(a)Relates primarily to tax equity financing activity in the Commercial Renewables Disposal Groups.
(b)See Duke Energy Condensed Consolidated Statements of Comprehensive Income for detailed activity related to Cash Flow and Fair Value hedges.
(c)See Note 2 for additional information.
(d)Net income available to Duke Energy Corporation Common Stockholders reflects preferred dividends and, for 2024, the $16 million preferred stock redemption costs.
See Notes to Condensed Consolidated Financial Statements
14
FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
2,707
$
2,393
$
7,411
$
6,155
Operating Expenses
Fuel used in electric generation and purchased power
922
690
2,531
1,823
Operation, maintenance and other
463
424
1,358
1,285
Depreciation and amortization
472
407
1,306
1,186
Property and other taxes
88
90
271
276
Impairment of assets and other charges
(2)
64
32
70
Total operating expenses
1,943
1,675
5,498
4,640
Gains on Sales of Other Assets and Other, net
—
—
1
26
Operating Income
764
718
1,914
1,541
Other Income and Expenses, net
58
63
181
181
Interest Expense
189
172
537
504
Income Before Income Taxes
633
609
1,558
1,218
Income Tax Expense
49
30
153
97
Net Income and Comprehensive Income
$
584
$
579
$
1,405
$
1,121
See Notes to Condensed Consolidated Financial Statements
15
FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
13
$
9
Receivables (net of allowance for doubtful accounts of $17 at 2024 and $11 at 2023)
250
265
Receivables of VIEs (net of allowance for doubtful accounts of $53 at 2024 and $45 at 2023)
1,149
991
Receivables from affiliated companies
202
203
Notes receivable from affiliated companies
177
—
Inventory
1,482
1,484
Regulatory assets (includes $12 at 2024 and 2023 related to VIEs)
927
1,564
Other (includes $6 at 2024 and $9 at 2023 related to VIEs)
48
31
Total current assets
4,248
4,547
Property, Plant and Equipment
Cost
58,465
56,670
Accumulated depreciation and amortization
(20,026)
(19,896)
Net property, plant and equipment
38,439
36,774
Other Noncurrent Assets
Regulatory assets (includes $188 at 2024 and $196 at 2023 related to VIEs)
3,867
3,916
Nuclear decommissioning trust funds
6,505
5,686
Operating lease right-of-use assets, net
85
78
Other
1,165
1,109
Total other noncurrent assets
11,622
10,789
Total Assets
$
54,309
$
52,110
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
1,302
$
1,183
Accounts payable to affiliated companies
230
195
Notes payable to affiliated companies
—
668
Taxes accrued
386
281
Interest accrued
158
179
Current maturities of long-term debt (includes $510 at 2024 and $10 at 2023 related to VIEs)
520
19
Asset retirement obligations
253
224
Regulatory liabilities
576
587
Other
589
702
Total current liabilities
4,014
4,038
Long-Term Debt (includes $198 at 2024 and $708 at 2023 related to VIEs)
16,212
15,693
Long-Term Debt Payable to Affiliated Companies
300
300
Other Noncurrent Liabilities
Deferred income taxes
4,084
4,379
Asset retirement obligations
3,727
3,789
Regulatory liabilities
6,586
5,990
Operating lease liabilities
75
75
Accrued pension and other post-retirement benefit costs
45
57
Investment tax credits
302
301
Other (includes $20 at 2024 and $17 at 2023 related to VIEs)
652
581
Total other noncurrent liabilities
15,471
15,172
Commitments and Contingencies
Equity
Member's equity
18,318
16,913
Accumulated other comprehensive loss
(6)
(6)
Total equity
18,312
16,907
Total Liabilities and Equity
$
54,309
$
52,110
See Notes to Condensed Consolidated Financial Statements
16
FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
1,405
$
1,121
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)
1,504
1,380
Equity component of AFUDC
(85)
(69)
Gains on sales of other assets
—
(26)
Impairment of assets and other charges
32
70
Deferred income taxes
(105)
(7)
Contributions to qualified pension plans
(26)
(26)
Payments for asset retirement obligations
(131)
(145)
Provision for rate refunds
(7)
(35)
(Increase) decrease in
Receivables
(136)
(4)
Receivables from affiliated companies
1
225
Inventory
2
(257)
Other current assets
(3)
(439)
Increase (decrease) in
Accounts payable
149
(523)
Accounts payable to affiliated companies
35
12
Taxes accrued
105
121
Other current liabilities
(226)
(48)
Other assets
652
526
Other liabilities
(121)
105
Net cash provided by operating activities
3,045
1,981
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(2,923)
(2,646)
Purchases of debt and equity securities
(1,712)
(1,594)
Proceeds from sales and maturities of debt and equity securities
1,712
1,594
Net proceeds from the sales of other assets
—
30
Notes receivable from affiliated companies
(177)
—
Other
(289)
(215)
Net cash used in investing activities
(3,389)
(2,831)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
1,031
2,764
Payments for the redemption of long-term debt
(17)
(1,040)
Notes payable to affiliated companies
(668)
(902)
Other
(1)
(1)
Net cash provided by financing activities
345
821
Net increase (decrease) in cash, cash equivalents and restricted cash
1
(29)
Cash, cash equivalents and restricted cash at beginning of period
19
53
Cash, cash equivalents and restricted cash at end of period
$
20
$
24
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
611
$
534
See Notes to Condensed Consolidated Financial Statements
17
FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Accumulated Other
Comprehensive
Loss
Member's
Net Losses on
Total
(in millions)
Equity
Cash Flow Hedges
Equity
Balance at June 30, 2023
$
15,990
$
(6)
$
15,984
Net income
579
—
579
Other
(3)
—
(3)
Balance at September 30, 2023
$
16,566
$
(6)
$
16,560
Balance at June 30, 2024
$
17,714
$
(6)
$
17,708
Net income
584
—
584
Other
20
—
20
Balance at September 30, 2024
$
18,318
$
(6)
$
18,312
Nine Months Ended September 30, 2023 and 2024
Accumulated Other
Comprehensive
Loss
Member's
Net Losses on
Total
(in millions)
Equity
Cash Flow Hedges
Equity
Balance at December 31, 2022
$
15,448
$
(6)
$
15,442
Net income
1,121
—
1,121
Other
(3)
—
(3)
Balance at September 30, 2023
$
16,566
$
(6)
$
16,560
Balance at December 31, 2023
$
16,913
$
(6)
$
16,907
Net income
1,405
1,405
Balance at September 30, 2024
$
18,318
$
(6)
$
18,312
See Notes to Condensed Consolidated Financial Statements
18
FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
3,860
$
4,055
$
10,445
$
10,315
Operating Expenses
Fuel used in electric generation and purchased power
1,384
1,535
3,729
3,902
Operation, maintenance and other
653
711
1,869
1,963
Depreciation and amortization
640
563
1,795
1,609
Property and other taxes
170
205
494
546
Impairment of assets and other charges
(3)
24
6
29
Total operating expenses
2,844
3,038
7,893
8,049
Gains on Sales of Other Assets and Other, net
7
8
20
20
Operating Income
1,023
1,025
2,572
2,286
Other Income and Expenses, net
56
49
178
146
Interest Expense
271
241
796
706
Income Before Income Taxes
808
833
1,954
1,726
Income Tax Expense
130
131
320
280
Net Income
$
678
$
702
$
1,634
$
1,446
Other Comprehensive Income, net of tax
Unrealized gains on available-for-sale securities
1
—
1
2
Other Comprehensive Income, net of tax
1
—
1
2
Comprehensive Income
$
679
$
702
$
1,635
$
1,448
See Notes to Condensed Consolidated Financial Statements
19
FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
82
$
59
Receivables (net of allowance for doubtful accounts of $41 at 2024 and $18 at 2023)
939
225
Receivables of VIEs (net of allowance for doubtful accounts of $38 at 2024 and $56 at 2023)
822
1,365
Receivables from affiliated companies
12
90
Inventory (includes $477 at 2024 and $462 at 2023 related to VIEs)
2,006
1,901
Regulatory assets (includes $107 at 2024 and $98 at 2023 related to VIEs)
952
1,661
Other (includes $46 at 2024 and $68 at 2023 related to VIEs)
103
134
Total current assets
4,916
5,435
Property, Plant and Equipment
Cost
71,653
67,644
Accumulated depreciation and amortization
(23,450)
(22,300)
Net property, plant and equipment
48,203
45,344
Other Noncurrent Assets
Goodwill
3,655
3,655
Regulatory assets (includes $1,528 at 2024 and $1,446 at 2023 related to VIEs)
6,560
6,430
Nuclear decommissioning trust funds
5,005
4,457
Operating lease right-of-use assets, net
643
617
Other
1,269
1,156
Total other noncurrent assets
17,132
16,315
Total Assets
$
70,251
$
67,094
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $199 at 2024 and $188 at 2023 related to VIEs)
$
1,386
$
1,374
Accounts payable to affiliated companies
551
464
Notes payable to affiliated companies
805
1,043
Taxes accrued
435
259
Interest accrued
242
224
Current maturities of long-term debt (includes $502 at 2024 and $418 at 2023 related to VIEs)
1,418
661
Asset retirement obligations
227
245
Regulatory liabilities
377
418
Other
801
860
Total current liabilities
6,242
5,548
Long-Term Debt (includes $1,581 at 2024 and $1,910 at 2023 related to VIEs)
22,646
22,948
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
5,221
5,197
Asset retirement obligations
4,496
3,900
Regulatory liabilities
5,478
5,083
Operating lease liabilities
570
544
Accrued pension and other post-retirement benefit costs
251
266
Investment tax credits
372
371
Other (includes $13 at 2024 and $19 at 2023 related to VIEs)
455
227
Total other noncurrent liabilities
16,843
15,588
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2024 and 2023
—
—
Additional paid-in capital
11,830
11,830
Retained earnings
12,549
11,040
Accumulated other comprehensive loss
(9)
(10)
Total equity
24,370
22,860
Total Liabilities and Equity
$
70,251
$
67,094
See Notes to Condensed Consolidated Financial Statements
20
FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
1,634
$
1,446
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)
2,081
2,021
Equity component of AFUDC
(54)
(49)
Impairment of assets and other charges
6
29
Deferred income taxes
(19)
(38)
Contributions to qualified pension plans
(23)
(22)
Payments for asset retirement obligations
(221)
(212)
Provision for rate refunds
(1)
(24)
(Increase) decrease in
Receivables
(185)
(198)
Receivables from affiliated companies
78
2
Inventory
(95)
(224)
Other current assets
841
399
Increase (decrease) in
Accounts payable
194
(177)
Accounts payable to affiliated companies
87
(206)
Taxes accrued
179
357
Other current liabilities
12
4
Other assets
(504)
183
Other liabilities
127
(10)
Net cash provided by operating activities
4,137
3,281
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(3,891)
(3,607)
Purchases of debt and equity securities
(1,561)
(1,108)
Proceeds from sales and maturities of debt and equity securities
1,644
1,151
Other
(351)
(239)
Net cash used in investing activities
(4,159)
(3,803)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
849
1,272
Payments for the redemption of long-term debt
(460)
(440)
Notes payable to affiliated companies
(238)
140
Dividends to parent
(125)
(500)
Other
(1)
(1)
Net cash provided by financing activities
25
471
Net increase (decrease) in cash, cash equivalents and restricted cash
3
(51)
Cash, cash equivalents and restricted cash at beginning of period
135
184
Cash, cash equivalents and restricted cash at end of period
$
138
$
133
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
628
$
558
See Notes to Condensed Consolidated Financial Statements
21
FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Accumulated Other Comprehensive Loss
Net
Net Unrealized
Additional
Losses on
Gains (Losses) on
Pension and
Paid-in
Retained
Cash Flow
Available-for-
OPEB
Total
(in millions)
Capital
Earnings
Hedges
Sale Securities
Adjustments
Equity
Balance at June 30, 2023
$
11,830
$
10,329
$
(1)
$
(6)
$
(2)
$
22,150
Net income
—
702
—
—
—
702
Dividends to parent
—
(500)
—
—
—
(500)
Other
—
(1)
—
—
—
(1)
Balance at September 30, 2023
$
11,830
$
10,530
$
(1)
$
(6)
$
(2)
$
22,351
Balance at June 30, 2024
$
11,849
$
11,996
$
(1)
$
(5)
$
(4)
$
23,835
Net income
—
678
—
—
—
678
Other comprehensive income
—
—
—
1
—
1
Dividends to parent
—
(125)
—
—
—
(125)
Other
(19)
—
—
—
—
(19)
Balance at September 30, 2024
$
11,830
$
12,549
$
(1)
$
(4)
$
(4)
$
24,370
Nine Months Ended September 30, 2023 and 2024
Accumulated Other Comprehensive Loss
Net
Net Unrealized
Additional
Losses on
Gains (Losses) on
Pension and
Paid-in
Retained
Cash Flow
Available-for-
OPEB
Total
Capital
Earnings
Hedges
Sale Securities
Adjustments
Equity
Balance at December 31, 2022
$
11,832
$
9,585
$
(1)
$
(8)
$
(2)
$
21,406
Net income
—
1,446
—
—
—
1,446
Other comprehensive income
—
—
—
2
—
2
Dividends to parent
—
(500)
—
—
—
(500)
Other
(2)
(1)
—
—
—
(3)
Balance at September 30, 2023
$
11,830
$
10,530
$
(1)
$
(6)
$
(2)
$
22,351
Balance at December 31, 2023
$
11,830
$
11,040
$
(1)
$
(5)
$
(4)
$
22,860
Net income
—
1,634
—
—
—
1,634
Other comprehensive income
—
—
—
1
—
1
Dividends to parent
—
(125)
—
—
—
(125)
Balance at September 30, 2024
$
11,830
$
12,549
$
(1)
$
(4)
$
(4)
$
24,370
See Notes to Condensed Consolidated Financial Statements
22
FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
1,914
$
1,886
$
5,338
$
4,844
Operating Expenses
Fuel used in electric generation and purchased power
679
651
1,896
1,685
Operation, maintenance and other
376
345
1,077
1,051
Depreciation and amortization
354
324
999
935
Property and other taxes
43
48
144
143
Impairment of assets and other charges
(3)
24
6
31
Total operating expenses
1,449
1,392
4,122
3,845
Gains on Sales of Other Assets and Other, net
1
1
2
2
Operating Income
466
495
1,218
1,001
Other Income and Expenses, net
34
31
107
92
Interest Expense
127
109
370
315
Income Before Income Taxes
373
417
955
778
Income Tax Expense
48
49
135
101
Net Income and Comprehensive Income
$
325
$
368
$
820
$
677
See Notes to Condensed Consolidated Financial Statements
23
FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
46
$
18
Receivables (net of allowance for doubtful accounts of $10 at 2024 and $8 at 2023)
178
139
Receivables of VIEs (net of allowance for doubtful accounts of $38 at 2024 and $36 at 2023)
822
833
Receivables from affiliated companies
14
16
Inventory
1,320
1,227
Regulatory assets (includes $47 at 2024 and $39 at 2023 related to VIEs)
691
942
Other (includes $27 at 2024 and $31 at 2023 related to VIEs)
62
72
Total current assets
3,133
3,247
Property, Plant and Equipment
Cost
41,720
39,283
Accumulated depreciation and amortization
(15,947)
(15,227)
Net property, plant and equipment
25,773
24,056
Other Noncurrent Assets
Regulatory assets (includes $774 at 2024 and $643 at 2023 related to VIEs)
4,489
4,546
Nuclear decommissioning trust funds
4,657
4,075
Operating lease right-of-use assets, net
353
318
Other
719
682
Total other noncurrent assets
10,218
9,621
Total Assets
$
39,124
$
36,924
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
502
$
634
Accounts payable to affiliated companies
322
332
Notes payable to affiliated companies
610
891
Taxes accrued
193
176
Interest accrued
86
114
Current maturities of long-term debt (includes $443 at 2024 and $34 at 2023 related to VIEs)
983
72
Asset retirement obligations
225
244
Regulatory liabilities
295
300
Other
442
481
Total current liabilities
3,658
3,244
Long-Term Debt (includes $809 at 2024 and $1,079 at 2023 related to VIEs)
11,190
11,492
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
2,552
2,560
Asset retirement obligations
4,293
3,626
Regulatory liabilities
4,778
4,375
Operating lease liabilities
337
293
Accrued pension and other post-retirement benefit costs
138
146
Investment tax credits
130
129
Other (includes $13 at 2024 and $12 at 2023 related to VIEs)
271
102
Total other noncurrent liabilities
12,499
11,231
Commitments and Contingencies
Equity
Member's Equity
11,627
10,807
Total Liabilities and Equity
$
39,124
$
36,924
See Notes to Condensed Consolidated Financial Statements
24
FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
820
$
677
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)
1,144
1,077
Equity component of AFUDC
(44)
(38)
Impairment of assets and other charges
6
31
Deferred income taxes
(32)
(12)
Contributions to qualified pension plans
(14)
(13)
Payments for asset retirement obligations
(153)
(166)
Provision for rate refunds
(1)
(24)
(Increase) decrease in
Receivables
(15)
5
Receivables from affiliated companies
2
(7)
Inventory
(93)
(135)
Other current assets
288
(189)
Increase (decrease) in
Accounts payable
(74)
(38)
Accounts payable to affiliated companies
(10)
(256)
Taxes accrued
17
178
Other current liabilities
14
(25)
Other assets
(101)
175
Other liabilities
118
23
Net cash provided by operating activities
1,872
1,263
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(2,036)
(1,756)
Purchases of debt and equity securities
(1,452)
(973)
Proceeds from sales and maturities of debt and equity securities
1,451
969
Other
(130)
(114)
Net cash used in investing activities
(2,167)
(1,874)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
670
991
Payments for the redemption of long-term debt
(67)
(364)
Notes payable to affiliated companies
(281)
452
Distributions to parent
—
(500)
Other
—
(1)
Net cash provided by financing activities
322
578
Net increase (decrease) in cash, cash equivalents and restricted cash
27
(33)
Cash, cash equivalents and restricted cash at beginning of period
51
79
Cash, cash equivalents and restricted cash at end of period
$
78
$
46
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
256
$
206
See Notes to Condensed Consolidated Financial Statements
25
FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended
September 30, 2023 and 2024
(in millions)
Member's Equity
Balance at June 30, 2023
$
10,618
Net income
368
Distributions to Parent
(500)
Balance at September 30, 2023
$
10,486
Balance at June 30, 2024
$
11,302
Net income
325
Balance at September 30, 2024
$
11,627
Nine Months Ended
September 30, 2023 and 2024
(in millions)
Member's Equity
Balance at December 31, 2022
$
10,309
Net income
677
Distributions to Parent
(500)
Balance at September 30, 2023
$
10,486
Balance at December 31, 2023
$
10,807
Net income
820
Balance at September 30, 2024
$
11,627
See Notes to Condensed Consolidated Financial Statements
26
FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
1,940
$
2,164
$
5,092
$
5,456
Operating Expenses
Fuel used in electric generation and purchased power
705
885
1,833
2,218
Operation, maintenance and other
272
361
779
898
Depreciation and amortization
286
239
796
674
Property and other taxes
127
157
350
403
Impairment of assets and other charges
—
—
—
(1)
Total operating expenses
1,390
1,642
3,758
4,192
Gains on Sales of Other Assets and Other, net
1
—
2
1
Operating Income
551
522
1,336
1,265
Other Income and Expenses, net
21
19
67
56
Interest Expense
114
103
339
305
Income Before Income Taxes
458
438
1,064
1,016
Income Tax Expense
94
91
212
206
Net Income
$
364
$
347
$
852
$
810
Other Comprehensive Income, net of tax
Unrealized gains on available-for-sale securities
—
—
—
2
Other Comprehensive Income, net of tax
$
—
$
—
$
—
$
2
Comprehensive Income
$
364
$
347
$
852
$
812
See Notes to Condensed Consolidated Financial Statements
27
FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
16
$
24
Receivables (net of allowance for doubtful accounts of $31 at 2024 and $11 at 2023)
760
83
Receivables of VIEs (net of allowance for doubtful accounts of $0 at 2024 and $20 at 2023)
—
532
Receivables from affiliated companies
2
238
Inventory (includes $477 at 2024 and $462 at 2023 related to VIEs)
686
674
Regulatory assets (includes $60 at 2024 and $59 at 2023 related to VIEs)
261
720
Other (includes $19 at 2024 and $37 at 2023 related to VIEs)
40
51
Total current assets
1,765
2,322
Property, Plant and Equipment
Cost
29,924
28,353
Accumulated depreciation and amortization
(7,496)
(7,067)
Net property, plant and equipment
22,428
21,286
Other Noncurrent Assets
Regulatory assets (includes $754 at 2024 and $803 at 2023 related to VIEs)
2,071
1,883
Nuclear decommissioning trust funds
349
382
Operating lease right-of-use assets, net
290
299
Other
497
429
Total other noncurrent assets
3,207
2,993
Total Assets
$
27,400
$
26,601
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $199 at 2024 and $188 at 2023 related to VIEs)
$
882
$
738
Accounts payable to affiliated companies
127
135
Notes payable to affiliated companies
195
152
Taxes accrued
238
185
Interest accrued
127
86
Current maturities of long-term debt (includes $59 at 2024 and $384 at 2023 related to VIEs)
436
589
Asset retirement obligations
2
1
Regulatory liabilities
82
118
Other
330
350
Total current liabilities
2,419
2,354
Long-Term Debt (includes $772 at 2024 and $831 at 2023 related to VIEs)
9,812
9,812
Other Noncurrent Liabilities
Deferred income taxes
2,765
2,733
Asset retirement obligations
203
274
Regulatory liabilities
700
708
Operating lease liabilities
234
251
Accrued pension and other post-retirement benefit costs
92
98
Investment tax credits
242
242
Other (includes $0 at 2024 and $6 at 2023 related to VIEs)
161
86
Total other noncurrent liabilities
4,397
4,392
Commitments and Contingencies
Equity
Member's equity
10,777
10,048
Accumulated other comprehensive loss
(5)
(5)
Total equity
10,772
10,043
Total Liabilities and Equity
$
27,400
$
26,601
See Notes to Condensed Consolidated Financial Statements
28
FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
852
$
810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
936
943
Equity component of AFUDC
(11)
(10)
Impairment of assets and other charges
—
(1)
Deferred income taxes
13
(42)
Equity in (earnings) losses of unconsolidated affiliates
—
1
Contributions to qualified pension plans
(9)
(9)
Payments for asset retirement obligations
(68)
(46)
(Increase) decrease in
Receivables
(171)
(203)
Receivables from affiliated companies
236
(1)
Inventory
(2)
(89)
Other current assets
541
516
Increase (decrease) in
Accounts payable
266
(140)
Accounts payable to affiliated companies
(8)
(23)
Taxes accrued
56
289
Other current liabilities
(3)
23
Other assets
(391)
12
Other liabilities
27
(14)
Net cash provided by operating activities
2,264
2,016
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(1,855)
(1,851)
Purchases of debt and equity securities
(109)
(135)
Proceeds from sales and maturities of debt and equity securities
193
182
Other
(222)
(125)
Net cash used in investing activities
(1,993)
(1,929)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
179
281
Payments for the redemption of long-term debt
(393)
(76)
Notes payable to affiliated companies
43
(313)
Distributions to parent
(125)
—
Other
(1)
(1)
Net cash used in financing activities
(297)
(109)
Net decrease in cash, cash equivalents and restricted cash
(26)
(22)
Cash, cash equivalents and restricted cash at beginning of period
67
86
Cash, cash equivalents and restricted cash at end of period
$
41
$
64
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
372
$
352
See Notes to Condensed Consolidated Financial Statements
29
FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Losses on
Member's
Available-for-Sale
Total
(in millions)
Equity
Securities
Equity
Balance at June 30, 2023
$
9,494
$
(6)
$
9,488
Net income
347
—
347
Other
1
—
1
Balance at September 30, 2023
$
9,842
$
(6)
$
9,836
Balance at June 30, 2024
$
10,555
$
(5)
$
10,550
Net income
364
—
364
Distributions to parent
(125)
—
(125)
Other
(17)
—
(17)
Balance at September 30, 2024
$
10,777
$
(5)
$
10,772
Nine Months Ended September 30, 2023 and 2024
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Gains (Losses) on
Member's
Available-for-Sale
Total
(in millions)
Equity
Securities
Equity
Balance at December 31, 2022
$
9,031
$
(8)
$
9,023
Net income
810
—
810
Other comprehensive income
—
2
2
Other
1
—
1
Balance at September 30, 2023
$
9,842
$
(6)
$
9,836
Balance at December 31, 2023
$
10,048
$
(5)
$
10,043
Net income
852
—
852
Distributions to parent
(125)
—
(125)
Other
2
—
2
Balance at September 30, 2024
$
10,777
$
(5)
$
10,772
See Notes to Condensed Consolidated Financial Statements
30
FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
Regulated electric
$
497
$
472
$
1,431
$
1,411
Regulated natural gas
108
105
460
464
Total operating revenues
605
577
1,891
1,875
Operating Expenses
Fuel used in electric generation and purchased power
146
145
416
485
Cost of natural gas
18
6
100
118
Operation, maintenance and other
131
114
378
358
Depreciation and amortization
102
90
297
266
Property and other taxes
99
94
303
258
Total operating expenses
496
449
1,494
1,485
Operating Income
109
128
397
390
Other Income and Expenses, net
2
12
12
33
Interest Expense
52
46
144
125
Income Before Income Taxes
59
94
265
298
Income Tax Expense
7
14
42
47
Net Income and Comprehensive Income
$
52
$
80
$
223
$
251
See Notes to Condensed Consolidated Financial Statements
31
FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
8
$
24
Receivables (net of allowance for doubtful accounts of $41 at 2024 and $9 at 2023)
401
112
Receivables from affiliated companies
11
239
Notes receivable from affiliated companies
33
—
Inventory
173
179
Regulatory assets
98
73
Other
43
134
Total current assets
767
761
Property, Plant and Equipment
Cost
13,784
13,210
Accumulated depreciation and amortization
(3,640)
(3,451)
Net property, plant and equipment
10,144
9,759
Other Noncurrent Assets
Goodwill
920
920
Regulatory assets
678
676
Operating lease right-of-use assets, net
8
16
Other
94
84
Total other noncurrent assets
1,700
1,696
Total Assets
$
12,611
$
12,216
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
285
$
338
Accounts payable to affiliated companies
62
71
Notes payable to affiliated companies
198
613
Taxes accrued
247
316
Interest accrued
55
35
Current maturities of long-term debt
150
—
Asset retirement obligations
7
6
Regulatory liabilities
59
56
Other
68
65
Total current liabilities
1,131
1,500
Long-Term Debt
3,989
3,493
Long-Term Debt Payable to Affiliated Companies
25
25
Other Noncurrent Liabilities
Deferred income taxes
1,324
1,272
Asset retirement obligations
130
130
Regulatory liabilities
475
497
Operating lease liabilities
8
16
Accrued pension and other post-retirement benefit costs
93
97
Other
94
86
Total other noncurrent liabilities
2,124
2,098
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2024 and 2023
762
762
Additional paid-in capital
3,119
3,100
Retained earnings
1,461
1,238
Total equity
5,342
5,100
Total Liabilities and Equity
$
12,611
$
12,216
See Notes to Condensed Consolidated Financial Statements
32
FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
223
$
251
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
300
269
Equity component of AFUDC
(4)
(7)
Deferred income taxes
30
7
Contributions to qualified pension plans
(5)
(5)
Payments for asset retirement obligations
(5)
(9)
(Increase) decrease in
Receivables
47
(23)
Receivables from affiliated companies
57
103
Inventory
6
(24)
Other current assets
57
103
Increase (decrease) in
Accounts payable
(32)
(69)
Accounts payable to affiliated companies
(9)
(1)
Taxes accrued
(69)
(70)
Other current liabilities
26
(29)
Other assets
44
(39)
Other liabilities
(43)
(8)
Net cash provided by operating activities
623
449
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(640)
(676)
Net proceeds from the sales of other assets
—
75
Notes receivable from affiliated companies
(199)
(11)
Other
(29)
(53)
Net cash used in investing activities
(868)
(665)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
645
749
Payments for the redemption of long-term debt
—
(300)
Notes payable to affiliated companies
(415)
(224)
Other
(1)
(5)
Net cash provided by financing activities
229
220
Net decrease (increase) in cash and cash equivalents
(16)
4
Cash and cash equivalents at beginning of period
24
16
Cash and cash equivalents at end of period
$
8
$
20
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
94
$
134
See Notes to Condensed Consolidated Financial Statements
33
FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Additional
Common
Paid-in
Retained
Total
(in millions)
Stock
Capital
Earnings
Equity
Balance at June 30, 2023
$
762
$
3,100
$
1,075
$
4,937
Net income
—
—
80
80
Balance at September 30, 2023
$
762
$
3,100
$
1,155
$
5,017
Balance at June 30, 2024
$
762
$
3,119
$
1,409
$
5,290
Net income
—
—
52
52
Balance at September 30, 2024
$
762
$
3,119
$
1,461
$
5,342
Nine Months Ended September 30, 2023 and 2024
Additional
Common
Paid-in
Retained
Total
(in millions)
Stock
Capital
Earnings
Equity
Balance at December 31, 2022
$
762
$
3,100
$
904
$
4,766
Net income
—
—
251
251
Balance at September 30, 2023
$
762
$
3,100
$
1,155
$
5,017
Balance at December 31, 2023
$
762
$
3,100
$
1,238
$
5,100
Net income
—
—
223
223
Other
—
19
—
19
Balance at September 30, 2024
$
762
$
3,119
$
1,461
$
5,342
See Notes to Condensed Consolidated Financial Statements
34
FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
836
$
851
$
2,342
$
2,606
Operating Expenses
Fuel used in electric generation and purchased power
267
283
761
980
Operation, maintenance and other
169
160
510
524
Depreciation and amortization
166
173
507
500
Property and other taxes
7
17
37
42
Total operating expenses
609
633
1,815
2,046
Operating Income
227
218
527
560
Other Income and Expenses, net
16
30
44
58
Interest Expense
58
53
173
157
Income Before Income Taxes
185
195
398
461
Income Tax Expense
29
36
65
82
Net Income
$
156
$
159
$
333
$
379
Other Comprehensive Loss, net of tax
Pension and OPEB adjustments
—
—
(1)
—
Comprehensive Income
$
156
$
159
$
332
$
379
See Notes to Condensed Consolidated Financial Statements
35
FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
8
$
8
Receivables (net of allowance for doubtful accounts of $16 at 2024 and $5 at 2023)
416
156
Receivables from affiliated companies
5
197
Inventory
580
582
Regulatory assets
105
102
Other
77
98
Total current assets
1,191
1,143
Property, Plant and Equipment
Cost
19,897
18,900
Accumulated depreciation and amortization
(6,837)
(6,501)
Net property, plant and equipment
13,060
12,399
Other Noncurrent Assets
Regulatory assets
1,013
894
Operating lease right-of-use assets, net
42
50
Other
384
325
Total other noncurrent assets
1,439
1,269
Total Assets
$
15,690
$
14,811
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
261
$
300
Accounts payable to affiliated companies
61
176
Notes payable to affiliated companies
11
256
Taxes accrued
61
66
Interest accrued
74
54
Current maturities of long-term debt
4
4
Asset retirement obligations
152
120
Regulatory liabilities
165
209
Other
198
184
Total current liabilities
987
1,369
Long-Term Debt
4,647
4,348
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
1,571
1,436
Asset retirement obligations
1,126
689
Regulatory liabilities
1,411
1,459
Operating lease liabilities
38
46
Accrued pension and other post-retirement benefit costs
94
115
Investment tax credits
186
186
Other
15
—
Total other noncurrent liabilities
4,441
3,931
Commitments and Contingencies
Equity
Member's equity
5,465
5,012
Accumulated other comprehensive income
—
1
Total equity
5,465
5,013
Total Liabilities and Equity
$
15,690
$
14,811
See Notes to Condensed Consolidated Financial Statements
36
FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
333
$
379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
510
503
Equity component of AFUDC
(13)
(7)
Deferred income taxes
87
15
Contributions to qualified pension plans
(8)
(8)
Payments for asset retirement obligations
(60)
(57)
Provision for rate refunds
(20)
—
(Increase) decrease in
Receivables
36
(23)
Receivables from affiliated companies
1
(12)
Inventory
2
(112)
Other current assets
36
209
Increase (decrease) in
Accounts payable
(29)
(86)
Accounts payable to affiliated companies
(74)
(32)
Taxes accrued
(5)
(4)
Other current liabilities
12
107
Other assets
(83)
(62)
Other liabilities
3
26
Net cash provided by operating activities
728
836
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(711)
(699)
Purchases of debt and equity securities
(31)
(53)
Proceeds from sales and maturities of debt and equity securities
22
42
Notes receivable from affiliated companies
(117)
156
Other
(24)
(50)
Net cash used in investing activities
(861)
(604)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
298
495
Payments for the redemption of long-term debt
—
(300)
Notes payable to affiliated companies
(245)
(234)
Capital contribution from parent
235
—
Distributions to parent
(154)
(209)
Other
(1)
(1)
Net cash provided by (used in) financing activities
133
(249)
Net increase (decrease) in cash and cash equivalents
—
(17)
Cash and cash equivalents at beginning of period
8
31
Cash and cash equivalents at end of period
$
8
$
14
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
104
$
94
See Notes to Condensed Consolidated Financial Statements
37
FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Accumulated Other
Comprehensive Income
Member's
Pension and
Total
(in millions)
Equity
OPEB Adjustments
Equity
Balance at June 30, 2023
$
4,826
$
1
$
4,827
Net income
159
—
159
Distributions to parent
(50)
—
(50)
Balance at September 30, 2023
$
4,935
$
1
$
4,936
Balance at June 30, 2024
$
5,401
$
—
$
5,401
Net income
156
—
156
Distributions to parent
(93)
—
(93)
Other
1
—
1
Balance at September 30, 2024
$
5,465
$
—
$
5,465
Nine Months Ended September 30, 2023 and 2024
Accumulated Other
Comprehensive Income (Loss)
Member's
Pension and
Total
(in millions)
Equity
OPEB Adjustments
Equity
Balance at December 31, 2022
$
4,702
$
1
$
4,703
Net income
379
—
379
Distributions to parent
(146)
—
(146)
Balance at September 30, 2023
$
4,935
$
1
$
4,936
Balance at December 31, 2023
$
5,012
$
1
$
5,013
Net income
333
—
333
Contributions from parent
235
—
235
Distributions to parent
(113)
—
(113)
Other
(2)
(1)
(3)
Balance at September 30, 2024
$
5,465
$
—
$
5,465
See Notes to Condensed Consolidated Financial Statements
38
FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating Revenues
$
219
$
208
$
1,139
$
1,119
Operating Expenses
Cost of natural gas
52
51
280
316
Operation, maintenance and other
87
77
267
248
Depreciation and amortization
65
59
191
175
Property and other taxes
16
16
47
46
Impairment of assets and other charges
—
—
—
(4)
Total operating expenses
220
203
785
781
Operating (Loss) Income
(1)
5
354
338
Other Income and Expenses, net
14
17
48
49
Interest Expense
47
41
135
120
(Loss) Income Before Income Taxes
(34)
(19)
267
267
Income Tax (Benefit) Expense
(10)
(5)
49
46
Net (Loss) Income and Comprehensive (Loss) Income
$
(24)
$
(14)
$
218
$
221
See Notes to Condensed Consolidated Financial Statements
39
FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30, 2024
December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents
$
4
$
—
Receivables (net of allowance for doubtful accounts of $12 at 2024 and $11 at 2023)
126
311
Receivables from affiliated companies
12
10
Inventory
58
112
Regulatory assets
154
161
Other
80
7
Total current assets
434
601
Property, Plant and Equipment
Cost
12,619
11,908
Accumulated depreciation and amortization
(2,398)
(2,259)
Net property, plant and equipment
10,221
9,649
Other Noncurrent Assets
Goodwill
49
49
Regulatory assets
427
410
Operating lease right-of-use assets, net
4
4
Investments in equity method unconsolidated affiliates
78
78
Other
284
276
Total other noncurrent assets
842
817
Total Assets
$
11,497
$
11,067
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
196
$
315
Accounts payable to affiliated companies
64
54
Notes payable to affiliated companies
513
538
Taxes accrued
53
89
Interest accrued
50
39
Current maturities of long-term debt
150
40
Regulatory liabilities
91
98
Other
75
77
Total current liabilities
1,192
1,250
Long-Term Debt
3,853
3,628
Other Noncurrent Liabilities
Deferred income taxes
1,007
933
Asset retirement obligations
27
26
Regulatory liabilities
958
988
Operating lease liabilities
8
10
Accrued pension and other post-retirement benefit costs
6
8
Other
176
172
Total other noncurrent liabilities
2,182
2,137
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2024 and 2023
1,635
1,635
Retained earnings
2,634
2,416
Total Piedmont Natural Gas Company, Inc. stockholder's equity
4,269
4,051
Noncontrolling interests
1
1
Total equity
4,270
4,052
Total Liabilities and Equity
$
11,497
$
11,067
See Notes to Condensed Consolidated Financial Statements
40
FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
218
$
221
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
193
177
Equity component of AFUDC
(17)
(15)
Impairment of assets and other charges
—
(4)
Deferred income taxes
54
52
Equity in earnings from unconsolidated affiliates
(6)
(6)
Contributions to qualified pension plans
(3)
(3)
(Increase) decrease in
Receivables
185
335
Receivables from affiliated companies
(2)
(1)
Inventory
54
83
Other current assets
(71)
(63)
Increase (decrease) in
Accounts payable
(39)
(78)
Accounts payable to affiliated companies
10
(3)
Taxes accrued
(36)
(30)
Other current liabilities
8
25
Other assets
(15)
(23)
Other liabilities
8
7
Net cash provided by operating activities
541
674
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(800)
(774)
Other
(44)
(32)
Net cash used in investing activities
(844)
(806)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
373
348
Payments for the redemption of long-term debt
(40)
—
Notes payable to affiliated companies
(26)
(216)
Net cash provided by financing activities
307
132
Net increase in cash and cash equivalents
4
—
Cash and cash equivalents at beginning of period
—
—
Cash and cash equivalents at end of period
$
4
$
—
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures
$
143
$
149
See Notes to Condensed Consolidated Financial Statements
41
FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended September 30, 2023 and 2024
Total
Piedmont
Natural Gas
Common
Retained
Company, Inc.
Noncontrolling
Total
(in millions)
Stock
Earnings
Equity
Interests
Equity
Balance at June 30, 2023
$
1,635
$
2,272
$
3,907
$
1
$
3,908
Net loss
—
(14)
(14)
—
(14)
Balance at September 30, 2023
$
1,635
$
2,258
$
3,893
$
1
$
3,894
Balance at June 30, 2024
$
1,635
$
2,658
$
4,293
$
1
$
4,294
Net loss
—
(24)
(24)
—
(24)
Balance at September 30, 2024
$
1,635
$
2,634
$
4,269
$
1
$
4,270
Nine Months Ended September 30, 2023 and 2024
Total
Piedmont
Natural Gas
Common
Retained
Company, Inc.
Noncontrolling
Total
(in millions)
Stock
Earnings
Equity
Interests
Equity
Balance at December 31, 2022
$
1,635
$
2,037
$
3,672
$
1
$
3,673
Net income
—
221
221
—
221
Balance at September 30, 2023
$
1,635
$
2,258
$
3,893
$
1
$
3,894
Balance at December 31, 2023
$
1,635
$
2,416
$
4,051
$
1
$
4,052
Net income
—
218
218
—
218
Balance at September 30, 2024
$
1,635
$
2,634
$
4,269
$
1
$
4,270
See Notes to Condensed Consolidated Financial Statements
42
FINANCIAL STATEMENTS
ORGANIZATION AND BASIS OF PRESENTATION
Index to Combined Notes to Condensed Consolidated Financial Statements
The unaudited notes to the Condensed Consolidated Financial Statements that follow are a combined presentation. The following list indicates the registrants to which the footnotes apply.
Applicable Notes
Registrant
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Duke Energy
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Carolinas
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Progress Energy
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Progress
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Florida
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Ohio
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Indiana
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Piedmont
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Tables within the notes may not sum across due to (i) Progress Energy's consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances.
1. ORGANIZATION AND BASIS OF PRESENTATION
BASIS OF PRESENTATION
These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and notes required by GAAP for annual financial statements and should be read in conjunction with the Consolidated Financial Statements in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.
The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Condensed Consolidated Financial Statements. However, none of the registrants make any representations as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself.
These Condensed Consolidated Financial Statements, in the opinion of the respective companies’ management, reflect all normal recurring adjustments necessary to fairly present the financial position and results of operations of each of the Duke Energy Registrants. Amounts reported in Duke Energy’s interim Condensed Consolidated Statements of Operations and each of the Subsidiary Registrants’ interim Condensed Consolidated Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to effects of seasonal temperature variations on energy consumption, regulatory rulings, timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors.
In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
BASIS OF CONSOLIDATION
These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 13 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities.
Discontinued Operations
Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. Unless otherwise noted, the notes to these condensed consolidated financial statements exclude amounts related to discontinued operations for all periods presented. For the nine months ended September 30, 2024, and 2023, the Income (Loss) From Discontinued Operations, net of tax on Duke Energy's Condensed Consolidated Statements of Operations includes amounts related to noncontrolling interests. A portion of Noncontrolling interests on Duke Energy's Condensed Consolidated Balance Sheets relates to discontinued operations for the periods presented. See Note 2 for discussion of discontinued operations related to the Commercial Renewables Disposal Groups.
NONCONTROLLING INTEREST
Duke Energy maintains a controlling financial interest in certain less than wholly owned subsidiaries. As a result, Duke Energy consolidates these subsidiaries and presents the third-party investors' portion of Duke Energy's net income (loss), net assets and comprehensive income (loss) as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Condensed Consolidated Balance Sheets. Operating agreements of Duke Energy's subsidiaries with noncontrolling interest allocate profit and loss based on their pro rata shares of the ownership interest in the respective subsidiary. Therefore, Duke Energy allocates net income or loss and other comprehensive income or loss of these subsidiaries to the owners based on their pro rata shares.
43
FINANCIAL STATEMENTS
ORGANIZATION AND BASIS OF PRESENTATION
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 11 and 13 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.The following table presents the components of cash, cash equivalents and restricted cash included in the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Duke
Energy
Progress
Energy
Energy
Energy
Carolinas
Energy
Progress
Florida
Energy
Carolinas
Energy
Progress
Florida
Current Assets
Cash and cash equivalents
$
376
$
13
$
82
$
46
$
16
$
253
$
9
$
59
$
18
$
24
Other
51
6
45
27
18
76
9
67
31
36
Other Noncurrent Assets
Other
18
1
11
5
7
16
1
9
2
7
Total cash, cash equivalents and restricted cash
$
445
$
20
$
138
$
78
$
41
$
345
$
19
$
135
$
51
$
67
INVENTORY
Provisions for inventory write-offs were not material at September 30, 2024, and December 31, 2023. The components of inventory are presented in the tables below.
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Materials and supplies
$
3,229
$
1,076
$
1,580
$
1,052
$
528
$
141
$
381
$
12
Coal
810
360
232
161
71
21
197
—
Natural gas, oil and other fuel
299
46
194
107
87
11
2
46
Total inventory
$
4,338
$
1,482
$
2,006
$
1,320
$
686
$
173
$
580
$
58
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Materials and supplies
$
3,086
$
1,075
$
1,465
$
963
$
502
$
139
$
361
$
12
Coal
842
364
231
154
77
28
219
—
Natural gas, oil and other fuel
364
45
205
110
95
12
2
100
Total inventory
$
4,292
$
1,484
$
1,901
$
1,227
$
674
$
179
$
582
$
112
OTHER NONCURRENT ASSETS
Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of $150 million related to the arrangement in Other within Other noncurrent assets on the Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023. The asset is recorded in the EU&I segment at historical cost and is subject to impairment testing should circumstances indicate the carrying value may not be recoverable.
ACCOUNTS PAYABLE
Duke Energy has a voluntary supply chain finance program (the “program”) that allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to a global financial institution at a rate that leverages Duke Energy’s credit rating and which may result in favorable terms compared to the rate available to the supplier on their own credit rating. Suppliers participating in the program determine at their sole discretion, which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact Duke Energy’s payment terms, which are based on commercial terms negotiated between Duke Energy and the supplier regardless of program participation. The commercial terms negotiated between Duke Energy and its suppliers are consistent regardless of whether the supplier elects to participate in the program. Duke Energy does not issue any guarantees with respect to the program and does not participate in negotiations between suppliers and the financial institution. Duke Energy does not have an economic interest in the supplier’s decision to participate in the program and receives no interest, fees or other benefit from the financial institution based on supplier participation in the program.
44
FINANCIAL STATEMENTS
ORGANIZATION AND BASIS OF PRESENTATION
The following table represents the changes in confirmed obligations outstanding for the nine months ended September 30, 2024, and 2023.
Three Months Ended September 30, 2023 and 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Confirmed obligations outstanding at June 30, 2023
$
40
$
5
$
14
$
12
$
2
$
2
$
—
$
19
Invoices confirmed during the period
47
2
11
2
9
4
—
30
Confirmed invoices paid during the period
(18)
(4)
(8)
(3)
(5)
—
—
(6)
Confirmed obligations outstanding at September 30, 2023
$
69
$
3
$
17
$
11
$
6
$
6
$
—
$
43
Confirmed obligations outstanding at June 30, 2024
$
28
$
—
$
—
$
—
$
—
$
—
$
—
$
28
Invoices confirmed during the period
26
—
1
—
1
—
—
25
Confirmed invoices paid during the period
(28)
—
—
—
—
—
—
(28)
Confirmed obligations outstanding at September 30, 2024
$
26
$
—
$
1
$
—
$
1
$
—
$
—
$
25
Nine Months Ended September 30, 2023 and 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Confirmed obligations outstanding at December 31, 2022
$
87
$
6
$
19
$
8
$
11
$
5
$
—
$
57
Invoices confirmed during the period
161
22
53
25
28
7
—
79
Confirmed invoices paid during the period
(179)
(25)
(55)
(22)
(33)
(6)
—
(93)
Confirmed obligations outstanding at September 30, 2023
$
69
$
3
$
17
$
11
$
6
$
6
$
—
$
43
Confirmed obligations outstanding at December 31, 2023
$
50
$
—
$
3
$
—
$
3
$
—
$
—
$
47
Invoices confirmed during the period
146
—
2
—
2
—
—
144
Confirmed invoices paid during the period
(170)
—
(4)
—
(4)
—
—
(166)
Confirmed obligations outstanding at September 30, 2024
$
26
$
—
$
1
$
—
$
1
$
—
$
—
$
25
NEW ACCOUNTING STANDARDS
No new accounting standards were adopted by the Duke Energy Registrants in 2024.
2. DISPOSITIONS
Sale of Commercial Renewables Segment
In 2023, Duke Energy completed the sale of substantially all the assets in the Commercial Renewables business segment. Duke Energy closed on the transaction with Brookfield on October 25, 2023, for proceeds of $1.1 billion, with approximately half of the proceeds received at closing and the remainder due 18 months after closing. The balance of the remaining proceeds to be received of $545 million is included in Receivable from sales of Commercial Renewables Disposal Groups, as of September 30, 2024, and $531 million is included in Other, within Other Noncurrent Assets, as of December 31, 2023, on Duke Energy's Consolidated Balance Sheets. The disposal process for the remaining assets is expected to be completed in 2024, with net proceeds from the dispositions not anticipated to be material.
Assets Held For Sale and Discontinued Operations
The Commercial Renewables Disposal Groups were classified as held for sale and as discontinued operations in the fourth quarter of 2022. No interest from corporate level debt was allocated to discontinued operations and no adjustments were made to the historical activity within the Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or the Consolidated Statements of Changes in Equity. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented.
45
FINANCIAL STATEMENTS
DISPOSITIONS
The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in Duke Energy's Consolidated Balance Sheets.
(in millions)
September 30, 2024
December 31, 2023
Current Assets Held for Sale
Other
$
4
$
14
Total current assets held for sale
4
14
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost
101
247
Accumulated depreciation and amortization
(24)
(57)
Net property, plant and equipment
77
190
Operating lease right-of-use assets, net
4
4
Other
—
3
Total other noncurrent assets held for sale
4
7
Total Assets Held for Sale
$
85
$
211
Current Liabilities Associated with Assets Held for Sale
Accounts payable
$
19
$
9
Taxes accrued
1
3
Current maturities of long-term debt
43
5
Unrealized losses on commodity hedges
11
68
Other
3
37
Total current liabilities associated with assets held for sale
77
122
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt
—
39
Operating lease liabilities
5
5
Asset retirement obligations
5
8
Unrealized losses on commodity hedges
61
94
Other
14
11
Total other noncurrent liabilities associated with assets held for sale
85
157
Total Liabilities Associated with Assets Held for Sale
$
162
$
279
As of September 30, 2024, and December 31, 2023, the noncontrolling interest balance is $17 million and $66 million, respectively.
The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Income (Loss) from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Operating revenues
$
2
$
103
$
9
$
293
Operation, maintenance and other
3
93
19
270
Property and other taxes
—
8
1
27
Other income and expenses, net
—
(2)
—
(9)
Interest expense
1
10
3
53
Loss on disposal
17
169
22
1,603
Loss before income taxes
(19)
(179)
(36)
(1,669)
Income tax benefit
(44)
(27)
(48)
(353)
Income (Loss) from discontinued operations
$
25
$
(152)
$
12
$
(1,316)
Add: Net (income) loss attributable to noncontrolling interest included in discontinued operations
(3)
(38)
(3)
33
Net income (loss) from discontinued operations attributable to Duke Energy Corporation
$
22
$
(190)
$
9
$
(1,283)
The Commercial Renewables Disposal Groups' assets held for sale amounts presented above reflect pretax impairments recorded against property, plant and equipment of approximately $131 million and $278 million as of September 30, 2024, and December 31, 2023, respectively. The carrying amounts for the remaining assets will be updated, if necessary, based on final disposition amounts.
46
FINANCIAL STATEMENTS
DISPOSITIONS
Duke Energy has elected not to separately disclose discontinued operations on Duke Energy's Consolidated Statements of Cash Flows. The following table summarizes Duke Energy's cash flows from discontinued operations related to the Commercial Renewables Disposal Groups.
Nine Months Ended
September 30,
(in millions)
2024
2023
Cash flows provided by (used in):
Operating activities
$
6
$
545
Investing activities
(13)
(597)
Other Sale-Related Matters
Duke Energy (Parent) and several Duke Energy renewables project companies, located in the ERCOT market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to all but one of the project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. In May 2024, the remaining claim in the lawsuit was transferred to the buyer in connection with the sale of a portion of the remaining Commercial Renewables assets. See Note 5 for more information.
As part of the purchase and sale agreement for the distributed generation group, Duke Energy has agreed to retain certain guarantees, with expiration dates between 2029 through 2034, related to tax equity partners' assets and operations that will be disposed of via sale. Duke Energy has obtained certain guarantees from the buyers in regards to future performance obligations to assist in limiting Duke Energy's exposure under the retained guarantees. The fair value of the guarantees is immaterial as Duke Energy does not believe conditions are likely for performance under these guarantees.
3. BUSINESS SEGMENTS
Duke Energy
Duke Energy's segment structure includes the following two segments: EU&I and GU&I.
The EU&I segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. EU&I also includes Duke Energy's electric transmission infrastructure investments and the offshore wind contract for Carolina Long Bay.
The GU&I segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky and Duke Energy's natural gas storage, midstream pipeline and renewable natural gas investments.
The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's ownership interest in NMC.
Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
Three Months Ended September 30, 2024
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Eliminations
Total
Unaffiliated revenues
$
7,833
$
309
$
8,142
$
12
$
—
$
8,154
Intersegment revenues
19
23
42
30
(72)
—
Total revenues
$
7,852
$
332
$
8,184
$
42
$
(72)
$
8,154
Segment income (loss)(a)(b)
$
1,451
$
(25)
$
1,426
$
(222)
$
—
$
1,204
Add: Noncontrolling interests
34
Add: Preferred dividends
39
Add: Preferred redemption costs
16
Discontinued operations
22
Net Income
$
1,315
Segment assets
$
161,471
$
17,852
$
179,323
$
4,243
$
—
$
183,566
47
FINANCIAL STATEMENTS
BUSINESS SEGMENTS
Three Months Ended September 30, 2023
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Eliminations
Total
Unaffiliated revenues
$
7,695
$
291
$
7,986
$
8
$
—
$
7,994
Intersegment revenues
20
22
42
25
(67)
—
Total revenues
$
7,715
$
313
$
8,028
$
33
$
(67)
$
7,994
Segment income (loss)(c)
$
1,447
$
15
$
1,462
$
(59)
$
—
$
1,403
Add: Noncontrolling interests
69
Add: Preferred dividends
39
Discontinued operations
(190)
Net Loss
$
1,321
(a)EU&I includes $17 million recorded within Operating Revenues on the Condensed Consolidated Statements of Operations and GU&I includes $1 million recorded within Operations, maintenance and other and $3 million recorded within Other income and expenses on the Condensed Consolidated Statements of Operations related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.
(b)Other includes $16 million recorded as Preferred Redemption Costs on the Condensed Consolidated Statements of Operations related to the redemption of Series B Preferred Stock. Refer to Note 15 for further information.
(c)EU&I includes $95 million recorded within Impairment of assets and other charges and $16 million within Operations, maintenance and other on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations related primarily to Duke Energy Carolinas' North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order.
Nine Months Ended September 30, 2024
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Eliminations
Total
Unaffiliated revenues
$
21,420
$
1,547
$
22,967
$
30
$
—
$
22,997
Intersegment revenues
55
68
123
90
(213)
—
Total revenues
$
21,475
$
1,615
$
23,090
$
120
$
(213)
$
22,997
Segment income (loss)(a)(b)
$
3,562
$
265
$
3,827
$
(625)
$
—
$
3,202
Add: Noncontrolling interests
68
Add: Preferred dividends
92
Add: Preferred redemption costs
16
Discontinued operations
9
Net Income
$
3,387
Nine Months Ended September 30, 2023
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Eliminations
Total
Unaffiliated revenues
$
20,308
$
1,516
$
21,824
$
24
$
—
$
21,848
Intersegment revenues
55
67
122
74
(196)
—
Total revenues
$
20,363
$
1,583
$
21,946
$
98
$
(196)
$
21,848
Segment income (loss)(c)
$
3,088
$
327
$
3,415
$
(388)
$
—
$
3,027
Add: Noncontrolling interests
42
Add: Preferred dividends
92
Discontinued operations
(1,283)
Net Income
$
1,878
(a)EU&I includes $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations, related to the Duke Energy Carolinas' South Carolina rate case order. Additionally, EU&I includes $17 million recorded within Operating Revenues on the Condensed Consolidated Statements of Operations and GU&I includes $1 million recorded within Operations, maintenance and other and $3 million recorded within Other income and expenses on the Condensed Consolidated Statements of Operations related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.
(b)Other includes $16 million recorded as Preferred Redemption Costs on the Condensed Consolidated Statements of Operations related to the redemption of Series B Preferred Stock. Refer to Note 15 for further information.
48
FINANCIAL STATEMENTS
BUSINESS SEGMENTS
(c)EU&I includes $95 million recorded within Impairment of assets and other charges and $16 million within Operations, maintenance and other on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations related primarily to Duke Energy Carolinas' North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order.
Duke Energy Ohio
Duke Energy Ohio has two reportable segments, EU&I and GU&I. The remainder of Duke Energy Ohio's operations is presented as Other.
Three Months Ended September 30, 2024
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Eliminations
Total
Total revenues
$
497
$
108
$
605
$
—
$
—
$
605
Segment income (loss)/Net income
$
57
$
(4)
$
53
$
(1)
$
—
$
52
Segment assets
$
8,096
$
4,456
$
12,552
$
13
$
46
$
12,611
Three Months Ended September 30, 2023
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Total
Total revenues
$
472
$
105
$
577
$
—
$
577
Segment income (loss)/Net income
$
65
$
17
$
82
$
(2)
$
80
Nine Months Ended September 30, 2024
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Total
Total revenues
$
1,431
$
460
$
1,891
$
—
$
1,891
Segment income (loss)/Net income
$
181
$
46
$
227
$
(4)
$
223
Nine Months Ended September 30, 2023
Electric
Gas
Total
Utilities and
Utilities and
Reportable
(in millions)
Infrastructure
Infrastructure
Segments
Other
Total
Total revenues
$
1,411
$
464
$
1,875
$
—
$
1,875
Segment income (loss)/Net income
$
168
$
87
$
255
$
(4)
$
251
4. REGULATORY MATTERS
RATE-RELATED INFORMATION
The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. The FERC also regulates certification and siting of new interstate natural gas pipeline projects. For open regulatory matters, unless otherwise noted, the Subsidiary Registrants and Duke Energy Kentucky cannot predict the outcome or ultimate resolution of their respective matters.
As discussed further below, the Subsidiary Registrants were impacted by significant storms in 2024. Each Subsidiary Registrant is responsible for the restoration of service within its respective service territory and the recovery of related storm costs, including financing costs and, as applicable, the replenishment of storm-related reserves. The Subsidiary Registrants are considering all available avenues to recover storm-related costs, including insurance recovery and the securitization for certain costs, where applicable. Total storm restoration costs across the Subsidiary Registrants, including capital expenditures, for hurricanes Helene, Debby and Milton are estimated to be in the range of $2.4 billion to $2.9 billion and are expected to primarily impact the following registrants:
(in millions)
Cost Estimate Range(a)
Duke Energy Carolinas
$
950
-
$
1,150
Duke Energy Progress
350
-
450
Duke Energy Florida
1,100
-
1,300
(a) These estimates do not include amounts for rebuilding certain damaged infrastructure, as estimates of such costs are not yet available, and will change as restoration work is completed and additional information is received on actual costs incurred. Duke Energy Florida was the only jurisdiction materially impacted by Hurricane Milton.
49
FINANCIAL STATEMENTS
REGULATORY MATTERS
Hurricane Helene
In late September 2024, Hurricane Helene made landfall in Florida as a Category 4 storm and subsequently impacted all of Duke Energy's service territories as the storm moved inland, with the most severe damage occurring in the Duke Energy Florida territory and the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina. Approximately 3.5 million customers were impacted across Duke Energy's system. As of September 30, 2024, Duke Energy's restoration costs incurred, including capital of $112 million, were approximately $582 million (primarily $261 million, $51 million and $251 million for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively). Approximately $451 million of the operation and maintenance expenses are deferred in regulatory assets on the Condensed Consolidated Balance Sheets as of September 30, 2024 (primarily $177 million, $34 million and $236 million for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively). Total storm restoration costs, including capital expenditures, for Duke Energy are currently estimated to be in the range of $1.5 billion to $1.9 billion (primarily $900 million to $1.1 billion for Duke Energy Carolinas, $300 million to $400 million for Duke Energy Progress and $300 million to $400 million for Duke Energy Florida). These estimates do not include amounts for rebuilding certain damaged infrastructure, as estimates of such costs are not yet available, and will change as restoration work is completed and additional information is received on actual costs incurred.
Hurricane Debby
In August 2024, Hurricane Debby made landfall in Florida as a Category 1 storm, impacting primarily the Duke Energy Florida territory as well as the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina. Approximately 700,000 customers were impacted across Duke Energy's system. As of September 30, 2024, Duke Energy's restoration costs incurred, including capital expenditures of $11 million, were approximately $150 million (primarily $45 million, $45 million and $60 million for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively). Approximately $90 million of the operation and maintenance expenses are deferred in regulatory assets on the Condensed Consolidated Balance Sheets as of September 30, 2024 (primarily $23 million, $13 million and $54 million for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively). These estimates could change as additional information is received on actual costs incurred.
Duke Energy Carolinas and Duke Energy Progress
Nuclear Station Subsequent License Renewal
On June 7, 2021, Duke Energy Carolinas filed a subsequent license renewal (SLR) application for the Oconee Nuclear Station (ONS) with the U.S. Nuclear Regulatory Commission (NRC) to renew ONS’s operating license for an additional 20 years. The SLR would extend operations of the facility from 60 to 80 years. The current licenses for units 1 and 2 expire in 2033 and the license for unit 3 expires in 2034. By a Federal Register Notice dated July 28, 2021, the NRC provided a 60-day comment period for persons whose interest may be affected by the issuance of a subsequent renewed license for ONS to file a request for a hearing and a petition for leave to intervene. On September 27, 2021, Beyond Nuclear and Sierra Club (Petitioners) filed a Hearing Request and Petition to Intervene (Hearing Request) and a Petition for Waiver. The Hearing Request proposed three contentions and claimed that Duke Energy Carolinas did not satisfy the National Environmental Policy Act (NEPA) of 1969, as amended, or the NRC’s NEPA-implementing regulations. Following Duke Energy Carolinas' answer and the Petitioners' reply, on February 11, 2022, the Atomic Safety and Licensing Board (ASLB) issued its decision on the Hearing Request and found that the Petitioners failed to establish that the proposed contentions are litigable. The ASLB also denied the Petitioners' Petition for Waiver and terminated the Hearing Request proceeding.
On February 24, 2022, the NRC issued a decision in the SLR appeal related to Florida Power and Light's Turkey Point nuclear generating station in Florida. The NRC ruled that the NRC’s license renewal Generic Environmental Impact Statement (GEIS) does not apply to SLR because the GEIS does not address SLR. The decision overturned a 2020 NRC decision that found the GEIS applies to SLR. Although Turkey Point is not owned or operated by a Duke Energy Registrant, the NRC’s order applies to all SLR applicants, including ONS. The NRC order also indicated no subsequent renewed licenses will be issued until the NRC staff has completed an adequate NEPA review for each application. On April 5, 2022, the NRC approved a 24-month rulemaking plan that will enable the NRC staff to complete an adequate NEPA review. Although an SLR applicant may wait until the rulemaking is completed, the NRC also noted that an applicant may submit a supplement to its environmental report providing information on environmental impacts during the SLR period prior to the rulemaking being completed. On November 7, 2022, Duke Energy Carolinas submitted a supplement to its environmental report addressing environmental impacts during the SLR period. On March 6, 2024, the NRC staff submitted the rulemaking, which included the updated GEIS, to the NRC. The NRC approved the publication of the final rule on May 16, 2024. The updated GEIS was finalized and published on August 1, 2024, and the final rule was issued on August 6, 2024.
2024年3月14日，卡羅萊納州杜克能源公司向NCUC提交了建造和運營申請二現有馬歇爾蒸汽站現場的氫能先進級單循環燃氣輪機(CT)。這個二新的CT-總計約850兆瓦-將使馬歇爾1號和2號燃煤機組退役，並提供增量產能以支持系統容量需求，並擴大靈活性以支持可再生能源的整合。正在等待監管部門的批准，建設計劃於2026年開始，CTS的目標是在2028年底投入使用。作爲申請的一部分，Duke Energy Carolinas指出，擬議設施的在建工程將計入AFUDC，不會在費率基礎上，因此不會影響Duke Energy Carolinas在建設期間對北卡羅來納州的零售收入要求。2029年，北卡羅來納州對擬議設施的零售收入要求估計爲$1042000萬，相當於大約平均零售率增加了2.2在所有班級中的百分比。專家證人聽證會於2024年8月6日結束。訂單預計不遲於2024年12月31日與NCUC在卡羅萊納州資源計劃進行中的訂單同時發佈。
2023年8月18日，NCUC發佈了一項命令，批准Duke Energy Progress的PBR申請，該申請經部分和解和該命令修改，包括整體零售收入增加$233在第一年達到100萬美元，126第2年爲100萬美元，135第3年爲4,000,000美元，合計爲3,000,000美元4941000萬美元。該命令的關鍵方面包括批准北卡羅來納州針對歷史基本情況的零售費率基數約爲$12.21,000億美元和資本項目及相關成本將包括在三年制MYRP，包括#美元3.5200億(北卡羅來納州零售分配)預計將在MYRP期間投入使用。該訂單確立了淨資產收益率爲9.8%基於股權比率：53%，經批准，但有某些調整、折舊率、電網改進計劃費用和某些延期COV的回收與身份證相關的費用。此外，《住宅脫鉤機制》和《私營部門管理計劃》已根據方案預算審查申請的要求獲得批准，並由部分解決辦法加以修訂。作爲這一訂單的結果，Duke Energy Progress確認稅前費用爲#美元28在資產減值和其他費用內減值100萬美元，主要與某些新冠肺炎遞延成本有關，以及8在截至2023年9月30日的三個月和九個月內，在運營、維護和其他方面，根據簡明綜合運營報表。Duke Energy Progress於2023年6月1日實施臨時費率，但可退款，並於2023年10月1日實施修訂後的第1年費率和住宅脫鉤。
2023年10月17日，CIGFUR II和海伍德電氣會員公司分別提交了2023年8月18日NCUC命令的上訴通知。雙方都在就不影響稅率案中整體收入要求的某些事項提出上訴。具體地說，他們對階層間補貼減少百分比提出了上訴，CIGFUR II也對客戶援助計劃和等百分比燃料成本分配方法提出了上訴。2023年11月6日，AGO就NCUC關於將電動汽車收入排除在住宅脫鉤機制之外的裁決提交了交叉上訴通知書。2023年11月9日，杜軍KE Energy Progress、公共工作人員、CIGFUR II和其他一些各方達成和解，根據和解協議，CIGFUR II同意不再就客戶幫助計劃提起上訴。2024年7月，北卡羅來納州最高法院合併了上訴與NCUC關於Duke Energy Carolinas PBR申請的命令的平行上訴. 簡報會定於2024年12月31日前完成。杜克能源進步公司預計將在2025年第三季度之前做出決定。
2024年3月28日，杜克能源進步公司向NCUC提交了建造和運營1,360-在現有Roxboro工廠所在地的Person縣，擁有兆瓦氫氣能力的先進聯合循環發電設施(CC)。根據最終合同條款的談判，新的Roxboro CC將與北卡羅來納州電力會員公司(NCEMC)共同擁有，Duke Energy Progress擁有大約1,135MW和NCEMC擁有剩餘股份225兆瓦。正在等待監管部門的批准，計劃於2026年開工建設，CC計劃在2028年底投入使用。CC將允許Roxboro的1號和4號燃煤機組退役。作爲申請的一部分，Duke Energy Progress指出，在擬議設施的建設期內恢復在建工作可能會在未來的費率案件中進行。2029年，北卡羅來納州對擬議設施的零售收入要求估計爲$982000萬，相當於大約平均零售率增加了2.6在所有班級中的百分比。專家證人聽證會於2024年8月8日結束。訂單預計不遲於2024年12月31日與NCUC在卡羅萊納州資源計劃進行中的訂單同時發佈。
2021年和解協議還包含一項收回或回流稅法變化影響的條款。由於2022年8月16日頒佈的IRA，Duke Energy Florida有資格獲得與2022年1月開始投入使用的太陽能設施相關的PTC。佛羅里達州杜克能源公司於2022年10月17日向FPSC提交請願書，要求從2023年1月1日起將基本稅率降低美元56 通過調整容量成本回收條款，回流預期的2023年PTC，並回流預期的2022年PTC。2022年12月14日，FPSC發佈命令，批准佛羅里達杜克能源公司的請願書。
除這些條款外，2021年和解協議還包含與Crystal River 4-5號機組加速折舊相關的條款，批准約爲美元1 未來投資10億美元用於新的具有成本效益的太陽能、實施新的電動汽車充電站計劃以及與實施佛羅里達州杜克能源公司的願景佛羅里達計劃相關的成本推遲和回收，該計劃探索了各種新興的非碳排放發電技術、分佈式技術和彈性項目等。2021年和解協議還解決了颶風邁克爾和颶風多里安剩餘的未收回風暴成本。
Duke Energy Ohio filed with the PUCO an electric distribution base rate case application on October 1, 2021, with supporting testimony filed on October 15, 2021, requesting an increase in electric distribution base rates of approximately $55 million. On September 19, 2022, Duke Energy Ohio filed a Stipulation and Recommendation with the PUCO, which includes an increase in overall electric distribution base rates of approximately $23 million with an equity ratio of 50.5% and an ROE of 9.5%. The stipulation is among all but one party to the proceeding. The PUCO issued an order on December 14, 2022, approving the Stipulation without material modification. Rates went into effect on January 3, 2023. The Ohio Consumers' Counsel filed an application for rehearing on January 13, 2023, arguing the Stipulation was unreasonable, discriminatory, and denied OCC due process. On March 20, 2024, the PUCO issued its Second Entry on Rehearing, denying OCC's rehearing application. The deadline for OCC to seek an appeal has expired and the matter is now closed.
54
FINANCIAL STATEMENTS
REGULATORY MATTERS
Duke Energy Ohio Natural Gas Base Rate Case
Duke Energy Ohio filed with the PUCO a natural gas base rate case application on June 30, 2022, with supporting testimony filed on July 14, 2022, requesting an increase in natural gas base rates of approximately $49 million. The drivers for this case are capital invested since Duke Energy Ohio's last natural gas base rate case in 2012. Duke Energy Ohio also sought to adjust the caps on its CEP rider. On April 28, 2023, Duke Energy Ohio filed a stipulation with all parties to the case except the OCC. In the stipulation, the parties agreed to approximately $32 million in revenue increases with an equity ratio of 52.32% and an ROE of 9.6%, and adjustments to the CEP Rider caps. The stipulation was opposed by the OCC at an evidentiary hearing that concluded on May 24, 2023. On November 1, 2023, PUCO issued an order approving the stipulation as filed. New rates went into effect November 1, 2023. On December 1, 2023, the OCC filed an application for rehearing. On December 13, 2023, the PUCO granted OCC's application for rehearing for further consideration of issues raised. As a result of a Supreme Court of Ohio decision regarding procedural issues related to applications for rehearing, PUCO denied OCC’s rehearing request. On October 25, 2024, the OCC filed its Notice of Appeal with the Ohio Supreme Court.
Duke Energy Ohio Electric Security Plan
On April 1, 2024, Duke Energy Ohio filed with the PUCO a request for an Electric Security Plan (ESP). The ESP application proposes a three-year term from June 1, 2025, through May 31, 2028, and includes continuation of market-based customer rates through competitive procurement processes for generation and continuation and expansion of existing rider mechanisms. Duke Energy Ohio is proposing a new rider mechanism relating to electric distribution infrastructure modernization programs, which may be enabled by and partially funded through federal or state funding opportunities, future battery storage projects, and two proposed electric vehicle programs. Additional proposed new rider mechanisms are related to solar for all investments for low-income and disadvantaged communities, low-income senior citizen bill assistance, and energy efficiency and demand-side management programs. At the request of Duke Energy Ohio, PUCO suspended the evidentiary hearing scheduled for November 13, 2024, in light of ongoing settlement discussions.
Duke Energy Kentucky Electric Base Rate Case
On December 1, 2022, Duke Energy Kentucky filed a rate case with the KPSC requesting an annualized increase in electric base rates of approximately $75 million. The request for rate increase was driven by capital investments to strengthen the electricity generation and delivery systems along with adjusted depreciation rates for the East Bend and Woodsdale Combustion Turbine (CT) generation stations. Duke Energy Kentucky also requested approval for new programs and tariff updates, including a voluntary community-based renewable subscription program and two electric vehicle charging programs. The KPSC issued an order on October 12, 2023, including a $48 million increase in base revenues, an ROE of 9.75% for electric base rates and 9.65% for electric riders and an equity ratio of 52.145%. New rates went into effect October 13, 2023. The Company's request to align the depreciation rates of East Bend with a 2035 retirement date was denied and the KPSC ordered depreciation rates with a 2041 retirement date for the unit. The KPSC did approve the request to align the depreciation rates of Woodsdale CT with a 2040 retirement date and denied the voluntary community-based renewable subscription program and the two electric vehicle charging programs.
On November 1, 2023, Duke Energy Kentucky filed for rehearing requesting certain matters be reconsidered by the KPSC. On November 21, 2023, KPSC granted in part and denied in part the Company's request for rehearing. On February 15, 2024, the KPSC issued a briefing schedule for the rehearing process. The briefing concluded on April 1, 2024, and the matter was submitted for decision on April 2, 2024. On July 1, 2024, the KPSC issued its final order on rehearing, ruling in Duke Energy Kentucky's favor on nearly all issues. However, the KPSC ordered Duke Energy Kentucky to refund alleged over collections since the KPSC's October 12, 2023, order. On July 10, 2024, the KPSC issued an order correcting the base fuel rate used to calculate new base rates in its July 1, 2024, order and its calculation of Duke Energy Kentucky's Street Lighting Rate. New rates were implemented in August 2024.
On December 14, 2023, Duke Energy Kentucky filed an appeal with the Franklin County Circuit Court on certain matters for which the KPSC denied rehearing, specifically as it relates to including decommissioning costs in depreciation rates for East Bend and Woodsdale. Duke Energy Kentucky filed its initial brief in June 2024. Appellee briefs were filed September 24, 2024, and Duke Energy Kentucky's reply brief is due November 8, 2024.
Duke Energy Indiana
Indiana Coal Ash Recovery
In Duke Energy Indiana’s 2019 rate case, the IURC opened a subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana filed testimony on April 15, 2020, in the coal ash subdocket requesting recovery for the post-2018 coal ash basin closure costs for plans that have been approved by the Indiana Department of Environmental Management (IDEM) as well as continuing deferral, with carrying costs, on the balance. On November 3, 2021, the IURC issued an order allowing recovery for post-2018 coal ash basin closure costs for the plans that have been approved by IDEM, as well as continuing deferral, with carrying costs, on the balance. The OUCC and the Duke Industrial Group appealed. The Indiana Court of Appeals issued its opinion on February 21, 2023, reversing the IURC's order to the extent that it allowed Duke Energy Indiana to recover federally mandated costs incurred prior to the IURC's November 3, 2021 order. In addition, the court found that any costs incurred pre-petition to determine federally mandated compliance options were not specifically authorized by the statute and should also be disallowed.
In the second quarter of 2023, Duke Energy Indiana filed its proposal to remove from rates certain costs incurred prior to the IURC's November 3, 2021 order date. On September 20, 2023, the IURC approved the Company's proposal to remove the costs from its rates and assessed simple interest of the refunds of 4.71%, beginning from when the costs were initially recovered from customers. Duke Energy Indiana seeks to recover the pre-order costs denied by the Indiana Court of Appeals and certain future coal ash closure costs as part of depreciation costs in the 2024 Indiana Rate Case.
55
FINANCIAL STATEMENTS
REGULATORY MATTERS
Duke Energy Indiana filed a new petition under the amended version of the federal mandate statute for additional post-2018 coal ash closure costs for the remaining basins not included in the Indiana coal ash recovery case from 2020. An evidentiary hearing was held on January 25, 2024. On May 8, 2024, the IURC issued a CPCN and approved these coal ash related compliance projects as federally mandated compliance projects. On June 7, 2024, the Citizens Action Coalition of Indiana (CAC) filed a motion to appeal the IURC order granting the coal ash CPCN proceeding and approving the coal ash related compliance projects. CAC filed its appellant's brief on October 4, 2024. Appellees' briefs are due December 9, 2024.
TDSIC 2.0
On November 23, 2021, Duke Energy Indiana filed for approval of the Transmission, Distribution, Storage Improvement Charge 2.0 investment plan for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without modification, TDSIC 2.0, which includes approximately $2 billion in transmission and distribution investments selected to improve customer reliability, harden and improve resiliency of the grid, enable expansion of renewable and distributed energy projects and encourage economic development. In addition, the IURC set up a subdocket to consider a targeted economic development project, which the IURC approved on March 2, 2022. On July 15, 2022, the OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy Indiana’s TDSIC 2.0 proceeding. An appellant brief was filed on October 28, 2022, and Duke Energy Indiana filed its responsive brief on December 28, 2022. The Indiana Court of Appeals issued its opinion on March 9, 2023, affirming the IURC’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the Indiana Supreme Court. The Indiana Supreme Court granted transfer and held an oral argument on September 28, 2023, and the parties await the court's decision.
2024 Indiana Rate Case
On April 4, 2024, Duke Energy Indiana filed an application with the IURC for a rate increase of $492 million, representing an overall average bill increase of approximately 16.2%, which, if approved, would be added to retail customer bills in two steps, approximately 11.7% in 2025 and approximately 4.5% in 2026. Duke Energy Indiana requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by $1.6 billion in investments made since the last general rate case filed in 2019 in order to reliably serve customers, improve resiliency of the system, and advance environmental sustainability. An evidentiary hearing was completed on September 5, 2024, with briefing continuing until October 31, 2024. An order is anticipated by January 2025 with new rates effective in March 2025.
Piedmont
2024 North Carolina Rate Case
On April 1, 2024, Piedmont filed an application with the NCUC for a rate increase for retail customers. On September 13, 2024, Piedmont, the Public Staff and other intervening parties filed an Agreement and Stipulation of Settlement with the NCUC resolving all issues in the general rate case. The major components of the settlement include an overall average effective increase in net annual retail revenues of $88 million in the first year and $10 million of additional revenue after the first year. The settlement includes an ROE of 9.8% with an equity ratio of 52.3% and the addition of a rider mechanism for recovery of all pipeline integrity management operations and maintenance expenses. The settlement is subject to the review and approval of the NCUC. The evidentiary hearing concluded on September 18, 2024, and Piedmont implemented revised interim rates, subject to refund, November 1, 2024. An order is anticipated by January 2025.
5. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all Duke Energy Registrants.
Remediation Activities
In addition to AROs recorded as a result of various environmental regulations, the Duke Energy Registrants are responsible for environmental remediation at various sites. These include certain properties that are part of ongoing operations and sites formerly owned or used by Duke Energy entities. These sites are in various stages of investigation, remediation and monitoring. Managed in conjunction with relevant federal, state and local agencies, remediation activities vary based on site conditions and location, remediation requirements, complexity and sharing of responsibility. If remediation activities involve joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for environmental impacts caused by other potentially responsible parties and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. Liabilities are recorded when losses become probable and are reasonably estimable. The total costs that may be incurred cannot be estimated because the extent of environmental impact, allocation among potentially responsible parties, remediation alternatives and/or regulatory decisions have not yet been determined at all sites. Additional costs associated with remediation activities are likely to be incurred in the future and could be significant. Costs are typically expensed as Operation, maintenance and other on the Condensed Consolidated Statements of Operations unless regulatory recovery of the costs is deemed probable.
56
FINANCIAL STATEMENTS
COMMITMENTS AND CONTINGENCIES
The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Accounts Payable within Other Current Liabilities and Other within Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets.
(in millions)
September 30, 2024
December 31, 2023
Reserves for Environmental Remediation
Duke Energy
$
80
$
88
Duke Energy Carolinas
25
23
Progress Energy
19
19
Duke Energy Progress
9
9
Duke Energy Florida
10
10
Duke Energy Ohio
28
36
Duke Energy Indiana
2
2
Piedmont
7
7
Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation and monitoring for environmental sites that have been evaluated at this time are not material.
LITIGATION
For open litigation, unless otherwise noted, Duke Energy and the Subsidiary Registrants cannot predict the outcome or ultimate resolution of their respective matters.
Duke Energy
Texas Storm Uri Tort Litigation
Duke Energy (Parent), several Duke Energy renewables project companies, and others in the ERCOT market were named in multiple lawsuits arising out of Texas Storm Uri, which occurred in February 2021. These lawsuits seek recovery for property damage, personal injury and wrongful death allegedly caused by the power outages that plaintiffs claim were the collective failure of generators including Duke Energy entities, transmission and distribution operators (TDUs), retail energy providers, and all others, including ERCOT. The cases were consolidated into a Texas state court multidistrict litigation (MDL) proceeding for discovery and pre-trial motions. Five MDL cases were designated as lead cases in which motions to dismiss were filed and all other cases were stayed.
On January 28, 2023, the court denied certain motions including those by the generator defendants and TDUs and granted others. The generators and TDUs filed separate petitions for Writ of Mandamus to the Texas Court of Appeals seeking to overturn the denials. The TDUs' petition, filed first, was accepted and oral argument was held on October 23, 2023. In the cases against the generators, plaintiffs have dismissed the claims against Duke Energy (Parent). However, before Duke Energy (Parent) was dismissed from all cases, on December 14, 2023, without argument, the Court of Appeals accepted mandamus of the generator defendants’ appeal, which includes all Duke Energy entities, and directed the MDL court to dismiss all claims. Plaintiffs filed their Petition for Reconsideration on January 29, 2024, and the generator defendants responded on May 6, 2024. Regardless of the outcome of any motion for reconsideration or appeal, claims against Duke Energy (Parent) will remain dismissed. In October 2023, in conjunction with the closing of the sale of the utility-scale solar and wind group, all but one of the project company lawsuits transferred to Brookfield. In May 2024, the remaining claim in the lawsuit was transferred to the buyer in connection with the sale of a portion of the remaining Commercial Renewables assets. See Note 2 for more information related to the sale of the Commercial Renewables Disposal Groups.
Duke Energy Carolinas
NTE Carolinas II, LLC Litigation
In November 2017, Duke Energy Carolinas entered into a standard FERC large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC (NTE), a company that proposed to build a combined-cycle natural gas plant in Rockingham County, North Carolina. On September 6, 2019, Duke Energy Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for breach of contract, alleging that NTE's failure to pay benchmark payments for Duke Energy Carolinas' transmission system upgrades required under the interconnection agreement constituted a termination of the interconnection agreement. Duke Energy Carolinas sought a monetary judgment against NTE because NTE failed to make multiple milestone payments. The lawsuit was moved to federal court in North Carolina. NTE filed a motion to dismiss Duke Energy Carolinas’ complaint and brought counterclaims alleging anti-competitive conduct and violations of state and federal statutes. Duke Energy Carolinas filed a motion to dismiss NTE's counterclaims. Both NTE's and Duke Energy Carolinas' motions to dismiss were subsequently denied by the court.
On May 21, 2020, in response to a NTE petition challenging Duke Energy Carolinas' termination of the LGIA, FERC issued a ruling that 1) it has exclusive jurisdiction to determine whether a transmission provider may terminate an LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected to by the interconnection customer; and 3) Duke Energy may not announce the termination of a conforming LGIA unless FERC has approved the termination. FERC's Office of Enforcement also initiated an investigation of Duke Energy Carolinas into matters pertaining to the LGIA. On April 6, 2023, Duke Energy Carolinas received notice from the FERC Office of Enforcement that they have closed their non-public investigation with no further action recommended.
57
FINANCIAL STATEMENTS
COMMITMENTS AND CONTINGENCIES
Following completion of discovery, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the court issued an order partially granting Duke Energy Carolinas' motion by dismissing NTE's counterclaims that Duke Energy Carolinas engaged in anti-competitive behavior in violation of state and federal statutes. On October 12, 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation and a Stipulation of Dismissal was filed with the court on October 13, 2022. On November 11, 2022, NTE filed its Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit as to the district court's summary judgment ruling in Duke Energy Carolinas' favor on NTE's antitrust and unfair competition claims. Briefing on NTE's appeal was completed on June 30, 2023. Oral argument took place on May 7, 2024. On August 5, 2024, the U.S. Court of Appeals for the Fourth Circuit reversed the district court's grant of summary judgment and remanded the case back to the district court for further proceedings. On August 19, 2024, Duke Energy Carolinas filed a petition for rehearing, which is fully briefed and awaiting the court's decision.
Asbestos-related Injuries and Damages Claims
Duke Energy Carolinas has experienced numerous claims for indemnification and medical cost reimbursement related to asbestos exposure. These claims relate to damages for bodily injuries alleged to have arisen from exposure to or use of asbestos in connection with construction and maintenance activities conducted on its electric generation plants prior to 1985.
Duke Energy Carolinas has recognized asbestos-related reserves of $402 million at September 30, 2024, and $423 million at December 31, 2023. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Condensed Consolidated Balance Sheets. These reserves are based on Duke Energy Carolinas' best estimate for current and future asbestos claims through 2044 and are recorded on an undiscounted basis. In light of the uncertainties inherent in a longer-term forecast, management does not believe they can reasonably estimate the indemnity and medical costs that might be incurred after 2044 related to such potential claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in excess of the recorded reserves.
Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention. Receivables for insurance recoveries were $539 million at September 30, 2024, and $572 million at December 31, 2023. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Condensed Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.
The reserve for credit losses for insurance receivables is $9 million as of September 30, 2024, and December 31, 2023, for both Duke Energy and Duke Energy Carolinas. The insurance receivable is evaluated based on the risk of default and the historical losses, current conditions and expected conditions around collectability. Management evaluates the risk of default annually based on payment history, credit rating and changes in the risk of default from credit agencies.
Duke Energy Indiana
Coal Ash Insurance Coverage Litigation
In June 2022, Duke Energy Indiana filed a civil action in Indiana Superior Court against various insurance companies seeking declaratory relief with respect to insurance coverage for coal combustion residuals-related expenses and liabilities covered by third-party liability insurance policies. The insurance policies cover the 1969-1972 and 1984-1985 periods and provide third-party liability insurance for claims and suits alleging property damage, bodily injury and personal injury (or a combination thereof). A trial date has not yet been set.
On June 30, 2023, Duke Energy Indiana and Associated Electric and Gas Insurance Services (AEGIS) reached a confidential settlement, the results of which were not material to Duke Energy, and as a result, AEGIS was dismissed from the litigation on July 13, 2023. Duke Energy Indiana has also reached confidential settlements with other various insurance companies, the results of which were not material. In June 2024, Duke Energy Indiana filed an amended complaint adding several additional insurance companies as defendants to the litigation and the court entered an order staying the litigation until January 22, 2025.
Other Litigation and Legal Proceedings
The Duke Energy Registrants are involved in other legal, tax and regulatory proceedings arising in the ordinary course of business, some of which involve significant amounts. The Duke Energy Registrants believe the final disposition of these proceedings will not have a material effect on their results of operations, cash flows or financial position. Reserves are classified on the Condensed Consolidated Balance Sheets in Other within Other Noncurrent Liabilities and Other within Current Liabilities.
OTHER COMMITMENTS AND CONTINGENCIES
General
As part of their normal business, the Duke Energy Registrants are party to various financial guarantees, performance guarantees and other contractual commitments to extend guarantees of credit and other assistance to various subsidiaries, investees and other third parties. These guarantees involve elements of performance and credit risk, which are not fully recognized on the Condensed Consolidated Balance Sheets and have uncapped maximum potential payments. However, the Duke Energy Registrants do not believe these guarantees will have a material effect on their results of operations, cash flows or financial position.
In addition, the Duke Energy Registrants enter into various fixed-price, noncancelable commitments to purchase or sell power or natural gas, take-or-pay arrangements, transportation, or throughput agreements and other contracts that may or may not be recognized on their respective Condensed Consolidated Balance Sheets. Some of these arrangements may be recognized at fair value on their respective Condensed Consolidated Balance Sheets if such contracts meet the definition of a derivative and the NPNS exception does not apply. In most cases, the Duke Energy Registrants’ purchase obligation contracts contain provisions for price adjustments, minimum purchase levels and other financial commitments.
58
FINANCIAL STATEMENTS
DEBT AND CREDIT FACILITIES
6. DEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions).
Nine Months Ended September 30, 2024
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
January 2024(a)
January 2027
4.850
%
$
600
$
600
$
—
$
—
$
—
$
—
$
—
$
—
January 2024(a)
January 2029
4.850
%
650
650
—
—
—
—
—
—
April 2024(e)
April 2031
5.648
%
815
815
—
—
—
—
—
—
June 2024(d)
June 2034
5.450
%
750
750
—
—
—
—
—
—
June 2024(d)
June 2054
5.800
%
750
750
—
—
—
—
—
—
June 2024(h)
July 2031
5.900
%
80
—
—
—
—
80
—
—
June 2024(h)
July 2034
6.000
%
95
—
—
—
—
95
—
—
June 2024(h)
July 2039
6.170
%
50
—
—
—
—
50
—
—
August 2024(d)
February 2035
5.100
%
375
—
—
—
—
—
—
375
August 2024(i)
September 2054
6.450
%
1,000
1,000
—
—
—
—
—
—
Secured Debt
April 2024(f)
March 2044
5.404
%
177
—
—
177
—
—
—
—
First Mortgage Bonds
January 2024(b)
January 2034
4.850
%
$
575
$
—
$
575
$
—
—
$
—
$
—
$
—
January 2024(b)
January 2054
5.400
%
425
—
425
—
—
—
—
—
March 2024(b)
March 2034
5.250
%
300
—
—
—
—
—
300
—
March 2024(c)
March 2034
5.100
%
500
—
—
500
—
—
—
—
March 2024(d)
March 2054
5.550
%
425
—
—
—
—
425
—
—
April 2024(g)
April 2074
5.008
%
173
—
—
—
173
—
—
—
Total issuances
$
7,740
$
4,565
$
1,000
$
677
$
173
$
650
$
300
$
375
(a)Proceeds were used to repay the remaining $1 billion outstanding on Duke Energy (Parent)'s variable rate Term Loan Facility due March 2024, pay down a portion of short-term debt and for general corporate purposes. Duke Energy (Parent)'s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.
(b)Proceeds were used to pay down a portion of short-term debt and for general company purposes.
(c)Proceeds were used to fund eligible green energy projects, pay down a portion of short-term debt and for general company purposes.
(d)Proceeds were used to pay down a portion of short-term debt and for general corporate purposes.
(e)In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 10 for additional information.
(f)Proceeds were used to finance the South Carolina portion of restoration expenditures related to the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. See Notes 4 and 13 for more information.
(g)Debt has a floating interest rate. Proceeds were used to pay down a portion of the DEFR accounts receivable securitization facility due in April 2024, and for general company purposes. See Note 13 for more information.
(h)Debt issued by Duke Energy Kentucky with proceeds used to pay down a portion of short-term debt and for general corporate purposes.
(i)Duke Energy issued $1 billion of fixed-to-fixed reset rate junior subordinated debentures (the debentures) with proceeds used to redeem Duke Energy’s outstanding Series B Preferred Stock and for general corporate purposes. The debentures will bear interest at 6.45% until September 1, 2034, and thereafter the interest rate will reset every five years to the five-year U.S. Treasury rate plus a spread of 2.588%. The debentures have early redemption options and are callable on or after June 2034 for 100% of the principal plus accrued interest. See Note 15 for additional information.
59
FINANCIAL STATEMENTS
DEBT AND CREDIT FACILITIES
CURRENT MATURITIES OF LONG-TERM DEBT
The following table shows the significant components of Current maturities of long-term debt on the Condensed 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
September 30, 2024
Unsecured Debt
Duke Energy (Parent)
April 2025
3.364
%
$
420
Duke Energy (Parent)
April 2025
3.950
%
250
Duke Energy (Parent)
September 2025
0.900
%
650
Duke Energy Ohio
June 2025
6.900
%
150
Duke Energy Progress
August 2025
3.250
%
500
Piedmont
September 2025
3.600
%
150
Secured Debt
Duke Energy Carolinas(a)
January 2025
6.036
%
305
Duke Energy Carolinas(a)
January 2025
6.097
%
195
Duke Energy Progress(a)
April 2025
6.096
%
240
Duke Energy Progress(a)
April 2025
6.096
%
160
First Mortgage Bonds
Duke Energy Florida(a)(b)
October 2073
5.005
%
200
Duke Energy Florida(a)(b)
April 2074
5.008
%
173
Other(c)
204
Current maturities of long-term debt
$
3,597
(a)Debt has a floating interest rate.
(b)These first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets based on terms of the indentures, which could require repayment in less than 12 months if exercised by the bondholders.
(c)Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2024, Duke Energy extended the termination date of its existing $9 billion Master Credit Facility to March 2029. 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. An amendment in conjunction with the issuance of the Convertible Senior Notes due April 2026 clarifies that payments due as a result of a conversion of a convertible note would not constitute an event of default.
The table below includes the current borrowing sublimits and available capacity under these credit facilities.
September 30, 2024
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)
$
9,000
$
2,275
$
1,400
$
1,500
$
875
$
1,050
$
950
$
950
Reduction to backstop issuances
Commercial paper(b)
(3,526)
(1,526)
(300)
(698)
(175)
(206)
(160)
(461)
Outstanding letters of credit
(24)
(12)
(4)
(1)
(7)
—
—
—
Tax-exempt bonds
(81)
—
—
—
—
—
(81)
—
Available capacity under the Master Credit Facility
$
5,369
$
737
$
1,096
$
801
$
693
$
844
$
709
$
489
(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 on the Condensed Consolidated Balance Sheets.
60
FINANCIAL STATEMENTS
DEBT AND CREDIT FACILITIES
Duke Energy Term Loan Facility
On March 26, 2024, Duke Energy (Parent) entered into a 364-day term loan facility with commitments totaling $700 million. Any undrawn commitments could be drawn up until April 25, 2024, (30 days after the effective date of the agreement) or are otherwise ineligible to be drawn. On April 24, 2024, $500 million was drawn under the facility with borrowings used for general corporate purposes. Borrowings could be prepaid at any time throughout the term of the facility and the terms and conditions of the facility were generally consistent with those governing Duke Energy's Master Credit Facility. During the second quarter of 2024, Duke Energy (Parent) terminated the facility and repaid the $500 million in outstanding borrowings.
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida Term Loan Facilities
In November 2024, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida entered into term loan facilities intended to meet incremental financing needs resulting from expenditures for the restoration of service and rebuilding of infrastructure related to hurricanes Debby, Helene and Milton as described in Note 4. Duke Energy Carolinas and Duke Energy Progress entered into two-year term loan facilities with commitments totaling $700 million and $250 million, respectively. Duke Energy Florida entered into a 364-day term loan facility with commitments totaling $800 million. Amounts may be drawn for six months from the Duke Energy Carolinas and Duke Energy Progress term loan facilities and for four months from the Duke Energy Florida term loan facility. Borrowings from the term loan facilities can be prepaid at any time and may be used to fund system restoration expenses and for general corporate purposes. Additionally, the Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida term loan facilities may be increased by $300 million, $150 million and $400 million, respectively.
In November 2024, $50 million, $50 million and $100 million were drawn under the term loan facilities for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively.
7. ASSET RETIREMENT OBLIGATIONS
The Duke Energy Registrants record AROs when there is a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Actual costs incurred could be materially different from current estimates that form the basis of the recorded AROs.
The following table presents the AROs recorded on the Condensed Consolidated Balance Sheets.
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Decommissioning of nuclear power facilities
$
4,634
$
2,024
$
2,605
$
2,483
$
122
$
—
$
—
$
—
Closure of ash impoundments
5,240
1,899
2,019
2,001
18
72
1,249
—
Other
276
57
99
34
65
65
29
27
Total ARO
$
10,150
$
3,980
$
4,723
$
4,518
$
205
$
137
$
1,278
$
27
Less: Current portion
639
253
227
225
2
7
152
—
Total noncurrent ARO
$
9,511
$
3,727
$
4,496
$
4,293
$
203
$
130
$
1,126
$
27
ARO Liability Rollforward
In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities.
The following table presents the change in liability associated with AROs for the Duke Energy Registrants.
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Balance at December 31, 2023(a)
$
9,156
$
4,013
$
4,145
$
3,870
$
275
$
136
$
809
$
26
Accretion expense(b)
316
137
145
138
7
5
33
1
Liabilities settled(c)
(485)
(154)
(254)
(181)
(73)
(6)
(70)
—
Revisions in estimates of cash flows(d)
1,163
(16)
687
691
(4)
2
506
—
Balance at September 30, 2024
$
10,150
$
3,980
$
4,723
$
4,518
$
205
$
137
$
1,278
$
27
(a)Primarily relates to decommissioning nuclear power facilities, closure of ash impoundments, asbestos removal, closure of landfills at fossil generation facilities, retirement of natural gas mains and removal of renewable energy generation assets.
(b)For the nine months ended September 30, 2024, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.
(c)Primarily relates to ash impoundment closures and nuclear decommissioning.
(d)The revision amounts represent the change in discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases primarily relate to additional scope requirements to regulate the disposal of CCR in landfills and surface impoundments as a result of the 2024 CCR Rule, including an increase in groundwater monitoring wells.
61
FINANCIAL STATEMENTS
ASSET RETIREMENT OBLIGATIONS
Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets within Other Noncurrent Assets, respectively, on the Condensed Consolidated Balance Sheets.
8. GOODWILL
Duke Energy
Duke Energy's Goodwill balance of $19.3 billion is allocated $17.4 billion to EU&I and $1.9 billion to GU&I on Duke Energy's Condensed Consolidated Balance Sheets at September 30, 2024, and December 31, 2023. There are no accumulated impairment charges.
Duke Energy Ohio
Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to EU&I and $324 million to GU&I, is presented net of accumulated impairment charges of $216 million on the Condensed Consolidated Balance Sheets at September 30, 2024, and December 31, 2023.
Progress Energy
Progress Energy's Goodwill is included in the EU&I segment and there are no accumulated impairment charges.
Piedmont
Piedmont's Goodwill is included in the GU&I segment and there are no accumulated impairment charges.
Impairment Testing
Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont are required to perform an annual goodwill impairment test as of the same date each year and, accordingly, perform their annual impairment testing of goodwill as of August 31. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update their test between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. As the fair value for Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont exceeded their respective carrying values at the date of the annual impairment analysis, no goodwill impairment charges were recorded in the third quarter of 2024.
62
FINANCIAL STATEMENTS
RELATED PARTY TRANSACTIONS
9. RELATED PARTY TRANSACTIONS
The Subsidiary Registrants engage in related party transactions in accordance with applicable state and federal commission regulations. Refer to the Condensed Consolidated Balance Sheets of the Subsidiary Registrants for balances due to or due from related parties. Transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
2024
2023
Duke Energy Carolinas
Corporate governance and shared service expenses(a)
$
186
$
198
$
589
$
586
Indemnification coverages(b)
11
9
33
26
JDA revenue(c)
7
5
29
26
JDA expense(c)
48
58
141
121
Intercompany natural gas purchases(d)
5
5
14
14
Progress Energy
Corporate governance and shared service expenses(a)
$
165
$
172
$
524
$
522
Indemnification coverages(b)
13
11
42
35
JDA revenue(c)
48
58
141
121
JDA expense(c)
7
5
29
26
Intercompany natural gas purchases(d)
19
19
56
56
Duke Energy Progress
Corporate governance and shared service expenses(a)
$
104
$
103
$
318
$
314
Indemnification coverages(b)
5
5
17
15
JDA revenue(c)
48
58
141
121
JDA expense(c)
7
5
29
26
Intercompany natural gas purchases(d)
19
19
56
56
Duke Energy Florida
Corporate governance and shared service expenses(a)
$
61
$
69
$
206
$
208
Indemnification coverages(b)
8
6
25
20
Duke Energy Ohio
Corporate governance and shared service expenses(a)
$
74
$
73
$
228
$
222
Indemnification coverages(b)
2
1
5
4
Duke Energy Indiana
Corporate governance and shared service expenses(a)
$
98
$
92
$
283
$
275
Indemnification coverages(b)
2
2
7
6
Piedmont
Corporate governance and shared service expenses(a)
$
40
$
32
$
121
$
107
Indemnification coverages(b)
1
1
3
3
Intercompany natural gas sales(d)
24
24
70
70
Natural gas storage and transportation costs(e)
5
6
17
18
(a)The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other and Impairment of assets and other charges on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(b)The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(c)Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(d)Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating Revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income.
(e)Piedmont has related party transactions as a customer of its equity method investments in Pine Needle LNG Company, LLC, Hardy Storage Company, LLC and Cardinal Pipeline Company, LLC natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Condensed Consolidated Statements of Operations and Comprehensive Income.
63
FINANCIAL STATEMENTS
RELATED PARTY TRANSACTIONS
In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions, such as pipeline lease arrangements, and their proportionate share of certain charged expenses. These transactions of the Subsidiary Registrants are incurred in the ordinary course of business and are eliminated in consolidation.
As discussed in Note 13, certain trade receivables were previously sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables were largely cash but included a subordinated note from CRC for a portion of the purchase price. In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility.
Intercompany Income Taxes
Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
September 30, 2024
Intercompany income tax receivable
$
—
$
—
$
—
$
—
$
7
$
28
$
39
Intercompany income tax payable
115
96
53
38
—
—
—
December 31, 2023
Intercompany income tax receivable
$
—
$
—
$
—
$
—
$
91
$
53
$
—
Intercompany income tax payable
81
92
94
114
—
—
57
10. DERIVATIVES AND HEDGING
The Duke Energy Registrants use commodity, interest rate and foreign currency contracts to manage commodity price risk, interest rate risk and foreign currency exchange rate risk. The primary use of commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Piedmont enters into natural gas supply contracts to provide diversification, reliability and natural gas cost benefits to its customers. Interest rate derivatives are used to manage interest rate risk associated with borrowings. Foreign currency derivatives are used to manage risk related to foreign currency exchange rates on certain issuances of debt.
All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Condensed Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Condensed Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities or financing activities on the Condensed Consolidated Statements of Cash Flows consistent with the classification of the hedged transaction.
INTEREST RATE RISK
The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward-starting interest rate swaps or Treasury locks may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt.
Cash Flow Hedges
For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2024, and 2023, were not material. Duke Energy's interest rate derivatives designated as hedges include forward-starting interest rate swaps not accounted for under regulatory accounting.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.
Duke Energy’s interest rate swaps for its regulated operations employ regulatory accounting. With regulatory accounting, the mark-to-market gains or losses on the swaps are deferred as regulatory liabilities or regulatory assets, respectively. Regulatory assets and liabilities are amortized consistent with the treatment of the related costs in the ratemaking process. The accrual of interest on the swaps is recorded as Interest Expense on the Duke Energy Registrant's Condensed Consolidated Statements of Operations and Comprehensive Income.
64
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
The following tables show notional amounts of outstanding derivatives related to interest rate risk.
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Indiana
Ohio
Cash flow hedges
$
2,825
$
—
$
—
$
—
$
—
$
—
$
—
Undesignated contracts
3,202
1,150
1,775
1,125
650
250
27
Total notional amount
$
6,027
$
1,150
$
1,775
$
1,125
$
650
$
250
$
27
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Indiana
Ohio
Cash flow hedges
$
2,300
$
—
$
—
$
—
$
—
$
—
$
—
Undesignated contracts
2,727
1,050
1,250
925
325
400
27
Total notional amount
$
5,027
$
1,050
$
1,250
$
925
$
325
$
400
$
27
COMMODITY PRICE RISK
The Duke Energy Registrants are exposed to the impact of changes in the prices of electricity purchased and sold in bulk power markets and natural gas purchases, including Piedmont's natural gas supply contracts. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets and delivery locations. To manage risk associated with commodity prices, the Duke Energy Registrants may enter into long-term power purchase or sales contracts and long-term natural gas supply agreements.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.
For the Subsidiary Registrants, bulk power electricity and natural gas purchases flow through fuel adjustment clauses, formula-based contracts or other cost-sharing mechanisms. Differences between the costs included in rates and the incurred costs, including undesignated derivative contracts, are largely deferred as regulatory assets or regulatory liabilities. Piedmont policies allow for the use of financial instruments to hedge commodity price risks. The strategy and objective of these hedging programs are to use the financial instruments to reduce natural gas cost volatility for customers.
Volumes
The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. 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.
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
Carolinas
Energy
Progress
Ohio
Indiana
Piedmont
Electricity (GWh)
19,823
—
—
—
2,474
17,349
—
Natural gas (millions of dekatherms)
791
264
244
244
—
30
253
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
Carolinas
Energy
Progress
Ohio
Indiana
Piedmont
Electricity (GWh)
13,608
—
—
—
1,616
11,992
—
Natural gas (millions of dekatherms)
846
279
274
274
—
30
263
FOREIGN CURRENCY RISK
Duke Energy may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars.
65
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
Fair Value Hedges
Derivatives related to existing fixed-rate securities are accounted for as fair value hedges, where the derivatives’ fair value gains or losses and hedged items’ fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Duke Energy has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value hedges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of other comprehensive income or loss.
The following table shows Duke Energy's outstanding derivatives related to foreign currency risk at September 30, 2024.
Fair Value Gain (Loss)(a)
(in millions)
Pay Notional
Receive Notional
Receive
Hedge
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
Pay Rate
(in millions)
Rate
Maturity Date
2024
2023
2024
2023
Fair value hedges
$
645
4.75
%
600
euros
3.10
%
June 2028
$
23
$
(20)
$
23
$
(10)
537
5.31
%
500
euros
3.85
%
June 2034
19
(17)
19
(9)
815
5.648
%
750
euros
3.75
%
April 2031
29
—
20
—
Total notional amount
$
1,997
1,850
euros
$
71
$
(37)
$
62
$
(19)
(a) Amounts are recorded in Other Income and expenses, net on the Condensed Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Condensed Consolidated Statements of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded.
LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED IN THE CONDENSED CONSOLIDATED BALANCE SHEETS
The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.
Derivative Assets
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$
37
$
10
$
8
$
8
$
—
$
2
$
16
$
2
Noncurrent
33
14
19
19
—
—
—
—
Total Derivative Assets – Commodity Contracts
$
70
$
24
$
27
$
27
$
—
$
2
$
16
$
2
Interest Rate Contracts
Designated as Hedging Instruments
Noncurrent
20
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Noncurrent
18
2
6
6
—
—
10
—
Total Derivative Assets – Interest Rate Contracts
$
38
$
2
$
6
$
6
$
—
$
—
$
10
$
—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent
54
—
—
—
—
—
—
—
Total Derivative Assets – Foreign Currency Contracts
$
54
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Derivative Assets
$
162
$
26
$
33
$
33
$
—
$
2
$
26
$
2
66
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
Derivative Liabilities
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$
170
$
93
$
56
$
56
$
—
$
—
$
4
$
17
Noncurrent
209
57
45
45
—
—
—
107
Total Derivative Liabilities – Commodity Contracts
$
379
$
150
$
101
$
101
$
—
$
—
$
4
$
124
Interest Rate Contracts
Designated as Hedging Instruments
Noncurrent
52
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
5
—
5
5
—
—
—
—
Noncurrent
95
36
59
34
26
1
—
—
Total Derivative Liabilities – Interest Rate Contracts
$
152
$
36
$
64
$
39
$
26
$
1
$
—
$
—
Foreign Currency Contracts
Designated as Hedging Instruments
Current
30
—
—
—
—
—
—
—
Total Derivative Liabilities – Foreign Currency Contracts
$
30
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Derivative Liabilities
$
561
$
186
$
165
$
140
$
26
$
1
$
4
$
124
Derivative Assets
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$
25
$
1
$
3
$
1
$
2
$
1
$
18
$
1
Noncurrent
57
26
31
31
—
—
—
—
Total Derivative Assets – Commodity Contracts
$
82
$
27
$
34
$
32
$
2
$
1
$
18
$
1
Interest Rate Contracts
Designated as Hedging Instruments
Current
31
—
—
—
—
—
—
—
Noncurrent
17
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
5
5
—
—
—
—
—
—
Noncurrent
10
3
—
—
—
—
7
—
Total Derivative Assets – Interest Rate Contracts
$
63
$
8
$
—
$
—
$
—
$
—
$
7
$
—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent
44
—
—
—
—
—
—
—
Total Derivative Assets – Foreign Currency Contracts
$
44
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Derivative Assets
$
189
$
35
$
34
$
32
$
2
$
1
$
25
$
1
67
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
Derivative Liabilities
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$
354
$
177
$
138
$
138
$
—
$
—
$
18
$
20
Noncurrent
255
67
61
61
—
—
—
127
Total Derivative Liabilities – Commodity Contracts
$
609
$
244
$
199
$
199
$
—
$
—
$
18
$
147
Interest Rate Contracts
Designated as Hedging Instruments
Current
25
—
—
—
—
—
—
—
Noncurrent
26
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
13
2
11
11
—
—
—
—
Noncurrent
39
14
24
9
15
1
—
—
Total Derivative Liabilities – Interest Rate Contracts
$
103
$
16
$
35
$
20
$
15
$
1
$
—
$
—
Foreign Currency Contracts
Designated as Hedging Instruments
Current
17
—
—
—
—
—
—
—
Total Derivative Liabilities – Foreign Currency Contracts
$
17
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Derivative Liabilities
$
729
$
260
$
234
$
219
$
15
$
1
$
18
$
147
OFFSETTING ASSETS AND LIABILITIES
The following tables present the line items on the Condensed Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The amounts shown are 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
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Current
Gross amounts recognized
$
37
$
10
$
8
$
8
$
—
$
2
$
16
$
2
Offset
(15)
(8)
(7)
(7)
—
—
—
—
Net amounts presented in Current Assets: Other
$
22
$
2
$
1
$
1
$
—
$
2
$
16
$
2
Noncurrent
Gross amounts recognized
$
125
$
16
$
25
$
25
$
—
$
—
$
10
$
—
Offset
(26)
(10)
(16)
(16)
—
—
—
—
Net amounts presented in Other Noncurrent Assets: Other
$
99
$
6
$
9
$
9
$
—
$
—
$
10
$
—
68
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
Derivative Liabilities
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Current
Gross amounts recognized
$
205
$
93
$
61
$
61
$
—
$
—
$
4
$
17
Offset
(15)
(8)
(7)
(7)
—
—
—
—
Cash collateral posted
(23)
(13)
(5)
(5)
—
—
(4)
—
Net amounts presented in Current Liabilities: Other
$
167
$
72
$
49
$
49
$
—
$
—
$
—
$
17
Noncurrent
Gross amounts recognized
$
356
$
93
$
104
$
79
$
26
$
1
$
—
$
107
Offset
(26)
(10)
(16)
(16)
—
—
—
—
Cash collateral posted
(30)
(22)
(9)
(9)
—
—
—
—
Net amounts presented in Other Noncurrent Liabilities: Other
$
300
$
61
$
79
$
54
$
26
$
1
$
—
$
107
Derivative Assets
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Current
Gross amounts recognized
$
61
$
6
$
3
$
1
$
2
$
1
$
18
$
1
Offset
(2)
(1)
(1)
(1)
—
—
—
—
Net amounts presented in Current Assets: Other
$
59
$
5
$
2
$
—
$
2
$
1
$
18
$
1
Noncurrent
Gross amounts recognized
$
128
$
29
$
31
$
31
$
—
$
—
$
7
$
—
Offset
(37)
(14)
(22)
(22)
—
—
—
—
Net amounts presented in Other Noncurrent Assets: Other
$
91
$
15
$
9
$
9
$
—
$
—
$
7
$
—
Derivative Liabilities
December 31, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Current
Gross amounts recognized
$
409
$
179
$
149
$
149
$
—
$
—
$
18
$
20
Offset
(2)
(1)
(1)
(1)
—
—
—
—
Cash collateral posted
(96)
(48)
(30)
(30)
—
—
(18)
—
Net amounts presented in Current Liabilities: Other
$
311
$
130
$
118
$
118
$
—
$
—
$
—
$
20
Noncurrent
Gross amounts recognized
$
320
$
81
$
85
$
70
$
15
$
1
$
—
$
127
Offset
(37)
(14)
(22)
(22)
—
—
—
—
Cash collateral posted
(66)
(38)
(28)
(28)
—
—
—
—
Net amounts presented in Other Noncurrent Liabilities: Other
$
217
$
29
$
35
$
20
$
15
$
1
$
—
$
127
69
FINANCIAL STATEMENTS
DERIVATIVES AND HEDGING
OBJECTIVE CREDIT CONTINGENT FEATURES
Certain derivative contracts contain objective credit contingent features. These features include the requirement to post cash collateral or letters of credit if specific events occur, such as a credit rating downgrade below investment grade. 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.
September 30, 2024
Duke
Duke
Duke
Energy
Progress
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Aggregate fair value of derivatives in a net liability position
$
198
$
103
$
95
$
95
Fair value of collateral already posted
48
34
14
14
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
$
150
$
69
$
81
$
81
December 31, 2023
Duke
Duke
Duke
Energy
Progress
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Aggregate fair value of derivatives in a net liability position
$
342
$
175
$
166
$
166
Fair value of collateral already posted
144
86
58
58
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
$
198
$
89
$
108
$
108
The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative and cash collateral must be executed with the same counterparty under the same master netting arrangement.
11.INVESTMENTS IN DEBT AND EQUITY SECURITIES
Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the nuclear decommissioning trust funds (NDTF) at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as Available for Sale (AFS) and investments in equity securities as fair value through net income (FV-NI).
For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.
Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.
Investment Trusts
The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the guidelines set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.
Other AFS Securities
Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of September 30, 2024, and December 31, 2023.
Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.
70
FINANCIAL STATEMENTS
INVESTMENTS IN DEBT AND EQUITY SECURITIES
DUKE ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
NDTF
Cash and cash equivalents
$
—
$
—
$
151
$
—
$
—
$
133
Equity securities
6,005
11
8,224
4,942
22
7,278
Corporate debt securities
20
29
721
12
43
632
Municipal bonds
5
10
342
6
16
347
U.S. government bonds
37
46
1,824
24
65
1,575
Other debt securities
3
7
248
1
13
178
Total NDTF Investments
$
6,070
$
103
$
11,510
$
4,985
$
159
$
10,143
Other Investments
Cash and cash equivalents
$
—
$
—
$
68
$
—
$
—
$
31
Equity securities
62
—
188
33
—
158
Corporate debt securities
—
3
92
—
6
82
Municipal bonds
1
1
89
1
2
77
U.S. government bonds
—
2
55
—
2
65
Other debt securities
—
2
48
—
2
47
Total Other Investments
$
63
$
8
$
540
$
34
$
12
$
460
Total Investments
$
6,133
$
111
$
12,050
$
5,019
$
171
$
10,603
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were as follows.
Three Months Ended
Nine Months Ended
(in millions)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
FV-NI:
Realized gains
$
61
$
61
$
256
$
107
Realized losses
19
35
64
117
AFS:
Realized gains
10
16
22
37
Realized losses
8
45
44
104
DUKE ENERGY CAROLINAS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
NDTF
Cash and cash equivalents
$
—
$
—
$
69
$
—
$
—
$
51
Equity securities
3,476
8
4,729
2,886
14
4,196
Corporate debt securities
9
25
458
4
35
390
Municipal bonds
—
3
42
—
4
50
U.S. government bonds
19
25
976
13
33
826
Other debt securities
3
7
231
1
13
172
Total NDTF Investments
$
3,507
$
68
$
6,505
$
2,904
$
99
$
5,685
71
FINANCIAL STATEMENTS
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were as follows.
Three Months Ended
Nine Months Ended
(in millions)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
FV-NI:
Realized gains
$
38
$
43
$
163
$
70
Realized losses
9
17
30
64
AFS:
Realized gains
6
12
11
21
Realized losses
5
26
22
54
PROGRESS ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
NDTF
Cash and cash equivalents
$
—
$
—
$
82
$
—
$
—
$
82
Equity securities
2,529
3
3,495
2,056
8
3,082
Corporate debt securities
11
4
263
8
8
242
Municipal bonds
5
7
300
6
12
297
U.S. government bonds
18
21
848
11
32
749
Other debt securities
—
—
17
—
—
6
Total NDTF Investments
$
2,563
$
35
$
5,005
$
2,081
$
60
$
4,458
Other Investments
Cash and cash equivalents
$
—
$
—
$
21
$
—
$
—
$
18
Municipal bonds
—
—
24
—
1
23
Total Other Investments
$
—
$
—
$
45
$
—
$
1
$
41
Total Investments
$
2,563
$
35
$
5,050
$
2,081
$
61
$
4,499
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were as follows.
Three Months Ended
Nine Months Ended
(in millions)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
FV-NI:
Realized gains
$
23
$
18
$
93
$
37
Realized losses
10
18
34
53
AFS:
Realized gains
4
4
11
16
Realized losses
3
19
22
50
72
FINANCIAL STATEMENTS
INVESTMENTS IN DEBT AND EQUITY SECURITIES
DUKE ENERGY PROGRESS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
NDTF
Cash and cash equivalents
$
—
$
—
$
61
$
—
$
—
$
55
Equity securities
2,407
3
3,361
1,956
8
2,970
Corporate debt securities
10
4
252
7
8
229
Municipal bonds
5
7
300
6
12
297
U.S. government bonds
17
13
666
10
18
518
Other debt securities
—
—
16
—
—
6
Total NDTF Investments
$
2,439
$
27
$
4,656
$
1,979
$
46
$
4,075
Other Investments
Cash and cash equivalents
$
—
$
—
$
16
$
—
$
—
$
14
Total Other Investments
$
—
$
—
$
16
$
—
$
—
$
14
Total Investments
$
2,439
$
27
$
4,672
$
1,979
$
46
$
4,089
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were as follows.
Three Months Ended
Nine Months Ended
(in millions)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
FV-NI:
Realized gains
$
23
$
15
$
93
$
34
Realized losses
10
18
34
52
AFS:
Realized gains
4
4
11
15
Realized losses
3
18
21
47
DUKE ENERGY FLORIDA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
NDTF
Cash and cash equivalents
$
—
$
—
$
21
$
—
$
—
$
27
Equity securities
122
—
134
100
—
112
Corporate debt securities
1
—
11
1
—
13
U.S. government bonds
1
8
182
1
14
231
Other debt securities
—
—
1
—
—
—
Total NDTF Investments(a)
$
124
$
8
$
349
$
102
$
14
$
383
Other Investments
Cash and cash equivalents
$
—
$
—
$
2
$
—
$
—
$
3
Municipal bonds
—
—
24
—
1
23
Total Other Investments
$
—
$
—
$
26
$
—
$
1
$
26
Total Investments
$
124
$
8
$
375
$
102
$
15
$
409
(a)During the nine months ended September 30, 2024, and the year ended December 31, 2023, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
73
FINANCIAL STATEMENTS
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were immaterial.
DUKE ENERGY INDIANA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.
September 30, 2024
December 31, 2023
Gross
Gross
Gross
Gross
Unrealized
Unrealized
Estimated
Unrealized
Unrealized
Estimated
Holding
Holding
Fair
Holding
Holding
Fair
(in millions)
Gains
Losses
Value
Gains
Losses
Value
Investments
Cash and cash equivalents
$
—
$
—
$
2
$
—
$
—
$
1
Equity securities
22
—
117
4
—
98
Corporate debt securities
—
—
7
—
—
8
Municipal bonds
1
1
52
1
1
46
U.S. government bonds
—
—
7
—
—
10
Total Investments
$
23
$
1
$
185
$
5
$
1
$
163
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2024, and 2023, were immaterial.
DEBT SECURITY MATURITIES
The table below summarizes the maturity date for debt securities.
September 30, 2024
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Indiana
Due in one year or less
$
92
$
9
$
68
$
10
$
58
$
7
Due after one through five years
862
347
431
326
105
20
Due after five through 10 years
712
426
234
220
14
13
Due after 10 years
1,753
925
719
678
41
26
Total
$
3,419
$
1,707
$
1,452
$
1,234
$
218
$
66
12. FAIR VALUE MEASUREMENTS
Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.
Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value per share practical expedient. The net asset value is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.
Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the Company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.
Valuation methods of the primary fair value measurements disclosed below are as follows.
Investments in equity securities
The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the New York Stock Exchange and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.
74
FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS
Investments in debt securities
Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.
Commodity derivatives
Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of certain commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.
Interest rate derivatives
Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.
Foreign currency derivatives
Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.
Other fair value considerations
See Note 12 in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of the valuation of goodwill and intangible assets. Also, see Note 8 for further information on the annual impairment test as of August 31, 2024.
DUKE ENERGY
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 tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 10. See Note 11 for additional information related to investments by major security type for the Duke Energy Registrants.
September 30, 2024
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Not Categorized
NDTF cash and cash equivalents
$
151
$
151
$
—
$
—
$
—
NDTF equity securities
8,224
8,195
—
—
29
NDTF debt securities
3,135
1,012
2,123
—
—
Other equity securities
188
188
—
—
—
Other debt securities
284
48
236
—
—
Other cash and cash equivalents
68
68
—
—
—
Derivative assets
162
2
143
17
—
Total assets
12,212
9,664
2,502
17
29
Derivative liabilities
(561)
(34)
(527)
—
—
Net assets
$
11,651
$
9,630
$
1,975
$
17
$
29
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Not Categorized
NDTF cash and cash equivalents
$
133
$
133
$
—
$
—
$
—
NDTF equity securities
7,278
7,241
—
—
37
NDTF debt securities
2,732
829
1,903
—
—
Other equity securities
158
158
—
—
—
Other debt securities
271
55
216
—
—
Other cash and cash equivalents
31
31
—
—
—
Derivative assets
189
37
137
15
—
Total assets
10,792
8,484
2,256
15
37
Derivative liabilities
(729)
(60)
(669)
—
—
Net assets
$
10,063
$
8,424
$
1,587
$
15
$
37
75
FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS
The following table provides reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
2024
2023
Balance at beginning of period
$
35
$
41
$
15
$
34
Purchases, sales, issuances and settlements:
Purchases
—
3
29
50
Settlements
(13)
(18)
(36)
(76)
Total (losses) gains included on the Condensed Consolidated Balance Sheet
(5)
4
9
22
Balance at end of period
$
17
$
30
$
17
$
30
DUKE ENERGY CAROLINAS
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
(in millions)
Total Fair Value
Level 1
Level 2
Not Categorized
NDTF cash and cash equivalents
$
69
$
69
$
—
$
—
NDTF equity securities
4,729
4,700
—
29
NDTF debt securities
1,707
491
1,216
—
Derivative assets
26
—
26
—
Total assets
6,531
5,260
1,242
29
Derivative liabilities
(186)
—
(186)
—
Net assets
$
6,345
$
5,260
$
1,056
$
29
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Not Categorized
NDTF cash and cash equivalents
$
51
$
51
$
—
$
—
NDTF equity securities
4,196
4,159
—
37
NDTF debt securities
1,438
375
1,063
—
Derivative assets
35
—
35
—
Total assets
5,720
4,585
1,098
37
Derivative liabilities
(260)
—
(260)
—
Net assets
$
5,460
$
4,585
$
838
$
37
PROGRESS ENERGY
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$
82
$
82
$
—
$
82
$
82
$
—
NDTF equity securities
3,495
3,495
—
3,082
3,082
—
NDTF debt securities
1,428
521
907
1,294
454
840
Other debt securities
24
—
24
23
—
23
Other cash and cash equivalents
21
21
—
18
18
—
Derivative assets
33
—
33
34
—
34
Total assets
5,083
4,119
964
4,533
3,636
897
Derivative liabilities
(165)
—
(165)
(234)
—
(234)
Net assets
$
4,918
$
4,119
$
799
$
4,299
$
3,636
$
663
76
FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS
DUKE ENERGY PROGRESS
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$
61
$
61
$
—
$
55
$
55
$
—
NDTF equity securities
3,361
3,361
—
2,970
2,970
—
NDTF debt securities
1,234
375
859
1,050
266
784
Other cash and cash equivalents
16
16
—
14
14
—
Derivative assets
33
—
33
32
—
32
Total assets
4,705
3,813
892
4,121
3,305
816
Derivative liabilities
(140)
—
(140)
(219)
—
(219)
Net assets
$
4,565
$
3,813
$
752
$
3,902
$
3,305
$
597
DUKE ENERGY FLORIDA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$
21
$
21
$
—
$
27
$
27
$
—
NDTF equity securities
134
134
—
112
112
—
NDTF debt securities
194
146
48
244
188
56
Other debt securities
24
—
24
23
—
23
Other cash and cash equivalents
2
2
—
3
3
—
Derivative assets
—
—
—
2
—
2
Total assets
375
303
72
411
330
81
Derivative liabilities
(26)
—
(26)
(15)
—
(15)
Net assets
$
349
$
303
$
46
$
396
$
330
$
66
DUKE ENERGY OHIO
The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets were not material at September 30, 2024, and December 31, 2023.
DUKE ENERGY INDIANA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Total Fair Value
Level 1
Level 2
Level 3
Other equity securities
$
117
$
117
$
—
$
—
$
98
$
98
$
—
$
—
Other debt securities
66
—
66
—
64
—
64
—
Other cash and cash equivalents
2
2
—
—
1
1
—
—
Derivative assets
26
—
11
15
25
5
7
13
Total assets
211
119
77
15
188
104
71
13
Derivative liabilities
(4)
(4)
—
—
(18)
(18)
—
—
Net assets
$
207
$
115
$
77
$
15
$
170
$
86
$
71
$
13
77
FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS
The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
2024
2023
Balance at beginning of period
$
33
$
37
$
13
$
29
Purchases, sales, issuances and settlements:
Purchases
—
—
27
42
Settlements
(13)
(14)
(33)
(70)
Total (losses) gains included on the Condensed Consolidated Balance Sheet
(5)
4
8
26
Balance at end of period
$
15
$
27
$
15
$
27
PIEDMONT
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
Derivative assets
$
2
$
2
$
—
$
1
$
1
$
—
Derivative liabilities
(124)
—
(124)
(147)
—
(147)
Net (liabilities) assets
$
(122)
$
2
$
(124)
$
(146)
$
1
$
(147)
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.
September 30, 2024
Weighted
Fair Value
Average
Investment Type
(in millions)
Valuation Technique
Unobservable Input
Range
Range
Duke Energy Ohio
FTRs
$
2
RTO auction pricing
FTR price – per MWh
$
—
-
$
1.35
$
0.56
Duke Energy Indiana
FTRs
15
RTO auction pricing
FTR price – per MWh
(0.76)
-
12.83
1.19
Duke Energy
Total Level 3 derivatives
$
17
December 31, 2023
Weighted
Fair Value
Average
Investment Type
(in millions)
Valuation Technique
Unobservable Input
Range
Range
Duke Energy Ohio
FTRs
$
2
RTO auction pricing
FTR price – per MWh
$
0.36
-
$
2.11
$
0.71
Duke Energy Indiana
FTRs
13
RTO auction pricing
FTR price – per MWh
(1.05)
-
9.64
1.26
Duke Energy
Total Level 3 derivatives
$
15
78
FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS
OTHER FAIR VALUE DISCLOSURES
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.
September 30, 2024
December 31, 2023
(in millions)
Book Value
Fair Value
Book Value
Fair Value
Duke Energy(a)
$
80,121
$
76,285
$
75,252
$
69,790
Duke Energy Carolinas
17,032
16,342
16,012
15,077
Progress Energy
24,214
23,422
23,759
22,553
Duke Energy Progress
12,323
11,430
11,714
10,595
Duke Energy Florida
10,248
10,124
10,401
10,123
Duke Energy Ohio
4,164
4,087
3,518
3,310
Duke Energy Indiana
4,801
4,605
4,502
4,230
Piedmont
4,003
3,754
3,668
3,336
(a)Book value of long-term debt includes $1.0 billionat September 30, 2024 and December 31, 2023, of net unamortized debt discount and premium of purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.
At both September 30, 2024, and December 31, 2023, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.
13. VARIABLE INTEREST ENTITIES
CONSOLIDATED VIEs
The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.
No financial support was provided to any of the consolidated VIEs during the nine months ended September 30, 2024, and the year ended December 31, 2023, or is expected to be provided in the future that was not previously contractually required.
Receivables Financing – DERF/DEPR/DEFR
DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies.
DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the DERF, DEPR and DEFR credit facilities are reflected on the Condensed Consolidated Balance Sheets as Current maturities of long-term debt.
The most significant activity that impacts the economic performance of DERF, DEPR and DEFR are the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are considered the primary beneficiaries and consolidate DERF, DEPR and DEFR, respectively, as they make those decisions.
In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings totaling $325 million and terminated the related DEFR credit facility. Additionally, Duke Energy Florida's related restricted receivables outstanding at DEFR at the time of termination totaled $459 million and were transferred back to Duke Energy Florida to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.
Receivables Financing – CRC
CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC bought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC then borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility was limited to the amount of qualified receivables sold to CRC, which generally excluded receivables past due more than a predetermined number of days and reserved for expected past-due balances. The sole source of funds to satisfy the related debt obligation was cash collections from the receivables.
The proceeds Duke Energy Ohio and Duke Energy Indiana received from the sale of receivables to CRC were approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note was a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC would be required by Duke Energy to maintain a minimum equity balance of $3 million.
79
FINANCIAL STATEMENTS
VARIABLE INTEREST ENTITIES
CRC was considered a VIE because (i) equity capitalization was insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity was not held by the equity holder and (iii) deficiencies in net worth of CRC were funded by Duke Energy. The most significant activities that impacted the economic performance of CRC were decisions made to manage delinquent receivables. Duke Energy was considered the primary beneficiary and consolidated CRC as it made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidated CRC.
In March 2024, Duke Energy repaid all outstanding CRC borrowings totaling $350 million and terminated the related CRC credit facility. Additionally, Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.
Receivables Financing – Credit Facilities
The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.
Duke Energy
Duke Energy
Duke Energy
Duke Energy
Carolinas
Progress
Florida
(in millions)
CRC
DERF
DEPR
DEFR
Expiration date
(a)
January 2025
April 2025
(b)
Credit facility amount
(a)
$
500
$
400
(b)
Amounts borrowed at September 30, 2024
—
500
400
—
Amounts borrowed at December 31, 2023
312
500
400
325
Restricted Receivables at September 30, 2024
—
1,149
822
—
Restricted Receivables at December 31, 2023
663
991
833
532
(a) In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related $350 million CRC credit facility.
(b) In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings and terminated the related $325 million DEFR credit facility.
Nuclear Asset-Recovery Bonds
Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.
In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.
DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.
The following table summarizes the impact of DEFPF on Duke Energy Florida's Condensed Consolidated Balance Sheets.
(in millions)
September 30, 2024
December 31, 2023
Regulatory Assets: Current
60
59
Current Assets: Other
18
37
Other Noncurrent Assets: Regulatory assets
754
803
Current Liabilities: Other
2
8
Current maturities of long-term debt
59
59
Long-Term Debt
772
831
Storm Recovery Bonds
Duke Energy Carolinas NC Storm Funding, LLC (DECNCSF), Duke Energy Progress NC Storm Funding, LLC (DEPNCSF) and Duke Energy Progress SC Storm Funding, LLC (DEPSCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress. DECNCSF and DEPNCSF were formed in 2021 while DEPSCSF was formed in 2024, all for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in North Carolina and South Carolina.
In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively, and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. In April 2024, DEPSCSF issued $177 million of senior secured bonds and used the proceeds to acquire storm recovery property from Duke Energy Progress. The storm recovery property was created by state legislation and a PSCSC financing order for the purpose of financing storm costs incurred from 2014 through 2022.
80
FINANCIAL STATEMENTS
VARIABLE INTEREST ENTITIES
The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ North Carolina and South Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries. Duke Energy Carolinas consolidates DECNCSF and Duke Energy Progress consolidates DEPNCSF and DEPSCSF.
The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.
September 30, 2024
December 31, 2023
Duke Energy
Duke Energy
Duke Energy
Duke Energy
Carolinas
Progress
Carolinas
Progress
(in millions)
DECNCSF
DEPNCSF
DEPSCSF
DECNCSF
DEPNCSF
Regulatory Assets: Current
$
12
$
39
$
8
$
12
$
39
Current Assets: Other
6
19
8
9
31
Other Noncurrent Assets: Regulatory assets
188
617
157
196
643
Other Noncurrent Assets: Other
1
4
1
1
2
Current Liabilities: Other
1
4
4
10
34
Current Maturities of Long-Term Debt
10
34
9
3
8
Long-Term Debt
198
646
163
208
680
Procurement Company – Duke Energy Florida
Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo was formed in 2023 as the primary procurement agent for equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with third-party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset.
This entity is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Florida has the power to direct the significant activities of this VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates the procurement company.
The following table summarizes the impact of this VIE on Duke Energy Florida's Consolidated Balance Sheets.
(in millions)
September 30, 2024
December 31, 2023
Inventory
$
477
$
462
Accounts Payable
199
188
NON-CONSOLIDATED VIEs
The following tables summarize the impact of non-consolidated VIEs on the Condensed Consolidated Balance Sheets.
September 30, 2024
Duke Energy
Duke
Duke
Natural Gas
Energy
Energy
(in millions)
Investments
Ohio
Indiana
Receivables from affiliated companies
$
—
$
—
$
—
Investments in equity method unconsolidated affiliates
55
—
—
Other noncurrent assets
30
—
—
Total assets
$
85
$
—
$
—
Other current liabilities
4
—
—
Other noncurrent liabilities
1
—
—
Total liabilities
$
5
$
—
$
—
Net assets
$
80
$
—
$
—
81
FINANCIAL STATEMENTS
VARIABLE INTEREST ENTITIES
December 31, 2023
Duke Energy
Duke
Duke
Natural Gas
Energy
Energy
(in millions)
Investments
Ohio
Indiana
Receivables from affiliated companies
$
—
$
150
$
208
Investments in equity method unconsolidated affiliates
67
—
—
Other noncurrent assets
43
—
—
Total assets
$
110
$
150
$
208
Other current liabilities
4
—
—
Other noncurrent liabilities
5
—
—
Total liabilities
$
9
$
—
$
—
Net assets
$
101
$
150
$
208
The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above.
Natural Gas Investments
Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.
CRC
Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC as of December 31, 2023. The subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value as of December 31, 2023.
The following table shows the gross and net receivables sold. See discussion under Consolidated VIEs for additional information related to CRC's termination in March 2024.
Duke Energy Ohio
Duke Energy Indiana
(in millions)
September 30, 2024
December 31, 2023
September 30, 2024
December 31, 2023
Receivables sold
$
—
$
361
$
—
$
351
Less: Retained interests
—
150
—
208
Net receivables sold
$
—
$
211
$
—
$
143
The following table shows sales and cash flows related to receivables sold and reflects CRC activity prior to its termination in March 2024.
Duke Energy Ohio
Duke Energy Indiana
Nine Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2024
2023
2024
2023
Sales
Receivables sold
$
474
$
1,973
$
473
$
2,646
Loss recognized on sale
7
25
6
15
Cash flows
Cash proceeds from receivables sold
$
478
$
2,024
$
523
$
2,465
Collection fees received
—
1
—
1
Return received on retained interests
4
15
4
9
Cash flows from sales of receivables are reflected within Cash Flows from Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Condensed Consolidated Statements of Cash Flows.
14. REVENUE
Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.
Electric Utilities and Infrastructure
EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.
82
FINANCIAL STATEMENTS
REVENUE
The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:
Remaining Performance Obligations
(in millions)
2024
2025
2026
2027
2028
Thereafter
Total
Duke Energy Carolinas
$
3
$
12
$
12
$
12
$
12
$
—
$
51
Progress Energy
18
30
7
7
7
29
98
Duke Energy Progress
2
—
—
—
—
—
2
Duke Energy Florida
16
30
7
7
7
29
96
Duke Energy Indiana
4
17
17
15
5
—
58
Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.
Gas Utilities and Infrastructure
GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.
Fixed-capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:
Remaining Performance Obligations
(in millions)
2024
2025
2026
2027
2028
Thereafter
Total
Piedmont
$
16
$
60
$
51
$
49
$
46
$
195
$
417
Other
The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.
83
FINANCIAL STATEMENTS
REVENUE
Disaggregated Revenues
Disaggregated revenues are presented as follows:
Three Months Ended September 30, 2024
Duke
Duke
Duke
Duke
Duke
(in millions)
Duke
Energy
Progress
Energy
Energy
Energy
Energy
By market or type of customer
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$
3,738
$
1,173
$
1,973
$
811
$
1,162
$
275
$
316
$
—
General
2,287
859
1,035
485
550
152
243
—
Industrial
924
416
275
196
79
39
193
—
Wholesale
620
158
394
350
44
15
53
—
Other revenues
237
71
166
88
78
24
23
—
Total Electric Utilities and Infrastructure revenue from contracts with customers
$
7,806
$
2,677
$
3,843
$
1,930
$
1,913
$
505
$
828
$
—
Gas Utilities and Infrastructure
Residential
$
157
$
—
$
—
$
—
$
—
$
74
$
—
$
83
Commercial
91
—
—
—
—
23
—
68
Industrial
36
—
—
—
—
6
—
30
Power Generation
—
—
—
—
—
—
—
8
Other revenues
25
—
—
—
—
5
—
20
Total Gas Utilities and Infrastructure revenue from contracts with customers
$
309
$
—
$
—
$
—
$
—
$
108
$
—
$
209
Other
Revenue from contracts with customers
$
12
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total revenue from contracts with customers
$
8,127
$
2,677
$
3,843
$
1,930
$
1,913
$
613
$
828
$
209
Other revenue sources(a)
$
27
$
30
$
17
$
(16)
$
27
$
(8)
$
8
$
10
Total revenues
$
8,154
$
2,707
$
3,860
$
1,914
$
1,940
$
605
$
836
$
219
84
FINANCIAL STATEMENTS
REVENUE
Three Months Ended September 30, 2023
Duke
Duke
Duke
Duke
Duke
(in millions)
Duke
Energy
Progress
Energy
Energy
Energy
Energy
By market or type of customer
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$
3,602
$
988
$
2,043
$
756
$
1,287
$
268
$
303
$
—
General
2,229
779
1,089
467
622
135
224
—
Industrial
912
395
298
203
95
28
190
—
Wholesale
647
141
422
364
58
12
71
—
Other revenues
285
75
175
100
75
24
56
—
Total Electric Utilities and Infrastructure revenue from contracts with customers
$
7,675
$
2,378
$
4,027
$
1,890
$
2,137
$
467
$
844
$
—
Gas Utilities and Infrastructure
Residential
$
152
$
—
$
—
$
—
$
—
$
73
$
—
$
80
Commercial
88
—
—
—
—
24
—
65
Industrial
26
—
—
—
—
4
—
23
Power Generation
—
—
—
—
—
—
—
23
Other revenues
28
—
—
—
—
4
—
8
Total Gas Utilities and Infrastructure revenue from contracts with customers
$
294
$
—
$
—
$
—
$
—
$
105
$
—
$
199
Other
Revenue from contracts with customers
$
8
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total revenue from contracts with customers
$
7,977
$
2,378
$
4,027
$
1,890
$
2,137
$
572
$
844
$
199
Other revenue sources(a)
$
17
$
15
$
28
$
(4)
$
27
$
5
$
7
$
9
Total revenues
$
7,994
$
2,393
$
4,055
$
1,886
$
2,164
$
577
$
851
$
208
(a)Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
85
FINANCIAL STATEMENTS
REVENUE
Nine Months Ended September 30, 2024
Duke
Duke
Duke
Duke
Duke
(in millions)
Duke
Energy
Progress
Energy
Energy
Energy
Energy
By market or type of customer
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$
9,945
$
3,190
$
5,115
$
2,214
$
2,901
$
768
$
872
$
—
General
6,234
2,331
2,834
1,334
1,500
448
624
—
Industrial
2,615
1,130
808
556
252
110
566
—
Wholesale
1,698
423
1,086
974
112
39
150
—
Other revenues
783
269
502
257
245
64
96
—
Total Electric Utilities and Infrastructure revenue from contracts with customers
$
21,275
$
7,343
$
10,345
$
5,335
$
5,010
$
1,429
$
2,308
$
—
Gas Utilities and Infrastructure
Residential
$
859
$
—
$
—
$
—
$
—
$
307
$
—
$
552
Commercial
434
—
—
—
—
111
—
323
Industrial
115
—
—
—
—
23
—
92
Power Generation
—
—
—
—
—
—
—
24
Other revenues
97
—
—
—
—
19
—
78
Total Gas Utilities and Infrastructure revenue from contracts with customers
$
1,505
$
—
$
—
$
—
$
—
$
460
$
—
$
1,069
Other
Revenue from contracts with customers
$
30
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Revenue from contracts with customers
$
22,810
$
7,343
$
10,345
$
5,335
$
5,010
$
1,889
$
2,308
$
1,069
Other revenue sources(a)
$
187
$
68
$
100
$
3
$
82
$
2
$
34
$
70
Total revenues
$
22,997
$
7,411
$
10,445
$
5,338
$
5,092
$
1,891
$
2,342
$
1,139
86
FINANCIAL STATEMENTS
REVENUE
Nine Months Ended September 30, 2023
Duke
Duke
Duke
Duke
Duke
(in millions)
Duke
Energy
Progress
Energy
Energy
Energy
Energy
By market or type of customer
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$
9,193
$
2,527
$
5,019
$
1,902
$
3,117
$
710
$
937
$
—
General
5,936
1,974
2,844
1,194
1,650
411
706
—
Industrial
2,630
1,011
844
560
284
155
618
—
Wholesale
1,695
402
1,064
942
122
33
195
—
Other revenues
618
202
440
238
202
73
103
—
Total Electric Utilities and Infrastructure revenue from contracts with customers
$
20,072
$
6,116
$
10,211
$
4,836
$
5,375
$
1,382
$
2,559
$
—
Gas Utilities and Infrastructure
Residential
$
838
$
—
$
—
$
—
$
—
$
317
$
—
$
522
Commercial
421
—
—
—
—
113
—
309
Industrial
103
—
—
—
—
19
—
84
Power Generation
—
—
—
—
—
—
—
69
Other revenues
93
—
—
—
—
15
—
32
Total Gas Utilities and Infrastructure revenue from contracts with customers
$
1,455
$
—
$
—
$
—
$
—
$
464
$
—
$
1,016
Other
Revenue from contracts with customers
$
24
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total Revenue from contracts with customers
$
21,551
$
6,116
$
10,211
$
4,836
$
5,375
$
1,846
$
2,559
$
1,016
Other revenue sources(a)
$
297
$
39
$
104
$
8
$
81
$
29
$
47
$
103
Total revenues
$
21,848
$
6,155
$
10,315
$
4,844
$
5,456
$
1,875
$
2,606
$
1,119
(a)Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
87
FINANCIAL STATEMENTS
REVENUE
The following table presents the reserve for credit losses for trade and other receivables.
Three Months Ended September 30, 2023 and 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Balance at June 30, 2023
$
199
$
57
$
73
$
43
$
30
$
8
$
4
$
13
Write-Offs
(36)
(14)
(20)
(11)
(8)
—
—
(5)
Credit Loss Expense
23
5
15
2
13
—
1
2
Other Adjustments
17
8
9
10
(1)
—
—
—
Balance at September 30, 2023
$
203
$
56
$
77
$
44
$
34
$
8
$
5
$
10
Balance at June 30, 2024
$
207
$
65
$
73
$
47
$
26
$
42
$
16
$
11
Write-Offs
(29)
(13)
(16)
(10)
(6)
—
—
—
Credit Loss Expense
34
15
18
7
11
—
—
1
Other Adjustments
6
3
4
4
—
(1)
—
—
Balance at September 30, 2024
$
218
$
70
$
79
$
48
$
31
$
41
$
16
$
12
Nine Months Ended September 30, 2023 and 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Balance at December 31, 2022
$
216
$
68
$
81
$
44
$
36
$
6
$
4
$
14
Write-Offs
(121)
(54)
(60)
(30)
(28)
—
—
(11)
Credit Loss Expense
62
18
33
7
26
2
1
7
Other Adjustments
46
24
23
23
—
—
—
—
Balance at September 30, 2023
$
203
$
56
$
77
$
44
$
34
$
8
$
5
$
10
Balance at December 31, 2023
$
205
$
56
$
74
$
44
$
31
$
9
$
5
$
11
Write-Offs
(97)
(41)
(49)
(29)
(20)
—
—
(4)
Credit Loss Expense
79
32
38
17
21
2
2
5
Other Adjustments
31
23
16
16
(1)
30
9
—
Balance at September 30, 2024
$
218
$
70
$
79
$
48
$
31
$
41
$
16
$
12
Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables.
15. STOCKHOLDERS' EQUITY
Basic EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as equity forward sale agreements or convertible debt, were exercised or settled. Duke Energy applies the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted EPS, if applicable. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common stock during the restricted stock unit’s vesting periods. Dividends declared on preferred stock are recorded on the Condensed Consolidated Statements of Operations as a reduction of net income to arrive at net income available to Duke Energy common stockholders. Dividends accumulated on preferred stock are an adjustment to net income used in the calculation of basic and diluted EPS.
88
FINANCIAL STATEMENTS
STOCKHOLDERS' EQUITY
The following table presents Duke Energy’s basic and diluted EPS calculations, the weighted average number of common shares outstanding and common and preferred share dividends declared.
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions, except per share amounts)
2024
2023
2024
2023
Net Income available to Duke Energy common stockholders
$
1,226
$
1,213
$
3,211
$
1,744
Less: Income (Loss) from discontinued operations attributable to Duke Energy common stockholders
22
(190)
9
(1,283)
Accumulated preferred stock dividends adjustment
14
12
14
12
Less: Impact of participating securities
2
2
4
4
Income from continuing operations available to Duke Energy common stockholders
$
1,216
$
1,413
$
3,212
$
3,035
Income (Loss) from discontinued operations, net of tax
$
25
$
(152)
$
12
$
(1,316)
Add: (Income) Loss attributable to NCI
(3)
(38)
(3)
33
Income (Loss) from discontinued operations attributable to Duke Energy common stockholders
$
22
$
(190)
$
9
$
(1,283)
Weighted average common shares outstanding – basic
772
771
772
771
Equity forwards
1
—
—
—
Weighted average common shares outstanding – diluted
773
771
772
771
EPS from continuing operations available to Duke Energy common stockholders
Basic and diluted(a)
$
1.57
$
1.83
$
4.16
$
3.94
Income (Loss) Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and diluted(a)
$
0.03
$
(0.24)
$
0.01
$
(1.67)
Potentially dilutive items excluded from the calculation(b)
2
2
2
2
Dividends declared per common share
$
1.045
$
1.025
$
3.095
$
3.035
Dividends declared on Series A preferred stock per depositary share(c)
$
0.359
$
0.359
$
1.078
$
1.078
Dividends declared on Series B preferred stock per share(d)
$
24.375
$
24.375
$
48.750
$
48.750
(a)For the periods presented subsequent to issuance in April 2023, the convertible notes were excluded from the calculations of diluted EPS because the effect was antidilutive.
(b)Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.
(c)5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation preference per depositary share.
(d)4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends were payable semiannually in arrears on the 16th day of March and September. The preferred stock was redeemed on September 16, 2024.
Common Stock
In November 2022, Duke Energy filed a prospectus supplement and executed an Equity Distribution Agreement (EDA) under which it may sell up to $1.5 billion of its common stock through an at-the-market (ATM) offering program, including an equity forward sales component. Under the terms of the EDA, Duke Energy may issue and sell shares of common stock through September 2025.
The following table shows ATM equity issuances pursuant to forward contracts executed during the nine months ended September 30, 2024.
Tranche
Shares Priced
Initial Forward Price
1
802,371
$
92.77
2
729,674
$
101.10
3
737,280
$
100.99
4
662,266
$
111.45
Total
2,931,591
The equity forwards require Duke Energy to either physically settle the transactions by issuing shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or net settle in whole or in part through the delivery or receipt of cash or shares. The settlement alternatives are at Duke Energy's election. No amounts have or will be recorded in Duke Energy's Condensed Consolidated Financial Statements with respect to the ATM offering until settlement of the equity forwards occurs, which is expected by December 31, 2024. The initial forward sale prices will be subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the relevant forward sale agreements. Until settlement of the equity forwards, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method.
89
FINANCIAL STATEMENTS
STOCKHOLDERS' EQUITY
Preferred Stock
On September 16, 2024, Duke Energy redeemed all 1 million outstanding shares of Series B Preferred Stock for a redemption price of $1,000 per share or $1 billion in total. Following the redemption, dividends ceased to accrue on the shares of Series B Preferred Stock, shares of the Series B Preferred Stock were no longer deemed outstanding and all rights of the holders of such shares of Series B Preferred Stock terminated. In conjunction with the redemption, Duke Energy recorded $16 million in preferred stock redemption costs, calculated as the difference of $11 million between the carrying value on the redemption date of the Series B Preferred Stock and the total amount of consideration paid to redeem, and including the recognition of an excise tax liability under the IRA of $5 million. The preferred stock redemption costs were recorded as a reduction to Retained earnings on Duke Energy Corporations' Condensed Consolidated Balance Sheets during the three months ended September 30, 2024.
16. EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT RETIREMENT PLANS
Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified and non-qualified, non-contributory defined benefit retirement plans. Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants.
The following table includes information related to the Duke Energy Registrants' contributions to its qualified defined benefit pension plans.
Nine Months Ended September 30, 2024 and 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Contributions made:
2024
$
100
$
26
$
23
$
14
$
9
$
5
$
8
$
3
2023
$
100
$
26
$
22
$
13
$
9
$
5
$
8
$
3
Duke Energy uses a December 31 measurement date for its qualified non-contributory defined benefit retirement plan assets and obligations. However, because Duke Energy believes it is probable in 2024 that total lump-sum benefit payments for one of its defined benefit retirement plans will exceed the settlement threshold, which is defined as the sum of the service cost and interest cost on projected benefit obligation components of net periodic pension costs, Duke Energy remeasured the plan's assets and plan's projected benefit obligation as of September 30, 2024. The discount rate used for the September 30, 2024 remeasurement was 5.0% and the cash balance interest crediting rate was 4.0%. The interest rate for lump sum and annuity conversions was updated to reflect current market conditions. All other assumptions used for the September 30, 2024, remeasurement were consistent with the measurement as of December 31, 2023.
As a result of the remeasurement, Duke Energy recognized a remeasurement loss of $11 million, of which $10 million was recorded in Regulatory Assets within Other Noncurrent Assets and $1 million was recorded in Accumulated Other Comprehensive Loss within the Condensed Consolidated Balance Sheets as of September 30, 2024. The remeasurement loss, which represents a decrease in funded status of the plan, reflects an increase of $117 million in the fair value of the plan's assets and an increase of $128 million in the plan's projected benefit obligation.
As the result of settlement accounting, Duke Energy recognized settlement charges of $72 million, of which $60 million was recorded to Regulatory Assets within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets and $12 million was recorded to Other Income and Expenses, net, within the Condensed Consolidated Statement of Operations as of September 30, 2024.
QUALIFIED PENSION PLANS
The following tables include the components of net periodic pension costs for qualified pension plans.
Three Months Ended September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Service cost
$
28
$
9
$
8
$
5
$
3
$
1
$
1
$
1
Interest cost on projected benefit obligation
82
19
26
12
14
5
6
2
Expected return on plan assets
(154)
(41)
(55)
(25)
(29)
(6)
(10)
(5)
Amortization of actuarial loss
9
2
2
1
1
—
1
1
Amortization of prior service credit
(3)
—
—
—
—
—
—
(1)
Amortization of settlement charges
17
5
7
6
—
2
—
2
Net periodic pension costs
$
(21)
$
(6)
$
(12)
$
(1)
$
(11)
$
2
$
(2)
$
—
90
FINANCIAL STATEMENTS
EMPLOYEE BENEFIT PLANS
Three Months Ended September 30, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Service cost
$
28
$
9
$
9
$
5
$
3
$
1
$
1
$
1
Interest cost on projected benefit obligation
86
21
26
12
14
4
6
2
Expected return on plan assets
(147)
(40)
(50)
(24)
(26)
(6)
(10)
(5)
Amortization of actuarial loss
2
—
1
—
1
—
1
—
Amortization of prior service credit
(3)
—
—
—
—
—
—
(1)
Amortization of settlement charges
5
3
1
1
—
—
—
1
Net periodic pension costs
$
(29)
$
(7)
$
(13)
$
(6)
$
(8)
$
(1)
$
(2)
$
(2)
Nine Months Ended September 30, 2024
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Service cost
$
85
$
28
$
24
$
15
$
10
$
2
$
4
$
3
Interest cost on projected benefit obligation
247
59
78
36
42
13
19
7
Expected return on plan assets
(462)
(122)
(163)
(75)
(87)
(19)
(31)
(15)
Amortization of actuarial loss
25
6
7
4
3
1
3
2
Amortization of prior service credit
(10)
—
—
—
—
—
(1)
(5)
Amortization of settlement charges
26
9
9
8
1
2
1
4
Net periodic pension costs
$
(89)
$
(20)
$
(45)
$
(12)
$
(31)
$
(1)
$
(5)
$
(4)
Nine Months Ended September 30, 2023
Duke
Duke
Duke
Duke
Duke
Duke
Energy
Progress
Energy
Energy
Energy
Energy
(in millions)
Energy
Carolinas
Energy
Progress
Florida
Ohio
Indiana
Piedmont
Service cost
$
87
$
28
$
25
$
15
$
10
$
2
$
4
$
3
Interest cost on projected benefit obligation
258
63
80
37
43
13
20
7
Expected return on plan assets
(441)
(120)
(149)
(70)
(78)
(18)
(30)
(15)
Amortization of actuarial loss
7
1
3
1
2
—
2
—
Amortization of prior service credit
(10)
—
—
—
—
—
(1)
(5)
Amortization of settlement charges
14
7
3
3
1
—
1
3
Net periodic pension costs
$
(85)
$
(21)
$
(38)
$
(14)
$
(22)
$
(3)
$
(4)
$
(7)
NON-QUALIFIED PENSION PLANS
Net periodic pension costs for non-qualified pension plans were not material for the three and nine months ended September 30, 2024, and 2023.
OTHER POST-RETIREMENT BENEFIT PLANS
Net periodic costs for OPEB plans were not material for the three and nine months ended September 30, 2024, and 2023.
17. INCOME TAXES
On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA created a new, zero-emission nuclear power PTC available for taxpayers beginning January 1, 2024. Through September 30, 2024, Duke Energy Carolinas and Duke Energy Progress have recorded PTC deferred tax assets of approximately $325 million and $59 million, respectively. These amounts represent the estimated net realizable value of the PTCs, which were deferred to a regulatory liability. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.
The Subsidiary Registrants will work with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 4 for additional information on Duke Energy Carolinas' approval for a stand-alone rider starting January 1, 2025.
In October 2024, $174 million of tax credits were sold for proceeds approximating carrying value, including $150 million of nuclear power PTCs sold by Duke Energy Carolinas.
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FINANCIAL STATEMENTS
INCOME TAXES
EFFECTIVE TAX RATES
The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Duke Energy
11.2
%
2.8
%
12.5
%
9.0
%
Duke Energy Carolinas
7.7
%
4.9
%
9.8
%
8.0
%
Progress Energy
16.1
%
15.7
%
16.4
%
16.2
%
Duke Energy Progress
12.9
%
11.8
%
14.1
%
13.0
%
Duke Energy Florida
20.5
%
20.8
%
19.9
%
20.3
%
Duke Energy Ohio
11.9
%
14.9
%
15.8
%
15.8
%
Duke Energy Indiana
15.7
%
18.5
%
16.3
%
17.8
%
Piedmont
29.4
%
26.3
%
18.4
%
17.2
%
The increase in the ETR for Duke Energy for the three months ended September 30, 2024, was primarily due to benefits associated with tax efficiency efforts in the prior year and a decrease in the amortization of EDIT. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
The increase in the ETR for Duke Energy for the nine months ended September 30, 2024, was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
The increase in the ETR for Duke Energy Carolinas for the three months ended September 30, 2024, was primarily due to a decrease in the amortization of EDIT.
The increase in the ETR for Duke Energy Carolinas for the nine months ended September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax income.
The increase in the ETR for Duke Energy Progress for the three months ended September 30, 2024, was primarily due to a decrease in the amortization of EDIT.
The increase in the ETR for Duke Energy Progress for the nine months ended September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax income.
The decrease in the ETR for Duke Energy Ohio for the three months ending September 30, 2024, was primarily due to the amortization of EDIT in relation to pretax income.
The decrease in the ETR for Duke Energy Indiana for the three and nine months ended September 30, 2024, was primarily due to an increase in the amortization of EDIT.
The increase in the ETR for Piedmont for the three months ending September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax losses.
The increase in the ETR for Piedmont for the nine months ending September 30, 2024, was primarily due a decrease in the amortization of EDIT.
18. SUBSEQUENT EVENTS
For information on subsequent events related to regulatory matters, debt and credit facilities and income taxes, see Notes 4, 6 and 17, respectively.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.
DUKE ENERGY
Duke Energy is an energy company headquartered in Charlotte, North Carolina, and operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. Duke Energy’s consolidated financial information includes the results of the Subsidiary Registrants, which along with Duke Energy are collectively referred to as the Duke Energy Registrants.
Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the nine months ended September 30, 2024, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023.
Executive Overview
Operational Excellence, Safety and Reliability. The reliable and safe operation of our power generating facilities, electric distribution system and natural gas infrastructure in our communities continues to be foundational to serving our customers, our financial results, and our credibility with stakeholders. In recent months, we have responded to several unprecedented and catastrophic weather events across our service territories.
In August 2024, Hurricane Debby made landfall in Florida as a Category 1 storm, impacting the Duke Energy Florida territory as well as the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina and causing approximately 700,000 customer outages. In late September 2024, Hurricane Helene made landfall in Florida as a Category 4 storm and subsequently impacted all of Duke Energy's service territories as the storm moved inland, with the most severe damage occurring in Florida and the Carolinas. Approximately 3.5 million customers were impacted by Hurricane Helene across Duke Energy's system, the largest number of companywide outages from a single event on our system ever reported. Then, in October 2024, Hurricane Milton made landfall in Florida as a Category 3 storm, causing severe damage across our Florida service territory as a result of high winds, rain and flooding and resulting in more than 1 million customer outages.
In such extreme circumstances, our immediate priority is, and always will be, executing the extensive storm preparation and response work to ensure the safe, timely, and efficient restoration of service to impacted customers as quickly as possible. Round-the-clock power restoration efforts continued following the historic damage inflicted by these storms with lineworkers, tree trimmers and removal experts, state department of transportation workers and countless others, working to repair and, in certain areas, completely rebuild, the critical electricity infrastructure that powers and supports the communities we serve. We've also seen the benefits of ongoing grid hardening investments, leveraging self-healing technologies and remote restoration capabilities to automate the rerouting of power, more effectively deploy resources, and reduce the frequency or duration of outages for many of our customers during severe weather events.
We will continue the important work of rebuilding our communities in the weeks and months ahead, including power infrastructure in the hardest-hit areas of our service territories. We also plan to work with our state commissions to appropriately track and recover storm costs under approved regulatory frameworks on a timely basis. We will also remain focused on balancing the bill impacts on our customers from such catastrophic events, including seeking insurance recovery and exploring the potential securitization of related costs in certain jurisdictions, as appropriate. For more information, see "Matters Impacting Future Results," "Liquidity and Capital Resources," and Notes 4 and 6 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Debt and Credit Facilities."
Advancing Our Clean Energy Transition. During the nine months ended September 30, 2024, we continued to execute on our clean energy transition, remaining focused on reliability and affordability while delivering increasingly clean energy and providing strong, sustainable value for shareholders, customers, communities and employees.
•In May 2024, we entered into memorandums of understanding with several large customers, which propose exploring new and innovative approaches to support carbon-free energy generation and serve future energy needs of large businesses in North Carolina and South Carolina through the use of new tariff structures. The proposed Accelerating Clean Energy (ACE) tariff framework includes new, voluntary pricing structures for large commercial and industrial customers, which enable their direct support of carbon-free energy generation investments including facilitating beneficial customer on-site generation and load flexibility programs. The proposed ACE tariffs would be subject to regulatory approvals and include protections for non-participating customers.
•In January 2024, we filed supplemental modeling and analysis with the NCUC and PSCSC related to our combined systemwide Carolinas Resource Plan filed in August 2023. These updates were necessary due to substantially increased load forecasts resulting from continued economic development successes in the Carolinas occurring since the systemwide integrated resource plan was prepared. In March 2024, we filed for: (i) CPCNs with the NCUC for new natural gas generation facilities at the sites of the current Marshall Steam Station and Roxboro Plant in the Carolinas; and (ii) a Certificate of Environmental Compatibility and Public Convenience and Necessity with the PSCSC for a new solar center and associated facilities in Chesterfield and Darlington counties, South Carolina. Our energy transition strategy continues to focus on delivering a path to cleaner energy in a manner that protects grid reliability and affordability, all while meeting the energy demands of the growing and economically vibrant communities that we serve.
•As we continue to strengthen our grid and bring clean energy resources online, our customers are important partners in our clean energy future. In January 2024, we received approval for PowerPairSM, a new incentive-based pilot program for installing home solar generation with battery energy storage in our Duke Energy Carolinas and Duke Energy Progress North Carolina service territories. Enrollment options for residential customers that participate in the pilot include a one-time incentive of up to $9,000 for the installation of a solar plus battery system. The program was launched in May 2024 and successfully enrolled more than 1,300 customers in its first three months, providing another impactful way for our customers to save energy and money, while exploring new solutions to help manage low carbon grids of the future.
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Regulatory Activity. During the nine months ended September 30, 2024, we continued to move our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.
•In January 2024, Duke Energy Carolinas filed a South Carolina rate case, the first base rate case filed by Duke Energy Carolinas in the state since 2018 and reflecting the South Carolina retail allocation of significant investments, including approximately $1.5 billion of transmission and distribution assets. In May 2024, we reached a constructive comprehensive settlement with certain parties and in July 2024, the PSCSC issued an order approving the settlement and revising recovery of certain environmental compliance costs. New rates were effective August 1, 2024.
•In April 2024, we filed formal requests for new base rates across several jurisdictions including Duke Energy Florida, Duke Energy Indiana and Piedmont.
•Duke Energy Florida filed a three-year rate plan that will begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024, and proposed approximately $4.9 billion in incremental investments to reduce outages, expand solar generation, and increase generation unit efficiency. In August 2024, the FPSC approved our constructive comprehensive settlement with certain parties, allowing us to continue making important investments to reduce outages, shorten response times, meet future energy demands, increase clean, solar generation and explore innovative technologies to generate cost savings for our customers.
•Duke Energy Indiana filed a general rate case with the IURC requesting an overall increase in revenues of $492 million. This is the first base rate case filed by Duke Energy Indiana since 2019 and reflects strategic investments to improve grid reliability and security, serve a growing customer base, and meet environmental regulations. These investments, which include approximately 345 miles of new power lines expected to be constructed through 2025, will support the more than 60,000 new customers anticipated since our last base rate case.
•Piedmont filed a general rate case with the NCUC, its first base rate case in North Carolina since 2021, reflecting significant investments to support ongoing service reliability, system growth, and compliance with federal pipeline safety regulations in addition to two energy reliability centers in eastern North Carolina. In September 2024, we reached a constructive comprehensive settlement with certain parties. Revised interim rates were effective November 1, 2024, subject to refund and pending NCUC approval of the settlement and a final order.
•Also, in April 2024, Duke Energy Progress issued $177 million of storm recovery bonds, our first issuance under South Carolina's 2022 securitization legislation, which provided the necessary framework for us to lower the bill impacts on our customers related to critical storm restoration activities.
Matters Impacting Future Results
The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.
Regulatory Matters
Coal Ash Costs
In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities. Duke Energy is participating in legal challenges to the 2024 CCR Rule.
Cost recovery for future expenditures is anticipated and will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. The majority of spend is expected to occur over the next 10 years. For more information, see "Other Matters" and Notes 4 and 7 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Asset Retirement Obligations."
Fuel Cost Recovery
As a result of rapidly rising commodity costs during 2022, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues led to an increase in the under collection of fuel costs from customers in jurisdictions including those served by Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. These amounts have been deferred in regulatory assets and impacted the cash flows of the registrants, including increased borrowings to temporarily finance related expenditures until recovery. Regulatory filings have been made and approved for recovery of all remaining uncollected 2022 fuel costs. Across all jurisdictions, Duke Energy is currently on pace to recover approximately $1.8 billion of deferred fuel costs in 2024 and we anticipate being in line with our historical average balance of deferred fuel costs by the end of this year.
Storm Cost Recovery
Beginning in the third quarter of 2024, a series of major storm events occurred that resulted in significant damage to utility infrastructure within our service territories and primarily impacted Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's electric utility operations. Hurricanes Debby, Helene and Milton caused widespread outages and included unprecedented damage to certain assets, including the hardest-hit areas on the western coast of Florida and certain regions in western North Carolina and upstate South Carolina. Appropriate storm cost recovery mechanisms are in place to track and recover incremental costs from such events. Funding restoration activities and, in some cases, the complete rebuild of critical infrastructure, for a series of sequential events of this magnitude has resulted in incremental financing needs until cost recovery occurs and may impact the near-term results of operations, financial position, or cash flows of the impacted registrants. For more information related to storm cost estimates, regulatory asset deferrals, and financing activities, see "Liquidity and Capital Resources" and Notes 4 and 6 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Debt and Credit Facilities."
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MATTERS IMPACTING FUTURE RESULTS
EPA Regulations of GHG Emissions
In April 2024, the EPA issued a final rule under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants. Duke Energy is analyzing the potential impacts the rule could have on the Company, which could be material and may influence the timing, nature, and magnitude of future generation investments in our service territories. Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is participating in legal challenges to the final rule. For more information, see "Other Matters."
Supply Chain
The Company continues to monitor the ongoing stability of markets for key materials and other developments, including public policy outcomes, that could disrupt or impact the Company's supply chain and, as a result, may impact Duke Energy's execution of its capital plan, future financial results or the achievement of its clean energy goals.
Goodwill
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2024. As of this date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio. While no goodwill impairment charges were recorded in 2024, the potential for deteriorating economic conditions impacting GU&I's future cash flows or equity valuations of peer companies could impact the estimated fair value of GU&I, and goodwill impairment charges could be recorded in the future.
Other
Duke Energy continues to monitor general market conditions, including the potential for interest rate pressures on the Company's cost of capital, which may impact Duke Energy's execution of its capital plan, future financial results, or the achievement of its clean energy goals.
Results of Operations
Non-GAAP Measures
Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures, adjusted earnings and adjusted EPS, discussed below. Non-GAAP financial measures are numerical measures of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and basic per share amounts, adjusted for the dollar and per share impact of special items. As discussed below, special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Basic Earnings (Loss) Per Share, respectively.
Special items included in the periods presented below include the following, which management believes do not reflect ongoing costs:
•Regulatory Matters primarily represents impairment charges related to Duke Energy Carolinas' South Carolina rate case order in 2024 and the Duke Energy North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order in 2023.
•System Post-Implementation Costs represents the net impact of charges related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.
•Preferred Redemption Costs represents charges related to the redemption of Series B Preferred Stock.
Discontinued operations primarily represents the operating results and impairments recognized related to the sale of Duke Energy's Commercial Renewables Disposal Groups.
Three Months Ended September 30, 2024, as compared to September 30, 2023
GAAP reported EPS was $1.60 for the three months ended September 30, 2024, compared to $1.59 for the three months ended September 30, 2023. In addition to the drivers below, GAAP reported EPS increased primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s third quarter 2024 adjusted EPS was $1.62 compared to $1.94 for the third quarter of 2023. The decrease in adjusted EPS was primarily due to a higher effective tax rate, storm costs, interest expense, and depreciation expense on a growing asset base, partially offset by growth from rate increases and riders.
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The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
Three Months Ended September 30,
2024
2023
(in millions, except per share amounts)
Earnings
EPS
Earnings
EPS
GAAP Reported Earnings/GAAP Reported Earnings Per Share
$
1,226
$
1.60
$
1,213
$
1.59
Adjustments:
Regulatory Matters(a)
—
—
84
0.11
System Post-Implementation Costs(b)
16
0.02
—
—
Preferred Redemption Costs(c)
16
0.02
—
—
Discontinued Operations(d)
(22)
(0.03)
190
0.24
Adjusted Earnings/Adjusted EPS
$
1,236
$
1.62
$
1,487
$
1.94
Note: Total EPS may not foot due to rounding.
(a)Net of $27 million tax benefit. $95 million recorded within Impairment of assets and other charges and $16 million recorded within Operations, maintenance and other.
(b)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
(c)Recorded within Preferred Redemption Costs.
(d)Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to Noncontrolling Interests.
Nine Months Ended September 30, 2024, as compared to September 30, 2023
GAAP Reported EPS was $4.17 for the nine months ended September 30, 2024, compared to $2.27 for the nine months ended September 30, 2023. In addition to the drivers below, GAAP reported EPS increased primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $4.24 for the nine months ended September 30, 2024, compared to $4.05 for the nine months ended September 30, 2023. The increase in adjusted EPS was primarily due to growth from rate increases and riders, higher sales volumes and favorable weather, partially offset by a higher effective tax rate, interest expense, and depreciation expense on a growing asset base.
The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
Nine Months Ended September 30,
2024
2023
(in millions, except per share amounts)
Earnings
EPS
Earnings
EPS
GAAP Reported Earnings/GAAP Reported EPS
$
3,211
$
4.17
$
1,744
$
2.27
Adjustments:
Regulatory Matters(a)
25
0.03
84
0.11
System Post-Implementation Costs(b)
16
0.02
—
—
Preferred Redemption Costs(c)
16
0.02
—
—
Discontinued Operations(d)
(9)
(0.01)
1,283
1.67
Adjusted Earnings/Adjusted EPS
$
3,259
$
4.24
$
3,111
$
4.05
Note: Total EPS may not foot due to rounding.
(a)Net of $8 million tax benefit and $27 million tax benefit for the nine months ended September 30, 2024, and 2023, respectively. $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense for the nine months ended September 30, 2024. $95 million recorded within Impairment of assets and other charges and $16 million recorded within Operations, maintenance and other for the nine months ended September 30, 2023.
(b)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
(c)Recorded within Preferred Redemption Costs.
(d)Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to Noncontrolling Interests.
SEGMENT RESULTS
The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.
Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.
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SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE
Electric Utilities and Infrastructure
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
2024
2023
Variance
Operating Revenues
$
7,852
$
7,715
$
137
$
21,475
$
20,363
$
1,112
Operating Expenses
Fuel used in electric generation and purchased power
2,664
2,591
73
7,266
7,045
221
Operation, maintenance and other
1,387
1,398
(11)
3,965
4,008
(43)
Depreciation and amortization
1,352
1,209
143
3,823
3,493
330
Property and other taxes
345
392
(47)
1,033
1,077
(44)
Impairment of assets and other charges
(5)
88
(93)
38
100
(62)
Total operating expenses
5,743
5,678
65
16,125
15,723
402
Gains on Sales of Other Assets and Other, net
2
2
—
9
30
(21)
Operating Income
2,111
2,039
72
5,359
4,670
689
Other Income and Expenses, net
129
131
(2)
401
388
13
Interest Expense
514
468
46
1,501
1,364
137
Income Before Income Taxes
1,726
1,702
24
4,259
3,694
565
Income Tax Expense
244
224
20
631
531
100
Less: Income Attributable to Noncontrolling Interest
31
31
—
66
75
(9)
Segment Income
$
1,451
$
1,447
$
4
$
3,562
$
3,088
$
474
Duke Energy Carolinas GWh sales
24,848
24,810
38
69,720
66,367
3,353
Duke Energy Progress GWh sales
19,107
19,704
(597)
52,439
50,503
1,936
Duke Energy Florida GWh sales
13,423
13,665
(242)
34,124
34,055
69
Duke Energy Ohio GWh sales
6,804
6,356
448
18,494
17,694
800
Duke Energy Indiana GWh sales
8,550
8,526
24
23,541
22,803
738
Total Electric Utilities and Infrastructure GWh sales
72,732
73,061
(329)
198,318
191,422
6,896
Net proportional MW capacity in operation
54,416
54,407
9
Three Months Ended September 30, 2024, as compared to September 30, 2023
EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions and higher weather-normal retail sales volumes, offset by higher depreciation. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $152 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas and Duke Energy Progress and the 2021 Settlement at Duke Energy Florida;
•a $96 million increase in weather-normal retail sales volumes; and
•a $94 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year.
Partially offset by:
•a $92 million decrease in storm revenues at Duke Energy Florida;
•a $51 million decrease in rider revenues primarily due to a decrease in the return of EDIT to customers at Duke Energy Carolinas;
•a $32 million decrease in retail sales due to unfavorable weather compared to prior year, including the impacts of decoupling; and
•a $12 million decrease in franchise tax revenue primarily due to decreased revenues over prior year at Duke Energy Florida.
Operating Expenses. The variance was driven primarily by:
•a $143 million increase in depreciation and amortization primarily due to higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress and lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida; and
•a $73 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana.
97
MD&A
SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE
Partially offset by:
•a $93 million decrease in impairments of assets and other charges primarily related to the prior year rate case impacts at Duke Energy Carolinas and Duke Energy Progress;
•a $47 million decrease in property and other taxes due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues at Duke Energy Florida; and
•an $11 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida, lower storm and nuclear outage costs at Duke Energy Progress, partially offset by higher storm costs at Duke Energy Carolinas.
Interest Expense. The increase was primarily driven by higher outstanding debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and the decrease in the amortization of EDIT. The ETRs for the three months ended September 30, 2024, and 2023, were 14.1% and 13.2%, respectively. The increase in the ETR is primarily due to a decrease in the amortization of EDIT.
Nine Months Ended September 30, 2024, as compared to September 30, 2023
EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions, improved weather, and higher weather-normal retail sales volumes, partially offset by higher depreciation. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $458 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Kentucky and the 2021 Settlement at Duke Energy Florida;
•a $259 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
•a $204 million increase in weather-normal retail sales volumes;
•a $195 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year;
•a $63 million increase in other revenues for customer programs at Duke Energy Florida; and
•a $50 million increase in rider revenues primarily for the Distribution Capital Investment Rider at Duke Energy Ohio.
Partially offset by:
•a $127 million decrease in storm revenues at Duke Energy Florida.
Operating Expenses. The variance was driven primarily by:
•a $330 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida and higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress; and
•a $221 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio.
Partially offset by:
•a $62 million decrease in impairment of assets and other charges primarily related to the prior year North Carolina rate case impacts at Duke Energy Carolinas and Duke Energy Progress;
•a $44 million decrease in property and other taxes due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues at Duke Energy Florida; and
•a $43 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida and lower outage work at Duke Energy Indiana, partially offset by higher employee-related expenses, higher customer charge-offs and higher storm costs at Duke Energy Carolinas.
Gains on Sales of Other Assets and Other, net. The decrease was primarily due to the sale of the Mint Street parking deck in the prior year at Duke Energy Carolinas.
Interest Expense. The increase was primarily driven by higher outstanding debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income. The ETRs for the nine months ended September 30, 2024, and 2023, were 14.8% and 14.4%, respectively.
98
MD&A
SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE
Gas Utilities and Infrastructure
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
2024
2023
Variance
Operating Revenues
$
332
$
313
$
19
$
1,615
$
1,583
$
32
Operating Expenses
Cost of natural gas
70
57
13
380
434
(54)
Operation, maintenance and other
113
103
10
359
332
27
Depreciation and amortization
100
88
12
294
257
37
Property and other taxes
36
32
4
120
93
27
Impairment of assets and other charges
—
—
—
—
(4)
4
Total operating expenses
319
280
39
1,153
1,112
41
Losses on Sales of Other Assets and Other, net
—
—
—
—
(1)
1
Operating Income
13
33
(20)
462
470
(8)
Other Income and Expenses, net
15
39
(24)
49
86
(37)
Interest Expense
67
56
11
189
158
31
(Loss) Income Before Income Taxes
(39)
16
(55)
322
398
(76)
Income Tax (Benefit) Expense
(14)
1
(15)
57
71
(14)
Segment (Loss) Income
$
(25)
$
15
$
(40)
$
265
$
327
$
(62)
Piedmont LDC throughput (dekatherms)
162,163,516
143,224,608
18,938,908
453,695,306
426,926,457
26,768,849
Duke Energy Midwest LDC throughput (Mcf)
9,607,415
9,745,709
(138,294)
55,774,760
55,298,840
475,920
Three Months Ended September 30, 2024, as compared to September 30, 2023
GU&I’s results were impacted primarily by higher depreciation and amortization and interest expense, partially offset by higher margin growth. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues.The variance was driven primarily by:
•a $5 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenue at Duke Energy Ohio;
•a $4 million increase due to unregulated Renewable Natural Gas (RNG) revenue;
•a $4 million increase due to the North Carolina IMR; and
•a $4 million increase due to Tennessee ARM revenue.
Operating Expenses.The variance was driven primarily by:
•a $13 million increase in cost of natural gas due to higher volumes and higher rates passed through to customers;
•a $12 million increase in depreciation and amortization due to higher depreciable base; and
•a $10 million increase in operations, maintenance and other primarily due to higher employee-related costs, higher operating costs for new RNG projects and higher spend for outside services.
Other Income and Expenses, net. The decrease was primarily due to the revision in the prior year related to the Atlantic Coast Pipeline (ACP) ARO closure cost.
Interest Expense.The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax (Benefit) Expense. The increase in tax benefit was primarily due to a decrease in pretax income. The ETRs for the three months ended September 30, 2024, and 2023, were 35.9% and 6.3%, respectively. The increase in the ETR was primarily due to the amortization of EDIT in relation to pretax losses.
Nine Months Ended September 30, 2024, as compared to September 30, 2023
GU&I’s results were impacted primarily by higher depreciation and amortization, higher interest expense and higher property and other taxes, partially offset by higher margin growth. The following is a detailed discussion of the variance drivers by line item.
99
MD&A
SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE
Operating Revenues.The variance was driven primarily by:
•a $31 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenue at Duke Energy Ohio;
•a $21 million increase due to Tennessee ARM revenue;
•a $16 million increase due to the North Carolina IMR;
•a $16 million increase due to unregulated RNG revenue; and
•a $10 million increase due to rate stabilization mechanisms in South Carolina.
Partially offset by:
•a $66 million decrease due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Operating Expenses.The variance was driven primarily by:
•a $37 million increase in depreciation and amortization due to higher depreciable base, higher depreciation for certain unregulated RNG projects and lower CEP deferrals;
•a $27 million increase in property and other taxes due to a higher base upon which property taxes are levied; and
•a $27 million increase in operations, maintenance and other primarily due to higher operating costs for new RNG projects, higher employee-related costs, higher IT project costs and higher spend for outside services.
Partially offset by:
•a $54 million decrease in cost of natural gas due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Other Income and Expenses, Net. The decrease was primarily due to the revision in the prior year related to the ACP ARO closure cost and lower revenue in the current year at SustainRNG.
Interest Expense.The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax (Benefit) Expense. The decrease in tax expense was primarily due to a decrease in pretax income. The ETRs for the nine months ended September 30, 2024, and 2023, were 17.7% and 17.8%, respectively.
Other
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
2024
2023
Variance
Operating Revenues
$
42
$
33
$
9
$
120
$
98
$
22
Operating Expenses
31
4
27
157
53
104
Gains on Sales of Other Assets and Other, net
5
5
—
16
16
—
Operating Income (Loss)
16
34
(18)
(21)
61
(82)
Other Income and Expenses, net
72
47
25
218
168
50
Interest Expense
321
283
38
921
810
111
Loss Before Income Taxes
(233)
(202)
(31)
(724)
(581)
(143)
Income Tax Benefit
(66)
(182)
116
(207)
(285)
78
Less: Preferred Dividends
39
39
—
92
92
—
Less: Preferred Redemption Costs
16
—
16
16
—
16
Net Loss
$
(222)
$
(59)
$
(163)
$
(625)
$
(388)
$
(237)
Three Months Ended September 30, 2024, as compared to September 30, 2023
Other's results were impacted by a favorable prior year adjustment related to certain allowable tax deductions and higher interest expense driven by higher outstanding long-term debt balances and interest rates.
Operating Expenses. The increase was driven by franchise tax benefits recognized in the prior year.
Other Income and Expenses, net. The variance was primarily due to higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments, partially offset by lower equity earnings from the NMC investment.
Interest Expense. The increase was primarily due to higher outstanding long-term debt balances and interest rates.
100
MD&A
SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE
Income Tax Benefit. The decrease in the tax benefit was primarily due to the benefits associated with the tax efficiency efforts in the prior year. The ETRs for the three months ended September 30, 2024, and 2023, were 28.3% and 90.1%, respectively. The decrease in the ETR was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
Preferred Redemption Costs. The increase was due to the redemption of the Company’s Series B Preferred Stock.
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Other's results were impacted by higher interest expense driven by higher outstanding long-term debt balances and interest rates and decreases in the income tax benefit and franchise tax benefits.
Operating Revenues. The increase was primarily driven by favorable premiums related to captive insurance.
Operating Expenses. The increase was driven by franchise tax benefits recognized in the prior year, higher claim reserves related to captive insurance, contributions to the Duke Energy Foundation and increased expense on certain employee benefit obligations in the current year.
Other Income and Expenses, net. The variance was primarily due to higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments.
Interest Expense. The increase was primarily due to higher outstanding long-term debt balances and interest rates.
Income Tax Benefit. The decrease in the tax benefit was primarily due to the benefits associated with tax efficiency efforts in the prior year, partially offset by an increase in pretax losses. The ETRs for the nine months ended September 30, 2024, and 2023, were 28.6% and 49.1%, respectively. The decrease in the ETR was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
Preferred Redemption Costs. The increase was due to the redemption of the Company’s Series B Preferred Stock.
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
2024
2023
Variance
Income (Loss) From Discontinued Operations, net of tax
$
25
$
(152)
$
177
$
12
$
(1,316)
$
1,328
Three Months Ended September 30, 2024, as compared to September 30, 2023
The variance was primarily driven by impairments on the sale of the Commercial Renewables business recorded in the prior year.
Nine Months Ended September 30, 2024, as compared to September 30, 2023
The variance was primarily driven by impairments on the sale of the Commercial Renewables business recorded in the prior year.
DUKE ENERGY CAROLINAS
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
7,411
$
6,155
$
1,256
Operating Expenses
Fuel used in electric generation and purchased power
2,531
1,823
708
Operation, maintenance and other
1,358
1,285
73
Depreciation and amortization
1,306
1,186
120
Property and other taxes
271
276
(5)
Impairment of assets and other charges
32
70
(38)
Total operating expenses
5,498
4,640
858
Gains on Sales of Other Assets and Other, net
1
26
(25)
Operating Income
1,914
1,541
373
Other Income and Expenses, net
181
181
—
Interest Expense
537
504
33
Income Before Income Taxes
1,558
1,218
340
Income Tax Expense
153
97
56
Net Income
$
1,405
$
1,121
$
284
101
MD&A
DUKE ENERGY CAROLINAS
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
5.8
%
General service sales
4.0
%
Industrial sales
(0.2)
%
Wholesale power sales
14.1
%
Joint dispatch sales
2.3
%
Total sales
5.1
%
Average number of customers
2.2
%
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues.The variance was driven primarily by:
•a $688 million increase in fuel revenues due to higher fuel rates and volumes;
•a $277 million increase due to higher pricing from the North Carolina and South Carolina rate cases;
•a $129 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
•a $93 million increase in weather-normal retail sales volumes; and
•a $27 million increase in wholesale power revenues primarily due to higher contractual demand and sales.
Operating Expenses. The variance was driven primarily by:
•a $708 million increase in fuel used in electric generation and purchased power primarily due to the recovery of fuel expense, and higher volumes, partially offset by lower natural gas prices;
•a $120 million increase in depreciation and amortization primarily due to higher depreciable base and higher net amortizations driven by the North Carolina rate case; and
•a $73 million increase in operation, maintenance and other primarily due to higher employee-related expenses, higher customer charge-offs and higher storm costs.
Partially offset by:
•a $38 million decrease in impairment of assets and other charges primarily related to the prior year North Carolina rate case order and the current year South Carolina rate case order.
Gains on Sales of Other Assets and Other, net. The decrease was primarily due to the sale of the Mint Street parking deck in the prior year.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense.The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.
102
MD&A
PROGRESS ENERGY
PROGRESS ENERGY
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
10,445
$
10,315
$
130
Operating Expenses
Fuel used in electric generation and purchased power
3,729
3,902
(173)
Operation, maintenance and other
1,869
1,963
(94)
Depreciation and amortization
1,795
1,609
186
Property and other taxes
494
546
(52)
Impairment of assets and other charges
6
29
(23)
Total operating expenses
7,893
8,049
(156)
Gains on Sales of Other Assets and Other, net
20
20
—
Operating Income
2,572
2,286
286
Other Income and Expenses, net
178
146
32
Interest Expense
796
706
90
Income Before Income Taxes
1,954
1,726
228
Income Tax Expense
320
280
40
Net Income
$
1,634
$
1,446
$
188
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues. The variance was driven primarily by:
•a $150 million increase due to higher pricing from the North Carolina and South Carolina rate cases at Duke Energy Progress and the 2021 Settlement at Duke Energy Florida;
•a $99 million increase in weather-normal retail sales volumes at Duke Energy Progress;
•an $86 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling, at Duke Energy Progress and Duke Energy Florida;
•a $63 million increase in Clean Energy Connection subscription revenues, higher residential fixed bill program revenues and higher transmission revenues at Duke Energy Florida;
•a $42 million increase in rider revenues primarily due to higher rates for the Storm Protection Plan at Duke Energy Florida; and
•a $12 million increase in wholesale revenues, net of fuel, due to higher sales volumes and capacity rates at Duke Energy Progress.
Partially offset by:
•a $159 million decrease in fuel and capacity revenues primarily due to lower fuel and capacity rates billed to retail customers at Duke Energy Florida, partially offset by an increase in fuel rates and volumes at Duke Energy Progress;
•a $127 million decrease in storm revenues at Duke Energy Florida; and
•a $25 million decrease in franchise tax revenue primarily due to decreased revenues over prior year at Duke Energy Florida.
Operating Expenses. The variance was driven primarily by:
•a $173 million decrease in fuel used in electric generation and purchased power primarily due to a decrease in purchased power costs driven by expiration of contracts in current year, lower fuel costs driven by lower natural gas prices and a decrease due to fuel cost recovery at Duke Energy Florida, partially offset by higher volumes and recovery of fuel expenses at Duke Energy Progress;
•a $94 million decrease in operation, maintenance and other primarily due to lower storm amortization at Duke Energy Florida;
•a $52 million decrease in property and other taxes primarily due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues at Duke Energy Florida; and
•a $23 million decrease in impairment of assets and other charges due to prior year rate case impacts at Duke Energy Progress.
Partially offset by:
•a $186 million increase in depreciation and amortization due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida and higher net amortizations driven by the North Carolina rate case and higher depreciable base at Duke Energy Progress.
103
MD&A
PROGRESS ENERGY
Other Income and Expenses, net. The increase was primarily driven by miscellaneous income and AFUDC equity due to higher AFUDC base compared to prior year at Duke Energy Progress and other post-employment benefit activity at Duke Energy Florida.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates at Duke Energy Progress.
Income Tax Expense.The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in PTCs.
DUKE ENERGY PROGRESS
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
5,338
$
4,844
$
494
Operating Expenses
Fuel used in electric generation and purchased power
1,896
1,685
211
Operation, maintenance and other
1,077
1,051
26
Depreciation and amortization
999
935
64
Property and other taxes
144
143
1
Impairment of assets and other charges
6
31
(25)
Total operating expenses
4,122
3,845
277
Gains on Sales of Other Assets and Other, net
2
2
—
Operating Income
1,218
1,001
217
Other Income and Expenses, net
107
92
15
Interest Expense
370
315
55
Income Before Income Taxes
955
778
177
Income Tax Expense
135
101
34
Net Income
$
820
$
677
$
143
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior period
2024
Residential sales
4.4
%
General service sales
3.6
%
Industrial sales
(3.5)
%
Wholesale power sales
4.3
%
Joint dispatch sales
4.8
%
Total sales
3.8
%
Average number of customers
2.1
%
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues. The variance was driven primarily by:
•a $227 million increase in fuel revenues due to higher fuel rates and volumes;
•a $99 million increase in weather-normal retail sales volumes;
•a $96 million increase due to higher pricing from the North Carolina and South Carolina rate cases;
•a $74 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling; and
•a $12 million increase in wholesale revenues, net of fuel, due to higher sales volumes and capacity rates.
Operating Expenses. The variance was driven primarily by:
•a $211 million increase in fuel used in electric generation and purchased power primarily due to the recovery of fuel expenses and higher volumes, partially offset by lower natural gas prices;
•a $64 million increase in depreciation and amortization primarily due to higher net amortizations driven by the North Carolina rate case and higher depreciable base; and
•a $26 million increase in operation, maintenance and other primarily due to higher storm costs and higher employee-related expenses, partially offset by lower project costs.
104
MD&A
DUKE ENERGY PROGRESS
Partially offset by:
•a $25 million decrease in impairment of assets and other charges primarily due to prior year rate case impacts.
Other Income and Expenses, net. The increase was driven primarily by miscellaneous income and AFUDC equity due to higher AFUDC base compared to prior year.
Interest Expense. The increase was driven primarily by higher outstanding debt balances and interest rates.
Income Tax Expense.The increase in tax expense was primarily due to an increase in pretax income.
DUKE ENERGY FLORIDA
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
5,092
$
5,456
$
(364)
Operating Expenses
Fuel used in electric generation and purchased power
1,833
2,218
(385)
Operation, maintenance and other
779
898
(119)
Depreciation and amortization
796
674
122
Property and other taxes
350
403
(53)
Impairment of assets and other charges
—
(1)
1
Total operating expenses
3,758
4,192
(434)
Gains on Sales of Other Assets and Other, net
2
1
1
Operating Income
1,336
1,265
71
Other Income and Expenses, net
67
56
11
Interest Expense
339
305
34
Income Before Income Taxes
1,064
1,016
48
Income Tax Expense
212
206
6
Net Income
$
852
$
810
$
42
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior period
2024
Residential sales
—
%
General service sales
0.7
%
Industrial sales
(1.1)
%
Wholesale power sales
(6.1)
%
Total sales
0.2
%
Average number of customers
2.2
%
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues. The variance was driven primarily by:
•a $385 million decrease in fuel and capacity revenues primarily due to lower fuel and capacity rates;
•a $127 million decrease in storm revenues; and
•a $25 million decrease in franchise tax revenue primarily due to decreased revenues over prior year.
Partially offset by:
•a $63 million increase in higher transmission revenues, higher Clean Energy Connection subscription revenues and higher residential fixed bill program revenues;
•a $54 million increase due to higher pricing from the 2021 Settlement;
•a $42 million increase in rider revenues primarily due to higher rates for the Storm Protection Plan, Energy Conservation Cost Recovery and Environmental Cost Recovery; and
•a $12 million increase in retail sales due to improved weather compared to prior year.
105
MD&A
DUKE ENERGY FLORIDA
Operating Expenses. The variance was driven primarily by:
•a $385 million decrease in fuel used in electric generation and purchased power primarily due to lower purchased power costs driven by the expiration of contracts in the current year and lower fuel costs driven by lower natural gas prices and fuel cost recovery;
•a $119 million decrease in operation, maintenance and other primarily due to lower storm amortization; and
•a $53 million decrease in property and other taxes primarily due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues.
Partially offset by:
•a $122 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base.
Other Income and Expenses, net. The increase was primarily driven by other post-employment benefit activity.
Interest Expense. The increase was primarily driven by lower interest credits on recovery clauses due to lower deferred balances, higher outstanding debt balances and interest rates, partially offset by lower intercompany interest income.
DUKE ENERGY OHIO
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
Regulated electric
$
1,431
$
1,411
$
20
Regulated natural gas
460
464
(4)
Total operating revenues
1,891
1,875
16
Operating Expenses
Fuel used in electric generation and purchased power
416
485
(69)
Cost of natural gas
100
118
(18)
Operation, maintenance and other
378
358
20
Depreciation and amortization
297
266
31
Property and other taxes
303
258
45
Total operating expenses
1,494
1,485
9
Operating Income
397
390
7
Other Income and Expenses, net
12
33
(21)
Interest Expense
144
125
19
Income Before Income Taxes
265
298
(33)
Income Tax Expense
42
47
(5)
Net Income
$
223
$
251
$
(28)
The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Electric
Natural Gas
Increase (Decrease) over prior year
2024
2024
Residential sales
4.8
%
(0.9)
%
General service sales
4.7
%
(0.8)
%
Industrial sales
(5.9)
%
18.7
%
Wholesale electric power sales
50.8
%
n/a
Other natural gas sales
n/a
(0.9)
%
Total sales
4.5
%
0.9
%
Average number of customers
1.1
%
0.9
%
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DUKE ENERGY OHIO
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues. The variance was driven primarily by:
•a $35 million increase in retail revenue riders primarily due to the Distribution Capital Investment Rider, Distribution Storm Rider and Uncollectible Expense Rider, partially offset by a decrease in the Energy Efficiency Rider;
•a $31 million increase due to higher pricing from the Duke Energy Ohio natural gas rate case, net of decreases in the Ohio CEP rider and Accelerated Main Replacement Program Rider;
•a $31 million increase due to higher pricing from the Duke Energy Kentucky electric rate case;
•a $30 million increase in revenues related to higher Ohio Valley Electric Corporation (OVEC) rider collections and OVEC sales into PJM Interconnection, LLC;
•a $16 million increase due to improved weather compared to prior year; and
•a $14 million increase in transmission revenue.
Partially offset by:
•a $147 million decrease in fuel-related revenues primarily due to lower full-service retail sales volumes, as well as decreased natural gas costs.
Operating Expenses. The variance was driven primarily by:
•a $45 million increase in property and other taxes primarily due to a higher base upon which property taxes are levied, partially offset by lower franchise taxes;
•a $31 million increase in depreciation and amortization primarily driven by an increase in distribution plant in service and depreciation rates resulting from the Duke Energy Kentucky electric rate case implemented in 2023 and CEP deferrals in 2024; and
•a $20 million increase in operation, maintenance and other primarily due to higher employee-related expenses and storm costs.
Partially offset by:
•an $87 million decrease in fuel expense primarily driven by lower retail prices for natural gas and purchased power and a decrease in purchased power volumes.
Other Income and Expenses, net. The decreasewas primarily driven by lower intercompany interest income.
Interest Expense. The increase was primarily driven by higher outstanding debt balances and interest rates.
DUKE ENERGY INDIANA
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
2,342
$
2,606
$
(264)
Operating Expenses
Fuel used in electric generation and purchased power
761
980
(219)
Operation, maintenance and other
510
524
(14)
Depreciation and amortization
507
500
7
Property and other taxes
37
42
(5)
Total operating expenses
1,815
2,046
(231)
Operating Income
527
560
(33)
Other Income and Expenses, net
44
58
(14)
Interest Expense
173
157
16
Income Before Income Taxes
398
461
(63)
Income Tax Expense
65
82
(17)
Net Income
$
333
$
379
$
(46)
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MD&A
DUKE ENERGY INDIANA
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
4.5
%
General service sales
2.1
%
Industrial sales
(0.4)
%
Wholesale power sales
(1.9)
%
Total sales
3.2
%
Average number of customers
1.7
%
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues. The variance was driven primarily by:
•a $233 million decrease in retail fuel revenues primarily due to lower fuel rates; and
•a $44 million decrease in wholesale revenues, including fuel, primarily due to the expiration of wholesale customer contracts.
Partially offset by:
•a $16 million increase in retail sales due to improved weather compared to prior year.
Operating Expenses. The variance was driven primarily by:
•a $219 million decrease in fuel used in electric generation and purchased power primarily due to lower deferred fuel amortization as well as lower purchased power expense and natural gas costs, partially offset by higher coal costs; and
•a $14 million decrease in operation, maintenance and other primarily due to lower outage costs.
Other Income and Expenses, net. The decrease was primarily due to lower intercompany interest income.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense. The decrease in tax expense was primarily due to a decrease in pretax income.
PIEDMONT
Results of Operations
Nine Months Ended September 30,
(in millions)
2024
2023
Variance
Operating Revenues
$
1,139
$
1,119
$
20
Operating Expenses
Cost of natural gas
280
316
(36)
Operation, maintenance and other
267
248
19
Depreciation and amortization
191
175
16
Property and other taxes
47
46
1
Impairment of assets and other charges
—
(4)
4
Total operating expenses
785
781
4
Operating Income
354
338
16
Other Income and Expenses, net
48
49
(1)
Interest Expense
135
120
15
Income Before Income Taxes
267
267
—
Income Tax Expense
49
46
3
Net Income
$
218
$
221
$
(3)
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MD&A
PIEDMONT
The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential deliveries
12.0
%
Commercial deliveries
10.3
%
Industrial deliveries
0.6
%
Power generation deliveries
6.7
%
For resale
(0.1)
%
Total throughput deliveries
6.3
%
Secondary market volumes
(8.9)
%
Average number of customers
1.6
%
Nine Months Ended September 30, 2024, as compared to September 30, 2023
Operating Revenues.The variance was driven primarily by:
•a $21 million increase due to Tennessee ARM;
•a $16 million increase due to North Carolina IMR;
•a $10 million increase due to rate stabilization mechanisms in South Carolina; and
•a $9 million increase due to customer growth.
Partially offset by:
• a $36 million decrease due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Operating Expenses.The variance was driven primarily by:
• a $19 million increase in operations, maintenance and other primarily due to higher employee-related costs, outside services, and service company costs; and
•a $16 million increase in depreciation and amortization due to higher depreciable base.
Partially offset by:
•a $36 million decrease in cost of natural gas due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Duke Energy relies primarily upon cash flows from operations, debt and equity issuances and its existing cash and cash equivalents to fund its liquidity and capital requirements. Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes and projected tax credits to be generated relating to the IRA, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023, included a summary and detailed discussion of projected primary sources and uses of cash for 2024 to 2026.
In 2024, Duke Energy executed several equity forward sales agreements as part of the ATM program. Settlement of the forward sales agreements is expected to occur by December 31, 2024. See Note 15 to the Condensed Consolidated Financial Statements, “Stockholders’ Equity” for further details. Also in 2024, Duke Energy Carolinas and Duke Energy Progress began recording nuclear PTC deferred tax assets related to the IRA and began monetizing the PTCs in the transferability markets established by the IRA beginning in October 2024. Duke Energy Carolinas and Duke Energy Progress will work with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 17 to the Condensed Consolidated Financial Statements, “Income Taxes,” for further information.
As of September 30, 2024, Duke Energy had $376 million of cash on hand and $5.4 billion available under its $9 billion Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs.
During the second quarter of 2024, Moody’s Investors Service, Inc. (Moody's) maintained the credit ratings and affirmed the ratings outlook for all of the Duke Energy Registrants, including Duke Energy Ohio. Operations in Kentucky are conducted through Duke Energy Ohio's wholly owned subsidiary, Duke Energy Kentucky. Moody's revised Duke Energy Kentucky's ratings outlook to stable, citing the expectation that a credit supportive outcome in the utility's most recent electric rate case will support credit metrics appropriate for its Baa1 rating.
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MD&A
LIQUIDITY AND CAPITAL RESOURCES
As discussed in Note 13 to the Condensed Consolidated Financial Statements, "Variable Interest Entities," Duke Energy terminated and repaid CRC in March 2024 and Duke Energy Florida terminated and repaid DEFR in April 2024. As a result of these repayments, CRC and DEFR have ceased operations and no longer acquire the receivables of Duke Energy’s subsidiaries. Duke Energy Carolinas and Duke Energy Progress continue to evaluate financing opportunities and anticipate termination and repayment of the borrowing facilities of DERF and DEPR prior to their scheduled termination dates in January 2025 and April 2025, respectively.
Beginning in the third quarter of 2024, a series of major storm events occurred that resulted in significant damage to utility infrastructure within our service territories and primarily impacted Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's electric utility operations. As discussed in Note 4, to the Condensed Consolidated Financial Statements, "Regulatory Matters," hurricanes Debby, Helene and Milton caused widespread outages and included unprecedented damage to certain assets, including the hardest-hit areas on the western coast of Florida and certain regions in western North Carolina and upstate South Carolina. Funding restoration activities and, in some cases, the complete rebuild of critical infrastructure, for a series of sequential events of this magnitude has resulted in incremental financing needs until cost recovery occurs. See "Matters Impacting Future Results" for further details and Note 6 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding Duke Energy's debt issuances and maturities, available credit facilities including the Master Credit Facility, and term loans executed in response to these major storm events.
See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for the timing and use of proceeds from the sale of certain Commercial Renewables assets to affiliates of Brookfield.
Cash Flow Information
The following table summarizes Duke Energy’s cash flows.
Nine Months Ended
September 30,
(in millions)
2024
2023
Cash flows provided by (used in):
Operating activities
$
8,951
$
7,309
Investing activities
(9,851)
(9,751)
Financing activities
990
2,413
Net increase (decrease) in cash, cash equivalents and restricted cash
90
(29)
Cash, cash equivalents and restricted cash at beginning of period
357
603
Cash, cash equivalents and restricted cash at end of period
$
447
$
574
OPERATING CASH FLOWS
The following table summarizes key components of Duke Energy’s operating cash flows.
Nine Months Ended
September 30,
(in millions)
2024
2023
Variance
Net income
$
3,387
$
1,878
$
1,509
Non-cash adjustments to net income
4,943
5,887
(944)
Contributions to qualified pension plans
(100)
(100)
—
Payments for asset retirement obligations
(417)
(423)
6
Working capital
763
(792)
1,555
Other assets and Other liabilities
375
859
(484)
Net cash provided by operating activities
$
8,951
$
7,309
$
1,642
The variance is primarily driven by:
•a $1,071 million decrease in net working capital and other assets and liabilities amounts, primarily due to the recovery of deferred fuel costs and the timing of accruals and payments; and
•a $565 million increase in net income, after adjustment for non-cash items, primarily due to growth from rate increases and riders, higher sales volumes and favorable weather, partially offset by higher interest expense and a higher effective tax rate.
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MD&A
LIQUIDITY AND CAPITAL RESOURCES
INVESTING CASH FLOWS
The following table summarizes key components of Duke Energy’s investing cash flows.
Nine Months Ended
September 30,
(in millions)
2024
2023
Variance
Capital, investment and acquisition expenditures
$
(9,199)
$
(9,340)
$
141
Other investing items
(652)
(411)
(241)
Net cash used in investing activities
$
(9,851)
$
(9,751)
$
(100)
The variance is primarily due to higher costs of removal in the current year and net proceeds received in the prior year related to the sale of certain assets, partially offset by lower capital expenditures in the current year due to the prior year sale of the Commercial Renewables business.
FINANCING CASH FLOWS
The following table summarizes key components of Duke Energy’s financing cash flows.
Nine Months Ended
September 30,
(in millions)
2024
2023
Variance
Issuances of long-term debt, net
$
4,927
$
5,607
$
(680)
Redemption of preferred stock
(1,000)
—
(1,000)
Notes payable, commercial paper and other short-term borrowings
(515)
(939)
424
Dividends paid
(2,411)
(2,438)
27
Contributions from noncontrolling interests
47
278
(231)
Other financing items
(58)
(95)
37
Net cash provided by financing activities
$
990
$
2,413
$
(1,423)
The variance is primarily due to:
•a $1 billion decrease due to the redemption of Series B preferred stock in the current year;
•a $680 million decrease in proceeds from net issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt; and
•a $231 million decrease in contributions from noncontrolling interests, primarily due to the prior year sale of the Commercial Renewables business.
Partially offset by:
•a $424 million increase in net borrowings from notes payable and commercial paper.
OTHER MATTERS
Environmental Regulations
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time and result in new obligations of the Duke Energy Registrants. Refer to Note 4, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, for further information regarding regulatory filings related to the Duke Energy Registrants.
In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities (Legacy CCR Surface Impoundments). The final rule also imposes a subset of the 2015 CCR Rule’s requirements, including groundwater monitoring, corrective action (where necessary), and in certain cases, closure, and post-closure care requirements, on previously unregulated coal ash sources at regulated facilities (CCR Management Units). CCR Management Units may include surface impoundments and landfills that closed prior to the effective date of the 2015 CCR Rule, inactive CCR landfills, and other areas where CCR is managed directly on the land at Duke Energy facilities. Duke Energy, as part of a group of similarly affected electric utilities, filed a petition to challenge the 2024 CCR Rule in the U.S. Court of Appeals for the District of Columbia Circuit on August 6, 2024. For more information, see Note 7 to the Condensed Consolidated Financial Statements, "Asset Retirement Obligations."
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MD&A
OTHER MATTERS
In April 2024, the EPA issued a final rule under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants, referred to as electric generating units (EGUs). EPA Rule 111 requires existing coal-fired power plants expected to operate in 2039 and beyond to reduce GHG emissions by 90% through the use of carbon capture and sequestration starting in 2032, subject to certain modifications for coal plants that retire sooner and co-fire natural gas. EPA Rule 111 also establishes GHG emissions reduction standards for new natural gas-fired EGUs, subject to carve-outs for smaller peaking units that fill gaps that cannot be met with renewables or storage. The EPA did not finalize emission guidelines for GHG emissions from existing fossil fuel-fired stationary combustion turbines and intends to address these in a future rulemaking. Duke Energy is analyzing the potential impacts the rule could have on the Company, which could be material and may influence the timing, nature, and magnitude of future generation investments in our service territories. Duke Energy is participating in legal challenges to EPA Rule 111 as a member of Electric Generators for a Sensible Transition, a coalition of similarly affected utilities, and as a member of a utility trade group. The litigation is currently pending in the United States Court of Appeals for the D.C. Circuit.
Cost recovery for future expenditures is anticipated and will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations.
Generation Mix Planning Process
In August 2023, Duke Energy Carolinas and Duke Energy Progress filed their 2023 systemwide Carolinas Resource Plan (the Plan) with the NCUC and PSCSC. The Plan provided a range of generation options, including three core portfolios, reflecting an “all of the above” approach to powering the energy needs of our growing region. In the Plan, Duke Energy Carolinas and Duke Energy Progress recommended Portfolio 3 as the most prudent path forward to comply with applicable state laws, providing a reliable and orderly energy transition that was proposed as the most reasonable, executable, and lowest-cost plan for the Carolinas. Portfolio 3 proposes a diverse and reliable set of generation and energy storage solutions and shrinks the challenges of growth and the transition from coal by expanding industry-leading energy efficiency and demand response options, laying out a path to reliably exit coal by 2035. Portfolio 3 also makes the most of existing system resources by extending the lives of Duke Energy’s nuclear plants and extending the license and doubling the peak hourly capacity of the Bad Creek pumped-hydro storage facility. Near-term actions consistent with Portfolio 3 were also proposed that will be executed between now and the end of 2026 to advance the orderly energy transition.
In November 2023, Duke Energy Carolinas and Duke Energy Progress provided notice to the NCUC and PSCSC of a substantially increased load forecast resulting from increased economic development in the Carolinas occurring since the systemwide Plan was prepared. The companies filed supplemental modeling and analysis with the NCUC and PSCSC in January 2024, demonstrating the need for additional resources beyond the set of resources identified by the companies in their initial plan.
In July 2024, Duke Energy Carolinas and Duke Energy Progress reached a broad settlement with the Public Staff of the NCUC, Walmart, and the Carolinas Clean Energy Business Association on the Plan, agreeing it is reasonable to use Portfolio 3 as the reference portfolio for planning purposes. Among other things, the settlement confirms a set of near-term activities, including development and procurement activities for solar, battery storage, onshore wind, and certain natural gas generation assets, as well as certain limited actions exploring initial development activities related to advanced nuclear, offshore wind, and to advance the potential for 1,834 MW of pumped storage hydro at the Bad Creek II facility by 2034. The NCUC conducted evidentiary hearings in July and August 2024 and issued an order accepting the settlement and providing further direction in November 2024. The order continues to emphasize the critical importance of reliability and maintaining affordability, while taking balanced actions to meet forecasted load growth.
The PSCSC held its hearings in September 2024 and in November 2024 voted to approve the Plan and directed Duke Energy Carolinas and Duke Energy Progress to work with the South Carolina Office of Regulatory Staff to provide alternative modeling around EPA Rule 111 compliance in a subsequent Carolinas Resource Plan filing.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For an in-depth discussion of the Duke Energy Registrants' market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7 of Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified by the SEC rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated the effectiveness of their disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2024, and, based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in providing reasonable assurance of compliance.
Changes in Internal Control over Financial Reporting
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2024, and have concluded no change has materially affected, or is reasonably likely to materially affect, internal controls over financial reporting.
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OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Duke Energy Registrants are, from time to time, parties to various lawsuits and regulatory proceedings in the ordinary course of their business. For information regarding legal proceedings, including regulatory and environmental matters, see Note 4, "Regulatory Matters," and Note 5, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements. For additional information, see Item 3, "Legal Proceedings," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I, “Item 1A. Risk Factors” in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, which could materially affect the Duke Energy Registrants’ financial condition or future results. The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.
BUSINESS STRATEGY RISKS
Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy including achieving its carbon emissions reduction goals.
Duke Energy’s results of operations depend, in significant part, on the extent to which it can implement its business strategy successfully. Duke Energy's clean energy transition, which includes achieving net-zero carbon emissions from electricity generation by 2050, modernizing the regulatory construct, transforming the customer experience, and digital transformation, is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those goals difficult to achieve.
Federal or state policies could be enacted that restrict the availability of, and increase the costs associated with the use of, fuels or generation technologies, such as natural gas or nuclear power, that enable Duke Energy to reduce its carbon emissions. For example, new EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact our carbon-reduction targets, and operational timeline and costs associated with certain new and existing generation. Supportive policies may be needed to facilitate the siting and cost recovery of transmission and distribution upgrades needed to accommodate the build out of large volumes of renewables and energy storage. Further, the approval of our state regulators will be necessary for the Company to continue to retire existing carbon emitting assets or make investments in new generating capacity. The Company may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time. In addition, new technologies that are not yet commercially available or are unproven at utility-scale will likely be needed, including carbon capture and sequestration and supporting infrastructure as well as new resources capable of following electric load over long durations such as advanced nuclear, hydrogen and long-duration storage. If these technologies are not developed or are not available at reasonable prices, or if we invest in early stage technologies that are then supplanted by technological breakthroughs, Duke Energy’s ability to achieve a net-zero target by 2050 at a cost-effective price could be at risk.
Achieving our carbon reduction goals will require continued operation of our existing carbon-free technologies including nuclear and renewables. The rapid transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge our ability to meet customer expectations of reliability and affordability in a carbon constrained environment, particularly as demand increases. Our nuclear fleet is central to our ability to meet these objectives and customer expectations. We are continuing to seek to renew the operating licenses of the 11 reactors we operate at six nuclear stations for an additional 20 years, extending their operating lives to and beyond midcentury. Failure to receive approval from the NRC for the relicensing of any of these reactors could affect our ability to achieve a net-zero target by 2050.
As a consequence, Duke Energy may not be able to fully implement or realize the anticipated results of its energy transition strategy, which may have an adverse effect on its financial condition.
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OTHER INFORMATION
REGULATORY, LEGISLATIVE AND LEGAL RISKS
The Duke Energy Registrants are subject to numerous environmental laws and regulations requiring significant capital expenditures that can increase the cost of operations, and which may impact or limit business plans, or cause exposure to environmental liabilities.
The Duke Energy Registrants are subject to numerous environmental laws and regulations affecting many aspects of their present and future operations, including CCRs, air emissions, water quality, wastewater discharges, solid waste and hazardous waste. For example, the new EPA rules issued in April 2024, among other things, impose stringent GHG emissions limitations on existing coal plants and new natural gas plants and more stringent air toxic limits on existing coal plants, increase limitations on wastewater discharge, and impose groundwater monitoring and corrective action requirements on previously unregulated coal ash sources at regulated facilities (CCR Management Units) and inactive surface impoundments at retired generating facilities (Legacy CCR Surface Impoundments). Potential legal challenges to such rules may not be successful, and adherence to these rules may increase the cost of compliance, impact generation resource mix and carbon-reduction targets, and negatively impact customer reliability and affordability due to such rules' imposition of stringent GHG emissions limitations and reliance on carbon capture technologies that are not yet adequately demonstrated at utility-scale. These and other environmental laws and regulations can result in increased capital, operating and other costs. These laws and regulations generally require the Duke Energy Registrants to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals. Compliance with environmental laws and regulations can require significant expenditures, including expenditures for cleanup costs and damages arising from contaminated properties. Failure to comply with environmental regulations may result in the imposition of fines, penalties and injunctive measures affecting operating assets, as well as reputational damage. The steps the Duke Energy Registrants could be required to take to ensure their facilities are in compliance could be prohibitively expensive. As a result, the Duke Energy Registrants may be required to shut down or alter the operation of their facilities, which may cause the Duke Energy Registrants to incur losses. Further, the Duke Energy Registrants may not be successful in recovering capital and operating costs incurred to comply with new environmental regulations through existing regulatory rate structures and their contracts with customers. Also, the Duke Energy Registrants may not be able to obtain or maintain from time to time all required environmental regulatory approvals for their operating assets or development projects. Delays in obtaining any required environmental regulatory approvals, failure to obtain and comply with them or changes in environmental laws or regulations to more stringent compliance levels could, and are likely to, result in additional costs of operation for existing facilities or development of new facilities being prevented, delayed or subject to additional costs. The costs to comply with environmental laws and regulations could have a material effect on the Duke Energy Registrants’ results of operations, financial position or cash flows.
The EPA has issued or proposed federal regulations, including the new rules issued in April 2024, governing the management of cooling water intake structures, wastewater, CCR management units, air toxics emissions, and CO2 emissions. New state legislation in response to such regulations could impose carbon reduction goals that are more aggressive than the Company's plans. These regulations may require the Duke Energy Registrants to make additional capital expenditures and increase operating and maintenance costs.
OPERATIONAL RISKS
The reputation and financial condition of the Duke Energy Registrants could be negatively impacted due to their obligations to comply with federal and state regulations, laws, and other legal requirements that govern the operations, assessments, storage, closure, remediation, disposal and monitoring relating to CCR, the high costs and new rate impacts associated with implementing these new CCR-related requirements and the strategies and methods necessary to implement these requirements in compliance with these legal obligations.
As a result of electricity produced for decades at coal-fired power plants, the Duke Energy Registrants manage large amounts of CCR that are primarily stored in dry storage within landfills or combined with water in surface impoundments, all in compliance with applicable regulatory requirements. A CCR-related operational incident could have a material adverse impact on the reputation and results of operations, financial position and cash flows of the Duke Energy Registrants.
During 2015, EPA regulations were enacted related to the management of CCR from power plants. These regulations classify CCR as nonhazardous waste under the RCRA and apply to electric generating sites with new and existing landfills and, new and existing surface impoundments, and establish requirements regarding landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring, protection and remedial procedures and other operational and reporting procedures for the disposal and management of CCR. In addition to the federal regulations, CCR landfills and surface impoundments will continue to be regulated by existing state laws, regulations and permits, as well as additional legal requirements that may be imposed in the future, such as the settlement reached with the NCDEQ to excavate seven of the nine remaining coal ash basins in North Carolina, and partially excavate the remaining two, and the EPA's January 11, 2022, issuance of a letter interpreting the CCR Rule, including its applicability and closure provisions. Most recently, in April 2024, the EPA issued its final Legacy Surface Impoundment Rule, which significantly expands the scope of the 2015 CCR Rule to apply to legacy CCR surface impoundments (inactive impoundments at retired facilities) and CCR management units (previously unregulated coal ash sources at regulated facilities). These federal and state laws, regulations and other legal requirements may require or result in additional expenditures, including increased operating and maintenance costs, which could affect the results of operations, financial position and cash flows of the Duke Energy Registrants. The Duke Energy Registrants will continue to seek full cost recovery for expenditures through the normal ratemaking process with state and federal utility commissions, who permit recovery in rates of reasonable and prudently incurred costs associated with the Duke Energy Registrants’ regulated operations, and through other wholesale contracts with terms that contemplate recovery of such costs, although there is no guarantee of full cost recovery. In addition, the timing for and amount of recovery of such costs could have a material adverse impact on Duke Energy's cash flows.
The Duke Energy Registrants have recognized significant AROs related to these CCR-related requirements. Closure activities began in 2015 at the four sites specified as high priority by the Coal Ash Act and at the W.S. Lee Steam Station site in South Carolina in connection with other legal requirements. Excavation at these sites involves movement of CCR materials to off-site locations for use as structural fill, to appropriately engineered off-site or on-site lined landfills or conversion of the ash for beneficial use. Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites. At other sites, planning and closure methods have been studied and factored into the estimated retirement and management costs, and closure activities have commenced. As the closure and CCR management work progresses and final closure plans and corrective action measures are developed and approved at each site, the scope and complexity of work and the amount of CCR material could be greater than estimates and could, therefore, materially increase compliance expenditures and rate impacts.
114
OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 5. OTHER INFORMATION
Director and Officer Trading Arrangements
During the three months ended September 30, 2024, no director or officer of the Company adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.
115
EXHIBITS
ITEM 6. EXHIBITS
Exhibits filed herein are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Items constituting management contracts or compensatory plans or arrangements are designated by a double asterisk (**). The Company agrees to furnish upon request to the commission a copy of any omitted schedules or exhibits upon request on all items designated by a triple asterisk (***).
XBRL Instance Document (this does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
X
X
X
X
X
X
X
X
117
EXHIBITS
*101.SCH
XBRL Taxonomy Extension Schema Document.
X
X
X
X
X
X
X
X
*101.CAL
XBRL Taxonomy Calculation Linkbase Document.
X
X
X
X
X
X
X
X
*101.LAB
XBRL Taxonomy Label Linkbase Document.
X
X
X
X
X
X
X
X
*101.PRE
XBRL Taxonomy Presentation Linkbase Document.
X
X
X
X
X
X
X
X
*101.DEF
XBRL Taxonomy Definition Linkbase Document.
X
X
X
X
X
X
X
X
*104
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).
X
X
X
X
X
X
X
X
The total amount of securities of the registrant or its subsidiaries authorized under any instrument with respect to long-term debt not filed as an exhibit does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The registrant agrees, upon request of the SEC, to furnish copies of any or all of such instruments to it.
118
SIGNATURES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
DUKE ENERGY CORPORATION
DUKE ENERGY CAROLINAS, LLC
PROGRESS ENERGY, INC.
DUKE ENERGY PROGRESS, LLC
DUKE ENERGY FLORIDA, LLC
DUKE ENERGY OHIO, INC.
DUKE ENERGY INDIANA, LLC
PIEDMONT NATURAL GAS COMPANY, INC.
Date:
November 7, 2024
/s/ BRIAN D. SAVOY
Brian D. Savoy Executive Vice President and Chief Financial Officer (Principal Financial Officer)
