The Duke Energy Registrants closely monitor risks associated with commodity price and interest rates changes on their operations. The Duke Energy Registrants use various commodity and interest rate instruments to manage these risks. Certain of these derivative instruments qualify for hedge accounting and are designated as hedging instruments. Other instruments either do not qualify for hedge accounting or have not been designated as hedges (hereinafter referred to as undesignated contracts). The Duke Energy Registrants' primary use of energy commodity derivatives is to hedge their generation portfolio against exposure to changes in the prices of electricity and fuel. Interest rate swaps are entered into to manage interest rate risk primarily associated with the Duke Energy Registrants' borrowings. Additionally, Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's nuclear decommissioning trust fund (NDTF) investment holdings may include certain derivative instruments, such as interest rate swaps and credit default swaps, as part of their overall investment strategies. The fair value of these derivative instruments are included within Nuclear decommissioning trust funds on the Condensed Consolidated Balance Sheets and are not material to the investment balances at September 30, 2013 and December 31, 2012. The remaining disclosures in this footnote do not reflect any derivatives included in the NDTFs as they are not material to the information presented.

Accounting guidance requires the recognition of all derivative instruments not identified as NPNS as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. For derivative instruments that qualify for hedge accounting, the Duke Energy Registrants may elect to designate such derivatives as either cash flow hedges or fair value hedges. The Duke Energy Registrants offset fair value amounts recognized on the Condensed Consolidated Balance Sheets related to derivative instruments executed with the same counterparty under the same master netting agreement.

Within the Duke Energy Registrants' regulated businesses, gains and losses on all derivative contracts are reflected as regulatory liabilities or assets and not as a component of AOCI or current period income. As a result, changes in fair value of these derivatives have no immediate earnings impact.

Within the Duke Energy Registrants' unregulated businesses, for derivative instruments that qualify for hedge accounting and are designated as cash flow hedges, the effective portion of gains or losses are reported as a component of AOCI. Amounts are subsequently reclassified from AOCI to earnings in the same period or periods during which the hedged transaction affects earnings. Any gains or losses on the derivative that represent either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that qualify and are designated as fair value hedges, gains or losses on the derivative and the fully or partially offsetting losses or gains on the hedged item are recognized in earnings in the current period. The Duke Energy Registrants include gains or losses on the derivative in the same line item as offsetting losses or gains on the hedged item in the Condensed Consolidated Statements of Operations. Additionally, the Duke Energy Registrants enter into derivative agreements that are economic hedges that either do not qualify for hedge accounting or have not been designated as hedges. The changes in fair value of these undesignated derivative instruments are reflected in current earnings.

The Duke Energy Registrants are exposed to the impact of changes in future prices of electricity (energy, capacity, and financial transmission rights), coal, and natural gas as a result of their operations. With respect to commodity price risks associated with electricity generation, the Duke Energy Registrants are exposed to changes including, but not limited to, the cost of the coal and natural gas used to generate electricity, the price of electricity sold in wholesale markets, and the cost of energy, capacity and financial transmission rights purchased for resale in wholesale markets. Exposure to commodity price risk is influenced by a number of factors, including, but not limited to, the term of contracts, the liquidity of markets, and delivery locations.

At September 30, 2013, no open commodity derivative instruments were designated as fair value hedges.

At September 30, 2013, no material open commodity derivative instruments were designated as cash flow hedges.

The Duke Energy Registrants use derivative contracts as economic hedges to manage market risk exposures that arise from providing electricity generation and capacity to large energy customers, energy aggregators, retail customers, and other wholesale companies. Undesignated contracts may include contracts not designated as a hedge, contracts that do not qualify for hedge accounting, derivatives that do not or no longer qualify for the NPNS scope exception, and de-designated hedge contracts. These contracts expire as late as 2017.

Undesignated contracts also include contracts associated with operations that Duke Energy continues to wind down or has included as discontinued operations. As these undesignated contracts expire as late as 2021, Duke Energy has entered into economic hedges that leave it minimally exposed to price changes over the duration of these contracts.

Duke Energy Carolinas and Duke Energy Progress use derivative contracts as economic hedges to manage market risk exposures that arise from electricity generation. Duke Energy Carolinas and Duke Energy Progress have also entered into firm power sale agreements, which are accounted for as derivative instruments, as part of the Interim FERC Mitigation in connection with Duke Energy's merger with Progress Energy. Duke Energy Carolinas' undesignated contracts as of September 30, 2013, are primarily associated with forward sales and purchases of electricity.

Duke Energy Florida uses derivative contracts primarily as economic hedges to manage market risk exposures that arise from electricity generation. Undesignated contracts at September 30, 2013, are primarily associated with forward purchases of natural gas.

Duke Energy Ohio uses derivative contracts as economic hedges to manage market risk exposures that arise from providing electricity generation and capacity to large energy customers, energy aggregators, retail customers, and other wholesale companies. Undesignated contracts at September 30, 2013, are primarily associated with forward sales and purchases of power, coal, and natural gas.

Duke Energy Indiana uses derivative contracts as economic hedges to manage market risk exposures that arise from electricity generation. Undesignated contracts at September 30, 2013, are primarily associated with forward purchases and sales of power and financial transmission rights.

The tables below show information relating to the volume of the Duke Energy Registrants outstanding commodity derivative contracts. Amounts disclosed represent the notional volumes of commodity contracts accounted for at fair value. For option contracts, notional amounts which represent the notional volumes times the probability of exercising the option based on current price volatility. Volumes associated with contracts qualifying for and designated as NPNS have been excluded from the table below. Amounts disclosed represent the absolute value of notional amounts. 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, 2013
		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Electricity-energy (Gigawatt-hours)^(a)			63,264		1,305		925		925		―		59,662		702
Natural gas (millions of decatherms)			536		―		336		129		207		200		―

		December 31, 2012
		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Electricity-energy (Gigawatt-hours)^(a)			52,104		2,028		1,850		1,850		―		51,215		97
Natural gas (millions of decatherms)			528		―		348		118		230		180		―

(a)	Amounts at Duke Energy Ohio include intercompany positions that eliminate at Duke Energy.

The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate exposure is managed by limiting variable-rate instruments to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements, and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward starting interest rate swaps may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt. When these transactions occur within a business that meets the criteria for regulatory accounting treatment, these contracts may be treated as undesignated and any pretax gain or loss recognized from inception to termination of the hedges would be recorded as a regulatory liability or asset and amortized as a component of interest expense over the life of the debt. In businesses that don't meet the criteria for regulatory accounting treatment, these derivatives may be designated as hedges whereby any pretax gain or loss recognized from inception to termination of the hedges would be recorded in AOCI and amortized as a component of interest expense over the life of the debt.

Duke Energy has a combination foreign exchange, pay fixed-receive floating interest rate swap to fix the US Dollar equivalent payments on a floating rate Chilean debt issue.

The following tables show notional amounts for derivatives related to interest rate risk.


		September 30, 2013
(in millions)		Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Ohio		Duke Energy Indiana
Cash flow hedges^(a)(b)		$	1,190	$	―	$	―	$	―	$	―
Undesignated contracts			34		―		―		27		―
Total notional amount		$	1,224	$	―	$	―	$	27	$	―

		December 31, 2012
(in millions)		Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Ohio		Duke Energy Indiana
Cash flow hedges^(a)		$	1,047	$	―	$	―	$	―	$	―
Undesignated contracts			290		50		50		27		200
Fair value hedges			250		―		―		250		―
Total notional amount		$	1,587	$	50	$	50	$	277	$	200

(a)	Duke Energy includes amounts related to non-recourse variable rate long-term debt of VIEs of $602 million and $620 million at September 30, 2013, and at December 31, 2012, respectively.
(b)	In October 2013, $375 million of interest rate swaps designated as cash flow hedges at Duke Energy were terminated due to a new debt issuance. See Note 6 for more information.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


	September 30, 2013				December 31, 2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other	$	―	$	1	$	―	$	2
Deferred Credits and Other Liabilities: Other		―		―		―		1
Interest rate contracts
Current Assets: Other		―		―		2		―
Investments and Other Assets: Other		21		―		7		―
Current Liabilities: Other		―		52		―		81
Deferred Credits and Other Liabilities: Other		―		14		―		35
Total Derivatives Designated as Hedging Instruments		21		67		9		119
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other		46		1		41		2
Investments and Other Assets: Other		167		104		106		50
Current Liabilities: Other		136		372		106		407
Deferred Credits and Other Liabilities: Other		4		171		2		255
Interest rate contracts
Current Liabilities: Other		―		1		―		76
Deferred Credits and Other Liabilities: Other		―		4		―		8
Total Derivatives Not Designated as Hedging Instruments		353		653		255		798
Total Derivatives	$	374	$	720	$	264	$	917

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements, or with an Independent System Operator (ISO) such as MISO or PJM. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Duke Energy may also have available accounts receivable or accounts payable that are subject to master netting agreements that would offset exposures in the event of bankruptcy. These amount are not included in the table below.


		September 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	159		$	175		$	338		$	265
Gross amounts offset			(142)			(108)			(168)			(122)
Net amount subject to master netting			17			67			170			143
Amounts not subject to master netting			23			17			89			28
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	40	^(a)	$	84	^(b)	$	259	^(c)	$	171	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	127		$	96		$	402		$	295
Gross amounts offset			(114)			(54)			(151)			(90)
Net amounts subject to master netting			13			42			251			205
Amounts not subject to master netting			22			19			166			54
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	35	^(a)	$	61	^(b)	$	417	^(c)	$	259	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations line items in which such gains and losses were included when reclassified from AOCI were as follows.

	Three Months Ended September 30,
(in millions)	2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts		$	―	$	(4)
Commodity contracts			―		1
Total Pretax Gains (Losses) Recorded in AOCI		$	―	$	(3)
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense		$	―	$	2
Total Pretax Losses Reclassified from AOCI into Earnings		$	―	$	2


		Nine Months Ended September 30,
(in millions)		2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts			$	71	$	(30)
Commodity contracts				1		1
Total Pretax Gains (Losses) Recorded in AOCI			$	72	$	(29)
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense			$	(2)	$	―
Total Pretax Losses Reclassified from AOCI into Earnings			$	(2)	$	―

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationship and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

There was no hedge ineffectiveness during the three and nine months ended September 30, 2013 and 2012, and no gains or losses were excluded from the assessment of hedge effectiveness during the same periods.

At September 30, 2013 and 2012, $65 million and $136 million, respectively, of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI. A $1 million pretax loss is expected to be recognized in earnings during the next 12 months as the hedged transactions occur.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Condensed Consolidated Statements of Operations in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)			2013		2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric		$	3	$	(22)
Revenue: Nonregulated electric, natural gas and other			(7)		(28)
Other income and expenses			―		(1)
Fuel used in electric generation and purchased power - regulated			(68)		(135)
Fuel used in electric generation and purchased power - nonregulated			(2)		―
Interest rate contracts
Interest expense			(4)		(4)
Total Pretax Losses Recognized in Earnings		$	(78)	$	(190)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets		$	(29)	$	61
Regulatory liabilities			6		12
Interest rate contracts
Regulatory assets			12		7
Total Pretax Losses Recognized as Regulatory Assets or Liabilities		$	(11)	$	80


		Nine Months Ended September 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric			$	10	$	(22)
Revenue: Nonregulated electric, natural gas and other				(15)		8
Other income and expenses				―		(1)
Fuel used in electric generation and purchased power - regulated^(a)				(157)		(135)
Fuel used in electric generation and purchased power - nonregulated				(20)		―
Interest rate contracts
Interest expense				(13)		(4)
Total Pretax (Losses) Gains Recognized in Earnings			$	(195)	$	(154)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets			$	(34)	$	61
Regulatory liabilities				10		34
Interest rate contracts^(c)
Regulatory assets				51		(3)
Total Pretax Gains Recognized as Regulatory Assets or Liabilities			$	27	$	92

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded as regulatory assets and liabilities in the Condensed Consolidated Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.
(c)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy Carolinas nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


		September 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Liabilities: Other		$	―	$	3	$	―	$	6
Deferred Credits and Other Liabilities: Other			―		1		―		6
Total Derivatives Not Designated as Hedging Instruments			―		4		―		12
Total Derivatives		$	―	$	4	$	―	$	12

(a)	Substantially all of these contracts receive regulatory accounting treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Carolinas' financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Duke Energy Carolinas may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.

September 30, 2013

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

―

^(a)

^(b)

December 31, 2012

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

―

^(a)

^(b)

(a)

Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.

(b)

Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

Losses on cash flow hedges reclassified at Duke Energy Carolinas for the three and nine months ended September 30, 2013 and 2012 were not material.

For the three and nine months ended September 30, 2013 and 2012, Duke Energy Carolinas had $22 million and $23 million, respectively, of pretax deferred net losses on settled interest rate cash flow hedges remaining in AOCI.

For the three and nine months ended September 30, 2013, pretax losses recognized on undesignated contracts for Duke Energy Carolinas were insignificant. For the three and nine months ended September 30, 2012, pretax losses recognized on undesignated contracts for Duke Energy Carolinas were $13 million.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Progress Energy nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


		September 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other		$	―	$	―	$	―	$	2
Deferred Credits and Other Liabilities: Other			―		1		―		1
Total Derivatives Designated as Hedging Instruments			―		1		―		3
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Assets: Other			―		―		3		―
Investments and Other Assets: Other			―		―		8		―
Current Liabilities: Other			1		159		―		231
Deferred Credits and Other Liabilities: Other			2		125		―		195
Interest rate contracts
Current Liabilities: Other			―		―		―		11
Total Derivatives Not Designated as Hedging Instruments			3		284		11		437
Total Derivatives		$	3	$	285	$	11	$	440

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Progress Energy's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Progress Energy may also have available accounts receivable or accounts payables to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


		September 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	1		$	2		$	159		$	122
Gross amounts offset			(1)			(1)			(13)			(15)
Net amount subject to master netting			―			1			146			107
Amounts not subject to master netting			―			―			―			4
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	―	^(a)	$	1	^(b)	$	146	^(c)	$	111	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	3		$	8		$	244		$	192
Gross amounts offset			―			―			(22)			(36)
Net amount subject to master netting			3			8			222			156
Amounts not subject to master netting			―			―			―			4
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	3	^(a)	$	8	^(b)	$	222	^(c)	$	160	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations and Comprehensive Income line items in which such gains and losses were included when reclassified from AOCI were as follows.

	Three Months Ended September 30,
(in millions)	2013			2012
Pretax Losses Recorded in AOCI
Commodity contracts			―		1
Total Pretax Losses Recorded in AOCI		$	―	$	1
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense		$	(5)	$	(2)
Total Pretax Losses Reclassified from AOCI into Earnings		$	(5)	$	(2)


		Nine Months Ended September 30,
(in millions)		2013			2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts			$	―	$	(11)
Commodity contracts				1		1
Total Pretax Gains (Losses) Recorded in AOCI			$	1	$	(10)
Location of Pretax Losses Reclassified from AOCI into Earnings^(a)
Interest rate contracts^(b)
Interest expense			$	(5)	$	(12)
Total Pretax Losses Reclassified from AOCI into Earnings			$	(5)	$	(12)

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationships and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

At September 30, 2013 and 2012, $60 million and $71 million, respectively, of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI. A $5 million pretax loss is expected to be recognized in earnings during the next 12 months as the hedged transactions occur. Effective with the Duke Energy merger, Progress Energy no longer designates interest rate contracts for regulated operations as cash flow hedges. As a result, pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)			2013		2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues		$	3	$	(9)
Fuel used in electric generation and purchased power^(a)			(68)		(135)
Interest rate contracts
Interest expense			(4)		(4)
Total Pretax Losses Recognized in Earnings		$	(69)	$	(148)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets		$	(31)	$	60
Interest rate contracts^(c)
Regulatory assets			4		2
Total Pretax (Losses) Gains Recognized as Regulatory Assets or Liabilities		$	(27)	$	62


		Nine Months Ended September 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues			$	10	$	(9)
Fuel used in electric generation and purchased power^(a)				(157)		(395)
Interest rate contracts
Interest expense				(13)		(4)
Total Pretax Losses Recognized in Earnings			$	(160)	$	(408)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets			$	(34)	$	(108)
Interest rate contracts^(c)
Regulatory assets				13		2
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities			$	(21)	$	(106)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded as regulatory assets and liabilities in the Condensed Consolidated Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.
(c)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy Progress nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.

September 30, 2013

December 31, 2012

(in millions)

Asset

Liability

Asset

Liability

Derivatives Designated as Hedging Instruments

Commodity contracts

Current Liabilities: Other

―

Deferred Credits and Other Liabilities: Other

―

Total Derivatives Designated as Hedging Instruments

―

Derivatives Not Designated as Hedging Instruments

Commodity contracts^(a)

Current Assets: Other

―

Investments and Other Assets: Other

―

Current Liabilities: Other

―

Deferred Credits and Other Liabilities: Other

―

Interest rate contracts

Current Liabilities: Other

―

Total Derivatives Not Designated as Hedging Instruments

108

164

Total Derivatives

108

166

(a)

Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Progress' financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Duke Energy Progress may also have available accounts receivable or accounts payable to offset exposures in the events of bankruptcy. These amounts are not included in the tables below.


		September 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	―		$	1		$	65		$	43
Gross amounts offset			―			―			(3)			(2)
Net amount subject to master netting			―			1			62			41
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	―	^(a)	$	1	^(b)	$	62	^(c)	$	41	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	1		$	1		$	97		$	69
Gross amounts offset			―			―			(2)			(7)
Net amount subject to master netting			1			1			95			62
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	1	^(a)	$	1	^(b)	$	95	^(c)	$	62	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

The amounts of gains and losses recognized on derivative instruments designated and qualifying as cash flow hedges by type of derivative contract, and the Condensed Consolidated Statements of Operations and Comprehensive Income line items in which such gains and losses were included when reclassified from AOCI were as follows.

		Nine Months Ended September 30,
(in millions)		2013			2012
Pretax Gains and (Losses) Recorded in AOCI
Interest rate contracts^(b)			$	―	$	(7)
Total Pretax Losses Recorded in AOCI			$	―	$	(7)
Location of Pretax Gains and (Losses) Reclassified from AOCI into Earnings^(a)
Interest rate contracts
Interest expense			$	―	$	(5)
Total Pretax Losses Reclassified from AOCI into Earnings			$	―	$	(5)

(a)	Represents the gains and losses on cash flow hedges previously recorded in AOCI during the term of the hedging relationships and reclassified into earnings during the current period.
(b)	Amounts in AOCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.

At September 30, 2012, $1 million of pretax deferred net losses on derivative instruments related to interest rate cash flow hedges were included as a component of AOCI. Effective with the Duke Energy merger, Duke Energy Progress no longer designates interest rate contracts for regulated operations as cash flow hedges. As a result, pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument and the line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues		$	3	$	(9)
Fuel used in electric generation and purchased power ^(a)			(24)		(35)
Interest rate contracts
Interest expense			(3)		(3)
Total Pretax Losses Recognized in Earnings		$	(24)	$	(47)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets		$	(11)	$	15
Interest rate contracts^(c)
Regulatory asses			3		2
Total Pretax (Losses) Gains Recognized as Regulatory Assets or Liabilities		$	(8)	$	17


		Nine Months Ended September 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating revenues			$	10	$	(9)
Fuel used in electric generation and purchased power^(a)				(53)		(100)
Interest rate contracts
Interest expense				(9)		(3)
Total Pretax Losses Recognized in Earnings			$	(52)	$	(112)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets			$	(18)	$	(34)
Interest rate contracts^(c)
Regulatory assets				10		2
Total Pretax Losses Recognized as Regulatory Assets or Liabilities			$	(8)	$	(32)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded in regulatory assets and liabilities in the Condensed Consolidated Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.
(c)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

The fair value amounts of derivative contracts, and the line items in the Condensed Balance Sheets on which they were included were as follows. The fair value of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy Florida nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


		September 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current Liabilities: Other		$	―	$	―	$	―	$	1
Total Derivatives Designated as Hedging Instruments			―		―		―		1
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Assets: Other			―		―		2		―
Investments and Other Assets: Other			―		―		7		―
Current Liabilities: Other			1		94		―		146
Deferred Credits and Other Liabilities: Other			1		79		―		123
Total Derivatives Not Designated as Hedging Instruments			2		173		9		269
Total Derivatives		$	2	$	173	$	9	$	270

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Florida's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Duke Energy Florida may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


		September 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	1		$	1		$	94		$	79
Gross amounts offset			(1)			(1)			(10)			(13)
Net amount subject to master netting			―			―			84			66
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Balance Sheet		$	―	^(a)	$	―	^(b)	$	84	^(c)	$	66	^(d)

		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	2		$	7		$	147		$	123
Gross amounts offset			―			―			(20)			(29)
Net amount subject to master netting			2			7			127			94
Amounts not subject to master netting			―			―			―			―
Net amounts recognized on the Condensed Balance Sheet		$	2	^(a)	$	7	^(b)	$	127	^(c)	$	94	^(d)

(a)	Included in Other within Current Assets on the Condensed Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Balance Sheet.

Gains on cash flow hedges recorded or reclassified at Duke Energy Florida for the three months and nine months ended September 30, 2013 and 2012 were not material.

At September 30, 2012, $1 million of pretax deferred net losses on derivative instruments related to outstanding interest rate cash flow hedges were included as a component of AOCI. Effective with the Duke Energy merger, Duke Energy Florida no longer designates interest rate contracts for regulated operations as cash flow hedges. As a result, pretax losses on open derivative contracts as of the date of the merger were reclassified from AOCI to Regulatory assets.

The amounts of pretax gains and losses recognized on undesignated contracts by type of derivative instrument and the line items in the Condensed Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power^(a)		$	(45)	$	(100)
Interest rate contracts
Interest expense			(1)		(1)
Total Pretax Losses Recognized in Earnings		$	(46)	$	(101)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets		$	(19)	$	45
Interest rate contracts
Regulatory assets			1		―
Total Pretax (Losses) Gains Recognized as Regulatory Assets or Liabilities		$	(18)	$	45


		Nine Months Ended September 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Fuel used in electric generation and purchased power^(a)			$	(105)	$	(295)
Interest rate contracts
Interest expense				(3)		(1)
Total Pretax Losses Recognized in Earnings			$	(108)	$	(296)
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts^(b)
Regulatory assets			$	(16)	$	(74)
Interest rate contracts
Regulatory assets				3		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities			$	(13)	$	(74)

(a)	After the derivatives are settled and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b)	Amounts are recorded in regulatory assets and liabilities in the Condensed Balance Sheets until gains or losses are passed through the fuel cost-recovery clause.

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy Ohio nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


	September 30, 2013				December 31, 2012
(in millions)	Asset		Liability		Asset		Liability
Derivatives Designated as Hedging Instruments
Interest rate contracts
Current Assets: Other	$		$	―	$	2	$	―
Total Derivatives Designated as Hedging Instruments		―		―		2		―
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current Assets: Other		21		6		31		4
Investments and Other Assets: Other		158		103		81		51
Current Liabilities: Other		134		160		106		132
Deferred Credits and Other Liabilities: Other		1		17		―		4
Interest rate contracts
Current Liabilities: Other		―		―		―		1
Deferred Credits and Other Liabilities: Other		―		4		―		7
Total Derivatives Not Designated as Hedging Instruments		314		290		218		199
Total Derivatives	$	314	$	290	$	220	$	199

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Ohio's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements, or with an ISO such as MISO or PJM. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. Duke Energy Ohio may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


		September 30, 2013
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	155		$	159		$	165		$	120
Gross amounts offset			(141)			(105)			(154)			(105)
Net amount subject to master netting			14			54			11			15
Amounts not subject to master netting			―			―			1			4
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	14	^(a)	$	54	^(b)	$	12	^(c)	$	19	^(d)


		December 31, 2012
		Derivative Assets						Derivative Liabilities
(in millions)		Current			Non-Current			Current			Non-Current
Gross amounts recognized		$	137		$	81		$	136		$	55
Gross amounts offset			(110)			(51)			(125)			(51)
Net amount subject to master netting			27			30			11			4
Amounts not subject to master netting			2			―			1			7
Net amounts recognized on the Condensed Consolidated Balance Sheet		$	29	^(a)	$	30	^(b)	$	12	^(c)	$	11	^(d)

(a)	Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.
(b)	Included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheet.
(c)	Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.
(d)	Included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheet.

There were no gains or losses on cash flow hedges recorded or reclassified at Duke Energy Ohio for the three and nine months ended September 30, 2013 and 2012.

At September 30, 2013 and December 31, 2012, Duke Energy Ohio had no pretax deferred net gains or losses on derivative instruments related to cash flow hedges remaining in AOCI.

The amounts of the pretax gains and losses recognized on undesignated contracts by type of derivative instrument, and the line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Nonregulated electric, natural gas and other		$	5	$	(42)
Fuel used in electric generation and purchased power - nonregulated			(2)		―
Total Pretax (Losses) Gains Recognized in Earnings		$	3	$	(42)


	Nine Months Ended September 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Revenue: Nonregulated electric, natural gas and other		$	(8)	$	33
Fuel used in electric generation and purchased power - nonregulated			(20)		―
Interest rate contracts
Interest expense			(1)		(1)
Total Pretax (Losses) Gains Recognized in Earnings		$	(29)	$	32
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets		$	―	$	(2)
Regulatory liabilities					1
Interest rate contracts
Regulatory assets			3		―
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities		$	3	$	(1)

The fair value amounts of derivative contracts, and the line items in the Condensed Consolidated Balance Sheets on which they were included were as follows. The fair values of derivative contracts are presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Duke Energy Indiana nets the fair value of derivative contracts subject to master netting arrangements with the same counterparty on the Condensed Consolidated Balance Sheets. Cash collateral associated with the derivative contracts were not netted against the fair value amounts in this table.


		September 30, 2013				December 31, 2012
(in millions)		Asset		Liability		Asset		Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts^(a)
Current Assets: Other		$	14	$	―	$	10	$	―
Interest rate contracts
Current Liabilities: Other			―		―		―		63
Total Derivatives Not Designated as Hedging Instruments			14		―		10		63
Total Derivatives		$	14	$	―	$	10	$	63

(a)	Substantially all of these contracts receive regulatory treatment.

The tables below show the balance sheet location of derivative contracts subject to enforceable master netting agreements and include collateral posted to offset the net position. This disclosure is intended to enable users to evaluate the effect of netting arrangements on Duke Energy Indiana's financial position. The amounts shown were calculated by counterparty.

Most derivatives are entered into with counterparties under enforceable master netting agreements. Derivatives entered into with a clearinghouse are usually over-collateralized due to the requirement to post initial margin upon entering into contracts. The amounts shown as offset are limited by the amount of exposure to a counterparty such that an over collateralized position at one counterparty is not allowed to reduce an under collateralized position at another counterparty. In addition to the amounts shown as offset in the table, Duke Energy Indiana may also have available accounts receivable or accounts payable to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.

September 30, 2013

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Gross amounts recognized

―

Net amount subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

^(a)

―

^(b)

―

December 31, 2012

Derivative Assets

Derivative Liabilities

(in millions)

Current

Non-Current

Current

Non-Current

Amounts not subject to master netting

―

Net amounts recognized on the Condensed Consolidated Balance Sheet

^(a)

―

^(b)

―

(a)

Included in Other within Current Assets on the Condensed Consolidated Balance Sheet.

(b)

Included in Other within Current Liabilities on the Condensed Consolidated Balance Sheet.

Gains on cash flow hedges reclassified at Duke Energy Indiana for the three and nine months ended September 30, 2013 and 2012 were not material.

Pretax deferred net gains or losses on derivative instruments related to cash flow hedges remaining in AOCI for Duke Energy Indiana were not material at September 30, 2013 and 2012, respectively.

The amounts of the pretax gains and losses recognized on undesignated contracts by type of derivative instrument and line items in the Condensed Consolidated Statements of Operations and Comprehensive Income in which such gains and losses were included or deferred on the Condensed Consolidated Balance Sheets as regulatory assets or liabilities were as follows.


	Three Months Ended September 30,
(in millions)	2013			2012
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets		$	2	$	11
Regulatory liabilities			6		―
Interest rate contracts^(a)
Regulatory assets			6		4
Total Pretax Gains Recognized as Regulatory Assets or Liabilities		$	14	$	15


		Nine Months Ended September 30,
(in millions)		2013			2012
Location of Pretax Gains and (Losses) Recognized in Earnings
Commodity contracts
Operating Revenues			$	1	$	―
Fuel used in electric generation and purchased power				―		2
Total Pretax (Losses) Gains Recognized in Earnings			$	1	$	2
Location of Pretax Gains and (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory liabilities				10		33
Interest rate contracts^(a)
Regulatory assets				34		(5)
Total Pretax Gains Recognized as Regulatory Assets or Liabilities			$	44	$	28

(a)	Amounts in regulatory assets and liabilities related to terminated hedges are reclassified to earnings as the interest expense is recorded. The hedges will be amortized to interest expense over the term of the related debt.

Certain of the Duke Energy Registrants' derivative contracts contain contingent credit features. These features may include (i) material adverse change clauses or payment acceleration clauses that could result in immediate payments, (ii) the posting of letters of credit or termination of the derivative contract before maturity if specific events occur, such as a credit rating downgrade below investment grade.

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, 2013
(in millions)	Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	481	$	211	$	82	$	129	$	268
Fair value of collateral already posted		138		26		5		21		106
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered		200		185		77		108		15

	December 31, 2012
(in millions)	Duke Energy		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	466	$	286	$	108	$	178	$	176
Fair value of collateral already posted		163		59		9		50		104
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered		230		227		99		128		2

The Duke Energy Registrants have elected to offset cash collateral and fair values of derivative instruments. For amounts to be netted, the derivative instruments must be executed with the same counterparty under the same master netting agreement. Amounts disclosed in the table below represent the receivables related to the right to reclaim cash collateral and payables related to the obligation to return cash collateral under master netting arrangements. See Note 10 for additional information on fair value disclosures related to derivatives.

September 30, 2013

December 31, 2012

(in millions)

Receivables

Payables

Receivables

Payables

Duke Energy