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Business Segments
 9 Months Ended
Sep. 30, 2013
Business Segments [Abstract]  
Business Segments

3. BUSINESS SEGMENTS

Management evaluates segment performance based on Segment Income, which is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment Income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in Segment Income.

Operating segments for the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance at each of the Duke Energy Registrants.

Products and services are sold between affiliate companies and between reportable segments at cost. Segment assets as presented in the tables that follow exclude all intercompany assets.

DUKE ENERGY

Duke Energy has three reportable operating segments: USFE&G, Commercial Power and International Energy.

USFE&G generates, transmits, distributes and sells electricity in portions of North Carolina, South Carolina, Florida, Indiana, and Kentucky. USFE&G also transmits and distributes electricity in portions of Ohio. Additionally, USFE&G transports and sells natural gas in portions of Ohio and Kentucky. It conducts operations primarily through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, certain regulated portions of Duke Energy Ohio, and Duke Energy Indiana. Segment information for USFE&G includes the results of the regulated operations of Duke Energy Progress and Duke Energy Florida beginning July 2, 2012.

Commercial Power operates and manages power plants owned by Duke Energy Ohio and engages in the wholesale marketing and procurement of electricity, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail). Duke Energy Retail is certified by the PUCO as a Competitive Retail Electric Service provider. Through Duke Energy Generation Services, Inc. and its affiliates (DEGS), Commercial Power engages in the development, construction and operation of renewable energy and commercial transmission projects in the U.S.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electricity and natural gas outside the U.S. It conducts operations primarily through Duke Energy International, LLC and its affiliates. Its activities principally target power generation in Latin America. Additionally, International Energy owns a 25 percent interest in National Methanol Company (NMC). Located in Saudi Arabia, NMC is a large regional producer of methanol and methyl tertiary butyl ether (MTBE).

The remainder of Duke Energy's operations is presented as Other. While it is not considered an operating segment, Other primarily includes unallocated corporate costs, which primarily consist of interest expense on corporate debt instruments, costs to achieve mergers and divestitures, and costs associated with certain corporate severance programs. It also includes Bison Insurance Company Limited (Bison), a wholly owned, captive insurance subsidiary, Duke Energy's 50 percent interest in DukeNet and related telecommunications businesses, and Duke Energy's 60 percent interest in Duke Energy Trading and Marketing, LLC.

                    
  Three Months Ended September 30, 2013
(in millions)USFE&G International Energy Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues(a)(b)(c)$ 5,768 $ 370 $ 541 $ 6,679 $ 30 $ ― $ 6,709
Intersegment revenues  18   ―   9   27   24   (51)   ―
 Total revenues$ 5,786 $ 370 $ 550 $ 6,706 $ 54 $ (51) $ 6,709
Segment income(a)(b)(c)(d)$ 923 $ 116 $ 27 $ 1,066 $ (76) $ ― $ 990
Add back noncontrolling interests component                    4
Income from discontinued operations, net of tax                    14
Net income                  $ 1,008
Segment assets as of September 30, 2013$ 99,269 $ 5,669 $ 6,852 $ 111,790 $ 2,658 $ 142 $ 114,590
                      
(a)In May 2013, Duke Energy Ohio implemented revised customer rates approved by the PUCO. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(b)In June 2013, Duke Energy Progress implemented revised customer rates approved by the NCUC. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(c)In September 2013, Duke Energy Carolinas implemented revised customer rates approved by the NCUC and the PSCSC. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(d)Other includes after-tax costs to achieve the merger with Progress Energy of $54 million. See Note 2 for additional information about the merger.
  

                      
  Three Months Ended September 30, 2012
(in millions)USFE&G International Energy Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues$ 5,830 $ 382 $ 508 $ 6,720 $ 2 $ ― $ 6,722
Intersegment revenues  12   ―   17   29   18   (47)   ―
 Total revenues$ 5,842 $ 382 $ 525 $ 6,749 $ 20 $ (47) $ 6,722
Segment income(a)(b)$ 790 $ 103 $ 12 $ 905 $ (315) $ ― $ 590
Add back noncontrolling interests component                    4
Income from discontinued operations, net of tax                    4
Net income                  $ 598
                      
(a)USFE&G recorded an impairment related to the Edwardsport Integrated Gasification Combined Cycle (IGCC) project. See Note 4 for additional information on the Edwardsport impairment.
(b)Other includes after-tax costs to achieve the merger with Progress Energy of $293 million. See Note 2 for additional information about the merger.
                      

                    
  Nine Months Ended September 30, 2013
(in millions)USFE&G International Energy Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues(a)(b)(c)$ 15,731 $ 1,168 $ 1,527 $ 18,426 $ 60 $ ― $ 18,486
Intersegment revenues  35   ―   32   67   65   (132)   ―
 Total revenues$ 15,766 $ 1,168 $ 1,559 $ 18,493 $ 125 $ (132) $ 18,486
Segment income(a)(b)(c)(d)(e)(f)$ 1,932 $ 300 $ 26 $ 2,258 $ (292) $ ― $ 1,966
Add back noncontrolling interests component                    7
Income from discontinued operations, net of tax                    11
Net income                  $ 1,984
                      
(a)In May 2013, Duke Energy Ohio implemented revised customer rates approved by the PUCO. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(b)In June 2013, Duke Energy Progress implemented revised customer rates approved by the NCUC. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(c)In September 2013, Duke Energy Carolinas implemented revised customer rates approved by the NCUC and the PSCSC. This increase impacts USFE&G. See Note 4 for additional information about the revised customer rates.
(d)USFE&G recorded an impairment charge related to Duke Energy Florida's Crystal River Unit 3. See Note 4 for additional information about the Crystal River Unit 3 impairment.
(e)USFE&G recorded an impairment charge related to Duke Energy Progress' Shearon Harris Nuclear Station (Harris) site. USFE&G also recorded an impairment charge related to Duke Energy Florida's proposed Levy Nuclear Station (Levy). See Note 4 for additional information about the Harris site and Levy site impairments.
(f)Other includes after-tax costs to achieve the merger with Progress Energy of $139 million. See Note 2 for additional information about the merger.
                      

                      
  Nine Months Ended September 30, 2012
(in millions)USFE&G International Energy Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues$ 11,178 $ 1,181 $ 1,560 $ 13,919 $ 10 $ ― $ 13,929
Intersegment revenues  29   ―   47   76   41   (117)   ―
 Total revenues$ 11,207 $ 1,181 $ 1,607 $ 13,995 $ 51 $ (117) $ 13,929
Segment income(a)(b)$ 1,263 $ 350 $ 71 $ 1,684 $ (356) $ ― $ 1,328
Add back noncontrolling interests component                    12
Income from discontinued operations, net of tax                    5
Net income                  $ 1,345
                      
(a)USFE&G recorded an impairment charge related to Duke Energy Indiana's IGCC project. USFE&G also recorded the reversal of expenses of $60 million related to a prior year Voluntary Opportunity Plan in accordance with Duke Energy Carolinas' 2011 rate case. See Note 4 for additional information about the impairment charges.
(b)Other includes after-tax costs to achieve the merger with Progress Energy of $306 million. See Note 2 for additional information about the merger.
                      

DUKE ENERGY OHIO

Duke Energy Ohio has two reportable operating segments, Franchised Electric and Gas and Commercial Power.

Franchised Electric and Gas transmits and distributes electricity in portions of Ohio and generates, transmits, distributes and sells electricity in portions of Kentucky. Franchised Electric and Gas also transports and sells natural gas in portions of Ohio and Kentucky.

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electricity, fuel, and emission allowances related to these plants, as well as other contractual positions. Duke Energy Ohio's Commercial Power reportable operating segment does not include the operations of DEGS or Duke Energy Retail, which are included in the Commercial Power reportable operating segment at Duke Energy.

The remainder of Duke Energy Ohio's operations is presented as Other. While not considered a reportable segment for Duke Energy Ohio, Other consists of costs to achieve the merger between Duke Energy and Progress Energy, certain corporate severance programs, and certain costs for use of corporate assets allocated to each company. See Note 17 for additional information. All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S.

                  
  Three Months Ended September 30, 2013
(in millions)Franchised Electric and Gas Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues(a)$ 421 $ 398 $ 819 $ ― $ ― $ 819
Intersegment revenues  ―   6   6   ―   (6)   ―
 Total revenues$ 421 $ 404 $ 825 $ ― $ (6) $ 819
Segment income / Consolidated net income(a)$ 42 $ 30 $ 72 $ (13) $ ― $ 59
Segment assets as of September 30, 2013$ 6,631 $ 4,088 $ 10,719 $ 103 $ (165) $ 10,657
                   
(a)In May 2013, Duke Energy Ohio implemented revised customer rates approved by the PUCO. This increase impacts FE&G. See Note 4 for additional information about the revised customer rates.
                   
  Three Months Ended September 30, 2012
(in millions)Franchised Electric and Gas Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues$ 431 $ 326 $ 757 $ ― $ ― $ 757
Intersegment revenues  ―   15   15   ―   (15)   ―
 Total revenues$ 431 $ 341 $ 772 $ ― $ (15) $ 757
Segment income (loss) / Consolidated net income$ 49 $ (17) $ 32 $ (18) $ ― $ 14
                   
  Nine Months Ended September 30, 2013
(in millions)Franchised Electric and Gas Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues(a)$ 1,317 $ 1,060 $ 2,377 $ ― $ ― $ 2,377
Intersegment revenues  ―   25   25   ―   (25)   ―
 Total revenues$ 1,317 $ 1,085 $ 2,402 $ ― $ (25) $ 2,377
Segment income (loss) / Consolidated net income(a)$ 122 $ (3) $ 119 $ (23) $ ― $ 96
                   
(a)In May 2013, Duke Energy Ohio implemented revised customer rates approved by the PUCO. This increase impacts FE&G. See Note 4 for additional information about the revised customer rates.
                   
  Nine Months Ended September 30, 2012
(in millions)Franchised Electric and Gas Commercial Power Total Reportable Segments Other Eliminations Consolidated
Unaffiliated revenues$ 1,291 $ 1,095 $ 2,386 $ ― $ ― $ 2,386
Intersegment revenues  ―   42   42   ―   (42)   ―
 Total revenues$ 1,291 $ 1,137 $ 2,428 $ ― $ (42) $ 2,386
Segment income / Consolidated net income$ 113 $ 44 $ 157 $ (24) $ ― $ 133
                   

DUKE ENERGY CAROLINAS, PROGRESS ENERGY, DUKE ENERGY PROGRESS, DUKE ENERGY FLORIDA AND DUKE ENERGY INDIANA

Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana each have one reportable operating segment, Franchised Electric, which generates, transmits, distributes and sells electricity. The remainder of each company's operations is classified as Other. While not considered a reportable segment for any of these companies, Other consists of costs to achieve the merger between Duke Energy and Progress Energy, certain corporate severance programs, and certain costs for use of corporate assets allocated to each company. See Note 17 for additional information. Other for Progress Energy also includes interest expense on corporate debt instruments. The following table summarizes the net loss for Other at each of these registrants.

              
   Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2013 2012 2013 2012
Duke Energy Carolinas $ (26) $ (119) $ (69) $ (137)
Progress Energy   (72)   (181)   (205)   (278)
Duke Energy Progress   (20)   (109)   (40)   (119)
Duke Energy Florida   (6)   (23)   (18)   (30)
Duke Energy Indiana   (5)   (14)   (13)   (19)
              

The Franchised Electric operating segments includes substantially all of Duke Energy Carolinas', Progress Energy's, Duke Energy Progress', Duke Energy Florida's and Duke Energy Indiana's assets.