The Duke Energy Registrants classify their investments in debt and equity securities into two categories – trading and available-for-sale.

Trading Securities. Investments in debt and equity securities held in grantor trusts associated with certain deferred compensation plans and certain other investments are classified as trading securities and are reported at fair value in the Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. At December 31, 2012 and December 31, 2011, the fair value of these investments was $33 million and $32 million, respectively.

Available for Sale Securities. All other investments in debt and equity securities are classified as available-for-sale securities, which are also reported at fair value on the Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized.

Duke Energy's available-for-sale securities are primarily comprised of investments held in the (i) Nuclear Decommissioning Trust Fund (NDTF) at Duke Energy Carolinas, Progress Energy Carolinas and Progress Energy Florida, (ii) investments in grantor trusts at both Duke Energy Indiana and Progress Energy Florida related to other post-retirement benefit plans as required by the IURC and FPSC, respectively, (iii) Duke Energy captive insurance investment portfolio, (iv) Duke Energy's foreign operations investment portfolio and (v) investments of Duke Energy and Duke Energy Carolinas in auction rate debt securities.

The investments within the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and the Duke Energy Indiana and Progress Energy Florida grantor trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida and Duke Energy Indiana. Accordingly, all unrealized gains and losses associated with debt and equity securities within the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and the Duke Energy Indiana and Progress Energy Florida grantor trusts are considered other-than-temporary and are recognized immediately when the fair value of individual investments is less than the cost basis of the investment. Pursuant to regulatory accounting, substantially all unrealized gains and losses associated with investments in debt and equity securities within the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and the Duke Energy Indiana and Progress Energy Florida grantor trusts are deferred as a regulatory asset or liability. As a result there is no immediate impact on the earnings of Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress Energy Florida or Duke Energy Indiana.

For investments in debt and equity securities held in the captive insurance investment portfolio, the foreign operations investment portfolio and investments in auction rate debt securities, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired. If so, the write-down to fair value may be included in earnings based on the criteria discussed below.

For available-for-sale securities outside of the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida, and the Duke Energy Indiana and Progress Energy Florida grantor trusts, which are discussed separately above, Duke Energy analyzes all investment holdings each reporting period to determine whether a decline in fair value should be considered other-than-temporary. Criteria used to evaluate whether an impairment associated with equity securities is other-than-temporary includes, but is not limited to, the length of time over which the market value has been lower than the cost basis of the investment, the percentage decline compared to the cost of the investment and management's intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. If a decline in fair value is determined to be other-than-temporary, the investment is written down to its fair value through a charge to earnings.

With respect to investments in debt securities, under the accounting guidance for other-than-temporary impairment, if the entity does not have an intent to sell the security and it is not more likely than not that management will be required to sell the debt security before the recovery of its cost basis, the impairment write-down to fair value would be recorded as a component of other comprehensive income, except for when it is determined that a credit loss exists. In determining whether a credit loss exists, management considers, among other things, the length of time and the extent to which the fair value has been less than the amortized cost basis, changes in the financial condition of the issuer of the security, or in the case of an asset backed security, the financial condition of the underlying loan obligors, consideration of underlying collateral and guarantees of amounts by government entities, ability of the issuer of the security to make scheduled interest or principal payments and any changes to the rating of the security by rating agencies. If it is determined that a credit loss exists, the amount of impairment write-down to fair value would be split between the credit loss, which would be recognized in earnings, and the amount attributable to all other factors, which would be recognized in other comprehensive income. Management believes, based on consideration of the criteria above, that no credit loss exists as of December 31, 2012 and December 31, 2011. Management does not have the intent to sell such investments in auction rate debt securities and the investments in debt securities within its captive insurance investment portfolio and foreign operations investment portfolio, and it is not more likely than not that management will be required to sell these securities before the anticipated recovery of their cost basis. Management has concluded that there were no other-than-temporary impairments for debt or equity securities necessary as of December 31, 2012 and December 31, 2011. Accordingly, all changes in the market value of investments other than the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida and the Duke Energy Indiana and Progress Energy Florida grantor trusts were reflected as a component of other comprehensive income in 2012 and 2011.

See Note 16 for additional information related to fair value measurements for investments in auction rate debt securities.

Short-term and Long-term investments. Investments in debt and equity securities are classified as either short-term investments or long-term investments based on management's intent and ability to sell these securities, taking into consideration illiquidity factors in the current markets.

Duke Energy holds corporate debt securities which were purchased using excess cash from its foreign operations. These investments are classified as Short-term investments on the Consolidated Balance Sheet and are available for current operations of Duke Energy's foreign business. The fair value of these investments was $333 million as of December 31, 2012 and $190 million as of December 31, 2011.

Duke Energy classifies its investments in debt and equity securities held in the NDTF at Duke Energy Carolinas, Progress Energy Carolinas, Progress Energy Florida, the Duke Energy Indiana and Progress Energy Florida grantor trusts and the captive insurance investment portfolio as long-term. Additionally, Duke Energy has classified $29 million carrying value ($34 million par value) and $71 million carrying value ($89 million par value) of investments in auction rate debt securities as long-term at December 31, 2012 and December 31, 2011, respectively,

Duke Energy

	The following table presents the estimated fair value of short-term and long-term investments for Duke Energy. For investments held
within the NDTF, and investments within Grantor Trusts which are classified as Other Investments below, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
NDTF
Cash and cash equivalents		$	―	$	―	$	105	$	―	$	―	$	63
Equity securities			1,132		19		2,837		443		16		1,337
Corporate debt securities			21		1		338		8		2		205
Municipal bonds			12		1		194		2		―		51
U.S. government bonds			24		1		625		16		―		306
Other debt securities			10		1		164		4		4		98
Total NDTF		$	1,199	$	23	$	4,263	$	473	$	22	$	2,060
Other Investments
Cash and cash equivalents			―		―		17		―		―		―
Equity securities		$	10	$	―	$	63	$	5	$	2	$	60
Corporate debt securities			2		―		381		1		1		241
Municipal bonds			4		1		70		1		―		28
U.S. government bonds			―		―		23		1		―		21
Other debt securities			1		―		86		2		―		68
Auction rate securities			―		6		29		―		17		71
Total Other Investments^(a)		$	17	$	7	$	669	$	10	$	20	$	489
Total Investments		$	1,216	$	30	$	4,932	$	483	$	42	$	2,549

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance Sheets.

	The table below summarizes the maturity date for debt securities held by Duke Energy. The table below excludes auction rate
securities based on the stated maturity date. See Note 16 for information about fair value measurements related to investments in auction rate debt securities.

(in millions)		December 31, 2012
Due in one year or less		$	312
Due after one through five years			403
Due after five through 10 years			392
Due after 10 years			774
Total		$	1,881

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Duke Energy.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
NDTF
Equity securities		$	155	$	4	$	15	$	111	$	4	$	12
Corporate debt securities			42		―		1		57		1		1
Municipal bonds			29		1		―		―		―		―
U.S. government bonds			135		―		1		8		―		―
Other debt securities			38		―		1		113		1		3
Total NDTF		$	399	$	5	$	18	$	289	$	6	$	16
Other Investments
Equity securities		$	4	$	―	$	―	$	12	$	1	$	1
Corporate debt securities			7		―		―		201		1		―
Municipal bonds			18		1		―		3		―		―
U.S. government bonds			6		―		―		―		―		―
Other debt securities			21		―		―		8		―		―
Auction rate securities			29		6		―		71		17		―
Total Other Investments		$	85	$	7	$	―	$	295	$	19	$	1
Total Investments		$	484	$	12	$	18	$	584	$	25	$	17

Duke Energy Carolinas

	The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Carolinas. For
investments held within the NDTF, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
NDTF
Cash and cash equivalents		$	―	$	―	$	40	$	―	$	―	$	63
Equity securities			600		5		1,592		443		16		1,337
Corporate debt securities			11		1		250		8		2		205
Municipal bonds			2		―		40		2		―		51
U.S. government bonds			10		―		304		16		―		306
Other debt securities			9		2		135		4		4		98
Total NDTF		$	632	$	8	$	2,361	$	473	$	22	$	2,060
Other Investments
Auction rate securities			―		1		3		―		3		12
Total Other Investments^(a)		$	―	$	1	$	3	$	―	$	3	$	12
Total Investments		$	632	$	9	$	2,364	$	473	$	25	$	2,072

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance Sheets.

	The table below summarizes the maturity date for debt securities held by Duke Energy Carolinas. The table below excludes auction
rate securities based on the stated maturity date. See Note 16 for information about fair value measurements related to investments in auction rate debt securities.

(in millions)		December 31, 2012
Due in one year or less		$	1
Due after one through five years			153
Due after five through 10 years			201
Due after 10 years			374
Total		$	729

	The above table excludes auction rate securities based on the stated maturity date. See Note 16 for information about fair
value measurements related to investments in auction rate debt securities.

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Duke Energy Carolinas.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
NDTF
Equity securities		$	71	$	―	$	5	$	111	$	4	$	12
Corporate debt securities			35		―		1		57		1		1
Municipal bonds			3		―		―		―		―		―
U.S. government bonds			62		―		―		8		―		―
Other debt securities			36		―		2		113		1		3
Total NDTF		$	207	$	―	$	8	$	289	$	6	$	16
Other Investments
Auction rate securities			3		1		―		12		3		―
Total Other Investments		$	3	$	1	$	―	$	12	$	3	$	―
Total Investments		$	210	$	1	$	8	$	301	$	9	$	16

Progress Energy

	The following table presents the estimated fair value of short-term and long-term investments for Progress Energy. For investments held
within the NDTF, and investments within Grantor Trusts which are classified as Other Investments below, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
NDTF
Cash and cash equivalents		$	―	$	―	$	65	$	―	$	―	$	56
Equity securities			532		14		1,245		412		29		1,062
Corporate debt securities			9		―		89		6		―		86
Municipal bonds			11		1		154		7		2		127
U.S. government bonds			14		―		321		18		―		268
Other debt securities			1		―		28		1		―		31
Total NDTF		$	567	$	15	$	1,902	$	444	$	31	$	1,630
Other Investments
Cash and cash equivalents		$	―	$	―	$	17	$	―	$	―	$	20
Municipal bonds			3		―		40		―		―		―
Total Other Investments^(a)		$	3	$	―	$	57	$	―	$	―	$	20
Total Investments		$	570	$	15	$	1,959	$	444	$	31	$	1,650

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance Sheets.

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Progress Energy.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
NDTF
Equity securities		$	83	$	4	$	10	$	112	$	10	$	19
Corporate debt securities			6		―		―		20		―		―
Municipal bonds			26		―		―		21		2		―
U.S. government bonds			74		―		1		(23)		―		―
Other debt securities			2		―		―		6		―		―
Total NDTF		$	191	$	4	$	11	$	136	$	12	$	19
Other
Municipal bonds		$	7	$	―	$	―	$	―	$	―	$	―
Other debt securities			―		―		―		―		―		―
Total Other		$	7	$	―	$	―	$	―	$	―	$	―
Total Investments		$	198	$	4	$	11	$	136	$	12	$	19

Progress Energy Carolinas

	The following table presents the estimated fair value of short-term and long-term investments for Progress Energy Carolinas. For
investments held within the NDTF, and investments within Grantor Trusts which are classified as Other Investments below, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
NDTF
Cash and cash equivalents		$	―	$	―	$	55	$	―	$	―	$	49
Equity securities			337		11		811		262		20		690
Corporate debt securities			8		―		78		5		―		69
Municipal bonds			4		―		80		3		―		55
U.S. government bonds			13		―		241		16		―		225
Other debt securities			1		―		10		1		―		13
Total NDTF		$	363	$	11	$	1,275	$	287	$	20	$	1,101
Other Investments
Cash and cash equivalents		$	―	$	―	$	3	$	―	$	―	$	6
Total Other Investments^(a)		$	―	$	―	$	3	$	―	$	―	$	6
Total Investments		$	363	$	11	$	1,278	$	287	$	20	$	1,107

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance Sheets.

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Progress Energy Carolinas.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
NDTF
Equity securities		$	59	$	2	$	9	$	69	$	10	$	10
Corporate debt securities			6		―		―		10		―		―
Municipal bonds			18		―		―		8		―		―
U.S. government bonds			49		―		―		9		―		―
Other debt securities			1		―		―		2		―		―
Total NDTF		$	133	$	2	$	9	$	98	$	10	$	10

Progress Energy Florida

	The following table presents the estimated fair value of short-term and long-term investments for Progress Energy Florida. For
investments held within the NDTF, and investments within Grantor Trusts which are classified as Other Investments below, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
NDTF
Cash and cash equivalents		$	―	$	―	$	10	$	―	$	―	$	7
Equity securities			194		4		434		150		9		372
Corporate debt securities			1		―		11		1		―		17
Municipal bonds			7		―		74		4		2		72
U.S. government bonds			1		―		80		2		―		43
Other debt securities			1		―		18		―		―		18
Total NDTF		$	204	$	4	$	627	$	157	$	11	$	529
Other Investments
Cash and cash equivalents		$	―	$	―	$	1	$	―	$	―	$	1
Municipal bonds			3		―		40		―		―		―
Total Other Investments^(a)		$	3	$	―	$	41	$	―	$	―	$	1
Total Investments		$	207	$	4	$	668	$	157	$	11	$	530

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance sheets.

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Progress Energy Florida.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
NDTF
Equity securities		$	24	$	2	$	1	$	43	$	―	$	9
Corporate debt securities			―		―		―		10		―		―
Municipal bonds			8		1		―		13		2		―
U.S. government bonds			25		―		―		(32)		―		―
Other debt securities			1		―		―		4		―		―
Total NDTF		$	58	$	3	$	1	$	38	$	2	$	9
Other
Municipal bonds		$	7	$	―	$	―	$	―	$	―	$	―
Other		$	7	$	―	$	―	$	―	$	―	$	―
Total Investments		$	65	$	3	$	1	$	38	$	2	$	9

Duke Energy Indiana

	The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Indiana. Unrealized
holding gains and losses on these investments are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Consolidated Balance Sheets.

		December 31, 2012						December 31, 2011
(in millions)		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Estimated Fair Value
Other Investments
Equity securities		$	9	$	―	$	50	$	5	$	1	$	46
Municipal bonds			1		―		28		1		―		28
Total Other Investments^(a)		$	10	$	―	$	78	$	6	$	1	$	74
Total Investments		$	10	$	―	$	78	$	6	$	1	$	74

(a)	These amounts are recorded in Other within Investments and Other Assets on the Consolidated Balance Sheets.

	The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position
for which other-than-temporary impairment losses have not been recorded, summarized by investment type and length of time that the securities have been in a continuous loss position, are presented in the table below for Duke Energy Indiana.

		December 31, 2012						December 31, 2011
				Unrealized		Unrealized				Unrealized		Unrealized
				Loss		Loss				Loss		Loss
				Position		Position				Position		Position
(in millions)		Fair Value		>12 months		<12 months		Fair Value		>12 months		<12 months
Other Investments
Equity securities		$	―	$	―	$	―	$	8	$	―	$	1
Municipal bonds			12		―		―		3		―		―
Total Other Investments		$	12	$	―	$	―	$	11	$	―	$	1
Total Investments		$	12	$	―	$	―	$	11	$	―	$	1