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Employee Benefit Obligations
 9 Months Ended
Sep. 30, 2013
Employee Benefit Plans [Abstract]  
Employee Benefit Obligations

14. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and its subsidiaries (including legacy Progress Energy and Cinergy businesses) maintain qualified, non-contributory defined benefit retirement plans. Duke Energy also maintains non-qualified, non-contributory defined benefit retirement plans, which cover certain executives. The Subsidiary Registrants participate in these plans.

In September 2013, Duke Energy adopted a de-risking investment strategy for its pension plan assets. As the funded status of the Duke Energy and Progress Energy pension plans increase, over time the allocation to return-seeking assets will be reduced and the allocation to fixed-income assets will be increased to better manage Duke Energy's pension liability and reduce funded status volatility. Based on the current funded status of the plans, the asset allocation for the Duke Energy pension plans has been adjusted to 60 percent fixed-income assets and 40 percent return-seeking assets and the asset allocation for the Progress Energy pension plans has been adjusted to 55 percent fixed-income assets and 45 percent return-seeking assets.

Duke Energy has made contributions directly to pension plan assets during the nine months ended September 30, 2013 of $27 million, all of which relates to Duke Energy Florida. Future amounts contributed may be impacted by recently enacted legislation as well as other factors.

Net periodic benefit costs disclosed in the tables below for pension and other post-retirement benefit plans represent the cost of the respective benefit plan for the periods presented. However, portions of the net periodic benefit costs disclosed in the tables below have been capitalized as a component of property, plant and equipment.

Amounts presented in the tables below for the Subsidiary Registrants represent allocated amounts of pension and other post-retirement benefit cost for employees of the Subsidiary Registrants. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy's shared services affiliates that provide support to the Subsidiary Registrants. These allocated amounts are included in the governance and shared service costs discussed in Note 17.

QUALIFIED PENSION PLANS
                      
The following tables include the components of net periodic pension costs for qualified pension plans.
                      
  Three Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 41 $ 12 $ 15 $ 6 $ 8 $ 1 $ 2
Interest cost on projected benefit obligation  80   20   29   13   13   5   7
Expected return on plan assets  (137)   (37)   (50)   (24)   (21)   (7)   (11)
Amortization of prior service credit  (2)   (2)   (1)   (1)   (1)   ―   ―
Amortization of actuarial loss  61   15   26   11   12   3   6
Other  2   1   ―   1   ―   ―   1
Net periodic pension costs(a)(b)$ 45 $ 9 $ 19 $ 6 $ 11 $ 2 $ 5
                      
  Three Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 39 $ 9 $ 16 $ 6 $ 8 $ 2 $ 2
Interest cost on projected benefit obligation  94   23   32   15   14   7   8
Expected return on plan assets  (142)   (36)   (48)   (25)   (21)   (11)   (12)
Amortization of prior service cost  3   ―   2   2   ―   ―   1
Amortization of actuarial loss  47   11   24   9   13   2   3
Other  2   ―   1   1   ―   ―   ―
Net periodic pension costs(a)(b)$ 43 $ 7 $ 27 $ 8 $ 14 $ ― $ 2
                      
(a)Duke Energy amounts exclude $3 million for each of the three months ended September 30, 2013 and 2012, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)Duke Energy Ohio amounts exclude $1 million and $2 million for the three months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
                      

                      
  Nine Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 125 $ 37 $ 45 $ 17 $ 23 $ 4 $ 8
Interest cost on projected benefit obligation  240   60   87   38   40   16   21
Expected return on plan assets  (411)   (111)   (149)   (71)   (65)   (22)   (33)
Amortization of prior service credit  (8)   (5)   (3)   (1)   (2)   ―   ―
Amortization of actuarial loss  183   45   76   34   37   9   17
Other  5   2   1   1   ―   ―   1
Net periodic pension costs(a)(b)$ 134 $ 28 $ 57 $ 18 $ 33 $ 7 $ 14
                      
  Nine Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 84 $ 26 $ 47 $ 19 $ 22 $ 5 $ 7
Interest cost on projected benefit obligation  214   68   95   43   42   23   23
Expected return on plan assets  (330)   (109)   (141)   (72)   (61)   (33)   (35)
Amortization of prior service cost  6   1   7   6   ―   ―   2
Amortization of actuarial loss  96   34   69   28   36   7   10
Other  4   1   1   1   ―   ―   ―
Net periodic pension costs(a)(b)$ 74 $ 21 $ 78 $ 25 $ 39 $ 2 $ 7
                      
(a)Duke Energy amounts exclude $9 million and $10 million for the nine months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)Duke Energy Ohio amounts exclude $4 million and $5 million for the nine months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
                      

NON-QUALIFIED PENSION PLANS
                
The following tables include the components of net periodic pension costs for non-qualified pension plans for registrants with non-qualified pension costs.
                
  Three Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida
Service cost$ 1 $ ― $ 1 $ 1 $ ―
Interest cost on projected benefit obligation  3   ―   1   ―   ―
Amortization of actuarial loss  1   ―   1   1   1
Net periodic pension costs$ 5 $ ― $ 3 $ 2 $ 1
                
  Three Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida
Interest cost on projected benefit obligation$ 5 $ ― $ 2 $ 1 $ 1
Amortization of actuarial loss  1   ―   1   ―   ―
Net periodic pension costs$ 6 $ ― $ 3 $ 1 $ 1
                

                
  Nine Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida
Service cost$ 2 $ ― $ 1 $ 1 $ ―
Interest cost on projected benefit obligation  10   1   5   1   1
Amortization of actuarial loss  4   ―   3   1   1
Amortization of prior service credit  (1)   ―   (1)   ―   ―
Net periodic pension costs$ 15 $ 1 $ 8 $ 3 $ 2
                
  Nine Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida
Service cost$ 1 $ ― $ 1 $ 1 $ ―
Interest cost on projected benefit obligation  8   1   6   1   2
Amortization of actuarial loss  2   ―   3   1   ―
Amortization of prior service cost  1   ―   ―   ―   ―
Net periodic pension costs$ 12 $ 1 $ 10 $ 3 $ 2
                

OTHER POST-RETIREMENT BENEFIT PLANS

Duke Energy and most of its subsidiaries provide some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. The Subsidiary Registrants participate in these plans. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. The health care benefits include medical coverage, dental coverage, vision, and prescription drug coverage and are subject to certain limitations, such as deductibles and co-payments.

Duke Energy uses a December 31 measurement date for its other post-retirement benefit plan assets and obligations. However, due to the impact of certain changes in Legacy Progress Energy health care benefits announced in September 2013, Duke Energy remeasured its Legacy Progress Energy other post-retirement benefit plan obligation as of September 30, 2013. There are no plan assets associated with the Legacy Progress Energy other post-retirement benefit plan. The discount rate used for the remeasurement was 4.7%. The health care cost trend rate of 8.5% reduces to 5.0% over eight years. The mortality tables were updated to account for mortality improvement. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2012.

The following table summarizes the reduction in accumulated other post-retirement benefit obligation recorded in September 2013 by each of the Duke Energy Registrants as a result of the remeasurement. The offsetting amounts for these items were recorded as decreases to regulatory assets.

     
(in millions)   
Duke Energy $551
Progress Energy  551
Duke Energy Progress  382
Duke Energy Florida  103
     

The following tables include the components of net periodic other post-retirement benefit costs.
                      
  Three Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 7 $ 1 $ 6 $ 3 $ 2 $ ― $ 1
Interest cost on accumulated post-retirement benefit obligation  19   3   12   7   5   ―   1
Expected return on plan assets  (4)   (2)   ―   ―   ―   ―   (1)
Amortization of prior service credit  (3)   (2)   ―   ―   ―   ―   ―
Amortization of actuarial loss   13   ―   13   8   4   ―   1
Net periodic other post-retirement benefit costs(a)$ 32 $ ― $ 31 $ 18 $ 11 $ ― $ 2
                      
  Three Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 7 $ 1 $ 5 $ 2 $ 2 $ 1 $ 1
Interest cost on accumulated post-retirement benefit obligation  19   4   11   6   4   1   1
Expected return on plan assets  (4)   (3)   ―   ―   ―   (1)   ―
Amortization of prior service credit  (2)   (2)   ―   ―   ―   ―   ―
Amortization of net transition liability  3   2   1   ―   1   ―   ―
Amortization of actuarial loss (gain)  8   1   10   6   3   (1)   ―
Special termination charge  9   1   5   2   1   ―   ―
Net periodic other post-retirement benefit costs(a)$ 40 $ 4 $ 32 $ 16 $ 11 $ ― $ 2
                      
(a)Duke Energy amounts exclude $2 million and $3 million for the three months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
                      

                      
  Nine Months Ended September 30, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 21 $ 2 $ 17 $ 9 $ 6 $ ― $ 1
Interest cost on accumulated post-retirement benefit obligation  55   9   35   19   13   1   4
Expected return on plan assets  (11)   (7)   ―   ―   ―   ―   (1)
Amortization of prior service credit  (9)   (6)   (1)   (1)   ―   ―   ―
Amortization of actuarial loss (gain)  39   2   42   26   12   (1)   1
Net periodic other post-retirement benefit costs(a)(b)$ 95 $ ― $ 93 $ 53 $ 31 $ ― $ 5
                      
  Nine Months Ended September 30, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 10 $ 2 $ 12 $ 6 $ 5 $ 1 $ 1
Interest cost on accumulated post-retirement benefit obligation  36   12   32   17   13   2   5
Expected return on plan assets  (12)   (8)   (1)   ―   (1)   (1)   (1)
Amortization of prior service credit  (6)   (4)   ―   ―   ―   ―   1
Amortization of net transition liability  7   5   3   ―   2   ―   ―
Amortization of actuarial loss (gain)  5   2   25   14   9   (2)   (1)
Special termination charge  9   1   5   2   1   ―   ―
Net periodic other post-retirement benefit costs(a)(b)$ 49 $ 10 $ 76 $ 39 $ 29 $ ― $ 5
                      
(a)Duke Energy amounts exclude $6 million and $7 million for the nine months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)Duke Energy Ohio amounts exclude $1 million for each of the nine months ended September 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
                      

EMPLOYEE SAVINGS PLANS

Duke Energy and Progress Energy sponsor employee savings plans that cover substantially all U.S. employees. The Subsidiary Registrants participate in these plans. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100 percent of employee before-tax and Roth 401(k) contributions, and, as applicable, after-tax contributions, of up to 6 percent of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS.

Pretax employer matching contributions expensed were as follows.

               
 Three Months Ended September 30, Nine Months Ended September 30,
(in millions)  2013  2012   2013  2012
Duke Energy $30 $30  $ 101 $ 77
Duke Energy Carolinas  10  8    34   28
Progress Energy  12  12    34   35
Duke Energy Progress  7  7    19   18
Duke Energy Florida  4  4    11   11
Duke Energy Ohio   ―  1    2   3
Duke Energy Indiana  2  2    5   5