Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Duke Energy Carolinas [Member]

Related Party Transactions, Assets and Liabilities

Duke Energy Carolinas
	Balances due to and due from related parties included on the Condensed Consolidated Balance Sheets, which exclude
assets or liabilities associated with accrued pension and other post-retirement benefits and money pool arrangements, are
presented in the following table:
(in millions)		June 30, 2012		December 31, 2011
Current assets
	Receivables	$	―	$	2
	Other	$	95	$	95
Non-current assets
	Other	$	111	$	111
Current liabilities
	Accounts payable	$	(97)	$	(157)
	Taxes Accrued	$	(10)	$	(14)
Non-current liabilities
	Deferred income taxes	$	(4,891)	$	(4,555)
	Other	$	(64)	$	(64)

Related Party Transactions, Pension

	As discussed further in Note ##EBO, Duke Energy Carolinas participates in Duke Energy's qualified pension, non-qualified pension
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:
(in millions)		June 30, 2012		December 31, 2011
Other current liabilities		$	8	$	8
Accrued pension and other post-retirement benefit obligations			232		248
Total allocated accrued pension and other post-retirement benefit obligations		$	240	$	256

Related Party Transactions, Other Revenue and Expense

	Amounts related to transactions with related parties included in the Condensed Consolidated Statements of Operations
and Comprehensive Income are presented in the following table:
		Three Months Ended				Six Months Ended
(in millions)		June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Corporate governance and shared service expenses(a)		$	254	$	251	$	489	$	504
Indemnification coverages(b)		$	6	$	5	$	11	$	10
Rental income and other charged expenses, net(c)		$	(5)	$	(2)	$	(7)	$	(4)
Interest expense on money pool(d)		$	1	$	―	$	1	$	―
(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 Operations and 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 Operations and 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.
(d)	Recorded in Interest Expense on the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note ##DCF for additional information related to money pool.

Duke Energy Ohio [Member]

Related Party Transactions, Assets and Liabilities

Duke Energy Ohio
	Balances due to and due from related parties included in the Condensed Consolidated Balance Sheets, which exclude
assets or liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements, are presented in the following table:
(in millions)		June 30, 2012		December 31, 2011
Current assets
	Receivables	$	7	$	15
	Other	$	98	$	76
Non-current assets
	Other	$	28	$	22
Current liabilities
	Accounts payable	$	(73)	$	(84)
	Taxes Accrued	$	(4)	$	―
Non-current liabilities
	Deferred income taxes	$	(1,882)	$	(1,798)
	Other	$	(34)	$	―

Related Party Transactions, Pension

	As discussed further in Note ##EBO, Duke Energy Ohio participates in Duke Energy’s qualified pension, non-qualified
pension 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:
(in millions)		June 30, 2012		December 31, 2011
Other current liabilities		$	4	$	4
Accrued pension and other post-retirement benefit obligations			160		166
Total allocated accrued pension and other post-retirement benefit obligations		$	164	$	170

Related Party Transactions, Other Revenue and Expense

	Amounts related to transactions with related parties included in the Condensed Consolidated Statements of Operations and
Comprehensive Income are presented in the following table:
		Three Months Ended
(in millions)		June 30, 2012		June 30, 2011
Corporate governance and shared service expenses(a)		$	90	$	95
Indemnification coverages(b)		$	4	$	4
Rental income and other charged expenses, net(c)		$	(1)	$	―
Interest expense on money pool(d)		$	―	$	―
Interest income on money pool(e)		$	―	$	―
CRC interest income(f)		$	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 Operations and 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 Operations and 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)	Recorded in Interest Expense on the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note ##DCF for additional information related to money pool.
(e)	Recorded in Other Income and Expenses, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note ##DCF for additional information related to money pool.
(f)	As discussed in Note ##VIE, 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 Operations and Comprehensive Income.

	Amounts related to transactions with related parties included in the Condensed Consolidated Statements of Operations and
Comprehensive Income are presented in the following table:
		Three Months Ended				Six Months Ended
(in millions)		June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Corporate governance and shared service expenses(a)		$	86	$	91	$	176	$	186
Indemnification coverages(b)		$	3	$	4	$	7	$	8
Rental income and other charged expenses, net(c)		$	―	$	―	$	(1)	$	―
CRC interest income(d)		$	1	$	3	$	3	$	7
(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 Operations and 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 Operations and 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 ##VIE, 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 Operations and Comprehensive Income.

Duke Energy Indiana [Member]

Related Party Transactions, Assets and Liabilities

Duke Energy Indiana
	Balances due to and due from related parties included in the Condensed Consolidated Balance Sheets, which exclude assets or
liabilities associated with accrued pension and other post-retirement benefits, CRC and money pool arrangements, are presented in the following table.
(in millions)		June 30, 2012		December 31, 2011
Current assets
	Receivables	$	16	$	18
	Other	$	7	$	13
Non-current assets
	Other	$	2	$	2
Current liabilities
	Accounts payable	$	(38)	$	(72)
	Taxes accrued	$	―	$	(25)
	Other	$	(8)	$	―
Non-current liabilities
	Deferred income taxes	$	(835)	$	(927)
	Other	$	(22)	$	(22)

Related Party Transactions, Pension

	As discussed further in Note ##EBO, Duke Energy Indiana participates in Duke Energy’s qualified pension, non-qualified pension
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:
(in millions)		June 30, 2012		December 31, 2011
Other current liabilities		$	2	$	2
Accrued pension and other post-retirement benefit obligations			222		231
Total allocated accrued pension and other post-retirement benefit obligations		$	224	$	233

Related Party Transactions, Other Revenue and Expense

	Amounts related to transactions with related parties included in the Condensed Consolidated Statements of Operations and
Comprehensive Income are presented in the following table:
		Three Months Ended				Six Months Ended
(in millions)		June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Corporate governance and shared service expenses(a)		$	98	$	99	$	199	$	206
Indemnification coverages(b)		$	2	$	2	$	4	$	4
Rental income and other charged expenses, net(c)		$	―	$	2	$	(1)	$	3
Interest expense on money pool(d)		$	1	$	―	$	1	$	―
CRC interest income(e)		$	1	$	3	$	3	$	7
(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 Operations and 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 Operations and 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)	Recorded in Interest Expense on the Condensed Consolidated Statements of Operations and Comprehensive Income. See Note ##DCF for additional information related to money pool.
(e)	As discussed in Note ##VIE, 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 Operations and Comprehensive Income.