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Debt and Credit Facilities
 9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Debt And Credit Facilities
DEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions). Refer to the "Available Credit Facilities" section below regarding amounts issued under the Three Year Revolver and the Piedmont Term Loan facilities.
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
Maturity
Interest

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

Issuance Date
Date
Rate

 
Energy

 
(Parent)

 
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

 
—

 
—

 
—

Secured Debt
 
 
 
 
 
 
 
 
 
 
 
 
February 2017(d)
June 2034
4.120
%
 
587

 
—

 
—

 
—

 
—

August 2017(e)
December 2036
4.110
%
 
233

 
—

 
—

 
—

 
—

First Mortgage Bonds
 
 
 
 
 
 
 
 
 
 
 
 
January 2017(f)
January 2020
1.850
%
 
250

 
—

 
—

 
250

 
—

January 2017(f)
January 2027
3.200
%
 
650

 
—

 
—

 
650

 
—

March 2017(g)
June 2046
3.700
%

100


—

 
—

 
—

 
100

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


—

 
300

 
—

 
—

September 2017(h)
September 2047
3.600
%
 
500

 
—

 
500

 
—

 
—

Total issuances
 
 
 
$
5,120

 
$
2,500


$
800

 
$
900


$
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)
Portfolio financing of four Texas and Oklahoma wind facilities. Secured by substantially all of the assets of these wind facilities and nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(e)
Portfolio financing of eight solar facilities located in California, Colorado and New Mexico. Secured by substantially all of the assets of these solar facilities and nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(f)
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.
(g)
Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes.
(h)
Debt issued to repay at maturity a $200 million aggregate principal amount of bonds due November 2017, pay down intercompany short-term debt and for general corporate purposes, including capital expenditures.
(i)    Debt issuance has a floating interest rate.
CURRENT MATURITIES OF LONG-TERM DEBT
The following table shows the significant components of Current Maturities of Long-Term Debt on the Condensed 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

 
September 30, 2017

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

Duke Energy (Parent)
June 2018
 
2.100
%
 
500

First Mortgage Bonds
 
 
 
 
 
Duke Energy Progress
November 2017
 
1.516
%
(b) 
200

Duke Energy Carolinas
January 2018
 
5.250
%
 
400

Duke Energy Carolinas
April 2018
 
5.100
%
 
300

Duke Energy Florida
June 2018
 
5.650
%
 
500

Other(a)
 
 
 
 
335

Current maturities of long-term debt
 
 
 
 
$
2,485


(a)    Includes capital lease obligations, amortizing debt and small bullet maturities.
(b)    Debt issuance has a floating interest rate.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
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 a specified sublimit 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. The table below includes the current borrowing sublimits and available capacity under the Master Credit Facility.
 
September 30, 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

 
$
1,000

 
$
450

 
$
600

 
$
500

Reduction to backstop issuances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper(b)
(1,569
)
 
(404
)
 
(636
)
 
(150
)
 
—

 
(25
)
 
(150
)
 
(204
)
Outstanding letters of credit
(60
)
 
(51
)
 
(4
)
 
(2
)
 
(1
)
 
—

 
—

 
(2
)
Tax-exempt bonds
(81
)
 
—

 
—

 
—

 
—

 
—

 
(81
)
 
—

Coal ash set-aside
(500
)
 
—

 
(250
)
 
(250
)
 
—

 
—

 
—

 
—

Available capacity under the Master Credit Facility
$
5,790


$
2,395


$
460


$
848


$
999


$
425


$
369

 
$
294

(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 on the Condensed 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 September 30, 2017, $270 million has been drawn under the Three Year Revolver. This balance is classified as Long-Term Debt on Duke Energy's Condensed 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 September 30, 2017, the entire $250 million has been drawn under the Piedmont Term Loan. This balance is classified as Long-Term Debt on Piedmont's Condensed Consolidated Balance Sheets. The terms and conditions of the Piedmont Term Loan are generally consistent with those governing Duke Energy's Master Credit Facility.