INCOME TAXES

The effective tax rates for each of the Duke Energy Registrants are included in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Duke Energy	25.4	%	32.5	%	13.6	%	33.6	%
Duke Energy Carolinas	28.9	%	37.4	%	33.6	%	37.2	%
Progress Energy	37.7	%	59.9	%	37.4	%	36.7	%
Duke Energy Progress	37.3	%	39.6	%	36.9	%	38.7	%
Duke Energy Florida	38.7	%	38.0	%	38.6	%	39.8	%
Duke Energy Ohio	36.2	%	36.3	%	35.5	%	35.9	%
Duke Energy Indiana	36.9	%	37.5	%	36.8	%	37.5	%

The decrease in the effective tax rate for Duke Energy for the three and six months ended June 30, 2014 is primarily due to the first quarter of 2014 impairment of the Midwest Generation business and a deferred tax benefit recorded in the second quarter of 2014 as a result of the merger of two Chilean subsidiaries.

The decrease in the effective tax rate for Duke Energy Carolinas for the three and six months ended June 30, 2014 is primarily due to favorable audit settlements and changes in apportionment related to state income tax.

The decrease in the effective tax rate for Progress Energy for the three months ended June 30, 2014 is primarily due to the pretax loss in 2013 related to the 2013 FPSC settlement agreement.

The decrease in the effective tax rate for Duke Energy Progress for the three and six months ended June 30, 2014 is primarily due to certain nondeductible book depreciation.

The decrease in the effective tax rate for Duke Energy Florida for the six months ended June 30, 2014 is primarily due to certain nondeductible book depreciation.