Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Derivative Positions

The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.



	September 30, 2018
		Duke		Duke	Duke	Duke
	Duke	Energy	Progress	Energy	Energy	Energy
	Energy	Carolinas	Energy	Progress	Florida	Indiana	Piedmont
Electricity (gigawatt-hours)	170	—	—	—	—	170	—
Natural gas (millions of dekatherms)	744	119	167	158	9	1	457



	December 31, 2017
		Duke		Duke	Duke	Duke
	Duke	Energy	Progress	Energy	Energy	Energy
	Energy	Carolinas	Energy	Progress	Florida	Indiana	Piedmont
Electricity (gigawatt-hours)	34	—	—	—	—	34	—
Natural gas (millions of dekatherms)	770	105	183	133	50	2	480

The following table shows notional amounts of outstanding derivatives related to interest rate risk.



	September 30, 2018
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio
Cash flow hedges	$	411	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	1,127		400		500		250		250		27
Total notional amount^(a)	$	1,538	$	400	$	500	$	250	$	250	$	27



	December 31, 2017
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio
Cash flow hedges^(a)	$	660	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	927		400		500		250		250		27
Total notional amount	$	1,587	$	400	$	500	$	250	$	250	$	27


(a)	Duke Energy includes amounts related to consolidated VIEs of $411 million in cash flow hedges and $200 million in undesignated contracts as of September 30, 2018, and $660 million in cash flow hedges as of December 31, 2017.

Location And Fair Value Of Derivatives Recognized in the Condensed Consolidated Balance Sheets

The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.



Derivative Assets	September 30, 2018
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current	$	46	$	2	$	3	$	2	$	1	$	8	$	29	$	4
Noncurrent	1		—		—		—		—		—		—		—
Total Derivative Assets – Commodity Contracts	$	47	$	2	$	3	$	2	$	1	$	8	$	29	$	4
Interest Rate Contracts
Designated as Hedging Instruments
Current	$	6	$	5	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	6		—		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current	1		—		—		—		—		—		—		—
Noncurrent	17		—		—		—		—		—		—		—
Total Derivative Assets – Interest Rate Contracts	$	30	$	5	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Assets	$	77	$	7	$	3	$	2	$	1	$	8	$	29	$	4



Derivative Liabilities	September 30, 2018
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current	$	26	$	14	$	5	$	5	$	—	$	—	$	—	$	7
Noncurrent	177		14		17		8		—		—		—		146
Total Derivative Liabilities – Commodity Contracts	$	203	$	28	$	22	$	13	$	—	$	—	$	—	$	153
Interest Rate Contracts
Designated as Hedging Instruments
Current	$	2	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Not Designated as Hedging Instruments
Current	7		—		6		3		3		1		—		—
Noncurrent	13		—		9		8		2		3		—		—
Total Derivative Liabilities – Interest Rate Contracts	$	22	$	—	$	15	$	11	$	5	$	4	$	—	$	—
Total Derivative Liabilities	$	225	$	28	$	37	$	24	$	5	$	4	$	—	$	153



Derivative Assets	December 31, 2017
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current	$	34	$	2	$	2	$	1	$	1	$	1	$	27	$	2
Noncurrent	1		—		1		1		—		—		—		—
Total Derivative Assets – Commodity Contracts	$	35	$	2	$	3	$	2	$	1	$	1	$	27	$	2
Interest Rate Contracts
Designated as Hedging Instruments
Current	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	15		—		—		—		—		—		—		—
Total Derivative Assets – Interest Rate Contracts	$	16	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Assets	$	51	$	2	$	3	$	2	$	1	$	1	$	27	$	2



Derivative Liabilities	December 31, 2017
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current	$	36	$	6	$	18	$	8	$	10	$	—	$	—	$	11
Noncurrent	146		4		10		4		—		—		—		131
Total Derivative Liabilities – Commodity Contracts	$	182	$	10	$	28	$	12	$	10	$	—	$	—	$	142
Interest Rate Contracts
Designated as Hedging Instruments
Current	$	29	$	25	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	6		—		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current	1		—		1		—		—		1		—		—
Noncurrent	12		—		7		6		2		4		—		—
Total Derivative Liabilities – Interest Rate Contracts	$	48	$	25	$	8	$	6	$	2	$	5	$	—	$	—
Total Derivative Liabilities	$	230	$	35	$	36	$	18	$	12	$	5	$	—	$	142

Offsetting Assets



Derivative Assets	December 31, 2017
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	35	$	2	$	2	$	1	$	1	$	1	$	27	$	2
Gross amounts offset	—		—		—		—		—		—		—		—
Net amounts presented in Current Assets: Other	$	35	$	2	$	2	$	1	$	1	$	1	$	27	$	2
Noncurrent
Gross amounts recognized	$	16	$	—	$	1	$	1	$	—	$	—	$	—	$	—
Gross amounts offset	—		—		—		—		—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	$	16	$	—	$	1	$	1	$	—	$	—	$	—	$	—

The following tables present the line items on the Condensed Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The gross amounts offset in the tables below show the effect of these netting arrangements on financial position, and include collateral posted to offset the net position. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.



Derivative Assets	September 30, 2018
				Duke						Duke			Duke		Duke		Duke
	Duke			Energy			Progress			Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	53		$	7		$	3		$	2		$	1	$	8	$	29	$	4
Gross amounts offset	(4		)	(2		)	(2		)	(2		)	—		—		—		—
Net amounts presented in Current Assets: Other	$	49		$	5		$	1		$	—		$	1	$	8	$	29	$	4
Noncurrent
Gross amounts recognized	$	24		$	—		$	—		$	—		$	—	$	—	$	—	$	—
Gross amounts offset	(1		)	—			—			—			—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	$	23		$	—		$	—		$	—		$	—	$	—	$	—	$	—

Offsetting Liabilities



Derivative Liabilities	September 30, 2018
				Duke						Duke			Duke		Duke		Duke
	Duke			Energy			Progress			Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	35		$	14		$	11		$	8		$	3	$	1	$	—	$	7
Gross amounts offset	(4		)	(2		)	(2		)	(2		)	—		—		—		—
Net amounts presented in Current Liabilities: Other	$	31		$	12		$	9		$	6		$	3	$	1	$	—	$	7
Noncurrent
Gross amounts recognized	$	190		$	14		$	26		$	16		$	2	$	3	$	—	$	146
Gross amounts offset	(1		)	—			(1		)	(1		)	—		—		—		—
Net amounts presented in Other Noncurrent Liabilities: Other	$	189		$	14		$	25		$	15		$	2	$	3	$	—	$	146



Derivative Liabilities	December 31, 2017
				Duke						Duke			Duke		Duke		Duke
	Duke			Energy			Progress			Energy			Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	66		$	31		$	19		$	8		$	10	$	1	$	—	$	11
Gross amounts offset	(3		)	(2		)	(2		)	(2		)	—		—		—		—
Net amounts presented in Current Liabilities: Other	$	63		$	29		$	17		$	6		$	10	$	1	$	—	$	11
Noncurrent
Gross amounts recognized	$	164		$	4		$	17		$	10		$	2	$	4	$	—	$	131
Gross amounts offset	(1		)	—			(1		)	(1		)	—		—		—		—
Net amounts presented in Other Noncurrent Liabilities: Other	$	163		$	4		$	16		$	9		$	2	$	4	$	—	$	131

Derivative Contracts with Contingent Credit Features

The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit-risk-related payment provisions.



	September 30, 2018
			Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida
Aggregate fair value of derivatives in a net liability position	$	48	$	26	$	23	$	22	$	—
Fair value of collateral already posted	—		—		—		—		—
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	48		26		23		22		—



	December 31, 2017
			Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida
Aggregate fair value of derivatives in a net liability position	$	59	$	35	$	25	$	15	$	10
Fair value of collateral already posted	—		—		—		—		—
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	59		35		25		15		10

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details