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As Of Filer Filing For·On·As Docs:Size 11/08/19 Duke Energy Corp 10-Q 9/30/19 149:49M Duke Energy Ohio, Inc. Duke Energy Florida, LLC. Duke Energy Progress, LLC. Duke Energy Indiana, LLC Duke Energy Carolinas, LLC Piedmont Natural Gas Co Inc Progress Energy Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 6.40M 2: EX-31.1.1 Certification of Chief Executive Officer HTML 45K 3: EX-31.1.2 Certification of Chief Executive Officer HTML 45K 4: EX-31.1.3 Certification of Chief Executive Officer HTML 45K 5: EX-31.1.4 Certification of Chief Executive Officer HTML 45K 6: EX-31.1.5 Certification of Chief Executive Officer HTML 45K 7: EX-31.1.6 Certification of Chief Executive Officer HTML 45K 8: EX-31.1.7 Certification of Chief Executive Officer HTML 45K 9: EX-31.1.8 Certification of Chief Executive Officer HTML 45K 10: EX-31.2.1 Certification of Chief Financial Officer HTML 45K 11: EX-31.2.2 Certification of Chief Financial Officer HTML 45K 12: EX-31.2.3 Certification of Chief Financial Officer HTML 45K 13: EX-31.2.4 Certification of Chief Financial Officer HTML 45K 14: EX-31.2.5 Certification of Chief Financial Officer HTML 45K 15: EX-31.2.6 Certification of Chief Financial Officer HTML 45K 16: EX-31.2.7 Certification of Chief Financial Officer HTML 45K 17: EX-31.2.8 Certification of Chief Financial Officer HTML 45K 18: EX-32.1.1 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 19: EX-32.1.2 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 20: EX-32.1.3 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 21: EX-32.1.4 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 22: EX-32.1.5 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 23: EX-32.1.6 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 24: EX-32.1.7 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 25: EX-32.1.8 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 26: EX-32.2.1 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 27: EX-32.2.2 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 28: EX-32.2.3 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 29: EX-32.2.4 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 30: EX-32.2.5 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 31: EX-32.2.6 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 32: EX-32.2.7 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 33: EX-32.2.8 Certification Pursuant to 18 U.S.C. Section 1350 HTML 41K 66: R1 Cover Page HTML 156K 105: R2 Condensed Consolidated Statements of Operations HTML 259K and Comprehensive Income 147: R3 Condensed Consolidated Statements of Comprehensive HTML 76K Income 79: R4 Condensed Consolidated Balance Sheets HTML 323K 65: R5 Condensed Consolidated Balance Sheets HTML 120K (Parenthetical) 103: R6 Condensed Consolidated Statements of Cash Flows HTML 306K 146: R7 Condensed Consolidated Statements of Changes in HTML 283K Equity 81: R8 Condensed Consolidated Statements of Changes in HTML 44K Equity (Parenthetical) 61: R9 Organization and Basis of Presentation HTML 251K 58: R10 Business Segments HTML 347K 77: R11 Regulatory Matters HTML 218K 148: R12 Commitments and Contingencies HTML 168K 110: R13 Leases HTML 1.24M 59: R14 Debt and Credit Facilities HTML 245K 78: R15 Asset Retirement Obligations HTML 155K 149: R16 Goodwill HTML 62K 111: R17 Related Party Transactions HTML 167K 60: R18 Derivatives and Hedging HTML 831K 76: R19 Investments in Debt and Equity Securities HTML 566K 123: R20 Fair Value Measurements HTML 399K 112: R21 Variable Interest Entities HTML 284K 40: R22 Revenue HTML 507K 85: R23 Stockholders' Equity HTML 98K 124: R24 Employee Benefit Plans HTML 282K 113: R25 Income Taxes HTML 74K 41: R26 Subsequent Events HTML 41K 86: R27 Organization and Basis of Presentation (Policy) HTML 93K 122: R28 Organization and Basis of Presentation (Tables) HTML 165K 114: R29 Business Segments (Tables) HTML 345K 109: R30 Regulatory Matters (Tables) HTML 58K 144: R31 Commitments and Contingencies (Table) HTML 146K 83: R32 Leases (Tables) HTML 653K 64: R33 Debt and Credit Facilities (Tables) HTML 249K 107: R34 Asset Retirement Obligations (Tables) HTML 157K 141: R35 Goodwill (Tables) HTML 59K 80: R36 Related Party Transactions (Tables) HTML 165K 62: R37 Derivatives and Hedging (Tables) HTML 1.06M 104: R38 Investments in Debt and Equity Securities (Tables) HTML 964K 145: R39 Fair Value Measurements (Tables) HTML 413K 121: R40 Variable Interest Entities (Tables) HTML 283K 130: R41 Revenue (Tables) HTML 506K 88: R42 Stockholders' Equity (Tables) HTML 78K 43: R43 Employee Benefit Plans (Tables) HTML 279K 120: R44 Income Taxes (Tables) HTML 68K 129: R45 Organization and Basis of Presentation (Narrative) HTML 56K (Details) 87: R46 Organization and Basis of Presentation (Schedule HTML 65K of Cash and Cash Equivalents) (Details) 42: R47 Organization and Basis of Presentation (Schedule HTML 83K of Inventory) (Details) 119: R48 Business Segments (Narrative) (Details) HTML 81K 131: R49 Business Segments (Business Segment Data) HTML 124K (Details) 138: R50 Regulatory Matters (Narrative) (Details) HTML 1.03M 99: R51 Regulatory Matters (Schedule of Net Carrying Value HTML 60K Of Facilities and Megawatt Capacity) (Details) 50: R52 Commitments and Contingencies (Narrative) HTML 95K (Details) 67: R53 Commitments and Contingencies (Schedule of HTML 75K Environmental Loss Contingencies) (Details) 139: R54 Commitments and Contingencies (Schedule of Legal HTML 52K Reserves) (Details) 100: R55 Leases (Operating Lease Right-of-use Assets and HTML 65K Liabilities) (Details) 51: R56 Leases (Lease Costs) (Details) HTML 106K 68: R57 Leases (Rent Expense) (Details) HTML 55K 137: R58 Leases (Operating Lease Maturities) (Details) HTML 136K 102: R59 Leases (Finance Lease Maturities) (Details) HTML 127K 45: R60 Leases (Supplemental Financial Information) HTML 147K (Details) 92: R61 Leases (Narrative) (Details) HTML 48K 126: R62 Debt and Credit Facilities (Narrative) (Details) HTML 66K 116: R63 Debt and Credit Facilities (Summary of Debt HTML 123K Issuances) (Details) 46: R64 Debt and Credit Facilities (Summary of Current HTML 86K Maturities of Long-term Debt) (Details) 93: R65 Debt and Credit Facilities (Schedule of Line of HTML 78K Credit Facilities) (Details) 127: R66 Debt and Credit Facilities (Schedule of Other HTML 58K Credit Facilities) (Details) 117: R67 Asset Retirement Obligations (ARO by Category) HTML 90K (Details) 49: R68 Asset Retirement Obligations (ARO Rollforward) HTML 72K (Details) 90: R69 Asset Retirement Obligations (NDTF Information) HTML 48K (Details) 72: R70 Goodwill (Rollforward of Goodwill) (Details) HTML 55K 56: R71 Goodwill (Narrative) (Details) HTML 58K 97: R72 Related Party Transactions (Other Revenue and HTML 91K Expense) (Details) 135: R73 Related Party Transactions (Intercompany Income HTML 62K Taxes) (Details) 71: R74 Derivatives and Hedging (Notional Amounts of HTML 86K Derivative Instruments) (Details) 55: R75 Derivatives and Hedging (Location and Fair Value HTML 177K Amounts of Derivatives Reflected in the Condensed Consolidated Balance Sheets) (Details) 96: R76 Derivatives and Hedging (Schedule of Offsetting HTML 86K Assets) (Details) 134: R77 Derivatives and Hedging (Schedule of Offsetting HTML 89K Liabilities) (Details) 74: R78 Derivatives and Hedging (Derivative Instruments HTML 53K with Credit-Risk Related Contingent Features and Cash Collateral) (Details) 52: R79 Derivatives and Hedging (Narrative) (Details) HTML 45K 73: R80 Investments in Debt and Equity Securities (All HTML 105K Debt and Equity Securities Through OCI and FV-NI - ASU 2016-01) (Details) 57: R81 Investments in Debt and Equity Securities (Equity HTML 83K Securities, FV-NI - ASU 2016-01) (Details) 98: R82 Investments in Debt Securities and Equity HTML 159K Securities (Available-for-sale, OCI - ASU 2016-01) (Details) 136: R83 Investments in Debt and Equity Securities HTML 206K (Available-For-Sale Investments) (Details) 69: R84 Investments in Debt and Equity Securities HTML 73K (Maturities) (Details) 54: R85 Fair Value Measurements (Fair Value Measurement HTML 154K Amounts for Assets and Liabilities) (Details) 95: R86 Fair Value Measurements (Reconciliation of Assets HTML 71K and Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs) (Details) 133: R87 Fair Value Measurements (Quantitative Level 3 Fair HTML 74K Value Disclosures) (Details) 75: R88 Fair Value Measurements (Other Fair Value HTML 69K Disclosure) (Details) 53: R89 Variable Interest Entities (Narrative) (Details) HTML 73K 44: R90 Variable Interest Entities (Schedule of Accounts HTML 68K Receivable Securitizations) (Details) 91: R91 Variable Interest Entities (Schedule of HTML 105K Consolidated VIEs) (Details) 125: R92 Variable Interest Entities (Schedule of HTML 88K Non-Consolidated VIEs) (Details) 115: R93 Variable Interest Entities (Pipeline Investments) HTML 56K (Details) 47: R94 Variable Interest Entities (Receivables Sold) HTML 54K (Details) 94: R95 Variable Interest Entities (Sales and Cash Flows) HTML 60K (Details) 128: R96 Revenue (Remaining Performance Obligations) HTML 103K (Details) 118: R97 Revenue (Disaggregation of Revenue) (Details) HTML 168K 48: R98 Revenue (Unbilled Revenues) (Details) HTML 59K 89: R99 Stockholders' Equity (Earnings Per Share Data) HTML 75K (Details) 106: R100 Stockholders' Equity (Equity Securities Offering) HTML 80K (Details) 140: R101 Stockholders' Equity (Preferred Stock) (Details) HTML 78K 82: R102 Employee Benefit Plans (Narrative) (Details) HTML 67K 63: R103 Employee Benefit Plans (Components of Net Periodic HTML 90K Pension Costs) (Details) 108: R104 Employee Benefit Plans - Summary of Contributions HTML 57K (Details) 143: R105 Income Taxes (Effective Tax Rates) (Details) HTML 60K 84: R106 Income Taxes (Narrative) (Details) HTML 44K 70: XML IDEA XML File -- Filing Summary XML 251K 132: XML XBRL Instance -- duk-20190930x10q_htm XML 18.23M 142: EXCEL IDEA Workbook of Financial Reports XLSX 230K 35: EX-101.CAL XBRL Calculations -- duk-20190930_cal XML 393K 36: EX-101.DEF XBRL Definitions -- duk-20190930_def XML 2.41M 37: EX-101.LAB XBRL Labels -- duk-20190930_lab XML 3.05M 38: EX-101.PRE XBRL Presentations -- duk-20190930_pre XML 2.56M 34: EX-101.SCH XBRL Schema -- duk-20190930 XSD 335K 101: JSON XBRL Instance as JSON Data -- MetaLinks 620± 977K 39: ZIP XBRL Zipped Folder -- 0001326160-19-000229-xbrl Zip 1.07M
Document |
i ☒ | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices and Telephone Number | IRS Employer Identification Number | |
i 1-32853 | i DUKE
ENERGY CORPORATION | i 20-2777218 |
i 1-4928 | i DUKE
ENERGY CAROLINAS, LLC | i 56-0205520 |
i 1-15929 | i PROGRESS
ENERGY, INC. | i 56-2155481 |
i 1-3382 | i DUKE
ENERGY PROGRESS, LLC | i 56-0165465 |
i 1-3274 | i DUKE
ENERGY FLORIDA, LLC | i 59-0247770 |
i 1-1232 | i DUKE
ENERGY OHIO, INC. | i 31-0240030 |
i 1-3543 | i DUKE
ENERGY INDIANA, LLC | i 35-0594457 |
i 1-6196 | i PIEDMONT
NATURAL GAS COMPANY, INC. | i 56-0556998 |
Registrant | Title
of each class Trading symbols which registered |
Duke Energy | i Common Stock, $0.001 par value i DUK i New
York Stock Exchange LLC |
Duke Energy | i 5.125% Junior Subordinated Debentures due i DUKH i New
York Stock Exchange LLC |
Duke Energy | i 5.625% Junior Subordinated Debentures due i DUKB i New
York Stock Exchange LLC |
Duke Energy | i Depositary Shares, each representing a 1/1,000th i DUK
PR A i New York Stock Exchange LLC |
Duke Energy Corporation (Duke Energy) | i Yes | ☒ | No | ☐ | Duke
Energy Florida, LLC (Duke Energy Florida) | i Yes | ☒ | No | ☐ | |
Duke Energy Carolinas, LLC (Duke Energy Carolinas) | i Yes | ☒ | No | ☐ | Duke
Energy Ohio, Inc. (Duke Energy Ohio) | i Yes | ☒ | No | ☐ | |
Progress Energy, Inc. (Progress Energy) | i Yes | ☒ | No | ☐ | Duke
Energy Indiana, LLC (Duke Energy Indiana) | i Yes | ☒ | No | ☐ | |
Duke Energy Progress, LLC (Duke Energy Progress) | i Yes | ☒ | No | ☐ | Piedmont
Natural Gas Company, Inc. (Piedmont) | i Yes | ☒ | No | ☐ |
Duke Energy | i Yes | ☒ | No | ☐ | Duke
Energy Florida | i Yes | ☒ | No | ☐ | |
Duke Energy Carolinas | i Yes | ☒ | No | ☐ | Duke
Energy Ohio | i Yes | ☒ | No | ☐ | |
Progress Energy | i Yes | ☒ | No | ☐ | Duke
Energy Indiana | i Yes | ☒ | No | ☐ | |
Duke Energy Progress | i Yes | ☒ | No | ☐ | Piedmont | i Yes | ☒ | No | ☐ |
Duke Energy | i Large
accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Duke
Energy Carolinas | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated filer | ☒ | Smaller reporting company | i ☐ | Emerging
growth company | i ☐ |
Progress Energy | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated
filer | ☒ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Duke
Energy Progress | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated filer | ☒ | Smaller reporting company | i ☐ | Emerging
growth company | i ☐ |
Duke Energy Florida | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated
filer | ☒ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Duke
Energy Ohio | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated filer | ☒ | Smaller reporting company | i ☐ | Emerging
growth company | i ☐ |
Duke Energy Indiana | Large accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated
filer | ☒ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Piedmont | Large
accelerated filer | ☐ | Accelerated filer | ☐ | i Non-accelerated filer | ☒ | Smaller reporting company | i ☐ | Emerging
growth company | i ☐ |
Duke
Energy | Yes | i ☐ | No | ☒ | Duke Energy Florida | Yes | i ☐ | No | ☒ | |
Duke
Energy Carolinas | Yes | i ☐ | No | ☒ | Duke Energy Ohio | Yes | i ☐ | No | ☒ | |
Progress
Energy | Yes | i ☐ | No | ☒ | Duke Energy Indiana | Yes | i ☐ | No | ☒ | |
Duke
Energy Progress | Yes | i ☐ | No | ☒ | Piedmont | Yes | i ☐ | No | ☒ |
Registrant | Description | Shares |
Duke Energy | Common stock, $0.001 par value | i 729,032,868 |
PART I. FINANCIAL INFORMATION | ||
Piedmont
Natural Gas Company, Inc. Financial Statements | ||
Note 1 – Organization and Basis of Presentation | ||
Note
2 – Business Segments | ||
Note 3 – Regulatory Matters | ||
Note 4 – Commitments and Contingencies | ||
Note 5 – Leases | ||
Note
6 – Debt and Credit Facilities | ||
Note 7 – Asset Retirement Obligations | ||
Note 8 – Goodwill | ||
Note 9 – Related Party Transactions | ||
Note
10 – Derivatives and Hedging | ||
Note 11 – Investments in Debt and Equity Securities | ||
Note 12 – Fair Value Measurements | ||
Note 13 – Variable Interest Entities | ||
Note
14 – Revenue | ||
Note 15 – Stockholders' Equity | ||
Note 16 – Employee Benefit Plans | ||
Note 17 – Income Taxes | ||
Note
18 – Subsequent Events | ||
PART
II. OTHER INFORMATION | ||
FORWARD-LOOKING
STATEMENTS |
• | State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; |
• | The
extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate; |
• | The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process; |
• | The
costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; |
• | Costs and effects of legal and administrative proceedings, settlements, investigations and claims; |
• | Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in
customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies; |
• | Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs; |
• | Advancements
in technology; |
• | Additional competition in electric and natural gas markets and continued industry consolidation; |
• | The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change; |
• | The
ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; |
• | The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business; |
• | Operational interruptions to our natural gas distribution and transmission activities; |
• | The
availability of adequate interstate pipeline transportation capacity and natural gas supply; |
• | The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences; |
• | The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including
the financial stability of third-party service providers; |
• | The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; |
• | The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and
conditions and general market and economic conditions; |
• | Credit ratings of the Duke Energy Registrants may be different from what is expected; |
• | Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds; |
• | Construction
and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all; |
• | Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; |
• | The
ability to control operation and maintenance costs; |
• | The level of creditworthiness of counterparties to transactions; |
• | Employee workforce factors, including the potential inability to attract and retain key personnel; |
• | The ability of subsidiaries to pay dividends or distributions to Duke Energy
Corporation holding company (the Parent); |
FORWARD-LOOKING STATEMENTS |
• | The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; |
• | The
effect of accounting pronouncements issued periodically by accounting standard-setting bodies; |
• | The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings; |
• | The impacts from potential impairments of goodwill or equity method investment carrying values; and |
• | The
ability to implement our business strategy, including enhancing existing technology systems. |
GLOSSARY
OF TERMS |
Term or Acronym | Definition |
2013 Settlement | Revised and
Restated Stipulation and Settlement Agreement approved in November 2013 among Duke Energy Florida, the Florida OPC and other customer representatives |
2017 Settlement | Second Revised and Restated Settlement Agreement in 2017 among Duke Energy Florida, the Florida OPC and other customer representatives, which replaces and supplants the 2013 Settlement |
ACP | Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy,
Inc., Duke Energy and Southern Company Gas |
ACP pipeline | The approximately 600-mile proposed interstate natural gas pipeline |
AFS | Available for Sale |
AFUDC | Allowance for
funds used during construction |
the Agents | Wells Fargo Securities, LLC, Citigroup Global Market Inc., J.P. Morgan Securities, LLC |
ALJ | Administrative Law Judge |
AMI | Advanced
Metering Infrastructure |
AMT | Alternative Minimum Tax |
AOCI | Accumulated Other Comprehensive Income (Loss) |
ARO | Asset retirement obligations |
ATM | At-the-market |
Beckjord | Beckjord
Generating Station |
Belews Creek | Belews Creek Steam Station |
Bison | Bison Insurance Company Limited |
Cardinal | Cardinal Pipeline Company, LLC |
CECL | Current
expected credit loss |
CC | Combined Cycle |
CCR | Coal Combustion Residuals |
Citrus County CC | Citrus County Combined Cycle Facility |
Coal
Ash Act | North Carolina Coal Ash Management Act of 2014 |
the Company | Duke Energy Corporation and its subsidiaries |
Constitution | Constitution Pipeline Company, LLC |
CPCN | Certificate
of Public Convenience and Necessity |
CPRE | Competitive Procurement of Renewable Energy |
CRC | Cinergy Receivables Company, LLC |
Crystal River Unit 3 | Crystal River Unit 3 Nuclear
Plant |
CWA | Clean Water Act |
D.C. Circuit Court | U.S. Court of Appeals for the District of Columbia Circuit |
DEFPF | Duke Energy Florida Project Finance, LLC |
DEFR | Duke
Energy Florida Receivables, LLC |
DEPR | Duke Energy Progress Receivables, LLC |
DERF | Duke Energy Receivables Finance Company, LLC |
DRIP | Dividend Reinvestment Program |
Duke
Energy | Duke Energy Corporation (collectively with its subsidiaries) |
Duke Energy Ohio | Duke Energy Ohio, Inc. |
GLOSSARY OF TERMS |
Duke
Energy Progress | Duke Energy Progress, LLC |
Duke Energy Carolinas | Duke Energy Carolinas, LLC |
Duke Energy Florida | Duke Energy Florida, LLC |
Duke Energy Indiana | Duke
Energy Indiana, LLC |
Duke Energy Kentucky | Duke Energy Kentucky, Inc. |
Duke Energy Registrants | Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont |
EDA | Equity
Distribution Agreement |
EDIT | Excess deferred income tax |
EPA | U.S. Environmental Protection Agency |
EPC | Engineering, Procurement and Construction agreement |
EPS | Earnings
Per Share |
ESP | Electric Security Plan |
ETR | Effective tax rate |
Exchange Act | Securities Exchange Act of 1934 |
FASB | Financial
Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
FES | FirstEnergy Solutions Corp. |
Fitch | Fitch Ratings, Inc. |
Fluor | Fluor
Enterprises, Inc. |
FPSC | Florida Public Service Commission |
FTR | Financial transmission rights |
FV-NI | Fair value through net income |
GAAP | Generally
accepted accounting principles in the U.S. |
GAAP Reported Earnings | Net Income Attributable to Duke Energy Corporation |
GAAP Reported EPS | Diluted EPS Attributable to Duke Energy Corporation common stockholders |
GWh | Gigawatt-hours |
Hardy
Storage | Hardy Storage Company, LLC |
HLBV | Hypothetical Liquidation at Book Value |
ICPA | Inter-Company Power Agreement |
IGCC | Integrated
Gasification Combined Cycle |
IMR | Integrity Management Rider |
IRP | Integrated Resource Plan |
IRS | Internal Revenue Service |
Investment
Trusts | NDTF investments and grantor trusts of Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana |
IURC | Indiana Utility Regulatory Commission |
JDA | Joint Dispatch Agreement |
KPSC | Kentucky
Public Service Commission |
Lee Nuclear Station | William States Lee III Nuclear Station |
MGP | Manufactured gas plant |
MISO | Midcontinent Independent System Operator, Inc. |
MMBtu | Million
British Thermal Unit |
GLOSSARY OF TERMS |
Moody's | Moody's Investors
Service, Inc. |
MW | Megawatt |
MWh | Megawatt-hour |
NAV | Net asset value |
NCDEQ | North
Carolina Department of Environmental Quality |
NCUC | North Carolina Utilities Commission |
NDTF | Nuclear decommissioning trust funds |
NMC | National Methanol Company |
NPDES | National
Pollutant Discharge Elimination System |
NPNS | Normal purchase/normal sale |
NRC | U.S. Nuclear Regulatory Commission |
OPEB | Other Post-Retirement Benefit Obligations |
ORS | South
Carolina Office of Regulatory Staff |
OTTI | Other-than-temporary impairment |
OVEC | Ohio Valley Electric Corporation |
Piedmont | Piedmont Natural Gas Company, Inc. |
Piedmont
Term Loan | Term loan facility with commitments totaling $350M entered in June 2017 |
Pine Needle | Pine Needle LNG Company, LLC |
Pioneer | Pioneer Transmission, LLC |
PJM | PJM
Interconnection, LLC |
PMPA | Piedmont Municipal Power Agency |
PPA | Purchase Power Agreement |
Progress Energy | Progress Energy, Inc. |
PSCSC | Public
Service Commission of South Carolina |
PUCO | Public Utilities Commission of Ohio |
REC | Renewable Energy Certificate |
ROU assets | Right-of-use assets |
RRBA | Roanoke
River Basin Association |
SELC | Southern Environmental Law Center |
S&P | Standard & Poor's Rating Services |
Subsidiary Registrants | Duke Energy Carolinas, Progress Energy,
Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont |
the Tax Act | Tax Cuts and Jobs Act |
TPUC | Tennessee Public Utility Commission |
U.S. | United
States |
VIE | Variable Interest Entity |
WACC | Weighted Average Cost of Capital |
WNA | Weather normalization adjustment |
W.S.
Lee CC | William States Lee Combined Cycle Facility |
FINANCIAL STATEMENTS |
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions, except per-share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating
Revenues | |||||||||||||||
Regulated electric | $ | i 6,515 | $ | i 6,216 | $ | i 17,223 | $ | i 16,678 | |||||||
Regulated
natural gas | i 223 | i 230 | i 1,231 | i 1,221 | |||||||||||
Nonregulated
electric and other | i 202 | i 182 | i 522 | i 507 | |||||||||||
Total
operating revenues | i 6,940 | i 6,628 | i 18,976 | i 18,406 | |||||||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 1,978 | i 1,931 | i 5,228 | i 5,181 | |||||||||||
Cost
of natural gas | i 48 | i 58 | i 451 | i 460 | |||||||||||
Operation,
maintenance and other | i 1,484 | i 1,584 | i 4,337 | i 4,592 | |||||||||||
Depreciation
and amortization | i 1,186 | i 1,039 | i 3,364 | i 2,979 | |||||||||||
Property
and other taxes | i 335 | i 323 | i 1,012 | i 954 | |||||||||||
Impairment
charges | ( i 20 | ) | i 124 | ( i 16 | ) | i 339 | |||||||||
Total
operating expenses | i 5,011 | i 5,059 | i 14,376 | i 14,505 | |||||||||||
Gains
(Losses) on Sales of Other Assets and Other, net | — | i 10 | — | ( i 87 | ) | ||||||||||
Operating
Income | i 1,929 | i 1,579 | i 4,600 | i 3,814 | |||||||||||
Other
Income and Expenses | |||||||||||||||
Equity in earnings of unconsolidated affiliates | i 50 | i 37 | i 137 | i 49 | |||||||||||
Other
income and expenses, net | i 104 | i 131 | i 308 | i 327 | |||||||||||
Total
other income and expenses | i 154 | i 168 | i 445 | i 376 | |||||||||||
Interest
Expense | i 572 | i 517 | i 1,657 | i 1,550 | |||||||||||
Income
From Continuing Operations Before Income Taxes | i 1,511 | i 1,230 | i 3,388 | i 2,640 | |||||||||||
Income
Tax Expense From Continuing Operations | i 188 | i 168 | i 424 | i 449 | |||||||||||
Income
From Continuing Operations | i 1,323 | i 1,062 | i 2,964 | i 2,191 | |||||||||||
Income
(Loss) From Discontinued Operations, net of tax | — | i 4 | — | ( i 1 | ) | ||||||||||
Net
Income | i 1,323 | i 1,066 | i 2,964 | i 2,190 | |||||||||||
Less:
Net Loss Attributable to Noncontrolling Interests | ( i 19 | ) | ( i 16 | ) | ( i 110 | ) | ( i 12 | ) | |||||||
Less:
Preferred Dividends | i 15 | — | i 27 | — | |||||||||||
Net
Income Attributable to Duke Energy Corporation | $ | i 1,327 | $ | i 1,082 | $ | i 3,047 | $ | i 2,202 | |||||||
Earnings
Per Share – Basic and Diluted | |||||||||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.12 | |||||||
Diluted | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.11 | |||||||
Income
(Loss) from discontinued operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic and Diluted | $ | — | $ | — | $ | — | $ | — | |||||||
Net
income attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.12 | |||||||
Diluted | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.11 | |||||||
Weighted
average shares outstanding | |||||||||||||||
Basic | i 729 | i 713 | i 728 | i 705 | |||||||||||
Diluted | i 729 | i 714 | i 728 | i 706 |
FINANCIAL STATEMENTS |
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net
Income | $ | i 1,323 | $ | i 1,066 | $ | i 2,964 | $ | i 2,190 | |||||||
Other
Comprehensive (Loss) Income, net of tax | |||||||||||||||
Pension and OPEB adjustments | ( i 2 | ) | i 1 | i 1 | i 3 | ||||||||||
Net
unrealized (losses) gains on cash flow hedges | ( i 16 | ) | ( i 3 | ) | ( i 62 | ) | i 10 | ||||||||
Reclassification
into earnings from cash flow hedges | i 1 | i 6 | i 4 | i 5 | |||||||||||
Unrealized
gains (losses) on available-for-sale securities | i 2 | — | i 10 | ( i 5 | ) | ||||||||||
Other
Comprehensive (Loss) Income, net of tax | ( i 15 | ) | i 4 | ( i 47 | ) | i 13 | |||||||||
Comprehensive
Income | i 1,308 | i 1,070 | i 2,917 | i 2,203 | |||||||||||
Less:
Comprehensive Loss Attributable to Noncontrolling Interests | ( i 19 | ) | ( i 16 | ) | ( i 110 | ) | ( i 12 | ) | |||||||
Less:
Preferred Dividends | i 15 | — | i 27 | — | |||||||||||
Comprehensive
Income Attributable to Duke Energy Corporation | $ | i 1,312 | $ | i 1,086 | $ | i 3,000 | $ | i 2,215 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 379 | $ | i 442 | |||
Receivables
(net of allowance for doubtful accounts of $20 at 2019 and $16 at 2018) | i 755 | i 962 | |||||
Receivables
of VIEs (net of allowance for doubtful accounts of $53 at 2019 and $55 at 2018) | i 2,322 | i 2,172 | |||||
Inventory | i 3,107 | i 3,084 | |||||
Regulatory
assets (includes $52 at 2019 and 2018 related to VIEs) | i 1,723 | i 2,005 | |||||
Other
(includes $188 at 2019 and $162 at 2018 related to VIEs) | i 1,333 | i 1,049 | |||||
Total
current assets | i 9,619 | i 9,714 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 143,794 | i 134,458 | |||||
Accumulated
depreciation and amortization | ( i 45,149 | ) | ( i 43,126 | ) | |||
Generation
facilities to be retired, net | i 267 | i 362 | |||||
Net
property, plant and equipment | i 98,912 | i 91,694 | |||||
Other
Noncurrent Assets | |||||||
Goodwill | i 19,303 | i 19,303 | |||||
Regulatory
assets (includes $1,002 at 2019 and $1,041 at 2018 related to VIEs) | i 13,916 | i 13,617 | |||||
Nuclear
decommissioning trust funds | i 7,695 | i 6,720 | |||||
Operating
lease right-of-use assets, net | i 1,703 | — | |||||
Investments in equity method unconsolidated affiliates | i 1,864 | i 1,409 | |||||
Other
(includes $63 at 2019 and $261 at 2018 related to VIEs) | i 2,905 | i 2,935 | |||||
Total
other noncurrent assets | i 47,386 | i 43,984 | |||||
Total
Assets | $ | i 155,917 | $ | i 145,392 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 2,946 | $ | i 3,487 | |||
Notes
payable and commercial paper | i 2,469 | i 3,410 | |||||
Taxes
accrued | i 712 | i 577 | |||||
Interest
accrued | i 559 | i 559 | |||||
Current
maturities of long-term debt (includes $231 at 2019 and $227 at 2018 related to VIEs) | i 3,096 | i 3,406 | |||||
Asset
retirement obligations | i 861 | i 919 | |||||
Regulatory
liabilities | i 673 | i 598 | |||||
Other
| i 2,074 | i 2,085 | |||||
Total
current liabilities | i 13,390 | i 15,041 | |||||
Long-Term
Debt (includes $4,060 at 2019 and $3,998 at 2018 related to VIEs) | i 54,818 | i 51,123 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 8,776 | i 7,806 | |||||
Asset
retirement obligations | i 11,740 | i 9,548 | |||||
Regulatory
liabilities | i 15,202 | i 14,834 | |||||
Operating
lease liabilities | i 1,456 | — | |||||
Accrued pension and other post-retirement benefit costs | i 900 | i 988 | |||||
Investment
tax credits | i 579 | i 568 | |||||
Other
(includes $218 at 2019 and $212 at 2018 related to VIEs) | i 1,649 | i 1,650 | |||||
Total
other noncurrent liabilities | i 40,302 | i 35,394 | |||||
Commitments
and Contingencies | i | i | |||||
Equity | |||||||
Preferred
stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2019 | i 973 | — | |||||
Preferred stock,
Series B, $0.001 par value, 1 million shares authorized and outstanding at 2019 | i 990 | — | |||||
Common stock, $0.001 par value, 2
billion shares authorized; 729 million shares outstanding at 2019 and 727 million shares outstanding at 2018 | i 1 | i 1 | |||||
Additional
paid-in capital | i 40,488 | i 40,795 | |||||
Retained
earnings | i 4,139 | i 3,113 | |||||
Accumulated
other comprehensive loss | ( i 153 | ) | ( i 92 | ) | |||
Total
Duke Energy Corporation stockholders' equity | i 46,438 | i 43,817 | |||||
Noncontrolling
interests | i 969 | i 17 | |||||
Total
equity | i 47,407 | i 43,834 | |||||
Total
Liabilities and Equity | $ | i 155,917 | $ | i 145,392 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 2,964 | $ | i 2,190 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | i 3,831 | i 3,447 | |||||
Equity
component of AFUDC | ( i 99 | ) | ( i 175 | ) | |||
Losses
on sales of other assets | — | i 87 | |||||
Impairment charges | ( i 16 | ) | i 339 | ||||
Deferred
income taxes | i 736 | i 1,099 | |||||
Equity
in earnings of unconsolidated affiliates | ( i 137 | ) | ( i 49 | ) | |||
Accrued
pension and other post-retirement benefit costs | i 13 | i 46 | |||||
Contributions
to qualified pension plans | ( i 77 | ) | ( i 141 | ) | |||
Payments
for asset retirement obligations | ( i 582 | ) | ( i 389 | ) | |||
Payment
for disposal of other assets | — | ( i 105 | ) | ||||
Other rate case adjustments | — | i 37 | |||||
Provision
for rate refunds | i 61 | i 375 | |||||
(Increase)
decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | ( i 4 | ) | i 15 | ||||
Receivables | i 62 | ( i 288 | ) | ||||
Inventory | ( i 3 | ) | i 104 | ||||
Other
current assets | ( i 134 | ) | ( i 648 | ) | |||
Increase
(decrease) in | |||||||
Accounts payable | ( i 538 | ) | i 389 | ||||
Taxes
accrued | i 125 | i 122 | |||||
Other
current liabilities | ( i 198 | ) | ( i 180 | ) | |||
Other
assets | ( i 264 | ) | ( i 585 | ) | |||
Other
liabilities | ( i 103 | ) | ( i 23 | ) | |||
Net
cash provided by operating activities | i 5,637 | i 5,667 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 8,084 | ) | ( i 6,752 | ) | |||
Contributions
to equity method investments | ( i 264 | ) | ( i 298 | ) | |||
Purchases
of debt and equity securities | ( i 3,105 | ) | ( i 2,763 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 3,092 | i 2,718 | |||||
Other | ( i 272 | ) | ( i 175 | ) | |||
Net
cash used in investing activities | ( i 8,633 | ) | ( i 7,270 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the: | |||||||
Issuance of long-term debt | i 6,131 | i 4,110 | |||||
Issuance
of preferred stock | i 1,963 | — | |||||
Issuance of common stock | i 41 | i 834 | |||||
Payments
for the redemption of long-term debt | ( i 2,737 | ) | ( i 2,278 | ) | |||
Proceeds
from the issuance of short-term debt with original maturities greater than 90 days | i 339 | i 243 | |||||
Payments
for the redemption of short-term debt with original maturities greater than 90 days | ( i 479 | ) | ( i 207 | ) | |||
Notes
payable and commercial paper | ( i 879 | ) | i 638 | ||||
Contributions
from noncontrolling interests | i 615 | — | |||||
Dividends paid | ( i 1,990 | ) | ( i 1,835 | ) | |||
Other | ( i 17 | ) | i 42 | ||||
Net
cash provided by financing activities | i 2,987 | i 1,547 | |||||
Net
decrease in cash, cash equivalents and restricted cash | ( i 9 | ) | ( i 56 | ) | |||
Cash,
cash equivalents and restricted cash at beginning of period | i 591 | i 505 | |||||
Cash,
cash equivalents and restricted cash at end of period | $ | i 582 | $ | i 449 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 1,073 | $ | i 1,016 | |||
Non-cash
dividends | i 81 | i 79 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive | ||||||||||||||||||||||||||||||||
(Loss)
Income | ||||||||||||||||||||||||||||||||
Net Unrealized | Total | |||||||||||||||||||||||||||||||
Net
Gains | (Losses) Gains | Duke Energy | ||||||||||||||||||||||||||||||
Common | Additional | (Losses)
on | on Available- | Pension and | Corporation | |||||||||||||||||||||||||||
Preferred | Stock | Common | Paid-in | Retained | Cash
Flow | for-Sale- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||
(in millions) | Stock | Shares | Stock | Capital | Earnings | Hedges | Securities | Adjustments | Equity | Interests | Equity | |||||||||||||||||||||
Balance
at June 30, 2018 | $ | — | i 712 | $ | i 1 | $ | i 39,682 | $ | i 2,894 | $ | i 2 | $ | ( i 5 | ) | $ | ( i 67 | ) | $ | i 42,507 | $ | i 8 | $ | i 42,515 | |||||||||
Net
income (loss) | — | — | — | — | i 1,082 | — | — | — | i 1,082 | ( i 16 | ) | i 1,066 | ||||||||||||||||||||
Other
comprehensive income | — | — | — | — | — | i 3 | — | i 1 | i 4 | — | i 4 | |||||||||||||||||||||
Common
stock issuances, including dividend reinvestment and employee benefits | — | i 1 | — | i 65 | — | — | — | — | i 65 | — | i 65 | |||||||||||||||||||||
Common
stock dividends | — | — | — | — | ( i 663 | ) | — | — | — | ( i 663 | ) | — | ( i 663 | ) | ||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | i 26 | i 26 | |||||||||||||||||||||
Balance
at September 30, 2018 | $ | — | i 713 | $ | i 1 | $ | i 39,747 | $ | i 3,313 | $ | i 5 | $ | ( i 5 | ) | $ | ( i 66 | ) | $ | i 42,995 | $ | i 18 | $ | i 43,013 | |||||||||
Balance
at June 30, 2019 | $ | i 973 | i 728 | $ | i 1 | $ | i 40,885 | $ | i 3,502 | $ | ( i 63 | ) | $ | i 4 | $ | ( i 89 | ) | $ | i 45,213 | $ | i 119 | $ | i 45,332 | |||||||||
Net
income (loss) | — | — | — | — | i 1,327 | — | — | — | i 1,327 | ( i 19 | ) | i 1,308 | ||||||||||||||||||||
Other
comprehensive (loss) income | — | — | — | — | — | ( i 15 | ) | i 2 | ( i 2 | ) | ( i 15 | ) | — | ( i 15 | ) | |||||||||||||||||
Preferred
stock, Series B, issuances, net of issuance costs(c) | i 990 | — | — | — | — | — | — | — | i 990 | — | i 990 | |||||||||||||||||||||
Common
stock issuances, including dividend reinvestment and employee benefits | — | i 1 | — | i 69 | — | — | — | — | i 69 | — | i 69 | |||||||||||||||||||||
Common
stock dividends | — | — | — | — | ( i 690 | ) | — | — | — | ( i 690 | ) | — | ( i 690 | ) | ||||||||||||||||||
Sale
of noncontrolling interest(d) | — | — | — | ( i 465 | ) | — | i 10 | — | — | ( i 455 | ) | i 863 | i 408 | |||||||||||||||||||
Contribution
from noncontrolling interest in subsidiaries(e) | — | — | — | — | — | — | — | — | — | i 7 | i 7 | |||||||||||||||||||||
Other | — | — | — | ( i 1 | ) | — | — | — | — | ( i 1 | ) | ( i 1 | ) | ( i 2 | ) | |||||||||||||||||
Balance
at September 30, 2019 | $ | i 1,963 | i 729 | $ | i 1 | $ | i 40,488 | $ | i 4,139 | $ | ( i 68 | ) | $ | i 6 | $ | ( i 91 | ) | $ | i 46,438 | $ | i 969 | $ | i 47,407 |
FINANCIAL STATEMENTS |
Nine
Months Ended September 30, 2018 and 2019 | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive | ||||||||||||||||||||||||||||||||
(Loss)
Income | ||||||||||||||||||||||||||||||||
Net Unrealized | Total | |||||||||||||||||||||||||||||||
Net
Gains | (Losses) Gains | Duke Energy | ||||||||||||||||||||||||||||||
Common | Additional | (Losses)
on | on Available- | Pension and | Corporation | |||||||||||||||||||||||||||
Preferred | Stock | Common | Paid-in | Retained | Cash
Flow | for-Sale- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||
(in millions) | Stock | Shares | Stock | Capital | Earnings | Hedges | Securities | Adjustments | Equity | Interests | Equity | |||||||||||||||||||||
Balance
at December 31, 2017 | $ | — | i 700 | $ | i 1 | $ | i 38,792 | $ | i 3,013 | $ | ( i 10 | ) | $ | i 12 | $ | ( i 69 | ) | $ | i 41,739 | $ | ( i 2 | ) | $ | i 41,737 | ||||||||
Net
income (loss) | — | — | — | — | i 2,202 | — | — | — | i 2,202 | ( i 12 | ) | i 2,190 | ||||||||||||||||||||
Other
comprehensive income (loss) | — | — | — | — | — | i 15 | ( i 5 | ) | i 3 | i 13 | — | i 13 | ||||||||||||||||||||
Common
stock issuances, including dividend reinvestment and employee benefits | — | i 13 | — | i 955 | — | — | — | — | i 955 | — | i 955 | |||||||||||||||||||||
Common
stock dividends | — | — | — | — | ( i 1,914 | ) | — | — | — | ( i 1,914 | ) | — | ( i 1,914 | ) | ||||||||||||||||||
Distributions
to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | ( i 1 | ) | ( i 1 | ) | |||||||||||||||||||
Other(a) | — | — | — | — | i 12 | — | ( i 12 | ) | — | — | i 33 | i 33 | ||||||||||||||||||||
Balance
at September 30, 2018 | $ | — | i 713 | $ | i 1 | $ | i 39,747 | $ | i 3,313 | $ | i 5 | $ | ( i 5 | ) | $ | ( i 66 | ) | $ | i 42,995 | $ | i 18 | $ | i 43,013 | |||||||||
Balance
at December 31, 2018 | $ | i — | i 727 | $ | i 1 | $ | i 40,795 | $ | i 3,113 | $ | ( i 14 | ) | $ | ( i 3 | ) | $ | ( i 75 | ) | $ | i 43,817 | $ | i 17 | $ | i 43,834 | ||||||||
Net
income (loss) | — | — | — | — | i 3,047 | — | — | — | i 3,047 | ( i 110 | ) | i 2,937 | ||||||||||||||||||||
Other
comprehensive (loss) income | — | — | — | — | — | ( i 58 | ) | i 10 | i 1 | ( i 47 | ) | — | ( i 47 | ) | ||||||||||||||||||
Preferred
stock, Series A, issuances, net of issuance costs(b) | i 973 | — | — | — | — | — | — | — | i 973 | — | i 973 | |||||||||||||||||||||
Preferred
stock, Series B, issuances, net of issuance costs(c) | i 990 | — | — | — | — | — | — | — | i 990 | — | i 990 | |||||||||||||||||||||
Common
stock issuances, including dividend reinvestment and employee benefits | — | i 2 | — | i 158 | — | — | — | — | i 158 | — | i 158 | |||||||||||||||||||||
Common
stock dividends | — | — | — | — | ( i 2,044 | ) | — | — | — | ( i 2,044 | ) | — | ( i 2,044 | ) | ||||||||||||||||||
Sale
of noncontrolling interest(d) | — | — | — | ( i 465 | ) | — | i 10 | — | — | ( i 455 | ) | i 863 | i 408 | |||||||||||||||||||
Contributions
from noncontrolling interest in subsidiaries(e) | — | — | — | — | — | — | — | — | — | i 200 | i 200 | |||||||||||||||||||||
Distributions
to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | ( i 1 | ) | ( i 1 | ) | |||||||||||||||||||
Other(f) | — | — | — | — | i 23 | ( i 6 | ) | ( i 1 | ) | ( i 17 | ) | ( i 1 | ) | — | ( i 1 | ) | ||||||||||||||||
Balance
at September 30, 2019 | $ | i 1,963 | i 729 | $ | i 1 | $ | i 40,488 | $ | i 4,139 | $ | ( i 68 | ) | $ | i 6 | $ | ( i 91 | ) | $ | i 46,438 | $ | i 969 | $ | i 47,407 |
(a) | Amounts
in Retained Earnings and Accumulated Other Comprehensive (Loss) Income represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement. |
(b) | Duke Energy issued i 40
million depositary shares of preferred stock, series A, in the first quarter of 2019. |
(c) | Duke Energy issued i 1 million
shares of preferred stock, series B, in the third quarter of 2019. |
(d) | See Note 2 for additional discussion of the transaction. |
(e) | Relates to tax equity financing activity in the Commercial Renewables segment. See Note 1 for additional discussion. |
(f) | Amounts
in Retained Earnings and Accumulated Other Comprehensive (Loss) Income primarily represent impacts to accumulated other comprehensive income due to implementation of a new accounting standard related to Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | $ | i 2,162 | $ | i 2,090 | $ | i 5,619 | $ | i 5,525 | |||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 504 | i 490 | i 1,371 | i 1,370 | |||||||||||
Operation,
maintenance and other | i 443 | i 514 | i 1,324 | i 1,464 | |||||||||||
Depreciation
and amortization | i 350 | i 305 | i 1,013 | i 866 | |||||||||||
Property
and other taxes | i 66 | i 67 | i 221 | i 214 | |||||||||||
Impairment
charges | i 6 | i 1 | i 11 | i 191 | |||||||||||
Total
operating expenses | i 1,369 | i 1,377 | i 3,940 | i 4,105 | |||||||||||
Losses
on Sales of Other Assets and Other, net | — | — | — | ( i 1 | ) | ||||||||||
Operating
Income | i 793 | i 713 | i 1,679 | i 1,419 | |||||||||||
Other
Income and Expenses, net | i 34 | i 34 | i 106 | i 108 | |||||||||||
Interest
Expense | i 119 | i 106 | i 346 | i 323 | |||||||||||
Income
Before Income Taxes | i 708 | i 641 | i 1,439 | i 1,204 | |||||||||||
Income
Tax Expense | i 118 | i 145 | i 255 | i 268 | |||||||||||
Net
Income | $ | i 590 | $ | i 496 | $ | i 1,184 | $ | i 936 | |||||||
Other
Comprehensive Income, net of tax | |||||||||||||||
Reclassification into earnings from cash flow hedges | — | — | — | i 1 | |||||||||||
Comprehensive
Income | $ | i 590 | $ | i 496 | $ | i 1,184 | $ | i 937 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 23 | $ | i 33 | |||
Receivables
(net of allowance for doubtful accounts of $2 at 2019 and 2018) | i 234 | i 219 | |||||
Receivables
of VIEs (net of allowance for doubtful accounts of $7 at 2019 and 2018) | i 775 | i 699 | |||||
Receivables
from affiliated companies | i 108 | i 182 | |||||
Inventory | i 943 | i 948 | |||||
Regulatory
assets | i 573 | i 520 | |||||
Other | i 19 | i 72 | |||||
Total
current assets | i 2,675 | i 2,673 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 47,815 | i 44,741 | |||||
Accumulated
depreciation and amortization | ( i 16,359 | ) | ( i 15,496 | ) | |||
Net
property, plant and equipment | i 31,456 | i 29,245 | |||||
Other
Noncurrent Assets | |||||||
Regulatory assets | i 3,587 | i 3,457 | |||||
Nuclear
decommissioning trust funds | i 4,104 | i 3,558 | |||||
Operating
lease right-of-use assets, net | i 135 | — | |||||
Other | i 1,061 | i 1,027 | |||||
Total
other noncurrent assets | i 8,887 | i 8,042 | |||||
Total
Assets | $ | i 43,018 | $ | i 39,960 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 644 | $ | i 988 | |||
Accounts
payable to affiliated companies | i 174 | i 230 | |||||
Notes
payable to affiliated companies | i 49 | i 439 | |||||
Taxes
accrued | i 262 | i 171 | |||||
Interest
accrued | i 138 | i 102 | |||||
Current
maturities of long-term debt | i 457 | i 6 | |||||
Asset
retirement obligations | i 214 | i 290 | |||||
Regulatory
liabilities | i 197 | i 199 | |||||
Other
| i 545 | i 571 | |||||
Total
current liabilities | i 2,680 | i 2,996 | |||||
Long-Term
Debt | i 11,001 | i 10,633 | |||||
Long-Term
Debt Payable to Affiliated Companies | i 300 | i 300 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 3,853 | i 3,689 | |||||
Asset
retirement obligations | i 5,184 | i 3,659 | |||||
Regulatory
liabilities | i 6,364 | i 5,999 | |||||
Operating
lease liabilities | i 108 | — | |||||
Accrued pension and other post-retirement benefit costs | i 88 | i 99 | |||||
Investment
tax credits | i 232 | i 231 | |||||
Other | i 617 | i 671 | |||||
Total
other noncurrent liabilities | i 16,446 | i 14,348 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Member's equity | i 12,598 | i 11,689 | |||||
Accumulated
other comprehensive loss | ( i 7 | ) | ( i 6 | ) | |||
Total
equity | i 12,591 | i 11,683 | |||||
Total
Liabilities and Equity | $ | i 43,018 | $ | i 39,960 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 1,184 | $ | i 936 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amortization of nuclear fuel) | i 1,227 | i 1,084 | |||||
Equity
component of AFUDC | ( i 29 | ) | ( i 57 | ) | |||
Losses
on sales of other assets | — | i 1 | |||||
Impairment charges | i 11 | i 191 | |||||
Deferred
income taxes | i 96 | i 266 | |||||
Accrued
pension and other post-retirement benefit costs | ( i 5 | ) | i 3 | ||||
Contributions
to qualified pension plans | ( i 7 | ) | ( i 46 | ) | |||
Payments
for asset retirement obligations | ( i 234 | ) | ( i 174 | ) | |||
Provision
for rate refunds | i 34 | i 163 | |||||
(Increase)
decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | ( i 7 | ) | i 2 | ||||
Receivables | ( i 80 | ) | ( i 154 | ) | |||
Receivables
from affiliated companies | i 74 | ( i 63 | ) | ||||
Inventory | i 5 | ( i 11 | ) | ||||
Other
current assets | ( i 117 | ) | ( i 54 | ) | |||
Increase
(decrease) in | |||||||
Accounts payable | ( i 284 | ) | i 69 | ||||
Accounts
payable to affiliated companies | ( i 56 | ) | ( i 67 | ) | |||
Taxes
accrued | i 91 | ( i 47 | ) | ||||
Other
current liabilities | i 44 | ( i 129 | ) | ||||
Other
assets | i 2 | i 18 | |||||
Other
liabilities | ( i 43 | ) | ( i 47 | ) | |||
Net
cash provided by operating activities | i 1,906 | i 1,884 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 1,984 | ) | ( i 2,006 | ) | |||
Purchases
of debt and equity securities | ( i 1,658 | ) | ( i 1,386 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 1,658 | i 1,386 | |||||
Other | ( i 80 | ) | ( i 103 | ) | |||
Net
cash used in investing activities | ( i 2,064 | ) | ( i 2,109 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 819 | i 991 | |||||
Payments
for the redemption of long-term debt | ( i 5 | ) | ( i 704 | ) | |||
Notes
payable to affiliated companies | ( i 390 | ) | i 700 | ||||
Distributions
to parent | ( i 275 | ) | ( i 750 | ) | |||
Other | ( i 1 | ) | ( i 1 | ) | |||
Net
cash provided by financing activities | i 148 | i 236 | |||||
Net
(decrease) increase in cash and cash equivalents | ( i 10 | ) | i 11 | ||||
Cash
and cash equivalents at beginning of period | i 33 | i 16 | |||||
Cash
and cash equivalents at end of period | $ | i 23 | $ | i 27 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 261 | $ | i 299 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | |||||||||||
Accumulated Other | |||||||||||
Comprehensive | |||||||||||
Loss | |||||||||||
Member's | Net
Income (Losses) on | Total | |||||||||
(in millions) | Equity | Cash Flow Hedges | Equity | ||||||||
Balance
at June 30, 2018 | $ | i 11,308 | $ | ( i 6 | ) | $ | i 11,302 | ||||
Net
income | i 496 | — | i 496 | ||||||||
Distributions
to parent | ( i 250 | ) | — | ( i 250 | ) | ||||||
Balance
at September 30, 2018 | $ | i 11,554 | $ | ( i 6 | ) | $ | i 11,548 | ||||
Balance
at June 30, 2019 | $ | i 12,283 | $ | ( i 7 | ) | $ | i 12,276 | ||||
Net
income | i 590 | — | i 590 | ||||||||
Distributions
to parent | ( i 275 | ) | — | ( i 275 | ) | ||||||
Balance
at September 30, 2019 | $ | i 12,598 | $ | ( i 7 | ) | $ | i 12,591 | ||||
Nine
Months Ended September 30, 2018 and 2019 | |||||||||||
Accumulated Other | |||||||||||
Comprehensive | |||||||||||
Loss | |||||||||||
Member's | Net
Income (Losses) on | Total | |||||||||
(in millions) | Equity | Cash Flow Hedges | Equity | ||||||||
Balance
at December 31, 2017 | $ | i 11,368 | $ | ( i 7 | ) | $ | i 11,361 | ||||
Net
income | i 936 | — | i 936 | ||||||||
Other
comprehensive income | — | i 1 | i 1 | ||||||||
Distributions
to parent | ( i 750 | ) | — | ( i 750 | ) | ||||||
Balance
at September 30, 2018 | $ | i 11,554 | $ | ( i 6 | ) | $ | i 11,548 | ||||
Balance
at December 31, 2018 | $ | i 11,689 | $ | ( i 6 | ) | $ | i 11,683 | ||||
Net
income | i 1,184 | — | i 1,184 | ||||||||
Distributions
to parent | ( i 275 | ) | — | ( i 275 | ) | ||||||
Other | — | ( i 1 | ) | ( i 1 | ) | ||||||
Balance
at September 30, 2019 | $ | i 12,598 | $ | ( i 7 | ) | $ | i 12,591 |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | $ | i 3,242 | $ | i 3,045 | $ | i 8,558 | $ | i 8,119 | |||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 1,187 | i 1,148 | i 3,100 | i 3,019 | |||||||||||
Operation,
maintenance and other | i 640 | i 680 | i 1,813 | i 1,913 | |||||||||||
Depreciation
and amortization | i 496 | i 419 | i 1,377 | i 1,183 | |||||||||||
Property
and other taxes | i 159 | i 145 | i 439 | i 399 | |||||||||||
Impairment
charges | ( i 25 | ) | i 1 | ( i 25 | ) | i 34 | |||||||||
Total
operating expenses | i 2,457 | i 2,393 | i 6,704 | i 6,548 | |||||||||||
Gains
on Sales of Other Assets and Other, net | i 1 | i 11 | — | i 23 | |||||||||||
Operating
Income | i 786 | i 663 | i 1,854 | i 1,594 | |||||||||||
Other
Income and Expenses, net | i 41 | i 51 | i 106 | i 128 | |||||||||||
Interest
Expense | i 212 | i 214 | i 650 | i 626 | |||||||||||
Income
Before Income Taxes | i 615 | i 500 | i 1,310 | i 1,096 | |||||||||||
Income
Tax Expense | i 94 | i 94 | i 212 | i 186 | |||||||||||
Net
Income | i 521 | i 406 | i 1,098 | i 910 | |||||||||||
Less:
Net Income Attributable to Noncontrolling Interests | i — | i 2 | i — | i 6 | |||||||||||
Net
Income Attributable to Parent | $ | i 521 | $ | i 404 | $ | i 1,098 | $ | i 904 | |||||||
Net
Income | $ | i 521 | $ | i 406 | $ | i 1,098 | $ | i 910 | |||||||
Other
Comprehensive Income, net of tax | |||||||||||||||
Pension and OPEB adjustments | — | — | i 2 | i 2 | |||||||||||
Net
unrealized gains on cash flow hedges | i 1 | i 2 | i 4 | i 5 | |||||||||||
Unrealized
gains (losses) on available-for-sale securities | i 1 | — | i 2 | ( i 1 | ) | ||||||||||
Other
Comprehensive Income, net of tax | i 2 | i 2 | i 8 | i 6 | |||||||||||
Comprehensive
Income | i 523 | i 408 | i 1,106 | i 916 | |||||||||||
Less:
Comprehensive Income Attributable to Noncontrolling Interests | — | i 2 | — | i 6 | |||||||||||
Comprehensive
Income Attributable to Parent | $ | i 523 | $ | i 406 | $ | i 1,106 | $ | i 910 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 82 | $ | i 67 | |||
Receivables
(net of allowance for doubtful accounts of $6 at 2019 and $5 at 2018) | i 181 | i 220 | |||||
Receivables
of VIEs (net of allowance for doubtful accounts of $8 at 2019 and 2018) | i 1,042 | i 909 | |||||
Receivables
from affiliated companies | i 33 | i 168 | |||||
Inventory | i 1,434 | i 1,459 | |||||
Regulatory
assets (includes $52 at 2019 and 2018 related to VIEs) | i 881 | i 1,137 | |||||
Other
(includes $16 at 2019 and $39 at 2018 related to VIEs) | i 242 | i 125 | |||||
Total
current assets | i 3,895 | i 4,085 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 53,491 | i 50,260 | |||||
Accumulated
depreciation and amortization | ( i 16,917 | ) | ( i 16,398 | ) | |||
Generation
facilities to be retired, net | i 267 | i 362 | |||||
Net
property, plant and equipment | i 36,841 | i 34,224 | |||||
Other
Noncurrent Assets | |||||||
Goodwill | i 3,655 | i 3,655 | |||||
Regulatory
assets (includes $1,002 at 2019 and $1,041 at 2018 related to VIEs) | i 6,733 | i 6,564 | |||||
Nuclear
decommissioning trust funds | i 3,590 | i 3,162 | |||||
Operating
lease right-of-use assets, net | i 814 | — | |||||
Other | i 989 | i 974 | |||||
Total
other noncurrent assets | i 15,781 | i 14,355 | |||||
Total
Assets | $ | i 56,517 | $ | i 52,664 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 1,095 | $ | i 1,172 | |||
Accounts
payable to affiliated companies | i 354 | i 360 | |||||
Notes
payable to affiliated companies | i 1,789 | i 1,235 | |||||
Taxes
accrued | i 271 | i 109 | |||||
Interest
accrued | i 212 | i 246 | |||||
Current
maturities of long-term debt (includes $54 at 2019 and $53 at 2018 related to VIEs) | i 1,276 | i 1,672 | |||||
Asset
retirement obligations | i 478 | i 514 | |||||
Regulatory
liabilities | i 296 | i 280 | |||||
Other | i 850 | i 821 | |||||
Total
current liabilities | i 6,621 | i 6,409 | |||||
Long-Term
Debt (includes $1,631 at 2019 and $1,636 at 2018 related to VIEs) | i 17,693 | i 17,089 | |||||
Long-Term
Debt Payable to Affiliated Companies | i 150 | i 150 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 4,389 | i 3,941 | |||||
Asset
retirement obligations | i 5,610 | i 4,897 | |||||
Regulatory
liabilities | i 5,165 | i 5,049 | |||||
Operating
lease liabilities | i 710 | — | |||||
Accrued pension and other post-retirement benefit costs | i 455 | i 521 | |||||
Other | i 361 | i 351 | |||||
Total
other noncurrent liabilities | i 16,690 | i 14,759 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2019 and 2018 | — | — | |||||
Additional
paid-in capital | i 9,143 | i 9,143 | |||||
Retained
earnings | i 6,236 | i 5,131 | |||||
Accumulated
other comprehensive loss | ( i 19 | ) | ( i 20 | ) | |||
Total
Progress Energy, Inc. stockholders' equity | i 15,360 | i 14,254 | |||||
Noncontrolling
interests | i 3 | i 3 | |||||
Total
equity | i 15,363 | i 14,257 | |||||
Total
Liabilities and Equity | $ | i 56,517 | $ | i 52,664 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 1,098 | $ | i 910 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | i 1,649 | i 1,458 | |||||
Equity
component of AFUDC | ( i 48 | ) | ( i 80 | ) | |||
Gains
on sales of other assets | — | ( i 23 | ) | ||||
Impairment charges | ( i 25 | ) | i 34 | ||||
Deferred
income taxes | i 342 | i 342 | |||||
Accrued
pension and other post-retirement benefit costs | i 14 | i 18 | |||||
Contributions
to qualified pension plans | ( i 57 | ) | ( i 45 | ) | |||
Payments
for asset retirement obligations | ( i 309 | ) | ( i 164 | ) | |||
Other
rate case adjustments | — | i 37 | |||||
Provision for rate refunds | i 13 | i 101 | |||||
(Increase)
decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | i 9 | i 14 | |||||
Receivables | ( i 128 | ) | ( i 316 | ) | |||
Receivables
from affiliated companies | i 135 | i 16 | |||||
Inventory | i 45 | i 119 | |||||
Other
current assets | i 79 | ( i 156 | ) | ||||
Increase
(decrease) in | |||||||
Accounts payable | ( i 64 | ) | i 427 | ||||
Accounts
payable to affiliated companies | ( i 6 | ) | i 76 | ||||
Taxes
accrued | i 150 | i 143 | |||||
Other
current liabilities | ( i 96 | ) | ( i 28 | ) | |||
Other
assets | ( i 281 | ) | ( i 668 | ) | |||
Other
liabilities | ( i 90 | ) | ( i 34 | ) | |||
Net
cash provided by operating activities | i 2,430 | i 2,181 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 2,866 | ) | ( i 2,689 | ) | |||
Purchases
of debt and equity securities | ( i 1,304 | ) | ( i 1,216 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 1,300 | i 1,225 | |||||
Net
proceeds from the sales of other assets | — | i 20 | |||||
Notes receivable from affiliated companies | — | ( i 205 | ) | ||||
Other | ( i 130 | ) | ( i 142 | ) | |||
Net
cash used in investing activities | ( i 3,000 | ) | ( i 3,007 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 1,295 | i 1,785 | |||||
Payments
for the redemption of long-term debt | ( i 1,263 | ) | ( i 719 | ) | |||
Notes
payable to affiliated companies | i 554 | ( i 11 | ) | ||||
Dividends
to parent | — | ( i 250 | ) | ||||
Other | i 8 | ( i 3 | ) | ||||
Net
cash provided by financing activities | i 594 | i 802 | |||||
Net
increase (decrease) in cash, cash equivalents and restricted cash | i 24 | ( i 24 | ) | ||||
Cash,
cash equivalents and restricted cash at beginning of period | i 112 | i 87 | |||||
Cash,
cash equivalents and restricted cash at end of period | $ | i 136 | $ | i 63 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 400 | $ | i 441 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | |||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||
Net
Gains | Net Unrealized | Total Progress | |||||||||||||||||||||||||||||
Additional | (Losses)
on | Gains (Losses) on | Pension and | Energy, Inc. | |||||||||||||||||||||||||||
Paid-in | Retained | Cash
Flow | Available-for- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||
(in
millions) | Capital | Earnings | Hedges | Sale Securities | Adjustments | Equity | Interests | Equity | |||||||||||||||||||||||
Balance
at June 30, 2018 | $ | i 9,143 | $ | i 4,855 | $ | ( i 15 | ) | $ | ( i 1 | ) | $ | ( i 10 | ) | $ | i 13,972 | $ | — | $ | i 13,972 | ||||||||||||
Net
income | — | i 404 | — | — | — | i 404 | i 2 | i 406 | |||||||||||||||||||||||
Other
comprehensive income | — | — | i 2 | — | — | i 2 | — | i 2 | |||||||||||||||||||||||
Dividends
to parent | — | ( i 250 | ) | — | — | — | ( i 250 | ) | — | ( i 250 | ) | ||||||||||||||||||||
Balance
at September 30, 2018 | $ | i 9,143 | $ | i 5,009 | $ | ( i 13 | ) | $ | ( i 1 | ) | $ | ( i 10 | ) | $ | i 14,128 | $ | i 2 | $ | i 14,130 | ||||||||||||
Balance
at June 30, 2019 | $ | i 9,143 | $ | i 5,715 | $ | ( i 13 | ) | $ | — | $ | ( i 8 | ) | $ | i 14,837 | $ | i 2 | $ | i 14,839 | |||||||||||||
Net
income | — | i 521 | — | — | — | i 521 | — | i 521 | |||||||||||||||||||||||
Other
comprehensive income | — | — | i 1 | i 1 | — | i 2 | — | i 2 | |||||||||||||||||||||||
Other | — | — | — | ( i 1 | ) | i 1 | — | i 1 | i 1 | ||||||||||||||||||||||
Balance
at September 30, 2019 | $ | i 9,143 | $ | i 6,236 | $ | ( i 12 | ) | $ | — | $ | ( i 7 | ) | $ | i 15,360 | $ | i 3 | $ | i 15,363 | |||||||||||||
Nine
Months Ended September 30, 2018 and 2019 | |||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||
Net
Gains | Net Unrealized | Total Progress | |||||||||||||||||||||||||||||
Additional | (Losses)
on | Gains (Losses) on | Pension and | Energy, Inc. | |||||||||||||||||||||||||||
Paid-in | Retained | Cash
Flow | Available-for- | OPEB | Stockholders' | Noncontrolling | Total | ||||||||||||||||||||||||
Capital | Earnings | Hedges | Sale
Securities | Adjustments | Equity | Interests | Equity | ||||||||||||||||||||||||
Balance
at December 31, 2017 | $ | i 9,143 | $ | i 4,350 | $ | ( i 18 | ) | $ | i 5 | $ | ( i 12 | ) | $ | i 13,468 | $ | ( i 3 | ) | $ | i 13,465 | ||||||||||||
Net
income | — | i 904 | — | — | — | i 904 | i 6 | i 910 | |||||||||||||||||||||||
Other
comprehensive income (loss) | — | — | i 5 | ( i 1 | ) | i 2 | i 6 | — | i 6 | ||||||||||||||||||||||
Distributions
to noncontrolling interests | — | — | — | — | — | — | ( i 1 | ) | ( i 1 | ) | |||||||||||||||||||||
Dividends
to parent | — | ( i 250 | ) | — | — | — | ( i 250 | ) | — | ( i 250 | ) | ||||||||||||||||||||
Other(a) | — | i 5 | — | ( i 5 | ) | — | — | — | — | ||||||||||||||||||||||
Balance
at September 30, 2018 | $ | i 9,143 | $ | i 5,009 | $ | ( i 13 | ) | $ | ( i 1 | ) | $ | ( i 10 | ) | $ | i 14,128 | $ | i 2 | $ | i 14,130 | ||||||||||||
Balance
at December 31, 2018 | $ | i 9,143 | $ | i 5,131 | $ | ( i 12 | ) | $ | ( i 1 | ) | $ | ( i 7 | ) | $ | i 14,254 | $ | i 3 | $ | i 14,257 | ||||||||||||
Net
income | — | i 1,098 | — | — | — | i 1,098 | — | i 1,098 | |||||||||||||||||||||||
Other
comprehensive income | — | — | i 4 | i 2 | i 2 | i 8 | — | i 8 | |||||||||||||||||||||||
Other(b) | — | i 7 | ( i 4 | ) | ( i 1 | ) | ( i 2 | ) | — | — | — | ||||||||||||||||||||
Balance
at September 30, 2019 | $ | i 9,143 | $ | i 6,236 | $ | ( i 12 | ) | $ | — | $ | ( i 7 | ) | $ | i 15,360 | $ | i 3 | $ | i 15,363 |
(a) | Amounts
in Retained Earnings and Accumulated Other Comprehensive (Loss) Income represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement. |
(b) | Amounts in Retained Earnings and Accumulated Other Comprehensive (Loss) Income primarily represent impacts to accumulated other comprehensive income due to implementation of a new accounting standard related to Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
FINANCIAL
STATEMENTS |
Three
Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating
Revenues | $ | i 1,688 | $ | i 1,582 | $ | i 4,559 | $ | i 4,333 | |||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 577 | i 535 | i 1,571 | i 1,452 | |||||||||||
Operation,
maintenance and other | i 378 | i 431 | i 1,070 | i 1,187 | |||||||||||
Depreciation
and amortization | i 314 | i 253 | i 855 | i 723 | |||||||||||
Property
and other taxes | i 46 | i 40 | i 131 | i 115 | |||||||||||
Impairment
charges | — | — | — | i 33 | |||||||||||
Total
operating expenses | i 1,315 | i 1,259 | i 3,627 | i 3,510 | |||||||||||
Gains
on Sales of Other Assets and Other, net | — | i 7 | — | i 9 | |||||||||||
Operating
Income | i 373 | i 330 | i 932 | i 832 | |||||||||||
Other
Income and Expenses, net | i 27 | i 24 | i 75 | i 61 | |||||||||||
Interest
Expense | i 74 | i 82 | i 232 | i 241 | |||||||||||
Income
Before Income Taxes | i 326 | i 272 | i 775 | i 652 | |||||||||||
Income
Tax Expense | i 48 | i 56 | i 125 | i 120 | |||||||||||
Net
Income and Comprehensive Income | $ | i 278 | $ | i 216 | $ | i 650 | $ | i 532 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 49 | $ | i 23 | |||
Receivables
(net of allowance for doubtful accounts of $2 at 2019 and 2018) | i 75 | i 75 | |||||
Receivables
of VIEs (net of allowance for doubtful accounts of $5 at 2019 and 2018) | i 564 | i 547 | |||||
Receivables
from affiliated companies | i 34 | i 23 | |||||
Inventory | i 939 | i 954 | |||||
Regulatory
assets | i 515 | i 703 | |||||
Other | i 95 | i 62 | |||||
Total
current assets | i 2,271 | i 2,387 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 33,594 | i 31,459 | |||||
Accumulated
depreciation and amortization | ( i 11,761 | ) | ( i 11,423 | ) | |||
Generation
facilities to be retired, net | i 267 | i 362 | |||||
Net
property, plant and equipment | i 22,100 | i 20,398 | |||||
Other
Noncurrent Assets | |||||||
Regulatory assets | i 4,363 | i 4,111 | |||||
Nuclear
decommissioning trust funds | i 2,872 | i 2,503 | |||||
Operating
lease right-of-use assets, net | i 397 | — | |||||
Other | i 595 | i 612 | |||||
Total
other noncurrent assets | i 8,227 | i 7,226 | |||||
Total
Assets | $ | i 32,598 | $ | i 30,011 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 550 | $ | i 660 | |||
Accounts
payable to affiliated companies | i 198 | i 278 | |||||
Notes
payable to affiliated companies | i 79 | i 294 | |||||
Taxes
accrued | i 101 | i 53 | |||||
Interest
accrued | i 89 | i 116 | |||||
Current
maturities of long-term debt | i 306 | i 603 | |||||
Asset
retirement obligations | i 476 | i 509 | |||||
Regulatory
liabilities | i 210 | i 178 | |||||
Other | i 416 | i 408 | |||||
Total
current liabilities | i 2,425 | i 3,099 | |||||
Long-Term
Debt | i 8,593 | i 7,451 | |||||
Long-Term
Debt Payable to Affiliated Companies | i 150 | i 150 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 2,316 | i 2,119 | |||||
Asset
retirement obligations | i 5,038 | i 4,311 | |||||
Regulatory
liabilities | i 4,152 | i 3,955 | |||||
Operating
lease liabilities | i 360 | — | |||||
Accrued pension and other post-retirement benefit costs | i 230 | i 237 | |||||
Investment
tax credits | i 138 | i 142 | |||||
Other | i 105 | i 106 | |||||
Total
other noncurrent liabilities | i 12,339 | i 10,870 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Member's Equity | i 9,091 | i 8,441 | |||||
Total
Liabilities and Equity | $ | i 32,598 | $ | i 30,011 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 650 | $ | i 532 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amortization of nuclear fuel) | i 996 | i 869 | |||||
Equity
component of AFUDC | ( i 44 | ) | ( i 41 | ) | |||
Gains
on sales of other assets | — | ( i 9 | ) | ||||
Impairment charges | — | i 33 | |||||
Deferred
income taxes | i 144 | i 187 | |||||
Accrued
pension and other post-retirement benefit costs | i 2 | i 11 | |||||
Contributions
to qualified pension plans | ( i 4 | ) | ( i 25 | ) | |||
Payments
for asset retirement obligations | ( i 288 | ) | ( i 133 | ) | |||
Other
rate case adjustments | — | i 37 | |||||
Provision for rate refunds | i 13 | i 101 | |||||
(Increase)
decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | ( i 4 | ) | i 3 | ||||
Receivables | ( i 9 | ) | ( i 154 | ) | |||
Receivables
from affiliated companies | ( i 11 | ) | ( i 3 | ) | |||
Inventory | i 15 | i 62 | |||||
Other
current assets | i 65 | ( i 239 | ) | ||||
Increase
(decrease) in | |||||||
Accounts payable | ( i 54 | ) | i 325 | ||||
Accounts
payable to affiliated companies | ( i 80 | ) | i 73 | ||||
Taxes
accrued | i 37 | i 28 | |||||
Other
current liabilities | ( i 17 | ) | ( i 27 | ) | |||
Other
assets | ( i 197 | ) | ( i 358 | ) | |||
Other
liabilities | i 33 | i 11 | |||||
Net
cash provided by operating activities | i 1,247 | i 1,283 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 1,592 | ) | ( i 1,526 | ) | |||
Purchases
of debt and equity securities | ( i 656 | ) | ( i 831 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 632 | i 807 | |||||
Net
proceeds from the sales of other assets | — | i 20 | |||||
Notes receivable from affiliated companies | — | ( i 52 | ) | ||||
Other | ( i 56 | ) | ( i 82 | ) | |||
Net
cash used in investing activities | ( i 1,672 | ) | ( i 1,664 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 1,270 | i 796 | |||||
Payments
for the redemption of long-term debt | ( i 603 | ) | ( i 2 | ) | |||
Notes
payable to affiliated companies | ( i 215 | ) | ( i 240 | ) | |||
Distributions
to parent | — | ( i 175 | ) | ||||
Other | ( i 1 | ) | ( i 1 | ) | |||
Net
cash provided by financing activities | i 451 | i 378 | |||||
Net
increase (decrease) in cash and cash equivalents | i 26 | ( i 3 | ) | ||||
Cash
and cash equivalents at beginning of period | i 23 | i 20 | |||||
Cash
and cash equivalents at end of period | $ | i 49 | $ | i 17 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 182 | $ | i 261 |
FINANCIAL STATEMENTS |
Three
Months Ended | |||
Member's | |||
(in millions) | Equity | ||
Balance at June 30, 2018 | $ | i 8,265 | |
Net
income | i 216 | ||
Distributions to parent | ( i 175 | ) | |
Balance
at September 30, 2018 | $ | i 8,306 | |
Balance at June 30, 2019 | $ | i 8,813 | |
Net
income | i 278 | ||
Balance at September 30, 2019 | $ | i 9,091 | |
Nine
Months Ended | |||
Member's | |||
(in millions) | Equity | ||
Balance at December 31, 2017 | $ | i 7,949 | |
Net
income | i 532 | ||
Distributions to parent | ( i 175 | ) | |
Balance
at September 30, 2018 | $ | i 8,306 | |
Balance at December 31, 2018 | $ | i 8,441 | |
Net
income | i 650 | ||
Balance at September 30, 2019 | $ | i 9,091 |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | $ | i 1,548 | $ | i 1,462 | $ | i 3,987 | $ | i 3,780 | |||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 610 | i 614 | i 1,529 | i 1,567 | |||||||||||
Operation,
maintenance and other | i 256 | i 245 | i 730 | i 719 | |||||||||||
Depreciation
and amortization | i 182 | i 166 | i 522 | i 460 | |||||||||||
Property
and other taxes | i 113 | i 105 | i 309 | i 284 | |||||||||||
Impairment
charges | ( i 25 | ) | i 1 | ( i 25 | ) | i 1 | |||||||||
Total
operating expenses | i 1,136 | i 1,131 | i 3,065 | i 3,031 | |||||||||||
Gains
on Sales of Other Assets and Other, net | i 1 | — | — | — | |||||||||||
Operating
Income | i 413 | i 331 | i 922 | i 749 | |||||||||||
Other
Income and Expenses, net | i 14 | i 28 | i 39 | i 75 | |||||||||||
Interest
Expense | i 81 | i 73 | i 246 | i 210 | |||||||||||
Income
Before Income Taxes | i 346 | i 286 | i 715 | i 614 | |||||||||||
Income
Tax Expense | i 57 | i 43 | i 129 | i 100 | |||||||||||
Net
Income | $ | i 289 | $ | i 243 | $ | i 586 | $ | i 514 | |||||||
Other
Comprehensive Income (Loss), net of tax | |||||||||||||||
Unrealized gains (losses) on available-for-sale securities | i 1 | — | i 2 | ( i 1 | ) | ||||||||||
Comprehensive
Income | $ | i 290 | $ | i 243 | $ | i 588 | $ | i 513 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 24 | $ | i 36 | |||
Receivables
(net of allowance for doubtful accounts of $3 at 2019 and 2018) | i 104 | i 143 | |||||
Receivables
of VIEs (net of allowance for doubtful accounts of $3 at 2019 and 2018) | i 478 | i 362 | |||||
Receivables
from affiliated companies | i 1 | i 28 | |||||
Inventory | i 495 | i 504 | |||||
Regulatory
assets (includes $52 at 2019 and 2018 related to VIEs) | i 367 | i 434 | |||||
Other
(includes $16 at 2019 and $39 at 2018 related to VIEs) | i 42 | i 46 | |||||
Total
current assets | i 1,511 | i 1,553 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 19,887 | i 18,792 | |||||
Accumulated
depreciation and amortization | ( i 5,148 | ) | ( i 4,968 | ) | |||
Net
property, plant and equipment | i 14,739 | i 13,824 | |||||
Other
Noncurrent Assets | |||||||
Regulatory assets (includes $1,002 at 2019 and $1,041 at 2018 related to VIEs) | i 2,370 | i 2,454 | |||||
Nuclear
decommissioning trust funds | i 718 | i 659 | |||||
Operating
lease right-of-use assets, net | i 417 | — | |||||
Other | i 307 | i 311 | |||||
Total
other noncurrent assets | i 3,812 | i 3,424 | |||||
Total
Assets | $ | i 20,062 | $ | i 18,801 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 542 | $ | i 511 | |||
Accounts
payable to affiliated companies | i 158 | i 91 | |||||
Notes
payable to affiliated companies | i 356 | i 108 | |||||
Taxes
accrued | i 175 | i 74 | |||||
Interest
accrued | i 72 | i 75 | |||||
Current
maturities of long-term debt (includes $54 at 2019 and $53 at 2018 related to VIEs) | i 621 | i 270 | |||||
Asset
retirement obligations | i 2 | i 5 | |||||
Regulatory
liabilities | i 87 | i 102 | |||||
Other | i 423 | i 406 | |||||
Total
current liabilities | i 2,436 | i 1,642 | |||||
Long-Term
Debt (includes $1,306 at 2019 and $1,336 at 2018 related to VIEs) | i 6,511 | i 7,051 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 2,199 | i 1,986 | |||||
Asset
retirement obligations | i 572 | i 586 | |||||
Regulatory
liabilities | i 1,013 | i 1,094 | |||||
Operating
lease liabilities | i 350 | — | |||||
Accrued pension and other post-retirement benefit costs | i 196 | i 254 | |||||
Other | i 102 | i 93 | |||||
Total
other noncurrent liabilities | i 4,432 | i 4,013 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Member's equity | i 6,683 | i 6,097 | |||||
Accumulated
other comprehensive loss | — | ( i 2 | ) | ||||
Total equity | i 6,683 | i 6,095 | |||||
Total
Liabilities and Equity | $ | i 20,062 | $ | i 18,801 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 586 | $ | i 514 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | i 647 | i 581 | |||||
Equity
component of AFUDC | ( i 4 | ) | ( i 40 | ) | |||
Impairment
charges | ( i 25 | ) | i 1 | ||||
Deferred
income taxes | i 164 | i 169 | |||||
Accrued
pension and other post-retirement benefit costs | i 8 | i 4 | |||||
Contributions
to qualified pension plans | ( i 53 | ) | ( i 20 | ) | |||
Payments
for asset retirement obligations | ( i 21 | ) | ( i 31 | ) | |||
(Increase)
decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | i 9 | i 7 | |||||
Receivables | ( i 119 | ) | ( i 163 | ) | |||
Receivables
from affiliated companies | i 27 | ( i 18 | ) | ||||
Inventory | i 29 | i 57 | |||||
Other
current assets | i 100 | i 51 | |||||
Increase
(decrease) in | |||||||
Accounts payable | ( i 11 | ) | i 101 | ||||
Accounts
payable to affiliated companies | i 67 | i 9 | |||||
Taxes
accrued | i 101 | i 198 | |||||
Other
current liabilities | ( i 77 | ) | i 1 | ||||
Other
assets | ( i 81 | ) | ( i 308 | ) | |||
Other
liabilities | ( i 127 | ) | ( i 58 | ) | |||
Net
cash provided by operating activities | i 1,220 | i 1,055 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 1,274 | ) | ( i 1,162 | ) | |||
Purchases
of debt and equity securities | ( i 648 | ) | ( i 385 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 668 | i 418 | |||||
Notes
receivable from affiliated companies | — | ( i 80 | ) | ||||
Other | ( i 73 | ) | ( i 61 | ) | |||
Net
cash used in investing activities | ( i 1,327 | ) | ( i 1,270 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 25 | i 989 | |||||
Payments
for the redemption of long-term debt | ( i 210 | ) | ( i 717 | ) | |||
Notes
payable to affiliated companies | i 248 | — | |||||
Distributions to parent | — | ( i 75 | ) | ||||
Other | i 9 | ( i 1 | ) | ||||
Net
cash provided by financing activities | i 72 | i 196 | |||||
Net
decrease in cash, cash equivalents and restricted cash | ( i 35 | ) | ( i 19 | ) | |||
Cash,
cash equivalents and restricted cash at beginning of period | i 75 | i 53 | |||||
Cash,
cash equivalents and restricted cash at end of period | $ | i 40 | $ | i 34 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 218 | $ | i 180 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | |||||||||||
Accumulated | |||||||||||
Other | |||||||||||
Comprehensive | |||||||||||
Income
(Loss) | |||||||||||
Net Unrealized | |||||||||||
Gains (Losses) on | |||||||||||
Member's | Available-for-Sale | Total | |||||||||
(in
millions) | Equity | Securities | Equity | ||||||||
Balance at June 30, 2018 | $ | i 5,890 | $ | ( i 2 | ) | $ | i 5,888 | ||||
Net
income | i 243 | — | i 243 | ||||||||
Distributions
to parent | ( i 75 | ) | — | ( i 75 | ) | ||||||
Balance
at September 30, 2018 | $ | i 6,058 | $ | ( i 2 | ) | $ | i 6,056 | ||||
Balance
at June 30, 2019 | $ | i 6,394 | $ | ( i 1 | ) | $ | i 6,393 | ||||
Net
income | i 289 | — | i 289 | ||||||||
Other
comprehensive income | — | i 1 | i 1 | ||||||||
Balance
at September 30, 2019 | $ | i 6,683 | $ | — | $ | i 6,683 | |||||
Nine
Months Ended September 30, 2018 and 2019 | |||||||||||
Accumulated | |||||||||||
Other | |||||||||||
Comprehensive | |||||||||||
Income
(Loss) | |||||||||||
Net Unrealized | |||||||||||
Gains (Losses) on | |||||||||||
Member's | Available-for-Sale | Total | |||||||||
(in
millions) | Equity | Securities | Equity | ||||||||
Balance at December 31, 2017 | $ | i 5,614 | $ | i 4 | $ | i 5,618 | |||||
Net
income | i 514 | — | i 514 | ||||||||
Other
comprehensive loss | — | ( i 1 | ) | ( i 1 | ) | ||||||
Distributions
to parent | ( i 75 | ) | — | ( i 75 | ) | ||||||
Other(a) | i 5 | ( i 5 | ) | — | |||||||
Balance
at September 30, 2018 | $ | i 6,058 | $ | ( i 2 | ) | $ | i 6,056 | ||||
Balance
at December 31, 2018 | $ | i 6,097 | $ | ( i 2 | ) | $ | i 6,095 | ||||
Net
income | i 586 | — | i 586 | ||||||||
Other
comprehensive income | — | i 2 | i 2 | ||||||||
Balance
at September 30, 2019 | $ | i 6,683 | $ | — | $ | i 6,683 |
(a) | Amounts
in Member's Equity and Accumulated Other Comprehensive Income (Loss) represent a cumulative-effect adjustment due to implementation of a new accounting standard related to Financial Instruments Classification and Measurement. |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | |||||||||||||||
Regulated
electric | $ | i 408 | $ | i 373 | $ | i 1,099 | $ | i 1,055 | |||||||
Regulated
natural gas | i 81 | i 84 | i 354 | i 361 | |||||||||||
Nonregulated
electric and other | — | i 12 | — | i 36 | |||||||||||
Total
operating revenues | i 489 | i 469 | i 1,453 | i 1,452 | |||||||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power – regulated | i 114 | i 99 | i 293 | i 284 | |||||||||||
Fuel
used in electric generation and purchased power – nonregulated | — | i 14 | — | i 43 | |||||||||||
Cost
of natural gas | i 4 | i 4 | i 68 | i 73 | |||||||||||
Operation,
maintenance and other | i 123 | i 76 | i 378 | i 337 | |||||||||||
Depreciation
and amortization | i 69 | i 64 | i 199 | i 196 | |||||||||||
Property
and other taxes | i 71 | i 73 | i 229 | i 218 | |||||||||||
Total
operating expenses | i 381 | i 330 | i 1,167 | i 1,151 | |||||||||||
Losses
on Sales of Other Assets and Other, net | — | — | — | ( i 106 | ) | ||||||||||
Operating
Income | i 108 | i 139 | i 286 | i 195 | |||||||||||
Other
Income and Expenses, net | i 4 | i 3 | i 19 | i 17 | |||||||||||
Interest
Expense | i 27 | i 23 | i 81 | i 68 | |||||||||||
Income
Before Income Taxes | i 85 | i 119 | i 224 | i 144 | |||||||||||
Income
Tax Expense | i 11 | i 19 | i 34 | i 23 | |||||||||||
Net
Income and Comprehensive Income | $ | i 74 | $ | i 100 | $ | i 190 | $ | i 121 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 11 | $ | i 21 | |||
Receivables
(net of allowance for doubtful accounts of $4 at 2019 and $2 at 2018) | i 81 | i 102 | |||||
Receivables
from affiliated companies | i 63 | i 114 | |||||
Notes
receivable from affiliated companies | i 74 | — | |||||
Inventory | i 128 | i 126 | |||||
Regulatory
assets | i 47 | i 33 | |||||
Other | i 28 | i 24 | |||||
Total
current assets | i 432 | i 420 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 9,993 | i 9,360 | |||||
Accumulated
depreciation and amortization | ( i 2,785 | ) | ( i 2,717 | ) | |||
Net
property, plant and equipment | i 7,208 | i 6,643 | |||||
Other
Noncurrent Assets | |||||||
Goodwill | i 920 | i 920 | |||||
Regulatory
assets | i 553 | i 531 | |||||
Operating
lease right-of-use assets, net | i 22 | — | |||||
Other | i 48 | i 41 | |||||
Total
other noncurrent assets | i 1,543 | i 1,492 | |||||
Total
Assets | $ | i 9,183 | $ | i 8,555 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 266 | $ | i 316 | |||
Accounts
payable to affiliated companies | i 69 | i 78 | |||||
Notes
payable to affiliated companies | i 167 | i 274 | |||||
Taxes
accrued | i 162 | i 202 | |||||
Interest
accrued | i 29 | i 22 | |||||
Current
maturities of long-term debt | i 100 | i 551 | |||||
Asset
retirement obligations | i 3 | i 6 | |||||
Regulatory
liabilities | i 64 | i 57 | |||||
Other | i 74 | i 74 | |||||
Total
current liabilities | i 934 | i 1,580 | |||||
Long-Term
Debt | i 2,594 | i 1,589 | |||||
Long-Term
Debt Payable to Affiliated Companies | i 25 | i 25 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 901 | i 817 | |||||
Asset
retirement obligations | i 82 | i 87 | |||||
Regulatory
liabilities | i 793 | i 840 | |||||
Operating
lease liabilities | i 21 | — | |||||
Accrued pension and other post-retirement benefit costs | i 103 | i 79 | |||||
Other | i 95 | i 93 | |||||
Total
other noncurrent liabilities | i 1,995 | i 1,916 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2019 and 2018 | i 762 | i 762 | |||||
Additional
paid-in capital | i 2,776 | i 2,776 | |||||
Retained
Earnings (Accumulated deficit) | i 97 | ( i 93 | ) | ||||
Total
equity | i 3,635 | i 3,445 | |||||
Total
Liabilities and Equity | $ | i 9,183 | $ | i 8,555 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 190 | $ | i 121 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 202 | i 199 | |||||
Equity
component of AFUDC | ( i 9 | ) | ( i 10 | ) | |||
Losses
on sales of other assets | — | i 106 | |||||
Deferred income taxes | i 68 | i 9 | |||||
Accrued
pension and other post-retirement benefit costs | i 1 | i 3 | |||||
Contributions
to qualified pension plans | ( i 2 | ) | — | ||||
Payments for asset retirement obligations | ( i 7 | ) | ( i 3 | ) | |||
Provision
for rate refunds | i 5 | i 23 | |||||
(Increase)
decrease in | |||||||
Receivables | i 24 | ( i 44 | ) | ||||
Receivables
from affiliated companies | i 51 | i 62 | |||||
Inventory | ( i 2 | ) | ( i 2 | ) | |||
Other
current assets | ( i 15 | ) | i 12 | ||||
Increase
(decrease) in | |||||||
Accounts payable | ( i 40 | ) | ( i 47 | ) | |||
Accounts
payable to affiliated companies | ( i 9 | ) | ( i 8 | ) | |||
Taxes
accrued | ( i 40 | ) | ( i 31 | ) | |||
Other
current liabilities | ( i 4 | ) | i 19 | ||||
Other
assets | ( i 10 | ) | i 3 | ||||
Other
liabilities | ( i 25 | ) | ( i 17 | ) | |||
Net
cash provided by operating activities | i 378 | i 395 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 714 | ) | ( i 588 | ) | |||
Notes
receivable from affiliated companies | ( i 74 | ) | i 14 | ||||
Other | ( i 45 | ) | ( i 62 | ) | |||
Net
cash used in investing activities | ( i 833 | ) | ( i 636 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 1,003 | — | |||||
Payments
for the redemption of long-term debt | ( i 451 | ) | ( i 3 | ) | |||
Notes
payable to affiliated companies | ( i 107 | ) | i 239 | ||||
Net
cash provided by financing activities | i 445 | i 236 | |||||
Net
decrease in cash and cash equivalents | ( i 10 | ) | ( i 5 | ) | |||
Cash
and cash equivalents at beginning of period | i 21 | i 12 | |||||
Cash
and cash equivalents at end of period | $ | i 11 | $ | i 7 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 100 | $ | i 83 | |||
Non-cash
equity contribution from parent | — | i 106 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | |||||||||||||||
Additional | Retained | ||||||||||||||
Common | Paid-in | Earnings | Total | ||||||||||||
(in
millions) | Stock | Capital | (Deficit) | Equity | |||||||||||
Balance at June 30, 2018 | $ | i 762 | $ | i 2,776 | $ | ( i 248 | ) | $ | i 3,290 | ||||||
Net
income | — | — | i 100 | i 100 | |||||||||||
Balance
at September 30, 2018 | $ | i 762 | $ | i 2,776 | $ | ( i 148 | ) | $ | i 3,390 | ||||||
Balance
at June 30, 2019 | $ | i 762 | $ | i 2,776 | $ | i 23 | $ | i 3,561 | |||||||
Net
income | — | — | i 74 | i 74 | |||||||||||
Balance
at September 30, 2019 | $ | i 762 | $ | i 2,776 | $ | i 97 | $ | i 3,635 | |||||||
Nine
Months Ended September 30, 2018 and 2019 | |||||||||||||||
Additional | Retained | ||||||||||||||
Common | Paid-in | Earnings | Total | ||||||||||||
(in
millions) | Stock | Capital | (Deficit) | Equity | |||||||||||
Balance at December 31, 2017 | $ | i 762 | $ | i 2,670 | $ | ( i 269 | ) | $ | i 3,163 | ||||||
Net
income | — | — | i 121 | i 121 | |||||||||||
Contribution
from parent(a) | — | i 106 | — | i 106 | |||||||||||
Balance
at September 30, 2018 | $ | i 762 | $ | i 2,776 | $ | ( i 148 | ) | $ | i 3,390 | ||||||
Balance
at December 31, 2018 | $ | i 762 | $ | i 2,776 | $ | ( i 93 | ) | $ | i 3,445 | ||||||
Net
income | — | — | i 190 | i 190 | |||||||||||
Balance
at September 30, 2019 | $ | i 762 | $ | i 2,776 | $ | i 97 | $ | i 3,635 |
(a) | Represents
a non-cash settlement through equity of an intercompany payable from Duke Energy Ohio to its parent. |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | $ | i 807 | $ | i 819 | $ | i 2,289 | $ | i 2,288 | |||||||
Operating
Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | i 234 | i 272 | i 720 | i 730 | |||||||||||
Operation,
maintenance and other | i 192 | i 198 | i 569 | i 576 | |||||||||||
Depreciation
and amortization | i 130 | i 130 | i 393 | i 386 | |||||||||||
Property
and other taxes | i 16 | i 16 | i 55 | i 56 | |||||||||||
Impairment
charges | — | i 30 | — | i 30 | |||||||||||
Total
operating expenses | i 572 | i 646 | i 1,737 | i 1,778 | |||||||||||
Operating
Income | i 235 | i 173 | i 552 | i 510 | |||||||||||
Other
Income and Expenses, net | i 8 | i 23 | i 35 | i 36 | |||||||||||
Interest
Expense | i 40 | i 42 | i 111 | i 125 | |||||||||||
Income
Before Income Taxes | i 203 | i 154 | i 476 | i 421 | |||||||||||
Income
Tax Expense | i 47 | i 35 | i 113 | i 104 | |||||||||||
Net
Income and Comprehensive Income | $ | i 156 | $ | i 119 | $ | i 363 | $ | i 317 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash
and cash equivalents | $ | i 20 | $ | i 24 | |||
Receivables
(net of allowance for doubtful accounts of $3 at 2019 and $2 at 2018) | i 56 | i 52 | |||||
Receivables
from affiliated companies | i 85 | i 122 | |||||
Notes
receivable from affiliated companies | i 213 | — | |||||
Inventory | i 478 | i 422 | |||||
Regulatory
assets | i 91 | i 175 | |||||
Other | i 29 | i 35 | |||||
Total
current assets | i 972 | i 830 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 16,137 | i 15,443 | |||||
Accumulated
depreciation and amortization | ( i 5,200 | ) | ( i 4,914 | ) | |||
Net
property, plant and equipment | i 10,937 | i 10,529 | |||||
Other
Noncurrent Assets | |||||||
Regulatory assets | i 1,088 | i 982 | |||||
Operating
lease right-of-use assets, net | i 58 | — | |||||
Other | i 211 | i 194 | |||||
Total
other noncurrent assets | i 1,357 | i 1,176 | |||||
Total
Assets | $ | i 13,266 | $ | i 12,535 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 196 | $ | i 200 | |||
Accounts
payable to affiliated companies | i 74 | i 83 | |||||
Notes
payable to affiliated companies | — | i 167 | |||||
Taxes accrued | i 29 | i 43 | |||||
Interest
accrued | i 54 | i 58 | |||||
Current
maturities of long-term debt | i 651 | i 63 | |||||
Asset
retirement obligations | i 165 | i 109 | |||||
Regulatory
liabilities | i 39 | i 25 | |||||
Other | i 107 | i 107 | |||||
Total
current liabilities | i 1,315 | i 855 | |||||
Long-Term
Debt | i 3,407 | i 3,569 | |||||
Long-Term
Debt Payable to Affiliated Companies | i 150 | i 150 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 1,119 | i 1,009 | |||||
Asset
retirement obligations | i 659 | i 613 | |||||
Regulatory
liabilities | i 1,684 | i 1,722 | |||||
Operating
lease liabilities | i 55 | — | |||||
Accrued pension and other post-retirement benefit costs | i 157 | i 115 | |||||
Investment
tax credits | i 161 | i 147 | |||||
Other | i 57 | i 16 | |||||
Total
other noncurrent liabilities | i 3,892 | i 3,622 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Member's Equity | i 4,502 | i 4,339 | |||||
Total
Liabilities and Equity | $ | i 13,266 | $ | i 12,535 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 363 | $ | i 317 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion | i 395 | i 388 | |||||
Equity
component of AFUDC | ( i 13 | ) | ( i 28 | ) | |||
Impairment
charges | — | i 30 | |||||
Deferred income taxes | i 108 | i 94 | |||||
Accrued
pension and other post-retirement benefit costs | i 3 | i 5 | |||||
Contributions
to qualified pension plans | ( i 2 | ) | ( i 8 | ) | |||
Payments
for asset retirement obligations | ( i 31 | ) | ( i 49 | ) | |||
Provision
for rate refunds | — | i 58 | |||||
(Increase) decrease in | |||||||
Receivables | i 1 | i 1 | |||||
Receivables
from affiliated companies | i 37 | i 27 | |||||
Inventory | ( i 56 | ) | i 16 | ||||
Other
current assets | i 91 | ( i 59 | ) | ||||
Increase
(decrease) in | |||||||
Accounts payable | i 1 | i 28 | |||||
Accounts
payable to affiliated companies | ( i 9 | ) | ( i 6 | ) | |||
Taxes
accrued | ( i 14 | ) | ( i 51 | ) | |||
Other
current liabilities | ( i 12 | ) | i 6 | ||||
Other
assets | ( i 73 | ) | i 29 | ||||
Other
liabilities | i 62 | ( i 13 | ) | ||||
Net
cash provided by operating activities | i 851 | i 785 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 663 | ) | ( i 619 | ) | |||
Purchases
of debt and equity securities | ( i 19 | ) | ( i 42 | ) | |||
Proceeds
from sales and maturities of debt and equity securities | i 15 | i 18 | |||||
Notes
receivable from affiliated companies | ( i 213 | ) | — | ||||
Other | ( i 33 | ) | i 3 | ||||
Net
cash used in investing activities | ( i 913 | ) | ( i 640 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 485 | — | |||||
Payments
for the redemption of long-term debt | ( i 60 | ) | ( i 1 | ) | |||
Notes
payable to affiliated companies | ( i 167 | ) | i 40 | ||||
Distributions
to parent | ( i 200 | ) | ( i 175 | ) | |||
Other | — | ( i 1 | ) | ||||
Net
cash provided by (used in) financing activities | i 58 | ( i 137 | ) | ||||
Net
(decrease) increase in cash and cash equivalents | ( i 4 | ) | i 8 | ||||
Cash
and cash equivalents at beginning of period | i 24 | i 9 | |||||
Cash
and cash equivalents at end of period | $ | i 20 | $ | i 17 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 82 | $ | i 71 |
FINANCIAL STATEMENTS |
Three
Months Ended | ||||
Member's | ||||
(in millions) | Equity | |||
Balance at June 30, 2018 | $ | i 4,244 | ||
Net
income | i 119 | |||
Distributions to parent | ( i 100 | ) | ||
Balance
at September 30, 2018 | $ | i 4,263 | ||
Balance
at June 30, 2019 | $ | i 4,546 | ||
Net income | i 156 | |||
Distributions
to parent | ( i 200 | ) | ||
Balance at September 30, 2019 | $ | i 4,502 | ||
Nine
Months Ended | ||||
Member's | ||||
(in millions) | Equity | |||
Balance at December 31, 2017 | $ | i 4,121 | ||
Net
income | i 317 | |||
Distributions to parent | ( i 175 | ) | ||
Balance
at September 30, 2018 | $ | i 4,263 | ||
Balance
at December 31, 2018 | $ | i 4,339 | ||
Net income | i 363 | |||
Distributions
to parent | ( i 200 | ) | ||
Balance at September 30, 2019 | $ | i 4,502 |
FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | $ | i 168 | $ | i 172 | $ | i 956 | $ | i 940 | |||||||
Operating
Expenses | |||||||||||||||
Cost of natural gas | i 46 | i 54 | i 384 | i 387 | |||||||||||
Operation,
maintenance and other | i 78 | i 85 | i 241 | i 252 | |||||||||||
Depreciation
and amortization | i 43 | i 40 | i 127 | i 118 | |||||||||||
Property
and other taxes | i 14 | i 12 | i 39 | i 36 | |||||||||||
Total
operating expenses | i 181 | i 191 | i 791 | i 793 | |||||||||||
Operating
(Loss) Income | ( i 13 | ) | ( i 19 | ) | i 165 | i 147 | |||||||||
Other
Income and Expenses, net | i 7 | i 6 | i 19 | i 15 | |||||||||||
Interest
Expense | i 22 | i 19 | i 65 | i 60 | |||||||||||
(Loss)
Income Before Income Taxes | ( i 28 | ) | ( i 32 | ) | i 119 | i 102 | |||||||||
Income
Tax (Benefit) Expense | ( i 10 | ) | ( i 11 | ) | i 22 | i 21 | |||||||||
Net
(Loss) Income and Comprehensive (Loss) Income | $ | ( i 18 | ) | $ | ( i 21 | ) | $ | i 97 | $ | i 81 |
FINANCIAL STATEMENTS |
(in
millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Receivables
(net of allowance for doubtful accounts of $5 at 2019 and $2 at 2018) | $ | i 78 | $ | i 266 | |||
Receivables
from affiliated companies | i 10 | i 22 | |||||
Inventory | i 47 | i 70 | |||||
Regulatory
assets | i 48 | i 54 | |||||
Other | i 122 | i 19 | |||||
Total
current assets | i 305 | i 431 | |||||
Property,
Plant and Equipment | |||||||
Cost | i 8,234 | i 7,486 | |||||
Accumulated
depreciation and amortization | ( i 1,652 | ) | ( i 1,575 | ) | |||
Net
property, plant and equipment | i 6,582 | i 5,911 | |||||
Other
Noncurrent Assets | |||||||
Goodwill | i 49 | i 49 | |||||
Regulatory
assets | i 306 | i 303 | |||||
Operating
lease right-of-use assets, net | i 25 | — | |||||
Investments in equity method unconsolidated affiliates | i 82 | i 64 | |||||
Other | i 42 | i 52 | |||||
Total
other noncurrent assets | i 504 | i 468 | |||||
Total
Assets | $ | i 7,391 | $ | i 6,810 | |||
LIABILITIES
AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | i 140 | $ | i 203 | |||
Accounts
payable to affiliated companies | i 50 | i 38 | |||||
Notes
payable to affiliated companies | i 262 | i 198 | |||||
Taxes
accrued | i 33 | i 84 | |||||
Interest
accrued | i 32 | i 31 | |||||
Current
maturities of long-term debt | — | i 350 | |||||
Regulatory liabilities | i 77 | i 37 | |||||
Other | i 63 | i 58 | |||||
Total
current liabilities | i 657 | i 999 | |||||
Long-Term
Debt | i 2,384 | i 1,788 | |||||
Other
Noncurrent Liabilities | |||||||
Deferred income taxes | i 663 | i 551 | |||||
Asset
retirement obligations | i 20 | i 19 | |||||
Regulatory
liabilities | i 1,154 | i 1,181 | |||||
Operating
lease liabilities | i 24 | — | |||||
Accrued pension and other post-retirement benefit costs | i 6 | i 4 | |||||
Other | i 145 | i 177 | |||||
Total
other noncurrent liabilities | i 2,012 | i 1,932 | |||||
Commitments
and Contingencies | |||||||
Equity | |||||||
Common stock, no par value: 100 shares authorized and outstanding at 2019 and 2018 | i 1,310 | i 1,160 | |||||
Retained
earnings | i 1,028 | i 931 | |||||
Total
equity | i 2,338 | i 2,091 | |||||
Total
Liabilities and Equity | $ | i 7,391 | $ | i 6,810 |
FINANCIAL STATEMENTS |
Nine
Months Ended | |||||||
September 30, | |||||||
(in millions) | 2019 | 2018 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net
income | $ | i 97 | $ | i 81 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 129 | i 120 | |||||
Deferred
income taxes | i 110 | i 2 | |||||
Equity
in earnings from unconsolidated affiliates | ( i 6 | ) | ( i 6 | ) | |||
Accrued
pension and other post-retirement benefit costs | ( i 7 | ) | ( i 3 | ) | |||
Contributions
to qualified pension plans | ( i 1 | ) | — | ||||
Provision for rate refunds | i 9 | i 31 | |||||
(Increase)
decrease in | |||||||
Receivables | i 192 | i 192 | |||||
Receivables
from affiliated companies | i 12 | ( i 3 | ) | ||||
Inventory | i 23 | i 16 | |||||
Other
current assets | ( i 95 | ) | i 58 | ||||
Increase
(decrease) in | |||||||
Accounts payable | ( i 93 | ) | ( i 48 | ) | |||
Accounts
payable to affiliated companies | i 12 | i 14 | |||||
Taxes
accrued | ( i 51 | ) | i 11 | ||||
Other
current liabilities | ( i 6 | ) | i 8 | ||||
Other
assets | ( i 4 | ) | ( i 4 | ) | |||
Other
liabilities | ( i 4 | ) | ( i 5 | ) | |||
Net
cash provided by operating activities | i 317 | i 464 | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | ( i 751 | ) | ( i 497 | ) | |||
Contributions
to equity method investments | ( i 16 | ) | — | ||||
Notes receivable from affiliated companies | — | ( i 11 | ) | ||||
Other | ( i 10 | ) | ( i 5 | ) | |||
Net
cash used in investing activities | ( i 777 | ) | ( i 513 | ) | |||
CASH
FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the issuance of long-term debt | i 596 | i 100 | |||||
Payments
for the redemption of long-term debt | ( i 350 | ) | — | ||||
Notes payable to affiliated companies | i 64 | ( i 364 | ) | ||||
Capital
contributions from parent | i 150 | i 300 | |||||
Net
cash provided by financing activities | i 460 | i 36 | |||||
Net
decrease in cash and cash equivalents | — | ( i 13 | ) | ||||
Cash
and cash equivalents at beginning of period | — | i 19 | |||||
Cash
and cash equivalents at end of period | $ | — | $ | i 6 | |||
Supplemental
Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | i 121 | $ | i 89 |
FINANCIAL STATEMENTS |
Three
Months Ended September 30, 2018 and 2019 | |||||||||||
Common | Retained | Total | |||||||||
(in millions) | Stock | Earnings | Equity | ||||||||
Balance
at June 30, 2018 | $ | i 1,160 | $ | i 904 | $ | i 2,064 | |||||
Net
loss | — | ( i 21 | ) | ( i 21 | ) | ||||||
Balance
at September 30, 2018 | $ | i 1,160 | $ | i 883 | $ | i 2,043 | |||||
Balance
at June 30, 2019 | $ | i 1,310 | $ | i 1,046 | $ | i 2,356 | |||||
Net
loss | — | ( i 18 | ) | ( i 18 | ) | ||||||
Balance
at September 30, 2019 | $ | i 1,310 | $ | i 1,028 | $ | i 2,338 | |||||
Nine
Months Ended September 30, 2018 and 2019 | |||||||||||
Common | Retained | Total | |||||||||
(in millions) | Stock | Earnings | Equity | ||||||||
Balance
at December 31, 2017 | $ | i 860 | $ | i 802 | $ | i 1,662 | |||||
Net
income | — | i 81 | i 81 | ||||||||
Contribution
from parent | i 300 | — | i 300 | ||||||||
Balance
at September 30, 2018 | $ | i 1,160 | $ | i 883 | $ | i 2,043 | |||||
Balance
at December 31, 2018 | $ | i 1,160 | $ | i 931 | $ | i 2,091 | |||||
Net
income | — | i 97 | i 97 | ||||||||
Contribution
from parent | i 150 | — | i 150 | ||||||||
Balance
at September 30, 2019 | $ | i 1,310 | $ | i 1,028 | $ | i 2,338 |
FINANCIAL STATEMENTS | ORGANIZATION AND BASIS OF PRESENTATION |
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 | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • |
FINANCIAL STATEMENTS | ORGANIZATION AND
BASIS OF PRESENTATION |
Duke | Duke | ||||||||||||||||||
Duke | Progress | Energy | Duke | Progress | Energy | ||||||||||||||
Energy | Energy | Florida | Energy | Energy | Florida | ||||||||||||||
Current
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | i 379 | $ | i 82 | $ | i 24 | $ | i 442 | $ | i 67 | $ | i 36 | |||||||
Other | i 163 | i 16 | i 16 | i 141 | i 39 | i 39 | |||||||||||||
Other
Noncurrent Assets | |||||||||||||||||||
Other | i 40 | i 38 | — | i 8 | i 6 | — | |||||||||||||
Total
cash, cash equivalents and restricted cash | $ | i 582 | $ | i 136 | $ | i 40 | $ | i 591 | $ | i 112 | $ | i 75 |
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 | $ | i 2,284 | $ | i 749 | $ | i 1,056 | $ | i 710 | $ | i 346 | $ | i 75 | $ | i 325 | $ | i 4 | |||||||||||||||
Coal | i 490 | i 153 | i 172 | i 118 | i 54 | i 12 | i 152 | — | |||||||||||||||||||||||
Natural
gas, oil and other fuel | i 333 | i 41 | i 206 | i 111 | i 95 | i 41 | i 1 | i 43 | |||||||||||||||||||||||
Total
inventory | $ | i 3,107 | $ | i 943 | $ | i 1,434 | $ | i 939 | $ | i 495 | $ | i 128 | $ | i 478 | $ | i 47 |
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 | $ | i 2,238 | $ | i 731 | $ | i 1,049 | $ | i 734 | $ | i 315 | $ | i 84 | $ | i 312 | $ | i 2 | |||||||||||||||
Coal | i 491 | i 175 | i 192 | i 106 | i 86 | i 14 | i 109 | — | |||||||||||||||||||||||
Natural
gas, oil and other fuel | i 355 | i 42 | i 218 | i 114 | i 103 | i 28 | i 1 | i 68 | |||||||||||||||||||||||
Total
inventory | $ | i 3,084 | $ | i 948 | $ | i 1,459 | $ | i 954 | $ | i 504 | $ | i 126 | $ | i 422 | $ | i 70 |
FINANCIAL STATEMENTS | ORGANIZATION AND BASIS OF PRESENTATION |
Practical Expedient | Description |
Package of transition practical expedients (for leases commenced prior to adoption date and must be adopted as a package) | Do not need to 1) reassess whether any expired or existing contracts are/or contain leases, 2)
reassess the lease classification for any expired or existing leases and 3) reassess initial direct costs for any existing leases. |
Short-term lease expedient (elect by class of underlying asset) | Elect as an accounting policy to not apply the recognition requirements to short-term leases by asset class. |
Lease and non-lease components (elect by class of underlying asset) | Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component by asset class. |
Hindsight expedient (when determining lease term) | Elect
to use hindsight to determine the lease term. |
Existing and expired land easements not previously accounted for as leases | Elect to not evaluate existing or expired easements under the new guidance and carry forward current accounting treatment. |
Comparative reporting requirements for initial adoption | Elect to apply transition requirements at adoption date, recognize cumulative effect adjustment to retained earnings in period of adoption and not apply the new requirements to comparative periods, including disclosures. |
Lessor expedient (elect by class of underlying asset) | Elect
as an accounting policy to aggregate non-lease components with the related lease component when specified conditions are met by asset class. Account for the combined component based on its predominant characteristic (revenue or operating lease). |
FINANCIAL
STATEMENTS | BUSINESS SEGMENTS |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities
and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in
millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Total | ||||||||||||||||||||
Unaffiliated
revenues | $ | i 6,569 | $ | i 225 | $ | i 138 | $ | i 6,932 | $ | i 8 | $ | — | $ | i 6,940 | |||||||||||||
Intersegment
revenues | i 8 | i 24 | — | i 32 | i 17 | ( i 49 | ) | — | |||||||||||||||||||
Total
revenues | $ | i 6,577 | $ | i 249 | $ | i 138 | $ | i 6,964 | $ | i 25 | $ | ( i 49 | ) | $ | i 6,940 | ||||||||||||
Segment
income (loss)(a) | $ | i 1,385 | $ | i 26 | $ | i 40 | $ | i 1,451 | $ | ( i 124 | ) | $ | — | $ | i 1,327 | ||||||||||||
Add
back noncontrolling interests(b) | ( i 19 | ) | |||||||||||||||||||||||||
Add
back preferred stock dividend | i 15 | ||||||||||||||||||||||||||
Net
income | $ | i 1,323 | |||||||||||||||||||||||||
Segment
assets | $ | i 133,296 | $ | i 13,424 | $ | i 5,278 | $ | i 151,998 | $ | i 3,734 | $ | i 185 | $ | i 155,917 |
Three
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities
and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in
millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Total | ||||||||||||||||||||
Unaffiliated
revenues | $ | i 6,253 | $ | i 232 | $ | i 127 | $ | i 6,612 | $ | i 16 | $ | — | $ | i 6,628 | |||||||||||||
Intersegment
revenues | i 7 | i 24 | — | i 31 | i 18 | ( i 49 | ) | — | |||||||||||||||||||
Total
revenues | $ | i 6,260 | $ | i 256 | $ | i 127 | $ | i 6,643 | $ | i 34 | $ | ( i 49 | ) | $ | i 6,628 | ||||||||||||
Segment
income (loss)(c)(d)(e) | $ | i 1,167 | $ | i 17 | $ | ( i 62 | ) | $ | i 1,122 | $ | ( i 44 | ) | $ | — | $ | i 1,078 | |||||||||||
Add
back noncontrolling interests | ( i 16 | ) | |||||||||||||||||||||||||
Loss
from discontinued operations, net of tax | i 4 | ||||||||||||||||||||||||||
Net
income | $ | i 1,066 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities
and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in
millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Total | ||||||||||||||||||||
Unaffiliated
revenues | $ | i 17,357 | $ | i 1,239 | $ | i 362 | $ | i 18,958 | $ | i 18 | $ | — | $ | i 18,976 | |||||||||||||
Intersegment
revenues | i 24 | i 72 | — | i 96 | i 53 | ( i 149 | ) | — | |||||||||||||||||||
Total
revenues | $ | i 17,381 | $ | i 1,311 | $ | i 362 | $ | i 19,054 | $ | i 71 | $ | ( i 149 | ) | $ | i 18,976 | ||||||||||||
Segment
income (loss)(a) | $ | i 2,944 | $ | i 292 | $ | i 139 | $ | i 3,375 | $ | ( i 328 | ) | $ | — | $ | i 3,047 | ||||||||||||
Add
back noncontrolling interests(b) | ( i 110 | ) | |||||||||||||||||||||||||
Add
back preferred stock dividend | i 27 | ||||||||||||||||||||||||||
Net
income | $ | i 2,964 |
FINANCIAL
STATEMENTS | BUSINESS SEGMENTS |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||||||
Utilities
and | Utilities and | Commercial | Reportable | ||||||||||||||||||||||||
(in
millions) | Infrastructure | Infrastructure | Renewables | Segments | Other | Eliminations | Total | ||||||||||||||||||||
Unaffiliated
revenues | $ | i 16,783 | $ | i 1,229 | $ | i 347 | $ | i 18,359 | $ | i 47 | $ | — | $ | i 18,406 | |||||||||||||
Intersegment
revenues | i 23 | i 72 | — | i 95 | i 54 | ( i 149 | ) | — | |||||||||||||||||||
Total
revenues | $ | i 16,806 | $ | i 1,301 | $ | i 347 | $ | i 18,454 | $ | i 101 | $ | ( i 149 | ) | $ | i 18,406 | ||||||||||||
Segment
income (loss)(c)(d)(e)(f)(g)(h) | $ | i 2,492 | $ | i 161 | $ | ( i 4 | ) | $ | i 2,649 | $ | ( i 446 | ) | $ | — | $ | i 2,203 | |||||||||||
Add
back noncontrolling interests | ( i 12 | ) | |||||||||||||||||||||||||
Loss
from discontinued operations, net of tax | ( i 1 | ) | |||||||||||||||||||||||||
Net
income | $ | i 2,190 |
(a) | Electric
Utilities and Infrastructure includes a reduction of a prior year impairment at Citrus County CC related to the plant's cost cap. See Note 3 for additional information. |
(b) | Includes the allocation of losses to noncontrolling tax equity members. See Note 1 for additional information. |
(c) | All segments include adjustments of prior year tax estimates related to the Tax Act. |
(d) | Commercial
Renewables includes an impairment charge related to goodwill. |
(e) | Other includes costs to achieve the Piedmont acquisition. |
(f) | Electric Utilities and Infrastructure includes regulatory and legislative charges related to rate case orders, settlements or other actions of regulators or legislative bodies. See Note 3 for additional information. |
(g) | Gas
Utilities and Infrastructure includes an impairment of the investment in Constitution. See Note 3 for additional information. |
(h) | Other includes the loss on the sale of Beckjord described below and a valuation allowance recorded against the AMT credits. |
Three
Months Ended September 30, 2019 | |||||||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||||||
Utilities
and | Utilities and | Reportable | |||||||||||||||||||||
(in
millions) | Infrastructure | Infrastructure | Segments | Other | Eliminations | Total | |||||||||||||||||
Total
revenues | $ | i 408 | $ | i 81 | $ | i 489 | $ | — | $ | — | $ | i 489 | |||||||||||
Segment
income/Net (loss) income | $ | i 62 | $ | i 13 | $ | i 75 | $ | ( i 1 | ) | $ | — | $ | i 74 | ||||||||||
Segment
assets | $ | i 6,107 | $ | i 3,049 | $ | i 9,156 | $ | i 30 | $ | ( i 3 | ) | $ | i 9,183 |
Three
Months Ended September 30, 2018 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities
and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Total | ||||||||||||||
Total
revenues | $ | i 373 | $ | i 84 | $ | i 457 | $ | i 12 | $ | i 469 | |||||||||
Segment
income/Net income | $ | i 85 | $ | i 12 | $ | i 97 | $ | i 3 | $ | i 100 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities
and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Total | ||||||||||||||
Total
revenues | $ | i 1,099 | $ | i 354 | $ | i 1,453 | $ | — | $ | i 1,453 | |||||||||
Segment
income/Net (loss) income | $ | i 129 | $ | i 65 | $ | i 194 | $ | ( i 4 | ) | $ | i 190 |
FINANCIAL
STATEMENTS | BUSINESS SEGMENTS |
Nine Months Ended September 30, 2018 | |||||||||||||||||||
Electric | Gas | Total | |||||||||||||||||
Utilities
and | Utilities and | Reportable | |||||||||||||||||
(in millions) | Infrastructure | Infrastructure | Segments | Other | Total | ||||||||||||||
Total
revenues | $ | i 1,055 | $ | i 361 | $ | i 1,416 | $ | i 36 | $ | i 1,452 | |||||||||
Segment
income/Net (loss) income(a) | $ | i 157 | $ | i 64 | $ | i 221 | $ | ( i 100 | ) | $ | i 121 |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
• | Approval of cancellation of the Lee Nuclear Project, with Duke Energy Carolinas maintaining the Combined Operating License; |
• | Approval of recovery of $ i 125
million (South Carolina retail portion) of Lee Nuclear Project development costs (including AFUDC through December 2017) over a i 12-year period, but denial of a return on the deferred balance of costs; |
• | Approval
of recovery of $ i 96 million of coal ash costs over a five-year period with a return at Duke Energy Carolinas' WACC; |
• | Denial
of recovery of $ i 115 million of certain coal ash costs deemed to be related to the Coal Ash Act and incremental to the federal CCR rule; |
• | Approval
of a $ i 66 million decrease to base rates to reflect the change in ongoing tax expense, primarily the reduction in the federal income tax rate from 35% to 21%; |
• | Approval
of a $ i 45 million decrease through the EDIT Rider to return EDIT resulting from the federal tax rate change and deferred revenues since January 2018 related to the change, to be returned in accordance with the Average Rate Assumption Method (ARAM) for protected EDIT,
over a 20-year period for unprotected EDIT associated with Property, Plant and Equipment, over a five-year period for unprotected EDIT not associated with Property, Plant and Equipment and over a five-year period for the deferred revenues; and |
• | Approval of a $ i 17
million decrease through the EDIT Rider related to reductions in the North Carolina state income tax rate from 6.9% to 2.5% to be returned over a five-year period. |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
• | Approval of recovery of $ i 4 million of coal ash
costs over a five-year period with a return at Duke Energy Progress' WACC; |
• | Denial of recovery of $ i 65
million of certain coal ash costs deemed to be related to the Coal Ash Act and incremental to the federal CCR rule; |
• | Approval of a $ i 17
million decrease to base rates to reflect the change in ongoing tax expense, primarily the reduction in the federal income tax rate from 35% to 21%; |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
• | Approval
of a $ i 12 million decrease through the EDIT Tax Savings Rider resulting from the federal tax rate change and deferred revenues since January 2018 related to the change, to be returned in accordance with ARAM for protected EDIT, over a 20-year period for unprotected
EDIT associated with Property, Plant and Equipment, over a five-year period for unprotected EDIT not associated with Property, Plant and Equipment and over a three-year period for the deferred revenues; and |
• | Approval of a $ i 12
million increase due to the expiration of EDIT related to reductions in the North Carolina state income tax rate from 6.9% to 2.5%. |
FINANCIAL
STATEMENTS | REGULATORY MATTERS |
FINANCIAL
STATEMENTS | REGULATORY MATTERS |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
FINANCIAL STATEMENTS | REGULATORY
MATTERS |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
FINANCIAL
STATEMENTS | REGULATORY MATTERS |
• | An annual increase in revenues of $ i 109
million before consideration of riders associated with federal and state tax reform; |
• | A decrease through a rider mechanism of $ i 23
million per year to return unprotected federal EDIT over a five-year period and deferred revenues related to the federal rate reduction of $ i 37 million to be returned over one year; |
• | A
decrease through a rider mechanism of $ i 21 million per year related to reductions in the North Carolina
state income tax rate to be returned over a three-year period; |
• | An overall cap on net revenue increase of $ i 83 million.
This will impact Piedmont beginning November 1, 2022 only if the company does not file another general rate case in the interim; |
• | Continuation of the IMR mechanism; and |
FINANCIAL STATEMENTS | REGULATORY
MATTERS |
• | Establishment of a new Distribution Integrity Management Program (DIMP) deferral mechanism for average annual pretax operations and maintenance expenses of approximately $ i 11
million. |
FINANCIAL STATEMENTS | REGULATORY MATTERS |
Remaining Net | ||||||
Capacity | Book
Value | |||||
(in MW) | (in millions) | |||||
Duke Energy Carolinas | ||||||
Allen Steam Station Units 1-3(a) | i 585 | $ | i 154 | |||
Duke
Energy Indiana | ||||||
Gallagher Units 2 and 4(b) | i 280 | i 116 | ||||
Gibson
Units 1-5(c) | i 3,132 | i 1,949 | ||||
Cayuga
Units 1-2(c) | i 1,005 | i 974 | ||||
Total
Duke Energy | i 5,002 | $ | i 3,193 |
(a) | Duke
Energy Carolinas will retire Allen Steam Station Units 1 through 3 by December 31, 2024, as part of the resolution of a lawsuit involving alleged New Source Review violations. |
(b) | Duke Energy Indiana committed to either retire or stop burning coal at Gallagher Units 2 and 4 by December 31, 2022, as part of the 2016 settlement of Edwardsport IGCC matters. |
(c) | On
July 1, 2019, Duke Energy Indiana filed its 2018 IRP with the IURC. The 2018 IRP included scenarios evaluating the potential retirement of coal-fired generating units at Gibson and Cayuga. The rate case filed July 2, 2019, includes proposed depreciation rates reflecting retirement dates from 2026 to 2038. |
FINANCIAL
STATEMENTS | COMMITMENTS AND CONTINGENCIES |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Balance
at beginning of period | $ | i 77 | $ | i 11 | $ | i 11 | $ | i 4 | $ | i 6 | $ | i 48 | $ | i 5 | $ | i 2 | |||||||||||||||
Provisions/adjustments | i 30 | i 4 | i 9 | i 3 | i 5 | i 10 | — | i 6 | |||||||||||||||||||||||
Cash
reductions | ( i 35 | ) | ( i 4 | ) | ( i 3 | ) | ( i 2 | ) | ( i 1 | ) | ( i 28 | ) | i — | i — | |||||||||||||||||
Balance
at end of period | $ | i 72 | $ | i 11 | $ | i 17 | $ | i 5 | $ | i 10 | $ | i 30 | $ | i 5 | $ | i 8 |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Balance
at beginning of period | $ | i 81 | $ | i 10 | $ | i 15 | $ | i 3 | $ | i 12 | $ | i 47 | $ | i 5 | $ | i 2 | |||||||||||||||
Provisions/adjustments | i 7 | i 3 | i 2 | i 3 | ( i 1 | ) | i 3 | i 1 | — | ||||||||||||||||||||||
Cash
reductions | ( i 20 | ) | ( i 2 | ) | ( i 5 | ) | ( i 1 | ) | ( i 4 | ) | ( i 12 | ) | ( i 1 | ) | — | ||||||||||||||||
Balance
at end of period | $ | i 68 | $ | i 11 | $ | i 12 | $ | i 5 | $ | i 7 | $ | i 38 | $ | i 5 | $ | i 2 |
(in millions) | |||
Duke Energy | $ | i 49 | |
Duke
Energy Carolinas | i 11 | ||
Duke Energy Ohio | i 31 | ||
Piedmont | i 2 |
FINANCIAL STATEMENTS | COMMITMENTS AND CONTINGENCIES |
FINANCIAL STATEMENTS | COMMITMENTS AND CONTINGENCIES |
FINANCIAL STATEMENTS | COMMITMENTS AND CONTINGENCIES |
(in millions) | |||||||
Reserves
for Legal Matters | |||||||
Duke Energy | $ | i 62 | $ | i 65 | |||
Duke
Energy Carolinas | i 8 | i 9 | |||||
Progress
Energy | i 52 | i 54 | |||||
Duke
Energy Progress | i 13 | i 12 | |||||
Duke
Energy Florida | i 22 | i 24 | |||||
Piedmont | i 1 | i 1 |
As
of January 1, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
ROU
assets | $ | i 1,750 | $ | i 153 | $ | i 863 | $ | i 407 | $ | i 456 | $ | i 23 | $ | i 61 | $ | i 26 | |||||||||||||||
Operating
lease liabilities – current | i 205 | i 28 | i 96 | i 35 | i 61 | i 1 | i 4 | i 4 | |||||||||||||||||||||||
Operating
lease liabilities – noncurrent | i 1,504 | i 127 | i 766 | i 371 | i 395 | i 22 | i 58 | i 25 |
FINANCIAL
STATEMENTS | LEASES |
Three
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Operating
lease expense(a) | $ | i 75 | $ | i 13 | $ | i 39 | $ | i 16 | $ | i 23 | $ | i 3 | $ | i 5 | $ | i 1 | |||||||||||||||
Short-term
lease expense(a) | i 2 | — | — | — | — | — | i 1 | — | |||||||||||||||||||||||
Variable
lease expense(a) | i 27 | i 6 | i 22 | i 21 | i 1 | — | — | — | |||||||||||||||||||||||
Finance
lease expense | |||||||||||||||||||||||||||||||
Amortization
of leased assets(b) | i 28 | i 2 | i 9 | i 1 | i 8 | — | — | — | |||||||||||||||||||||||
Interest
on lease liabilities(c) | i 7 | i 3 | i 12 | i 10 | i 2 | — | — | — | |||||||||||||||||||||||
Total
finance lease expense | i 35 | i 5 | i 21 | i 11 | i 10 | — | — | — | |||||||||||||||||||||||
Total
lease expense | $ | i 139 | $ | i 24 | $ | i 82 | $ | i 48 | $ | i 34 | $ | i 3 | $ | i 6 | $ | i 1 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Operating
lease expense(a) | $ | i 220 | $ | i 36 | $ | i 121 | $ | i 52 | $ | i 69 | $ | i 9 | $ | i 15 | $ | i 4 | |||||||||||||||
Short-term
lease expense(a) | i 15 | i 4 | i 7 | i 3 | i 4 | i 1 | i 2 | — | |||||||||||||||||||||||
Variable
lease expense(a) | i 48 | i 18 | i 29 | i 24 | i 5 | — | — | — | |||||||||||||||||||||||
Finance
lease expense | |||||||||||||||||||||||||||||||
Amortization
of leased assets(b) | i 84 | i 4 | i 17 | i 3 | i 14 | i 1 | — | — | |||||||||||||||||||||||
Interest
on lease liabilities(c) | i 44 | i 10 | i 31 | i 24 | i 7 | — | i 1 | — | |||||||||||||||||||||||
Total
finance lease expense | i 128 | i 14 | i 48 | i 27 | i 21 | i 1 | i 1 | — | |||||||||||||||||||||||
Total
lease expense | $ | i 411 | $ | i 72 | $ | i 205 | $ | i 106 | $ | i 99 | $ | i 11 | $ | i 18 | $ | i 4 |
(a) | Included
in Operations, maintenance and other or, for barges and railcars, Fuel used in electric generation and purchased power on the Condensed Consolidated Statements of Operations. |
(b) | Included in Depreciation and amortization on the Condensed Consolidated Statements of Operations. |
(c) | Included in Interest Expense on the Condensed Consolidated Statements of Operations. |
(in millions) | Year Ended December 31, 2018 | ||
Duke Energy | $ | i 268 | |
Duke
Energy Carolinas | i 49 | ||
Progress Energy | i 143 | ||
Duke
Energy Progress | i 75 | ||
Duke Energy Florida | i 68 | ||
Duke
Energy Ohio | i 13 | ||
Duke Energy Indiana | i 21 | ||
Piedmont | i 11 |
FINANCIAL
STATEMENTS | LEASES |
Twelve
Months Ended September 30, | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
2020 | $ | i 278 | $ | i 32 | $ | i 129 | $ | i 51 | $ | i 78 | $ | i 2 | $ | i 6 | $ | i 5 | |||||||||||||||
2021 | i 220 | i 20 | i 100 | i 45 | i 55 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
2022 | i 201 | i 19 | i 95 | i 40 | i 55 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
2023 | i 192 | i 18 | i 95 | i 41 | i 54 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
2024 | i 179 | i 14 | i 95 | i 41 | i 54 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
Thereafter | i 1,008 | i 60 | i 480 | i 291 | i 189 | i 22 | i 63 | i 6 | |||||||||||||||||||||||
Total
operating lease payments | i 2,078 | i 163 | i 994 | i 509 | i 485 | i 32 | i 85 | i 31 | |||||||||||||||||||||||
Less:
present value discount | ( i 410 | ) | ( i 28 | ) | ( i 185 | ) | ( i 113 | ) | ( i 72 | ) | ( i 10 | ) | ( i 27 | ) | ( i 3 | ) | |||||||||||||||
Total
operating lease liabilities(a) | $ | i 1,668 | $ | i 135 | $ | i 809 | $ | i 396 | $ | i 413 | $ | i 22 | $ | i 58 | $ | i 28 |
(a) | Certain
operating lease payments include renewal options that are reasonably certain to be exercised. |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
2019 | $ | i 239 | $ | i 33 | $ | i 97 | $ | i 49 | $ | i 48 | $ | i 2 | $ | i 6 | $ | i 5 | |||||||||||||||
2020 | i 219 | i 29 | i 90 | i 46 | i 44 | i 2 | i 5 | i 5 | |||||||||||||||||||||||
2021 | i 186 | i 19 | i 79 | i 37 | i 42 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
2022 | i 170 | i 19 | i 76 | i 34 | i 42 | i 2 | i 4 | i 5 | |||||||||||||||||||||||
2023 | i 160 | i 17 | i 77 | i 35 | i 42 | i 2 | i 5 | i 6 | |||||||||||||||||||||||
Thereafter | i 1,017 | i 68 | i 455 | i 314 | i 141 | i 23 | i 66 | i 11 | |||||||||||||||||||||||
Total | $ | i 1,991 | $ | i 185 | $ | i 874 | $ | i 515 | $ | i 359 | $ | i 33 | $ | i 90 | $ | i 37 |
Twelve Months Ended September 30, | |||||||||||||||||||||||
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Indiana | |||||||||||||||||
2020 | $ | i 179 | $ | i 19 | $ | i 69 | $ | i 44 | $ | i 25 | $ | i 1 | |||||||||||
2021 | i 184 | i 16 | i 69 | i 44 | i 25 | i 1 | |||||||||||||||||
2022 | i 177 | i 14 | i 69 | i 44 | i 25 | i 1 | |||||||||||||||||
2023 | i 173 | i 14 | i 69 | i 44 | i 25 | i 1 | |||||||||||||||||
2024 | i 149 | i 14 | i 57 | i 44 | i 13 | i 1 | |||||||||||||||||
Thereafter | i 827 | i 189 | i 552 | i 539 | i 13 | i 27 | |||||||||||||||||
Total
finance lease payments | i 1,689 | i 266 | i 885 | i 759 | i 126 | i 32 | |||||||||||||||||
Less:
amounts representing interest | ( i 699 | ) | ( i 160 | ) | ( i 477 | ) | ( i 451 | ) | ( i 26 | ) | ( i 22 | ) | |||||||||||
Total
finance lease liabilities | $ | i 990 | $ | i 106 | $ | i 408 | $ | i 308 | $ | i 100 | $ | i 10 |
FINANCIAL
STATEMENTS | LEASES |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | ||||||||||||||||||||
2019 | $ | i 170 | $ | i 20 | $ | i 45 | $ | i 20 | $ | i 25 | $ | i 2 | $ | i 1 | |||||||||||||
2020 | i 174 | i 20 | i 46 | i 21 | i 25 | — | i 1 | ||||||||||||||||||||
2021 | i 177 | i 15 | i 45 | i 20 | i 25 | — | i 1 | ||||||||||||||||||||
2022 | i 165 | i 15 | i 45 | i 21 | i 24 | — | i 1 | ||||||||||||||||||||
2023 | i 165 | i 15 | i 45 | i 21 | i 24 | — | i 1 | ||||||||||||||||||||
Thereafter | i 577 | i 204 | i 230 | i 209 | i 21 | — | i 27 | ||||||||||||||||||||
Minimum
annual payments | i 1,428 | i 289 | i 456 | i 312 | i 144 | i 2 | i 32 | ||||||||||||||||||||
Less:
amount representing interest | ( i 487 | ) | ( i 180 | ) | ( i 205 | ) | ( i 175 | ) | ( i 30 | ) | — | ( i 22 | ) | ||||||||||||||
Total | $ | i 941 | $ | i 109 | $ | i 251 | $ | i 137 | $ | i 114 | $ | i 2 | $ | i 10 |
Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||||
(in
millions) | Classification | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Operating | Operating
lease ROU assets, net | $ | i 1,703 | $ | i 135 | $ | i 814 | $ | i 397 | $ | i 417 | $ | i 22 | $ | i 58 | $ | i 25 | |||||||||||||||
Finance | Net
property, plant and equipment | i 952 | i 125 | i 448 | i 309 | i 139 | — | i 10 | — | |||||||||||||||||||||||
Total
lease assets | $ | i 2,655 | $ | i 260 | $ | i 1,262 | $ | i 706 | $ | i 556 | $ | i 22 | $ | i 68 | $ | i 25 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||
Operating | Other
current liabilities | $ | i 212 | $ | i 27 | $ | i 99 | $ | i 36 | $ | i 63 | $ | i 1 | $ | i 3 | $ | i 4 | |||||||||||||||
Finance | Current
maturities of long-term debt | i 117 | i 6 | i 23 | i 6 | i 17 | — | — | — | |||||||||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Operating | Operating
lease liabilities | i 1,456 | i 108 | i 710 | i 360 | i 350 | i 21 | i 55 | i 24 | |||||||||||||||||||||||
Finance | Long-Term
Debt | i 873 | i 100 | i 385 | i 302 | i 83 | — | i 10 | — | |||||||||||||||||||||||
Total
lease liabilities | $ | i 2,658 | $ | i 241 | $ | i 1,217 | $ | i 704 | $ | i 513 | $ | i 22 | $ | i 68 | $ | i 28 |
FINANCIAL
STATEMENTS | LEASES |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Cash
paid for amounts included in the measurement of lease liabilities(a) | |||||||||||||||||||||||||||||||
Operating
cash flows from operating leases | $ | i 221 | $ | i 26 | $ | i 104 | $ | i 43 | $ | i 61 | $ | i 1 | $ | i 5 | $ | i 6 | |||||||||||||||
Operating
cash flows from finance leases | i 44 | i 10 | i 31 | i 24 | i 7 | — | i 1 | — | |||||||||||||||||||||||
Financing
cash flows from finance leases | i 84 | i 4 | i 17 | i 3 | i 14 | i 1 | — | — | |||||||||||||||||||||||
Lease
assets obtained in exchange for new lease liabilities (non-cash) | |||||||||||||||||||||||||||||||
Operating(b) | $ | i 147 | $ | i 44 | $ | i 30 | $ | i 30 | $ | — | $ | — | $ | — | $ | i 1 | |||||||||||||||
Finance | i 175 | — | i 175 | i 175 | — | — | — | — |
(a) | No
amounts were classified as investing cash flows from operating leases for the nine months ended September 30, 2019. |
(b) | Does not include ROU assets recorded as a result of the adoption of the new lease standard. |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||
Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||
Weighted-average
remaining lease term (years) | |||||||||||||||||||||||
Operating
leases | i 11 | i 9 | i 10 | i 12 | i 8 | i 18 | i 18 | i 6 | |||||||||||||||
Finance
leases | i 13 | i 18 | i 16 | i 18 | i 11 | — | i 27 | — | |||||||||||||||
Weighted-average
discount rate(a) | |||||||||||||||||||||||
Operating
leases | i 3.9 | % | i 3.5 | % | i 3.8 | % | i 3.9 | % | i 3.8 | % | i 4.3 | % | i 4.1 | % | i 3.6 | % | |||||||
Finance
leases | i 8.0 | % | i 12.9 | % | i 11.8 | % | i 12.4 | % | i 8.3 | % | — | % | i 11.9 | % | — | % |
(a) | The
discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets. |
FINANCIAL
STATEMENTS | DEBT AND CREDIT FACILITIES |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Maturity | Interest | Duke | Energy | Energy | Energy | Energy | Energy | ||||||||||||||||||||||||
Issuance
Date | Date | Rate | Energy | (Parent) | Carolinas | Progress | Ohio | Indiana | Piedmont | ||||||||||||||||||||||
Unsecured
Debt | |||||||||||||||||||||||||||||||
March
2019(a) | March 2022 | i 2.788 | % | (b) | $ | i 300 | $ | i 300 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
March
2019(a) | March 2022 | i 3.227 | % | i 300 | i 300 | — | — | — | — | — | |||||||||||||||||||||
May
2019(e) | June 2029 | i 3.500 | % | i 600 | — | — | — | — | — | i 600 | |||||||||||||||||||||
June
2019(a) | June 2029 | i 3.400 | % | i 600 | i 600 | — | — | — | — | — | |||||||||||||||||||||
June
2019(a) | June 2049 | i 4.200 | % | i 600 | i 600 | — | — | — | — | — | |||||||||||||||||||||
July
2019(g) | July 2049 | i 4.320 | % | i 40 | — | — | — | i 40 | — | — | |||||||||||||||||||||
September
2019(g) | October 2025 | i 3.230 | % | i 95 | — | — | — | i 95 | — | — | |||||||||||||||||||||
September
2019(g) | October 2029 | i 3.560 | % | i 75 | — | — | — | i 75 | — | — | |||||||||||||||||||||
First
Mortgage Bonds | |||||||||||||||||||||||||||||||
January
2019(c) | February 2029 | i 3.650 | % | i 400 | — | — | — | i 400 | — | — | |||||||||||||||||||||
January
2019(c) | February 2049 | i 4.300 | % | i 400 | — | — | — | i 400 | — | — | |||||||||||||||||||||
March
2019(d) | March 2029 | i 3.450 | % | i 600 | — | — | i 600 | — | — | — | |||||||||||||||||||||
August
2019(a) | August 2029 | i 2.450 | % | i 450 | — | i 450 | — | — | — | — | |||||||||||||||||||||
August
2019(a) | August 2049 | i 3.200 | % | i 350 | — | i 350 | — | — | — | — | |||||||||||||||||||||
September
2019(f) | October 2049 | i 3.250 | % | i 500 | — | — | — | — | i 500 | — | |||||||||||||||||||||
Total
issuances | $ | i 5,310 | $ | i 1,800 | $ | i 800 | $ | i 600 | $ | i 1,010 | $ | i 500 | $ | i 600 |
(a) | Debt
issued to pay down short-term debt and for general corporate purposes. |
(b) | Debt issuance has a floating interest rate. |
(c) | Debt issued to repay at maturity $ i 450
million first mortgage bonds due April 2019, pay down short-term debt and for general corporate purposes. |
(d) | Debt issued to fund eligible green energy projects in the Carolinas. |
(e) | Debt issued to repay in full the outstanding $ i 350
million Piedmont unsecured term loan due September 2019, pay down short-term debt and for general corporate purposes. |
(f) | Debt issued to retire $ i 150 million of pollution control bonds,
pay down short-term debt and for general corporate purposes. |
(g) | Debt issued to repay at maturity $ i 100 million debentures due October 2019, pay down short-term debt and for general corporate purposes. |
FINANCIAL
STATEMENTS | DEBT AND CREDIT FACILITIES |
(in
millions) | Maturity Date | Interest Rate | ||||||
Unsecured Debt | ||||||||
Duke
Energy Kentucky | October 2019 | i 4.650 | % | $ | i 100 | |||
Progress
Energy | December 2019 | i 4.875 | % | i 350 | ||||
Duke
Energy (Parent) | June 2020 | i 2.100 | % | i 330 | ||||
First
Mortgage Bonds | ||||||||
Duke Energy Florida | January 2020 | i 1.850 | % | i 250 | ||||
Duke
Energy Florida | April 2020 | i 4.550 | % | i 250 | ||||
Duke
Energy Carolinas | June 2020 | i 4.300 | % | i 450 | ||||
Duke
Energy Indiana | July 2020 | i 3.750 | % | i 500 | ||||
Duke
Energy Progress | September 2020 | i 2.282 | % | (a) | i 300 | |||
Other(b) | i 566 | |||||||
Current
maturities of long-term debt | $ | i 3,096 |
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) | $ | i 8,000 | $ | i 2,650 | $ | i 1,750 | $ | i 1,250 | $ | i 800 | $ | i 450 | $ | i 600 | $ | i 500 | |||||||||||||||
Reduction
to backstop issuances | |||||||||||||||||||||||||||||||
Commercial
paper(b) | ( i 1,971 | ) | ( i 627 | ) | ( i 338 | ) | ( i 211 | ) | ( i 277 | ) | ( i 164 | ) | ( i 150 | ) | ( i 204 | ) | |||||||||||||||
Outstanding
letters of credit | ( i 51 | ) | ( i 43 | ) | ( i 4 | ) | ( i 2 | ) | — | — | — | ( i 2 | ) | ||||||||||||||||||
Tax-exempt
bonds | ( i 81 | ) | — | — | — | — | — | ( i 81 | ) | — | |||||||||||||||||||||
Coal
ash set-aside | ( i 500 | ) | — | ( i 250 | ) | ( i 250 | ) | — | — | — | — | ||||||||||||||||||||
Available
capacity under the Master Credit Facility | $ | i 5,397 | $ | i 1,980 | $ | i 1,158 | $ | i 787 | $ | i 523 | $ | i 286 | $ | i 369 | $ | i 294 |
(a) | Represents
the sublimit of each borrower. |
(b) | Duke Energy issued $ i 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. |
FINANCIAL STATEMENTS | DEBT AND CREDIT FACILITIES |
(in millions) | Facility size | Amount drawn | |||||
Duke
Energy (Parent) Three-Year Revolving Credit Facility(a) | $ | i 1,000 | $ | i 500 | |||
Duke
Energy Progress Term Loan Facility | i 700 | i 700 |
(a) | In
May 2019, Duke Energy (Parent) extended the termination date to May 2022. |
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(a) | $ | i 5,789 | $ | i 2,435 | $ | i 3,295 | $ | i 2,769 | $ | i 526 | $ | — | $ | — | $ | — | |||||||||||||||
Closure
of ash impoundments | i 6,486 | i 2,917 | i 2,722 | i 2,707 | i 15 | i 43 | i 804 | — | |||||||||||||||||||||||
Other | i 326 | i 46 | i 71 | i 38 | i 33 | i 42 | i 20 | i 20 | |||||||||||||||||||||||
Total
ARO | $ | i 12,601 | $ | i 5,398 | $ | i 6,088 | $ | i 5,514 | $ | i 574 | $ | i 85 | $ | i 824 | $ | i 20 | |||||||||||||||
Less:
current portion | i 861 | i 214 | i 478 | i 476 | i 2 | i 3 | i 165 | — | |||||||||||||||||||||||
Total
noncurrent ARO | $ | i 11,740 | $ | i 5,184 | $ | i 5,610 | $ | i 5,038 | $ | i 572 | $ | i 82 | $ | i 659 | $ | i 20 |
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, 2018(a) | $ | i 10,467 | $ | i 3,949 | $ | i 5,411 | $ | i 4,820 | $ | i 591 | $ | i 93 | $ | i 722 | $ | i 19 | |||||||||||||||
Accretion
expense(b) | i 377 | i 173 | i 190 | i 171 | i 19 | i 3 | i 21 | i 1 | |||||||||||||||||||||||
Liabilities
settled(c) | ( i 691 | ) | ( i 276 | ) | ( i 375 | ) | ( i 341 | ) | ( i 34 | ) | ( i 9 | ) | ( i 32 | ) | — | ||||||||||||||||
Revisions
in estimates of cash flows(d) | i 2,448 | i 1,552 | i 862 | i 864 | ( i 2 | ) | ( i 2 | ) | i 113 | — | |||||||||||||||||||||
Balance
at September 30, 2019 | $ | i 12,601 | $ | i 5,398 | $ | i 6,088 | $ | i 5,514 | $ | i 574 | $ | i 85 | $ | i 824 | $ | i 20 |
(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, 2019, 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. |
(d) | Primarily relates to increases in closure estimates for certain ash impoundments as a result of the NCDEQ's April 1 Order. See Note 4 for more information. The incremental amount recorded represents the discounted cash flows for estimated closure costs based upon the probability weightings of the potential closure methods as evaluated on a site-by-site basis. |
FINANCIAL STATEMENTS | ASSET RETIREMENT OBLIGATIONS |
(in
millions) | |||||||
Duke Energy | $ | i 6,403 | $ | i 5,579 | |||
Duke
Energy Carolinas | i 3,614 | i 3,133 | |||||
Duke
Energy Progress | i 2,789 | i 2,446 |
Electric Utilities | Gas
Utilities | Commercial | |||||||||||||
(in millions) | and Infrastructure | and Infrastructure | Renewables | Total | |||||||||||
Goodwill
balance | $ | i 17,379 | $ | i 1,924 | $ | i 122 | $ | i 19,425 | |||||||
Accumulated
impairment charges | — | — | ( i 122 | ) | ( i 122 | ) | |||||||||
Goodwill,
adjusted for accumulated impairment charges | $ | i 17,379 | $ | i 1,924 | $ | — | $ | i 19,303 |
FINANCIAL
STATEMENTS | RELATED PARTY TRANSACTIONS |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Duke Energy Carolinas | |||||||||||||||
Corporate
governance and shared service expenses(a) | $ | i 197 | $ | i 214 | $ | i 606 | $ | i 647 | |||||||
Indemnification
coverages(b) | i 5 | i 6 | i 15 | i 17 | |||||||||||
JDA
revenue(c) | i 12 | i 13 | i 52 | i 66 | |||||||||||
JDA
expense(c) | i 32 | i 61 | i 145 | i 134 | |||||||||||
Intercompany
natural gas purchases(d) | — | i 3 | i 7 | i 11 | |||||||||||
Progress
Energy | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | i 194 | $ | i 216 | $ | i 553 | $ | i 613 | |||||||
Indemnification
coverages(b) | i 8 | i 8 | i 27 | i 25 | |||||||||||
JDA
revenue(c) | i 32 | i 61 | i 145 | i 134 | |||||||||||
JDA
expense(c) | i 12 | i 13 | i 52 | i 66 | |||||||||||
Intercompany
natural gas purchases(d) | i 19 | i 20 | i 57 | i 58 | |||||||||||
Duke
Energy Progress | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | i 114 | $ | i 138 | $ | i 328 | $ | i 382 | |||||||
Indemnification
coverages(b) | i 3 | i 3 | i 11 | i 9 | |||||||||||
JDA
revenue(c) | i 32 | i 61 | i 145 | i 134 | |||||||||||
JDA
expense(c) | i 12 | i 13 | i 52 | i 66 | |||||||||||
Intercompany
natural gas purchases(d) | i 19 | i 20 | i 57 | i 58 | |||||||||||
Duke
Energy Florida | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | i 80 | $ | i 78 | $ | i 225 | $ | i 231 | |||||||
Indemnification
coverages(b) | i 5 | i 5 | i 16 | i 16 | |||||||||||
Duke
Energy Ohio | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | i 90 | $ | i 85 | $ | i 258 | $ | i 264 | |||||||
Indemnification
coverages(b) | i 1 | i 1 | i 3 | i 3 | |||||||||||
Duke
Energy Indiana | |||||||||||||||
Corporate governance and shared service expenses(a) | $ | i 109 | $ | i 105 | $ | i 299 | $ | i 302 | |||||||
Indemnification
coverages(b) | i 2 | i 2 | i 5 | i 6 | |||||||||||
Piedmont | |||||||||||||||
Corporate
governance and shared service expenses(a) | $ | i 33 | $ | i 39 | $ | i 102 | $ | i 115 | |||||||
Indemnification
coverages(b) | i 1 | i 1 | i 2 | i 2 | |||||||||||
Intercompany
natural gas sales(d) | i 19 | i 23 | i 64 | i 69 | |||||||||||
Natural
gas storage and transportation costs(e) | i 6 | i 6 | i 17 | i 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 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, Hardy Storage, and Cardinal 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. |
FINANCIAL
STATEMENTS | RELATED PARTY TRANSACTIONS |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||
Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||
(in
millions) | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||
Intercompany
income tax receivable | $ | — | $ | i 178 | $ | i 60 | $ | i 10 | $ | i 14 | $ | i 3 | $ | i 85 | |||||||
Intercompany
income tax payable | i 71 | — | — | — | — | — | — | ||||||||||||||
Intercompany
income tax receivable | $ | i 52 | $ | i 47 | $ | i 29 | $ | — | $ | — | $ | i 8 | $ | — | |||||||
Intercompany
income tax payable | — | — | — | i 16 | i 3 | — | i 45 |
FINANCIAL
STATEMENTS | DERIVATIVES AND HEDGING |
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | |||||||||||||||||
Cash
flow hedges | $ | i 1,031 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Undesignated
contracts | i 1,577 | i 450 | i 1,100 | i 250 | i 850 | i 27 | |||||||||||||||||
Total
notional amount(a) | $ | i 2,608 | $ | i 450 | $ | i 1,100 | $ | i 250 | $ | i 850 | $ | i 27 |
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | |||||||||||||||||
Cash
flow hedges | $ | i 923 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Undesignated
contracts | i 1,721 | i 300 | i 1,200 | i 650 | i 550 | i 27 | |||||||||||||||||
Total
notional amount(a) | $ | i 2,644 | $ | i 300 | $ | i 1,200 | $ | i 650 | $ | i 550 | $ | i 27 |
(a) | Duke
Energy includes amounts related to consolidated VIEs of $ i 731 million in cash flow hedges as of September 30, 2019, and $ i 422
million in cash flow hedges and $ i 194 million in undesignated contracts as of December 31, 2018. |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||
Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||
Electricity
(GWh) | i 25,658 | — | — | — | — | i 2,774 | i 22,884 | — | |||||||||||||||
Natural
gas (millions of dekatherms) | i 729 | i 130 | i 175 | i 175 | — | — | i 4 | i 420 |
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||
Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||
Electricity
(GWh) | i 15,286 | — | — | — | — | i 1,786 | i 13,500 | — | |||||||||||||||
Natural
gas (millions of dekatherms) | i 739 | i 121 | i 169 | i 166 | i 3 | — | i 1 | i 448 |
FINANCIAL STATEMENTS | DERIVATIVES AND HEDGING |
Derivative
Assets | ||||||||||||||||||||||||||||||||
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 | $ | i 23 | $ | — | $ | — | $ | — | $ | — | $ | i 5 | $ | i 16 | $ | i 2 | ||||||||||||||||
Total
Derivative Assets – Commodity Contracts | $ | i 23 | $ | — | $ | — | $ | — | $ | — | $ | i 5 | $ | i 16 | $ | i 2 | ||||||||||||||||
Interest
Rate Contracts | ||||||||||||||||||||||||||||||||
Designated
as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | i 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Total
Derivative Assets – Interest Rate Contracts | $ | i 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Equity
Securities Contracts | ||||||||||||||||||||||||||||||||
Not
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | i 5 | — | i 5 | — | i 5 | — | — | — | ||||||||||||||||||||||||
Total
Derivative Assets – Equity Securities Contracts | $ | i 5 | $ | — | $ | i 5 | $ | — | $ | i 5 | $ | — | $ | — | $ | — | ||||||||||||||||
Total
Derivative Assets | $ | i 31 | $ | — | $ | i 5 | $ | — | $ | i 5 | $ | i 5 | $ | i 16 | $ | i 2 |
Derivative
Liabilities | ||||||||||||||||||||||||||||||||
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 | $ | i 66 | $ | i 33 | $ | i 24 | $ | i 24 | $ | — | $ | — | $ | — | $ | i 9 | ||||||||||||||||
Noncurrent | i 147 | i 12 | i 34 | i 18 | — | — | — | i 102 | ||||||||||||||||||||||||
Total
Derivative Liabilities – Commodity Contracts | $ | i 213 | $ | i 45 | $ | i 58 | $ | i 42 | $ | — | $ | — | $ | — | $ | i 111 | ||||||||||||||||
Interest
Rate Contracts | ||||||||||||||||||||||||||||||||
Designated
as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | i 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Noncurrent | i 56 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Not
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | i 64 | i 22 | i 42 | i 1 | i 41 | i 1 | — | — | ||||||||||||||||||||||||
Noncurrent | i 8 | — | i 3 | — | i 3 | i 5 | — | — | ||||||||||||||||||||||||
Total
Derivative Liabilities – Interest Rate Contracts | $ | i 130 | $ | i 22 | $ | i 45 | $ | i 1 | $ | i 44 | $ | i 6 | $ | — | $ | — | ||||||||||||||||
Equity
Securities Contracts | ||||||||||||||||||||||||||||||||
Not
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | i 10 | — | i 10 | — | i 10 | — | — | — | ||||||||||||||||||||||||
Total
Derivative Liabilities – Equity Securities Contracts | $ | i 10 | $ | — | $ | i 10 | $ | — | $ | i 10 | $ | — | $ | — | $ | — | ||||||||||||||||
Total
Derivative Liabilities | $ | i 353 | $ | i 67 | $ | i 113 | $ | i 43 | $ | i 54 | $ | i 6 | $ | — | $ | i 111 |
FINANCIAL
STATEMENTS | DERIVATIVES AND HEDGING |
Derivative
Assets | ||||||||||||||||||||||||||||||||
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 | $ | i 35 | $ | i 2 | $ | i 2 | $ | i 2 | $ | — | $ | i 6 | $ | i 23 | $ | i 3 | ||||||||||||||||
Noncurrent | i 4 | i 1 | i 2 | i 2 | — | — | — | — | ||||||||||||||||||||||||
Total
Derivative Assets – Commodity Contracts | $ | i 39 | $ | i 3 | $ | i 4 | $ | i 4 | $ | — | $ | i 6 | $ | i 23 | $ | i 3 | ||||||||||||||||
Interest
Rate Contracts | ||||||||||||||||||||||||||||||||
Designated
as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | i 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Noncurrent | i 3 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Not
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | i 2 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Noncurrent | i 12 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total
Derivative Assets – Interest Rate Contracts | $ | i 18 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Total
Derivative Assets | $ | i 57 | $ | i 3 | $ | i 4 | $ | i 4 | $ | — | $ | i 6 | $ | i 23 | $ | i 3 |
Derivative
Liabilities | ||||||||||||||||||||||||||||||||
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 | $ | i 33 | $ | i 14 | $ | i 10 | $ | i 5 | $ | i 6 | $ | — | $ | — | $ | i 8 | ||||||||||||||||
Noncurrent | i 158 | i 10 | i 15 | i 6 | — | — | — | i 133 | ||||||||||||||||||||||||
Total
Derivative Liabilities – Commodity Contracts | $ | i 191 | $ | i 24 | $ | i 25 | $ | i 11 | $ | i 6 | $ | — | $ | — | $ | i 141 | ||||||||||||||||
Interest
Rate Contracts | ||||||||||||||||||||||||||||||||
Designated
as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | $ | i 12 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Noncurrent | i 6 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Not
Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Current | i 23 | i 9 | i 13 | i 11 | i 2 | i 1 | — | — | ||||||||||||||||||||||||
Noncurrent | i 10 | — | i 6 | i 5 | i 1 | i 4 | — | — | ||||||||||||||||||||||||
Total
Derivative Liabilities – Interest Rate Contracts | $ | i 51 | $ | i 9 | $ | i 19 | $ | i 16 | $ | i 3 | $ | i 5 | $ | — | $ | — | ||||||||||||||||
Total
Derivative Liabilities | $ | i 242 | $ | i 33 | $ | i 44 | $ | i 27 | $ | i 9 | $ | i 5 | $ | — | $ | i 141 |
FINANCIAL
STATEMENTS | DERIVATIVES AND HEDGING |
Derivative
Assets | ||||||||||||||||||||||||||||||||
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 | $ | i 31 | $ | — | $ | i 5 | $ | — | $ | i 5 | $ | i 5 | $ | i 16 | $ | i 2 | ||||||||||||||||
Gross
amounts offset | ( i 5 | ) | — | ( i 5 | ) | — | ( i 5 | ) | — | — | — | |||||||||||||||||||||
Net
amounts presented in Current Assets: Other | $ | i 26 | $ | — | $ | — | $ | — | $ | — | $ | i 5 | $ | i 16 | $ | i 2 |
Derivative
Liabilities | ||||||||||||||||||||||||||||||||
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 | $ | i 142 | $ | i 55 | $ | i 76 | $ | i 25 | $ | i 51 | $ | i 1 | $ | — | $ | i 9 | ||||||||||||||||
Gross
amounts offset | ( i 10 | ) | — | ( i 10 | ) | — | ( i 10 | ) | — | — | — | |||||||||||||||||||||
Net
amounts presented in Current Liabilities: Other | $ | i 132 | $ | i 55 | $ | i 66 | $ | i 25 | $ | i 41 | $ | i 1 | $ | — | $ | i 9 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross
amounts recognized | $ | i 211 | $ | i 12 | $ | i 37 | $ | i 18 | $ | i 3 | $ | i 5 | $ | — | $ | i 102 | ||||||||||||||||
Gross
amounts offset | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net
amounts presented in Other Noncurrent Liabilities: Other | $ | i 211 | $ | i 12 | $ | i 37 | $ | i 18 | $ | i 3 | $ | i 5 | $ | — | $ | i 102 |
Derivative
Assets | ||||||||||||||||||||||||||||||||
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 | $ | i 38 | $ | i 2 | $ | i 2 | $ | i 2 | $ | — | $ | i 6 | $ | i 23 | $ | i 3 | ||||||||||||||||
Gross
amounts offset | ( i 3 | ) | ( i 2 | ) | ( i 2 | ) | ( i 2 | ) | — | — | — | — | ||||||||||||||||||||
Net
amounts presented in Current Assets: Other | $ | i 35 | $ | — | $ | — | $ | — | $ | — | $ | i 6 | $ | i 23 | $ | i 3 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross
amounts recognized | $ | i 19 | $ | i 1 | $ | i 2 | $ | i 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Gross
amounts offset | ( i 3 | ) | ( i 1 | ) | ( i 2 | ) | ( i 2 | ) | — | — | — | — | ||||||||||||||||||||
Net
amounts presented in Other Noncurrent Assets: Other | $ | i 16 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
FINANCIAL
STATEMENTS | DERIVATIVES AND HEDGING |
Derivative
Liabilities | ||||||||||||||||||||||||||||||||
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 | $ | i 68 | $ | i 23 | $ | i 23 | $ | i 16 | $ | i 8 | $ | i 1 | $ | — | $ | i 8 | ||||||||||||||||
Gross
amounts offset | ( i 4 | ) | ( i 2 | ) | ( i 2 | ) | ( i 2 | ) | — | — | — | — | ||||||||||||||||||||
Net
amounts presented in Current Liabilities: Other | $ | i 64 | $ | i 21 | $ | i 21 | $ | i 14 | $ | i 8 | $ | i 1 | $ | — | $ | i 8 | ||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||||||||
Gross
amounts recognized | $ | i 174 | $ | i 10 | $ | i 21 | $ | i 11 | $ | i 1 | $ | i 4 | $ | — | $ | i 133 | ||||||||||||||||
Gross
amounts offset | ( i 3 | ) | ( i 1 | ) | ( i 2 | ) | ( i 2 | ) | — | — | — | — | ||||||||||||||||||||
Net
amounts presented in Other Noncurrent Liabilities: Other | $ | i 171 | $ | i 9 | $ | i 19 | $ | i 9 | $ | i 1 | $ | i 4 | $ | — | $ | i 133 |
Duke | Duke | ||||||||||||||
Duke | Energy | Progress | Energy | ||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | |||||||||||
Aggregate fair value of derivatives in a net liability position | $ | i 82 | $ | i 40 | $ | i 42 | $ | i 42 | |||||||
Fair
value of collateral already posted | — | — | — | — | |||||||||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features
were triggered | i 82 | i 40 | i 42 | i 42 |
Duke | Duke | ||||||||||||||
Duke | Energy | Progress | Energy | ||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | |||||||||||
Aggregate fair value of derivatives in a net liability position | $ | i 44 | $ | i 19 | $ | i 25 | $ | i 25 | |||||||
Fair
value of collateral already posted | — | — | — | — | |||||||||||
Additional cash collateral or letters of credit in the event credit-risk-related contingent features
were triggered | i 44 | i 19 | i 25 | i 25 |
FINANCIAL STATEMENTS | INVESTMENTS IN DEBT AND EQUITY SECURITIES |
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 | $ | — | $ | — | $ | i 114 | $ | — | $ | — | $ | i 88 | |||||||||||
Equity
securities | i 3,118 | i 63 | i 5,222 | i 2,402 | i 95 | i 4,475 | |||||||||||||||||
Corporate
debt securities | i 40 | i 1 | i 633 | i 4 | i 13 | i 566 | |||||||||||||||||
Municipal
bonds | i 14 | — | i 370 | i 1 | i 4 | i 353 | |||||||||||||||||
U.S.
government bonds | i 39 | — | i 1,217 | i 14 | i 12 | i 1,076 | |||||||||||||||||
Other
debt securities | i 4 | — | i 142 | — | i 2 | i 148 | |||||||||||||||||
Total
NDTF Investments | $ | i 3,215 | $ | i 64 | $ | i 7,698 | $ | i 2,421 | $ | i 126 | $ | i 6,706 | |||||||||||
Other
Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | i 53 | $ | — | $ | — | $ | i 22 | |||||||||||
Equity
securities | i 48 | — | i 112 | i 36 | i 1 | i 99 | |||||||||||||||||
Corporate
debt securities | i 2 | — | i 72 | — | i 2 | i 60 | |||||||||||||||||
Municipal
bonds | i 5 | — | i 94 | — | i 1 | i 85 | |||||||||||||||||
U.S.
government bonds | i 3 | — | i 40 | i 1 | — | i 45 | |||||||||||||||||
Other
debt securities | i 1 | — | i 65 | — | i 1 | i 58 | |||||||||||||||||
Total
Other Investments | $ | i 59 | $ | — | $ | i 436 | $ | i 37 | $ | i 5 | $ | i 369 | |||||||||||
Total
Investments | $ | i 3,274 | $ | i 64 | $ | i 8,134 | $ | i 2,458 | $ | i 131 | $ | i 7,075 |
Three Months Ended | Nine
Months Ended | ||||||||||||||
(in millions) | |||||||||||||||
FV-NI: | |||||||||||||||
Realized
gains | $ | i 60 | $ | i 19 | $ | i 161 | $ | i 85 | |||||||
Realized
losses | i 43 | i 16 | i 136 | i 60 | |||||||||||
AFS: | |||||||||||||||
Realized
gains | i 53 | i 4 | i 110 | i 14 | |||||||||||
Realized
losses | i 36 | i 7 | i 83 | i 32 |
FINANCIAL
STATEMENTS | INVESTMENTS IN DEBT AND EQUITY SECURITIES |
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 | $ | — | $ | — | $ | i 36 | $ | — | $ | — | $ | i 29 | |||||||||||
Equity
securities | i 1,680 | i 15 | i 2,901 | i 1,309 | i 54 | i 2,484 | |||||||||||||||||
Corporate
debt securities | i 24 | i 1 | i 409 | i 2 | i 9 | i 341 | |||||||||||||||||
Municipal
bonds | i 4 | — | i 96 | — | i 1 | i 81 | |||||||||||||||||
U.S.
government bonds | i 19 | — | i 517 | i 5 | i 8 | i 475 | |||||||||||||||||
Other
debt securities | i 4 | — | i 137 | — | i 2 | i 143 | |||||||||||||||||
Total
NDTF Investments | $ | i 1,731 | $ | i 16 | $ | i 4,096 | $ | i 1,316 | $ | i 74 | $ | i 3,553 |
Three Months Ended | Nine
Months Ended | ||||||||||||||
(in millions) | |||||||||||||||
FV-NI: | |||||||||||||||
Realized
gains | $ | i 34 | $ | i 11 | $ | i 101 | $ | i 47 | |||||||
Realized
losses | i 26 | i 8 | i 95 | i 30 | |||||||||||
AFS: | |||||||||||||||
Realized
gains | i 21 | i 4 | i 46 | i 13 | |||||||||||
Realized
losses | i 13 | i 6 | i 34 | i 24 |
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 | $ | — | $ | — | $ | i 78 | $ | — | $ | — | $ | i 59 | |||||||||||
Equity
securities | i 1,438 | i 48 | i 2,321 | i 1,093 | i 41 | i 1,991 | |||||||||||||||||
Corporate
debt securities | i 16 | — | i 224 | i 2 | i 4 | i 225 | |||||||||||||||||
Municipal
bonds | i 10 | — | i 274 | i 1 | i 3 | i 272 | |||||||||||||||||
U.S.
government bonds | i 20 | — | i 700 | i 9 | i 4 | i 601 | |||||||||||||||||
Other
debt securities | — | — | i 5 | — | — | i 5 | |||||||||||||||||
Total
NDTF Investments | $ | i 1,484 | $ | i 48 | $ | i 3,602 | $ | i 1,105 | $ | i 52 | $ | i 3,153 | |||||||||||
Other
Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | i 49 | $ | — | $ | — | $ | i 17 | |||||||||||
Municipal
bonds | i 4 | — | i 52 | — | — | i 47 | |||||||||||||||||
Total
Other Investments | $ | i 4 | $ | — | $ | i 101 | $ | — | $ | — | $ | i 64 | |||||||||||
Total
Investments | $ | i 1,488 | $ | i 48 | $ | i 3,703 | $ | i 1,105 | $ | i 52 | $ | i 3,217 |
FINANCIAL
STATEMENTS | INVESTMENTS IN DEBT AND EQUITY SECURITIES |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in millions) | |||||||||||||||
FV-NI: | |||||||||||||||
Realized
gains | $ | i 26 | $ | i 8 | $ | i 60 | $ | i 38 | |||||||
Realized
losses | i 17 | i 8 | i 41 | i 30 | |||||||||||
AFS: | |||||||||||||||
Realized
gains | i 31 | — | i 62 | i 1 | |||||||||||
Realized
losses | i 23 | i 1 | i 49 | i 8 |
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 | $ | — | $ | — | $ | i 52 | $ | — | $ | — | $ | i 46 | |||||||||||
Equity
securities | i 1,107 | i 30 | i 1,907 | i 833 | i 30 | i 1,588 | |||||||||||||||||
Corporate
debt securities | i 16 | — | i 224 | i 2 | i 3 | i 171 | |||||||||||||||||
Municipal
bonds | i 10 | — | i 274 | i 1 | i 3 | i 271 | |||||||||||||||||
U.S.
government bonds | i 19 | — | i 420 | i 6 | i 3 | i 415 | |||||||||||||||||
Other
debt securities | — | — | i 5 | — | — | i 3 | |||||||||||||||||
Total
NDTF Investments | $ | i 1,152 | $ | i 30 | $ | i 2,882 | $ | i 842 | $ | i 39 | $ | i 2,494 | |||||||||||
Other
Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | i 2 | $ | — | $ | — | $ | i 6 | |||||||||||
Total
Other Investments | $ | — | $ | — | $ | i 2 | $ | — | $ | — | $ | i 6 | |||||||||||
Total
Investments | $ | i 1,152 | $ | i 30 | $ | i 2,884 | $ | i 842 | $ | i 39 | $ | i 2,500 |
Three Months Ended | Nine
Months Ended | ||||||||||||||
(in millions) | |||||||||||||||
FV-NI: | |||||||||||||||
Realized
gains | $ | i 10 | $ | i 7 | $ | i 27 | $ | i 32 | |||||||
Realized
losses | i 9 | i 7 | i 24 | i 27 | |||||||||||
AFS: | |||||||||||||||
Realized
gains | i 2 | — | i 4 | i 1 | |||||||||||
Realized
losses | — | i 1 | i 2 | i 6 |
FINANCIAL
STATEMENTS | INVESTMENTS IN DEBT AND EQUITY SECURITIES |
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 | $ | — | $ | — | $ | i 26 | $ | — | $ | — | $ | i 13 | |||||||||||
Equity
securities | i 331 | i 18 | i 414 | i 260 | i 11 | i 403 | |||||||||||||||||
Corporate
debt securities | — | — | — | — | i 1 | i 54 | |||||||||||||||||
Municipal
bonds | — | — | — | — | — | i 1 | |||||||||||||||||
U.S.
government bonds | i 1 | — | i 280 | i 3 | i 1 | i 186 | |||||||||||||||||
Other
debt securities | — | — | — | — | — | i 2 | |||||||||||||||||
Total
NDTF Investments(a) | $ | i 332 | $ | i 18 | $ | i 720 | $ | i 263 | $ | i 13 | $ | i 659 | |||||||||||
Other
Investments | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | i 4 | $ | — | $ | — | $ | i 1 | |||||||||||
Municipal
bonds | i 4 | — | i 52 | — | — | i 47 | |||||||||||||||||
Total
Other Investments | $ | i 4 | $ | — | $ | i 56 | $ | — | $ | — | $ | i 48 | |||||||||||
Total
Investments | $ | i 336 | $ | i 18 | $ | i 776 | $ | i 263 | $ | i 13 | $ | i 707 |
(a) | During
the nine months ended September 30, 2019, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(in millions) | |||||||||||||||
FV-NI: | |||||||||||||||
Realized
gains | $ | i 16 | $ | i 1 | $ | i 33 | $ | i 6 | |||||||
Realized
losses | i 8 | i 1 | i 17 | i 3 | |||||||||||
AFS: | |||||||||||||||
Realized
gains | i 29 | — | i 58 | — | |||||||||||
Realized
losses | i 23 | — | i 47 | i 2 |
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 | |||||||||||||||||||||||
Equity
securities | $ | i 37 | $ | — | $ | i 74 | $ | i 29 | $ | — | $ | i 67 | |||||||||||
Corporate
debt securities | — | — | i 6 | — | — | i 8 | |||||||||||||||||
Municipal
bonds | i 1 | — | i 36 | — | i 1 | i 33 | |||||||||||||||||
U.S.
government bonds | — | — | i 1 | — | — | — | |||||||||||||||||
Total
Investments | $ | i 38 | $ | — | $ | i 117 | $ | i 29 | $ | i 1 | $ | i 108 |
FINANCIAL STATEMENTS | INVESTMENTS IN DEBT AND EQUITY SECURITIES |
Duke | Duke | Duke | Duke | ||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | ||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Indiana | |||||||||||||||||
Due
in one year or less | $ | i 400 | $ | i 65 | $ | i 328 | $ | i 48 | $ | i 280 | $ | i 4 | |||||||||||
Due
after one through five years | i 524 | i 220 | i 253 | i 243 | i 10 | i 15 | |||||||||||||||||
Due
after five through 10 years | i 450 | i 187 | i 209 | i 201 | i 8 | i 5 | |||||||||||||||||
Due
after 10 years | i 1,259 | i 687 | i 465 | i 431 | i 34 | i 19 | |||||||||||||||||
Total | $ | i 2,633 | $ | i 1,159 | $ | i 1,255 | $ | i 923 | $ | i 332 | $ | i 43 |
FINANCIAL STATEMENTS | FAIR VALUE MEASUREMENTS |
(in
millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not Categorized | ||||||||||
NDTF equity securities | $ | i 5,222 | $ | i 5,168 | $ | — | $ | — | $ | i 54 | |||||
NDTF
debt securities | i 2,476 | i 804 | i 1,672 | — | — | ||||||||||
Other
equity securities | i 112 | i 112 | — | — | — | ||||||||||
Other
debt securities | i 324 | i 92 | i 232 | — | — | ||||||||||
Derivative
assets | i 31 | i 2 | i 8 | i 21 | — | ||||||||||
Total
assets | i 8,165 | i 6,178 | i 1,912 | i 21 | i 54 | ||||||||||
Derivative
liabilities | ( i 353 | ) | ( i 25 | ) | ( i 217 | ) | ( i 111 | ) | — | ||||||
Net
assets (liabilities) | $ | i 7,812 | $ | i 6,153 | $ | i 1,695 | $ | ( i 90 | ) | $ | i 54 |
(in
millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not Categorized | ||||||||||
NDTF equity securities | $ | i 4,475 | $ | i 4,410 | $ | — | $ | — | $ | i 65 | |||||
NDTF
debt securities | i 2,231 | i 576 | i 1,655 | — | — | ||||||||||
Other
equity securities | i 99 | i 99 | — | — | — | ||||||||||
Other
debt securities | i 270 | i 67 | i 203 | — | — | ||||||||||
Derivative
assets | i 57 | i 4 | i 25 | i 28 | — | ||||||||||
Total
assets | i 7,132 | i 5,156 | i 1,883 | i 28 | i 65 | ||||||||||
Derivative
liabilities | ( i 242 | ) | ( i 11 | ) | ( i 90 | ) | ( i 141 | ) | — | ||||||
Net
assets (liabilities) | $ | i 6,890 | $ | i 5,145 | $ | i 1,793 | $ | ( i 113 | ) | $ | i 65 |
Derivatives (net) | |||||||||||||||
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Balance
at beginning of period | $ | ( i 79 | ) | $ | ( i 97 | ) | $ | ( i 113 | ) | $ | ( i 114 | ) | |||
Purchases,
sales, issuances and settlements: | |||||||||||||||
Purchases | — | — | i 38 | i 56 | |||||||||||
Settlements | ( i 9 | ) | ( i 14 | ) | ( i 32 | ) | ( i 43 | ) | |||||||
Total
(losses) gains included on the Condensed Consolidated Balance Sheet | ( i 2 | ) | ( i 5 | ) | i 17 | ( i 15 | ) | ||||||||
Balance
at end of period | $ | ( i 90 | ) | $ | ( i 116 | ) | $ | ( i 90 | ) | $ | ( i 116 | ) |
FINANCIAL
STATEMENTS | FAIR VALUE MEASUREMENTS |
(in
millions) | Total Fair Value | Level 1 | Level 2 | Not Categorized | ||||||||
NDTF equity securities | $ | i 2,901 | $ | i 2,847 | $ | — | $ | i 54 | ||||
NDTF
debt securities | i 1,195 | i 189 | i 1,006 | — | ||||||||
Total
assets | i 4,096 | i 3,036 | i 1,006 | i 54 | ||||||||
Derivative
liabilities | ( i 67 | ) | — | ( i 67 | ) | — | ||||||
Net
assets | $ | i 4,029 | $ | i 3,036 | $ | i 939 | $ | i 54 |
(in
millions) | Total Fair Value | Level 1 | Level 2 | Not Categorized | ||||||||
NDTF equity securities | $ | i 2,484 | $ | i 2,419 | $ | — | $ | i 65 | ||||
NDTF
debt securities | i 1,069 | i 149 | i 920 | — | ||||||||
Derivative
assets | i 3 | — | i 3 | — | ||||||||
Total
assets | i 3,556 | i 2,568 | i 923 | i 65 | ||||||||
Derivative
liabilities | ( i 33 | ) | — | ( i 33 | ) | — | ||||||
Net
assets | $ | i 3,523 | $ | i 2,568 | $ | i 890 | $ | i 65 |
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level
2 | |||||||||||||
NDTF equity securities | $ | i 2,321 | $ | i 2,321 | $ | — | $ | i 1,991 | $ | i 1,991 | $ | — | |||||||
NDTF
debt securities | i 1,281 | i 615 | i 666 | i 1,162 | i 427 | i 735 | |||||||||||||
Other
debt securities | i 101 | i 49 | i 52 | i 64 | i 17 | i 47 | |||||||||||||
Derivative
assets | i 5 | — | i 5 | i 4 | — | i 4 | |||||||||||||
Total
assets | i 3,708 | i 2,985 | i 723 | i 3,221 | i 2,435 | i 786 | |||||||||||||
Derivative
liabilities | ( i 113 | ) | i — | ( i 113 | ) | ( i 44 | ) | — | ( i 44 | ) | |||||||||
Net
assets | $ | i 3,595 | $ | i 2,985 | $ | i 610 | $ | i 3,177 | $ | i 2,435 | $ | i 742 |
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level
2 | |||||||||||||
NDTF equity securities | $ | i 1,907 | $ | i 1,907 | $ | — | $ | i 1,588 | $ | i 1,588 | $ | — | |||||||
NDTF
debt securities | i 975 | i 309 | i 666 | i 906 | i 294 | i 612 | |||||||||||||
Other
debt securities | i 2 | i 2 | — | i 6 | i 6 | — | |||||||||||||
Derivative
assets | — | — | — | i 4 | — | i 4 | |||||||||||||
Total
assets | i 2,884 | i 2,218 | i 666 | i 2,504 | i 1,888 | i 616 | |||||||||||||
Derivative
liabilities | ( i 43 | ) | i — | ( i 43 | ) | ( i 27 | ) | — | ( i 27 | ) | |||||||||
Net
assets | $ | i 2,841 | $ | i 2,218 | $ | i 623 | $ | i 2,477 | $ | i 1,888 | $ | i 589 |
FINANCIAL
STATEMENTS | FAIR VALUE MEASUREMENTS |
(in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level
2 | |||||||||||||
NDTF equity securities | $ | i 414 | $ | i 414 | $ | — | $ | i 403 | $ | i 403 | $ | — | |||||||
NDTF
debt securities | i 306 | i 306 | — | i 256 | i 133 | i 123 | |||||||||||||
Other
debt securities | i 56 | i 4 | i 52 | i 48 | i 1 | i 47 | |||||||||||||
Derivative
assets | i 5 | — | i 5 | — | — | — | |||||||||||||
Total
assets | i 781 | i 724 | i 57 | i 707 | i 537 | i 170 | |||||||||||||
Derivative
liabilities | ( i 54 | ) | — | ( i 54 | ) | ( i 9 | ) | — | ( i 9 | ) | |||||||||
Net
assets | $ | i 727 | $ | i 724 | $ | i 3 | $ | i 698 | $ | i 537 | $ | i 161 |
(in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | Level
1 | Level 2 | Level 3 | |||||||||||||||||
Other equity securities | $ | i 74 | $ | i 74 | $ | — | $ | — | $ | i 67 | $ | i 67 | $ | — | $ | — | |||||||||
Other
debt securities | i 43 | — | i 43 | — | i 41 | — | i 41 | — | |||||||||||||||||
Derivative
assets | i 16 | — | — | i 16 | i 23 | i 1 | — | i 22 | |||||||||||||||||
Total
assets | $ | i 133 | $ | i 74 | $ | i 43 | $ | i 16 | $ | i 131 | $ | i 68 | $ | i 41 | $ | i 22 |
Derivatives (net) | |||||||||||||||
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Balance
at beginning of period | $ | i 28 | $ | i 44 | $ | i 22 | $ | i 27 | |||||||
Purchases,
sales, issuances and settlements: | |||||||||||||||
Purchases | — | — | i 29 | i 49 | |||||||||||
Settlements | ( i 7 | ) | ( i 13 | ) | ( i 26 | ) | ( i 41 | ) | |||||||
Total
losses included on the Condensed Consolidated Balance Sheet | ( i 5 | ) | ( i 2 | ) | ( i 9 | ) | ( i 6 | ) | |||||||
Balance
at end of period | $ | i 16 | $ | i 29 | $ | i 16 | $ | i 29 |
FINANCIAL
STATEMENTS | FAIR VALUE MEASUREMENTS |
(in millions) | Total Fair Value | Level 1 | Level 3 | Total Fair Value | Level 1 | Level
3 | |||||||||||||
Derivative assets | $ | i 2 | $ | i 2 | $ | — | $ | i 3 | $ | i 3 | $ | — | |||||||
Derivative
liabilities | ( i 111 | ) | — | ( i 111 | ) | ( i 141 | ) | — | ( i 141 | ) | |||||||||
Net
(liabilities) assets | $ | ( i 109 | ) | $ | i 2 | $ | ( i 111 | ) | $ | ( i 138 | ) | $ | i 3 | $ | ( i 141 | ) |
Derivatives (net) | |||||||||||||||
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Balance
at beginning of period | $ | ( i 114 | ) | $ | ( i 150 | ) | $ | ( i 141 | ) | $ | ( i 142 | ) | |||
Total
gains (losses) and settlements | i 3 | ( i 3 | ) | i 30 | ( i 11 | ) | |||||||||
Balance
at end of period | $ | ( i 111 | ) | $ | ( i 153 | ) | $ | ( i 111 | ) | $ | ( i 153 | ) |
Fair
Value | ||||||||||||
Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | ||||||||
Duke Energy Ohio | ||||||||||||
FTRs | $ | i 5 | RTO
auction pricing | FTR price – per MWh | $ | i 0.57 | - | $ | i 3.38 | |||
Duke
Energy Indiana | ||||||||||||
FTRs | i 16 | RTO
auction pricing | FTR price – per MWh | ( i 0.52 | ) | - | i 6.85 | |||||
Piedmont | ||||||||||||
Natural
gas contracts | ( i 111 | ) | Discounted
cash flow | Forward natural gas curves – price per MMBtu | i 1.85 | - | i 2.99 | |||||
Duke
Energy | ||||||||||||
Total Level 3 derivatives | $ | ( i 90 | ) |
Fair
Value | ||||||||||||
Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | ||||||||
Duke Energy Ohio | ||||||||||||
FTRs | $ | i 6 | RTO
auction pricing | FTR price – per MWh | $ | i 1.19 | - | $ | i 4.59 | |||
Duke
Energy Indiana | ||||||||||||
FTRs | i 22 | RTO
auction pricing | FTR price – per MWh | ( i 2.07 | ) | - | i 8.27 | |||||
Piedmont | ||||||||||||
Natural
gas contracts | ( i 141 | ) | Discounted
cash flow | Forward natural gas curves – price per MMBtu | i 1.87 | - | i 2.95 | |||||
Duke
Energy | ||||||||||||
Total Level 3 derivatives | $ | ( i 113 | ) |
FINANCIAL
STATEMENTS | FAIR VALUE MEASUREMENTS |
(in millions) | Book
Value | Fair Value | Book Value | Fair Value | |||||||||||
Duke Energy(a) | $ | i 57,914 | $ | i 63,276 | $ | i 54,529 | $ | i 54,534 | |||||||
Duke
Energy Carolinas | i 11,758 | i 13,462 | i 10,939 | i 11,471 | |||||||||||
Progress
Energy | i 19,119 | i 21,952 | i 18,911 | i 19,885 | |||||||||||
Duke
Energy Progress | i 9,049 | i 9,995 | i 8,204 | i 8,300 | |||||||||||
Duke
Energy Florida | i 7,132 | i 8,356 | i 7,321 | i 7,742 | |||||||||||
Duke
Energy Ohio | i 2,719 | i 3,096 | i 2,165 | i 2,239 | |||||||||||
Duke
Energy Indiana | i 4,208 | i 5,018 | i 3,782 | i 4,158 | |||||||||||
Piedmont | i 2,384 | i 2,664 | i 2,138 | i 2,180 |
(a) | Book
value of long-term debt includes $ i 1.5 billion as of September 30, 2019, and $ i 1.6
billion as of December 31, 2018, of unamortized debt discount and premium, net in purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt. |
FINANCIAL
STATEMENTS | VARIABLE INTEREST ENTITIES |
Duke
Energy | |||||||||||||||
Duke Energy | Duke Energy | Duke Energy | |||||||||||||
Carolinas | Progress | Florida | |||||||||||||
(in
millions) | CRC | DERF | DEPR | DEFR | |||||||||||
Expiration date | December 2020 | December
2020 | February 2021 | April 2021 | |||||||||||
Credit facility amount | $ | i 350 | $ | i 475 | $ | i 325 | $ | i 250 | |||||||
Amounts
borrowed at September 30, 2019 | i 350 | i 475 | i 325 | i 250 | |||||||||||
Amounts
borrowed at December 31, 2018 | i 325 | i 450 | i 300 | i 225 | |||||||||||
Restricted
Receivables at September 30, 2019 | i 505 | i 775 | i 564 | i 471 | |||||||||||
Restricted
Receivables at December 31, 2018 | i 564 | i 699 | i 547 | i 357 |
(in millions) | ||||||
Receivables of VIEs | $ | i 7 | $ | i 5 | ||
Regulatory
Assets: Current | i 52 | i 52 | ||||
Current
Assets: Other | i 16 | i 39 | ||||
Other
Noncurrent Assets: Regulatory assets | i 1,002 | i 1,041 | ||||
Current
Liabilities: Other | i 2 | i 10 | ||||
Current
maturities of long-term debt | i 54 | i 53 | ||||
Long-Term
Debt | i 1,056 | i 1,111 |
(in millions) | ||||||
Current Assets: Other | $ | i 172 | $ | i 123 | ||
Property,
Plant and Equipment: Cost | i 5,160 | i 4,007 | ||||
Accumulated
depreciation and amortization | ( i 996 | ) | ( i 698 | ) | ||
Other
Noncurrent Assets: Other | i 63 | i 261 | ||||
Current
maturities of long-term debt | i 177 | i 174 | ||||
Long-Term
Debt | i 1,604 | i 1,587 | ||||
Other
Noncurrent Liabilities: Asset retirement obligations | i 125 | i 106 | ||||
Other
Noncurrent Liabilities: Other | i 218 | i 212 |
FINANCIAL
STATEMENTS | VARIABLE INTEREST ENTITIES |
Duke
Energy | Duke | Duke | |||||||||||||||||||||
Pipeline | Commercial | Other | Energy | Energy | |||||||||||||||||||
(in
millions) | Investments | Renewables | VIEs | Total | Ohio | Indiana | |||||||||||||||||
Receivables
from affiliated companies | $ | — | $ | — | $ | — | $ | — | $ | i 48 | $ | i 76 | |||||||||||
Investments
in equity method unconsolidated affiliates | i 1,152 | i 235 | i 55 | i 1,442 | — | — | |||||||||||||||||
Total
assets | $ | i 1,152 | $ | i 235 | $ | i 55 | $ | i 1,442 | $ | i 48 | $ | i 76 | |||||||||||
Taxes
accrued | ( i 2 | ) | — | — | ( i 2 | ) | — | — | |||||||||||||||
Other
current liabilities | — | — | i 3 | i 3 | — | — | |||||||||||||||||
Deferred
income taxes | i 57 | — | — | i 57 | — | — | |||||||||||||||||
Other
noncurrent liabilities | — | — | i 11 | i 11 | — | — | |||||||||||||||||
Total
liabilities | $ | i 55 | $ | — | $ | i 14 | $ | i 69 | $ | — | $ | — | |||||||||||
Net
assets | $ | i 1,097 | $ | i 235 | $ | i 41 | $ | i 1,373 | $ | i 48 | $ | i 76 |
Duke
Energy | Duke | Duke | |||||||||||||||||||||
Pipeline | Commercial | Other
| Energy | Energy | |||||||||||||||||||
(in millions) | Investments | Renewables | VIEs | Total | Ohio | Indiana | |||||||||||||||||
Receivables
from affiliated companies | $ | — | $ | — | $ | — | $ | — | $ | i 93 | $ | i 118 | |||||||||||
Investments
in equity method unconsolidated affiliates | i 822 | i 190 | i 48 | i 1,060 | — | — | |||||||||||||||||
Total
assets | $ | i 822 | $ | i 190 | $ | i 48 | $ | i 1,060 | $ | i 93 | $ | i 118 | |||||||||||
Taxes
accrued | ( i 1 | ) | — | — | ( i 1 | ) | — | — | |||||||||||||||
Other
current liabilities | — | — | i 4 | i 4 | — | — | |||||||||||||||||
Deferred
income taxes | i 21 | — | — | i 21 | — | — | |||||||||||||||||
Other
noncurrent liabilities | — | — | i 12 | i 12 | — | — | |||||||||||||||||
Total
liabilities | $ | i 20 | $ | — | $ | i 16 | $ | i 36 | $ | — | $ | — | |||||||||||
Net
assets | $ | i 802 | $ | i 190 | $ | i 32 | $ | i 1,024 | $ | i 93 | $ | i 118 |
VIE Investment Amount (in millions) | ||||||||||
Ownership | September 30, | December
31, | ||||||||
Entity Name | Interest | 2019 | 2018 | |||||||
ACP(a) | i 47 | % | $ | i 1,127 | $ | i 797 | ||||
Constitution | i 24 | % | i 25 | i 25 | ||||||
Total | $ | i 1,152 | $ | i 822 |
(a) | Duke
Energy evaluated this investment for impairment as of September 30, 2019, and December 31, 2018, and determined that fair value approximated carrying value and therefore no impairment was necessary. |
FINANCIAL STATEMENTS | VARIABLE INTEREST
ENTITIES |
Duke
Energy Ohio | Duke Energy Indiana | ||||||||||||||
(in millions) | |||||||||||||||
Receivables
sold | $ | i 217 | $ | i 269 | $ | i 326 | $ | i 336 | |||||||
Less:
Retained interests | i 48 | i 93 | i 76 | i 118 | |||||||||||
Net
receivables sold | $ | i 169 | $ | i 176 | $ | i 250 | $ | i 218 |
Duke Energy Ohio | Duke
Energy Indiana | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
(in
millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||
Receivables
sold | $ | i 479 | $ | i 450 | $ | i 1,483 | $ | i 1,478 | $ | i 762 | $ | i 754 | $ | i 2,172 | $ | i 2,140 | |||||||||||||||
Loss
recognized on sale | i 4 | i 4 | i 11 | i 10 | i 4 | i 5 | i 13 | i 12 | |||||||||||||||||||||||
Cash
flows | |||||||||||||||||||||||||||||||
Cash
proceeds from receivables sold | $ | i 471 | $ | i 449 | $ | i 1,516 | $ | i 1,499 | $ | i 762 | $ | i 743 | $ | i 2,200 | $ | i 2,140 | |||||||||||||||
Collection
fees received | — | — | i 1 | i 1 | — | — | i 1 | i 1 | |||||||||||||||||||||||
Return
received on retained interests | i 1 | i 2 | i 5 | i 5 | i 2 | i 3 | i 7 | i 7 |
FINANCIAL STATEMENTS | REVENUE |
Remaining Performance Obligations | |||||||||||||||||||||
(in millions) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||
Progress
Energy | $ | i 31 | $ | i 121 | $ | i 86 | $ | i 81 | $ | i 38 | $ | i 41 | $ | i 398 | |||||||
Duke
Energy Progress | i 2 | i 8 | i 8 | i 8 | i 8 | i 8 | i 42 | ||||||||||||||
Duke
Energy Florida | i 29 | i 113 | i 78 | i 73 | i 30 | i 33 | i 356 | ||||||||||||||
Duke
Energy Indiana | i 2 | i 10 | i 5 | — | — | — | i 17 |
Remaining Performance Obligations | |||||||||||||||||||||
(in
millions) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||
Piedmont | $ | i 17 | $ | i 69 | $ | i 64 | $ | i 64 | $ | i 61 | $ | i 430 | $ | i 705 |
FINANCIAL
STATEMENTS | REVENUE |
Three
Months Ended September 30, 2019 | ||||||||||||||||||||||||
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 | $ | i 2,923 | $ | i 892 | $ | i 1,522 | $ | i 625 | $ | i 897 | $ | i 215 | $ | i 294 | $ | — | ||||||||
General | i 1,885 | i 687 | i 843 | i 399 | i 444 | i 127 | i 225 | — | ||||||||||||||||
Industrial | i 869 | i 372 | i 255 | i 189 | i 66 | i 40 | i 204 | — | ||||||||||||||||
Wholesale | i 617 | i 113 | i 429 | i 368 | i 61 | i 13 | i 63 | — | ||||||||||||||||
Other
revenues | i 198 | i 76 | i 118 | i 70 | i 48 | i 18 | i 22 | — | ||||||||||||||||
Total
Electric Utilities and Infrastructure revenue from contracts with customers | $ | i 6,492 | $ | i 2,140 | $ | i 3,167 | $ | i 1,651 | $ | i 1,516 | $ | i 413 | $ | i 808 | $ | — | ||||||||
Gas
Utilities and Infrastructure | ||||||||||||||||||||||||
Residential | $ | i 113 | $ | — | $ | — | $ | — | $ | — | $ | i 53 | $ | — | $ | i 59 | ||||||||
Commercial | i 68 | — | — | — | — | i 21 | — | i 47 | ||||||||||||||||
Industrial | i 26 | — | — | — | — | i 4 | — | i 25 | ||||||||||||||||
Power
Generation | — | — | — | — | — | — | — | i 13 | ||||||||||||||||
Other
revenues | i 16 | — | — | — | — | i 3 | — | i 13 | ||||||||||||||||
Total
Gas Utilities and Infrastructure revenue from contracts with customers | $ | i 223 | $ | — | $ | — | $ | — | $ | — | $ | i 81 | $ | — | $ | i 157 | ||||||||
Commercial
Renewables | ||||||||||||||||||||||||
Revenue from contracts with customers | $ | i 69 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Other | ||||||||||||||||||||||||
Revenue
from contracts with customers | $ | i 8 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Total
revenue from contracts with customers | $ | i 6,792 | $ | i 2,140 | $ | i 3,167 | $ | i 1,651 | $ | i 1,516 | $ | i 494 | $ | i 808 | $ | i 157 | ||||||||
Other
revenue sources(a) | $ | i 148 | $ | i 22 | $ | i 75 | $ | i 37 | $ | i 32 | $ | ( i 5 | ) | $ | ( i 1 | ) | $ | i 11 | ||||||
Total
revenues | $ | i 6,940 | $ | i 2,162 | $ | i 3,242 | $ | i 1,688 | $ | i 1,548 | $ | i 489 | $ | i 807 | $ | i 168 |
(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. |
FINANCIAL STATEMENTS | REVENUE |
Three
Months Ended September 30, 2018 | ||||||||||||||||||||||||
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 | $ | i 2,729 | $ | i 823 | $ | i 1,425 | $ | i 572 | $ | i 853 | $ | i 203 | $ | i 279 | $ | — | ||||||||
General | i 1,763 | i 635 | i 800 | i 373 | i 427 | i 112 | i 218 | — | ||||||||||||||||
Industrial | i 835 | i 352 | i 246 | i 177 | i 69 | i 33 | i 202 | — | ||||||||||||||||
Wholesale | i 589 | i 132 | i 372 | i 335 | i 37 | i 3 | i 81 | — | ||||||||||||||||
Other
revenues | i 225 | i 109 | i 134 | i 90 | i 44 | i 20 | i 29 | — | ||||||||||||||||
Total
Electric Utilities and Infrastructure revenue from contracts with customers | $ | i 6,141 | $ | i 2,051 | $ | i 2,977 | $ | i 1,547 | $ | i 1,430 | $ | i 371 | $ | i 809 | $ | — | ||||||||
Gas
Utilities and Infrastructure | ||||||||||||||||||||||||
Residential | $ | i 116 | $ | — | $ | — | $ | — | $ | — | $ | i 59 | $ | — | $ | i 57 | ||||||||
Commercial | i 66 | — | — | — | — | i 20 | — | i 46 | ||||||||||||||||
Industrial | i 28 | — | — | — | — | i 3 | — | i 24 | ||||||||||||||||
Power
Generation | — | — | — | — | — | — | — | i 13 | ||||||||||||||||
Other
revenues | i 23 | — | — | — | — | i 1 | — | i 22 | ||||||||||||||||
Total
Gas Utilities and Infrastructure revenue from contracts with customers | $ | i 233 | $ | — | $ | — | $ | — | $ | — | $ | i 83 | $ | — | $ | i 162 | ||||||||
Commercial
Renewables | ||||||||||||||||||||||||
Revenue from contracts with customers | $ | i 61 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Other | ||||||||||||||||||||||||
Revenue
from contracts with customers | $ | i 16 | $ | — | $ | — | $ | — | $ | — | $ | i 12 | $ | — | $ | — | ||||||||
Total
revenue from contracts with customers | $ | i 6,451 | $ | i 2,051 | $ | i 2,977 | $ | i 1,547 | $ | i 1,430 | $ | i 466 | $ | i 809 | $ | i 162 | ||||||||
Other
revenue sources(a) | $ | i 177 | $ | i 39 | $ | i 68 | $ | i 35 | $ | i 32 | $ | i 3 | $ | i 10 | $ | i 10 | ||||||||
Total
revenues | $ | i 6,628 | $ | i 2,090 | $ | i 3,045 | $ | i 1,582 | $ | i 1,462 | $ | i 469 | $ | i 819 | $ | i 172 |
(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. |
FINANCIAL STATEMENTS | REVENUE |
Nine
Months Ended September 30, 2019 | ||||||||||||||||||||||||
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 | $ | i 7,597 | $ | i 2,331 | $ | i 3,879 | $ | i 1,657 | $ | i 2,222 | $ | i 563 | $ | i 825 | $ | — | ||||||||
General | i 4,896 | i 1,714 | i 2,225 | i 1,044 | i 1,181 | i 335 | i 619 | — | ||||||||||||||||
Industrial | i 2,339 | i 927 | i 708 | i 514 | i 194 | i 109 | i 595 | — | ||||||||||||||||
Wholesale | i 1,685 | i 341 | i 1,133 | i 992 | i 141 | i 36 | i 176 | — | ||||||||||||||||
Other
revenues | i 557 | i 222 | i 389 | i 239 | i 150 | i 59 | i 66 | — | ||||||||||||||||
Total
Electric Utilities and Infrastructure revenue from contracts with customers | $ | i 17,074 | $ | i 5,535 | $ | i 8,334 | $ | i 4,446 | $ | i 3,888 | $ | i 1,102 | $ | i 2,281 | $ | — | ||||||||
Gas
Utilities and Infrastructure | ||||||||||||||||||||||||
Residential | $ | i 673 | $ | — | $ | — | $ | — | $ | — | $ | i 229 | $ | — | $ | i 443 | ||||||||
Commercial | i 359 | — | — | — | — | i 96 | — | i 263 | ||||||||||||||||
Industrial | i 103 | — | — | — | — | i 14 | — | i 91 | ||||||||||||||||
Power
Generation | — | — | — | — | — | — | — | i 39 | ||||||||||||||||
Other
revenues | i 101 | — | — | — | — | i 13 | — | i 88 | ||||||||||||||||
Total
Gas Utilities and Infrastructure revenue from contracts with customers | $ | i 1,236 | $ | — | $ | — | $ | — | $ | — | $ | i 352 | $ | — | $ | i 924 | ||||||||
Commercial
Renewables | ||||||||||||||||||||||||
Revenue from contracts with customers | $ | i 157 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Other | ||||||||||||||||||||||||
Revenue
from contracts with customers | $ | i 18 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Total
Revenue from contracts with customers | $ | i 18,485 | $ | i 5,535 | $ | i 8,334 | $ | i 4,446 | $ | i 3,888 | $ | i 1,454 | $ | i 2,281 | $ | i 924 | ||||||||
Other
revenue sources(a) | $ | i 491 | $ | i 84 | $ | i 224 | $ | i 113 | $ | i 99 | $ | ( i 1 | ) | $ | i 8 | $ | i 32 | |||||||
Total
revenues | $ | i 18,976 | $ | i 5,619 | $ | i 8,558 | $ | i 4,559 | $ | i 3,987 | $ | i 1,453 | $ | i 2,289 | $ | i 956 |
(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. |
FINANCIAL STATEMENTS | REVENUE |
Nine
Months Ended September 30, 2018 | ||||||||||||||||||||||||
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 | $ | i 7,264 | $ | i 2,263 | $ | i 3,636 | $ | i 1,540 | $ | i 2,096 | $ | i 564 | $ | i 802 | $ | — | ||||||||
General | i 4,619 | i 1,608 | i 2,109 | i 972 | i 1,137 | i 318 | i 584 | — | ||||||||||||||||
Industrial | i 2,235 | i 893 | i 678 | i 481 | i 197 | i 96 | i 567 | — | ||||||||||||||||
Wholesale | i 1,737 | i 366 | i 1,140 | i 1,019 | i 121 | i 5 | i 226 | — | ||||||||||||||||
Other
revenues | i 558 | i 261 | i 359 | i 222 | i 137 | i 57 | i 66 | — | ||||||||||||||||
Total
Electric Utilities and Infrastructure revenue from contracts with customers | $ | i 16,413 | $ | i 5,391 | $ | i 7,922 | $ | i 4,234 | $ | i 3,688 | $ | i 1,040 | $ | i 2,245 | $ | — | ||||||||
Gas
Utilities and Infrastructure | ||||||||||||||||||||||||
Residential | $ | i 682 | $ | — | $ | — | $ | — | $ | — | $ | i 236 | $ | — | $ | i 446 | ||||||||
Commercial | i 354 | — | — | — | — | i 97 | — | i 257 | ||||||||||||||||
Industrial | i 107 | — | — | — | — | i 13 | — | i 93 | ||||||||||||||||
Power
Generation | — | — | — | — | — | — | — | i 40 | ||||||||||||||||
Other
revenues | i 101 | — | — | — | — | i 13 | — | i 88 | ||||||||||||||||
Total
Gas Utilities and Infrastructure revenue from contracts with customers | $ | i 1,244 | $ | — | $ | — | $ | — | $ | — | $ | i 359 | $ | — | $ | i 924 | ||||||||
Commercial
Renewables | ||||||||||||||||||||||||
Revenue from contracts with customers | $ | i 141 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Other | ||||||||||||||||||||||||
Revenue
from contracts with customers | $ | i 47 | $ | — | $ | — | $ | — | $ | — | $ | i 36 | $ | — | $ | — | ||||||||
Total
Revenue from contracts with customers | $ | i 17,845 | $ | i 5,391 | $ | i 7,922 | $ | i 4,234 | $ | i 3,688 | $ | i 1,435 | $ | i 2,245 | $ | i 924 | ||||||||
Other
revenue sources(a) | $ | i 561 | $ | i 134 | $ | i 197 | $ | i 99 | $ | i 92 | $ | i 17 | $ | i 43 | $ | i 16 | ||||||||
Total
revenues | $ | i 18,406 | $ | i 5,525 | $ | i 8,119 | $ | i 4,333 | $ | i 3,780 | $ | i 1,452 | $ | i 2,288 | $ | i 940 |
(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. |
(in millions) | |||||||
Duke
Energy | $ | i 831 | $ | i 896 | |||
Duke
Energy Carolinas | i 312 | i 313 | |||||
Progress
Energy | i 265 | i 244 | |||||
Duke
Energy Progress | i 141 | i 148 | |||||
Duke
Energy Florida | i 124 | i 96 | |||||
Duke
Energy Ohio | i 2 | i 2 | |||||
Duke
Energy Indiana | i 19 | i 23 | |||||
Piedmont | i 2 | i 73 |
FINANCIAL
STATEMENTS | REVENUE |
(in
millions) | |||||||
Duke Energy Ohio | $ | i 74 | $ | i 86 | |||
Duke
Energy Indiana | i 124 | i 128 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions, except per-share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Income
from continuing operations attributable to Duke Energy common stockholders excluding impact of participating securities | $ | i 1,324 | $ | i 1,077 | $ | i 3,041 | $ | i 2,199 | |||||||
Weighted
average common shares outstanding – basic | i 729 | i 713 | i 728 | i 705 | |||||||||||
Equity
Forwards | — | i 1 | — | i 1 | |||||||||||
Weighted
average common shares outstanding – diluted | i 729 | i 714 | i 728 | i 706 | |||||||||||
EPS
from continuing operations attributable to Duke Energy common stockholders | |||||||||||||||
Basic | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.12 | |||||||
Diluted | $ | i 1.82 | $ | i 1.51 | $ | i 4.18 | $ | i 3.11 | |||||||
Potentially
dilutive items excluded from the calculation(a) | i 2 | i 2 | i 2 | i 2 | |||||||||||
Dividends
declared per common share | $ | i 0.945 | $ | i 0.9275 | $ | i 2.800 | $ | i 2.7075 | |||||||
Dividends
declared on Series A preferred stock per depositary share | $ | i 0.359 | $ | — | $ | i 0.667 | $ | — |
(a) | Performance
stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met. |
FINANCIAL STATEMENTS | STOCKHOLDERS' EQUITY |
• | senior to Common Stock and to each other class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is expressly made subordinated to the Series A and Series B Preferred Stock; |
• | on
a parity with any class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is not expressly made senior or subordinated to the Series A or Series B Preferred Stock; |
• | junior to any class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is expressly made senior to the Series A or Series B Preferred Stock; |
• | junior to all of existing and future indebtedness (including indebtedness outstanding
under Duke Energy's credit facilities, unsecured senior notes, junior subordinated debentures and commercial paper) and other liabilities with respect to assets available to satisfy claims against Duke Energy; and |
• | structurally subordinated to existing and future indebtedness and other liabilities of Duke Energy's subsidiaries and future preferred stock of subsidiaries. |
FINANCIAL
STATEMENTS | STOCKHOLDERS' EQUITY |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Contributions
made | $ | i 77 | $ | i 7 | $ | i 57 | $ | i 4 | $ | i 53 | $ | i 2 | $ | i 2 | $ | i 1 |
FINANCIAL STATEMENTS | EMPLOYEE BENEFIT PLANS |
Three Months
Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service
cost | $ | i 42 | $ | i 13 | $ | i 13 | $ | i 7 | $ | i 5 | $ | i 1 | $ | i 2 | $ | i 1 | |||||||||||||||
Interest
cost on projected benefit obligation | i 77 | i 17 | i 24 | i 10 | i 14 | i 5 | i 6 | i 2 | |||||||||||||||||||||||
Expected
return on plan assets | ( i 140 | ) | ( i 36 | ) | ( i 45 | ) | ( i 22 | ) | ( i 22 | ) | ( i 7 | ) | ( i 11 | ) | ( i 5 | ) | |||||||||||||||
Amortization
of actuarial loss | i 28 | i 6 | i 10 | i 4 | i 6 | i 2 | i 3 | i 2 | |||||||||||||||||||||||
Amortization
of prior service credit | ( i 8 | ) | ( i 2 | ) | ( i 1 | ) | — | — | — | — | ( i 2 | ) | |||||||||||||||||||
Net
periodic pension costs | $ | ( i 1 | ) | $ | ( i 2 | ) | $ | i 1 | $ | ( i 1 | ) | $ | i 3 | $ | i 1 | $ | — | $ | ( i 2 | ) |
Three
Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service
cost | $ | i 47 | $ | i 15 | $ | i 13 | $ | i 7 | $ | i 5 | $ | i 2 | $ | i 2 | $ | i 2 | |||||||||||||||
Interest
cost on projected benefit obligation | i 74 | i 18 | i 24 | i 10 | i 13 | i 4 | i 6 | i 3 | |||||||||||||||||||||||
Expected
return on plan assets | ( i 140 | ) | ( i 37 | ) | ( i 45 | ) | ( i 21 | ) | ( i 23 | ) | ( i 7 | ) | ( i 10 | ) | ( i 6 | ) | |||||||||||||||
Amortization
of actuarial loss | i 33 | i 7 | i 11 | i 6 | i 6 | i 1 | i 2 | i 3 | |||||||||||||||||||||||
Amortization
of prior service credit | ( i 8 | ) | ( i 2 | ) | ( i 1 | ) | — | — | — | — | ( i 3 | ) | |||||||||||||||||||
Net
periodic pension costs | $ | i 6 | $ | i 1 | $ | i 2 | $ | i 2 | $ | i 1 | $ | — | $ | — | $ | ( i 1 | ) |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service
cost | $ | i 116 | $ | i 37 | $ | i 34 | $ | i 19 | $ | i 15 | $ | i 3 | $ | i 6 | $ | i 4 | |||||||||||||||
Interest
cost on projected benefit obligation | i 242 | i 58 | i 76 | i 34 | i 41 | i 14 | i 19 | i 8 | |||||||||||||||||||||||
Expected
return on plan assets | ( i 426 | ) | ( i 111 | ) | ( i 134 | ) | ( i 66 | ) | ( i 66 | ) | ( i 21 | ) | ( i 32 | ) | ( i 16 | ) | |||||||||||||||
Amortization
of actuarial loss | i 77 | i 17 | i 28 | i 10 | i 18 | i 3 | i 6 | i 5 | |||||||||||||||||||||||
Amortization
of prior service credit | ( i 24 | ) | ( i 6 | ) | ( i 2 | ) | ( i 1 | ) | ( i 1 | ) | — | ( i 1 | ) | ( i 7 | ) | ||||||||||||||||
Net
periodic pension costs | $ | ( i 15 | ) | $ | ( i 5 | ) | $ | i 2 | $ | ( i 4 | ) | $ | i 7 | $ | ( i 1 | ) | $ | ( i 2 | ) | $ | ( i 6 | ) |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Duke | Duke | Duke | Duke | Duke | |||||||||||||||||||||||||||
Duke | Energy | Progress | Energy | Energy | Energy | Energy | |||||||||||||||||||||||||
(in
millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||||||||||||||||
Service
cost | $ | i 137 | $ | i 45 | $ | i 39 | $ | i 22 | $ | i 16 | $ | i 4 | $ | i 7 | $ | i 6 | |||||||||||||||
Interest
cost on projected benefit obligation | i 224 | i 54 | i 70 | i 31 | i 38 | i 13 | i 18 | i 9 | |||||||||||||||||||||||
Expected
return on plan assets | ( i 420 | ) | ( i 111 | ) | ( i 133 | ) | ( i 63 | ) | ( i 69 | ) | ( i 21 | ) | ( i 31 | ) | ( i 18 | ) | |||||||||||||||
Amortization
of actuarial loss | i 99 | i 21 | i 33 | i 16 | i 18 | i 3 | i 6 | i 9 | |||||||||||||||||||||||
Amortization
of prior service credit | ( i 24 | ) | ( i 6 | ) | ( i 3 | ) | ( i 1 | ) | ( i 1 | ) | — | — | ( i 9 | ) | |||||||||||||||||
Net
periodic pension costs | $ | i 16 | $ | i 3 | $ | i 6 | $ | i 5 | $ | i 2 | $ | ( i 1 | ) | $ | — | $ | ( i 3 | ) |
FINANCIAL
STATEMENTS | INCOME TAXES |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Duke
Energy | i 12.4 | % | i 13.7 | % | i 12.5 | % | i 17.0 | % | |||
Duke
Energy Carolinas | i 16.7 | % | i 22.6 | % | i 17.7 | % | i 22.3 | % | |||
Progress
Energy | i 15.3 | % | i 18.8 | % | i 16.2 | % | i 17.0 | % | |||
Duke
Energy Progress | i 14.7 | % | i 20.6 | % | i 16.1 | % | i 18.4 | % | |||
Duke
Energy Florida | i 16.5 | % | i 15.0 | % | i 18.0 | % | i 16.3 | % | |||
Duke
Energy Ohio | i 12.9 | % | i 16.0 | % | i 15.2 | % | i 16.0 | % | |||
Duke
Energy Indiana | i 23.2 | % | i 22.7 | % | i 23.7 | % | i 24.7 | % | |||
Piedmont | i 35.7 | % | i 34.4 | % | i 18.5 | % | i 20.6 | % |
MD&A | DUKE
ENERGY |
• | Duke Energy Carolinas and Duke Energy Progress filed general rate cases with the NCUC on September 30, 2019, and October 30, 2019, respectively, requesting rate increases go into effect in the third quarter of 2020. |
• | Duke
Energy Kentucky filed an electric rate case with the KPSC on September 3, 2019. Hearings are expected to begin in the first quarter of 2020 with rates anticipated to go into effect in the second quarter of 2020. |
• | Duke Energy Indiana filed a general rate case with the IURC on July 2, 2019. Hearings are expected to begin in early 2020, with rates to be effective mid-2020. |
• | On
October 31, 2019, Piedmont received an order from the NCUC and revised customer rates became effective on November 1, 2019. |
• | In May 2019, Duke Energy Carolinas and Duke Energy Progress received orders from the PSCSC and revised customer rates became effective June 1, 2019. As a result of the Directive allowing litigation-related costs, Duke Energy Progress customer rates were revised again July 1, 2019. |
• | Duke
Energy Kentucky revised customer rates on April 1, 2019, following settlement on January 30, 2019, of its 2018 Natural Gas Base Rate Case. |
• | At Duke Energy Florida, revised customer rates went into effect in January 2019 as a result of a July 2018 petition to the FPSC to include in base rates the revenue requirement for Duke Energy Florida’s first solar generation project, the Hamilton Project. The FPSC in July 2019, issued an order to allow Duke Energy Florida to include in base rates the revenue requirements for its next wave of three solar generation projects, with projected in-service dates ranging from the fourth quarter of 2019 to the first
quarter of 2020. |
MD&A | DUKE ENERGY |
• | Impairment Charges represents a reduction of a prior year impairment at Citrus County CC,
an OTTI of an investment in Constitution and a Commercial Renewables goodwill impairment. |
• | Costs to Achieve Piedmont Merger represents charges that resulted from the Piedmont acquisition. |
• | Regulatory and Legislative Impacts represents charges related to rate case orders, settlements or other actions of regulators or legislative bodies. |
• | Sale
of Retired Plant represents the loss associated with selling Beckjord, a nonregulated generating facility in Ohio. |
• | Impacts of the Tax Act represents an AMT valuation allowance recognized and a true up of prior year tax estimates related to the Tax Act. |
Three Months Ended September 30, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(in
millions, except per-share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||
GAAP Reported Earnings/GAAP Reported EPS | $ | 1,327 | $ | 1.82 | $ | 1,082 | $ | 1.51 | |||||||
Adjustments: | |||||||||||||||
Impairment
charges(a) | (19 | ) | (0.03 | ) | 91 | 0.12 | |||||||||
Costs to Achieve Piedmont Merger(b) | — | — | 13 | 0.02 | |||||||||||
Impacts
of the Tax Act(c) | — | — | (3 | ) | — | ||||||||||
Discontinued Operations | — | — | (4 | ) | — | ||||||||||
Adjusted
Earnings/Adjusted Diluted EPS | $ | 1,308 | $ | 1.79 | $ | 1,179 | $ | 1.65 |
(a) | Net
of $6 million tax expense in 2019. Net of $2 million Noncontrolling Interests in 2018. |
(b) | Net of $3 million tax benefit. |
(c) | Represents a true up of prior year tax estimates related to the Tax Act. |
MD&A | DUKE
ENERGY |
Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | ||||||||||||||
(in
millions, except per-share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||
GAAP Reported Earnings/GAAP Reported EPS | $ | 3,047 | $ | 4.18 | $ | 2,202 | $ | 3.11 | |||||||
Adjustments: | |||||||||||||||
Costs
to Achieve Piedmont Merger(a) | — | — | 41 | 0.06 | |||||||||||
Regulatory and Legislative Impacts(b) | — | — | 202 | 0.29 | |||||||||||
Sale
of Retired Plant(c) | — | — | 82 | 0.12 | |||||||||||
Impairment Charges(d) | (19 | ) | (0.03 | ) | 133 | 0.19 | |||||||||
Impacts
of the Tax Act(e) | — | — | 73 | 0.10 | |||||||||||
Discontinued Operations | — | — | 1 | — | |||||||||||
Adjusted
Earnings/Adjusted Diluted EPS | $ | 3,028 | $ | 4.15 | $ | 2,734 | $ | 3.87 |
(a) | Net
of $12 million tax benefit. |
(b) | Net of $63 million tax benefit. |
(c) | Net of $25 million tax benefit. |
(d) | Net of $6 million tax expense in 2019. Net of $13 million tax benefit and $2 million Noncontrolling Interests in 2018. |
(e)
| Represents a recognition of AMT valuation allowance and true up of prior year tax estimates related to the Tax Act. |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||||
Operating
Revenues | $ | 6,577 | $ | 6,260 | $ | 317 | $ | 17,381 | $ | 16,806 | $ | 575 | |||||||||||
Operating
Expenses | |||||||||||||||||||||||
Fuel used in electric generation and purchased power | 1,994 | 1,935 | 59 | 5,286 | 5,202 | 84 | |||||||||||||||||
Operation,
maintenance and other | 1,357 | 1,431 | (74 | ) | 3,957 | 4,151 | (194 | ) | |||||||||||||||
Depreciation
and amortization | 1,026 | 897 | 129 | 2,924 | 2,570 | 354 | |||||||||||||||||
Property
and other taxes | 301 | 289 | 12 | 899 | 842 | 57 | |||||||||||||||||
Impairment
charges | (20 | ) | 31 | (51 | ) | (16 | ) | 246 | (262 | ) | |||||||||||||
Total
operating expenses | 4,658 | 4,583 | 75 | 13,050 | 13,011 | 39 | |||||||||||||||||
Gains
on Sales of Other Assets and Other, net | — | 8 | (8 | ) | — | 9 | (9 | ) | |||||||||||||||
Operating
Income | 1,919 | 1,685 | 234 | 4,331 | 3,804 | 527 | |||||||||||||||||
Other
Income and Expenses, net | 87 | 107 | (20 | ) | 267 | 286 | (19 | ) | |||||||||||||||
Interest
Expense | 336 | 322 | 14 | 1,004 | 955 | 49 | |||||||||||||||||
Income
Before Income Taxes | 1,670 | 1,470 | 200 | 3,594 | 3,135 | 459 | |||||||||||||||||
Income
Tax Expense | 285 | 303 | (18 | ) | 650 | 643 | 7 | ||||||||||||||||
Segment
Income | $ | 1,385 | $ | 1,167 | $ | 218 | $ | 2,944 | $ | 2,492 | $ | 452 | |||||||||||
Duke
Energy Carolinas GWh sales | 25,587 | 25,607 | (20 | ) | 69,019 | 70,506 | (1,487 | ) | |||||||||||||||
Duke
Energy Progress GWh sales | 19,502 | 19,625 | (123 | ) | 52,072 | 52,747 | (675 | ) | |||||||||||||||
Duke
Energy Florida GWh sales | 12,996 | 12,375 | 621 | 32,468 | 31,798 | 670 | |||||||||||||||||
Duke
Energy Ohio GWh sales | 7,135 | 6,964 | 171 | 18,959 | 19,183 | (224 | ) | ||||||||||||||||
Duke
Energy Indiana GWh sales | 8,711 | 9,114 | (403 | ) | 24,181 | 25,900 | (1,719 | ) | |||||||||||||||
Total
Electric Utilities and Infrastructure GWh sales | 73,931 | 73,685 | 246 | 196,699 | 200,134 | (3,435 | ) | ||||||||||||||||
Net
proportional MW capacity in operation | 49,711 | 48,757 | 954 |
MD&A | SEGMENT
RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE |
• | a $167 million increase in retail pricing primarily due to the Duke Energy Carolinas North and South Carolina rate cases and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service; |
• | an $88 million increase in retail sales, net of fuel revenues, due to favorable weather in the current year; and |
• | a
$51 million increase in fuel related revenues. |
• | a $129 million increase in depreciation and amortization expense primarily due to additional plant in service and new depreciation rates associated with the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases and Duke Energy Florida's Citrus County CC being placed in service; |
• | a $59 million increase in fuel used in
electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from the prior year at Duke Energy Progress; and |
• | a $12 million increase in property and other taxes primarily due to higher property taxes for additional plant in service at Duke Energy Florida. |
• | a $74 million decrease in operation, maintenance and other expense primarily due to lower storm costs
at Duke Energy Progress and Duke Energy Carolinas in the current year and lower payroll costs resulting from prior year workforce reductions; and |
• | a $51 million decrease in impairment charges primarily due to a reduction of a prior year impairment at Duke Energy Florida's Citrus County CC and the prior year Edwardsport IGCC settlement at Duke Energy Indiana. |
• | a
$493 million increase in retail pricing primarily due to the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service; and |
• | an $85 million increase in fuel related revenues. |
• | a $354 million increase in depreciation and amortization expense primarily due to additional plant
in service and new depreciation rates associated with the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases and Duke Energy Florida's Citrus County CC being placed in service; |
• | an $84 million increase in fuel used in electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from the prior year at Duke Energy Progress; and |
• | a $57 million increase in property and other taxes primarily
due to higher property taxes for additional plant in service at Duke Energy Florida and current year property tax reassessments at Duke Energy Progress. |
MD&A | SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE |
• | a
$262 million decrease in impairment charges primarily due to the impacts associated with the prior year Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases; and |
• | a $194 million decrease in operation, maintenance and other expense primarily due to lower payroll and benefit costs resulting from prior year workforce reductions and lower storm costs at Duke Energy Progress and Duke Energy Carolinas in the current year. |
MD&A | SEGMENT
RESULTS — GAS UTILITIES AND INFRASTRUCTURE |
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||||
Operating
Revenues | $ | 249 | $ | 256 | $ | (7 | ) | $ | 1,311 | $ | 1,301 | $ | 10 | ||||||||||
Operating
Expenses | |||||||||||||||||||||||
Cost of natural gas | 48 | 58 | (10 | ) | 451 | 460 | (9 | ) | |||||||||||||||
Operation,
maintenance and other | 108 | 101 | 7 | 325 | 312 | 13 | |||||||||||||||||
Depreciation
and amortization | 64 | 61 | 3 | 192 | 182 | 10 | |||||||||||||||||
Property
and other taxes | 24 | 24 | — | 84 | 81 | 3 | |||||||||||||||||
Total
operating expenses | 244 | 244 | — | 1,052 | 1,035 | 17 | |||||||||||||||||
Operating
Income | 5 | 12 | (7 | ) | 259 | 266 | (7 | ) | |||||||||||||||
Other
Income and Expenses, net | 42 | 29 | 13 | 119 | 16 | 103 | |||||||||||||||||
Interest
Expense | 29 | 25 | 4 | 86 | 78 | 8 | |||||||||||||||||
Income
Before Income Taxes | 18 | 16 | 2 | 292 | 204 | 88 | |||||||||||||||||
Income
Tax (Benefit) Expense | (8 | ) | (1 | ) | (7 | ) | — | 43 | (43 | ) | |||||||||||||
Segment
Income | $ | 26 | $ | 17 | $ | 9 | $ | 292 | $ | 161 | $ | 131 | |||||||||||
Piedmont
LDC throughput (dekatherms) | 121,378,484 | 135,403,188 | (14,024,704 | ) | 377,729,141 | 407,144,529 | (29,415,388 | ) | |||||||||||||||
Duke
Energy Midwest LDC throughput (Mcf) | 9,997,444 | 9,370,743 | 626,701 | 62,278,623 | 62,111,858 | 166,765 |
• | a $10 million decrease primarily due to lower natural gas costs passed through to customers
and lower volumes due to unfavorable weather. |
• | a $3 million increase primarily due to North Carolina and Tennessee IMR increases. |
• | a $10 million decrease in cost of natural gas primarily due to lower off-system sales natural gas costs and lower natural gas prices. |
• | a $7 million increase in operation, maintenance and other expense primarily due to increased information technology outside services costs and increased bad debt expense related to a Piedmont industrial customer; and |
• | a $3 million increase in depreciation and amortization expense primarily due to additional plant in service. |
• | a $12 million increase primarily due to North Carolina and Tennessee IMR increases; |
• | a $9 million increase primarily due to NCUC approval related
to tax reform accounting from fixed rate contracts; and |
• | a $4 million increase in pricing primarily in residential and commercial sectors in the Midwest. |
MD&A | SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE |
• | an $8 million decrease due to lower natural gas costs passed through to customers and unfavorable weather in the Midwest, partially offset by higher natural gas prices associated with off-system sales at Piedmont; and |
• | a $7 million decrease primarily due to a reduction of rates in South Carolina. |
• | a
$13 million increase in operation, maintenance and other expense primarily due to information technology outside services, higher gas operations labor costs, and increased bad debt expense related to a Piedmont industrial customer; and |
• | a $9 million decrease in cost of natural gas primarily due to lower natural gas prices in the Midwest and lower sales volumes partially offset by higher off-system sales natural gas costs at Piedmont. |
MD&A | SEGMENT RESULTS — COMMERCIAL RENEWABLES |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||||
Operating
Revenues | $ | 138 | $ | 127 | $ | 11 | $ | 362 | $ | 347 | $ | 15 | |||||||||||
Operating
Expenses | |||||||||||||||||||||||
Operation, maintenance and other | 81 | 85 | (4 | ) | 211 | 209 | 2 | ||||||||||||||||
Depreciation
and amortization | 43 | 40 | 3 | 123 | 116 | 7 | |||||||||||||||||
Property
and other taxes | 6 | 6 | — | 18 | 19 | (1 | ) | ||||||||||||||||
Impairment
charges | — | 93 | (93 | ) | — | 93 | (93 | ) | |||||||||||||||
Total
operating expenses | 130 | 224 | (94 | ) | 352 | 437 | (85 | ) | |||||||||||||||
Operating
Income (Loss) | 8 | (97 | ) | 105 | 10 | (90 | ) | 100 | |||||||||||||||
Other
Income and Expenses, net | 13 | 2 | 11 | 3 | 22 | (19 | ) | ||||||||||||||||
Interest
Expense | 35 | 21 | 14 | 78 | 66 | 12 | |||||||||||||||||
Loss
Before Income Taxes | (14 | ) | (116 | ) | 102 | (65 | ) | (134 | ) | 69 | |||||||||||||
Income
Tax Benefit | (35 | ) | (37 | ) | 2 | (94 | ) | (112 | ) | 18 | |||||||||||||
Less:
Loss Attributable to Noncontrolling Interests | (19 | ) | (17 | ) | (2 | ) | (110 | ) | (18 | ) | (92 | ) | |||||||||||
Segment
Income (Loss) | $ | 40 | $ | (62 | ) | $ | 102 | $ | 139 | $ | (4 | ) | $ | 143 | |||||||||
Renewable
plant production, GWh | 2,146 | 1,897 | 249 | 6,528 | 6,548 | (20 | ) | ||||||||||||||||
Net
proportional MW capacity in operation(a) | 3,162 | 2,976 | 186 |
(a) | Certain
projects are included in tax equity structures where investors have differing interests in the project's economic attributes. One hundred percent of the tax equity project's capacity is included in the table above. |
MD&A | SEGMENT
RESULTS — COMMERCIAL RENEWABLES |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||||
Operating
Revenues | $ | 25 | $ | 34 | $ | (9 | ) | $ | 71 | $ | 101 | $ | (30 | ) | |||||||||
Operating
Expenses | 27 | 54 | (27 | ) | 66 | 167 | (101 | ) | |||||||||||||||
Gains
(Losses) on Sales of Other Assets and Other, net | — | 3 | (3 | ) | — | (96 | ) | 96 | |||||||||||||||
Operating
(Loss) Income | (2 | ) | (17 | ) | 15 | 5 | (162 | ) | 167 | ||||||||||||||
Other
Income and Expenses, net | 24 | 40 | (16 | ) | 98 | 81 | 17 | ||||||||||||||||
Interest
Expense | 185 | 163 | 22 | 536 | 484 | 52 | |||||||||||||||||
Loss
Before Income Taxes | (163 | ) | (140 | ) | (23 | ) | (433 | ) | (565 | ) | 132 | ||||||||||||
Income
Tax Benefit | (54 | ) | (98 | ) | 44 | (132 | ) | (125 | ) | (7 | ) | ||||||||||||
Less:
Net Income Attributable to Noncontrolling Interests | — | 2 | (2 | ) | — | 6 | (6 | ) | |||||||||||||||
Less:
Preferred Dividends | 15 | — | 15 | 27 | — | 27 | |||||||||||||||||
Net
Loss | $ | (124 | ) | $ | (44 | ) | $ | (80 | ) | $ | (328 | ) | $ | (446 | ) | $ | 118 |
MD&A | DUKE
ENERGY CAROLINAS |
Nine
Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating Revenues | $ | 5,619 | $ | 5,525 | $ | 94 | |||||
Operating
Expenses | |||||||||||
Fuel used in electric generation and purchased power | 1,371 | 1,370 | 1 | ||||||||
Operation,
maintenance and other | 1,324 | 1,464 | (140 | ) | |||||||
Depreciation and amortization | 1,013 | 866 | 147 | ||||||||
Property
and other taxes | 221 | 214 | 7 | ||||||||
Impairment charges | 11 | 191 | (180 | ) | |||||||
Total
operating expenses | 3,940 | 4,105 | (165 | ) | |||||||
Losses on Sales of Other Assets and Other, net | — | (1 | ) | 1 | |||||||
Operating
Income | 1,679 | 1,419 | 260 | ||||||||
Other Income and Expenses, net | 106 | 108 | (2 | ) | |||||||
Interest
Expense | 346 | 323 | 23 | ||||||||
Income Before Income Taxes | 1,439 | 1,204 | 235 | ||||||||
Income
Tax Expense | 255 | 268 | (13 | ) | |||||||
Net Income | $ | 1,184 | $ | 936 | $ | 248 |
Increase (Decrease) over prior year | 2019 | |
Residential sales | (3.2 | )% |
General
service sales | (1.8 | )% |
Industrial sales | (4.1 | )% |
Wholesale power sales | (13.4 | )% |
Joint dispatch sales | 23.0 | % |
Total sales | (2.1 | )% |
Average
number of customers | 2.2 | % |
• | a $151 million increase in retail pricing due to the impacts of the prior year North Carolina rate case and the current year South Carolina rate case;
and |
• | a $7 million increase in retail sales, net of fuel revenues, due to favorable weather in the current year. |
• | a $47 million decrease in rider revenues primarily due to excess deferred taxes and energy efficiency programs, partially offset by a decrement rider relating to nuclear decommissioning that ended in the prior year; and |
• | a
$24 million decrease in weather-normal retail sales volumes. |
• | a $180 million decrease in impairment charges primarily due to impacts of the prior year North Carolina rate order and charges related to coal ash costs in South Carolina; and |
• | a $140 million decrease in operation, maintenance and other expense primarily due to decreased labor costs and
higher storm restoration costs in the prior year. |
• | a $147 million increase in depreciation and amortization expense primarily due to additional plant in service, new depreciation rates associated with the prior year North Carolina rate case and the current year South Carolina rate case and higher amortization of deferred coal ash costs associated with the prior year North Carolina rate case. |
MD&A | DUKE
ENERGY CAROLINAS |
MD&A | PROGRESS
ENERGY |
Nine
Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating Revenues | $ | 8,558 | $ | 8,119 | $ | 439 | |||||
Operating
Expenses | |||||||||||
Fuel used in electric generation and purchased power | 3,100 | 3,019 | 81 | ||||||||
Operation,
maintenance and other | 1,813 | 1,913 | (100 | ) | |||||||
Depreciation and amortization | 1,377 | 1,183 | 194 | ||||||||
Property
and other taxes | 439 | 399 | 40 | ||||||||
Impairment charges | (25 | ) | 34 | (59 | ) | ||||||
Total
operating expenses | 6,704 | 6,548 | 156 | ||||||||
Gains on Sales of Other Assets and Other, net | — | 23 | (23 | ) | |||||||
Operating
Income | 1,854 | 1,594 | 260 | ||||||||
Other Income and Expenses, net | 106 | 128 | (22 | ) | |||||||
Interest
Expense | 650 | 626 | 24 | ||||||||
Income Before Income Taxes | 1,310 | 1,096 | 214 | ||||||||
Income
Tax Expense | 212 | 186 | 26 | ||||||||
Net Income | 1,098 | 910 | 188 | ||||||||
Less:
Net Income Attributable to Noncontrolling Interests | — | 6 | (6 | ) | |||||||
Net Income Attributable to Parent | $ | 1,098 | $ | 904 | $ | 194 |
• | a $299 million increase in retail pricing primarily due to the impacts of the prior year North Carolina rate case and current year South Carolina rate case at Duke Energy Progress, Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service and annual increases from the 2017 Settlement Agreement; |
• | a
$76 million increase in fuel revenues primarily related to increased fuel cost recovery due to extreme weather in the prior year at Duke Energy Progress, partially offset by a decrease in fuel and capacity rates billed to retail customers at Duke Energy Florida; |
• | a $56 million increase in wholesale power revenues, net of fuel, primarily due to increased demand; |
• | a $17 million increase in retail sales, net of fuel revenues, due to favorable weather in the current year at Duke Energy Florida; and |
• | a
$17 million increase in other revenues primarily due to increased transmission revenues and non-regulated products and services revenues at Duke Energy Florida. |
• | a $32 million decrease in retail rider revenues primarily related to decreased revenue requirements in the current year. |
• | a $194 million increase in depreciation and amortization
expense primarily due to higher amortization of deferred coal ash costs, new depreciation rates associated with the prior year Duke Energy Progress North Carolina rate case and Duke Energy Florida's base rate adjustments related to Citrus County CC being placed in service; |
• | an $81 million increase in fuel used in electric generation and purchased power primarily due to an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from the prior year at Duke Energy Progress, partially offset by lower purchased power and lower fuel costs, net of deferrals, at Duke Energy Florida; and |
• | a
$40 million increase in property and other taxes primarily due to current year property tax reassessments and a favorable sales and use tax credit in the prior year at Duke Energy Progress, and higher property taxes for additional plant in service at Duke Energy Florida. |
MD&A | PROGRESS ENERGY |
• | a
$100 million decrease in operation, maintenance and other expense primarily due to lower storm costs, reduced outage costs, and lower employee benefit costs, partially offset by increased vegetation management costs at Duke Energy Florida; and |
• | a $59 million decrease in impairment charges primarily due to prior year impacts associated with the North Carolina rate case at Duke Energy Progress and a reduction of a prior year impairment at Duke Energy Florida's Citrus County CC. |
MD&A | DUKE ENERGY PROGRESS |
Nine Months Ended September 30, | |||||||||||
(in
millions) | 2019 | 2018 | Variance | ||||||||
Operating Revenues | $ | 4,559 | $ | 4,333 | $ | 226 | |||||
Operating
Expenses | |||||||||||
Fuel used in electric generation and purchased power | 1,571 | 1,452 | 119 | ||||||||
Operation,
maintenance and other | 1,070 | 1,187 | (117 | ) | |||||||
Depreciation and amortization | 855 | 723 | 132 | ||||||||
Property
and other taxes | 131 | 115 | 16 | ||||||||
Impairment charges | — | 33 | (33 | ) | |||||||
Total
operating expenses | 3,627 | 3,510 | 117 | ||||||||
Gains on Sales of Other Assets and Other, net | — | 9 | (9 | ) | |||||||
Operating
Income | 932 | 832 | 100 | ||||||||
Other Income and Expenses, net | 75 | 61 | 14 | ||||||||
Interest
Expense | 232 | 241 | (9 | ) | |||||||
Income Before Income Taxes | 775 | 652 | 123 | ||||||||
Income
Tax Expense | 125 | 120 | 5 | ||||||||
Net Income | $ | 650 | $ | 532 | $ | 118 |
Increase (Decrease) over prior period | 2019 | |
Residential sales | (4.1 | )% |
General
service sales | (1.6 | )% |
Industrial sales | 1.6 | % |
Wholesale power sales | (2.2 | )% |
Joint dispatch sales | (0.3 | )% |
Total sales | (1.3 | )% |
Average
number of customers | 1.3 | % |
• | a $101 million increase in fuel revenues primarily related to increased fuel cost recovery due to extreme weather in the prior year; |
• | a
$91 million increase in retail pricing due to the impacts of the prior year North Carolina rate case and the current year South Carolina rate case; and |
• | a $47 million increase in wholesale power revenues, net of fuel, primarily due to coal ash cost recovery in the current year. |
• | a $17 million decrease primarily due to the return of excess deferred incomes taxes created by the reduction in the corporate income tax rate, partially offset by increase in rider
revenues related to energy efficiency programs. |
• | a $132 million increase in depreciation and amortization expense primarily due to higher amortization of deferred coal ash costs and new depreciation rates associated with the prior year North Carolina and current year South Carolina rate cases, partially offset by the amortization credit for the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement increase from prior year; |
• | a
$119 million increase in fuel used in electric generation and purchased power primarily due to a higher deferred fuel balance and an increase in the North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirement from prior year, partially offset by lower demand and changes in generation mix; and |
• | a $16 million increase in property and other taxes primarily due to current year property tax reassessments and a favorable sales and use tax credit in the prior year. |
MD&A | DUKE
ENERGY PROGRESS |
• | a $117 million decrease in operation, maintenance and other expense primarily due to lower storm costs in current year, reduced outage costs and lower employee benefit costs; and |
• | a $33 million decrease in impairment charges due to prior year impacts associated with the North Carolina rate case. |
MD&A | DUKE
ENERGY FLORIDA |
Nine
Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating Revenues | $ | 3,987 | $ | 3,780 | $ | 207 | |||||
Operating
Expenses | |||||||||||
Fuel used in electric generation and purchased power | 1,529 | 1,567 | (38 | ) | |||||||
Operation,
maintenance and other | 730 | 719 | 11 | ||||||||
Depreciation and amortization | 522 | 460 | 62 | ||||||||
Property
and other taxes | 309 | 284 | 25 | ||||||||
Impairment charges | (25 | ) | 1 | (26 | ) | ||||||
Total
operating expenses | 3,065 | 3,031 | 34 | ||||||||
Operating Income | 922 | 749 | 173 | ||||||||
Other
Income and Expenses, net | 39 | 75 | (36 | ) | |||||||
Interest Expense | 246 | 210 | 36 | ||||||||
Income
Before Income Taxes | 715 | 614 | 101 | ||||||||
Income Tax Expense | 129 | 100 | 29 | ||||||||
Net
Income | $ | 586 | $ | 514 | $ | 72 |
Increase (Decrease) over prior period | 2019 | |
Residential sales | 2.2 | % |
General service sales | 1.0 | % |
Industrial
sales | (6.3 | )% |
Wholesale and other | 32.4 | % |
Total sales | 2.1 | % |
Average number of customers | 1.6 | % |
• | a $208 million increase in retail pricing due to base rate adjustments related to Citrus County CC being placed in service, annual increases from the 2017 Settlement Agreement and the Solar Base Rate Adjustment; |
• | a $17 million increase in retail sales, net of fuel revenues, due to favorable weather in the
current year; |
• | a $17 million increase in other revenues primarily due to increased transmission revenues and non-regulated products and services revenues; and |
• | a $9 million increase in wholesale power revenues, net of fuel, primarily due to increased demand. |
• | a
$25 million decrease in fuel and capacity revenues primarily due to a decrease in fuel and capacity rates billed to retail customers; and |
• | a $22 million decrease in retail rider revenues primarily related to decreased revenue requirements in the current year. |
• | a $62 million increase in depreciation and amortization expense primarily due to base rate adjustments related to Citrus County CC being
placed in service, other additional plant in service and increases resulting from the 2018 Crystal River Unit 3 nuclear decommissioning cost study; |
• | a $25 million increase in property and other taxes primarily due to higher property taxes from additional plant in service; and |
• | an $11 million increase in operation, maintenance and other expense primarily due to increased vegetation management costs and Hurricane Dorian costs, partially offset by lower outage costs. |
MD&A | DUKE
ENERGY FLORIDA |
• | a $38 million decrease in fuel used in electric generation and purchased power primarily due to lower purchased power and lower fuel costs, net of deferrals; and |
• | a $26 million decrease in impairment charges primarily due to a reduction of a prior year impairment at Citrus County CC. |
Nine Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating
Revenues | |||||||||||
Regulated electric | $ | 1,099 | $ | 1,055 | $ | 44 | |||||
Regulated
natural gas | 354 | 361 | (7 | ) | |||||||
Nonregulated electric and other | — | 36 | (36 | ) | |||||||
Total
operating revenues | 1,453 | 1,452 | 1 | ||||||||
Operating Expenses | |||||||||||
Fuel
used in electric generation and purchased power – regulated | 293 | 284 | 9 | ||||||||
Fuel used in electric generation and purchased power – nonregulated | — | 43 | (43 | ) | |||||||
Cost
of natural gas | 68 | 73 | (5 | ) | |||||||
Operation, maintenance and other | 378 | 337 | 41 | ||||||||
Depreciation
and amortization | 199 | 196 | 3 | ||||||||
Property and other taxes | 229 | 218 | 11 | ||||||||
Total
operating expenses | 1,167 | 1,151 | 16 | ||||||||
Losses on Sales of Other Assets and Other, net | — | (106 | ) | 106 | |||||||
Operating
Income | 286 | 195 | 91 | ||||||||
Other Income and Expenses, net | 19 | 17 | 2 | ||||||||
Interest
Expense | 81 | 68 | 13 | ||||||||
Income Before Income Taxes | 224 | 144 | 80 | ||||||||
Income
Tax Expense | 34 | 23 | 11 | ||||||||
Net Income | $ | 190 | $ | 121 | $ | 69 |
MD&A | DUKE
ENERGY OHIO |
Electric | Natural
Gas | |||
Increase (Decrease) over prior year | 2019 | 2019 | ||
Residential sales | (4.7 | )% | (1.2 | )% |
General service sales | (2.6 | )% | 0.8 | % |
Industrial
sales | (1.4 | )% | 1.9 | % |
Wholesale electric power sales | 46.8 | % | n/a | |
Other natural gas sales | n/a | 1.4 | % | |
Total
sales | (1.2 | )% | 0.3 | % |
Average number of customers | 0.6 | % | 0.8 | % |
• | a $52 million increase in retail pricing primarily due to rate case impacts; and |
• | a $15 million increase in point-to-point transmission revenues. |
• | a $28 million decrease in fuel
related revenues primarily due to a decrease in price; |
• | a $15 million decrease in FTR rider revenues; |
• | a $14 million decrease in rider revenues primarily related to the implementation of new base rates; and |
• | a $9 million decrease in OVEC revenues. |
• | a $41 million increase in operations, maintenance and other expense primarily due to the FERC approved settlement refund of certain transmission costs previously billed by PJM recorded in 2018; and |
• | an $11 million increase in property and other taxes primarily due to additional plant in service. |
• | a
$34 million decrease in fuel used in electric generation and purchased power expense due to the prior year outage at East Bend Station and the deferral of OVEC related purchased power costs. |
MD&A | DUKE ENERGY INDIANA |
Nine
Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating Revenues | $ | 2,289 | $ | 2,288 | $ | 1 | |||||
Operating
Expenses | |||||||||||
Fuel used in electric generation and purchased power | 720 | 730 | (10 | ) | |||||||
Operation,
maintenance and other | 569 | 576 | (7 | ) | |||||||
Depreciation and amortization | 393 | 386 | 7 | ||||||||
Property
and other taxes | 55 | 56 | (1 | ) | |||||||
Impairment charges | — | 30 | (30 | ) | |||||||
Total
operating expenses | 1,737 | 1,778 | (41 | ) | |||||||
Operating Income | 552 | 510 | 42 | ||||||||
Other
Income and Expenses, net | 35 | 36 | (1 | ) | |||||||
Interest Expense | 111 | 125 | (14 | ) | |||||||
Income
Before Income Taxes | 476 | 421 | 55 | ||||||||
Income Tax Expense | 113 | 104 | 9 | ||||||||
Net
Income | $ | 363 | $ | 317 | $ | 46 |
Increase (Decrease) over prior year | 2019 | |
Residential sales | (4.9 | )% |
General service sales | (2.5 | )% |
Industrial
sales | (2.3 | )% |
Wholesale power sales | (28.9 | )% |
Total sales | (6.6 | )% |
Average number of customers | 1.2 | % |
• | a $25 million increase in revenues primarily due to higher TDSIC rider revenues. |
• | an $18 million decrease in wholesale power revenues primarily due to the expiration of a contract with a wholesale
customer; and |
• | an $8 million decrease in weather-normal retail sales volumes. |
• | a $30 million decrease in impairments primarily due to the prior year Edwardsport IGCC settlement; and |
• | a
$10 million decrease in fuel used in electric generation and purchased power expense primarily due to lower coal and natural gas costs, partially offset by higher amortization of deferred fuel costs and higher purchase power fuel clause. |
MD&A | DUKE
ENERGY INDIANA |
Nine Months Ended September 30, | |||||||||||
(in millions) | 2019 | 2018 | Variance | ||||||||
Operating
Revenues | $ | 956 | $ | 940 | $ | 16 | |||||
Operating Expenses | |||||||||||
Cost
of natural gas | 384 | 387 | (3 | ) | |||||||
Operation, maintenance and other | 241 | 252 | (11 | ) | |||||||
Depreciation
and amortization | 127 | 118 | 9 | ||||||||
Property and other taxes | 39 | 36 | 3 | ||||||||
Total
operating expenses | 791 | 793 | (2 | ) | |||||||
Operating Income | 165 | 147 | 18 | ||||||||
Other
Income and Expenses, net | 19 | 15 | 4 | ||||||||
Interest Expense | 65 | 60 | 5 | ||||||||
Income
Before Income Taxes | 119 | 102 | 17 | ||||||||
Income Tax Expense | 22 | 21 | 1 | ||||||||
Net
Income | $ | 97 | $ | 81 | $ | 16 |
Increase (Decrease) over prior year | 2019 | |
Residential deliveries | (7.5 | )% |
Commercial deliveries | (4.2 | )% |
Industrial
deliveries | 2.9 | % |
Power generation deliveries | (10.5 | )% |
For resale | 5.9 | % |
Total throughput deliveries | (7.2 | )% |
Secondary market volumes | 2.0 | % |
Average
number of customers | 1.3 | % |
• | a $12 million increase primarily due to North Carolina and Tennessee IMR increases; and |
• | a $9 million increase primarily due to NCUC approval related to tax reform accounting from fixed rate contracts. |
MD&A | PIEDMONT |
• | a $7 million decrease primarily due to a reduction of rates in South Carolina. |
• | an $11 million decrease in operations, maintenance and other expense primarily due to lower labor and information technology outside services costs and a portion of rent expense being charged to shared services in the current year. |
• | a $9 million increase in depreciation and amortization expense primarily due to additional plant in service. |
Nine
Months Ended | ||||||||
September 30, | ||||||||
(in millions) | 2019 | 2018 | ||||||
Cash flows provided by (used in): | ||||||||
Operating
activities | $ | 5,637 | $ | 5,667 | ||||
Investing activities | (8,633 | ) | (7,270 | ) | ||||
Financing
activities | 2,987 | 1,547 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (9 | ) | (56 | ) | ||||
Cash,
cash equivalents and restricted cash at beginning of period | 591 | 505 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 582 | $ | 449 |
MD&A | LIQUIDITY
AND CAPITAL RESOURCES |
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
(in
millions) | 2019 | 2018 | Variance | |||||||||
Net income | $ | 2,964 | $ | 2,190 | $ | 774 | ||||||
Non-cash
adjustments to net income | 4,389 | 5,206 | (817 | ) | ||||||||
Contributions to qualified pension plans | (77 | ) | (141 | ) | 64 | |||||||
Payments
for asset retirement obligations | (582 | ) | (389 | ) | (193 | ) | ||||||
Payment for disposal of other assets | — | (105 | ) | 105 | ||||||||
Working
capital | (1,057 | ) | (1,094 | ) | 37 | |||||||
Net cash provided by operating activities | $ | 5,637 | $ | 5,667 | $ | (30 | ) |
• | a $193 million increase in payments for asset retirement obligations. |
• | a $64 million decrease in contributions to qualified pension plans; and |
• | a
$105 million payment for disposal of Beckjord in the prior year. |
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
(in
millions) | 2019 | 2018 | Variance | |||||||||
Capital, investment and acquisition expenditures | $ | (8,348 | ) | $ | (7,050 | ) | $ | (1,298 | ) | |||
Other
investing items | (285 | ) | (220 | ) | (65 | ) | ||||||
Net cash used in investing activities | $ | (8,633 | ) | $ | (7,270 | ) | $ | (1,363 | ) |
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
(in
millions) | 2019 | 2018 | Variance | |||||||||
Issuances of long-term debt, net | $ | 3,394 | $ | 1,832 | $ | 1,562 | ||||||
Issuances
of common stock | 41 | 834 | (793 | ) | ||||||||
Issuances of preferred stock | 1,963 | — | 1,963 | |||||||||
Notes
payable and commercial paper | (1,019 | ) | 674 | (1,693 | ) | |||||||
Dividends paid | (1,990 | ) | (1,835 | ) | (155 | ) | ||||||
Contributions
from noncontrolling interests | 615 | — | 615 | |||||||||
Other financing items | (17 | ) | 42 | (59 | ) | |||||||
Net
cash provided by financing activities | $ | 2,987 | $ | 1,547 | $ | 1,440 |
• | a
$1,963 million increase in proceeds from the issuance of preferred stock; |
• | a $1,562 million increase in proceeds from net issuances of long-term debt primarily due to the timing of issuances and redemptions of long-term debt; |
• | a $415 million increase related to the sale of a noncontrolling interest in the Commercial Renewables segment; and |
• | a
$200 million increase related to contributions from noncontrolling interests for tax equity financing activity in the Commercial Renewables segment. |
MD&A | LIQUIDITY AND CAPITAL RESOURCES |
• | a
$1,693 million decrease in net proceeds from issuances of notes payable and commercial paper primarily due to the use of proceeds from the preferred stock issuance and increased long-term debt issuances to pay down outstanding commercial paper; and |
• | a $793 million decrease in proceeds from the issuance of common stock due primarily to prior year issuances under equity forward agreements. |
MD&A | OTHER MATTERS |
OTHER
INFORMATION |
EXHIBITS |
Duke | Duke | Duke | Duke | Duke | |||||||||||||
Exhibit | Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||
Number | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | |||||||||
3.1 | X | ||||||||||||||||
4.1 | X | ||||||||||||||||
4.2 | X | ||||||||||||||||
*31.1.1 | X | ||||||||||||||||
*31.1.2 | X | ||||||||||||||||
*31.1.3 | X | ||||||||||||||||
*31.1.4 | X | ||||||||||||||||
*31.1.5 | X | ||||||||||||||||
*31.1.6 | X | ||||||||||||||||
*31.1.7 | X | ||||||||||||||||
*31.1.8 | X | ||||||||||||||||
*31.2.1 | X | ||||||||||||||||
*31.2.2 | X | ||||||||||||||||
*31.2.3 | X | ||||||||||||||||
*31.2.4 | X | ||||||||||||||||
*31.2.5 | X | ||||||||||||||||
*31.2.6 | X |
EXHIBITS |
*31.2.7 | X | ||||||||||||||||
*31.2.8 | X | ||||||||||||||||
*32.1.1 | X | ||||||||||||||||
*32.1.2 | X | ||||||||||||||||
*32.1.3 | X | ||||||||||||||||
*32.1.4 | X | ||||||||||||||||
*32.1.5 | X | ||||||||||||||||
*32.1.6 | X | ||||||||||||||||
*32.1.7 | X | ||||||||||||||||
*32.1.8 | X | ||||||||||||||||
*32.2.1 | X | ||||||||||||||||
*32.2.2 | X | ||||||||||||||||
*32.2.3 | X | ||||||||||||||||
*32.2.4 | X | ||||||||||||||||
*32.2.5 | X | ||||||||||||||||
*32.2.6 | X | ||||||||||||||||
*32.2.7 | X | ||||||||||||||||
*32.2.8 | X | ||||||||||||||||
*101.INS | 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 |
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 |
SIGNATURES |
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: | /s/ STEVEN K. YOUNG | |
Steven
K. Young Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||
Date: | /s/ DWIGHT L. JACOBS | |
Dwight L.
Jacobs Senior Vice President, Chief Accounting Officer, Tax and Controller (Principal Accounting Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/31/25 | ||||
12/31/24 | ||||
9/16/24 | ||||
6/15/24 | ||||
12/31/22 | ||||
11/1/22 | ||||
12/31/20 | ||||
12/2/20 | ||||
9/1/20 | ||||
8/1/20 | ||||
3/31/20 | 10-Q, 10-Q/A | |||
3/16/20 | 8-K | |||
1/1/20 | ||||
12/31/19 | 10-K, 11-K, 5, 8-K | |||
12/1/19 | ||||
11/27/19 | 4 | |||
11/18/19 | 424B3, 424B5, 8-K | |||
Filed on: | 11/8/19 | 424B5, 8-K | ||
11/1/19 | ||||
10/31/19 | ||||
10/30/19 | 4, 8-K | |||
10/28/19 | 4, S-3ASR | |||
10/23/19 | ||||
10/21/19 | ||||
10/18/19 | ||||
10/11/19 | ||||
10/4/19 | ||||
10/2/19 | 3 | |||
10/1/19 | 3 | |||
For Period end: | 9/30/19 | 4, 8-K | ||
9/27/19 | 8-K | |||
9/25/19 | 424B5, 8-K, FWP | |||
9/24/19 | ||||
9/23/19 | 424B3, S-3ASR | |||
9/17/19 | ||||
9/16/19 | ||||
9/15/19 | ||||
9/13/19 | 10-D | |||
9/12/19 | 8-K | |||
9/11/19 | ||||
9/9/19 | 424B5, 8-K, FWP | |||
9/6/19 | ||||
9/3/19 | 4 | |||
8/28/19 | 4 | |||
8/27/19 | ||||
8/26/19 | 4 | |||
8/19/19 | ||||
8/16/19 | ||||
8/13/19 | 424B5 | |||
8/7/19 | ||||
8/2/19 | ||||
8/1/19 | ||||
7/31/19 | ||||
7/26/19 | ||||
7/25/19 | ||||
7/23/19 | ||||
7/22/19 | ||||
7/17/19 | ||||
7/12/19 | ||||
7/10/19 | 4 | |||
7/2/19 | 8-K | |||
7/1/19 | ||||
6/30/19 | 10-Q | |||
6/26/19 | 3, 4, 8-K | |||
6/25/19 | ||||
6/19/19 | ||||
6/16/19 | ||||
6/14/19 | ||||
6/13/19 | ||||
6/11/19 | ||||
6/10/19 | ||||
6/5/19 | 424B5 | |||
6/1/19 | ||||
5/31/19 | ||||
5/29/19 | 8-K | |||
5/24/19 | 8-K | |||
5/21/19 | 4, 424B5, 8-K, FWP | |||
5/20/19 | 4 | |||
5/14/19 | ||||
5/13/19 | ||||
5/10/19 | ||||
5/9/19 | 10-Q, 8-K | |||
5/8/19 | 8-K | |||
4/30/19 | 8-K | |||
4/26/19 | ||||
4/24/19 | ||||
4/16/19 | ||||
4/11/19 | 8-K | |||
4/10/19 | PX14A6G | |||
4/9/19 | PX14A6G | |||
4/5/19 | ||||
4/3/19 | 4 | |||
4/2/19 | ||||
4/1/19 | 8-K | |||
3/31/19 | 10-Q | |||
3/29/19 | 8-A12B, 8-K, CERT | |||
3/28/19 | ||||
3/27/19 | ||||
3/25/19 | 424B5, 8-K, FWP, POSASR | |||
3/22/19 | ||||
3/21/19 | 8-K, DEF 14A, DEFA14A | |||
3/20/19 | ||||
3/15/19 | 10-D, 4 | |||
3/13/19 | ||||
3/12/19 | ||||
3/11/19 | 8-K | |||
3/8/19 | ||||
3/5/19 | 424B5 | |||
3/2/19 | ||||
3/1/19 | 10-D, 3, 4 | |||
2/21/19 | 4 | |||
2/20/19 | 4, 4/A | |||
2/14/19 | 8-K | |||
2/13/19 | 4 | |||
2/6/19 | ||||
2/5/19 | ||||
1/30/19 | ||||
1/29/19 | ||||
1/28/19 | ||||
1/25/19 | ||||
1/18/19 | ||||
1/11/19 | ||||
1/9/19 | 3, 4 | |||
1/8/19 | 8-K | |||
1/2/19 | ||||
1/1/19 | ||||
12/31/18 | 10-K, 11-K | |||
12/28/18 | ||||
12/27/18 | ||||
12/22/18 | ||||
12/21/18 | 4, 424B3 | |||
12/19/18 | 4 | |||
12/18/18 | ||||
11/29/18 | ||||
11/14/18 | ||||
11/8/18 | 8-K | |||
11/5/18 | 424B5, 8-K, FWP | |||
10/31/18 | 4 | |||
10/30/18 | ||||
10/24/18 | ||||
10/19/18 | ||||
10/16/18 | ||||
10/10/18 | ||||
10/8/18 | ||||
9/30/18 | 10-Q | |||
9/28/18 | ||||
9/20/18 | ||||
9/18/18 | ||||
9/10/18 | ||||
8/31/18 | ||||
8/28/18 | ||||
8/27/18 | ||||
8/20/18 | ||||
8/17/18 | ||||
8/9/18 | 8-K | |||
8/8/18 | ||||
8/1/18 | ||||
7/31/18 | ||||
7/27/18 | ||||
7/25/18 | ||||
7/24/18 | ||||
7/20/18 | ||||
7/5/18 | ||||
7/3/18 | ||||
6/30/18 | 10-Q | |||
6/25/18 | 8-K | |||
6/22/18 | 8-K | |||
6/18/18 | 424B3, 424B5, 8-K, FWP | |||
6/1/18 | 3, 8-K | |||
5/31/18 | ||||
5/30/18 | ||||
5/15/18 | 4 | |||
5/11/18 | ||||
5/8/18 | ||||
4/30/18 | ||||
4/17/18 | ||||
4/13/18 | ||||
4/1/18 | ||||
3/31/18 | 10-Q | |||
3/23/18 | ||||
3/16/18 | ||||
2/28/18 | 4 | |||
2/23/18 | 10-K/A, 8-K | |||
2/20/18 | 424B5, 8-K | |||
2/15/18 | ||||
2/6/18 | ||||
1/11/18 | ||||
1/10/18 | ||||
1/1/18 | ||||
12/31/17 | 10-K, 10-K/A, 11-K, 5 | |||
12/28/17 | ||||
12/5/17 | ||||
11/22/17 | 8-K | |||
11/21/17 | ||||
9/27/17 | ||||
9/26/17 | ||||
8/25/17 | 8-K | |||
7/31/17 | ||||
6/15/17 | ||||
6/1/17 | 8-K | |||
5/16/17 | ||||
5/10/17 | 8-K | |||
4/26/17 | ||||
4/14/17 | ||||
4/1/17 | ||||
3/31/17 | 10-K, 10-Q | |||
3/15/17 | 10-D, 8-K, NO ACT | |||
2/13/17 | ||||
2/3/17 | ||||
1/27/17 | ||||
1/20/17 | ||||
12/31/16 | 10-K, 10-QT, 11-K, 5 | |||
12/22/16 | 10-K, 4 | |||
10/26/16 | UPLOAD | |||
9/28/16 | ||||
8/19/16 | 8-K | |||
6/30/16 | 10-Q | |||
6/15/16 | 4, 424B3, 8-K | |||
6/13/16 | 4, 8-K | |||
4/22/16 | 8-K | |||
3/28/16 | 4 | |||
1/6/16 | 4, 4/A, 8-K | |||
12/22/15 | 8-K, DEFA14A | |||
11/4/15 | S-8 POS | |||
4/17/15 | PX14A6G | |||
1/5/15 | ||||
9/2/14 | 4, 8-K | |||
3/28/14 | ||||
11/13/13 | 4 | |||
8/16/13 | 4 | |||
List all Filings |