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Duke Energy CORP - Quarter Report: 2022 March (Form 10-Q)


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________to_________
Commission file numberRegistrant, State of Incorporation or Organization,
Address of Principal Executive Offices and Telephone Number
IRS Employer Identification Number
duk-20220331_g1.jpg
1-32853
DUKE ENERGY CORPORATION
20-2777218
(a Delaware corporation)
526 South Church Street
Charlotte, North Carolina 28202-1803
704-382-3853
1-4928
DUKE ENERGY CAROLINAS, LLC
56-0205520
(a North Carolina limited liability company)
526 South Church Street
Charlotte, North Carolina 28202-1803
704-382-3853
1-15929
PROGRESS ENERGY, INC.
56-2155481
(a North Carolina corporation)
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
704-382-3853
1-3382
DUKE ENERGY PROGRESS, LLC
56-0165465
(a North Carolina limited liability company)
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
704-382-3853
1-3274
DUKE ENERGY FLORIDA, LLC
59-0247770
(a Florida limited liability company)
299 First Avenue North
St. Petersburg, Florida 33701
704-382-3853
1-1232
DUKE ENERGY OHIO, INC.
31-0240030
(an Ohio corporation)
139 East Fourth Street
Cincinnati, Ohio 45202
704-382-3853
1-3543
DUKE ENERGY INDIANA, LLC
35-0594457
(an Indiana limited liability company)
1000 East Main Street
Plainfield, Indiana 46168
704-382-3853
1-6196
PIEDMONT NATURAL GAS COMPANY, INC.
56-0556998
(a North Carolina corporation)
4720 Piedmont Row Drive
Charlotte, North Carolina 28210
704-364-3120





SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of each exchange on
Registrant    Title of each class    Trading symbols        which registered
Duke Energy    Common Stock, $0.001 par value    DUK    New York Stock Exchange LLC

Duke Energy    5.625% Junior Subordinated Debentures due    DUKB    New York Stock Exchange LLC
September 15, 2078
Duke Energy    Depositary Shares, each representing a 1/1,000th    DUK PR A    New York Stock Exchange LLC
interest in a share of 5.75% Series A Cumulative
Redeemable Perpetual Preferred Stock, par value
$0.001 per share
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Duke Energy Corporation (Duke Energy)YesNoDuke Energy Florida, LLC (Duke Energy Florida)YesNo
Duke Energy Carolinas, LLC (Duke Energy Carolinas)YesNoDuke Energy Ohio, Inc. (Duke Energy Ohio)YesNo
Progress Energy, Inc. (Progress Energy)YesNoDuke Energy Indiana, LLC (Duke Energy Indiana)YesNo
Duke Energy Progress, LLC (Duke Energy Progress)YesNoPiedmont Natural Gas Company, Inc. (Piedmont)YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Duke EnergyYesNoDuke Energy FloridaYesNo
Duke Energy CarolinasYesNoDuke Energy OhioYesNo
Progress EnergyYesNoDuke Energy IndianaYesNo
Duke Energy ProgressYesNoPiedmontYesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Duke EnergyLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Duke Energy CarolinasLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Progress EnergyLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Duke Energy ProgressLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Duke Energy FloridaLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Duke Energy OhioLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
Duke Energy IndianaLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
PiedmontLarge Accelerated FilerAccelerated filerNon-accelerated FilerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Duke EnergyYes
NoDuke Energy FloridaYes
No
Duke Energy CarolinasYes
NoDuke Energy OhioYes
No
Progress EnergyYes
NoDuke Energy IndianaYes
No
Duke Energy ProgressYes
NoPiedmontYes
No
Number of shares of common stock outstanding at April 30, 2022:
RegistrantDescriptionShares
Duke EnergyCommon stock, $0.001 par value769,900,482



This combined Form 10-Q is filed separately by eight registrants: Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont (collectively the Duke Energy Registrants). Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.
Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and are therefore filing this form with the reduced disclosure format specified in General Instructions H(2) of Form 10-Q.



TABLE OF CONTENTS
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 – Debt and Credit Facilities
Note 6 – Goodwill
Note 7 – Related Party Transactions
Note 8 – Derivatives and Hedging
Note 9 – Investments in Debt and Equity Securities
Note 10 – Fair Value Measurements
Note 11 – Variable Interest Entities
Note 12 – Revenue
Note 13 – Stockholders' Equity
Note 14 – Employee Benefit Plans
Note 15 – Income Taxes
Note 16 – Subsequent Events
PART II. OTHER INFORMATION



FORWARD-LOOKING STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:
The impact of the COVID-19 pandemic;
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, asset retirement and construction costs related to carbon emissions reductions, 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 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, natural gas building and appliance electrification, 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, natural gas electrification, and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in a reduced number of customers, 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;
Changing investor, customer and other stakeholder expectations and demands including heightened emphasis on environmental, social and governance concerns;
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;
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, an individual utility's generation mix, 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;


FORWARD-LOOKING STATEMENTS

The ability to obtain adequate insurance at acceptable costs;
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);
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;
Asset or business acquisitions and dispositions, including our ability to successfully consummate the second closing of the minority investment in Duke Energy Indiana, may not yield the anticipated benefits;
The actions of activist shareholders could disrupt our operations, impact our ability to execute on our business strategy, or cause fluctuations in the trading price of our common stock; and
The ability to implement our business strategy, including its carbon emission reduction goals.
Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


GLOSSARY OF TERMS

Glossary of Terms 
The following terms or acronyms used in this Form 10-Q are defined below:
Term or AcronymDefinition
2017 SettlementSecond Revised and Restated Settlement Agreement in 2017 among Duke Energy Florida, the Florida Office of Public Counsel and other customer representatives, which replaces and supplants the 2013 Settlement
2021 SettlementSettlement Agreement in 2021 among Duke Energy Florida, the Florida Office of Public Counsel, the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PSC Phosphate and NUCOR Steel Florida, Inc.
ACPAtlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy, Inc. and Duke Energy
AFSAvailable for Sale
AFUDCAllowance for funds used during construction
AROAsset retirement obligations
BisonBison Insurance Company Limited
CCRCoal Combustion Residuals
the companyDuke Energy Corporation and its subsidiaries
COVID-19Coronavirus Disease 2019
CRCCinergy Receivables Company, LLC
Crystal River Unit 3Crystal River Unit 3 Nuclear Plant
DEFPFDuke Energy Florida Project Finance, LLC
DEFRDuke Energy Florida Receivables, LLC
DEPRDuke Energy Progress Receivables, LLC
DERFDuke Energy Receivables Finance Company, LLC
DOEDepartment of Energy
Duke EnergyDuke Energy Corporation (collectively with its subsidiaries)
Duke Energy OhioDuke Energy Ohio, Inc.
Duke Energy ProgressDuke Energy Progress, LLC
Duke Energy CarolinasDuke Energy Carolinas, LLC
Duke Energy FloridaDuke Energy Florida, LLC
Duke Energy IndianaDuke Energy Indiana, LLC
Duke Energy RegistrantsDuke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
EDITExcess deferred income tax
EPSEarnings Per Share
ERCOTElectric Reliability Council of Texas
ETREffective tax rate
Exchange ActSecurities Exchange Act of 1934
FERCFederal Energy Regulatory Commission
FPSCFlorida Public Service Commission
FTRFinancial transmission rights
GAAPGenerally accepted accounting principles in the U.S.
GAAP Reported EarningsNet Income Available to Duke Energy Corporation Common Stockholders
GAAP Reported EPSBasic Earnings Per Share Available to Duke Energy Corporation common stockholders
GICGIC Private Limited, Singapore's sovereign wealth fund and an experienced investor in U.S. infrastructure
GWhGigawatt-hours
IRSInternal Revenue Service


GLOSSARY OF TERMS

Investment TrustsNDTF investments and grantor trusts of Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana
IURCIndiana Utility Regulatory Commission
KPSCKentucky Public Service Commission
LLCLimited Liability Company
MGPManufactured gas plant
MGP SettlementStipulation and Recommendation filed jointly by Duke Energy Ohio the staff of the PUCO, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021
MWMegawatt
MWhMegawatt-hour
NCUCNorth Carolina Utilities Commission
NDTFNuclear decommissioning trust funds
NPNSNormal purchase/normal sale
OPEBOther Post-Retirement Benefit Obligations
OVECOhio Valley Electric Corporation
PBRPerformance-Based Regulation
PiedmontPiedmont Natural Gas Company, Inc.
PJMPennsylvania-New Jersey-Maryland Interconnection
PPAPurchase Power Agreement
Progress EnergyProgress Energy, Inc.
PSCSCPublic Service Commission of South Carolina
PUCOPublic Utilities Commission of Ohio
RTORegional Transmission Organization
Subsidiary RegistrantsDuke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
the Tax ActTax Cuts and Jobs Act
TPUCTennessee Public Utility Commission
U.S.United States
VIEVariable Interest Entity



FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
(in millions, except per share amounts)20222021
Operating Revenues
Regulated electric$5,933 $5,219 
Regulated natural gas1,002 749 
Nonregulated electric and other197 182 
Total operating revenues7,132 6,150 
Operating Expenses
Fuel used in electric generation and purchased power1,817 1,443 
Cost of natural gas481 276 
Operation, maintenance and other1,630 1,402 
Depreciation and amortization1,320 1,226 
Property and other taxes392 353 
Impairment of assets and other charges215 — 
Total operating expenses5,855 4,700 
Gains on Sales of Other Assets and Other, net2 — 
Operating Income1,279 1,450 
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates25 (17)
Other income and expenses, net89 127 
Total other income and expenses114 110 
Interest Expense587 535 
Income Before Income Taxes806 1,025 
Income Tax (Benefit) Expense(14)84 
Net Income820 941 
Add: Net Loss Attributable to Noncontrolling Interests37 51 
Net Income Attributable to Duke Energy Corporation857 992 
Less: Preferred Dividends39 39 
Net Income Available to Duke Energy Corporation Common Stockholders$818 $953 
Earnings Per Share – Basic and Diluted
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted$1.08 $1.25 
Weighted Average Shares Outstanding
Basic and Diluted770 769 

See Notes to Condensed Consolidated Financial Statements
9

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Net Income$820 $941 
Other Comprehensive Income (Loss), net of tax(a)
Pension and OPEB adjustments2 
Net unrealized gains on cash flow hedges113 29 
Reclassification into earnings from cash flow hedges5 
Unrealized losses on available-for-sale securities(13)(8)
Other Comprehensive Income, net of tax107 26 
Comprehensive Income927 967 
Add: Comprehensive Loss Attributable to Noncontrolling Interests29 44 
Comprehensive Income Attributable to Duke Energy956 1,011 
Less: Preferred Dividends39 39 
Comprehensive Income Available to Duke Energy Corporation Common Stockholders$917 $972 
(a)Net of income tax impacts of approximately $32 million and $8 million for the three months ended March 31, 2022, and 2021, respectively.
See Notes to Condensed Consolidated Financial Statements
10

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$853 $343 
Receivables (net of allowance for doubtful accounts of $68 at 2022 and $46 at 2021)
1,148 1,173 
Receivables of VIEs (net of allowance for doubtful accounts of $72 at 2022 and $76 at 2021)
2,590 2,437 
Inventory3,171 3,199 
Regulatory assets (includes $105 at 2022 and 2021 related to VIEs)
2,334 2,150 
Other (includes $249 at 2022 and $256 at 2021 related to VIEs)
946 638 
Total current assets11,042 9,940 
Property, Plant and Equipment
Cost163,700 161,819 
Accumulated depreciation and amortization(51,517)(50,555)
Facilities to be retired, net133 144 
Net property, plant and equipment112,316 111,408 
Other Noncurrent Assets
Goodwill19,303 19,303 
Regulatory assets (includes $1,800 at 2022 and $1,823 at 2021 related to VIEs)
12,506 12,487 
Nuclear decommissioning trust funds9,827 10,401 
Operating lease right-of-use assets, net1,255 1,266 
Investments in equity method unconsolidated affiliates976 970 
Other (includes $111 at 2022 and $92 at 2021 related to VIEs)
3,995 3,812 
Total other noncurrent assets47,862 48,239 
Total Assets$171,220 $169,587 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$3,175 $3,629 
Notes payable and commercial paper3,262 3,304 
Taxes accrued642 749 
Interest accrued575 533 
Current maturities of long-term debt (includes $395 at 2022 and $243 at 2021 related to VIEs)
3,884 3,387 
Asset retirement obligations648 647 
Regulatory liabilities1,238 1,211 
Other 2,001 2,471 
Total current liabilities15,425 15,931 
Long-Term Debt (includes $4,687 at 2022 and $4,854 at 2021 related to VIEs)
62,196 60,448 
Other Noncurrent Liabilities
Deferred income taxes9,673 9,379 
Asset retirement obligations12,112 12,129 
Regulatory liabilities16,037 16,152 
Operating lease liabilities1,068 1,074 
Accrued pension and other post-retirement benefit costs832 855 
Investment tax credits831 833 
Other (includes $360 at 2022 and $319 at 2021 related to VIEs)
1,794 1,650 
Total other noncurrent liabilities42,347 42,072 
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2022 and 2021
973 973 
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2022 and 2021
989 989 
Common stock, $0.001 par value, 2 billion shares authorized; 770 million shares outstanding at 2022 and 769 million shares outstanding at 2021
1 
Additional paid-in capital44,364 44,371 
Retained earnings3,323 3,265 
Accumulated other comprehensive loss(204)(303)
Total Duke Energy Corporation stockholders' equity49,446 49,296 
Noncontrolling interests1,806 1,840 
Total equity51,252 51,136 
Total Liabilities and Equity$171,220 $169,587 

See Notes to Condensed Consolidated Financial Statements
11

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$820 $941 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)1,480 1,385 
Equity in (earnings) losses of unconsolidated affiliates(25)17 
Equity component of AFUDC(46)(42)
Impairment of assets and other charges215 — 
Deferred income taxes(11)86 
Payments for asset retirement obligations(119)(114)
Provision for rate refunds(31)— 
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions215 — 
Receivables5 377 
Inventory28 91 
Other current assets(327)(47)
Increase (decrease) in
Accounts payable(160)(467)
Taxes accrued(90)104 
Other current liabilities(269)(263)
Other assets(26)51 
Other liabilities136 (31)
Net cash provided by operating activities1,795 2,088 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(2,551)(2,215)
Contributions to equity method investments(17)— 
Purchases of debt and equity securities(1,516)(1,584)
Proceeds from sales and maturities of debt and equity securities1,530 1,601 
Disbursements to canceled equity method investments (855)
Other(145)(84)
Net cash used in investing activities(2,699)(3,137)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
Issuance of long-term debt3,506 608 
Issuance of common stock 
Payments for the redemption of long-term debt(1,215)(76)
Proceeds from the issuance of short-term debt with original maturities greater than 90 days 50 
Payments for the redemption of short-term debt with original maturities greater than 90 days(257)(909)
Notes payable and commercial paper213 2,046 
Contributions from noncontrolling interests23 303 
Dividends paid(799)(783)
Other(67)(59)
Net cash provided by financing activities1,404 1,185 
Net increase in cash, cash equivalents and restricted cash500 136 
Cash, cash equivalents and restricted cash at beginning of period520 556 
Cash, cash equivalents and restricted cash at end of period$1,020 $692 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$1,028 $921 

See Notes to Condensed Consolidated Financial Statements
12

FINANCIAL STATEMENTS



DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
Accumulated Other Comprehensive
 (Loss) Income
Net UnrealizedTotal
Net GainsGains (Losses)Duke Energy
CommonAdditional(Losses) onon Available-Pension and Corporation
PreferredStockCommonPaid-inRetainedCash Flowfor-Sale-OPEB Stockholders'NoncontrollingTotal
(in millions)StockSharesStockCapitalEarningsHedgesSecuritiesAdjustmentsEquityInterestsEquity
Balance at December 31, 2020$1,962 769 $$43,767 $2,471 $(167)$$(76)$47,964 $1,220 $49,184 
Net income (loss)— — — — 953 — — — 953 (51)902 
Other comprehensive income (loss)— — — — — 25 (8)19 26 
Common stock issuances, including dividend reinvestment and employee benefits— — — (3)— — — — (3)— (3)
Common stock dividends— — — — (744)— — — (744)— (744)
Contributions from noncontrolling interests, net of transaction costs(a)
— — — (3)— — — — (3)303 300 
Distributions to noncontrolling interest in subsidiaries— — — — — — — — — (7)(7)
Balance at March 31, 2021$1,962 769 $$43,761 $2,680 $(142)$(2)$(74)$48,186 $1,472 $49,658 
Balance at December 31, 2021$1,962 769 $$44,371 $3,265 $(232)$(2)$(69)$49,296 $1,840 $51,136 
Net income (loss)    818    818 (37)781 
Other comprehensive income (loss)     110 (13)2 99 8 107 
Common stock issuances, including dividend reinvestment and employee benefits 1  (7)    (7) (7)
Common stock dividends    (760)   (760) (760)
Contributions from noncontrolling interests, net of transaction costs(a)
         23 23 
Distributions to noncontrolling interest in subsidiaries         (28)(28)
Balance at March 31, 2022$1,962 770 $1 $44,364 $3,323 $(122)$(15)$(67)$49,446 $1,806 $51,252 
(a)Relates to tax equity financing activity in the Commercial Renewables segment.
See Notes to Condensed Consolidated Financial Statements
13

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$1,888 $1,716 
Operating Expenses
Fuel used in electric generation and purchased power448 422 
Operation, maintenance and other512 441 
Depreciation and amortization379 359 
Property and other taxes93 83 
Impairment of assets and other charges3 — 
Total operating expenses1,435 1,305 
Operating Income453 411 
Other Income and Expenses, net55 48 
Interest Expense141 124 
Income Before Income Taxes367 335 
Income Tax Expense27 23 
Net Income and Comprehensive Income$340 $312 

See Notes to Condensed Consolidated Financial Statements
14

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$4 $
Receivables (net of allowance for doubtful accounts of $22 at 2022 and $1 at 2021)
234 300 
Receivables of VIEs (net of allowance for doubtful accounts of $30 at 2022 and $41 at 2021)
858 844 
Receivables from affiliated companies134 190 
Notes receivable from affiliated companies492 — 
Inventory1,040 1,026 
Regulatory assets (includes $12 at 2022 and 2021 related to VIEs)
652 544 
Other (includes $5 at 2022 and $0 at 2021 related to VIEs)
246 95 
Total current assets3,660 3,006 
Property, Plant and Equipment
Cost52,423 51,874 
Accumulated depreciation and amortization(18,058)(17,854)
Facilities to be retired, net98 102 
Net property, plant and equipment34,463 34,122 
Other Noncurrent Assets
Regulatory assets (includes $217 at 2022 and $220 at 2021 related to VIEs)
3,085 2,935 
Nuclear decommissioning trust funds5,441 5,759 
Operating lease right-of-use assets, net87 92 
Other1,297 1,248 
Total other noncurrent assets9,910 10,034 
Total Assets$48,033 $47,162 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$752 $988 
Accounts payable to affiliated companies267 266 
Notes payable to affiliated companies 226 
Taxes accrued124 274 
Interest accrued140 125 
Current maturities of long-term debt (includes $10 at 2022 and $5 at 2021 related to VIEs)
1,367 362 
Asset retirement obligations251 249 
Regulatory liabilities465 487 
Other 442 546 
Total current liabilities3,808 3,523 
Long-Term Debt (includes $722 at 2022 and $703 at 2021 related to VIEs)
12,803 12,595 
Long-Term Debt Payable to Affiliated Companies300 318 
Other Noncurrent Liabilities
Deferred income taxes3,769 3,634 
Asset retirement obligations5,067 5,052 
Regulatory liabilities7,151 7,198 
Operating lease liabilities74 78 
Accrued pension and other post-retirement benefit costs48 50 
Investment tax credits286 287 
Other545 536 
Total other noncurrent liabilities16,940 16,835 
Commitments and Contingencies
Equity
Member's equity14,188 13,897 
Accumulated other comprehensive loss(6)(6)
Total equity14,182 13,891 
Total Liabilities and Equity$48,033 $47,162 

See Notes to Condensed Consolidated Financial Statements
15

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$340 $312 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)447 428 
Equity component of AFUDC(22)(16)
Impairment of assets and other charges3 — 
Deferred income taxes44 (8)
Payments for asset retirement obligations(35)(35)
Provision for rate refunds(18)— 
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions50 — 
Receivables77 156 
Receivables from affiliated companies56 
Inventory(13)(11)
Other current assets(230)(48)
Increase (decrease) in
Accounts payable(225)(255)
Accounts payable to affiliated companies(17)
Taxes accrued(150)62 
Other current liabilities56 (77)
Other assets6 43 
Other liabilities(44)(17)
Net cash provided by operating activities325 546 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(717)(622)
Purchases of debt and equity securities(1,008)(1,128)
Proceeds from sales and maturities of debt and equity securities1,008 1,128 
Notes receivable from affiliated companies(492)— 
Other(54)(43)
Net cash used in investing activities(1,263)(665)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt1,217 142 
Payments for the redemption of long-term debt(1)(33)
Notes payable to affiliated companies(226)
Distributions to parent(50)— 
Other(1)(1)
Net cash provided by financing activities939 110 
Net increase (decrease) in cash, cash equivalents and restricted cash1 (9)
Cash, cash equivalents and restricted cash at beginning of period8 21 
Cash, cash equivalents and restricted cash at end of period$9 $12 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$352 $268 

See Notes to Condensed Consolidated Financial Statements
16

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
Accumulated Other
Comprehensive
Loss
Member'sNet Losses onTotal
(in millions)EquityCash Flow HedgesEquity
Balance at December 31, 2020$13,161 $(7)$13,154 
Net income312 — 312 
Balance at March 31, 2021$13,473 $(7)$13,466 
Balance at December 31, 2021$13,897 $(6)$13,891 
Net income340  340 
Distributions to parent(50) (50)
Other1  1 
Balance at March 31, 2022$14,188 $(6)$14,182 

See Notes to Condensed Consolidated Financial Statements
17

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$2,992 $2,505 
Operating Expenses
Fuel used in electric generation and purchased power1,064 795 
Operation, maintenance and other645 601 
Depreciation and amortization536 485 
Property and other taxes152 142 
Total operating expenses2,397 2,023 
Gains on Sales of Other Assets and Other, net2 — 
Operating Income597 482 
Other Income and Expenses, net35 43 
Interest Expense211 192 
Income Before Income Taxes421 333 
Income Tax Expense67 43 
Net Income$354 $290 
Net Income$354 $290 
Other Comprehensive Income, net of tax
Net unrealized gains on cash flow hedges1 
Unrealized losses on available-for-sale securities(2)(1)
Other Comprehensive Loss, net of tax(1)— 
Comprehensive Income$353 $290 

See Notes to Condensed Consolidated Financial Statements
18

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$63 $70 
Receivables (net of allowance for doubtful accounts of $11 at 2022 and 2021)
286 247 
Receivables of VIEs (net of allowance for doubtful accounts of $40 at 2022 and $25 at 2021)
1,166 1,006 
Receivables from affiliated companies37 121 
Notes receivable from affiliated companies237 — 
Inventory1,403 1,398 
Regulatory assets (includes $93 at 2022 and 2021 related to VIEs)
1,101 1,030 
Other (includes $27 at 2022 and $39 at 2021 related to VIEs)
319 125 
Total current assets4,612 3,997 
Property, Plant and Equipment
Cost61,629 60,894 
Accumulated depreciation and amortization(19,702)(19,214)
Facilities to be retired, net24 26 
Net property, plant and equipment41,951 41,706 
Other Noncurrent Assets
Goodwill3,655 3,655 
Regulatory assets (includes $1,583 at 2022 and $1,603 at 2021 related to VIEs)
6,024 5,909 
Nuclear decommissioning trust funds4,385 4,642 
Operating lease right-of-use assets, net701 691 
Other1,336 1,242 
Total other noncurrent assets16,101 16,139 
Total Assets$62,664 $61,842 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$982 $1,099 
Accounts payable to affiliated companies364 506 
Notes payable to affiliated companies377 2,809 
Taxes accrued157 128 
Interest accrued195 192 
Current maturities of long-term debt (includes $88 at 2022 and $71 at 2021 related to VIEs)
1,095 1,082 
Asset retirement obligations268 275 
Regulatory liabilities469 478 
Other760 868 
Total current liabilities4,667 7,437 
Long-Term Debt (includes $2,246 at 2022 and $2,293 at 2021 related to VIEs)
20,412 19,591 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes4,702 4,564 
Asset retirement obligations5,821 5,837 
Regulatory liabilities5,671 5,566 
Operating lease liabilities619 606 
Accrued pension and other post-retirement benefit costs409 417 
Other531 526 
Total other noncurrent liabilities17,753 17,516 
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2022 and 2021
 — 
Additional paid-in capital9,149 9,149 
Retained earnings10,543 8,007 
Accumulated other comprehensive loss(12)(11)
Total Progress Energy, Inc. stockholders' equity19,680 17,145 
Noncontrolling interests2 
Total equity19,682 17,148 
Total Liabilities and Equity$62,664 $61,842 
See Notes to Condensed Consolidated Financial Statements
19

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$354 $290 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)625 575 
Equity component of AFUDC(12)(13)
Deferred income taxes72 79 
Payments for asset retirement obligations(68)(69)
Provision for rate refunds(16)— 
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions164 
Receivables(123)214 
Receivables from affiliated companies102 81 
Inventory(5)39 
Other current assets(224)(150)
Increase (decrease) in
Accounts payable26 (69)
Accounts payable to affiliated companies(142)32 
Taxes accrued30 23 
Other current liabilities(113)(60)
Other assets(80)(27)
Other liabilities40 (64)
Net cash provided by operating activities630 887 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(981)(796)
Purchases of debt and equity securities(531)(517)
Proceeds from sales and maturities of debt and equity securities548 537 
Notes receivable from affiliated companies(237)— 
Other(28)(59)
Net cash used in investing activities(1,229)(835)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt889 98 
Payments for the redemption of long-term debt(54)(34)
Notes payable to affiliated companies(1)(125)
Dividends to parent(250)— 
Other(3)(2)
Net cash provided by (used in) financing activities581 (63)
Net (decrease) increase in cash, cash equivalents and restricted cash(18)(11)
Cash, cash equivalents and restricted cash at beginning of period113 200 
Cash, cash equivalents and restricted cash at end of period$95 $189 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$349 $317 
See Notes to Condensed Consolidated Financial Statements
20

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
Accumulated Other Comprehensive Loss
Net GainsNet UnrealizedTotal Progress
Additional(Losses) onGains (Losses) onPension andEnergy, Inc.
Paid-inRetainedCash FlowAvailable-for-OPEBStockholders'NoncontrollingTotal
CapitalEarningsHedgesSale SecuritiesAdjustmentsEquityInterestsEquity
Balance at December 31, 2020$9,143 $7,109 $(5)$(2)$(8)$16,237 $$16,241 
Net income— 290 — — — 290 — 290 
Other comprehensive income (loss)— — (1)— — — — 
Distributions to noncontrolling interests— — — — — — (1)(1)
Other— — — — (1)— 
Balance at March 31, 2021$9,143 $7,400 $(4)$(3)$(8)$16,528 $$16,530 
Balance at December 31, 2021$9,149 $8,007 $(2)$(2)$(7)$17,145 $$17,148 
Net income 354    354  354 
Other comprehensive income (loss)  1 (2) (1) (1)
Distributions to noncontrolling interests      (1)(1)
Dividends to parent (250)   (250) (250)
Equitization of certain notes payable to affiliates 2,431    2,431  2,431 
Other 1    1  1 
Balance at March 31, 2022$9,149 $10,543 $(1)$(4)$(7)$19,680 $2 $19,682 
See Notes to Condensed Consolidated Financial Statements
21

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$1,632 $1,401 
Operating Expenses
Fuel used in electric generation and purchased power574 436 
Operation, maintenance and other391 357 
Depreciation and amortization306 285 
Property and other taxes49 49 
Total operating expenses1,320 1,127 
Gains on Sales of Other Assets and Other, net1 — 
Operating Income313 274 
Other Income and Expenses, net22 24 
Interest Expense85 69 
Income Before Income Taxes250 229 
Income Tax Expense35 19 
Net Income and Comprehensive Income$215 $210 

See Notes to Condensed Consolidated Financial Statements
22

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$42 $35 
Receivables (net of allowance for doubtful accounts of $4 at 2022 and 2021)
188 127 
Receivables of VIEs (net of allowance for doubtful accounts of $27 at 2022 and $17 at 2021)
658 574 
Receivables from affiliated companies20 65 
Notes receivable from affiliated companies328 — 
Inventory940 921 
Regulatory assets (includes $39 at 2022 and 2021 related to VIEs)
595 533 
Other (includes $14 in 2022 and $0 in 2021 related to VIEs)
200 83 
Total current assets2,971 2,338 
Property, Plant and Equipment
Cost37,361 37,018 
Accumulated depreciation and amortization(13,691)(13,387)
Facilities to be retired, net24 26 
Net property, plant and equipment23,694 23,657 
Other Noncurrent Assets
Regulatory assets (includes $711 at 2022 and $720 at 2021 related to VIEs)
4,124 4,118 
Nuclear decommissioning trust funds3,872 4,089 
Operating lease right-of-use assets, net410 389 
Other867 792 
Total other noncurrent assets9,273 9,388 
Total Assets$35,938 $35,383 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$450 $476 
Accounts payable to affiliated companies260 310 
Notes payable to affiliated companies 172 
Taxes accrued77 163 
Interest accrued76 96 
Current maturities of long-term debt (includes $32 at 2022 and $15 at 2021 related to VIEs)
568 556 
Asset retirement obligations268 274 
Regulatory liabilities378 381 
Other400 448 
Total current liabilities2,477 2,876 
Long-Term Debt (includes $1,080 at 2022 and $1,097 at 2021 related to VIEs)
10,396 9,543 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes2,275 2,208 
Asset retirement obligations5,411 5,401 
Regulatory liabilities4,898 4,868 
Operating lease liabilities372 350 
Accrued pension and other post-retirement benefit costs218 221 
Investment tax credits128 128 
Other96 87 
Total other noncurrent liabilities13,398 13,263 
Commitments and Contingencies
Equity
Member's Equity9,517 9,551 
Total Liabilities and Equity$35,938 $35,383 

See Notes to Condensed Consolidated Financial Statements
23

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$215 $210 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)350 331 
Equity component of AFUDC(7)(8)
Deferred income taxes19 
Payments for asset retirement obligations(41)(46)
Provision for rate refunds(16)— 
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions164 
Receivables(70)131 
Receivables from affiliated companies63 (20)
Inventory(19)29 
Other current assets(75)(21)
Increase (decrease) in
Accounts payable18 (62)
Accounts payable to affiliated companies(50)10 
Taxes accrued(85)(12)
Other current liabilities(67)(25)
Other assets(56)(35)
Other liabilities47 (15)
Net cash provided by operating activities390 475 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(467)(400)
Purchases of debt and equity securities(481)(382)
Proceeds from sales and maturities of debt and equity securities480 380 
Notes receivable from affiliated companies(328)— 
Other(19)(29)
Net cash used in investing activities(815)(431)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt889 98 
Payments for the:
Payments for the redemption of long-term debt(21)(2)
Notes payable to affiliated companies(172)(132)
Distributions to parent(250)— 
Other(1)(1)
Net cash provided by (used in) financing activities445 (37)
Net increase in cash, cash equivalents and restricted cash20 
Cash, cash equivalents and restricted cash at beginning of period39 39 
Cash, cash equivalents and restricted cash at end of period$59 $46 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$111 $96 

See Notes to Condensed Consolidated Financial Statements
24

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended
March 31, 2021 and 2022
(in millions)Member's Equity
Balance at December 31, 2020$9,260 
Net income210 
Balance at March 31, 2021$9,470 
Balance at December 31, 2021$9,551 
Net income215 
Distributions to parent(250)
Other1 
Balance at March 31, 2022$9,517 

See Notes to Condensed Consolidated Financial Statements
25

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$1,355 $1,101 
Operating Expenses
Fuel used in electric generation and purchased power490 359 
Operation, maintenance and other249 242 
Depreciation and amortization231 200 
Property and other taxes103 93 
Total operating expenses1,073 894 
Gains on Sales of Other Assets and Other, net1 — 
Operating Income283 207 
Other Income and Expenses, net15 18 
Interest Expense84 80 
Income Before Income Taxes214 145 
Income Tax Expense43 28 
Net Income$171 $117 
Other Comprehensive Loss, net of tax
Unrealized losses on available-for-sale securities(1)(1)
Comprehensive Income$170 $116 

See Notes to Condensed Consolidated Financial Statements
26

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$13 $23 
Receivables (net of allowance for doubtful accounts of $8 at 2022 and 2021)
97 117 
Receivables of VIEs (net of allowance for doubtful accounts of $13 at 2022 and $8 at 2021)
508 432 
Receivables from affiliated companies16 16 
Inventory463 477 
Regulatory assets (includes $54 at 2022 and 2021 related to VIEs)
505 497 
Other (includes $13 at 2022 and $39 at 2021 related to VIEs)
79 80 
Total current assets1,681 1,642 
Property, Plant and Equipment
Cost24,257 23,865 
Accumulated depreciation and amortization(6,003)(5,819)
Net property, plant and equipment18,254 18,046 
Other Noncurrent Assets
Regulatory assets (includes $872 at 2022 and $883 at 2021 related to VIEs)
1,899 1,791 
Nuclear decommissioning trust funds514 553 
Operating lease right-of-use assets, net291 302 
Other418 399 
Total other noncurrent assets3,122 3,045 
Total Assets$23,057 $22,733 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$532 $623 
Accounts payable to affiliated companies120 209 
Notes payable to affiliated companies468 199 
Taxes accrued96 51 
Interest accrued84 68 
Current maturities of long-term debt (includes $56 at 2022 and 2021 related to VIEs)
77 76 
Asset retirement obligations1 
Regulatory liabilities91 98 
Other349 408 
Total current liabilities1,818 1,733 
Long-Term Debt (includes $1,166 at 2022 and $1,196 at 2021 related to VIEs)
8,374 8,406 
Other Noncurrent Liabilities
Deferred income taxes2,503 2,434 
Asset retirement obligations411 436 
Regulatory liabilities772 698 
Operating lease liabilities247 256 
Accrued pension and other post-retirement benefit costs161 166 
Other306 309 
Total other noncurrent liabilities4,400 4,299 
Commitments and Contingencies
Equity
Member's equity8,469 8,298 
Accumulated other comprehensive loss(4)(3)
Total equity8,465 8,295 
Total Liabilities and Equity$23,057 $22,733 

See Notes to Condensed Consolidated Financial Statements
27

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$171 $117 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion273 243 
Equity component of AFUDC(5)(4)
Deferred income taxes52 74 
Payments for asset retirement obligations(28)(24)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 
Receivables(54)83 
Receivables from affiliated companies (4)
Inventory14 10 
Other current assets(72)(101)
Increase (decrease) in
Accounts payable9 (7)
Accounts payable to affiliated companies(89)23 
Taxes accrued45 
Other current liabilities(52)(41)
Other assets(24)12 
Other liabilities(6)(48)
Net cash provided by operating activities234 338 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(514)(396)
Purchases of debt and equity securities(49)(134)
Proceeds from sales and maturities of debt and equity securities69 157 
Other(10)(30)
Net cash used in investing activities(504)(403)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for the redemption of long-term debt(34)(33)
Notes payable to affiliated companies269 83 
Other(1)— 
Net cash provided by financing activities234 50 
Net decrease in cash, cash equivalents and restricted cash(36)(15)
Cash, cash equivalents and restricted cash at beginning of period62 50 
Cash, cash equivalents and restricted cash at end of period$26 $35 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$237 $222 

See Notes to Condensed Consolidated Financial Statements
28

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Losses on
Member'sAvailable-for-SaleTotal
(in millions)EquitySecuritiesEquity
Balance at December 31, 2020$7,560 $(2)$7,558 
Net income117 — 117 
Other comprehensive loss— (1)(1)
Balance at March 31, 2021$7,677 $(3)$7,674 
Balance at December 31, 2021$8,298 $(3)$8,295 
Net income171  171 
Other comprehensive loss (1)(1)
Balance at March 31, 2022$8,469 $(4)$8,465 
See Notes to Condensed Consolidated Financial Statements
29

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues
Regulated electric$412 $363 
Regulated natural gas226 169 
Total operating revenues638 532 
Operating Expenses
Fuel used in electric generation and purchased power127 82 
Cost of natural gas107 51 
Operation, maintenance and other178 108 
Depreciation and amortization80 74 
Property and other taxes101 92 
Total operating expenses593 407 
Operating Income45 125 
Other Income and Expenses, net6 
Interest Expense30 25 
Income Before Income Taxes21 105 
Income Tax (Benefit) Expense(56)14 
Net Income and Comprehensive Income$77 $91 

See Notes to Condensed Consolidated Financial Statements
30

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$15 $13 
Receivables (net of allowance for doubtful accounts of $4 at 2022 and 2021)
101 96 
Receivables from affiliated companies93 122 
Notes receivable from affiliated companies 15 
Inventory114 116 
Regulatory assets60 72 
Other23 57 
Total current assets406 491 
Property, Plant and Equipment
Cost11,818 11,725 
Accumulated depreciation and amortization(3,102)(3,106)
Generation facilities to be retired, net 
Net property, plant and equipment8,716 8,625 
Other Noncurrent Assets
Goodwill920 920 
Regulatory assets584 635 
Operating lease right-of-use assets, net18 19 
Other87 84 
Total other noncurrent assets1,609 1,658 
Total Assets$10,731 $10,774 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$379 $348 
Accounts payable to affiliated companies68 64 
Notes payable to affiliated companies123 103 
Taxes accrued219 275 
Interest accrued32 30 
Asset retirement obligations13 13 
Regulatory liabilities67 62 
Other73 82 
Total current liabilities974 977 
Long-Term Debt3,168 3,168 
Long-Term Debt Payable to Affiliated Companies25 25 
Other Noncurrent Liabilities
Deferred income taxes1,078 1,050 
Asset retirement obligations124 123 
Regulatory liabilities593 739 
Operating lease liabilities18 18 
Accrued pension and other post-retirement benefit costs109 109 
Other100 101 
Total other noncurrent liabilities2,022 2,140 
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2022 and 2021
762 762 
Additional paid-in capital3,100 3,100 
Retained earnings680 602 
Total equity4,542 4,464 
Total Liabilities and Equity$10,731 $10,774 

See Notes to Condensed Consolidated Financial Statements
31

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$77 $91 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization81 75 
Equity component of AFUDC(3)(2)
Deferred income taxes(51)12 
Provision for rate refunds5 — 
(Increase) decrease in
Receivables(5)— 
Receivables from affiliated companies15 
Inventory2 
Other current assets48 (5)
Increase (decrease) in
Accounts payable88 
Accounts payable to affiliated companies (12)
Taxes accrued(56)(55)
Other current liabilities(89)(8)
Other assets(17)(16)
Other liabilities74 
Net cash provided by operating activities169 96 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(210)(220)
Notes receivable from affiliated companies29 37 
Other(6)(10)
Net cash used in investing activities(187)(193)
CASH FLOWS FROM FINANCING ACTIVITIES
Notes payable to affiliated companies21 101 
Other(1)— 
Net cash provided by financing activities20 101 
Net increase in cash and cash equivalents2 
Cash and cash equivalents at beginning of period13 14 
Cash and cash equivalents at end of period$15 $18 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$82 $84 

See Notes to Condensed Consolidated Financial Statements
32

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
Additional
CommonPaid-inRetainedTotal
(in millions)StockCapitalEarningsEquity
Balance at December 31, 2020$762 $2,776 $397 $3,935 
Net income— — 91 91 
Balance at March 31, 2021$762 $2,776 $488 $4,026 
Balance at December 31, 2021$762 $3,100 $602 $4,464 
Net income  77 77 
Other  1 1 
Balance at March 31, 2022$762 $3,100 $680 $4,542 
See Notes to Condensed Consolidated Financial Statements
33

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$822 $745 
Operating Expenses
Fuel used in electric generation and purchased power319 217 
Operation, maintenance and other192 178 
Depreciation and amortization156 152 
Property and other taxes25 21 
Impairment of assets and other charges211 — 
Total operating expenses903 568 
Operating (Loss) Income(81)177 
Other Income and Expenses, net10 
Interest Expense45 50 
(Loss) Income Before Income Taxes(116)136 
Income Tax (Benefit) Expense(37)24 
Net (Loss) Income and Comprehensive (Loss) Income$(79)$112 

See Notes to Condensed Consolidated Financial Statements
34

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$19 $
Receivables (net of allowance for doubtful accounts of $3 at 2022 and 2021)
83 100 
Receivables from affiliated companies69 98 
Notes receivable from affiliated companies20 134 
Inventory430 418 
Regulatory assets301 277 
Other72 68 
Total current assets994 1,101 
Property, Plant and Equipment
Cost17,494 17,343 
Accumulated depreciation and amortization(5,693)(5,583)
Net property, plant and equipment11,801 11,760 
Other Noncurrent Assets
Regulatory assets1,077 1,278 
Operating lease right-of-use assets, net52 53 
Other295 296 
Total other noncurrent assets1,424 1,627 
Total Assets$14,219 $14,488 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$268 $282 
Accounts payable to affiliated companies187 221 
Taxes accrued131 73 
Interest accrued56 49 
Current maturities of long-term debt31 84 
Asset retirement obligations115 110 
Regulatory liabilities140 127 
Other108 105 
Total current liabilities1,036 1,051 
Long-Term Debt4,089 4,089 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes1,234 1,303 
Asset retirement obligations861 877 
Regulatory liabilities1,557 1,565 
Operating lease liabilities49 50 
Accrued pension and other post-retirement benefit costs168 167 
Investment tax credits177 177 
Other74 44 
Total other noncurrent liabilities4,120 4,183 
Commitments and Contingencies
Equity
Member's Equity4,824 5,015 
Total Liabilities and Equity$14,219 $14,488 

See Notes to Condensed Consolidated Financial Statements
35

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income$(79)$112 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion157 153 
Equity component of AFUDC(7)(5)
Impairment of assets and other charges211 — 
Deferred income taxes(81)(12)
Payments for asset retirement obligations(15)(10)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 
Receivables4 (9)
Receivables from affiliated companies12 — 
Inventory(12)38 
Other current assets(22)(23)
Increase (decrease) in
Accounts payable19 
Accounts payable to affiliated companies(22)(16)
Taxes accrued74 71 
Other current liabilities14 20 
Other assets(10)
Other liabilities50 12 
Net cash provided by operating activities293 336 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(212)(186)
Purchases of debt and equity securities(16)(5)
Proceeds from sales and maturities of debt and equity securities13 
Notes receivable from affiliated companies131 (1)
Other(17)(7)
Net cash used in investing activities(101)(195)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for the redemption of long-term debt(53)— 
Notes payable to affiliated companies (131)
Distributions to parent(125)— 
Other(1)— 
Net cash used in financing activities(179)(131)
Net increase in cash and cash equivalents13 10 
Cash and cash equivalents at beginning of period6 
Cash and cash equivalents at end of period$19 $17 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$82 $74 
See Notes to Condensed Consolidated Financial Statements
36

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended
March 31, 2021 and 2022
(in millions)Member's Equity
Balance at December 31, 2020$4,783 
Net income112 
Other
Balance at March 31, 2021$4,896 
Balance at December 31, 2021$5,015 
Net loss(79)
Distributions to parent(113)
Other1 
Balance at March 31, 2022$4,824 

See Notes to Condensed Consolidated Financial Statements
37

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
Operating Revenues$805 $606 
Operating Expenses
Cost of natural gas374 225 
Operation, maintenance and other95 78 
Depreciation and amortization54 48 
Property and other taxes16 14 
Total operating expenses539 365 
Operating Income266 241 
Other Income and Expenses, net13 17 
Interest Expense32 29 
Income Before Income Taxes247 229 
Income Tax Expense33 26 
Net Income and Comprehensive Income$214 $203 

See Notes to Condensed Consolidated Financial Statements
38

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2022December 31, 2021
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $17 at 2022 and $15 at 2021)
$303 $318 
Receivables from affiliated companies13 11 
Inventory51 109 
Regulatory assets133 141 
Other16 
Total current assets516 588 
Property, Plant and Equipment
Cost10,110 9,918 
Accumulated depreciation and amortization(1,952)(1,899)
Facilities to be retired, net10 11 
Net property, plant and equipment8,168 8,030 
Other Noncurrent Assets
Goodwill49 49 
Regulatory assets349 316 
Operating lease right-of-use assets, net15 16 
Investments in equity method unconsolidated affiliates97 95 
Other307 288 
Total other noncurrent assets817 764 
Total Assets$9,501 $9,382 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$170 $196 
Accounts payable to affiliated companies52 40 
Notes payable to affiliated companies360 518 
Taxes accrued79 63 
Interest accrued35 37 
Regulatory liabilities98 56 
Other73 81 
Total current liabilities867 991 
Long-Term Debt2,969 2,968 
Other Noncurrent Liabilities
Deferred income taxes831 815 
Asset retirement obligations22 22 
Regulatory liabilities1,041 1,058 
Operating lease liabilities13 14 
Accrued pension and other post-retirement benefit costs7 
Other188 158 
Total other noncurrent liabilities2,102 2,074 
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2022 and 2021
1,635 1,635 
Retained earnings1,928 1,714 
Total equity3,563 3,349 
Total Liabilities and Equity$9,501 $9,382 

See Notes to Condensed Consolidated Financial Statements
39

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$214 $203 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization55 48 
Equity component of AFUDC(1)(6)
Deferred income taxes(11)(12)
Equity in earnings from unconsolidated affiliates(2)(2)
Provision for rate refunds(2)— 
(Increase) decrease in
Receivables15 (8)
Receivables from affiliated companies(2)— 
Inventory58 31 
Other current assets7 66 
Increase (decrease) in
Accounts payable(16)(63)
Accounts payable to affiliated companies12 (21)
Taxes accrued16 45 
Other current liabilities36 (16)
Other assets(13)
Other liabilities (2)
Net cash provided by operating activities366 265 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(199)(200)
Notes receivable from affiliated companies (198)
Other(8)(8)
Net cash used in investing activities(207)(406)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 347 
Notes payable to affiliated companies(158)(530)
Capital contributions from parent 325 
Other(1)— 
Net cash (used in) provided by financing activities(159)142 
Net increase in cash and cash equivalents 
Cash and cash equivalents at beginning of period — 
Cash and cash equivalents at end of period$ $
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$87 $106 

See Notes to Condensed Consolidated Financial Statements
40

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended March 31, 2021 and 2022
CommonRetainedTotal
(in millions)StockEarningsEquity
Balance at December 31, 2020$1,310 $1,405 $2,715 
Net income— 203 203 
Contribution from parent325 — 325 
Balance at March 31, 2021$1,635 $1,608 $3,243 
Balance at December 31, 2021$1,635 $1,714 $3,349 
Net income 214 214 
Balance at March 31, 2022$1,635 $1,928 $3,563 

See Notes to Condensed Consolidated Financial Statements
41

FINANCIAL STATEMENTSORGANIZATION AND BASIS OF PRESENTATION

Index to Combined Notes to Condensed Consolidated Financial Statements
The unaudited notes to the Condensed Consolidated Financial Statements that follow are a combined presentation. The following list indicates the registrants to which the footnotes apply.
Applicable Notes
Registrant12345678910111213141516
Duke Energy
Duke Energy Carolinas
Progress Energy
Duke Energy Progress
Duke Energy Florida
Duke Energy Ohio
Duke Energy Indiana
Piedmont
Tables within the notes may not sum across due to (i) Progress Energy's consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances.
1. ORGANIZATION AND BASIS OF PRESENTATION
BASIS OF PRESENTATION
These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and notes required by GAAP for annual financial statements and should be read in conjunction with the Consolidated Financial Statements in the Duke Energy Registrants’ combined Annual Report on Form 10-K for the year ended December 31, 2021.
The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Condensed Consolidated Financial Statements. However, none of the registrants make any representations as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself.
These Condensed Consolidated Financial Statements, in the opinion of the respective companies’ management, reflect all normal recurring adjustments necessary to fairly present the financial position and results of operations of each of the Duke Energy Registrants. Amounts reported in Duke Energy’s interim Condensed Consolidated Statements of Operations and each of the Subsidiary Registrants’ interim Condensed Consolidated Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to effects of seasonal temperature variations on energy consumption, regulatory rulings, timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors.
In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
BASIS OF CONSOLIDATION
These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 11 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities.
NONCONTROLLING INTEREST
Duke Energy maintains a controlling financial interest in certain less than wholly owned nonregulated subsidiaries. As a result, Duke Energy consolidates these subsidiaries and presents the third-party investors' portion of Duke Energy's net income (loss), net assets and comprehensive income (loss) as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Condensed Consolidated Balance Sheets.
Several operating agreements of Duke Energy's subsidiaries with noncontrolling interest are subject to allocations of earnings, tax attributes and cash flows in accordance with contractual agreements that vary throughout the lives of the subsidiaries. Therefore, Duke Energy and the other investors' (the owners) interests in the subsidiaries are not fixed, and the subsidiaries apply the Hypothetical Liquidation at Book Value (HLBV) method in allocating income or loss and other comprehensive income or loss (all measured on a pretax basis) to the owners. The HLBV method measures the amounts that each owner would hypothetically claim at each balance sheet reporting date, including tax benefits realized by the owners over the IRS recapture period, upon a hypothetical liquidation of the subsidiary at the net book value of its underlying assets. The change in the amount that each owner would hypothetically receive at the reporting date compared to the amount it would have received on the previous reporting date represents the amount of income or loss allocated to each owner for the reporting period.
During September 2021, Duke Energy completed the initial minority interest investment in a portion of Duke Energy Indiana to an affiliate of GIC. GIC's ownership interest in Duke Energy Indiana represents a noncontrolling interest. See Note 2 for additional information on the sale.
Other operating agreements of Duke Energy's subsidiaries with noncontrolling interest allocate profit and loss based on their pro rata shares of the ownership interest in the respective subsidiary. Therefore, Duke Energy allocates net income or loss and other comprehensive income or loss of these subsidiaries to the owners based on their pro rata shares.
42

FINANCIAL STATEMENTSORGANIZATION AND BASIS OF PRESENTATION

The following table presents allocated losses to noncontrolling interest for the three months ended March 31, 2022, and 2021.
Three Months Ended March 31,
(in millions)20222021
Noncontrolling Interest Allocation of Income
Allocated losses to noncontrolling tax equity members utilizing the HLBV method$24 $43 
Allocated losses to noncontrolling members based on pro rata shares of ownership13 
Total Noncontrolling Interest Allocated Losses$37 $51 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 9 and 11 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included in the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
DukeDukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyDukeEnergyProgressEnergyEnergy
EnergyCarolinasEnergyProgressFloridaEnergyCarolinasEnergyProgressFlorida
Current Assets
Cash and cash equivalents$853 $4 $63 $42 $13 $343 $$70 $35 $23 
Other151 4 28 13 13 170 — 39 — 39 
Other Noncurrent Assets
Other16 1 4 4  — 
Total cash, cash equivalents and restricted cash$1,020 $9 $95 $59 $26 $520 $$113 $39 $62 
INVENTORY
Provisions for inventory write-offs were not material at March 31, 2022, and December 31, 2021. The components of inventory are presented in the tables below.
 March 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Materials and supplies $2,455 $810 $1,089 $744 $345 $89 $320 $14 
Coal469 196 149 93 56 16 108  
Natural gas, oil and other fuel247 34 165 103 62 9 2 37 
Total inventory $3,171 $1,040 $1,403 $940 $463 $114 $430 $51 
 December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Materials and supplies $2,397 $793 $1,067 $729 $338 $80 $311 $14 
Coal486 195 167 94 73 19 105 — 
Natural gas, oil and other fuel316 38 164 98 66 17 95 
Total inventory $3,199 $1,026 $1,398 $921 $477 $116 $418 $109 
NEW ACCOUNTING STANDARDS
No new accounting standards were adopted by the Duke Energy Registrants in 2022.
2. BUSINESS SEGMENTS
Duke Energy
Duke Energy's segment structure includes the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.
43

FINANCIAL STATEMENTSBUSINESS SEGMENTS

The Electric Utilities and Infrastructure segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. On January 28, 2021, Duke Energy executed an agreement providing for an investment by an affiliate of GIC in Duke Energy Indiana in exchange for a 19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding company for Duke Energy Indiana. The transaction will be completed following two closings for an aggregate purchase price of approximately $2 billion. The first closing, which occurred on September 8, 2021, resulted in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership interests in exchange for approximately $1,025 million or 50% of the purchase price. Duke Energy retained indirect control of these assets, and, therefore, no gain or loss was recognized on the Condensed Consolidated Statements of Operations. Duke Energy has the discretion to determine the timing of the second closing, but it will occur no later than January 2023. At the second closing, Duke Energy will issue and sell additional membership interests such that GIC will own 19.9% of the membership interests for the remaining 50% of the purchase price.
The Gas Utilities and Infrastructure segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky and Duke Energy's natural gas storage, midstream pipeline and renewable natural gas investments.
The Commercial Renewables segment is primarily comprised of nonregulated utility-scale wind and solar generation assets located throughout the U.S. Duke Energy continues to monitor recoverability of its renewable merchant plants located in the ERCOT West market and in the PJM West market due to fluctuating market pricing and long-term forecasted energy prices. The assets were not impaired as of March 31, 2022, because the carrying value of approximately $200 million continues to approximate the aggregate estimated future undiscounted cash flows. Duke Energy has a 51% ownership interest in these assets. A continued decline in energy market pricing or other factors unfavorably impacting the economics would likely result in a future impairment.
The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's ownership interest in National Methanol Company.
Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
Three Months Ended March 31, 2022
ElectricGasTotal
Utilities andUtilities andCommercialReportable
(in millions)InfrastructureInfrastructureRenewablesSegmentsOtherEliminationsTotal
Unaffiliated revenues$5,995 $1,009 $121 $7,125 $7 $ $7,132 
Intersegment revenues7 23  30 23 (53) 
Total revenues$6,002 $1,032 $121 $7,155 $30 $(53)$7,132 
Segment income (loss)(a)
$723 $254 $11 $988 $(170)$ $818 
Less: Noncontrolling interests37 
Add: Preferred stock dividend39 
Net Income$820 
Segment assets$144,790 $15,170 $7,021 $166,981 $4,251 $(12)$171,220 
Three Months Ended March 31, 2021
ElectricGasTotal
Utilities andUtilities andCommercialReportable
(in millions)InfrastructureInfrastructureRenewablesSegmentsOtherEliminationsTotal
Unaffiliated revenues$5,273 $752 $119 $6,144 $$— $6,150 
Intersegment revenues23 — 31 20 (51)— 
Total revenues$5,281 $775 $119 $6,175 $26 $(51)$6,150 
Segment income (loss)(b)
$820 $245 $27 $1,092 $(139)$— $953 
Less: Noncontrolling interests51 
Add: Preferred stock dividend39 
Net Income$941 
(a)Electric Utilities and Infrastructure includes $211 million recorded within Impairment of assets and other charges, $46 million within Operating revenues and $22 million within Noncontrolling Interests related to the Duke Energy Supreme Court ruling on the Condensed Consolidated Statements of Operations. See Note 3 for additional information.
(b)Commercial Renewables includes a $35 million loss related to Texas Storm Uri, of which $8 million is recorded within Nonregulated electric and other revenues, $2 million within Operation, maintenance and other, $29 million within Equity in earnings (losses) of unconsolidated affiliates and $12 million within Net Loss Attributable to Noncontrolling Interests on the Condensed Consolidated Statements of Operations. See Note 4 for additional information. Gas Utilities and Infrastructure includes $6 million, recorded within Equity in earnings (losses) of unconsolidated affiliates on the Condensed Consolidated Statements of Operations, related to gas pipeline investments.
44

FINANCIAL STATEMENTSBUSINESS SEGMENTS

Duke Energy Ohio
Duke Energy Ohio has two reportable segments, Electric Utilities and Infrastructure and Gas Utilities and Infrastructure. The remainder of Duke Energy Ohio's operations is presented as Other.
Three Months Ended March 31, 2022
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Total revenues$412 $226 $638 $ $ $638 
Segment income/Net (loss) income$41 $38 $79 $(2)$ $77 
Segment assets$7,101 $3,784 $10,885 $14 $(168)$10,731 
Three Months Ended March 31, 2021
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherTotal
Total revenues$363 $169 $532 $— $532 
Segment income/Net (loss) income$50 $43 $93 $(2)$91 
3. REGULATORY MATTERS
RATE-RELATED INFORMATION
The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. The FERC also regulates certification and siting of new interstate natural gas pipeline projects.
Duke Energy Carolinas and Duke Energy Progress
HB 951
The NCUC is required by North Carolina House Bill 951 (HB 951) to adopt an initial Carbon Plan on or before December 31, 2022. The NCUC has directed Duke Energy Carolinas and Duke Energy Progress to file a proposed Carbon Plan on or before May 16, 2022. Duke Energy Carolinas and Duke Energy Progress cannot predict the outcome of this matter.
On February 10, 2022, the NCUC adopted rules to govern the application and review process for the PBR authorized under HB 951. On April 5, 2022, the NCUC adopted rules to govern the securitization of 50% of the North Carolina retail portion of the remaining net book value of retiring coal plants pursuant to HB 951. The rules are constructive and consistent with the policy objectives of HB 951.
Duke Energy Carolinas
Oconee Nuclear Station Subsequent License Renewal
On June 7, 2021, Duke Energy Carolinas filed a subsequent license renewal (SLR) application for the Oconee Nuclear Station (ONS) with the U.S. Nuclear Regulatory Commission (NRC) to renew ONS’s operating license for an additional 20 years. The SLR would extend operations of the facility from 60 to 80 years. The current licenses for units 1 and 2 expire in 2033 and the license for unit 3 expires in 2034. By a Federal Register Notice dated July 28, 2021, the NRC provided a 60-day comment period for persons whose interest may be affected by the issuance of a subsequent renewed license for ONS to file a request for a hearing and a petition for leave to intervene. On September 27, 2021, Beyond Nuclear and Sierra Club (Petitioners) filed a Hearing Request and Petition to Intervene (Hearing Request) and a Petition for Waiver. The Hearing Request proposed three contentions purporting to challenge Duke Energy Carolinas’ environmental report (ER). In general, the proposed contentions claimed that the ER did not consider certain information regarding the environmental aspects of severe accidents caused by a hypothetical failure of the Jocassee Dam, and therefore did not satisfy the National Environmental Policy Act (NEPA) of 1969, as amended, or the NRC’s NEPA-implementing regulations. Duke Energy Carolinas filed its answer to the proposed contentions on October 22, 2021, and the Petitioners filed their reply to Duke Energy Carolinas’ answer on November 5, 2021. On February 11, 2022, the Atomic Safety and Licensing Board (ASLB) issued its decision on the Hearing Request and found that the Petitioners failed to establish that the proposed contentions are litigable. The ASLB also denied the Petitioners' Petition for Waiver and terminated the proceeding.
On February 24, 2022, the NRC issued a decision in the Turkey Point SLR appeal and ruled that the NRC’s license renewal Generic Environmental Impact Statement (GEIS) does not apply to SLR because the GEIS does not address SLR. The decision overturned a 2020 NRC decision that found the GEIS applies to SLR. While Turkey Point is not owned or operated by a Duke Energy Registrant, the NRC’s order applies to all SLR applicants, including ONS. The NRC order also indicated no subsequent renewed licenses will be issued until the NRC staff has completed an adequate NEPA review for each application. On April 5, 2022, the NRC approved a 24-month rulemaking plan that will enable the NRC staff to complete an adequate NEPA review. Although an SLR applicant may wait until the rulemaking is completed, the NRC also noted that an applicant may submit a revised environmental report providing information on environmental impacts during the SLR period prior to the rulemaking being completed. Duke Energy Carolinas is evaluating the two options to determine which is preferable for ONS. Although the NRC’s decision will delay completion of the SLR proceeding, Duke Energy Carolinas does not believe it changes the probability that the ONS subsequent renewed licenses will ultimately be issued, though Duke Energy Carolinas cannot guaranty the outcome of the license application process.
45

FINANCIAL STATEMENTSREGULATORY MATTERS

Duke Energy Carolinas and Duke Energy Progress intend to seek renewal of operating licenses and 20-year license extensions for all of their nuclear stations. New depreciation rates were implemented for all of the nuclear facilities during the second quarter of 2021. Duke Energy Carolinas and Duke Energy Progress cannot predict the outcome of this matter.
Duke Energy Progress
FERC Return on Equity Complaint
On October 16, 2020, North Carolina Electric Membership Corporation (NCEMC) filed a complaint at the FERC against Duke Energy Progress pursuant to Section 206 of the Federal Power Act (FPA), alleging that the 11% stated return on equity (ROE) component in the demand formula rate in the Power Supply and Coordination Agreement between NCEMC and Duke Energy Progress is unjust and unreasonable. Under FPA Section 206, the earliest refund effective date that the FERC can establish is the date of the filing of the complaint. A series of responses and answers were filed at FERC. The complaint proceeding is currently held in abeyance until June 1, 2022, based on representations that the parties have reached an agreement in principle and need additional time to finalize the filing. Duke Energy Progress cannot predict the outcome of this matter.
Duke Energy Florida
2021 Settlement Agreement
On January 14, 2021, Duke Energy Florida filed a Settlement Agreement (the “2021 Settlement”) with the FPSC. The parties to the 2021 Settlement include Duke Energy Florida, the Office of Public Counsel (OPC), the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate and NUCOR Steel Florida, Inc. (collectively, the “Parties”).
Pursuant to the 2021 Settlement, the Parties agreed to a base rate stay-out provision that expires year-end 2024; however, Duke Energy Florida is allowed an increase to its base rates of an incremental $67 million in 2022, $49 million in 2023 and $79 million in 2024, subject to adjustment in the event of tax reform during the years 2021, 2022 and 2023. The Parties also agreed to an ROE band of 8.85% to 10.85% with a midpoint of 9.85% based on a capital structure of 53% equity and 47% debt. The ROE band can be increased by 25 basis points if the average 30-year U.S. Treasury rate increases 50 basis points or more over a six-month period in which case the midpoint ROE would rise from 9.85% to 10.10%. Duke Energy Florida will also be able to retain the retail portion of the DOE award of approximately $173 million for spent nuclear fuel, which is expected to be received in 2022, in order to mitigate customer rates over the term of the 2021 Settlement. In return, Duke Energy Florida will be able to recognize the $173 million into earnings from 2022 through 2024.
In addition to these terms, the 2021 Settlement contained provisions related to the accelerated depreciation of Crystal River Units 4-5, the approval of approximately $1 billion in future investments in new cost-effective solar power, the implementation of a new Electric Vehicle Charging Station Program and the deferral and recovery of costs in connection with the implementation of Duke Energy Florida’s Vision Florida program, which explores various emerging non-carbon emitting generation technology, distributed technologies and resiliency projects, among other things. The 2021 Settlement also resolved remaining unrecovered storm costs for Hurricane Michael and Hurricane Dorian.
The FPSC approved the 2021 Settlement on May 4, 2021, issuing an order on June 4, 2021. Revised customer rates became effective January 1, 2022, with subsequent base rate increases effective January 1, 2023, and January 1, 2024.
Clean Energy Connection
On July 1, 2020, Duke Energy Florida petitioned the FPSC for approval of a voluntary solar program. The program consists of 10 new solar generating facilities with combined capacity of approximately 750 MW. The program allows participants to support cost-effective solar development in Florida by paying a subscription fee based on per kilowatt-subscriptions and receiving a credit on their bill based on the actual generation associated with their portion of the solar portfolio. The estimated cost of the 10 new solar generation facilities is approximately $1 billion over the next three years, and this investment will be included in base rates offset by the revenue from the subscription fees. The credits will be included for recovery in the fuel cost recovery clause. The FPSC approved the program in January 2021.
On February 24, 2021, the League of United Latin American Citizens (LULAC) filed a notice of appeal of the FPSC’s order approving the Clean Energy Connection to the Supreme Court of Florida. LULAC's initial brief was filed on May 26, 2021, and Appellees' response briefs were filed on July 26, 2021. LULAC's reply brief was filed on September 24, 2021, and its request for oral argument was filed on September 28, 2021. The Supreme Court of Florida heard the oral argument on February 9, 2022. The FPSC approval order remains in effect pending the outcome of the appeal. Duke Energy Florida cannot predict the outcome of this matter.
Storm Protection Plan
On April 11, 2022, Duke Energy Florida filed a Storm Protection Plan for approval with the FPSC. The plan, which covers investments for the 2023-2032 time frame, reflects approximately $7 billion of capital investment in transmission and distribution meant to strengthen its infrastructure, reduce outage times associated with extreme weather events, reduce restoration costs and improve overall service reliability. The FPSC has scheduled a hearing to begin on August 2, 2022. Duke Energy Florida cannot predict the outcome of this matter.
Duke Energy Ohio
Duke Energy Ohio Electric Base Rate Case
Duke Energy Ohio filed with the PUCO an electric distribution base rate case application on October 1, 2021, with supporting testimony filed on October 15, 2021, requesting an increase in electric distribution base rates of approximately $55 million and an ROE of 10.3%. This is an approximate 3.3% average increase in the customer's total bill across all customer classes. The drivers for this case are capital invested since Duke Energy Ohio's last electric distribution base rate case in 2017. Duke Energy Ohio is also seeking to adjust the caps on its Distribution Capital Investment Rider (DCI Rider). Duke Energy Ohio anticipates the PUCO will rule on the request in 2022. Duke Energy Ohio cannot predict the outcome of this matter.
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FINANCIAL STATEMENTSREGULATORY MATTERS

Energy Efficiency Cost Recovery
In response to changes in Ohio law that eliminated Ohio's energy efficiency mandates, the PUCO issued an order on February 26, 2020, directing utilities to wind down their demand-side management programs by September 30, 2020, and to terminate the programs by December 31, 2020. Duke Energy Ohio took the following actions:
On March 27, 2020, Duke Energy Ohio filed an application for rehearing seeking clarification on the final true up and reconciliation process after 2020. On November 18, 2020, the PUCO issued an order replacing the cost cap previously imposed upon Duke Energy Ohio with a cap on shared savings recovery. On December 18, 2020, Duke Energy Ohio filed an additional application for rehearing challenging, among other things, the imposition of the cap on shared savings. On January 13, 2021, the application for rehearing was granted for further consideration.
On October 9, 2020, Duke Energy Ohio filed an application to implement a voluntary energy efficiency program portfolio to commence on January 1, 2021. The application proposed a mechanism for recovery of program costs and a benefit associated with avoided transmission and distribution costs. The application remains under review.
On November 18, 2020, the PUCO issued an order directing all utilities to set their energy efficiency riders to zero effective January 1, 2021, and to file a separate application for final reconciliation of all energy efficiency costs prior to December 31, 2020. Effective January 1, 2021, Duke Energy Ohio suspended its energy efficiency programs.
On June 14, 2021, the PUCO issued an entry for each utility to file by July 15, 2021, a proposal to reestablish low-income programs through December 31, 2021. Duke Energy Ohio filed its application on July 14, 2021.
On February 23, 2022, the PUCO issued its Fifth Entry on Rehearing that 1) affirmed its reduction in Duke Energy Ohio's shared savings cap; 2) denied rehearing/clarification regarding lost distribution revenues and shared savings recovery for periods after December 31, 2020; and 3) directed Duke Energy Ohio to submit an updated application with exhibits.
On March 25, 2022, Duke Energy Ohio filed its Amended Application consistent with the PUCO's order.
Duke Energy Ohio cannot predict the outcome of this matter.
Natural Gas Pipeline Extension
Duke Energy Ohio installed a new natural gas pipeline (the Central Corridor Project) in its Ohio service territory to increase system reliability and enable the retirement of older infrastructure. Construction of the pipeline extension was completed and placed in service on March 14, 2022. Duke Energy Ohio expects the final cost for the pipeline development and construction activities to be approximately $185 million (excluding overheads and AFUDC).
MGP Cost Recovery
In an order issued in 2013, the PUCO approved Duke Energy Ohio's deferral and recovery of costs related to environmental remediation at two sites (East End and West End) that housed former MGP operations. Duke Energy Ohio made annual applications with the PUCO to recover its incremental remediation costs consistent with the PUCO’s directive in Duke Energy Ohio’s 2012 natural gas base rate case. The Staff of the PUCO (Staff) issued reports recommending a disallowance of MGP remediation costs incurred that the Staff believes are not eligible for recovery. The Staff interprets the PUCO’s 2013 order granting Duke Energy Ohio recovery of MGP remediation as limiting the recovery to work directly on the East End and West End sites. Duke Energy Ohio filed reply comments objecting to the Staff’s recommendations and explaining, among other things, the obligation Duke Energy Ohio has under Ohio law to remediate all areas impacted by the former MGPs and not just physical property that housed the former plants and equipment. Additionally, the Staff recommended that any discussion pertaining to Duke Energy Ohio's recovery of ongoing MGP costs should be directly tied to or netted against insurance proceeds collected by Duke Energy Ohio. An evidentiary hearing concluded on November 21, 2019. Initial briefs were filed on January 17, 2020, and reply briefs were filed on February 14, 2020.
The 2013 PUCO order also contained conditional deadlines for completing the MGP environmental remediation and the deferral of related remediation costs. Subsequent to the order, the deadline was extended to December 31, 2019. On May 10, 2019, Duke Energy Ohio filed an application requesting a continuation of its existing deferral authority for MGP remediation that must occur after December 31, 2019. On July 12, 2019, the Staff recommended the commission deny the deferral authority request. On September 13, 2019, intervenor comments were filed opposing Duke Energy Ohio's request for continuation of existing deferral authority and on October 2, 2019, Duke Energy Ohio filed reply comments.
A Stipulation and Recommendation was filed jointly by Duke Energy Ohio, the Staff, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021, which was approved without modification by the PUCO on April 20, 2022. The Stipulation and Recommendation resolved all open issues regarding MGP remediation costs incurred between 2013 and 2019, Duke Energy Ohio’s request for additional deferral authority beyond 2019 and the pending issues related to the Tax Act described below as it related to Duke Energy Ohio’s natural gas operations. As a result of the approval of the Stipulation and Recommendation, Duke Energy Ohio recognized pretax charges of approximately $15 million to Operating revenues, regulated natural gas and $58 million to Operation, maintenance and other and a tax benefit of $72 million to Income Tax (Benefit) Expense in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022. The Stipulation and Recommendation further acknowledged Duke Energy Ohio’s ability to file a request for additional deferral authority in the future related to environmental remediation of any MGP impacts in the Ohio River if necessary, subject to specific conditions. Intervenors have 30 days to file for rehearing. Duke Energy Ohio cannot predict the outcome of this matter.
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FINANCIAL STATEMENTSREGULATORY MATTERS

Tax Act – Ohio
On December 21, 2018, Duke Energy Ohio filed an application to change its base rate tariffs and establish a new rider to implement the benefits of the Tax Act for natural gas customers. Duke Energy Ohio requested commission approval to implement the tariff changes and rider effective April 1, 2019. The new rider would flow through to customers the benefit of the reduction in the statutory federal tax rate from 35% to 21% since January 1, 2018, all future benefits of the lower tax rates and a full refund of deferred income taxes collected at the higher tax rates in prior years. Deferred income taxes subject to normalization rules would be refunded consistent with federal law and deferred income taxes not subject to normalization rules will be refunded over a 10-year period. The PUCO established a procedural schedule and testimony was filed on July 31, 2019. An evidentiary hearing occurred on August 7, 2019. The Stipulation and Recommendation filed on August 31, 2021, and approved on April 20, 2022, disclosed in the MGP Cost Recovery matter above, resolves the outstanding issues in this proceeding by providing customers a one-time bill credit for the reduction in the statutory federal tax rate from 35% to 21% since January 1, 2018, through June 1, 2022, and reducing base rates going forward. Deferred income taxes subject to normalization rules will be refunded consistent with federal law through a new rider. Deferred income taxes not subject to normalization rules were written off. Intervenors have 30 days to file for rehearing. Duke Energy Ohio cannot predict the outcome of this matter.
Midwest Propane Caverns
Duke Energy Ohio used propane stored in caverns to meet peak demand during winter. Because the Central Corridor Project is complete and placed in service, the propane peaking facilities will no longer be necessary and have been retired. On October 7, 2021, Duke Energy Ohio requested deferral treatment of the property, plant and equipment as well as costs related to propane inventory and decommissioning costs. On January 6, 2022, the Staff issued a report recommending deferral authority for costs related to propane inventory and decommissioning costs, but not for the net book value of the remaining plant assets. As a result of the Staff's report, Duke Energy Ohio recorded a $19 million charge to Impairment of assets and other charges on the Consolidated Statements of Operations and Comprehensive Income in the fourth quarter of 2021. A Stipulation and Recommendation was filed jointly by Duke Energy Ohio and the Staff on April 27, 2022, recommending, among other things, approval of deferral treatment of a portion of the net book value of the property, plant and equipment prior to the 2021 impairment at the time of the next natural gas base rate case, excluding operations and maintenance savings, decommissioning costs not to exceed $7 million and costs related to propane inventory. The Stipulation and Recommendation states that Duke Energy Ohio will seek recovery of the deferral through its next gas base rate case proceeding with a proposed amortization period of at least ten years and include an independent engineering study analyzing the necessity and prudency of the incremental investments made at the facilities since March 31, 2012. Duke Energy Ohio will not seek a return on the deferred amounts. Duke Energy Ohio cannot predict the outcome of this matter.
Duke Energy Indiana
2019 Indiana Rate Case
On July 2, 2019, Duke Energy Indiana filed a general rate case with the IURC for a rate increase for retail customers of approximately $395 million. The rebuttal case, filed on December 4, 2019, updated the requested revenue requirement to result in a 15.6% or $396 million average retail rate increase, including the impacts of the Utility Receipts Tax. Hearings concluded on February 7, 2020. On June 29, 2020, the IURC issued an order in the rate case approving a revenue increase of $146 million before certain adjustments and ratemaking refinements. The order approved Duke Energy Indiana’s requested forecasted rate base of $10.2 billion as of December 31, 2020, including the Edwardsport Integrated Gasification Combined Cycle (IGCC) Plant. The IURC reduced Duke Energy Indiana’s request by slightly more than $200 million, when accounting for the utility receipts tax and other adjustments. Approximately 50% of the reduction was due to a prospective change in depreciation and use of regulatory asset for the end-of-life inventory at retired generating plants, approximately 20% is due to the approved ROE of 9.7% versus the requested ROE of 10.4% and approximately 20% was related to miscellaneous earnings neutral adjustments. Step one rates were estimated to be approximately 75% of the total and became effective on July 30, 2020. Step two rates are estimated to be the remaining 25% of the total rate increase. Step two rates were approved on July 28, 2021, and implemented in August 2021. Step two rates are based on an ROE of 9.7% and actual December 31, 2020 capital structure with a 54% equity component. Step two rates were reconciled to January 1, 2021.
Several groups appealed the IURC order to the Indiana Court of Appeals. Appellate briefs were filed on October 14, 2020, focusing on three issues: wholesale sales allocations, coal ash basin cost recovery and the Edwardsport IGCC operating and maintenance expense level approved. The appeal was fully briefed in January 2021 and an oral argument was held on April 8, 2021. The Indiana Court of Appeals affirmed the IURC decision on May 13, 2021. The Indiana Office of Utility Consumer Counselor (OUCC) and the Duke Industrial Group filed a joint petition to transfer the rate case appeal to the Indiana Supreme Court on June 28, 2021. Response briefs were filed July 19, 2021. The Indiana Supreme Court issued its opinion on March 10, 2022, finding that the IURC erred in allowing Duke Energy Indiana to recover coal ash costs incurred before the IURC’s rate case order in June 2020. The Indiana Supreme Court found that allowing Duke Energy Indiana to recover coal ash costs incurred between rate cases that exceeded the amount built into base rates violated the prohibition against retroactive ratemaking. The IURC’s order has been remanded to the IURC for additional proceedings consistent with the Indiana Supreme Court’s opinion. As a result of the court's opinion, Duke Energy Indiana recognized pretax charges of approximately $211 million to Impairment of assets and other charges and $46 million to Operating revenues in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022. Duke Energy Indiana filed a request for rehearing with the Supreme Court on April 11, 2022. Until the Indiana Supreme Court acts on the petition for rehearing, the IURC may not act on the Supreme Court's initial remedy. Duke Energy Indiana cannot predict the outcome of this matter.
2020 Indiana Coal Ash Recovery Case
In Duke Energy Indiana’s 2019 rate case, the IURC also opened a subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana filed testimony on April 15, 2020, in the coal ash subdocket requesting recovery for the post-2018 coal ash basin closure costs for plans that have been approved by the Indiana Department of Environmental Management (IDEM) as well as continuing deferral, with carrying costs, on the balance. An evidentiary hearing was held on September 14, 2020. Briefing was completed by mid-September 2021. On November 3, 2021, the IURC issued an order allowing recovery for post-2018 coal ash basin closure costs for the plans that have been approved by IDEM, as well as continuing deferral, with carrying costs, on the balance. The OUCC filed a notice of appeal to the Indiana Court of Appeals on December 3, 2021. Duke Energy Indiana cannot predict the outcome of this matter.
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FINANCIAL STATEMENTSREGULATORY MATTERS

Piedmont
2022 South Carolina Rate Case
On April 1, 2022, Piedmont filed an application with the PSCSC for a rate increase for retail customers of approximately $7 million, which represents an approximate 3.4% increase in retail revenues. The rate increase is driven by customer growth and infrastructure upgrade investments (plant additions) since Piedmont’s last proceeding in 2021 under South Carolina’s Rate Stabilization Act. In addition, Piedmont agreed with the South Carolina Office of Regulatory Staff in 2019 to file a general rate case no later than April 1, 2022, to conduct a more comprehensive review of rates including the allocation of costs to residential, commercial and industrial customers. The PSCSC has scheduled an evidentiary hearing for the week of August 15, 2022. Piedmont cannot predict the outcome of this matter.
OTHER REGULATORY MATTERS
Potential Coal Plant Retirements
The Subsidiary Registrants periodically file IRPs with their state regulatory commissions. The IRPs provide a view of forecasted energy needs over a long term (10 to 20 years) and options being considered to meet those needs. IRPs filed by the Subsidiary Registrants included planning assumptions to potentially retire certain coal-fired generating facilities in North Carolina and Indiana earlier than their current estimated useful lives. Duke Energy continues to evaluate the potential need to retire these coal-fired generating facilities earlier than the current estimated useful lives and plans to seek regulatory recovery for amounts that would not be otherwise recovered when any of these assets are retired.
The table below contains the net carrying value of generating facilities planned for retirement or included in recent IRPs as evaluated for potential retirement. Dollar amounts in the table below are included in Net property, plant and equipment on the Condensed Consolidated Balance Sheets as of March 31, 2022, and exclude capitalized asset retirement costs.
Remaining Net
CapacityBook Value
(in MW)(in millions)
Duke Energy Carolinas
Allen Steam Station Units 1(a)
167 $12 
Allen Steam Station Units 5(b)
259 265 
Cliffside Unit 5(b)
546 358 
Duke Energy Progress
Mayo Unit 1(b)
713 621 
Roxboro Units 3-4(b)
1,409 450 
Duke Energy Florida
Crystal River Units 4-5(c)
1,442 1,636 
Duke Energy Indiana
Gibson Units 1-5(d)
2,845 2,076 
Cayuga Units 1-2(d)
1,005 676 
Total Duke Energy8,386 $6,094 
(a)As part of the 2015 resolution of a lawsuit involving alleged New Source Review violations, Duke Energy Carolinas must retire Allen Steam Station Unit 1 by December 31, 2024. The long-term energy options considered in the IRP could result in retirement of this unit earlier than its current estimated useful live.
(b)These units were included in the IRP filed by Duke Energy Carolinas and Duke Energy Progress in North Carolina and South Carolina on September 1, 2020. The long-term energy options considered in the IRP could result in retirement of these units earlier than their current estimated useful lives.
(c)On January 14, 2021, Duke Energy Florida filed the 2021 Settlement agreement with the FPSC, which proposed depreciation rates reflecting retirement dates for Duke Energy Florida's last two coal-fired generating facilities, Crystal River Units 4-5, eight years ahead of schedule in 2034 rather than in 2042. The FPSC approved the 2021 Settlement on May 4, 2021.
(d)The rate case filed July 2, 2019, included proposed depreciation rates reflecting retirement dates from 2026 to 2038. The depreciation rates reflecting these updated retirement dates were approved by the IURC as part of the rate case order issued on June 29, 2020.
4. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all Duke Energy Registrants.
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FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES

Remediation Activities
In addition to AROs recorded as a result of various environmental regulations, the Duke Energy Registrants are responsible for environmental remediation at various sites. These include certain properties that are part of ongoing operations and sites formerly owned or used by Duke Energy entities. These sites are in various stages of investigation, remediation and monitoring. Managed in conjunction with relevant federal, state and local agencies, remediation activities vary based upon site conditions and location, remediation requirements, complexity and sharing of responsibility. If remediation activities involve joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for environmental impacts caused by other potentially responsible parties and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. Liabilities are recorded when losses become probable and are reasonably estimable. The total costs that may be incurred cannot be estimated because the extent of environmental impact, allocation among potentially responsible parties, remediation alternatives and/or regulatory decisions have not yet been determined at all sites. Additional costs associated with remediation activities are likely to be incurred in the future and could be significant. Costs are typically expensed as Operation, maintenance and other on the Condensed Consolidated Statements of Operations unless regulatory recovery of the costs is deemed probable.
The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Other within Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets.
(in millions)March 31, 2022December 31, 2021
Reserves for Environmental Remediation
Duke Energy$87 $88 
Duke Energy Carolinas19 19 
Progress Energy23 23 
Duke Energy Progress11 11 
Duke Energy Florida11 11 
Duke Energy Ohio33 34 
Duke Energy Indiana4 
Piedmont8 
Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation and monitoring for environmental sites that have been evaluated at this time are not material.
LITIGATION
Duke Energy
Michael Johnson et al. v. Duke Energy Corporation et al.
On September 23, 2020, plaintiff Michael Johnson, a former Duke Energy employee and participant in the Duke Energy Retirement Savings Plan (Plan) brought suit on his own behalf and on behalf of other participants and beneficiaries similarly situated against Duke Energy Corporation, the Duke Energy Benefits Committee, and other unnamed individual defendants. The complaint, which was subsequently amended to add a current participant as a plaintiff on November 23, 2020, alleges that the defendants breached their fiduciary duties with respect to certain fees associated with the Plan in violation of the Employee Retirement Income Security Act of 1974 and seeks certification of a class of all individuals who were participants or beneficiaries of the Plan at any time on or after September 23, 2014. The defendants filed a motion to dismiss the plaintiffs’ amended complaint on December 18, 2020. On January 31, 2022, the court denied the defendants' motion to dismiss. On February 28, 2022, Duke Energy responded to the amended complaint. Discovery commenced and the parties exchanged preliminary disclosures. After review of these disclosures, the parties filed a joint stipulation of dismissal with prejudice on April 28, 2022. If approved by the Court, this matter will be fully resolved. Duke Energy cannot predict the outcome of this matter.
Texas Storm Uri Tort Litigation
Several Duke Energy renewables project companies, located in the ERCOT market, were named in lawsuits arising out of Texas Storm Uri in mid-February 2021. Duke Energy Corporation, which had originally been named in several suits, was dismissed from the lawsuits. The lawsuits against the Duke Energy renewables project companies seek recovery for property damages, personal injury and for wrongful death allegedly caused by the power outages, which the plaintiffs claim was the result of collective failures of generators, transmission and distribution operators, retail energy providers and others, including ERCOT. The cases have been consolidated into a Texas state court multidistrict litigation (MDL) proceeding for discovery and pre-litigation purposes. Five MDL cases have been designated for motions to dismiss while all other cases are stayed. Duke Energy renewables projects are named as defendants in three of these five cases. The parties' briefing on omnibus motions to dismiss should be completed by July 2022 and will focus on lack of duty, tariff defenses and sovereign immunity. Decisions on these motions will be applicable to all of the stayed cases. Duke Energy cannot predict the outcomes of these matters.
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FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES

Duke Energy Carolinas
Ruben Villano, et al. v. Duke Energy Carolinas, LLC
On June 16, 2021, a group of nine individuals went over a low head dam adjacent to the Dan River Steam Station in Eden, North Carolina, while water tubing. Emergency personnel rescued four people and five others were confirmed deceased. On August 11, 2021, Duke Energy Carolinas was served with the complaint filed in Durham County Superior Court on behalf of four survivors, which was later amended to include all the decedents along with the survivors, except for one minor. The lawsuit alleges that Duke Energy Carolinas knew that the river was used for recreational purposes and that Duke Energy did not adequately warn about the dam, and that Duke Energy Carolinas created a dangerous and hidden hazard on the Dan River in building and maintaining the low head dam. On September 30, 2021, Duke Energy Carolinas filed its motion to dismiss and motion for transfer of venue from Durham County to Rockingham County, both of which were denied on November 15, 2021. On November 15, 2021, Duke Energy Carolinas was also served with Plaintiffs Second Amended Complaint, which added the final minor plaintiff and consolidated all the actions into one lawsuit. Duke Energy Carolinas has filed its Answer and Affirmative Defenses to the Second Amended Complaint. Mediation is scheduled for December 2022. Discovery has commenced and is scheduled to be completed on or before February 28, 2023. The case is scheduled to be trial-ready by April 24, 2023. Duke Energy Carolinas cannot predict the outcome of this matter.
NTE Carolinas II, LLC Litigation
In November 2017, Duke Energy Carolinas entered into a standard FERC large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC (NTE), a company that proposed to build a combined-cycle natural gas plant in Rockingham County, North Carolina. On September 6, 2019, Duke Energy Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for breach of contract, alleging that NTE's failure to pay benchmark payments for Duke Energy Carolinas' transmission system upgrades required under the interconnection agreement constituted a termination of the interconnection agreement. Duke Energy Carolinas is seeking a monetary judgment against NTE because NTE failed to make multiple milestone payments. The lawsuit was moved to federal court in North Carolina. NTE filed a motion to dismiss Duke Energy Carolinas’ complaint and brought counterclaims alleging anti-competitive conduct and violations of state and federal statutes. Duke Energy Carolinas filed a motion to dismiss NTE's counterclaims.
On May 21, 2020, in response to a NTE petition challenging Duke Energy Carolinas' termination of the LGIA, FERC issued a ruling that 1) it has exclusive jurisdiction to determine whether a transmission provider may terminate a LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected to by the interconnection customer; and 3) Duke Energy may not announce the termination of a conforming LGIA unless FERC has approved the termination. FERC's Office of Enforcement also initiated an investigation of Duke Energy Carolinas into matters pertaining to the LGIA. Duke Energy Carolinas is cooperating with the Office of Enforcement but cannot predict the outcome of this investigation.
On August 17, 2020, the court denied both NTE’s and Duke Energy Carolinas’ motions to dismiss. In October 2021, NTE filed a Second Amended Counterclaim and Complaint, and in January 2022, NTE filed a Third Amended Counterclaim and Complaint. Duke Energy Carolinas has responded to these pleadings. On December 6, 2021, Duke Energy Carolinas filed an Amended Complaint. On March 1, 2022, the parties participated in mediation, which ended in an impasse. On April 4, 2022, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. Duke Energy Carolinas' motion will be fully briefed on May 10, 2022. The case is scheduled to be trial-ready by August 1, 2022. Duke Energy Carolinas cannot predict the outcome of this matter.
Asbestos-related Injuries and Damages Claims
Duke Energy Carolinas has experienced numerous claims for indemnification and medical cost reimbursement related to asbestos exposure. These claims relate to damages for bodily injuries alleged to have arisen from exposure to or use of asbestos in connection with construction and maintenance activities conducted on its electric generation plants prior to 1985.
Duke Energy Carolinas has recognized asbestos-related reserves of $495 million at March 31, 2022, and $501 million at December 31, 2021. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Condensed Consolidated Balance Sheets. These reserves are based upon Duke Energy Carolinas' best estimate for current and future asbestos claims through 2041 and are recorded on an undiscounted basis. In light of the uncertainties inherent in a longer-term forecast, management does not believe they can reasonably estimate the indemnity and medical costs that might be incurred after 2041 related to such potential claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in excess of the recorded reserves.
Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention. Receivables for insurance recoveries were $644 million at March 31, 2022, and $644 million at December 31, 2021. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Condensed Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.
The reserve for credit losses for insurance receivables is $12 million for Duke Energy and Duke Energy Carolinas as of March 31, 2022, and December 31, 2021. The insurance receivable is evaluated based on the risk of default and the historical losses, current conditions and expected conditions around collectability. Management evaluates the risk of default annually based on payment history, credit rating and changes in the risk of default from credit agencies.
Duke Energy Progress and Duke Energy Florida
Spent Nuclear Fuel Matters
On June 18, 2018, Duke Energy Progress and Duke Energy Florida sued the U.S. in the U.S. Court of Federal Claims for damages incurred for the period 2014 through 2018. The lawsuit claimed the DOE breached a contract in failing to accept spent nuclear fuel under the Nuclear Waste Policy Act of 1982 and asserted damages for the cost of on-site storage in the amount of $100 million and $200 million for Duke Energy Progress and Duke Energy Florida, respectively.
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FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES

On March 30, 2022, the DOE and Duke Energy Progress executed a settlement agreement, pursuant to which Duke Energy Progress will receive damages for costs incurred between 2014 and 2018, and will be able to submit future costs on a defined schedule. In April 2022, Duke Energy Progress received $87 million in proceeds that related to damages incurred in 2014 through 2018.
On May 2, 2022, the DOE and Duke Energy Florida executed a settlement agreement, pursuant to which Duke Energy Florida will receive approximately $180 million for costs incurred between 2014 and 2018, and will be able to submit costs incurred in 2019 and 2020 pursuant to an audit process.
Duke Energy Indiana
Coal Ash Basin Closure Plan Appeal
On January 27, 2020, Hoosier Environmental Council (HEC) filed a Petition for Administrative Review with the Indiana Office of Environmental Adjudication challenging the Indiana Department of Environmental Management’s (IDEM's) December 10, 2019, partial approval of Duke Energy Indiana’s ash pond closure plan at Duke Energy's Gallagher power station. After hearing oral arguments in early April 2021 on Duke Energy Indiana's and HEC's competing Motions for Summary Judgment, on May 4, 2021, the administrative court rejected all of HEC’s claims and issued a ruling in favor of Duke Energy Indiana. On June 3, 2021, HEC filed an appeal in Superior Court to seek judicial review of the order. On June 25, 2021, Duke Energy Indiana filed its response to the Petition to Review. On August 30, 2021, HEC served Duke Energy Indiana with its Brief in Support of Petition for Judicial Review. On October 29, 2021, Duke Energy Indiana and IDEM filed their response briefs. On December 13, 2021, HEC filed and served its Reply Brief.
On January 11, 2022, Duke Energy Indiana received a compliance obligation letter from the EPA notifying the company that the two basins at issue in the litigation are subject to requirements of the CCR Rule. The letter does not provide a deadline for compliance. Duke Energy Indiana is evaluating the EPA letter, its potential impacts on the litigation and the extent to which this letter could apply to CCR surface impoundments at its other Indiana sites.
Following the January 11, 2022 EPA notice of compliance letter, the parties filed a joint motion to stay the litigation for 45 days, which was approved by the court. As a result, the oral argument scheduled for February 1, 2022, was postponed. Duke Energy Indiana and HEC engaged in settlement discussions, but the parties were unable to reach resolution. On April 21, 2022, HEC filed a Motion to Lift Stay and Motion for Judicial Notice. HEC also requested that the court hold a hearing within 45 days and also take judicial notice of the EPA's January 11, 2022 letter. On April 22, 2022, Duke Energy Indiana sent IDEM a letter withdrawing the closure plans for the Gallagher North Ash Pond and Primary Pond Ash Fill. After acknowledgment by IDEM of withdrawal of these closure plans, Duke Energy Indiana filed a Motion to Dismiss the litigation as moot on April 28, 2022, and IDEM filed a separate brief on May 2, 2022, in support of this motion. Briefing is ongoing. Duke Energy Indiana cannot predict the outcome of this matter.
Other Litigation and Legal Proceedings
The Duke Energy Registrants are involved in other legal, tax and regulatory proceedings arising in the ordinary course of business, some of which involve significant amounts. The Duke Energy Registrants believe the final disposition of these proceedings will not have a material effect on their results of operations, cash flows or financial position. Reserves are classified on the Condensed Consolidated Balance Sheets in Other within Other Noncurrent Liabilities and Other within Current Liabilities.
OTHER COMMITMENTS AND CONTINGENCIES
General
As part of their normal business, the Duke Energy Registrants are party to various financial guarantees, performance guarantees and other contractual commitments to extend guarantees of credit and other assistance to various subsidiaries, investees and other third parties. These guarantees involve elements of performance and credit risk, which are not fully recognized on the Condensed Consolidated Balance Sheets and have uncapped maximum potential payments. However, the Duke Energy Registrants do not believe these guarantees will have a material effect on their results of operations, cash flows or financial position.
In addition, the Duke Energy Registrants enter into various fixed-price, noncancelable commitments to purchase or sell power or natural gas, take-or-pay arrangements, transportation, or throughput agreements and other contracts that may or may not be recognized on their respective Condensed Consolidated Balance Sheets. Some of these arrangements may be recognized at fair value on their respective Condensed Consolidated Balance Sheets if such contracts meet the definition of a derivative and the NPNS exception does not apply. In most cases, the Duke Energy Registrants’ purchase obligation contracts contain provisions for price adjustments, minimum purchase levels and other financial commitments.
52

FINANCIAL STATEMENTSDEBT AND CREDIT FACILITIES

5. DEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions).
Three Months Ended March 31, 2022
DukeDuke
MaturityInterestDukeEnergyEnergy
Issuance DateDateRateEnergyCarolinasProgress
First Mortgage Bonds
March 2022(a)
March 20322.850 %$500 $500 $ 
March 2022(a)
March 20523.550 %650 650  
March 2022(a)
April 20323.400 %500  500 
March 2022(a)
April 20524.000 %400  400 
Total issuances$2,050 $1,150 $900 
(a)Proceeds will be used to finance or refinance, in whole or in part, existing or new eligible projects under the sustainable financing framework.
CURRENT MATURITIES OF LONG-TERM DEBT
The following table shows the significant components of Current maturities of long-term debt on the Condensed Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.
(in millions)Maturity DateInterest RateMarch 31, 2022
Unsecured Debt
Progress EnergyApril 20223.150 %$450 
Duke Energy (Parent)August 20223.050 %500 
Duke Energy (Parent)August 20222.400 %500 
First Mortgage Bonds
Duke Energy CarolinasMay 20223.350 %350 
Duke Energy ProgressMay 20222.800 %500 
Duke Energy CarolinasMarch 20232.500 %500 
Duke Energy CarolinasMarch 20233.050 %500 
Other(a)
584 
Current maturities of long-term debt$3,884 
(a)Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2022, Duke Energy amended its existing Master Credit Facility to increase the amount of the facility from $8 billion to $9 billion and to extend the termination date to March 2027. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder.
53

FINANCIAL STATEMENTSDEBT AND CREDIT FACILITIES

The table below includes the current borrowing sublimits and available capacity under these credit facilities.
March 31, 2022
DukeDukeDukeDukeDukeDuke
DukeEnergyEnergyEnergyEnergyEnergyEnergy
(in millions)Energy(Parent)CarolinasProgressFloridaOhioIndianaPiedmont
Facility size(a)
$9,000 $3,300 $1,225 $1,400 $900 $775 $600 $800 
Reduction to backstop issuances
Commercial paper(b)
(2,819)(1,715)(300)(150)(236)(86)(150)(182)
Outstanding letters of credit(38)(25)(4)(2)(7)   
Tax-exempt bonds(81)     (81) 
Available capacity under the Master Credit Facility$6,062 $1,560 $921 $1,248 $657 $689 $369 $618 
(a)Represents the sublimit of each borrower.
(b)Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies on the Condensed Consolidated Balance Sheets.
Other Credit Facilities
Duke Energy (Parent) Term Loan Facility
On March 9, 2022, Duke Energy (Parent) entered into a Term Loan Credit Agreement (Credit Agreement) with commitments totaling $1.4 billion maturing March 9, 2024. The maturity date of the Credit Agreement may be extended for up to two years by request of Duke Energy (Parent), upon satisfaction of certain conditions contained in the Credit Agreement. Borrowings under the facility were used to repay amounts drawn under the Three-Year Revolving Credit Facility and for general corporate purposes, including repayment of a portion of Duke Energy's outstanding commercial paper. The balance is classified as Long-Term Debt on Duke Energy's Condensed Consolidated Balance Sheets. The Three-Year Revolving Credit Facility was terminated in March 2022.
Intercompany Credit Agreements
In March 2022, Progress Energy closed a revolving credit agreement with Duke Energy (Parent), which allowed up to $2.5 billion in intercompany borrowings.
6. GOODWILL
Duke Energy
The following table presents the goodwill by reportable segment included on Duke Energy's Condensed Consolidated Balance Sheets at March 31, 2022, and December 31, 2021.
Electric UtilitiesGas UtilitiesCommercial
(in millions)and Infrastructureand InfrastructureRenewablesTotal
Goodwill balance$17,379 $1,924 $122 $19,425 
Accumulated impairment charges  (122)(122)
Goodwill, adjusted for accumulated impairment charges$17,379 $1,924 $ $19,303 
Duke Energy Ohio
Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to Electric Utilities and Infrastructure and $324 million to Gas Utilities and Infrastructure, is presented net of accumulated impairment charges of $216 million on the Condensed Consolidated Balance Sheets at March 31, 2022, and December 31, 2021.
Progress Energy
Progress Energy's Goodwill is included in the Electric Utilities and Infrastructure segment and there are no accumulated impairment charges.
Piedmont
Piedmont's Goodwill is included in the Gas Utilities and Infrastructure segment and there are no accumulated impairment charges.
54

FINANCIAL STATEMENTSRELATED PARTY TRANSACTIONS

7. RELATED PARTY TRANSACTIONS
The Subsidiary Registrants engage in related party transactions in accordance with applicable state and federal commission regulations. Refer to the Condensed Consolidated Balance Sheets of the Subsidiary Registrants for balances due to or due from related parties. Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.
Three Months Ended March 31,
(in millions)20222021
Duke Energy Carolinas
Corporate governance and shared service expenses(a)
$206 $203 
Indemnification coverages(b)
7 
Joint Dispatch Agreement (JDA) revenue(c)
26 13 
JDA expense(c)
94 40 
Intercompany natural gas purchases(d)
13 14 
Progress Energy
Corporate governance and shared service expenses(a)
$196 $181 
Indemnification coverages(b)
11 10 
JDA revenue(c)
94 40 
JDA expense(c)
26 13 
Intercompany natural gas purchases(d)
19 19 
Duke Energy Progress
Corporate governance and shared service expenses(a)
$119 $105 
Indemnification coverages(b)
5 
JDA revenue(c)
94 40 
JDA expense(c)
26 13 
Intercompany natural gas purchases(d)
19 19 
Duke Energy Florida
Corporate governance and shared service expenses(a)
$77 $76 
Indemnification coverages(b)
6 
Duke Energy Ohio
Corporate governance and shared service expenses(a)
$82 $79 
Indemnification coverages(b)
1 
Duke Energy Indiana
Corporate governance and shared service expenses(a)
$124 $113 
Indemnification coverages(b)
2 
Piedmont
Corporate governance and shared service expenses(a)
$35 $33 
Indemnification coverages(b)
1 
Intercompany natural gas sales(d)
32 33 
Natural gas storage and transportation costs(e)
6 
(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 LNG Company, LLC, Hardy Storage Company, LLC and Cardinal Pipeline Company, LLC natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Condensed Consolidated Statements of Operations and Comprehensive Income.
55

FINANCIAL STATEMENTSRELATED PARTY TRANSACTIONS

In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions, such as pipeline lease arrangements, and their proportionate share of certain charged expenses. These transactions of the Subsidiary Registrants are incurred in the ordinary course of business and are eliminated in consolidation.
As discussed in Note 11, certain trade receivables have been sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price.
Intercompany Income Taxes
Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.
DukeDukeDukeDukeDuke
EnergyProgressEnergyEnergyEnergyEnergy
(in millions)CarolinasEnergyProgressFloridaOhioIndianaPiedmont
March 31, 2022
Intercompany income tax receivable$20 $49 $ $9 $5 $ $ 
Intercompany income tax payable  15   44 45 
December 31, 2021
Intercompany income tax receivable$— $— $— $40 $19 $— $— 
Intercompany income tax payable62 — 84 — — 10 27 
8. DERIVATIVES AND HEDGING
The Duke Energy Registrants use commodity and interest rate contracts to manage commodity price risk and interest rate risk. The primary use of commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Piedmont enters into natural gas supply contracts to provide diversification, reliability and natural gas cost benefits to its customers. Interest rate derivatives are used to manage interest rate risk associated with borrowings.
All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Condensed Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Condensed Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities on the Condensed Consolidated Statements of Cash Flows.
INTEREST RATE RISK
The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward-starting interest rate swaps or Treasury locks may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt.
Cash Flow Hedges
For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2022, and 2021, were not material. Duke Energy's interest rate derivatives designated as hedges include interest rate swaps used to hedge existing debt within the Commercial Renewables segment and forward-starting interest rate swaps not accounted for under regulatory accounting.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.
Duke Energy’s interest rate swaps for its regulated operations employ regulatory accounting. With regulatory accounting, the mark-to-market gains or losses on the swaps are deferred as regulatory liabilities or regulatory assets, respectively. Regulatory assets and liabilities are amortized consistent with the treatment of the related costs in the ratemaking process. The accrual of interest on the swaps is recorded as Interest Expense on the Duke Energy Registrant's Condensed Consolidated Statements of Operations and Comprehensive Income.
56

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING

The following table shows notional amounts of outstanding derivatives related to interest rate risk.
March 31, 2022
DukeDukeDuke
DukeEnergyEnergyEnergy
(in millions)EnergyCarolinasIndianaOhio
Cash flow hedges$2,913 $ $ $ 
Undesignated contracts577 250 300 27 
Total notional amount(a)
$3,490 $250 $300 $27 
December 31, 2021
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressIndianaOhio
Cash flow hedges$2,415 $— $— $— $— $— 
Undesignated contracts1,177 350 500 500 300 27 
Total notional amount(a)
$3,592 $350 $500 $500 $300 $27 
(a)Duke Energy includes amounts related to consolidated VIEs of $663 million and $665 million in cash flow hedges as of March 31, 2022 and December 31, 2021, respectively.
COMMODITY PRICE RISK
The Duke Energy Registrants are exposed to the impact of changes in the prices of electricity purchased and sold in bulk power markets and natural gas purchases, including Piedmont's natural gas supply contracts. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets and delivery locations. To manage risk associated with commodity prices, the Duke Energy Registrants may enter into long-term power purchase or sales contracts and long-term natural gas supply agreements.
Cash Flow Hedges
For derivatives designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Gains and losses reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2022, and 2021, were not material. Duke Energy’s commodity derivatives designated as hedges include long-term electricity sales in the Commercial Renewables segment.
Undesignated Contracts
For the Subsidiary Registrants, bulk power electricity and natural gas purchases flow through fuel adjustment clauses, formula-based contracts or other cost-sharing mechanisms. Differences between the costs included in rates and the incurred costs, including undesignated derivative contracts, are largely deferred as regulatory assets or regulatory liabilities. Piedmont policies allow for the use of financial instruments to hedge commodity price risks. The strategy and objective of these hedging programs are to use the financial instruments to reduce natural gas costs volatility for customers.
Volumes
The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.
March 31, 2022
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
Electricity (GWh)(a)
16,176    791 4,501  
Natural gas (millions of dekatherms)860 284 243 243  7 326 
57

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING

December 31, 2021
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
Electricity (GWh)(a)
22,344 — — — 1,681 10,688 — 
Natural gas (millions of dekatherms)823 264 215 215 — 336 
(a)Duke Energy includes 9,763 GWh and 9,975 GWh related to cash flow hedges as of March 31, 2022, and December 31, 2021, respectively.
LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED ON THE CONDENSED CONSOLIDATED BALANCE SHEETS
The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.
Derivative AssetsMarch 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current$673 $335 $295 $255 $40 $ $28 $7 
Noncurrent280 151 130 130     
Total Derivative Assets – Commodity Contracts$953 $486 $425 $385 $40 $ $28 $7 
Interest Rate Contracts
Designated as Hedging Instruments
Current$94 $ $ $ $ $ $ $ 
Noncurrent37        
Not Designated as Hedging Instruments
Noncurrent24 7     17  
Total Derivative Assets – Interest Rate Contracts$155 $7 $ $ $ $ $17 $ 
Total Derivative Assets$1,108 $493 $425 $385 $40 $ $45 $7 
58

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING

Derivative LiabilitiesMarch 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity Contracts
Designated as Hedging Instruments
Current$49 $ $ $ $ $ $  
Noncurrent160        
Not Designated as Hedging Instruments
Current61 36      24 
Noncurrent149 1      149 
Total Derivative Liabilities – Commodity Contracts$419 $37 $ $ $ $ $ $173 
Interest Rate Contracts
Designated as Hedging Instruments
Current$4 $ $ $ $ $ $ $ 
Noncurrent7        
Not Designated as Hedging Instruments
Current1     1   
Noncurrent2     2   
Total Derivative Liabilities – Interest Rate Contracts$14 $ $ $ $ $3 $ $ 
Total Derivative Liabilities$433 $37 $ $ $ $3 $ $173 
Derivative AssetsDecember 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current$199 $99 $72 $72 $— $$23 $
Noncurrent113 63 50 50 — — — — 
Total Derivative Assets – Commodity Contracts$312 $162 $122 $122 $— $$23 $
Interest Rate Contracts
Designated as Hedging Instruments
Current$$— $— $— $— $— $— $— 
Noncurrent— — — — — — — 
Not Designated as Hedging Instruments
Current— — — — — 
Total Derivative Assets – Interest Rate Contracts$$— $$$— $— $— $— 
Total Derivative Assets$320 $162 $124 $124 $— $$23 $
59

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING

Derivative LiabilitiesDecember 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity Contracts
Designated as Hedging Instruments
Current$27 $— $— $— $— $— $— $— 
Noncurrent117 — — — — — — — 
Not Designated as Hedging Instruments
Current72 18 19 14 — 13 21 
Noncurrent132 — — — 118 
Total Derivative Liabilities – Commodity Contracts$348 $27 $24 $10 $14 $— $13 $139 
Interest Rate Contracts
Designated as Hedging Instruments
Current$75 $— $— $— $— $— $— $— 
Noncurrent21 — — — — — — — 
Not Designated as Hedging Instruments
Current10 — — — — — 
Noncurrent18 — — — — 14 — 
Total Derivative Liabilities – Interest Rate Contracts$124 $$— $— $— $$14 $— 
Total Derivative Liabilities$472 $35 $24 $10 $14 $$27 $139 
OFFSETTING ASSETS AND LIABILITIES
The following tables present the line items on the Condensed Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The gross amounts offset in the tables below show the effect of these netting arrangements on financial position, and include collateral posted to offset the net position. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.
Derivative AssetsMarch 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current
Gross amounts recognized$767 $335 $295 $255 $40 $ $28 $7 
Gross amounts offset(255)(149)(106)(106)    
Net amounts presented in Current Assets: Other$512 $186 $189 $149 $40 $ $28 $7 
Noncurrent
Gross amounts recognized$341 $158 $130 $130 $ $ $17 $ 
Gross amounts offset(115)(64)(51)(51)    
Net amounts presented in Other Noncurrent Assets: Other$226 $94 $79 $79 $ $ $17 $ 
60

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING

Derivative LiabilitiesMarch 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current
Gross amounts recognized$115 $36 $ $ $ $1 $ $24 
Gross amounts offset        
Net amounts presented in Current Liabilities: Other$115 $36 $ $ $ $1 $ $24 
Noncurrent
Gross amounts recognized$318 $1 $ $ $ $2 $ $149 
Gross amounts offset        
Net amounts presented in Other Noncurrent Liabilities: Other$318 $1 $ $ $ $2 $ $149 
Derivative AssetsDecember 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current
Gross amounts recognized$204 $99 $74 $74 $— $$23 $
Gross amounts offset(25)(16)(9)(9)— — — — 
Net amounts presented in Current Assets: Other$179 $83 $65 $65 $— $$23 $
Noncurrent
Gross amounts recognized$116 $63 $50 $50 $— $— $— $— 
Gross amounts offset(23)(15)(8)(8)— — — — 
Net amounts presented in Other Noncurrent Assets: Other$93 $48 $42 $42 $— $— $— $— 
Derivative LiabilitiesDecember 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current
Gross amounts recognized$184 $26 $19 $$14 $$13 $21 
Gross amounts offset(11)(6)(5)(5)— — — — 
Net amounts presented in Current Liabilities: Other$173 $20 $14 $— $14 $$13 $21 
Noncurrent
Gross amounts recognized$288 $$$$— $$14 $118 
Gross amounts offset(12)(8)(5)(5)— — — — 
Net amounts presented in Other Noncurrent Liabilities: Other$276 $$— $— $— $$14 $118 
9. INVESTMENTS IN DEBT AND EQUITY SECURITIES
Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as AFS and investments in equity securities as fair value through net income (FV-NI).
For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.
Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.
61

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES

Investment Trusts
The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.
Other AFS Securities
Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of March 31, 2022, and December 31, 2021.
Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.
DUKE ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$ $ $128 $— $— $160 
Equity securities4,486 62 6,853 4,905 43 7,350 
Corporate debt securities9 43 786 39 829 
Municipal bonds2 16 321 14 314 
U.S. government bonds10 57 1,561 31 12 1,568 
Other debt securities 7 177 180 
Total NDTF Investments$4,507 $185 $9,826 $4,992 $63 $10,401 
Other Investments
Cash and cash equivalents$ $ $110 $— $— $36 
Equity securities31 4 147 36 — 156 
Corporate debt securities 7 124 119 
Municipal bonds1 2 83 80 
U.S. government bonds 2 45 — — 56 
Other debt securities 2 36 — 45 
Total Other Investments$32 $17 $545 $41 $$492 
Total Investments$4,539 $202 $10,371 $5,033 $66 $10,893 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were as follows.
Three Months Ended
(in millions)March 31, 2022March 31, 2021
FV-NI:
 Realized gains $111 $140 
 Realized losses85 23 
AFS:
 Realized gains4 18 
 Realized losses23 13 
62

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY CAROLINAS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$ $ $60 $— $— $53 
Equity securities2,632 30 3,962 2,887 19 4,265 
Corporate debt securities6 30 503 24 506 
Municipal bonds 5 52 — 48 
U.S. government bonds4 21 692 16 712 
Other debt securities 7 172 175 
Total NDTF Investments$2,642 $93 $5,441 $2,932 $27 $5,759 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were as follows.
Three Months Ended
(in millions)March 31, 2022March 31, 2021
FV-NI:
 Realized gains$75 $128 
 Realized losses 49 16 
AFS:
 Realized gains3 13 
 Realized losses16 
PROGRESS ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$ $ $68 $— $— $107 
Equity securities1,854 32 2,891 2,018 24 3,085 
Corporate debt securities3 13 283 15 323 
Municipal bonds2 11 269 12 266 
U.S. government bonds6 36 869 15 856 
Other debt securities  5 — — 
Total NDTF Investments$1,865 $92 $4,385 $2,060 $36 $4,642 
Other Investments
Cash and cash equivalents$ $ $17 $— $— $20 
Municipal bonds1  26 — 26 
Total Other Investments$1 $ $43 $$— $46 
Total Investments$1,866 $92 $4,428 $2,062 $36 $4,688 
63

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were as follows.
Three Months Ended
(in millions)March 31, 2022March 31, 2021
FV-NI:
 Realized gains$36 $12 
 Realized losses36 
AFS:
 Realized gains1 
 Realized losses6 
DUKE ENERGY PROGRESS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$ $ $58 $— $— $94 
Equity securities1,757 32 2,782 1,915 23 2,970 
Corporate debt securities3 12 255 15 282 
Municipal bonds2 11 269 12 266 
U.S. government bonds6 19 502 15 472 
Other debt securities  5 — — 
Total NDTF Investments$1,768 $74 $3,871 $1,957 $29 $4,089 
Other Investments
Cash and cash equivalents$ $ $14 $— $— $16 
Total Other Investments$ $ $14 $— $— $16 
Total Investments$1,768 $74 $3,885 $1,957 $29 $4,105 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were as follows.
Three Months Ended
(in millions)March 31, 2022March 31, 2021
FV-NI:
 Realized gains$36 $12 
 Realized losses35 
AFS:
 Realized gains1 
 Realized losses5 
64

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY FLORIDA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$ $ $10 $— $— $13 
Equity securities97  109 103 115 
Corporate debt securities 1 28 — — 41 
U.S. government bonds 17 367 — 384 
Total NDTF Investments(a)
$97 $18 $514 $103 $$553 
Other Investments
Cash and cash equivalents$ $ $2 $— $— $
Municipal bonds1  26 — 26 
Total Other Investments$1 $ $28 $$— $29 
Total Investments$98 $18 $542 $105 $$582 
(a)During the three months ended March 31, 2022, and the year ended December 31, 2021, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were immaterial.
DUKE ENERGY INDIANA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.
March 31, 2022December 31, 2021
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
Investments
Cash and cash equivalents$ $ $1 $— $— $— 
Equity securities4 4 91 — 97 
Corporate debt securities  8 — — 
Municipal bonds 2 49 46 
U.S. government bonds  6 — — 12 
Total Investments$4 $6 $155 $$$161 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2022, and 2021, were immaterial.
DEBT SECURITY MATURITIES
The table below summarizes the maturity date for debt securities.
March 31, 2022
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaIndiana
Due in one year or less$162 $7 $139 $32 $107 $8 
Due after one through five years969 367 528 270 258 24 
Due after five through 10 years536 235 228 212 16 6 
Due after 10 years1,466 810 557 517 40 25 
Total$3,133 $1,419 $1,452 $1,031 $421 $63 
65

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
10. FAIR VALUE MEASUREMENTS
Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.
Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value (NAV) per share practical expedient. The NAV is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.
Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.
Valuation methods of the primary fair value measurements disclosed below are as follows.
Investments in equity securities
The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the New York Stock Exchange and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.
Investments in debt securities
Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.
Commodity derivatives
Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of natural gas commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.
Interest rate derivatives
Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.
Other fair value considerations
See Note 11 in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2021, for a discussion of the valuation of goodwill and intangible assets.
66

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
DUKE ENERGY
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 8. See Note 9 for additional information related to investments by major security type for the Duke Energy Registrants.
March 31, 2022
(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized
NDTF cash and cash equivalents$128 $128 $ $ $ 
NDTF equity securities6,853 6,806   47 
NDTF debt securities2,845 947 1,898   
Other equity securities147 147    
Other debt securities288 39 249   
Other cash and cash equivalents110 110    
Derivative assets1,108 27 1,071 10  
Total assets11,479 8,204 3,218 10 47 
Derivative liabilities(433) (224)(209) 
Net assets (liabilities)$11,046 $8,204 $2,994 $(199)$47 
December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized
NDTF cash and cash equivalents$160 $160 $— $— $— 
NDTF equity securities7,350 7,300 — — 50 
NDTF debt securities2,891 967 1,924 — — 
Other equity securities156 156 — — — 
Other debt securities300 45 255 — — 
Other cash and cash equivalents36 36 — — — 
Derivative assets320 293 24 — 
Total assets11,213 8,667 2,472 24 50 
Derivative liabilities(472)(13)(314)(145)— 
Net assets (liabilities)$10,741 $8,654 $2,158 $(121)$50 
The following tables provide reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended March 31,
(in millions) 20222021
Balance at beginning of period$(121)$(77)
Total pretax realized or unrealized losses included in comprehensive income(68)(44)
Purchases, sales, issuances and settlements:
Settlements(3)(7)
Total (losses) gains included on the Condensed Consolidated Balance Sheet(7)
Balance at end of period$(199)$(126)
67

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
DUKE ENERGY CAROLINAS
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022
(in millions)Total Fair ValueLevel 1Level 2Not Categorized
NDTF cash and cash equivalents$60 $60 $ $ 
NDTF equity securities3,962 3,915  47 
NDTF debt securities1,419 349 1,070  
Derivative assets493  493  
Total assets5,934 4,324 1,563 47 
Derivative liabilities(37) (37) 
Net assets$5,897 $4,324 $1,526 $47 
December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Not Categorized
NDTF cash and cash equivalents$53 $53 $— $— 
NDTF equity securities4,265 4,215 — 50 
NDTF debt securities1,441 339 1,102 — 
Derivative assets162 — 162 — 
Total assets5,921 4,607 1,264 50 
Derivative liabilities(35)— (35)— 
Net assets$5,886 $4,607 $1,229 $50 
PROGRESS ENERGY
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalents$68 $68 $ $107 $107 $— 
NDTF equity securities2,891 2,891  3,085 3,085 — 
NDTF debt securities1,426 598 828 1,450 628 822 
Other debt securities26  26 26 — 26 
Other cash and cash equivalents17 17  20 20 — 
Derivative assets425 2 423 124 — 124 
Total assets4,853 3,576 1,277 4,812 3,840 972 
Derivative liabilities   (24)— (24)
Net assets$4,853 $3,576 $1,277 $4,788 $3,840 $948 
DUKE ENERGY PROGRESS
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalents$58 $58 $ $94 $94 $— 
NDTF equity securities2,782 2,782  2,970 2,970 — 
NDTF debt securities1,031 279 752 1,025 289 736 
Other cash and cash equivalents14 14  16 16 — 
Derivative assets385 2 383 124 — 124 
Total assets4,270 3,135 1,135 4,229 3,369 860 
Derivative liabilities   (10)— (10)
Net assets$4,270 $3,135 $1,135 $4,219 $3,369 $850 
68

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
DUKE ENERGY FLORIDA
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalents$10 $10 $ $13 $13 $— 
NDTF equity securities109 109  115 115 — 
NDTF debt securities395 319 76 425 339 86 
Other debt securities26  26 26 — 26 
Other cash and cash equivalents2 2  — 
Derivative assets40  40 — — — 
Total assets582 440 142 582 470 112 
Derivative liabilities   (14)— (14)
Net assets$582 $440 $142 $568 $470 $98 
DUKE ENERGY OHIO
The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets were not material at March 31, 2022, and December 31, 2021.
DUKE ENERGY INDIANA
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Level 3Total Fair ValueLevel 1Level 2Level 3
Other equity securities$91 $91 $ $ $97 $97 $— $— 
Other debt securities63  63  64 — 64 — 
Other cash and cash equivalents1 1   — — — — 
Derivative assets45 18 17 10 23 — 22 
Total assets200 110 80 10 184 98 64 22 
Derivative liabilities    (27)(13)(14)— 
Net assets$200 $110 $80 $10 $157 $85 $50 $22 
The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended March 31,
(in millions)20222021
Balance at beginning of period$22 $
Purchases, sales, issuances and settlements:
Settlements(6)(6)
Total (losses) gains included on the Condensed Consolidated Balance Sheet(6)
Balance at end of period$10 $
PIEDMONT
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
March 31, 2022December 31, 2021
(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
Derivative assets$7 $7 $ $$$— 
Derivative liabilities(173) (173)(139)— (139)
Net (liabilities) assets$(166)$7 $(173)$(136)$$(139)
69

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.
March 31, 2022
Weighted
Fair ValueAverage
Investment Type(in millions)Valuation TechniqueUnobservable InputRangeRange
Duke Energy      
Electricity contracts$(210)RTO forward pricingForward electricity curves – price per MWh$20.33 -$187.82 $46.51 
Duke Energy Ohio 
FTRs1 RTO auction pricingFTR price – per MWh0.16 -1.26 0.63 
Duke Energy Indiana 
FTRs10 RTO auction pricingFTR price – per MWh(0.46)-17.24 2.32 
Duke Energy
Total Level 3 derivatives$(199)
December 31, 2021
Weighted
Fair ValueAverage
Investment Type(in millions)Valuation TechniqueUnobservable InputRangeRange
Duke Energy      
Electricity contracts$(145)RTO forward pricingForward electricity curves – price per MWh$19.04 -$139.11$37.57
Duke Energy Ohio   
FTRsRTO auction pricingFTR price – per MWh0.06 -1.79 0.96 
Duke Energy Indiana   
FTRs22 RTO auction pricingFTR price – per MWh(1.18)-13.11 2.68 
Duke Energy
Total Level 3 derivatives$(121)
OTHER FAIR VALUE DISCLOSURES
The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.
March 31, 2022December 31, 2021
(in millions)Book ValueFair ValueBook ValueFair Value
Duke Energy(a)
$66,080 $66,633 $63,835 $69,683 
Duke Energy Carolinas14,470 15,117 13,275 15,101 
Progress Energy21,657 22,669 20,823 23,751 
Duke Energy Progress11,114 11,260 10,249 11,252 
Duke Energy Florida8,451 8,911 8,482 9,772 
Duke Energy Ohio3,193 3,278 3,193 3,570 
Duke Energy Indiana4,270 4,554 4,323 5,067 
Piedmont2,969 2,984 2,968 3,278 
(a)Book value of long-term debt includes $1.2 billion and $1.25 billion at March 31, 2022, and December 31, 2021, respectively, of net unamortized debt discount and premium of purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.
At both March 31, 2022, and December 31, 2021, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.
11. VARIABLE INTEREST ENTITIES
CONSOLIDATED VIEs
The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.
70

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES

No financial support was provided to any of the consolidated VIEs during the three months ended March 31, 2022, and the year ended December 31, 2021, or is expected to be provided in the future that was not previously contractually required.
Receivables Financing – DERF/DEPR/DEFR
DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies.
DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the credit facilities are reflected on the Condensed Consolidated Balance Sheets as Long-Term Debt.
The most significant activity that impacts the economic performance of DERF, DEPR and DEFR are the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are considered the primary beneficiaries and consolidate DERF, DEPR and DEFR, respectively, as they make those decisions.
Receivables Financing – CRC
CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC buys certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC borrows amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility is limited to the amount of qualified receivables sold to CRC, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligation is cash collections from the receivables. Amounts borrowed under the credit facility are reflected on Duke Energy's Condensed Consolidated Balance Sheets as Long-Term Debt.
The proceeds Duke Energy Ohio and Duke Energy Indiana receive from the sale of receivables to CRC are approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note is a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC may be required by Duke Energy to maintain a minimum equity balance of $3 million.
CRC is considered a VIE because (i) equity capitalization is insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity is not held by the equity holder and (iii) deficiencies in net worth of CRC are funded by Duke Energy. The most significant activities that impact the economic performance of CRC are decisions made to manage delinquent receivables. Duke Energy is considered the primary beneficiary and consolidates CRC as it makes these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidate CRC.
Receivables Financing – Credit Facilities
The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.
Duke Energy
Duke EnergyDuke EnergyDuke Energy
CarolinasProgressFlorida
(in millions)CRCDERFDEPRDEFR
Expiration dateFebruary 2025January 2025April 2023April 2023
Credit facility amount$350 $475 $350 $250 
Amounts borrowed at March 31, 2022350 499 350 250 
Amounts borrowed at December 31, 2021350 475 350 250 
Restricted Receivables at March 31, 2022566 858 658 503 
Restricted Receivables at December 31, 2021587 844 574 427 
Nuclear Asset-Recovery Bonds – DEFPF
DEFPF is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.
In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.
DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.
71

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES

The following table summarizes the impact of DEFPF on Duke Energy Florida's Condensed Consolidated Balance Sheets.
(in millions)March 31, 2022December 31, 2021
Receivables of VIEs$5 $
Regulatory Assets: Current54 54 
Current Assets: Other13 39 
Other Noncurrent Assets: Regulatory assets872 883 
Current Liabilities: Other2 
Current maturities of long-term debt56 56 
Long-Term Debt916 946 
Storm Recovery Bonds – Duke Energy Carolinas NC Storm Funding and Duke Energy Progress NC Storm Funding
Duke Energy Carolinas NC Storm Funding, LLC. (DECNCSF) and Duke Energy Progress NC Storm Funding, LLC. (DEPNCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress, respectively. These entities were formed in 2021 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs.
In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress.
DECNCSF and DEPNCSF are considered VIEs primarily because the equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries and consolidate DECNCSF and DEPNCSF, respectively.
The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.
March 31, 2022December 31, 2021
Duke EnergyDuke EnergyDuke EnergyDuke Energy
(in millions)CarolinasProgressCarolinasProgress
Regulatory Assets: Current$12 $39 $12 $39 
Current Assets: Other4 14 — — 
Other Noncurrent Assets: Regulatory assets217 711 220 720 
Other Noncurrent Assets: Other1 4 
Current Liabilities: Other2 6 — — 
Current maturities of long-term debt10 32 15 
Long-Term Debt223 730 228 747 
Commercial Renewables
Certain of Duke Energy’s renewable energy facilities are VIEs due to Duke Energy issuing guarantees for debt service and operations and maintenance reserves in support of debt financings. Assets are restricted and cannot be pledged as collateral or sold to third parties without prior approval of debt holders. Additionally, Duke Energy has VIEs associated with tax equity arrangements entered into with third-party investors in order to finance the cost of renewable assets eligible for tax credits. The activities that most significantly impacted the economic performance of these renewable energy facilities were decisions associated with siting, negotiating PPAs and Engineering, Procurement and Construction agreements, and decisions associated with ongoing operations and maintenance-related activities. Duke Energy is considered the primary beneficiary and consolidates the entities as it is responsible for all of these decisions.
The table below presents material balances reported on Duke Energy's Condensed Consolidated Balance Sheets related to Commercial Renewables VIEs.
(in millions)March 31, 2022December 31, 2021
Current Assets: Other$215 $215 
Property, Plant and Equipment: Cost7,337 7,339 
Accumulated depreciation and amortization(1,534)(1,474)
Other Noncurrent Assets: Other70 62 
Current maturities of long-term debt297 167 
Long-Term Debt1,325 1,475 
Other Noncurrent Liabilities: AROs173 173 
Other Noncurrent Liabilities: Other360 319 
72

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES

NON-CONSOLIDATED VIEs
The following tables summarize the impact of non-consolidated VIEs on the Condensed Consolidated Balance Sheets.
March 31, 2022
Duke EnergyDuke Duke
PipelineCommercialEnergyEnergy
(in millions)InvestmentsRenewablesTotalOhioIndiana
Receivables from affiliated companies$ $ $ $65 $80 
Investments in equity method unconsolidated affiliates29 504 533   
Deferred tax asset61  61   
Total assets$90 $504 $594 $65 $80 
Other current liabilities50 3 53   
Other noncurrent liabilities52 3 55   
Total liabilities$102 $6 $108 $ $ 
Net (liabilities) assets$(12)$498 $486 $65 $80 
December 31, 2021
Duke EnergyDuke Duke
PipelineCommercialEnergyEnergy
(in millions)InvestmentsRenewablesTotalOhioIndiana
Receivables from affiliated companies$— $— $— $79 $97 
Investments in equity method unconsolidated affiliates15 508 523 — — 
Other noncurrent assets61 — 61 — — 
Total assets$76 $508 $584 $79 $97 
Other current liabilities47 51 — — 
Other noncurrent liabilities54 57 — — 
Total liabilities$101 $$108 $— $— 
Net (liabilities) assets$(25)$501 $476 $79 $97 
The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above except for certain renewable energy project entities guarantees for debt services and operations and maintenance, as discussed below.
Pipeline Investments
Duke Energy has investments in various joint ventures to construct and operate pipeline projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.
Commercial Renewables
Duke Energy has investments in various renewable energy project entities. Duke Energy has a 50% ownership in a VIE, which owns a portfolio of wind projects. This entity is a VIE as a result of Duke Energy issuing guarantees for debt service and operations and maintenance reserves in support of debt financings. Duke Energy does not consolidate this VIE because power to direct and control key activities is shared jointly by Duke Energy and the other owner. Duke Energy also has equity ownership in an entity, which owns a portfolio of fuel cell projects. Duke Energy does not consolidate the fuel cell portfolio as it does not have the power to direct the activities that most significantly impact the economic performance of the entity.
OVEC
Duke Energy Ohio’s 9% ownership interest in OVEC is considered a non-consolidated VIE due to OVEC having insufficient equity to finance its activities without subordinated financial support. The activities that most significantly impact OVEC's economic performance include fuel strategy and supply activities and decisions associated with ongoing operations and maintenance-related activities. Duke Energy Ohio does not have the unilateral power to direct these activities, and therefore, does not consolidate OVEC.
As a counterparty to an Inter-Company Power Agreement (ICPA), Duke Energy Ohio has a contractual arrangement to receive entitlements to capacity and energy from OVEC’s power plants through June 2040 commensurate with its power participation ratio, which is equivalent to Duke Energy Ohio's ownership interest. Costs, including fuel, operating expenses, fixed costs, debt amortization and interest expense, are allocated to counterparties to the ICPA based on their power participation ratio. The value of the ICPA is subject to variability due to fluctuation in power prices and changes in OVEC's cost of business.
CRC
See discussion under Consolidated VIEs for additional information related to CRC.
73

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES

Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC. These subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value.
The following table shows the gross and net receivables sold.
Duke Energy OhioDuke Energy Indiana
(in millions)March 31, 2022December 31, 2021March 31, 2022December 31, 2021
Receivables sold$263 $269 $305 $328 
Less: Retained interests65 79 80 97 
Net receivables sold$198 $190 $225 $231 
The following table shows sales and cash flows related to receivables sold.
Duke Energy OhioDuke Energy Indiana
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)2022202120222021
Sales
Receivables sold$663 $561 $782 $698 
Loss recognized on sale3 4 
Cash flows
Cash proceeds from receivables sold$674 $596 $795 $746 
Collection fees received —  — 
Return received on retained interests1 2 
Cash flows from sales of receivables are reflected within Cash Flows From Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Condensed Consolidated Statements of Cash Flows.
12. REVENUE
Duke Energy earns substantially all of its revenues through its reportable segments, Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.
Electric Utilities and Infrastructure
Electric Utilities and Infrastructure earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.
The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:
Remaining Performance Obligations
(in millions)20222023202420252026ThereafterTotal
Progress Energy$80 $53 $45 $$$43 $235 
Duke Energy Progress6 — — — 22 
Duke Energy Florida74 45 37 43 213 
Duke Energy Indiana2 11 16 17 15 12 73 
Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.
74

FINANCIAL STATEMENTSREVENUE

Fixed-capacity payments under long-term contracts for the Gas Utilities and Infrastructure segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:
Remaining Performance Obligations
(in millions)20222023202420252026ThereafterTotal
Piedmont$48 $64 $61 $60 $50 $286 $569 
Commercial Renewables
Commercial Renewables earns the majority of its revenues through long-term PPAs and generally sells all of its wind and solar facility output, electricity and Renewable Energy Certificates (RECs) to customers. Some of these PPAs have been accounted for as leases. For PPAs that are not accounted for as leases, the delivery of electricity and the delivery of RECs are considered separate performance obligations.
Other
The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.
Disaggregated Revenues
Disaggregated revenues are presented as follows:
Three Months Ended March 31, 2022
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
   Residential$2,767 $831 $1,368 $624 $744 $211 $354 $ 
   General1,604 544 726 325 401 116 218  
   Industrial772 276 270 194 76 35 192  
   Wholesale626 113 411 349 62 23 79  
   Other revenues202 111 211 139 72 21 (36) 
Total Electric Utilities and Infrastructure revenue from contracts with customers$5,971 $1,875 $2,986 $1,631 $1,355 $406 $807 $ 
Gas Utilities and Infrastructure
   Residential$572 $ $ $ $ $149 $ $423 
   Commercial269     64  204 
   Industrial57     7  50 
   Power Generation       24 
   Other revenues115     6  93 
Total Gas Utilities and Infrastructure revenue from contracts with customers$1,013 $ $ $ $ $226 $ $794 
Commercial Renewables
Revenue from contracts with customers$51 $ $ $ $ $ $ $ 
Other
Revenue from contracts with customers$7 $ $ $ $ $ $ $ 
Total revenue from contracts with customers$7,042 $1,875 $2,986 $1,631 $1,355 $632 $807 $794 
Other revenue sources(a)
$90 $13 $6 $1 $ $6 $15 $11 
Total revenues$7,132 $1,888 $2,992 $1,632 $1,355 $638 $822 $805 
(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.
75

FINANCIAL STATEMENTSREVENUE

Three Months Ended March 31, 2021
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
   Residential$2,462 $793 $1,162 $560 $602 $195 $313 $— 
   General1,419 502 624 306 318 104 189 — 
   Industrial662 256 207 145 62 31 167 — 
   Wholesale504 114 326 292 34 13 50 — 
   Other revenues226 74 160 83 77 22 18 — 
Total Electric Utilities and Infrastructure revenue from contracts with customers$5,273 $1,739 $2,479 $1,386 $1,093 $365 $737 $— 
Gas Utilities and Infrastructure
   Residential$460 $— $— $— $— $110 $— $351 
   Commercial204 — — — — 48 — 156 
   Industrial50 — — — — — 43 
   Power Generation— — — — — — — 22 
   Other revenues47 — — — — — 26 
Total Gas Utilities and Infrastructure revenue from contracts with customers$761 $— $— $— $— $170 $— $598 
Commercial Renewables
Revenue from contracts with customers$54 $— $— $— $— $— $— $— 
Other
Revenue from contracts with customers$$— $— $— $— $— $— $— 
Total revenue from contracts with customers$6,094 $1,739 $2,479 $1,386 $1,093 $535 $737 $598 
Other revenue sources(a)
$56 $(23)$26 $15 $$(3)$$
Total revenues$6,150 $1,716 $2,505 $1,401 $1,101 $532 $745 $606 
(a)Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
Duke Energy adopted the new guidance for credit losses effective January 1, 2020, using the modified retrospective method of adoption, which does not require restatement of prior year reported results. The following table presents the reserve for credit losses for trade and other receivables based on adoption of the new standard.
Three Months Ended March 31, 2021 and 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Balance at December 31, 2020$146 $23 $37 $23 $14 $$$12 
Write-Offs(21)(8)(10)(5)(5)— — (1)
Credit Loss Expense17 10 — — 
Other Adjustments— — — 
Balance at March 31, 2021$147 $34 $37 $23 $15 $$$14 
Balance at December 31, 2021$122 $42 $36 $21 $16 $$$15 
Write-Offs(23)(9)(10)(2)(8)  (1)
Credit Loss Expense24 5 12 4 8   3 
Other Adjustments17 14 13 8 5    
Balance at March 31, 2022$140 $52 $51 $31 $21 $4 $3 $17 
76

FINANCIAL STATEMENTSREVENUE

Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables.
The aging of trade receivables is presented in the table below. Duke Energy considers receivables greater than 30 days outstanding past due.
March 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unbilled Revenue(a)(b)
$945 $339 $270 $161 $109 $7 $44 $64 
0-30 days2,133 518 944 558 386 40 26 215 
30-60 days288 75 111 64 47 8 4 23 
60-90 days102 33 40 22 18 2 3 7 
90+ days274 119 77 39 38 46 9 7 
Deferred Payment Arrangements(c)
136 60 61 33 28 2  4 
Trade and Other Receivables$3,878 $1,144 $1,503 $877 $626 $105 $86 $320 
December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unbilled Revenue(a)(b)
$964 $316 $266 $193 $73 $$27 $106 
0-30 days2,104 595 800 405 393 42 51 202 
30-60 days212 77 72 44 28 13 12 
60-90 days88 37 41 21 20 
90+ days249 106 65 37 28 47 11 
Deferred Payment Arrangements(c)
115 55 45 22 23 — 
Trade and Other Receivables$3,732 $1,186 $1,289 $722 $565 $100 $103 $333 
(a)Unbilled revenues are recognized by applying customer billing rates to the estimated volumes of energy or natural gas delivered but not yet billed and are included within Receivables and Receivables of VIEs on the Condensed Consolidated Balance Sheets.
(b)Duke Energy Ohio and Duke Energy Indiana sell, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 11 for further information. These receivables for unbilled revenues are $63 million and $100 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of March 31, 2022, and $82 million and $121 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2021.
(c)Due to certain customer financial hardships created by the COVID-19 pandemic and resulting stay-at-home orders, Duke Energy permitted customers to defer payment of past-due amounts through an installment payment plan over a period of several months.
13. STOCKHOLDERS' EQUITY
Basic EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as equity forward sale agreements, were exercised or settled. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common stock during the restricted stock unit’s vesting periods. Dividends declared on preferred stock are recorded on the Condensed Consolidated Statements of Operations as a reduction of net income to arrive at net income available to Duke Energy common stockholders. Dividends accumulated on preferred stock are an adjustment to net income used in the calculation of basic and diluted EPS.
77

FINANCIAL STATEMENTSSTOCKHOLDERS' EQUITY

The following table presents Duke Energy’s basic and diluted EPS calculations, the weighted average number of common shares outstanding and common and preferred share dividends declared.
Three Months Ended March 31,
(in millions, except per share amounts)20222021
Net income available to Duke Energy common stockholders$818 $953 
Accumulated preferred stock dividends adjustment12 12 
Less: Impact of participating securities1 
Income from continuing operations available to Duke Energy common stockholders$829 $964 
Weighted average common shares outstanding – basic and diluted770 769 
EPS available to Duke Energy common stockholders
Basic and diluted$1.08 $1.25 
Potentially dilutive items excluded from the calculation(a)
2 
Dividends declared per common share$0.985 $0.965 
Dividends declared on Series A preferred stock per depositary share(b)
$0.359 $0.359 
Dividends declared on Series B preferred stock per share(c)
$24.375 $24.375 
(a)Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.
(b)5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation preference per depositary share.
(c)4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends are payable semiannually in arrears on the 16th day of March and September. The preferred stock has a $1,000 liquidation preference per share.
14. EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT RETIREMENT PLANS
Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified and non-qualified, non-contributory defined benefit retirement plans. Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants.
QUALIFIED PENSION PLANS
The following tables include the components of net periodic pension costs for qualified pension plans.
Three Months Ended March 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$40 $12 $12 $7 $4 $1 $2 $1 
Interest cost on projected benefit obligation58 14 18 8 10 3 5 2 
Expected return on plan assets(140)(38)(46)(22)(24)(5)(9)(6)
Amortization of actuarial loss24 5 6 3 3 1 2 2 
Amortization of prior service credit(5)(1)     (2)
Amortization of settlement charges2 1 1      
Net periodic pension costs$(21)$(7)$(9)$(4)$(7)$ $ $(3)
Three Months Ended March 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$44 $14 $13 $$$$$
Interest cost on projected benefit obligation55 13 17 10 
Expected return on plan assets(139)(35)(47)(21)(26)(7)(10)(5)
Amortization of actuarial loss33 10 
Amortization of prior service credit(7)(2)(1)— — — — (1)
Amortization of settlement charges— — — — — 
Net periodic pension costs$(12)$(2)$(7)$(2)$(6)$(1)$— $(1)
78

FINANCIAL STATEMENTSEMPLOYEE BENEFIT PLANS

NON-QUALIFIED PENSION PLANS
Net periodic pension costs for non-qualified pension plans were not material for the three months ended March 31, 2022, and 2021.
OTHER POST-RETIREMENT BENEFIT PLANS
Net periodic costs for OPEB plans were not material for the three months ended March 31, 2022, and 2021.
15. INCOME TAXES
EFFECTIVE TAX RATES
The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.
Three Months Ended
March 31,
20222021
Duke Energy(1.7)%8.2 %
Duke Energy Carolinas7.4 %6.9 %
Progress Energy15.9 %12.9 %
Duke Energy Progress14.0 %8.3 %
Duke Energy Florida20.1 %19.3 %
Duke Energy Ohio(266.7)%13.3 %
Duke Energy Indiana31.9 %17.6 %
Piedmont13.4 %11.4 %
The decrease in the ETR for Duke Energy for the three months ended March 31, 2022, was primarily due to an increase in the amortization of excess deferred taxes related to the Duke Energy Ohio MGP Settlement.
The increase in the ETR for Progress Energy for the three months ended March 31, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
The increase in the ETR for Duke Energy Progress for the three months ended March 31, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
The decrease in the ETR for Duke Energy Ohio for the three months ended March 31, 2022, was primarily due to an increase in the amortization of excess deferred taxes related to the MGP Settlement.
The increase in the ETR for Duke Energy Indiana for the three months ended March 31, 2022, was primarily due to the coal ash impairment based on the Indiana Supreme Court Opinion.
The increase in the ETR for Piedmont for the three months ended March 31, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
16. SUBSEQUENT EVENTS
For information on subsequent events related to regulatory matters, and commitments and contingencies, see Notes 3 and 4.
79

MD&ADUKE ENERGY

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.
DUKE ENERGY
Duke Energy is an energy company headquartered in Charlotte, North Carolina. Duke Energy operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated financial information, it necessarily includes the results of the Subsidiary Registrants, which along with Duke Energy are collectively referred to as the Duke Energy Registrants.
Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the three months ended March 31, 2022, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2021.
Executive Overview
Advancing Our Clean Energy Transformation
During the first quarter, we continued to execute on our clean energy transformation, delivering strong, sustainable value for shareholders, customers, communities and employees.
We’re targeting energy generated from coal to represent less than 5% by 2030 and a full exit by 2035, subject to regulatory approvals. We’ve made strong progress in reducing carbon emissions from electricity generation (a 44% reduction from 2005) and have committed to do more (at least 50% reduction by 2030 and net-zero by 2050).
We continued to execute financings under our Sustainable Financing Framework, raising approximately $2 billion during the quarter under the structure, with proceeds being allocated to eligible projects such as electric grid investments that support the deployment of renewables, new solar generation and battery storage, storm hardening and electric vehicle infrastructure, as well as expenditures that enable opportunities for diverse and small businesses.
Regulatory Activity. During the first quarter of 2022, we continued to monitor developments while moving our regulatory strategy forward. See Note 3 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.
In April 2022, the MGP Settlement was approved without modification by the PUCO. The MGP Settlement resolved certain issues related to MGP remediation costs and the Tax Act as it related to Duke Energy Ohio’s natural gas operations.
In April 2022, Piedmont Natural Gas filed a request with the South Carolina Public Service Commission to recover recent capital investments and update its operating costs and billing rates through a general rate case proceeding.
In March 2022, the Indiana Supreme Court issued an opinion, which absent IURC preapproval of deferred accounting treatment determined DEI could not recover coal ash closure costs incurred between base rate cases. In connection with the rate case application filed in Indiana in 2019 by Duke Energy Indiana, the IURC issued an order in June 2020, which among other things provided for recovery of approximately $211 million of certain coal ash closure costs incurred by DEI prior to the IURC Order. The Court remanded the matter back to the IURC for proceedings consistent with the opinion. Duke Energy Indiana filed a request for rehearing with the Supreme Court on April 11, 2022.
In February 2022, the NCUC adopted rules to govern the application and review process for the PBR authorized under HB 951. In April 2022, the NCUC adopted rules to govern the securitization of 50% of the North Carolina retail portion of the remaining net book value of retiring coal plants pursuant to HB 951. The rules are constructive and consistent with the policy objectives of HB 951. We remain engaged in next steps including developing an initial carbon reduction plan.
In January 2022, the NCUC issued an order approving the stipulation of partial settlement related to the 2021 Piedmont North Carolina Rate Case, which included a base rate increase of $67 million, subject to completion of the Robeson County LNG facility and the Pender Onslow County expansion project.
Matters Impacting Future Results
The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.
Regulatory Matters
Coal Ash Costs
Future spending of coal ash costs, including amounts recorded for depreciation and liability accretion, is expected to continue to be deferred and recovered in future rate cases or rider filings. The majority of spend is expected to occur over the next 15-20 years.
80

MD&AMATTERS IMPACTING FUTURE RESULTS

Duke Energy Indiana has interpreted the CCR rule to identify the coal ash basin sites impacted and has assessed the amounts of coal ash subject to the rule and a method of compliance. In 2020, the Hoosier Environmental Council filed a petition challenging the Indiana Department of Environmental Management's (IDEM) partial approval of five of Duke Energy Indiana’s ash pond site closure plans at Gallagher Station. The petition does not challenge the other basin closures approved by IDEM at other Indiana stations. Interpretation of the requirements of the CCR rule is subject to further legal challenges and regulatory approvals, which could result in additional ash basin closure requirements, higher costs of compliance and greater AROs. Additionally, Duke Energy Indiana has retired facilities that are not subject to the CCR rule. Duke Energy Indiana may incur costs at these facilities to comply with environmental regulations or to mitigate risks associated with on-site storage of coal ash. In January 2022, Duke Energy Indiana received a letter from the EPA regarding interpretation of the CCR rule. See Note 4 to the Condensed Consolidated Financial Statements, "Commitments and Contingencies" for more information.
Commercial Renewables
Duke Energy continues to monitor recoverability of renewable merchant plants located in the ERCOT West market and in the PJM West market, due to fluctuating market pricing and long-term forecasted energy prices. Based on the most recent recoverability test, the carrying value approximated the aggregate estimated future undiscounted cash flows for the assets under review. A continued decline in energy market pricing or other factors unfavorably impacting the economics would likely result in a future impairment. Impairment of these assets could result in adverse impacts. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, "Business Segments."
In February 2021, a severe winter storm impacted certain Commercial Renewables assets in Texas. Extreme weather conditions limited the ability for these solar and wind facilities to generate and sell electricity into the ERCOT market. Duke Energy has been named in multiple lawsuits arising out of this winter storm. For more information, see Note 4 to the Condensed Consolidated Financial Statements, "Commitments and Contingencies."
Supply Chain
Duke Energy is monitoring supply chain disruptions, including the cost and availability of key components of planned generating facilities, which could impact the timing of in-service or economics of renewable projects and may result in adverse impacts on operating results. The Company is also monitoring the impacts on future financial results and clean energy goals due to the availability of solar panels as a result of the U.S. Department of Commerce investigation into the potential circumvention of anti-dumping and countervailing duties by certain Chinese companies.
Results of Operations
Non-GAAP Measures
Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures such as adjusted earnings and adjusted EPS discussed below. Generally, a non-GAAP financial measure is a numerical measure of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. As discussed below, special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Earnings (Loss) Per Share, respectively.
Special items included in the periods presented below include the following, which management believes do not reflect ongoing costs:
Regulatory Matters represents the net impact of charges related to the 2022 Indiana Supreme Court ruling on coal ash.
Gas Pipeline Investments represents additional exit obligations related to ACP.
Three Months Ended March 31, 2022, as compared to March 31, 2021
GAAP reported EPS was $1.08 for the first quarter of 2022 compared to a $1.25 in the first quarter of 2021. In addition to the drivers below, GAAP reported EPS decreased primarily due to charges related to the Indiana Supreme Court ruling on coal ash.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s first quarter 2022 adjusted EPS was $1.30 compared to $1.26 for the first quarter of 2021. The increase in adjusted EPS was primarily due to higher volumes, partially offset by higher operation and maintenance expense, including storm costs, and lower returns on benefit trusts.
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MD&ADUKE ENERGY

The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
 Three Months Ended March 31,
20222021
(in millions, except per share amounts)EarningsEPS EarningsEPS
GAAP Reported Earnings/GAAP Reported EPS$818 $1.08 $953 $1.25 
Adjustments:
Regulatory Matters(a)
173 0.22 — — 
Gas Pipeline Investments(b)
  0.01 
Adjusted Earnings/Adjusted EPS$991 $1.30 $958 $1.26 
(a)Net of tax benefit of $62 million and $22 million in noncontrolling interests.
(b)Net of tax benefit of $1 million.
SEGMENT RESULTS
The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.
Duke Energy's segment structure includes the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The remainder of Duke Energy’s operations is presented as Other. See Note 2 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.
Electric Utilities and Infrastructure
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$6,002 $5,281 $721 
Operating Expenses
Fuel used in electric generation and purchased power1,837 1,462 375 
Operation, maintenance and other1,426 1,282 144 
Depreciation and amortization1,131 1,057 74 
Property and other taxes337 311 26 
Impairment of assets and other charges214 — 214 
Total operating expenses4,945 4,112 833 
Gains on Sales of Other Assets and Other, net2 — 
Operating Income1,059 1,169 (110)
Other Income and Expenses, net114 104 10 
Interest Expense376 340 36 
Income Before Income Taxes797 933 (136)
Income Tax Expense83 113 (30)
Add: Loss Attributable to Noncontrolling Interest9 — 
Segment Income$723 $820 $(97)
Duke Energy Carolinas GWh sales22,549 21,962 587 
Duke Energy Progress GWh sales17,969 16,537 1,432 
Duke Energy Florida GWh sales9,902 8,554 1,348 
Duke Energy Ohio GWh sales5,997 6,004 (7)
Duke Energy Indiana GWh sales7,950 7,726 224 
Total Electric Utilities and Infrastructure GWh sales64,367 60,783 3,584 
Net proportional MW capacity in operation49,340 50,026 (686)
Three Months Ended March 31, 2022, as compared to March 31, 2021
Electric Utilities and Infrastructure’s lower segment income is due to the Indiana Supreme Court ruling on recovery of certain coal ash costs and higher storm costs, partially offset by higher retail sales volumes. The following is a detailed discussion of the variance drivers by line item.
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MD&ASEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

Operating Revenues. The variance was driven primarily by:
a $266 million increase in fuel revenues primarily due to higher fuel prices and retail sales volumes;
a $243 million increase in weather-normal retail sales volumes;
a $126 million increase in retail base rate pricing due to general rate cases in North Carolina, net of rider impacts as well as multiyear rate adjustments in Florida; and
a $46 million increase in wholesale revenues primarily due to higher capacity volumes.
Partially offset by
a $46 million decrease due to the Indiana Supreme Court ruling on recovery of certain coal ash costs.
Operating Expenses. The variance was driven primarily by:
a $375 million increase in fuel used in electric generation and purchased power due to higher fuel prices and volumes from customer demand;
a $214 million increase in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs;
a $144 million increase in operation, maintenance and other primarily driven by higher storm costs and higher outage and maintenance costs;
a $74 million increase in depreciation and amortization primarily due to higher plant in service and resolution of prior year rate cases, partially offset by lower depreciation related to the extension of the lives of nuclear facilities; and
a $26 million increase in property and other taxes primarily due to higher payroll taxes due to CARES Act employee retention credits in the prior year, increased property tax as well as higher revenue related taxes.
Interest Expense. The variance was primarily driven by interest expense on excess deferred tax liabilities.
Income Tax Expense. The decrease in tax expense was primarily due to a decrease in pretax income. The ETRs for the three months ended March 31, 2022, and 2021, were 10.4% and 12.1%, respectively. The decrease in the ETR was primarily due to the amortization of excess deferred taxes in relation to lower pretax income.
Gas Utilities and Infrastructure
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$1,032 $775 $257 
Operating Expenses
Cost of natural gas481 276 205 
Operation, maintenance and other182 102 80 
Depreciation and amortization79 68 11 
Property and other taxes41 35 
Total operating expenses783 481 302 
Operating Income249 294 (45)
Other Income and Expenses, Net17 17 — 
Interest Expense40 33 
Income Before Income Taxes226 278 (52)
Income Tax (Benefit) Expense(28)33 (61)
Segment Income$254 $245 $
Piedmont LDC throughput (dekatherms)180,187,101 149,626,582 30,560,519 
Duke Energy Midwest LDC throughput (Mcf)37,246,072 37,109,003 137,069 
Three Months Ended March 31, 2022, as compared to March 31, 2021
Gas Utilities and Infrastructure’s results were impacted primarily by margin growth. The following is a detailed discussion of the variance drivers by line item.
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MD&ASEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Operating Revenues. The variance was driven primarily by:
a $205 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs, partially offset by lower residential volumes;
a $35 million increase due to base rate increases;
a $7 million increase due to rider revenues related to Ohio Capital Expenditure Program (CEP); and
a $6 million increase due to customer growth.
Partially offset by:
a $15 million decrease due to the MGP settlement.
Operating Expenses. The variance was driven primarily by:
a $205 million increase in cost of natural gas due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs, partially offset by lower residential volumes;
an $80 million increase in operation, maintenance and other primarily due to the MGP settlement; and
an $11 million increase in depreciation and amortization due to additional plant in service and lower CEP deferrals.
Income Tax Benefit. The decrease in tax expense was primarily due to an increase in the amortization of excess deferred taxes related to the Ohio MGP Settlement and a decrease in pretax income. The ETRs for the three months ended March 31, 2022, and 2021, were -12.4% and 11.9%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of excess deferred taxes related to the Ohio MGP Settlement.
Commercial Renewables
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$121 $119 $
Operating Expenses
Operation, maintenance and other82 72 10 
Depreciation and amortization60 53 
Property and other taxes10 
Total operating expenses152 134 18 
Losses on Sales of Other Assets and Other, net(1)— (1)
Operating Loss(32)(15)(17)
Other Income and Expenses, net (25)25 
Interest Expense18 13 
Loss Before Income Taxes(50)(53)
Income Tax Benefit(33)(29)(4)
Add: Loss Attributable to Noncontrolling Interests28 51 (23)
Segment Income$11 $27 $(16)
Renewable plant production, GWh2,988 2,588 400 
Net proportional MW capacity in operation(a)
4,753 4,294 459 
(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.
Three Months Ended March 31, 2022, as compared to March 31, 2021
Commercial Renewables' results were unfavorable primarily driven by fewer project investments financed by tax equity being placed into service in the current year and higher operating expenses for projects placed in service since the prior year, offset by the impacts for losses experienced in the prior year from Texas Storm Uri.
Operating Expenses. The variance was primarily driven by a $14 million increase for higher operating expenses, depreciation, property tax expense, and other development costs from the growth of new projects and a $4 million increase for higher operating expenses attributed to maintenance and other operating expenses.
Other Income and Expenses, net. The increase was primarily due to $29 million of losses experienced in the prior year from Texas Storm Uri offset by approximately $5 million decrease in equity earnings.
Interest Expense. The increase is primarily due to a $4 million gain recorded in the prior year for an interest rate swap that did not qualify for hedge accounting.
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MD&ASEGMENT RESULTS — COMMERCIAL RENEWABLES

Income Tax Benefit. The increase in the tax benefit was primarily due to a decrease in taxes associated with tax equity investments.
Loss Attributable to Noncontrolling Interests. The variance was driven by a $23 million decrease for fewer projects placed in service financed with tax equity in the current year and a $12 million net decrease in losses allocated to tax equity members from existing tax equity structures offset by a $12 million increase for losses experienced in the prior year from Texas Storm Uri.
Other
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$30 $26 $
Operating Expenses33 28 
Gains on Sales of Other Assets and Other, net1 — 
Operating Loss(2)(2)— 
Other Income and Expenses, net(6)21 (27)
Interest Expense159 151 
Loss Before Income Taxes(167)(132)(35)
Income Tax Benefit(36)(32)(4)
Less: Preferred Dividends39 39 — 
Net Loss$(170)$(139)$(31)
Three Months Ended March 31, 2022, as compared to March 31, 2021
The higher net loss was driven by lower return on investments and higher interest expense partially offset by higher equity earnings from the NMC investment.
Other Income and Expenses, net. The variance was primarily due to lower return on investments that fund certain employee benefit obligations partially offset by higher equity earnings from the NMC investment.
Interest Expense. The variance was primarily due to higher outstanding long-term debt.
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses, partially offset by unfavorable tax impacts related to lower investment returns on certain employee benefit obligations. The ETRs for the three months ended March 31, 2022, and 2021, were 21.6% and 24.2%, respectively. The decrease in the ETR was primarily due to unfavorable tax impacts related to lower investment returns on certain employee benefit obligations.
DUKE ENERGY CAROLINAS
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$1,888 $1,716 $172 
Operating Expenses
Fuel used in electric generation and purchased power448 422 26 
Operation, maintenance and other512 441 71 
Depreciation and amortization379 359 20 
Property and other taxes93 83 10 
Impairment of assets and other charges3 — 
Total operating expenses1,435 1,305 130 
Operating Income453 411 42 
Other Income and Expenses, net55 48 
Interest Expense141 124 17 
Income Before Income Taxes367 335 32 
Income Tax Expense27 23 
Net Income$340 $312 $28 
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MD&ADUKE ENERGY CAROLINAS

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year2022
Residential sales(3.6)%
General service sales4.2 %
Industrial sales4.7 %
Wholesale power sales(4.6)%
Joint dispatch sales(30.0)%
Total sales2.7 %
Average number of customers2.0 %
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $99 million increase in weather-normal retail sales volumes;
a $31 million increase in fuel revenues due to higher prices and volumes in the current year; and
a $20 million increase due to higher pricing from the North Carolina retail rate case, net of a return of EDIT to customers.
Operating Expenses. The variance was driven primarily by:
a $71 million increase in operation, maintenance and other expense primarily due to higher storm restoration costs and higher outage and maintenance costs;
a $26 million increase in fuel used in electric generation and purchased power primarily due to higher natural gas prices and changes in the generation mix, partially offset by the recovery of fuel expenses and lower coal prices; and
a $20 million increase in depreciation and amortization primarily due to an increase in assets placed into service, and new depreciation rates associated with the North Carolina rate case, partially offset by the extension of the lives of nuclear facilities.
Interest Expense. The variance was driven by interest expense on excess deferred tax liabilities.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by amortization of excess deferred taxes.
PROGRESS ENERGY
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$2,992 $2,505 $487 
Operating Expenses
Fuel used in electric generation and purchased power1,064 795 269 
Operation, maintenance and other645 601 44 
Depreciation and amortization536 485 51 
Property and other taxes152 142 10 
Total operating expenses2,397 2,023 374 
Gains on Sales of Other Assets and Other, net2 — 
Operating Income597 482 115 
Other Income and Expenses, net35 43 (8)
Interest Expense211 192 19 
Income Before Income Taxes421 333 88 
Income Tax Expense67 43 24 
Net Income354 290 64 
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $237 million increase in fuel cost recovery driven by higher fuel prices and volumes in the current year;
a $124 million increase in weather-normal retail sales volumes;
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MD&APROGRESS ENERGY

a $106 million increase in retail pricing due to the North Carolina rate case and base rate adjustments at Duke Energy Florida related to annual increases from the 2021 Settlement Agreement and the solar base rate adjustment; and
a $32 million increase in wholesale revenues, net of fuel, due to higher capacity volumes.
Partially offset by:
a $22 million decrease in capacity revenue primarily due to accelerated recovery of retired Crystal River coal units in 2021.
Operating Expenses. The variance was driven primarily by:
a $269 million increase in fuel used in electric generation and purchased power primarily due to higher demand and higher natural gas prices;
a $51 million increase in depreciation and amortization primarily due to increased rates at Duke Energy Florida and higher amortization of deferred coal ash and storm costs at Duke Energy Progress, partially offset by the extension of the lives at nuclear facilities at Duke Energy Progress; and
a $44 million increase in operation, maintenance and other expense primarily due to higher storm costs at Duke Energy Progress.
Interest Expense. The variance was driven primarily by interest expense on excess deferred tax liabilities and higher outstanding debt at Duke Energy Progress.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes.
DUKE ENERGY PROGRESS
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$1,632 $1,401 $231 
Operating Expenses
Fuel used in electric generation and purchased power574 436 138 
Operation, maintenance and other391 357 34 
Depreciation and amortization306 285 21 
Property and other taxes49 49 — 
Total operating expenses1,320 1,127 193 
Gains on Sales of Other Assets and Other, net1 — 
Operating Income313 274 39 
Other Income and Expenses, net22 24 (2)
Interest Expense85 69 16 
Income Before Income Taxes250 229 21 
Income Tax Expense35 19 16 
Net Income
$215 $210 $
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior period2022
Residential sales(4.5)%
General service sales10.3 %
Industrial sales27.8 %
Wholesale power sales1.0 %
Joint dispatch sales51.4 %
Total sales8.7 %
Average number of customers2.0 %
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $120 million increase in fuel cost recovery driven by higher fuel prices and volumes in the current year;
a $56 million increase due to higher pricing from the North Carolina retail rate case, net of a return of EDIT to customers;
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MD&ADUKE ENERGY PROGRESS

a $33 million increase in weather-normal retail sales volumes in the current year; and
a $16 million increase in wholesale revenues, net of fuel, due to higher capacity volumes.
Operating Expenses. The variance was driven primarily by:
a $138 million increase in fuel used in electric generation and purchased power primarily due to higher natural gas prices and changes in the generation mix, partially offset by the recovery of fuel expenses and lower coal prices;
a $34 million increase in operation, maintenance and other expense primarily due to higher storm costs; and
a $21 million increase in depreciation and amortization due to higher amortization of deferred coal ash costs and amortization related to deferred storm costs, partially offset by lower depreciation related to the extension of the lives of nuclear facilities.
Interest Expense. The variance was driven primarily by interest expense on excess deferred tax liabilities and higher outstanding debt.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and the amortization of excess deferred taxes.
DUKE ENERGY FLORIDA
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$1,355 $1,101 $254 
Operating Expenses
Fuel used in electric generation and purchased power490 359 131 
Operation, maintenance and other249 242 
Depreciation and amortization231 200 31 
Property and other taxes103 93 10 
Total operating expenses1,073 894 179 
Gains on Sales of Other Assets and Other, net1 — 
Operating Income283 207 76 
Other Income and Expenses, net15 18 (3)
Interest Expense84 80 
Income Before Income Taxes214 145 69 
Income Tax Expense43 28 15 
Net Income$171 $117 $54 
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior period2022
Residential sales0.9 %
General service sales4.0 %
Industrial sales(0.9)%
Wholesale and other77.4 %
Total sales15.8 %
Average number of customers1.9 %
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $117 million increase in fuel revenue primarily due to higher retail sales volumes and higher fuel rate in current year in response to an increase in natural gas prices;
a $91 million increase in weather-normal retail sales volumes;
a $50 million increase in retail pricing due to base rate adjustments related to annual increases from the 2021 Settlement Agreement and the solar base rate adjustment; and
a $16 million increase in wholesale power revenues, net of fuel, primarily due to higher capacity revenues and bulk power sales.
Partially offset by:
a $22 million decrease in capacity revenue primarily due to accelerated recovery of the retired coal units Crystal River 1 and 2 in 2021.
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MD&ADUKE ENERGY FLORIDA

Operating Expenses. The variance was driven primarily by:
a $131 million increase in fuel used in electric generation and purchased power primarily due to higher natural gas prices;
a $31 million increase in depreciation and amortization primarily due to an increase in depreciation rates starting in January 2022; and
a $10 million increase in property and other taxes primarily due to an increase in gross receipts taxes.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income.
DUKE ENERGY OHIO
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues
Regulated electric$412 $363 $49 
Regulated natural gas226 169 57 
Total operating revenues638 532 106 
Operating Expenses
Fuel used in electric generation and purchased power127 82 45 
Cost of natural gas107 51 56 
Operation, maintenance and other178 108 70 
Depreciation and amortization80 74 
Property and other taxes101 92 
Total operating expenses 593 407 186 
Operating Income45 125 (80)
Other Income and Expenses, net6 
Interest Expense30 25 
Income Before Income Taxes21 105 (84)
Income Tax (Benefit) Expense(56)14 (70)
Net Income$77 $91 $(14)
The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
ElectricNatural Gas
Increase (Decrease) over prior year20222022
Residential sales(4.9)%1.5 %
General service sales(1.0)%1.0 %
Industrial sales(2.9)%(2.3)%
Wholesale electric power sales(19.0)%n/a
Other natural gas salesn/a(2.8)%
Total sales(0.1)%0.4 %
Average number of customers1.0 %0.8 %
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $93 million increase in fuel related revenues primarily due to higher natural gas prices and increased volumes;
a $10 million increase in retail revenue riders, primarily due to the Ohio Capital Expenditure Program (CEP), Distribution Capital Investment Rider (DCI), excise tax riders as a result of increased revenue and Kentucky Gas Weather Normalization rider, partially offset by decreases in Kentucky Environmental Surcharge Mechanism and the Ohio Tax Cuts and Jobs Act rider;
a $9 million increase in weather-normal retail sales volumes;
a $6 million increase in revenues related to OVEC collections and OVEC sales into PJM; and
a $5 million increase in PJM transmission revenues as a result of increased capital spend.
Partially offset by:
a $15 million decrease due to the MGP settlement.
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MD&ADUKE ENERGY OHIO

Operating Expenses. The variance was driven primarily by:
a $101 million increase in fuel expense primarily driven by higher retail prices and increased volumes for natural gas and purchased power;
a $70 million increase in operation, maintenance and other expense primarily due to the MGP settlement and higher storm costs;
a $9 million increase in property and other taxes primarily due to increased plant in service, higher kilowatt and natural gas distribution taxes due to increased usage and a lower Network Integration Transmission Service tax deferral; and
a $6 million increase in depreciation and amortization primarily driven by lower CEP deferrals and an increase in distribution plant in service.
Income Tax Benefit. The decrease in tax expense was primarily due to an increase in the amortization of excess deferred taxes related to the MGP Settlement and a decrease in pretax income.
DUKE ENERGY INDIANA
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$822 $745 $77 
Operating Expenses
Fuel used in electric generation and purchased power319 217 102 
Operation, maintenance and other192 178 14 
Depreciation and amortization156 152 
Property and other taxes25 21 
Impairment of assets and other charges211 — 211 
Total operating expenses903 568 335 
Operating (Loss) Income(81)177 (258)
Other Income and Expenses, net10 
Interest Expense45 50 (5)
(Loss) Income Before Income Taxes(116)136 (252)
Income Tax (Benefit) Expense(37)24 (61)
Net (Loss) Income$(79)$112 $(191)
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year2022
Residential sales(3.8)%
General service sales0.3 %
Industrial sales(5.3)%
Wholesale power sales11.9 %
Total sales2.9 %
Average number of customers1.3 %
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $77 million increase in fuel revenues primarily due to higher fuel cost recovery driven by customer demand and fuel prices;
a $16 million increase in weather-normal retail sales volumes driven by higher nonresidential customer demand;
a $14 million increase in wholesale revenues primarily due to an increase in BPM sharing provision; and
a $9 million increase in retail sales due to favorable weather in the current year.
Partially offset by:
a $46 million decrease due to the Indiana Supreme Court ruling on recovery of certain coal ash costs.
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MD&ADUKE ENERGY INDIANA

Operating Expenses. The variance was driven primarily by:
a $211 million increase in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs;
a $102 million increase in fuel used in electric generation and purchased power expense primarily due to higher purchased power expense and higher natural gas costs; and
a $14 million increase in operation, maintenance and other primarily due to higher storm costs and employee benefits.
Income Tax Benefit. The decrease in tax expense was primarily due to the change in pretax income from the coal ash impairment based on the Indiana Supreme Court Opinion.
PIEDMONT
Results of Operations
Three Months Ended March 31,
(in millions)20222021Variance
Operating Revenues$805 $606 $199 
Operating Expenses
Cost of natural gas374 225 149 
Operation, maintenance and other95 78 17 
Depreciation and amortization54 48 
Property and other taxes16 14 
Total operating expenses539 365 174 
Operating Income266 241 25 
Other Income and Expenses, net13 17 (4)
Interest Expense32 29 
Income Before Income Taxes247 229 18 
Income Tax Expense33 26 
Net Income$214 $203 $11 
The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.
Increase (Decrease) over prior year2022
Residential deliveries(4.7)%
Commercial deliveries2.9 %
Industrial deliveries1.1 %
Power generation deliveries45.8 %
For resale(3.9)%
Total throughput deliveries20.4 %
Secondary market volumes18.8 %
Average number of customers1.6 %
The margin decoupling mechanism adjusts for variations in residential and commercial use per customer, including those due to weather and conservation. The weather normalization adjustment mechanisms mostly offset the impact of weather on bills rendered, but do not ensure full recovery of approved margin during periods when winter weather is significantly warmer or colder than normal.
Three Months Ended March 31, 2022, as compared to March 31, 2021
Operating Revenues. The variance was driven primarily by:
a $149 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs, partially offset by lower residential volumes;
a $35 million increase due to base rate increases; and
a $6 million increase due to customer growth.
Operating Expenses. The variance was driven primarily by:
a $149 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs, partially offset by lower residential volumes.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes.
91

MD&ALIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Duke Energy relies primarily upon cash flows from operations, debt and equity issuances and its existing cash and cash equivalents to fund its liquidity and capital requirements. Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2021, included a summary and detailed discussion of projected primary sources and uses of cash for 2022 to 2024.
As of March 31, 2022, Duke Energy had approximately $853 million of cash on hand and $6.1 billion available under its $9 billion Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs. Refer to Note 5 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding Duke Energy's debt issuances and maturities, and available credit facilities including the Master Credit Facility.
Cash Flow Information
The following table summarizes Duke Energy’s cash flows.
Three Months Ended
March 31,
(in millions)20222021
Cash flows provided by (used in):
Operating activities$1,795 $2,088 
Investing activities(2,699)(3,137)
Financing activities1,404 1,185 
Net increase in cash, cash equivalents and restricted cash500 136 
Cash, cash equivalents and restricted cash at beginning of period520 556 
Cash, cash equivalents and restricted cash at end of period$1,020 $692 
OPERATING CASH FLOWS
The following table summarizes key components of Duke Energy’s operating cash flows.
Three Months Ended
March 31,
(in millions)20222021Variance
Net income$820 $941 $(121)
Non-cash adjustments to net income1,582 1,446 136 
Payments for asset retirement obligations(119)(114)(5)
Working capital(488)(185)(303)
Net cash provided by operating activities$1,795 $2,088 $(293)
The variance was primarily due to timing of accruals and payments in working capital accounts.
INVESTING CASH FLOWS
The following table summarizes key components of Duke Energy’s investing cash flows.
Three Months Ended
March 31,
(in millions)20222021Variance
Capital, investment and acquisition expenditures$(2,568)$(2,215)$(353)
Other investing items(131)(922)791 
Net cash used in investing activities$(2,699)$(3,137)$438 
The variance relates primarily to payment made in 2021 to fund ACP's outstanding debt and lower overall investments in the Commercial Renewables segment, partially offset by increases in capital expenditures due to higher overall investments in the Electric Utilities and Infrastructure and Gas Utilities and Infrastructure segments.
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MD&ALIQUIDITY AND CAPITAL RESOURCES

FINANCING CASH FLOWS
The following table summarizes key components of Duke Energy’s financing cash flows.
Three Months Ended
March 31,
(in millions)20222021Variance
Issuances of long-term debt, net$2,291 $532 $1,759 
Issuances of common stock (5)
Notes payable, commercial paper and other short-term borrowings(44)1,187 (1,231)
Dividends paid(799)(783)(16)
Contributions from noncontrolling interests23 303 (280)
Other financing items(67)(59)(8)
Net cash provided by financing activities$1,404 $1,185 $219 
The variance was primarily due to:
a $1.8 billion increase in net proceeds from issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt.
Partially offset by:
a $1.2 billion decrease in net borrowings from notes payable and commercial paper; and
a $280 million decrease in contributions from noncontrolling interests.
OTHER MATTERS
Environmental Regulations
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time and result in new obligations of the Duke Energy Registrants. Refer to Note 3 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for further information regarding potential plant retirements and regulatory filings related to the Duke Energy Registrants.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For an in-depth discussion of the Duke Energy Registrants' market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7 of the Annual Report on Form 10-K for the Duke Energy Registrants. During the three months ended March 31, 2022, there were no material changes to the Duke Energy Registrants' disclosures about market risk.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified by the SEC rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated the effectiveness of their disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2022, and, based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in providing reasonable assurance of compliance.
Changes in Internal Control over Financial Reporting
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the fiscal quarter ended March 31, 2022, and have concluded no change has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
93

OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS
For information regarding material legal proceedings, including regulatory and environmental matters, see Note 3, "Regulatory Matters," and Note 4, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements. For additional information, see Item 3, "Legal Proceedings," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2021.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I, “Item 1A. Risk Factors” in the Duke Energy Registrants' Annual Report on Form 10-K for the year ended December 31, 2021, which could materially affect the Duke Energy Registrants’ financial condition or future results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
94

EXHIBITS

ITEM 6. EXHIBITS
Exhibits filed herein are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Items constituting management contracts or compensatory plans or arrangements are designated by a double asterisk (**). The company agrees to furnish upon request to the commission a copy of any omitted schedules or exhibits upon request on all items designated by a triple asterisk (***).
DukeDukeDukeDukeDuke
ExhibitDukeEnergyProgressEnergyEnergyEnergyEnergy
NumberEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
4.1X
4.2X
4.3X
10.1X
95

EXHIBITS

10.2XXXXXXX
10.3X
*10.4X
*10.5X
*31.1.1X
*31.1.2X
*31.1.3X
*31.1.4X
*31.1.5X
*31.1.6X
*31.1.7X
*31.1.8X
*31.2.1X
*31.2.2X
*31.2.3X
96

EXHIBITS

*31.2.4X
*31.2.5X
*31.2.6X
*31.2.7X
*31.2.8X
*32.1.1X
*32.1.2X
*32.1.3X
*32.1.4X
*32.1.5X
*32.1.6X
*32.1.7X
*32.1.8X
*32.2.1X
*32.2.2X
*32.2.3X
*32.2.4X
*32.2.5X
*32.2.6X
*32.2.7X
97

EXHIBITS

*32.2.8X
*101.INSXBRL Instance Document (this does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).XXXXXXXX
*101.SCHXBRL Taxonomy Extension Schema Document.XXXXXXXX
*101.CALXBRL Taxonomy Calculation Linkbase Document.XXXXXXXX
*101.LABXBRL Taxonomy Label Linkbase Document.XXXXXXXX
*101.PREXBRL Taxonomy Presentation Linkbase Document.XXXXXXXX
*101.DEFXBRL Taxonomy Definition Linkbase Document.XXXXXXXX
*104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).XXXXXXXX
The total amount of securities of the registrant or its subsidiaries authorized under any instrument with respect to long-term debt not filed as an exhibit does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The registrant agrees, upon request of the SEC, to furnish copies of any or all of such instruments to it.
98

SIGNATURES

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

DUKE ENERGY CORPORATION
DUKE ENERGY CAROLINAS, LLC
PROGRESS ENERGY, INC.
DUKE ENERGY PROGRESS, LLC
DUKE ENERGY FLORIDA, LLC
DUKE ENERGY OHIO, INC.
DUKE ENERGY INDIANA, LLC
PIEDMONT NATURAL GAS COMPANY, INC.

Date:May 9, 2022/s/ STEVEN K. YOUNG
Steven K. Young
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date:May 9, 2022/s/ CYNTHIA S. LEE
Cynthia S. Lee
Vice President, Chief Accounting Officer
and Controller
(Principal Accounting Officer)
99