17. Related Party Transactions

Duke Energy Carolinas

Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:

Assets/(Liabilities)


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	50		$	51
Non-current assets^(c)		111			111
Current liabilities^(d)		(121	)		(171	)
Non-current liabilities^(e)		(67	)		(64	)
Net deferred tax liabilities^(f)		(4,682	)		(4,509	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $19 million is classified as Receivables and $31 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $2 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012, is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $157 million is classified as Accounts Payable and $14 million is classified as Accrued Taxes on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(4,724) million is classified as Deferred income taxes and $42 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(4,555) million is classified as Deferred income taxes and $46 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Carolinas participates in Duke Energy's qualified pension plan, nonqualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Carolinas has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
	(in millions)
Other current liabilities	$	8	$	8
Accrued pension and other post-retirement benefit costs		241		248

Total allocated accrued pension and other post-retirement benefit obligations	$	249	$	256

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	235		$	253
Indemnification coverages^(b)		5			5
Rental income and other charged expenses, net^(c)		(2	)		(2	)

(a)

Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Carolinas records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

As discussed further in Note 6, Duke Energy Carolinas participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Ohio

Duke Energy Ohio engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	63		$	44
Non-current assets^(c)		30			22
Current liabilities^(d)		(130	)		(84	)
Net deferred tax liabilities^(e)		(1,748	)		(1,751	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $14 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $15 million is classified as Receivables and $29 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balances at March 31, 2012 and December 31, 2011 are classified as Accounts payable on the Condensed Consolidated Balance Sheets.

(e)

Of the balance at March 31, 2012, $(1,787) million is classified as Deferred income taxes and $39 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(1,798) million is classified as Deferred income taxes and $47 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Ohio participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Ohio has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	4	$	4
Accrued pension and other post-retirement benefit costs		163		166

Total allocated accrued pension and other post-retirement benefit obligations	$	167	$	170

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	90		$	95
Indemnification coverages^(b)		4			4
Rental income and other charged expenses, net^(c)		(1	)		—
CRC interest income^(d)		2			4

(a)

Duke Energy Ohio is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Ohio incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Ohio records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Ohio to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Ohio participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was $1 million for the three months ended March 31, 2012 and insignificant for the three months ended March 31, 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Commercial Asset Management (DECAM) is a non-regulated, direct subsidiary of Duke Energy Ohio. DECAM conducts business activities including the execution of commodity transactions and executing third party vendor and supply contracts as well as service contracts for certain of Duke Energy's non-regulated entities. The commodity contracts that DECAM enters either do not qualify as hedges or have not been designated as hedges (hereinafter referred to as undersigned contracts), thus the mark-to-market impacts of these contracts are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income. In addition, equal and offsetting mark-to-market impacts of intercompany contracts with non regulated entities are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income representing the pass through of the economics of the original contracts to non-regulated entities in accordance with contractual arrangements between Duke Energy Ohio and non-regulated entities. See Note 8 for additional information. Because it is not a rated entity, DECAM receives its credit support from Duke Energy or its non-regulated subsidiaries and not the regulated utility operations of Duke Energy Ohio. DECAM meets its funding needs through an intercompany loan agreement from a subsidiary of Duke Energy. The intercompany loan agreement was executed in February 2011. An additional intercompany loan agreement was executed in October 2011 so that DECAM can also loan money to the subsidiary of Duke Energy. DECAM had no outstanding intercompany loan payable with the subsidiary of Duke Energy as of March 31, 2012 or December 31, 2011. DECAM had a $276 million and a $90 million intercompany loan receivable with the subsidiary of Duke Energy as of March 31, 2012 and December 31, 2011, respectively.

Duke Energy Ohio paid a $285 million dividend to its parent, Cinergy, in March 2011. In January 2012, Duke Energy Ohio recorded a non-cash equity transfer of $28 million related to the sale of Vermillion to Duke Energy Indiana. See Note 2 for further discussion.

Duke Energy Indiana

Duke Energy Indiana engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	70		$	18
Non-current assets^(c)		2			2
Current liabilities^(d)		(80	)		(97	)
Non-current liabilities^(e)		(22	)		(22	)
Net deferred tax liabilities^(f)		(949	)		(914	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)	Of the balance at March 31, 2012, $59 million is classified as Receivables and $11 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December 31, 2011, is classified as Receivables on the Condensed Consolidated Balance Sheets

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012 is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(72) million is classified as Accounts payable and $(25) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(974) million is classified as Deferred income taxes and $25 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(927) million is classified as Deferred income taxes and $13 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Indiana participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Indiana has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	2	$	2
Accrued pension and other post-retirement benefit costs		228		231

Total allocated accrued pension and other post-retirement benefit obligations	$	230	$	233

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	101		$	107
Indemnification coverages^(b)		2			2
Rental income and other charged expenses, net^(c)		(1	)		1
CRC interest income^(d)		2			4

(a)

Duke Energy Indiana is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Indiana incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Indiana records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Indiana to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Indiana participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

In January 2012, Duke Energy Indiana recorded a non-cash equity transfer of $26 million on the purchase of Vermillion from an indirect wholly owned subsidiary of Duke Energy. See Note 2 for further discussion.

Related Party Transactions

17. Related Party Transactions

Duke Energy Carolinas

Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:

Assets/(Liabilities)


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	50		$	51
Non-current assets^(c)		111			111
Current liabilities^(d)		(121	)		(171	)
Non-current liabilities^(e)		(67	)		(64	)
Net deferred tax liabilities^(f)		(4,682	)		(4,509	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $19 million is classified as Receivables and $31 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $2 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012, is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $157 million is classified as Accounts Payable and $14 million is classified as Accrued Taxes on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(4,724) million is classified as Deferred income taxes and $42 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(4,555) million is classified as Deferred income taxes and $46 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Carolinas participates in Duke Energy's qualified pension plan, nonqualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Carolinas has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
	(in millions)
Other current liabilities	$	8	$	8
Accrued pension and other post-retirement benefit costs		241		248

Total allocated accrued pension and other post-retirement benefit obligations	$	249	$	256

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	235		$	253
Indemnification coverages^(b)		5			5
Rental income and other charged expenses, net^(c)		(2	)		(2	)

(a)

Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Carolinas records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

As discussed further in Note 6, Duke Energy Carolinas participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Ohio

Duke Energy Ohio engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	63		$	44
Non-current assets^(c)		30			22
Current liabilities^(d)		(130	)		(84	)
Net deferred tax liabilities^(e)		(1,748	)		(1,751	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $14 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $15 million is classified as Receivables and $29 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balances at March 31, 2012 and December 31, 2011 are classified as Accounts payable on the Condensed Consolidated Balance Sheets.

(e)

Of the balance at March 31, 2012, $(1,787) million is classified as Deferred income taxes and $39 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(1,798) million is classified as Deferred income taxes and $47 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Ohio participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Ohio has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	4	$	4
Accrued pension and other post-retirement benefit costs		163		166

Total allocated accrued pension and other post-retirement benefit obligations	$	167	$	170

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	90		$	95
Indemnification coverages^(b)		4			4
Rental income and other charged expenses, net^(c)		(1	)		—
CRC interest income^(d)		2			4

(a)

Duke Energy Ohio is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Ohio incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Ohio records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Ohio to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Ohio participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was $1 million for the three months ended March 31, 2012 and insignificant for the three months ended March 31, 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Commercial Asset Management (DECAM) is a non-regulated, direct subsidiary of Duke Energy Ohio. DECAM conducts business activities including the execution of commodity transactions and executing third party vendor and supply contracts as well as service contracts for certain of Duke Energy's non-regulated entities. The commodity contracts that DECAM enters either do not qualify as hedges or have not been designated as hedges (hereinafter referred to as undersigned contracts), thus the mark-to-market impacts of these contracts are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income. In addition, equal and offsetting mark-to-market impacts of intercompany contracts with non regulated entities are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income representing the pass through of the economics of the original contracts to non-regulated entities in accordance with contractual arrangements between Duke Energy Ohio and non-regulated entities. See Note 8 for additional information. Because it is not a rated entity, DECAM receives its credit support from Duke Energy or its non-regulated subsidiaries and not the regulated utility operations of Duke Energy Ohio. DECAM meets its funding needs through an intercompany loan agreement from a subsidiary of Duke Energy. The intercompany loan agreement was executed in February 2011. An additional intercompany loan agreement was executed in October 2011 so that DECAM can also loan money to the subsidiary of Duke Energy. DECAM had no outstanding intercompany loan payable with the subsidiary of Duke Energy as of March 31, 2012 or December 31, 2011. DECAM had a $276 million and a $90 million intercompany loan receivable with the subsidiary of Duke Energy as of March 31, 2012 and December 31, 2011, respectively.

Duke Energy Ohio paid a $285 million dividend to its parent, Cinergy, in March 2011. In January 2012, Duke Energy Ohio recorded a non-cash equity transfer of $28 million related to the sale of Vermillion to Duke Energy Indiana. See Note 2 for further discussion.

Duke Energy Indiana

Duke Energy Indiana engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	70		$	18
Non-current assets^(c)		2			2
Current liabilities^(d)		(80	)		(97	)
Non-current liabilities^(e)		(22	)		(22	)
Net deferred tax liabilities^(f)		(949	)		(914	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)	Of the balance at March 31, 2012, $59 million is classified as Receivables and $11 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December 31, 2011, is classified as Receivables on the Condensed Consolidated Balance Sheets

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012 is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(72) million is classified as Accounts payable and $(25) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(974) million is classified as Deferred income taxes and $25 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(927) million is classified as Deferred income taxes and $13 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Indiana participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Indiana has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	2	$	2
Accrued pension and other post-retirement benefit costs		228		231

Total allocated accrued pension and other post-retirement benefit obligations	$	230	$	233

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	101		$	107
Indemnification coverages^(b)		2			2
Rental income and other charged expenses, net^(c)		(1	)		1
CRC interest income^(d)		2			4

(a)

Duke Energy Indiana is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Indiana incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Indiana records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Indiana to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Indiana participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

In January 2012, Duke Energy Indiana recorded a non-cash equity transfer of $26 million on the purchase of Vermillion from an indirect wholly owned subsidiary of Duke Energy. See Note 2 for further discussion.

Related Party Transactions

17. Related Party Transactions

Duke Energy Carolinas

Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:

Assets/(Liabilities)


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	50		$	51
Non-current assets^(c)		111			111
Current liabilities^(d)		(121	)		(171	)
Non-current liabilities^(e)		(67	)		(64	)
Net deferred tax liabilities^(f)		(4,682	)		(4,509	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $19 million is classified as Receivables and $31 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $2 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012, is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $157 million is classified as Accounts Payable and $14 million is classified as Accrued Taxes on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(4,724) million is classified as Deferred income taxes and $42 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(4,555) million is classified as Deferred income taxes and $46 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Carolinas participates in Duke Energy's qualified pension plan, nonqualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Carolinas has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
	(in millions)
Other current liabilities	$	8	$	8
Accrued pension and other post-retirement benefit costs		241		248

Total allocated accrued pension and other post-retirement benefit obligations	$	249	$	256

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	235		$	253
Indemnification coverages^(b)		5			5
Rental income and other charged expenses, net^(c)		(2	)		(2	)

(a)

Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Carolinas records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

As discussed further in Note 6, Duke Energy Carolinas participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Ohio

Duke Energy Ohio engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	63		$	44
Non-current assets^(c)		30			22
Current liabilities^(d)		(130	)		(84	)
Net deferred tax liabilities^(e)		(1,748	)		(1,751	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)

Of the balance at March 31, 2012, $14 million is classified as Receivables and $49 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $15 million is classified as Receivables and $29 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balances at March 31, 2012 and December 31, 2011 are classified as Accounts payable on the Condensed Consolidated Balance Sheets.

(e)

Of the balance at March 31, 2012, $(1,787) million is classified as Deferred income taxes and $39 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(1,798) million is classified as Deferred income taxes and $47 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Ohio participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Ohio has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	4	$	4
Accrued pension and other post-retirement benefit costs		163		166

Total allocated accrued pension and other post-retirement benefit obligations	$	167	$	170

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	90		$	95
Indemnification coverages^(b)		4			4
Rental income and other charged expenses, net^(c)		(1	)		—
CRC interest income^(d)		2			4

(a)

Duke Energy Ohio is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Ohio incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Ohio records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Ohio to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Ohio participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was $1 million for the three months ended March 31, 2012 and insignificant for the three months ended March 31, 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

Duke Energy Commercial Asset Management (DECAM) is a non-regulated, direct subsidiary of Duke Energy Ohio. DECAM conducts business activities including the execution of commodity transactions and executing third party vendor and supply contracts as well as service contracts for certain of Duke Energy's non-regulated entities. The commodity contracts that DECAM enters either do not qualify as hedges or have not been designated as hedges (hereinafter referred to as undersigned contracts), thus the mark-to-market impacts of these contracts are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income. In addition, equal and offsetting mark-to-market impacts of intercompany contracts with non regulated entities are reflected in Duke Energy Ohio's Condensed Consolidated Statements of Comprehensive Income representing the pass through of the economics of the original contracts to non-regulated entities in accordance with contractual arrangements between Duke Energy Ohio and non-regulated entities. See Note 8 for additional information. Because it is not a rated entity, DECAM receives its credit support from Duke Energy or its non-regulated subsidiaries and not the regulated utility operations of Duke Energy Ohio. DECAM meets its funding needs through an intercompany loan agreement from a subsidiary of Duke Energy. The intercompany loan agreement was executed in February 2011. An additional intercompany loan agreement was executed in October 2011 so that DECAM can also loan money to the subsidiary of Duke Energy. DECAM had no outstanding intercompany loan payable with the subsidiary of Duke Energy as of March 31, 2012 or December 31, 2011. DECAM had a $276 million and a $90 million intercompany loan receivable with the subsidiary of Duke Energy as of March 31, 2012 and December 31, 2011, respectively.

Duke Energy Ohio paid a $285 million dividend to its parent, Cinergy, in March 2011. In January 2012, Duke Energy Ohio recorded a non-cash equity transfer of $28 million related to the sale of Vermillion to Duke Energy Indiana. See Note 2 for further discussion.

Duke Energy Indiana

Duke Energy Indiana engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 are as follows:


	March 31, 2012^(a)			December 31, 2011^(a)
	(in millions)
Current assets^(b)	$	70		$	18
Non-current assets^(c)		2			2
Current liabilities^(d)		(80	)		(97	)
Non-current liabilities^(e)		(22	)		(22	)
Net deferred tax liabilities^(f)		(949	)		(914	)

(a)	Balances exclude assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements as discussed below.

(b)	Of the balance at March 31, 2012, $59 million is classified as Receivables and $11 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December 31, 2011, is classified as Receivables on the Condensed Consolidated Balance Sheets

(c)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

(d)	The balance at March 31, 2012 is classified as Accounts payable on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(72) million is classified as Accounts payable and $(25) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets.

(e)	The balances at March 31, 2012 and December 31, 2011 are classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.

(f)

Of the balance at March 31, 2012, $(974) million is classified as Deferred income taxes and $25 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December 31, 2011, $(927) million is classified as Deferred income taxes and $13 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets.

As discussed further in Note 14, Duke Energy Indiana participates in Duke Energy's qualified pension plan, non-qualified pension plan and other post-retirement benefit plans and is allocated its proportionate share of expenses associated with these plans. Additionally, Duke Energy Indiana has been allocated accrued pension and other post-retirement benefit obligations as shown in the following table:


	March 31, 2012		December 31, 2011
			(in millions)
Other current liabilities	$	2	$	2
Accrued pension and other post-retirement benefit costs		228		231

Total allocated accrued pension and other post-retirement benefit obligations	$	230	$	233

Other Related Party Amounts


	Three months ended
	March 31, 2012			March 31, 2011
	(in millions)
Corporate governance and shared service expenses^(a)	$	101		$	107
Indemnification coverages^(b)		2			2
Rental income and other charged expenses, net^(c)		(1	)		1
CRC interest income^(d)		2			4

(a)

Duke Energy Indiana is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. These amounts are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(b)

Duke Energy Indiana incurs expenses related to certain indemnification coverages through Bison, Duke Energy's wholly-owned captive insurance subsidiary. These expenses are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Comprehensive Income.

(c)	Duke Energy Indiana records income associated with the rental of office space to a consolidated affiliate of Duke Energy, as well as its proportionate share of certain charged expenses from affiliates of Duke Energy.

(d)

As discussed in Note 11, certain trade receivables have been sold by Duke Energy Indiana to CRC, an unconsolidated entity formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price. The interest income associated with the subordinated note is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income.

As discussed further in Note 6, Duke Energy Indiana participates in a money pool arrangement with Duke Energy and other Duke Energy subsidiaries. Interest income associated with money pool activity, which is recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011. Interest expense associated with money pool activity, which is recorded in Interest Expense on the Condensed Consolidated Statements of Comprehensive Income, was insignificant for each of the three months ended March 31, 2012 and 2011.

In January 2012, Duke Energy Indiana recorded a non-cash equity transfer of $26 million on the purchase of Vermillion from an indirect wholly owned subsidiary of Duke Energy. See Note 2 for further discussion.