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Debt and Credit Facilities

12 Months Ended

Dec. 31, 2020

DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize outstanding debt.


	December 31, 2020
	Weighted
	Average				Duke				Duke		Duke		Duke		Duke
	Interest		Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Rate		Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unsecured debt, maturing 2021-2078	3.71	%	$	23,669	$	1,150	$	3,150	$	700	$	350	$	1,180	$	403	$	2,800
Secured debt, maturing 2021-2052	2.67	%	4,270		543		1,584		252		1,332		—		—		—
First mortgage bonds, maturing 2021-2050(a)	4.00	%	29,177		10,008		14,100		7,875		6,225		1,850		3,219		—
Finance leases, maturing 2022-2051(b)	6.96	%	845		294		377		296		81		—		10		—

Tax-exempt bonds, maturing 2027-2041(c)	0.75	%	477		—		48		48		—		77		352		—
Notes payable and commercial paper(d)	0.51	%	3,407		—		—		—		—		—		—		—
Money pool/intercompany borrowings			—		806		3,119		445		196		194		281		530
Fair value hedge carrying value adjustment			4		4		—		—		—		—		—		—
Unamortized debt discount and premium, net(e)			1,217		(20)		(31)		(19)		(11)		(29)		(18)		(5)
Unamortized debt issuance costs(f)			(330)		(62)		(113)		(44)		(62)		(14)		(25)		(15)
Total debt	3.62	%	$	62,736	$	12,723	$	22,234	$	9,553	$	8,111	$	3,258	$	4,222	$	3,310
Short-term notes payable and commercial paper			(2,873)		—		—		—		—		—		—		—
Short-term money pool/intercompany borrowings			—		(506)		(2,969)		(295)		(196)		(169)		(131)		(530)
Current maturities of long-term debt(g)			(4,238)		(506)		(1,426)		(603)		(823)		(50)		(70)		(160)
Total long-term debt(g)			$	55,625	$	11,711	$	17,839	$	8,655	$	7,092	$	3,039	$	4,021	$	2,620

(a)Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b)Duke Energy includes $24 million and $341 million of finance lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c)Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d)Includes $625 million classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 23 days.

(e)Duke Energy includes $1,196 million and $117 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f)Duke Energy includes $33 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g)Refer to Note 17 for additional information on amounts from consolidated VIEs.


	December 31, 2019
	Weighted
	Average				Duke				Duke		Duke		Duke		Duke
	Interest		Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Rate		Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unsecured debt, maturing 2020-2078	4.02	%	$	22,477	$	1,150	$	3,650	$	700	$	350	$	1,110	$	405	$	2,399
Secured debt, maturing 2020-2052	3.30	%	4,537		544		1,722		335		1,387		—		—		—
First mortgage bonds, maturing 2020-2049(a)	4.13	%	27,977		9,557		13,800		7,575		6,225		1,449		3,169		—
Finance leases, maturing 2022-2051(b)	6.60	%	969		179		405		307		98		—		10		—

Tax-exempt bonds, maturing 2022-2041(c)	2.90	%	730		243		48		48		—		77		362		—
Notes payable and commercial paper(d)	1.98	%	3,588		—		—		—		—		—		—		—
Money pool/intercompany borrowings			—		329		1,970		216		—		337		180		476
Fair value hedge carrying value adjustment			5		5		—		—		—		—		—		—
Unamortized debt discount and premium, net(e)			1,294		(23)		(29)		(17)		(11)		(30)		(19)		(2)
Unamortized debt issuance costs(f)			(316)		(55)		(111)		(40)		(62)		(12)		(20)		(13)
Total debt	3.92	%	$	61,261	$	11,929	$	21,455	$	9,124	$	7,987	$	2,931	$	4,087	$	2,860
Short-term notes payable and commercial paper			(3,135)		—		—		—		—		—		—		—
Short-term money pool/intercompany borrowings			—		(29)		(1,821)		(66)		—		(312)		(30)		(476)
Current maturities of long-term debt(g)			(3,141)		(458)		(1,577)		(1,006)		(571)		—		(503)		—
Total long-term debt(g)			$	54,985	$	11,442	$	18,057	$	8,052	$	7,416	$	2,619	$	3,554	$	2,384

(a) Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b) Duke Energy includes $44 million and $419 million of finance lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c) Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d) Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper programs was 14 days.

(e) Duke Energy includes $1,275 million and $137 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f) Duke Energy includes $37 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g) Refer to Note 17 for additional information on amounts from consolidated VIEs.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.


(in millions)	Maturity Date	Interest Rate			December 31, 2020
Unsecured Debt(a)

Duke Energy (Parent)	May 2021	0.721	%	(b)	$	500
Piedmont	June 2021	4.240	%		160
Duke Energy (Parent)	September 2021	3.550	%		500
Duke Energy (Parent)	September 2021	1.800	%		750
Duke Energy Florida	November 2021	0.482	%	(b)	200
Secured Debt
Duke Energy Florida	April 2021	0.972	%	(b)	250
First Mortgage Bonds
Duke Energy Carolinas	June 2021	3.900	%		500
Duke Energy Florida	August 2021	3.100	%		300
Duke Energy Progress	September 2021	3.000	%		500
Duke Energy Progress	September 2021	8.625	%		100
Other(c)					478
Current maturities of long-term debt					$	4,238

(a) During October 2020, Progress Energy early retired $500 million of unsecured debt with an original maturity of January 15, 2021.

(b) Debt has a floating interest rate.

Maturities and Call Options

The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable, commercial paper and money pool borrowings and debt issuance costs for the Subsidiary Registrants.


	December 31, 2020
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy(a)		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
2021	$	4,238	$	506	$	1,426	$	603	$	823	$	50	$	70	$	160
2022	4,905		721		1,736		1,208		78		—		84		—
2023	3,356		1,008		638		561		77		325		3		45
2024	1,344		9		76		10		66		—		4		40
2025	3,153		310		725		661		64		270		154		205
Thereafter	41,983		9,745		14,802		6,274		6,878		2,486		3,818		2,350
Total long-term debt, including current maturities	$	58,979	$	12,299	$	19,403	$	9,317	$	7,986	$	3,131	$	4,133	$	2,800

(a) Excludes $1,346 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.

The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.

Short-Term Obligations Classified as Long-Term Debt

Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long-term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.


	December 31, 2020
			Duke		Duke		Duke		Duke
	Duke		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Progress		Ohio		Indiana
Tax-exempt bonds	$	312	$	—	$	—	$	27	$	285
Commercial paper(a)	625		300		150		25		150

Total	$	937	$	300	$	150	$	52	$	435


	December 31, 2019
			Duke		Duke		Duke		Duke
	Duke		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Progress		Ohio		Indiana
Tax-exempt bonds	$	312	$	—	$	—	$	27	$	285
Commercial paper(a)	625		300		150		25		150

Total	$	937	$	300	$	150	$	52	$	435

(a) Progress Energy amounts are equal to Duke Energy Progress amounts.

Summary of Significant Debt Issuances

The following tables summarize significant debt issuances (in millions).


					Year Ended December 31, 2020
							Duke		Duke		Duke		Duke		Duke		Duke
	Maturity	Interest			Duke		Energy		Energy		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate			Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont
Unsecured Debt
May 2020(a)	Jun 2030	2.450	%		$	500	$	500	$	—	$	—	$	—	$	—	$	—	$	—
May 2020(b)	Jun 2050	3.350	%		400		—		—		—		—		—		—		400
August 2020(c)	Feb 2022	0.400	%	(d)	700		—		—		700		—		—		—		—
September 2020(e)	Sep 2025	0.900	%		650		650		—		—		—		—		—		—
September 2020(e)	Jun 2030	2.450	%		350		350		—		—		—		—		—		—



First Mortgage Bonds
January 2020(f)	Feb 2030	2.450	%		500		—		500		—		—		—		—		—
January 2020(f)	Aug 2049	3.200	%		400		—		400		—		—		—		—		—
March 2020(g)	Apr 2050	2.750	%		550		—		—		—		—		—		550		—
May 2020(b)	Jun 2030	2.125	%		400		—		—		—		—		400		—		—
June 2020(b)	Jun 2030	1.750	%		500		—		—		—		500		—		—		—
August 2020(h)	Aug 2050	2.500	%		600		—		—		600		—		—		—		—

Total issuances					$	5,550	$	1,500	$	900	$	1,300	$	500	$	400	$	550	$	400

(a)Debt issued to repay $500 million borrowing made under Duke Energy (Parent) revolving credit facility in March 2020, and for general corporate purposes.

(b)Debt issued to repay short-term debt and for general corporate purposes.

(c)Debt issued to repay $700 million term loan due December 2020.

(d)Debt issuance has a floating interest rate.

(e)Debt issued to repay a portion of outstanding commercial paper, to repay a portion of Duke Energy (Parent)'s outstanding $1.7 billion term loan due March 2021 and for general corporate purposes.

(f)Debt issued to repay at maturity $450 million first mortgage bonds due June 2020 and for general corporate purposes.

(g)Debt issued to repay at maturity $500 million first mortgage bonds due July 2020 and to pay down short-term debt.

(h)Debt issued to repay at maturity $300 million first mortgage bonds due September 2020 and for general corporate purposes.


					Year Ended December 31, 2019
							Duke		Duke		Duke		Duke		Duke		Duke
	Maturity	Interest			Duke		Energy		Energy		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate			Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont
Unsecured Debt
March 2019(a)	Mar 2022	2.538	%	(b)	$	300	$	300	$	—	$	—	$	—	$	—	$	—	$	—
March 2019(a)	Mar 2022	3.227	%		300		300		—		—		—		—		—		—
May 2019(e)	Jun 2029	3.500	%		600		—		—		—		—		—		—		600
June 2019(a)	Jun 2029	3.400	%		600		600		—		—		—		—		—		—
June 2019(a)	Jun 2049	4.200	%		600		600		—		—		—		—		—		—
July 2019(g)	Jul 2049	4.320	%		40		—		—		—		—		40		—		—
September 2019(g)	Oct 2025	3.230	%		95		—		—		—		—		95		—		—
September 2019(g)	Oct 2029	3.560	%		75		—		—		—		—		75		—		—
November 2019(h)	Nov 2021	2.167	%	(b)	200		—		—		—		200		—		—		—



First Mortgage Bonds
January 2019(c)	Feb 2029	3.650	%		400		—		—		—		—		400		—		—
January 2019(c)	Feb 2049	4.300	%		400		—		—		—		—		400		—		—
March 2019(d)	Mar 2029	3.450	%		600		—		—		600		—		—		—		—
August 2019(a)	Aug 2029	2.450	%		450		—		450		—		—		—		—		—
August 2019(a)	Aug 2049	3.200	%		350		—		350		—		—		—		—		—
September 2019(f)	Oct 2049	3.250	%		500		—		—		—		—		—		500		—
November 2019(i)	Dec 2029	2.500	%		700		—		—		—		700		—		—		—
Total issuances					$	6,210	$	1,800	$	800	$	600	$	900	$	1,010	$	500	$	600

(a)Debt issued to pay down short-term debt and for general corporate purposes.

(b)Debt issuance has a floating interest rate.

(c)Debt issued to repay at maturity $450 million first mortgage bonds due April 2019, pay down short-term debt and for general corporate purposes.

(d)Debt issued to fund eligible green energy projects in the Carolinas.

(e)Debt issued to repay in full the outstanding $350 million Piedmont unsecured term loan due September 2019, pay down short-term debt and for general corporate purposes.

(f)Debt issued to retire $150 million of pollution control bonds, pay down short-term debt and for general corporate purposes.

(g)Debt issued to repay at maturity $100 million debentures due October 2019, pay down short-term debt and for general corporate purposes.

(h)Debt issued to fund storm restoration costs and for general corporate purposes.

(i)Debt issued to reimburse the payment of existing and new Eligible Green Expenditures in Florida.

AVAILABLE CREDIT FACILITIES

Master Credit Facility

In March 2020, Duke Energy amended its existing $8 billion Master Credit Facility to extend the termination date to March 2025. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder.

The table below includes the current borrowing sublimits and available capacity under these credit facilities.


	December 31, 2020
			Duke		Duke		Duke		Duke		Duke		Duke
	Duke		Energy		Energy		Energy		Energy		Energy		Energy
(in millions)	Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont
Facility size(a)	$	8,000	$	2,650	$	1,475	$	1,250	$	800	$	625	$	600	$	600
Reduction to backstop issuances
Commercial paper(b)	(2,239)		—		(736)		(407)		(179)		(176)		(257)		(484)
Outstanding letters of credit	(40)		(34)		(4)		(2)		—		—		—		—
Tax-exempt bonds	(81)		—		—		—		—		—		(81)		—

Available capacity	$	5,640	$	2,616	$	735	$	841	$	621	$	449	$	262	$	116

(a) Represents the sublimit of each borrower.

(b) Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.

Term Loan Facility

In response to market volatility and ongoing liquidity impacts from COVID-19, in March 2020, Duke Energy (Parent) entered into a $1.5 billion, 364-day Term Loan Credit Agreement, borrowing the full $1.5 billion available on March 19, 2020. The term loan contained a provision for increasing the amount available for borrowing by up to $500 million. Duke Energy (Parent) exercised this provision on March 27, 2020, borrowing an additional $188 million. Proceeds were used to reduce outstanding commercial paper and for general corporate purposes. The loan was repaid by Duke Energy (Parent) as of December 31, 2020. Refer to Note 1 for additional information on the COVID-19 pandemic.

Three-Year Revolving Credit Facility

Duke Energy (Parent) has a $1 billion revolving credit facility. The facility had an initial termination date of June 2020, but in May 2019, Duke Energy extended the termination date of the facility to May 2022. Borrowings under this facility will be used for general corporate purposes. As of December 31, 2020, $500 million has been drawn under this facility. This balance is classified as Long-term debt on Duke Energy's Consolidated Balance Sheets. Any undrawn commitments can be drawn, and borrowings can be prepaid, at any time throughout the term of the facility. During the first quarter of 2020, an additional $500 million was drawn under this facility to manage liquidity impacts from COVID-19. The additional $500 million was paid down during the second quarter of 2020. The terms and conditions of the facility are generally consistent with those governing Duke Energy's Master Credit Facility.

Duke Energy Progress Term Loan Facility

In December 2018, Duke Energy Progress entered into a two-year term loan facility with commitments totaling $700 million. Borrowings under the facility were used to pay storm-related costs, pay down commercial paper and to partially finance an upcoming bond maturity. As of December 31, 2019, the entire $700 million had been drawn under the term loan and was classified as Current maturities of long-term debt on Duke Energy Progress' Consolidated Balance Sheets. In August 2020, Duke Energy Progress repaid its $700 million two-year term loan facility.

Other Debt Matters

In September 2019, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities, including preferred stock, in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common and preferred stock by Duke Energy.

Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $1.5 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2020, and 2019, was $1,168 million and $1,049 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets.

Money Pool

The Subsidiary Registrants, excluding Progress Energy, are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy, separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent), may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly owned subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.

Restrictive Debt Covenants

The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65% for each borrower, excluding Piedmont, and 70% for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2020, each of the Duke Energy Registrants was in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses.

Other Loans

As of December 31, 2020, and 2019, Duke Energy had loans outstanding of $817 million, including $35 million at Duke Energy Progress and $777 million, including $36 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.