes; however, the nuclear asset-recovery bonds do not constitute a debt, liability or other legal obligation of, or interest in, Duke Energy Florida or any of its affiliates other than DEFPF. The assets of DEFPF, including the nuclear-asset recovery property, are not available to pay creditors of Duke Energy Florida or any of its affiliates. Duke Energy Florida used the proceeds from the sale to repay short-term borrowings under the intercompany money pool borrowing arrangement and make an equity distribution of $649 million to the ultimate parent, Duke Energy (Parent), which repaid short-term borrowings. The nuclear-asset recovery bonds are sequential pay amortizing bonds. The maturity date above represents the scheduled final maturity date for the bonds. See Notes 4 and 17 for additional information.
(d)
Emerald State Solar, LLC, an indirect wholly owned subsidiary of Duke Energy entered into portfolio financing of approximately 22 North Carolina solar facilities. Tranche A of $228 million is secured by substantially all of the assets of the solar facilities and is nonrecourse to Duke Energy. Tranche B of $105 million is secured by an Equity Contribution Agreement with Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures related to the Emerald State Solar, LLC portfolio. The initial interest rate on the loans was six months London Interbank Offered Rate (LIBOR) plus an applicable margin of 1.75 percent plus a 0.125 percent increase every three years thereafter. In connection with this debt issuance, Emerald State Solar, LLC entered into two interest rate swaps to convert the substantial majority of the loan interest payments from variable rates to fixed rates of approximately 1.81 percent for Tranche A and 1.38 percent for Tranche B, plus the applicable margin. See Note 14 for further information on the notional amounts of the interest rate swaps.
(e)
Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes.
(f)
Proceeds were used to repay $325 million of unsecured debt due June 2016, $150 million of first mortgage bonds due July 2016 and for general corporate purposes.
(g)
Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance, to repay short-term borrowings under the intercompany money pool borrowing arrangement and for general corporate purposes.
(h)
Proceeds were used to repay at maturity $350 million aggregate principal amount of certain bonds due December 2016, as well as to fund capital expenditures for ongoing construction and capital maintenance and for general corporate purposes.
(i)
Debt issuance has a floating interest rate.

In July 2016, Piedmont issued $300 million unsecured notes maturing in November 2046 with an interest rate of 3.64%. Piedmont has the option to redeem all or part of the notes before May 1, 2046, at a redemption price equal to the greater of a) 100% of the principal amount of the notes to be redeemed, and b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the date of redemption on a semi-annual basis at the Treasury Rate as defined in the indenture, as supplemented, plus 25 basis points and any accrued and unpaid interest to the date of redemption. Piedmont has the option to redeem all or part of the notes on or after May 1, 2046, at 100% of the principal amounts plus any accrued and unpaid interest to the date of redemption. Piedmont used the proceeds to fund capital expenditures, to repay short-term borrowings under Piedmont's commercial paper program and for general corporate purposes.
Available Credit Facilities
In March 2017, Duke Energy amended its Master Credit Facility to increase its capacity from $7.5 billion to $8 billion, and to extend the termination date of the facility from January 30, 2020, to March 16, 2022. The amendment also added Piedmont as a borrower within the Master Credit Facility. Piedmont's separate $850 million credit facility was terminated in connection with the amendment. With the amendment, the Duke Energy Registrants, excluding Progress Energy (Parent), have borrowing capacity under the Master Credit Facility up to specified sublimits for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. Duke Energy Carolinas and Duke Energy Progress are also required to each maintain $250 million of available capacity under the Master Credit Facility as security to meet obligations under plea agreements reached with the U.S. Department of Justice in 2015 related to violations at North Carolina facilities with ash basins.
In January 2018, Duke Energy further amended its Master Credit Facility with consenting lenders to extend $7.65 billion of our existing $8 billion Master Credit Facility by one year to March 16, 2023.
The table below includes the current borrowing sublimits and available capacity under these credit facilities.
 
December 31, 2017
 
 
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy

 
(Parent)

 
Carolinas

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

Facility size(a)
$
8,000

 
$
2,850

 
$
1,350

 
$
1,250

 
$
800

 
$
450

 
$
600

 
$
700

Reduction to backstop issuances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper(b)
(1,799
)
 
(561
)
 
(371
)
 
(314
)
 
—

 
(45
)
 
(260
)
 
(248
)
Outstanding letters of credit
(63
)
 
(54
)
 
(4
)
 
(2
)
 
(1
)
 
—

 
—

 
(2
)
Tax-exempt bonds
(81
)
 
—

 
—

 
—

 
—

 
—

 
(81
)
 
—

Coal ash set-aside
(500
)
 
—

 
(250
)
 
(250
)
 
—

 
—

 
—

 
—

Available capacity
$
5,557


$
2,235


$
725


$
684


$
799


$
405


$
259

 
$
450


(a)
Represents the sublimit of each borrower.
(b)
Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.
Three-Year Revolving Credit Facility
In June 2017, Duke Energy (Parent) entered into a three-year $1.0 billion revolving credit facility (the Three Year Revolver). Borrowings under this facility will be used for general corporate purposes.
As of December 31, 2017, $500 million has been drawn under the Three Year Revolver. This balance is classified as Long-Term Debt on Duke Energy's Consolidated Balance Sheets. Any undrawn commitments can be drawn, and borrowings can be prepaid, at any time throughout the term of the facility. The terms and conditions of the Three Year Revolver are generally consistent with those governing Duke Energy's Master Credit Facility.
Piedmont Term Loan Facility
In June 2017, Piedmont entered into an 18-month term loan facility with commitments totaling $250 million (the Piedmont Term Loan). Borrowings under the facility will be used for general corporate purposes.
As of December 31, 2017, the entire $250 million has been drawn under the Piedmont Term Loan. This balance is classified as Long-Term Debt on Piedmont's Consolidated Balance Sheets. The terms and conditions of the Piedmont Term Loan are generally consistent with those governing Duke Energy's Master Credit Facility.
Other Debt Matters
In September 2016, Duke Energy filed a Registration statement (Form S-3) with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common stock by Duke Energy.
Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $1.5 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2017, and 2016 was $986 million and $1,090 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets.
In January 2017, Duke Energy amended its Form S-3 to add Piedmont as a registrant and included in the amendment a prospectus for Piedmont under which it may issue debt securities in the same manner as other Duke Energy Registrants.
Duke Energy guaranteed debt issued by Duke Energy Carolinas of $650 million and $762 million, respectively, as of December 31, 2017, and 2016.
Money Pool
The Subsidiary Registrants, excluding Progress Energy, are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy, separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent), may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly owned subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets.
Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.
Restrictive Debt Covenants
The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65 percent for each borrower, excluding Piedmont, and 70 percent for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2017, each of the Duke Energy Registrants was in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses.
Other Loans
As of December 31, 2017, and 2016, Duke Energy had loans outstanding of $701 million, including $38 million at Duke Energy Progress and $661 million, including $39 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Investments and Other Assets on the Consolidated Balance Sheets.