Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Duke Energy earns substantially all of its revenues through its reportable segments, Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.

Electric Utilities and Infrastructure

Electric Utilities and Infrastructure earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.

The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:

	Remaining Performance Obligations
(in millions)	2020		2021		2022		2023		2024		Thereafter		Total
Progress Energy	$	58	$	92	$	94	$	44	$	45	$	58	$	391
Duke Energy Progress	4		8		8		8		8		—		36
Duke Energy Florida	54		84		86		36		37		58		355
Duke Energy Indiana	5		5		—		—		—		—		10

Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.

Gas Utilities and Infrastructure

Gas Utilities and Infrastructure earns its revenues through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.

Fixed-capacity payments under long-term contracts for the Gas Utilities and Infrastructure segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:

	Remaining Performance Obligations
(in millions)	2020		2021		2022		2023		2024		Thereafter		Total
Piedmont	$	34	$	65	$	64	$	61	$	58	$	376	$	658

Commercial Renewables

Commercial Renewables earns the majority of its revenues through long-term PPAs and generally sells all of its wind and solar facility output, electricity and Renewable Energy Certificates (RECs) to customers. The majority of these PPAs have historically been accounted for as leases. For PPAs that are not accounted for as leases, the delivery of electricity and the delivery of RECs are considered separate performance obligations.

Other

The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.

Disaggregated Revenues

Disaggregated revenues are presented as follows:

	Three Months Ended June 30, 2020
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,249	$	677	$	1,173	$	460	$	713	$	169	$	231	$	—
General	1,379		507		611		298		313		103		161		—
Industrial	658		260		212		154		58		33		152		—
Wholesale	435		101		285		240		45		5		44		—
Other revenues	284		62		191		70		121		19		25		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	5,005	$	1,607	$	2,472	$	1,222	$	1,250	$	329	$	613	$	—
Gas Utilities and Infrastructure
Residential	$	157	$	—	$	—	$	—	$	—	$	62	$	—	$	96
Commercial	75		—		—		—		—		23		—		52
Industrial	27		—		—		—		—		3		—		22
Power Generation	—		—		—		—		—		—		—		6
Other revenues	12		—		—		—		—		3		—		11
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	271	$	—	$	—	$	—	$	—	$	91	$	—	$	187
Commercial Renewables
Revenue from contracts with customers	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other
Revenue from contracts with customers	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	5,338	$	1,607	$	2,472	$	1,222	$	1,250	$	420	$	613	$	187
Other revenue sources(a)	$	83	$	3	$	26	$	21	$	—	$	3	$	4	$	10
Total revenues	$	5,421	$	1,610	$	2,498	$	1,243	$	1,250	$	423	$	617	$	197

(a) Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.

	Three Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,304	$	679	$	1,243	$	496	$	747	$	159	$	225	$	—
General	1,584		531		750		339		411		105		197		—
Industrial	759		289		231		164		67		36		201		—
Wholesale	527		109		351		309		42		9		59		—
Other revenues	187		68		99		44		55		25		27		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	5,361	$	1,676	$	2,674	$	1,352	$	1,322	$	334	$	709	$	—
Gas Utilities and Infrastructure
Residential	$	146	$	—	$	—	$	—	$	—	$	64	$	—	$	82
Commercial	85		—		—		—		—		26		—		59
Industrial	29		—		—		—		—		3		—		24
Power Generation	—		—		—		—		—		—		—		13
Other revenues	22		—		—		—		—		2		—		19
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	282	$	—	$	—	$	—	$	—	$	95	$	—	$	197
Commercial Renewables
Revenue from contracts with customers	$	46	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other
Revenue from contracts with customers	$	6	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	5,695	$	1,676	$	2,674	$	1,352	$	1,322	$	429	$	709	$	197
Other revenue sources(a)	$	178	$	37	$	70	$	35	$	31	$	4	$	5	$	12
Total revenues	$	5,873	$	1,713	$	2,744	$	1,387	$	1,353	$	433	$	714	$	209

(a)

Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.

	Six Months Ended June 30, 2020
			Duke				Duke		Duke		Duke			Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy			Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio			Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	4,515	$	1,433	$	2,242	$	962	$	1,280	$	345		$	496	$	—
General	2,887		1,056		1,275		617		658		217			342		—
Industrial	1,351		529		428		308		120		68			327		—
Wholesale	932		215		606		519		87		12			99		—
Other revenues	475		122		309		133		176		39			41		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	10,160	$	3,355	$	4,860	$	2,539	$	2,321	$	681		$	1,305	$	—
Gas Utilities and Infrastructure
Residential	$	519	$	—	$	—	$	—	$	—	$	159		$	—	$	360
Commercial	244		—		—		—		—		66			—		178
Industrial	68		—		—		—		—		9			—		58
Power Generation	—		—		—		—		—		—			—		17
Other revenues	42		—		—		—		—		9			—		35
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	873	$	—	$	—	$	—	$	—	$	243		$	—	$	648
Commercial Renewables
Revenue from contracts with customers	$	113	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Other
Revenue from contracts with customers	$	13	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Total Revenue from contracts with customers	$	11,159	$	3,355	$	4,860	$	2,539	$	2,321	$	924		$	1,305	$	648
Other revenue sources(a)	$	211	$	3	$	60	$	42	$	9	$	(3	)	$	4	$	61
Total revenues	$	11,370	$	3,358	$	4,920	$	2,581	$	2,330	$	921		$	1,309	$	709

(a) Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.

	Six Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	4,674	$	1,439	$	2,357	$	1,032	$	1,325	$	348	$	531	$	—
General	3,011		1,027		1,382		645		737		208		394		—
Industrial	1,470		555		453		325		128		69		391		—
Wholesale	1,068		228		704		624		80		23		113		—
Other revenues	359		146		271		169		102		41		44		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	10,582	$	3,395	$	5,167	$	2,795	$	2,372	$	689	$	1,473	$	—
Gas Utilities and Infrastructure
Residential	$	560	$	—	$	—	$	—	$	—	$	176	$	—	$	384
Commercial	291		—		—		—		—		75		—		216
Industrial	77		—		—		—		—		10		—		66
Power Generation	—		—		—		—		—		—		—		26
Other revenues	85		—		—		—		—		10		—		75
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,013	$	—	$	—	$	—	$	—	$	271	$	—	$	767
Commercial Renewables
Revenue from contracts with customers	$	88	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other
Revenue from contracts with customers	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Revenue from contracts with customers	$	11,693	$	3,395	$	5,167	$	2,795	$	2,372	$	960	$	1,473	$	767
Other revenue sources(a)	$	343	$	62	$	149	$	76	$	67	$	4	$	9	$	21
Total revenues	$	12,036	$	3,457	$	5,316	$	2,871	$	2,439	$	964	$	1,482	$	788

(a)

Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.

As described in Note 1, Duke Energy adopted the new guidance for credit losses effective January 1, 2020, using the modified retrospective method of adoption, which does not require restatement of prior year reported results. The following table presents the reserve for credit losses for trade and other receivables based on adoption of the new standard.

	Three Months Ended June 30, 2020
				Duke						Duke			Duke		Duke		Duke
	Duke			Energy			Progress			Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida		Ohio		Indiana		Piedmont
Balance at March 31, 2020	$	89		$	11		$	20		$	9		$	11	$	5	$	3	$	9
Write-Offs	(9		)	(3		)	(3		)	(3		)	—		—		—		(4		)
Credit Loss Expense	15			6			12			8			3		—		—		1
Other Adjustments	7			—			—			—			—		—		—		—
Balance at June 30, 2020	$	102		$	14		$	29		$	14		$	14	$	5	$	3	$	6

	Six Months Ended June 30, 2020
				Duke						Duke			Duke			Duke		Duke
	Duke			Energy			Progress			Energy			Energy			Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio		Indiana		Piedmont
Balance at December 31, 2019	$	76		$	10		$	16		$	8		$	7		$	4	$	3	$	6
Cumulative Change in Accounting Principle	5			1			2			1			1			—		—		1
Write-Offs	(19		)	(6		)	(7		)	(5		)	(2		)	—		—		(5		)
Credit Loss Expense	33			9			18			10			8			1		—		4
Other Adjustments	7			—			—			—			—			—		—		—
Balance at June 30, 2020	$	102		$	14		$	29		$	14		$	14		$	5	$	3	$	6

Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, including the impacts of COVID-19, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables. Due to the COVID-19 pandemic, as described in Note 1, the Duke Energy Registrants suspended customer disconnections for nonpayment. The specific actions taken by each Duke Energy Registrant are described in Note 3. The impact of COVID-19 and Duke Energy’s related response on customers’ ability to pay for service is uncertain, and it is reasonably possible eventual write-offs of customer receivables may increase over current estimates.

The aging of trade receivables is presented in the table below. Duke Energy considers receivables greater than 30 days outstanding past due.

	June 30, 2020
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unbilled Receivables	$	829	$	332	$	274	$	137	$	137	$	1	$	7	$	6
0-30 days	1,624		470		685		336		344		48		28		73
30-60 days	152		49		56		28		28		6		1		6
60-90 days	90		29		34		17		17		4		1		5
90+ days	209		64		53		24		29		29		10		18
Trade and Other Receivables	$	2,904	$	944	$	1,102	$	542	$	555	$	88	$	47	$	108

UNBILLED REVENUE

Unbilled revenues are recognized by applying customer billing rates to the estimated volumes of energy or natural gas delivered but not yet billed. Unbilled revenues can vary significantly from period to period as a result of seasonality, weather, customer usage patterns, customer mix, average price in effect for customer classes, timing of rendering customer bills and meter reading schedules and the impact of weather normalization or margin decoupling mechanisms.

Unbilled revenues are included within Receivables and Receivables of VIEs on the Condensed Consolidated Balance Sheets as shown in the following table.

(in millions)	June 30, 2020		December 31, 2019
Duke Energy	$	829	$	843
Duke Energy Carolinas	332		298
Progress Energy	274		217
Duke Energy Progress	137		122
Duke Energy Florida	137		95
Duke Energy Ohio	1		1
Duke Energy Indiana	7		16
Piedmont	6		78

Additionally, Duke Energy Ohio and Duke Energy Indiana sell, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 11 for further information. These receivables for unbilled revenues are shown in the table below.

(in millions)	June 30, 2020		December 31, 2019
Duke Energy Ohio	$	68	$	82
Duke Energy Indiana	106		115