Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts of Outstanding Derivative Positions

The tables below show information relating to volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. 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.



	March 31, 2015
	Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity (gigawatt-hours)^(a)	22,810	—	—	—	—	17,734	571
Natural gas (millions of decatherms)	666	57	333	111	222	276	—



	December 31, 2014
	Duke Energy	Duke Energy Carolinas	Progress Energy	Duke Energy Progress	Duke Energy Florida	Duke Energy Ohio	Duke Energy Indiana
Electricity (gigawatt-hours)^(a)	25,370	—	—	—	—	19,141	—
Natural gas (millions of decatherms)	676	35	328	116	212	313	—


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

The following table shows notional amounts for derivatives related to interest rate risk.



	March 31, 2015								December 31, 2014
(in millions)	Duke Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy		Duke Energy Florida		Duke Energy Ohio
Cash flow hedges^(a)	$	750	$	—	$	—	$	—	$	750	$	—	$	—
Undesignated contracts	527		250		250		27		277		250		27
Total notional amount	$	1,277	$	250	$	250	$	27	$	1,027	$	250	$	27


(a)	Duke Energy includes amounts related to consolidated Variable Interest Entities (VIEs) of $541 million at March 31, 2015 and December 31, 2014, respectively.

Location And Fair Value Of Derivatives Recognized in the Condensed Consolidated Balance Sheets

The following tables show the fair value of derivatives and the line items in the Condensed Consolidated Balance Sheets where they are reported. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below show gross and cash collateral on the derivatives has not been netted against the fair values shown.



Derivative Assets	March 31, 2015
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Commodity Contracts
Not Designated as Hedging Instruments
Current Assets: Other	$	4	$	—	$	—	$	—	$	—	$	—	$	3
Current Assets: Assets held for sale	45		—		—		—		—		78		—
Investments and Other Assets: Assets held for sale	21		—		—		—		—		48		—
Current Liabilities: Other	1		—		1		—		1		—		—
Current Liabilities: Assets held for sale	206		—		—		—		—		206		—
Deferred Credits and Other Liabilities: Other	2		—		2		—		2		—		—
Deferred Credits and Other Liabilities: Assets held for sale	123		—		—		—		—		123		—
Total Derivative Assets - Commodity Contracts	$	402	$	—	$	3	$	—	$	3	$	455	$	3
Interest Rate Contracts
Designated as Hedging Instruments
Investments and Other Assets: Other	$	3	$	—	$	—	$	—	$	—	$	—	$	—
Not Designated as Hedging Instruments
Current Assets: Other	5		—		5		2		3		—		—
Investments and Other Assets: Other	1		—		1		—		1		—		—
Total Derivative Assets - Interest Rate Contracts	9		—		6		2		4		—		—
Total Derivative Assets	$	411	$	—	$	9	$	2	$	7	$	455	$	3



Derivative Liabilities	March 31, 2015
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Commodity Contracts
Not Designated as Hedging Instruments
Current Assets: Assets held for sale	$	21	$	—	$	—	$	—	$	—	$	59	$	—
Investments and Other Assets: Assets held for sale	7		—		—		—		—		23		—
Current Liabilities: Other	308		19		289		100		189		—		—
Current Liabilities: Assets held for sale	263		—		—		—		—		249		—
Deferred Credits and Other Liabilities: Other	112		8		104		26		78		—		—
Deferred Credits and Other Liabilities: Assets held for sale	209		—		—		—		—		207		—
Total Derivative Liabilities - Commodity Contracts	$	920	$	27	$	393	$	126	$	267	$	538	$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current Liabilities: Other	$	14	$	—	$	—	$	—	$	—	$	1	$	—
Deferred Credits and Other Liabilities: Other	38		—		—		—		—		6		—
Not Designated as Hedging Instruments
Current Liabilities: Other	1		—		—		—		—		—		—
Deferred Credits and Other Liabilities: Other	11		—		5		5		—		—		—
Total Derivative Liabilities - Interest Rate Contracts	64		—		5		5		—		7		—
Total Derivative Liabilities	$	984	$	27	$	398	$	131	$	267	$	545	$	—



Derivative Assets	December 31, 2014
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Commodity Contracts
Not Designated as Hedging Instruments
Current Assets: Other	$	18	$	—	$	—	$	—	$	—	$	1	$	—
Current Assets: Assets Held for sale	15		—		—		—		—		28		—
Investments and Other Assets: Other	3		—		—		—		—		—		—
Investments and Other Assets: Assets held for sale	15		—		—		—		—		26		—
Current Liabilities: Other	1		—		—		—		—		—		—
Current Liabilities: Assets held for sale	174		—		—		—		—		175		—
Deferred Credits and Other Liabilities: Other	2		—		—		—		—		—		—
Deferred Credits and Other Liabilities: Assets held for sale	111		—		—		—		—		111		—
Total Derivative Assets - Commodity Contracts	$	339	$	—	$	—	$	—	$	—	$	341	$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current Assets: Other	$	—	$	—	$	—	$	—	$	—	$	—	$	14
Investments and Other Assets: Other	10		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current Assets: Other	2		—		2		—		2		—		—
Total Derivative Assets - Interest Rate Contracts	12		—		2		—		2		—		14
Total Derivative Assets	$	351	$	—	$	2	$	—	$	2	$	341	$	14



Derivative Liabilities	December 31, 2014
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Commodity Contracts
Designated as Hedging Instruments
Current Liabilities: Other	$	—	$	—	$	1	$	1	$	—	$	—	$	—
Not Designated as Hedging Instruments
Current Assets: Assets held for sale	—		—		—		—		—		4		—
Investments and Other Assets: Assets held for sale	—		—		—		—		—		4		—
Current Liabilities: Other	307		14		288		108		180		—		—
Current Liabilities: Assets held for sale	253		—		—		—		—		252		—
Deferred Credits and Other Liabilities: Other	91		5		80		23		57		—		—
Deferred Credits and Other Liabilities: Assets held for sale	208		—		—		—		—		207		—
Total Derivative Liabilities - Commodity Contracts	$	859	$	19	$	369	$	132	$	237	$	467	$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current Liabilities: Other	$	13	$	—	$	—	$	—	$	—	$	1	$	—
Deferred Credits and Other Liabilities: Other	29		—		—		—		—		5		—
Not Designated as Hedging Instruments
Current Liabilities: Other	1		—		—		—		—		—		—
Deferred Credits and Other Liabilities: Other	7		—		2		—		2		—		—
Total Derivative Liabilities - Interest Rate Contracts	50		—		2		—		2		6		—
Total Derivative Liabilities	$	909	$	19	$	371	$	132	$	239	$	473	$	—

Offsetting Assets

The following tables 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 financial position. The amounts shown were calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.



Derivative Assets	March 31, 2015
(in millions)	Duke Energy			Duke Energy Carolinas		Progress Energy			Duke Energy Progress		Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Current^(a)
Gross amounts recognized	$	261		$	—	$	6		$	2	$	4		$	284		$	3
Gross amounts offset	(227		)	—		(1		)	—		(1		)	(265		)	—
Net amounts subject to master netting	34			—		5			2		3			19			3
Amounts not subject to master netting	—			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	34		$	—	$	5		$	2	$	3		$	19		$	3
Non-Current^(b)
Gross amounts recognized	$	150		$	—	$	3		$	—	$	3		$	171		$	—
Gross amounts offset	(131		)	—		(2		)	—		(2		)	(145		)	—
Net amounts subject to master netting	19			—		1			—		1			26			—
Amounts not subject to master netting	—			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	19		$	—	$	1		$	—	$	1		$	26		$	—


(a)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Current Assets on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Assets held for sale within Current Assets on the Condensed Consolidated Balance Sheets.


(b)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Assets held for sale within Investments and Other Assets on the Condensed Consolidated Balance Sheets.



Derivative Assets	December 31, 2014
(in millions)	Duke Energy			Duke Energy Carolinas		Progress Energy			Duke Energy Progress		Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Current^(a)
Gross amounts recognized	$	210		$	—	$	2		$	—	$	2		$	204		$	14
Gross amounts offset	(153		)	—		(2		)	—		(2		)	(179		)	—
Net amounts subject to master netting	57			—		—			—		—			25			14
Amounts not subject to master netting	—			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	57		$	—	$	—		$	—	$	—		$	25		$	14
Non-Current^(b)
Gross amounts recognized	$	136		$	—	$	—		$	—	$	—		$	137		$	—
Gross amounts offset	(88		)	—		—			—		—			(114		)	—
Net amounts subject to master netting	48			—		—			—		—			23			—
Amounts not subject to master netting	5			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	53		$	—	$	—		$	—	$	—		$	23		$	—


(a)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Current Assets on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Assets held for sale within Current Assets on the Condensed Consolidated Balance Sheets.


(b)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Assets held for sale within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

Offsetting Liabilities



Derivative Liabilities	December 31, 2014
(in millions)	Duke Energy			Duke Energy Carolinas		Progress Energy			Duke Energy Progress		Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Current^(c)
Gross amounts recognized	$	573		$	14	$	289		$	109	$	180		$	257		$	—
Gross amounts offset	(213		)	—		(17		)	—		(17		)	(222		)	—
Net amounts subject to master netting	360			14		272			109		163			35			—
Amounts not subject to master netting	1			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	361		$	14	$	272		$	109	$	163		$	35		$	—
Non-Current^(d)
Gross amounts recognized	$	319		$	5	$	82		$	23	$	59		$	216		$	—
Gross amounts offset	(173		)	—		(8		)	—		(8		)	(193		)	—
Net amounts subject to master netting	146			5		74			23		51			23			—
Amounts not subject to master netting	16			—		—			—		—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	162		$	5	$	74		$	23	$	51		$	23		$	—


(c)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Current Liabilities on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Liabilities associated with assets held for sale within Current Liabilities on the Condensed Consolidated Balance Sheets.

(d)

Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Liabilities associated with assets held for sale within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.



Derivative Liabilities	March 31, 2015
(in millions)	Duke Energy			Duke Energy Carolinas		Progress Energy			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Current^(c)
Gross amounts recognized	$	607		$	19	$	289		$	100		$	189		$	309		$	—
Gross amounts offset	(293		)	—		(32		)	(1		)	(31		)	(300		)	—
Net amounts subject to master netting	314			19		257			99			158			9			—
Amounts not subject to master netting	—			—		—			—			—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	314		$	19	$	257		$	99		$	158		$	9		$	—
Non-Current^(d)
Gross amounts recognized	$	377		$	8	$	109		$	31		$	78		$	236		$	—
Gross amounts offset	(216		)	—		(14		)	—			(14		)	(218		)	—
Net amounts subject to master netting	161			8		95			31			64			18			—
Amounts not subject to master netting	—			—		—			—			—			—			—
Net amounts recognized on the Condensed Consolidated Balance Sheet	$	161		$	8	$	95		$	31		$	64		$	18		$	—


(c)	Amounts for Duke Energy Registrants, except Duke Energy and Duke Energy Ohio, are included in Other within Current Liabilities on the Condensed Consolidated Balance Sheets. Amounts for Duke Energy and Duke Energy Ohio are included in Other and Liabilities associated with assets held for sale within Current Liabilities on the Condensed Consolidated Balance Sheets.

(d)

Gains and Losses Recognized on Cash Flow Hedges

The following tables show the gains and losses recognized on cash flow hedges and the line items on the Condensed Consolidated Statements of Operations or Condensed Consolidated Balance Sheets where such gains and losses are included when reclassified from AOCI. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt.

There was no hedge ineffectiveness during the three months ended March 31, 2015 and 2014, and no gains or losses were excluded from the assessment of hedge effectiveness during the same periods.



	Three Months Ended March 31, 2015
(in millions)	Duke Energy_(a)			Duke Energy Carolinas			Duke Energy Indiana
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts	$	(11	)	$	—		$	—
Total Pretax Gains (Losses) Recorded in AOCI	(11		)	—			—
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(1		)	(1		)	1
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings	$	(1	)	$	(1	)	$	1

(a) A $5 million pretax gain is expected to be recognized in earnings during the next 12 months as interest expense.



	Three Months Ended March 31, 2014
(in millions)	Duke Energy			Duke Energy Carolinas		Duke Energy Indiana
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts	$	2		$	—	$	—
Total Pretax Gains (Losses) Recorded in AOCI	2			—		—
Location of Pretax Gains (Losses) Reclassified from AOCI into Earnings
Interest rate contracts
Interest expense	(1		)	—		—
Total Pretax Gains (Losses) Reclassified from AOCI into Earnings	$	(1	)	$	—	$	—

Gains and Losses Recognized on Undesignated Contracts

The following tables show the gains and losses during the year recognized on undesignated derivatives and the line items on the Condensed Consolidated Statements of Operations or the Condensed Consolidated Balance Sheets where the pretax gains and losses were reported. Amounts included in Regulatory Assets or Liabilities for commodity contracts are reclassified to earnings to match recovery through the fuel clause. Amounts included in Regulatory Assets or Liabilities for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. These amounts reclassified to earnings from Regulated Assets or Liabilities for commodity and interest rate contracts are excluded from the following tables.



	Three Months Ended March 31, 2015
(in millions)	Duke Energy			Duke Energy Carolinas			Progress Energy			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Location of Pretax Gains (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	1		$	—		$	—		$	—		$	—		$	—		$	1
Revenue: Nonregulated electric and other	17			—			—			—			—			13			—
Fuel used in electric generation and purchased power - nonregulated	37			—			—			—			—			37			—
Interest rate contracts
Interest expense	(1		)	—			(1		)	—			(1		)	—			—
Total Pretax Gains (Losses) Recognized in Earnings	$	54		$	—		$	(1	)	$	—		$	(1	)	$	50		$	1
Location of Pretax (Losses) Gains Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(340	)	$	(28	)	$	(314	)	$	(127	)	$	(187	)	$	—		$	2
Regulatory liabilities	(2		)	—			—			—			—			2			(4		)
Interest rate contracts
Regulatory assets	(5		)	—			(4		)	(5		)	1			(1		)	—
Regulatory liabilities	3			—			3			2			1			—			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	(344	)	$	(28	)	$	(315	)	$	(130	)	$	(185	)	$	1		$	(2	)



	Three Months Ended March 31, 2014
(in millions)	Duke Energy			Duke Energy Carolinas		Progress Energy			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio			Duke Energy Indiana
Location of Pretax Gains (Losses) Recognized in Earnings
Commodity contracts
Revenue: Regulated electric	$	(4	)	$	—	$	(3	)	$	(3	)	$	—		$	—		$	—
Revenue: Nonregulated electric and other	(397		)	—		—			—			—			(449		)	—
Fuel used in electric generation and purchased power - regulated	7			—		7			7			—			—			—
Fuel used in electric generation and purchased power - nonregulated	138			—		—			—			—			138			—
Interest rate contracts
Interest expense	(4		)	—		(4		)	(3		)	(1		)	—			—
Total Pretax Gains (Losses) Recognized in Earnings	$	(260	)	$	—	$	—		$	1		$	(1	)	$	(311	)	$	—
Location of Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets	$	(2	)	$	—	$	(2	)	$	17		$	(19	)	$	—		$	—
Regulatory liabilities	27			—		—			—			—			2			—
Interest rate contracts
Regulatory assets	4			—		4			3			1			—			—
Total Pretax Gains (Losses) Recognized as Regulatory Assets or Liabilities	$	29		$	—	$	2		$	20		$	(18	)	$	2		$	—

Derivative Contracts with Contingent Credit Features

The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative must be executed with the same counterparty under the same master netting agreement. Amounts disclosed 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. Amounts for Duke Energy Carolinas and Duke Energy Indiana were not material.



	March 31, 2015		December 31, 2014
(in millions)	Receivables		Receivables
Duke Energy
Amounts offset against net derivative positions	$	151	$	145
Amounts not offset against net derivative positions	68		64
Progress Energy
Amounts offset against net derivative positions	43		23
Duke Energy Progress
Amounts offset against net derivative positions	1		—
Duke Energy Florida
Amounts offset against net derivative positions	42		23
Duke Energy Ohio
Amounts offset against net derivative positions	108		122
Amounts not offset against net derivative positions	68		64

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. Amounts for Duke Energy Indiana were not material.



	March 31, 2015
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	834	$	11	$	344	$	110	$	234	$	479
Fair value of collateral already posted	219		—		43		1		42		176
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	326		11		301		109		192		14



	December 31, 2014
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio
Aggregate fair value amounts of derivative instruments in a net liability position	$	845	$	19	$	370	$	131	$	239	$	456
Fair value of collateral already posted	209		—		23		—		23		186
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	407		19		347		131		216		41

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References+ Details