Debt and Credit Facilities

9 Months Ended

Sep. 30, 2013

Debt And Credit Facilities [Abstract]

Debt And Credit Facilities

6. DEBT AND CREDIT FACILITIES

SUMMARY OF SIGNIFICANT DEBT ISSUANCES

The following table summarizes the Duke Energy Registrants' significantdebt issuances since December 31, 2012 (in millions).

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Progress

Duke Energy Ohio

Duke Energy Indiana

Duke Energy

Unsecured Debt

January 2013(a)

January 2073

5.125

%

$

500

$

―

$

―

$

―

$

500

June 2013(b)

June 2018

2.100

%

500

―

―

―

500

August 2013(c)(d)

August 2023

11.000

%

―

―

―

―

220

October 2013(e)

October 2023

3.950

%

400

―

―

―

400

Secured Debt

February 2013(f)(g)

December 2030

2.043

%

―

―

―

―

203

February 2013(f)

June 2037

4.740

%

―

―

―

―

220

April 2013(h)

April 2026

5.456

%

―

―

―

―

230

First Mortgage Bonds

March 2013(i)

March 2043

4.100

%

―

500

―

―

500

June 2013(j)

June 2041

4.000

%

―

48

―

―

48

July 2013(k)

July 2043

4.900

%

―

―

―

350

350

July 2013(k)(l)

July 2016

0.619

%

―

―

―

150

150

September 2013(m)

September 2023

3.800

%

―

―

300

―

300

September 2013(m)(n)

March 2015

0.400

%

―

―

150

―

150

Total issuances

$

1,400

$

548

$

450

$

500

$

3,771

(a)

Callable after January 2018 at par. Proceeds from the issuance were used to redeem the $300 million 7.10% Cumulative Quarterly Income Preferred Securities (QUIPS). The securities were redeemed at par plus accrued and unpaid distributions, payable upon presentation on the redemption date. The remaining net proceeds were used to repay a portion of outstanding commercial paper and for general corporate purposes. See Note 11 for additional information about the QUIPS.

(b)

Proceeds from the issuance were used to repay $250 million of current maturities. The remaining net proceeds were used for general corporate purposes, including the repayment of outstanding commercial paper.

(c)

Proceeds from the issuance were used to repay $200 million of current maturities. The maturity date included above applies to half of the instrument. The remaining half matures in August 2018.

(d)

The debt is floating rate based on a consumer price index and an overnight funds rate in Brazil. The debt is denominated in Brazilian Real.

(e)

Proceeds from the issuance were used to repay commercial paper as well as for general corporate purposes.

(f)

Represents the conversion of construction loans related to a renewable energy project issued in December 2012 to term loans. No cash proceeds were received in conjunction with the conversion. The term loans have varying maturity dates. The maturity date presented represents the latest date for all components of the respective loans.

(g)

The debt is floating rate. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 95 percent of the loans.

(h)

Represents primarily the conversion of a $190 million bridge loan issued in conjunction with the acquisition of Ibener in December 2012. Duke Energy received incremental proceeds of $40 million upon conversion of the bridge loan. The debt is floating rate and is denominated in U.S. dollars. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 75 percent of the loan.

(i)

Proceeds from the issuance were used to repay notes payable to affiliated companies as well as for general corporate purposes.

(j)

Callable after June 2023 at par. Proceeds from the issuance were used to redeem $48 million of First Mortgage Bonds with a higher interest rate.

(k)

Proceeds from the issuances were used to repay $400 million of current maturities.

(l)

The debt is floating rate based on 3-month London Interbank Offered Rate (LIBOR) and a fixed spread of 35 basis points.

(m)

Proceeds from the issuances were used for general corporate purposes including the repayment of short-term notes payable, a portion of which was incurred to fund the retirement of $250 million of first mortgage bonds that matured in the first half of 2013.

(n)

The debt is floating rate based on 3-month LIBOR plus a fixed spread of 14 basis points.

CURRENT MATURITIES OF LONG-TERM DEBT

The following table shows the significant components ofCurrent maturities of long-term debt on the Duke Energy Registrants' respective Condensed Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with a combination of cash, future cash from operations and additional commercial paper and long-term borrowings.

(in millions)	Maturity Date	Interest Rate		September 30, 2013
Unsecured Debt
Duke Energy (Parent)	February 2014	6.300	%	$	750
Progress Energy (Parent)	March 2014	6.050	%		300
Duke Energy (Parent)	September 2014	3.950	%		500
First Mortgage Bonds
Duke Energy Carolinas	November 2013	5.750	%		400
Other					357
Current maturities of long-term debt				$	2,307

AVAILABLE CREDIT FACILITIES

Duke Energy has a five-year master credit facility. The credit facility has a capacity of $6 billion through November 2017. The Duke Energy Registrants each have borrowing capacity under the master credit facility up to specified sublimits 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. See the table below for the current borrowing sublimits for each of the borrowers as of September 30,2013. 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. Borrowing sublimits for the Subsidiary Registrants are also reduced for certain amounts outstanding under the money pool arrangement.

		September 30, 2013
(in millions)		Duke Energy (Parent)		Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana			Duke Energy
Facility size(a)		$	1,750	$	1,250	$	750	$	750	$	750	$	750	$	6,000
Reduction to backstop issuances
Notes payable and commercial paper(b)			(256)		(300)		(244)		―		(29)		(150)		(979)
Outstanding letters of credit			(57)		(4)		(2)		(1)		―		―		(64)
Tax-exempt bonds			―		(75)		―		―		(84)		(81)		(240)
Available capacity		$	1,437	$	871	$	504	$	749	$	637	$	519	$	4,717
(a)	Represents the sublimit of each borrower at September 30, 2013.
(b)	Duke Energy issued $450 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas and Duke Energy Indiana. The balances are classified as long-term borrowings within Long-term Debt in Duke Energy Carolina’s and Duke Energy Indiana’s Condensed Consolidated Balance Sheets.

		September 30, 2013
(in millions)		Duke Energy (Parent)		Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana			Duke Energy
Facility size(a)		$	1,750	$	1,250	$	750	$	750	$	750	$	750	$	6,000
Reduction to backstop issuances
Notes payable and commercial paper(b)			(256)		(300)		(244)		―		(29)		(150)		(979)
Outstanding letters of credit			(57)		(4)		(2)		(1)		―		―		(64)
Tax-exempt bonds			―		(75)		―		―		(84)		(81)		(240)
Available capacity		$	1,437	$	871	$	504	$	749	$	637	$	519	$	4,717
(a)	Represents the sublimit of each borrower at September 30, 2013.
(b)	Duke Energy issued $450 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas and Duke Energy Indiana. The balances are classified as long-term borrowings within Long-term Debt in Duke Energy Carolina’s and Duke Energy Indiana’s Condensed Consolidated Balance Sheets.

(in millions)	Maturity Date	Interest Rate		September 30, 2013
Unsecured Debt
Duke Energy (Parent)	February 2014	6.300	%	$	750
Progress Energy (Parent)	March 2014	6.050	%		300
Duke Energy (Parent)	September 2014	3.950	%		500
First Mortgage Bonds
Duke Energy Carolinas	November 2013	5.750	%		400
Other					357
Current maturities of long-term debt				$	2,307

Issuance Date

Maturity Date

Interest Rate

Duke Energy (Parent)

Duke Energy Progress

Duke Energy Ohio

Duke Energy Indiana

Duke Energy

Unsecured Debt

January 2013(a)

January 2073

5.125

%

$

500

$

―

$

―

$

―

$

500

June 2013(b)

June 2018

2.100

%

500

―

―

―

500

August 2013(c)(d)

August 2023

11.000

%

―

―

―

―

220

October 2013(e)

October 2023

3.950

%

400

―

―

―

400

Secured Debt

February 2013(f)(g)

December 2030

2.043

%

―

―

―

―

203

February 2013(f)

June 2037

4.740

%

―

―

―

―

220

April 2013(h)

April 2026

5.456

%

―

―

―

―

230

First Mortgage Bonds

March 2013(i)

March 2043

4.100

%

―

500

―

―

500

June 2013(j)

June 2041

4.000

%

―

48

―

―

48

July 2013(k)

July 2043

4.900

%

―

―

―

350

350

July 2013(k)(l)

July 2016

0.619

%

―

―

―

150

150

September 2013(m)

September 2023

3.800

%

―

―

300

―

300

September 2013(m)(n)

March 2015

0.400

%

―

―

150

―

150

Total issuances

$

1,400

$

548

$

450

$

500

$

3,771

(a)

Callable after January 2018 at par. Proceeds from the issuance were used to redeem the $300 million 7.10% Cumulative Quarterly Income Preferred Securities (QUIPS). The securities were redeemed at par plus accrued and unpaid distributions, payable upon presentation on the redemption date. The remaining net proceeds were used to repay a portion of outstanding commercial paper and for general corporate purposes. See Note 11 for additional information about the QUIPS.

(b)

Proceeds from the issuance were used to repay $250 million of current maturities. The remaining net proceeds were used for general corporate purposes, including the repayment of outstanding commercial paper.

(c)

Proceeds from the issuance were used to repay $200 million of current maturities. The maturity date included above applies to half of the instrument. The remaining half matures in August 2018.

(d)

The debt is floating rate based on a consumer price index and an overnight funds rate in Brazil. The debt is denominated in Brazilian Real.

(e)

Proceeds from the issuance were used to repay commercial paper as well as for general corporate purposes.

(f)

Represents the conversion of construction loans related to a renewable energy project issued in December 2012 to term loans. No cash proceeds were received in conjunction with the conversion. The term loans have varying maturity dates. The maturity date presented represents the latest date for all components of the respective loans.

(g)

The debt is floating rate. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 95 percent of the loans.

(h)

Represents primarily the conversion of a $190 million bridge loan issued in conjunction with the acquisition of Ibener in December 2012. Duke Energy received incremental proceeds of $40 million upon conversion of the bridge loan. The debt is floating rate and is denominated in U.S. dollars. Duke Energy has entered into a pay fixed-receive floating interest rate swap for 75 percent of the loan.

(i)

Proceeds from the issuance were used to repay notes payable to affiliated companies as well as for general corporate purposes.

(j)

Callable after June 2023 at par. Proceeds from the issuance were used to redeem $48 million of First Mortgage Bonds with a higher interest rate.

(k)

Proceeds from the issuances were used to repay $400 million of current maturities.

(l)

The debt is floating rate based on 3-month London Interbank Offered Rate (LIBOR) and a fixed spread of 35 basis points.

(m)

Proceeds from the issuances were used for general corporate purposes including the repayment of short-term notes payable, a portion of which was incurred to fund the retirement of $250 million of first mortgage bonds that matured in the first half of 2013.

(n)

The debt is floating rate based on 3-month LIBOR plus a fixed spread of 14 basis points.