Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurement Amounts For Assets And Liabilities

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets. Derivative amounts in the table below exclude cash collateral, which is disclosed in Note 9. See Note 10 for additional information related to investments by major security type.



	March 31, 2015
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	3,643		$	3,476		$	3		$	164
Nuclear decommissioning trust fund debt securities	1,827			542			1,285			—
Other trading and available-for-sale equity securities	98			98			—			—
Other trading and available-for-sale debt securities	323			73			245			5
Derivative assets	52			7			22			23
Total assets	5,943			4,196			1,555			192
Derivative liabilities	(625		)	(119		)	(497		)	(9		)
Net assets	$	5,318		$	4,077		$	1,058		$	183



	December 31, 2014
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	3,650		$	3,493		$	6		$	151
Nuclear decommissioning trust fund debt securities	1,899			648			1,251			—
Other trading and available-for-sale equity securities	96			96			—			—
Other trading and available-for-sale debt securities	263			41			217			5
Derivative assets	110			49			24			37
Total assets	6,018			4,327			1,498			193
Derivative liabilities	(668		)	(162		)	(468		)	(38		)
Net assets	$	5,350		$	4,165		$	1,030		$	155

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements. Amounts included in earnings for derivatives are primarily included in Operating Revenues.



	Three Months Ended March 31, 2015
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	156		$	(1	)	$	155
Total pretax realized or unrealized gains (losses) included in earnings	—			24			24
Purchases, sales, issuances and settlements:
Purchases	9			—			9
Sales	(1		)	—			(1		)
Settlements	—			(10		)	(10		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	5			1			6
Balance at end of period	$	169		$	14		$	183



	Three Months Ended March 31, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	98		$	13		$	111
Total pretax realized or unrealized gains (losses) included in earnings	—			18			18
Purchases, sales, issuances and settlements:
Purchases	1			—			1
Sales	(1		)	—			(1		)
Settlements	—			(39		)	(39		)
Transfers out of Level 3 due to observability of inputs	—			(5		)	(5		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	1			(1		)	—
Balance at end of period	$	99		$	(14	)	$	85
Pretax amounts included in the Condensed Consolidated Statements of Comprehensive Income related to Level 3 measurements outstanding	$	—		$	7		$	7

Quantitative Information Table - Level 3

The following table includes quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.



	March 31, 2015
Investment Type	Fair Value (in millions)			Valuation Technique	Unobservable Input	Range
Duke Energy
Natural gas contracts	$	11		Discounted cash flow	Forward natural gas curves – price per MMBtu	$	1.96		-	$	3.78
Financial transmission rights (FTRs)	3			RTO auction pricing	FTR price – per MWh	(0.83		)	-	8.47
Electricity contracts	8			Discounted cash flow	Forward electricity curves – price per MWh	24.96			-	51.33
Commodity capacity option contracts	1			Discounted cash flow	Forward capacity option curves – price per MW day	19.00			-	109.50
Commodity contract reserves	(9		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	14
Duke Energy Ohio
Electricity contracts	$	2		Discounted cash flow	Forward electricity curves – price per MWh	25.05			-	51.33
Natural gas contracts	11			Discounted cash flow	Forward natural gas curves – price per MMBtu	1.96			-	3.78
Commodity contract reserves	(6		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	7
Duke Energy Indiana
FTRs	$	3		RTO auction pricing	FTR price – per MWh	(0.83		)	-	8.47



	December 31, 2014
Investment Type	Fair Value (in millions)			Valuation Technique	Unobservable Input	Range
Duke Energy
Natural gas contracts	$	(5	)	Discounted cash flow	Forward natural gas curves – price per MMBtu	$	2.12		-	$	4.35
Financial transmission rights (FTRs)	14			RTO auction pricing	FTR price – per MWh	(1.92		)	-	9.86
Electricity contracts	(1		)	Discounted cash flow	Forward electricity curves – price per MWh	25.16			-	51.75
Commodity capacity option contracts	2			Discounted cash flow	Forward capacity option curves – price per MW day	21.00			-	109.00
Commodity contract reserves	(11		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	(1	)
Duke Energy Ohio
Electricity contracts	$	(6	)	Discounted cash flow	Forward electricity curves – price per MWh	25.25			-	51.75
Natural gas contracts	(5		)	Discounted cash flow	Forward natural gas curves – price per MMBtu	2.12			-	4.35
Commodity contract reserves	(7		)		Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives	$	(18	)
Duke Energy Indiana
FTRs	$	14		RTO auction pricing	FTR price – per MWh	(1.92		)	-	9.86

Schedule of Long-term debt, including current

The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.



	March 31, 2015				December 31, 2014
(in millions)	Book Value		Fair Value		Book Value		Fair Value
Duke Energy	$	39,973	$	45,113	$	40,020	$	44,566
Duke Energy Carolinas	8,885		10,301		8,391		9,626
Progress Energy	14,510		16,956		14,754		16,951
Duke Energy Progress	5,957		6,549		6,201		6,696
Duke Energy Florida	4,858		5,867		4,860		5,767
Duke Energy Ohio	1,606		1,810		1,766		1,970
Duke Energy Indiana	3,791		4,529		3,791		4,456

Duke Energy Carolinas [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	2,127		$	1,960	$	3		$	164
Nuclear decommissioning trust fund debt securities	885			131		754			—
Other trading and available-for-sale debt securities	3			—		—			3
Total assets	3,015			2,091		757			167
Derivative liabilities	(27		)	—		(27		)	—
Net assets	$	2,988		$	2,091	$	730		$	167



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	2,162		$	2,005	$	6		$	151
Nuclear decommissioning trust fund debt securities	870			138		732			—
Other trading and available-for-sale debt securities	3			—		—			3
Total assets	3,035			2,143		738			154
Derivative liabilities	(19		)	—		(19		)	—
Net assets	$	3,016		$	2,143	$	719		$	154

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Three Months Ended March 31, 2015
(in millions)	Investments			Derivatives (net)		Total
Balance at beginning of period	$	154		$	—	$	154
Purchases, sales, issuances and settlements:
Purchases	9			—		9
Issuances	(1		)	—		(1		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	5			—		5
Balance at end of period	$	167		$	—	$	167



	Three Months Ended March 31, 2014
(in millions)	Investments			Derivatives (net)			Total
Balance at beginning of period	$	81		$	(2	)	$	79
Purchases, sales, issuances and settlements:
Purchases	1			—			1
Sales	(1		)	—			(1		)
Settlements	—			(2		)	(2		)
Total gains (losses) included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	1			—			1
Balance at end of period	$	82		$	(4	)	$	78

Progress Energy [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,516		$	1,516	$	—		$	—
Nuclear decommissioning trust fund debt securities	942			411		531			—
Other trading and available-for-sale debt securities	60			16		44			—
Derivative assets	6			—		6			—
Total assets	2,524			1,943		581			—
Derivative liabilities	(395		)	—		(395		)	—
Net assets	$	2,129		$	1,943	$	186		$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,488		$	1,488	$	—		$	—
Nuclear decommissioning trust fund debt securities	1,029			510		519			—
Other trading and available-for-sale debt securities	58			15		43			—
Derivative assets	4			—		4			—
Total assets	2,579			2,013		566			—
Derivative liabilities	(373		)	—		(373		)	—
Net assets	$	2,206		$	2,013	$	193		$	—

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended March 31,
(in millions)	2015		2014
Balance at beginning of period	$	—	$	—
Total pretax realized or unrealized gains included in earnings	—		(3		)
Balance at end of period	$	—	$	(3	)
Pretax amounts included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to Level 3 measurements outstanding at March 31, 2014	$	—	$	(3	)

Duke Energy Progress [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,194		$	1,194	$	—		$	—
Nuclear decommissioning trust fund debt securities	545			140		405			—
Other trading and available-for-sale debt securities	1			1		—			—
Derivative assets	2			—		2			—
Total assets	1,742			1,335		407			—
Derivative liabilities	(131		)	—		(131		)	—
Net assets	$	1,611		$	1,335	$	276		$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	1,171		$	1,171	$	—		$	—
Nuclear decommissioning trust fund debt securities	540			151		389			—
Total assets	1,711			1,322		389			—
Derivative liabilities	(132		)	—		(132		)	—
Net assets	$	1,579		$	1,322	$	257		$	—

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended March 31,
(in millions)	2015		2014
Balance at beginning of period	$	—	$	—
Total pretax realized or unrealized gains included in earnings	—		(3		)
Balance at end of period	$	—	$	(3	)
Pretax amounts included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to Level 3 measurements outstanding at March 31, 2014	$	—	$	(3	)

Duke Energy Florida [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	322		$	322	$	—		$	—
Nuclear decommissioning trust fund debt securities and other	397			271		126			—
Other trading and available-for-sale debt securities and other	44			—		44			—
Derivative assets	4			—		4			—
Total assets	767			593		174			—
Derivative liabilities	(264		)	—		(264		)	—
Net assets (liabilities)	$	503		$	593	$	(90	)	$	—



	December 31, 2014
(in millions)	Total Fair Value			Level 1		Level 2			Level 3
Nuclear decommissioning trust fund equity securities	$	317		$	317	$	—		$	—
Nuclear decommissioning trust fund debt securities and other	489			359		130			—
Other trading and available-for-sale debt securities and other	44			—		44			—
Derivative assets	4			—		4			—
Total assets	854			676		178			—
Derivative liabilities	(241		)	—		(241		)	—
Net assets (liabilities)	$	613		$	676	$	(63	)	$	—

Duke Energy Ohio [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Derivative assets	$	44		$	20		$	8		$	16
Derivative liabilities	(134		)	(108		)	(17		)	(9		)
Net liabilities	$	(90	)	$	(88	)	$	(9	)	$	7



	December 31, 2014
(in millions)	Total Fair Value			Level 1			Level 2			Level 3
Derivative assets	$	49		$	20		$	9		$	20
Derivative liabilities	(181		)	(117		)	(26		)	(38		)
Net liabilities	$	(132	)	$	(97	)	$	(17	)	$	(18	)

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended March 31,
(in millions)	2015			2014
Balance at beginning of period	$	(18	)	$	(4	)
Total pretax realized or unrealized gains (losses) included in earnings	25			(6		)
Purchases, sales, issuances and settlements:
Settlements	—			(4		)
Transfers out of Level 3 due to observability of inputs	—			(5		)
Balance at end of period	$	7		$	(19	)
Pretax amounts included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to Level 3 measurements outstanding at March 31, 2014	$	—		(7		)

Duke Energy Indiana [Member]

Fair Value Disclosures [Line Items]

Fair Value Measurement Amounts For Assets And Liabilities



	March 31, 2015
(in millions)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale equity securities	$	73	$	73	$	—	$	—
Available-for-sale debt securities	30		—		30		—
Derivative assets	3		—		—		3
Net assets	$	106	$	73	$	30	$	3



	December 31, 2014
(in millions)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale equity securities	$	71	$	71	$	—	$	—
Available-for-sale debt securities	30		—		30		—
Derivative assets	14		—		—		14
Net assets	$	115	$	71	$	30	$	14

Reconciliation Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs

The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.



	Derivatives (net)
	Three Months Ended March 31,
(in millions)	2015			2014
Balance at beginning of period	$	14		$	12
Total pretax realized or unrealized gains (losses) included in earnings	(3		)	27
Purchases, sales, issuances and settlements:
Settlements	(9		)	(31		)
Total gains included on the Condensed Consolidated Balance Sheet as regulatory assets or liabilities	1			(1		)
Balance at end of period	$	3		$	7