DUKE ENERGY CORPORATION
Schedule I - Condensed Parent Company Financial Statements
Condensed Statements of Operations and Comprehensive Income
			Years Ended December 31,
(In millions, except per-share amounts)			2012		2011		2010
Operating Revenues		$	0	$	0	$	0
Operating Expenses			23		6		52
Operating Loss			(23)		(6)		(52)
Equity in Earnings of Subsidiaries			1,837		1,782		1,384
Other Income and Expenses, net			19		21		6
Interest Expense			197		156		139
Income Before Income Taxes			1,636		1,641		1,199
Income Tax Benefit			(96)		(64)		(118)
Income From Continuing Operations			1,732		1,705		1,317
Income From Discontinued Operations, net of tax			36		1		3
Net Income		$	1,768	$	1,706	$	1,320
Comprehensive Income		$	1,696	$	1,470	$	1,694


Common Stock Data
Earnings per share (from continuing operations)
	Basic	$	3.01	$	3.83	$	2.99
	Diluted	$	3.01	$	3.83	$	2.99
Earnings (loss) per share (from discontinued operations)
	Basic	$	0.06	$	0.00	$	0.01
	Diluted	$	0.06	$	0.00	$	0.01
Earnings per share
	Basic	$	3.07	$	3.83	$	3.00
	Diluted	$	3.07	$	3.83	$	3.00
Dividends declared per share		$	3.03	$	2.97	$	2.91
Weighted-average shares outstanding
	Basic		574		444		439
	Diluted		575		444		440

DUKE ENERGY CORPORATION
Schedule I - Condensed Parent Company Financial Statements
Condensed Balance Sheets
			December 31,
(In millions, except per-share amounts)			2012		2011
ASSETS
Current Assets
Cash and cash equivalents		$	267	$	845
Receivables			17		6
Receivables from affiliated companies			128		39
Notes receivable from affiliated companies			1,590		608
Other			191		100
	Total current assets		2,193		1,598
Investments and Other Assets
Notes receivable from affiliated companies			450		450
Investment in consolidated subsidiaries			45,048		25,670
Other			612		571
	Total investments and other assets		46,110		26,691
Total Assets		$	48,303	$	28,289
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable		$	3	$	0
Accounts payable to affiliated companies			12		0
Notes payable and commercial paper			745		154
Taxes accrued			12		35
Current maturities of long-term debt			256		0
Other			171		65
	Total current liabilities		1,199		254
Long-term Debt			5,250		4,223
Long-term debt payable to affiliated companies			105		105
Deferred Credits and Other Liabilities
Deferred income taxes			-		16
Other			886		919
	Total other long-term liabilities		886		935
Commitments and Contingencies
Common Stockholders’ Equity
Common Stock, $0.001 par value, 2 billion shares authorized; 704 million and 445 million shares outstanding at December 31, 2012 and 2011, respectively			1		1
Additional paid-in capital			39,279		21,132
Retained earnings			1,889		1,873
Accumulated other comprehensive loss			(306)		(234)
	Total common stockholders’ equity		40,863		22,772
Total Liabilities and Common Stockholders’ Equity		$	48,303	$	28,289

DUKE ENERGY CORPORATION
Schedule I - Condensed Parent Company Financial Statements
Condensed Statements of Cash Flows
			Years Ended December 31,
(In millions)			2012		2011		2010
Net cash (used in) provided by operating activities		$	(136)	$	(287)	$	178
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale securities			(40)		(45)		-
Proceeds from sales and maturities of available-for-sale securities			82		105		36
Distributions from wholly owned subsidiaries			450		299		350
Notes receivable from affiliated companies			(982)		264		263
Other			8		14		6
Net cash (used in) provided by investing activities			(482)		637		655
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
	Issuance of long-term debt		1,226		996		522
	Issuance of common stock related to employee benefit plans		23		67		302
Payments for the redemption of long-term debt			(75)		-		(274)
Notes payable and commercial paper			584		151		(2)
Notes payable to affiliated companies			-		105		-
Dividends paid			(1,752)		(1,329)		(1,284)
Other			34		17		26
Net cash provided by (used in) financing activities			40		7		(710)
Net (decrease) increase in cash and cash equivalents			(578)		357		123
Cash and cash equivalents at beginning of period			845		488		365
Cash and cash equivalents at end of period		$	267	$	845	$	488

Duke Energy Corporation (Duke Energy) is a holding company that conducts substantially all of its business operations through its subsidiaries. As specified in the merger conditions issued by various state commissions in connection with Duke Energy's merger with Cinergy Corp. (Cinergy) in April 2006, there are restrictions on Duke Energy's ability to obtain funds from certain of its subsidiaries through dividends, loans or advances. As a condition to the Duke Energy and Progress Energy merger approval, the NCUC and the PSCSC imposed conditions (the Progress Merger Conditions) on the ability of Duke Energy Carolinas, and Progress Energy Carolinas to transfer funds to Duke Energy through loans or advances, as well as restricted amounts available to pay dividends to Duke Energy. For further information, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” Accordingly, these condensed financial statements have been prepared on a parent-only basis. Under this parent-only presentation, Duke Energy's investments in its consolidated subsidiaries are presented under the equity method of accounting. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and footnotes required by Generally Accepted Accounting Principles (GAAP) in the United States (U.S.) for annual financial statements. Because these parent-only financial statements and notes do not include all of the information and footnotes required by GAAP in the U.S. for annual financial statements, these parent-only financial statements and other information included should be read in conjunction with Duke Energy's audited Consolidated Financial Statements contained within Part II, Item 8 of this Form 10-K for the year ended December 31, 2012.

Duke Energy and its subsidiaries file a consolidated federal income tax return and other state and foreign jurisdictional returns as required. The taxable income of Duke Energy's wholly owned operating subsidiaries is reflected in Duke Energy's U.S. federal and state income tax returns. Duke Energy has a tax sharing agreement with its wholly owned operating subsidiaries, where the separate return method is used to allocate tax expenses and benefits to the wholly owned operating subsidiaries whose investments or results of operations provide these tax expenses and benefits. The accounting for income taxes essentially represents the income taxes that Duke Energy's wholly owned operating subsidiaries would incur if each were a separate company filing its own tax return as a C-Corporation.

		Weighted-				December 31,
(in millions)		Average Rate		Year Due		2012		2011
Unsecured debt		4.1	%	2013 - 2026	$	4,929	$	3,773
Capital leases		7.8	%	2046		127		―
Intercompany borrowings^(a)		0.5	%	2021		105		105
Notes payable and commercial paper^(b)		0.5	%			1,195		604
Total debt						6,356		4,482
Short-term notes payable and commercial paper						(745)		(154)
Current maturities of long-term debt						(256)		―
Total long-term debt					$	5,355	$	4,328

(a)	This amount represents an intercompany loan with Duke Energy's affiliate, Bison Insurance Company Limited.
(b)	Includes $450 million at December 31, 2012 and 2011 that was classified as Long-term Debt on the Condensed Balance Sheets due to the existence of long-term credit facilities which back-stop 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 was 18 days and 17 days as of December 31, 2012 and 2011, respectively.

At December 31, 2012, Duke Energy has guaranteed $734 million of debt issued by Duke Energy Carolinas, LLC, one of Duke Energy's wholly owned operating subsidiaries.

On November 13, 2012, Duke Energy filed a prospectus supplement to the September 2010 Form S-3 with the SEC, to sell up to $1 billion of fixed or variable rate unsecured senior notes, called InterNotes, due 1 year to 30 years from the date of issuance. The InterNotes will be issued as direct, unsecured and unsubordinated obligations of Duke Energy Corporation. The net proceeds from the sale of InterNotes will be used to fund capital expenditures in our unregulated businesses and for general corporate purposes. The balance as of December 31, 2012 is $36 million, with maturities ranging from 10 to 14 years. The notes are long-term debt obligations of Duke Energy and are reflected as Long-term debt on Duke Energy's Consolidated Balance Sheets.

On April 4, 2011, Duke Energy filed a Form S-3 with the SEC to sell up to $1 billion of variable denomination floating rate demand notes, called PremierNotes. The Form S-3 states that no more than $500 million 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, but may be redeemed in whole or in part by Duke Energy at any time. The notes are non-transferable and may be redeemed in whole or in part at the investor's option. Proceeds from the sale of the notes will be used for general corporate purposes. The balance as of December 31, 2012 and December 31, 2011, was $395 million and $79 million, respectively. The notes are a short-term debt obligation of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy's Consolidated Balance Sheets.

In November 2011, Duke Energy entered into a $6 billion, five-year master credit facility, expiring in November 2016, with $4 billion available at closing and the remaining $2 billion became available July 2, 2012, following the closing of the merger with Progress Energy. In October 2012, the Duke Energy Registrants reached an agreement with banks representing $5.63 billion of commitments under the master credit facility to extend the expiration date by one year to November 2017. Through November 2016, the available credit under this facility remains at $6 billion. The Duke Energy Registrants each have borrowing capacity under the master credit facility up to specified sublimits for each borrower. However, 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 by the use of the master credit facility to backstop the issuances of commercial paper, certain letters of credit and variable rate demand tax-exempt bonds that may be put to the Company at the option of the holder. Borrowing sublimits are also reduced for certain amounts outstanding under the money pool arrangement.

Duke Energy and its subsidiaries are a party to litigation, environmental and other matters. For further information, see Note 5 to the Consolidated Financial Statements, “Commitments and Contingencies.”

Duke Energy has various financial and performance guarantees and indemnifications which are issued in the normal course of business. These contracts include performance guarantees, stand-by letters of credit, debt guarantees, surety bonds and indemnifications. Duke Energy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. The maximum potential amount of future payments Duke Energy could have been required to make under these guarantees as of December 31, 2012 was approximately $6.1 billion. Of this amount, substantially all relates to guarantees of wholly owned consolidated entities, including debt issued by Duke Energy Carolinas discussed above, and less than wholly owned consolidated entities. The majority of these guarantees expire at various times between 2013 and 2039, with the remaining performance guarantees having no contractual expiration. See Note 7 to the Consolidated Financial Statements, “Guarantees and Indemnifications,” for further discussion of guarantees issued on behalf of unconsolidated affiliates and third parties.

Duke Energy provides support to certain subsidiaries for their short-term borrowing needs through participation in a money pool arrangement. Under this arrangement, certain subsidiaries with short-term funds may provide short-term loans to affiliates participating under this arrangement. Additionally, Duke Energy provides loans to subsidiaries through the money pool, but is not permitted to borrow funds through the money pool arrangement. Duke Energy had money pool-related receivables of $450 million classified as Notes receivable from affiliated companies on the Condensed Balance Sheets as of both December 31, 2012 and 2011.

As of December 31, 2012 and 2011, Duke Energy had an intercompany loan outstanding with Cinergy of $1,590 million and $608 million, respectively, which is classified within Notes receivable from affiliated companies on the Condensed Balance Sheets. The $982 million increase in the intercompany loan during 2012 and the $264 million decrease during 2011 are reflected as Notes receivable from affiliated companies within Net Cash Provided by (Used in) Investing Activities on the Condensed Statements of Cash Flows.

In conjunction with the money pool arrangement and the intercompany loan noted above, Duke Energy recorded interest income of approximately $11 million, $4 million and $7 million in 2012, 2011 and 2010, respectively, which is included in Other Income and Expenses, net on the Condensed Statements of Operations and Comprehensive Income.

Duke Energy also provides funding to and sweeps cash from subsidiaries that do not participate in the money pool. For these subsidiaries, the cash is used in or generated from their operations, capital expenditures, debt payments and other activities. Amounts funded or received are carried as open accounts, as either Investment in consolidated subsidiaries or as Other deferred credits and other liabilities, and do not bear interest. These amounts are included within Net Cash (Used in) Provided by Operating Activities on the Condensed Statements of Cash Flows.

During the years ended December 31, 2012, 2011 and 2010, Duke Energy received equity distributions of $450 million, $299 million and $350 million, respectively, from Duke Energy Carolinas. These amounts are reflected within Net Cash (Used in) Provided by Investing Activities on the Condensed Statements of Cash Flows.

During the years ended December 31, 2012 and 2011, Duke Energy paid advances of $16 million and $15 million, respectively, to Cinergy Corp. for Green Frontier Windpower LLC PTC funding contributions. During the year ended December 31, 2010, Duke Energy forgave a $29 million advance to Cinergy Corp.