0001326160duk:DukeEnergyProgressMemberus-gaap:OtherNoncurrentAssetsMember2022-12-31DukeEnergyOhioMemberus-gaap:OtherCurrentLiabilitiesMember2023-12-31

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 June 30, 2023March 31, 2024
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, Zip Code and Telephone Number
IRS Employer Identification No.
dukeenergylogo4ca65.jpg
1-32853DUKE ENERGY CORPORATION20-2777218
(a Delaware corporation)
526525 South ChurchTryon Street
Charlotte, North Carolina 28202-180328202
704-382-3853800-488-3853
1-4928DUKE ENERGY CAROLINAS, LLC56-0205520
(a North Carolina limited liability company)
526525 South ChurchTryon Street
Charlotte, North Carolina 28202-180328202
704-382-3853800-488-3853
1-15929PROGRESS ENERGY, INC.56-2155481
(a North Carolina corporation)
410 South Wilmington411 Fayetteville Street
Raleigh, North Carolina 27601-174827601
704-382-3853800-488-3853
1-3382DUKE ENERGY PROGRESS, LLC56-0165465
(a North Carolina limited liability company)
410 South Wilmington411 Fayetteville Street
Raleigh, North Carolina 27601-174827601
704-382-3853800-488-3853
1-3274DUKE ENERGY FLORIDA, LLC59-0247770
(a Florida limited liability company)
299 First Avenue North
St. Petersburg, Florida 33701
704-382-3853800-488-3853
1-1232DUKE ENERGY OHIO, INC.31-0240030
(an Ohio corporation)
139 East Fourth Street
Cincinnati, Ohio 45202
704-382-3853800-488-3853
1-3543DUKE ENERGY INDIANA, LLC35-0594457
(an Indiana limited liability company)
1000 East Main Street
Plainfield, Indiana 46168
704-382-3853800-488-3853
1-6196PIEDMONT NATURAL GAS COMPANY, INC.56-0556998
(a North Carolina corporation)
4720 Piedmont Row Drive525 South Tryon Street
Charlotte, North Carolina 2821028202
704-364-3120800-488-3853





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
Duke Energy    3.10% Senior Notes due 2028    DUK 28A    New York Stock Exchange LLC        
Duke Energy    3.85% Senior Notes due 2034    DUK 34    New York Stock Exchange LLC
Duke Energy    3.75% Senior Notes due 2031    DUK 31A    New York Stock Exchange LLC
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 EnergyYesNoDuke Energy FloridaYesNo
Duke Energy CarolinasYesNoDuke Energy OhioYesNo
Progress EnergyYesNoDuke Energy IndianaYesNo
Duke Energy ProgressYesNoPiedmontYesNo



Number of shares of common stock outstanding at July 31, 2023:April 30, 2024:
RegistrantDescriptionShares
Duke EnergyCommon stock, $0.001 par value770,707,545771,768,612
Duke Energy CarolinasAll of the registrant's limited liability company member interests are directly owned by Duke Energy.N/A
Progress EnergyAll of the registrant's common stock is directly owned by Duke Energy.100
Duke Energy ProgressAll of the registrant's limited liability company member interests are indirectly owned by Duke Energy.N/A
Duke Energy FloridaAll of the registrant's limited liability company member interests are indirectly owned by Duke Energy.N/A
Duke Energy OhioAll of the registrant's common stock is indirectly owned by Duke Energy.89,663,086
Duke Energy IndianaAll of the registrant's limited liability company member interests are owned by a Duke Energy subsidiary that is 80.1% indirectly owned by Duke Energy.N/A
PiedmontAll of the registrant's common stock is directly owned by Duke Energy.100
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 – Dispositions
Note 3 – Business Segments
Note 4 – Regulatory Matters
Note 5 – Commitments and Contingencies
Note 6 – Debt and Credit Facilities
Note 7 – Goodwill
Note 8 – Related Party Transactions
Note 9 – Derivatives and Hedging
Note 10 – Investments in Debt and Equity Securities
Note 11 – Fair Value Measurements
Note 12 – Variable Interest Entities
Note 13 – Revenue
Note 14 – Stockholders' Equity
Note 15 – Employee Benefit Plans
Note 16 – Income Taxes
Note 17 – Subsequent Events
PART II. OTHER INFORMATION
Item 5.Other Information



GLOSSARY OF TERMS
Glossary of Terms 
The following terms or acronyms used in this Form 10-Q are defined below:
Term or AcronymDefinition
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.
AFUDCAllowance for funds used during construction
ArcLightARMArcLight Capital Partners, LLCAnnual Review Mechanism
AROAsset retirement obligations
BisonBison Insurance Company Limited
BrookfieldBrookfield Renewable Partners L.P.
CCRCoal Combustion Residuals
CCR Rule
A 2015 EPA rule establishing national regulations to provide a comprehensive set of requirements for the
management and disposal of CCR from coal-fired power plants
CEPCapital Expenditure Program
CPCNCertificate of Public Convenience and Necessity
the CompanyDuke Energy Corporation and its subsidiaries
Commercial Renewables Disposal GroupsCommercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, separated into the utility-scale solar and wind group, the distributed generation group and the remaining assets
COVID-19Coronavirus Disease 2019
CRCCinergy Receivables Company, LLC
Crystal River Unit 3Crystal River Unit 3 Nuclear Plant
DEFRDuke Energy Florida Receivables, LLC
DEPRDuke Energy Progress Receivables, LLC
DERFDuke Energy Receivables Finance Company, LLC
DOEU.S. Department 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
EPAUnited States Environmental Protection Agency
EPSEarnings (Loss) Per Share
ERCOTElectric Reliability Council of Texas
ETREffective tax rate
EU&IElectric Utilities and Infrastructure
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


GLOSSARY OF TERMS
GAAP Reported EPSBasic Earnings Per Share Available to Duke Energy Corporation common stockholders
GHGGreenhouse Gas
GICGIC Private Limited, Singapore's sovereign wealth fund and an experienced investor in U.S. infrastructure
GU&IGas Utilities and Infrastructure
GWhGigawatt-hours


GLOSSARY OF TERMS
HB 951The Energy Solutions for North Carolina, or House Bill 951, passed in October 2021
IMRIntegrity Management Rider
IRAInflation Reduction Act
IRSInternal Revenue Service
IURCIndiana Utility Regulatory Commission
JDAJoint Dispatch Agreement
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
MYRPMultiyear rate plan
NCUCNorth Carolina Utilities Commission
NDTFNuclear decommissioning trust funds
NPNSNormal purchase/normal sale
NYSEThe New York Stock Exchange
OCCOhio Consumers' Counsel
OPEBOther Post-Retirement Benefit Obligations
the ParentDuke Energy Corporation holding company
PBRPerformance-based regulation
PiedmontPiedmont Natural Gas Company, Inc.
Progress EnergyProgress Energy, Inc.
PSCSCPublic Service Commission of South Carolina
PTCProduction Tax Credit
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
TPUCTennessee Public Utility Commission
U.S.United States
VIEVariable Interest Entity



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 ability to implement our business strategy, including our carbon emission reduction goals;
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;
The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including the disruption of global supply chains or the economic activity in our service territories;
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, reduced customer usage due to cost pressures from inflation or fuel costs, 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 and costs related thereto;
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 United States 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 or other attack, war, vandalism, cybersecurity threats, data security breaches, operational events, 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;


FORWARD-LOOKING STATEMENTS
Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, timing and receipt of necessary regulatory approvals, 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;
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, as well as the successful sale of the Commercial Renewables Disposal Groups;opportunities;
The effect of accounting and reporting pronouncements issued periodically by accounting standard-setting bodies and the SEC;
The impact of United States 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 may not yield the anticipated benefits; and
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.
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 anyan obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
(in millions, except per share amounts)2023202220232022
Operating Revenues
Regulated electric$6,176 $6,075 $12,500 $12,008 
Regulated natural gas331 425 1,213 1,427 
Nonregulated electric and other71 64 141 140 
Total operating revenues6,578 6,564 13,854 13,575 
Operating Expenses
Fuel used in electric generation and purchased power2,039 1,972 4,416 3,789 
Cost of natural gas79 189 377 670 
Operation, maintenance and other1,375 1,367 2,685 2,915 
Depreciation and amortization1,333 1,237 2,560 2,494 
Property and other taxes353 368 742 750 
Impairment of assets and other charges (9)8 206 
Total operating expenses5,179 5,124 10,788 10,824 
Gains on Sales of Other Assets and Other, net31 38 11 
Operating Income1,430 1,448 3,104 2,762 
Other Income and Expenses
Equity in earnings of unconsolidated affiliates20 38 40 64 
Other income and expenses, net147 114 298 203 
Total other income and expenses167 152 338 267 
Interest Expense727 588 1,447 1,157 
Income From Continuing Operations Before Income Taxes870 1,012 1,995 1,872 
Income Tax Expense From Continuing Operations119 114 274 139 
Income From Continuing Operations751 898 1,721 1,733 
Loss From Discontinued Operations, net of tax(955)(18)(1,164)(33)
Net (Loss) Income(204)880 557 1,700 
Add: Net (Income) Loss Attributable to Noncontrolling Interests(16)27 27 64 
Net (Loss) Income Attributable to Duke Energy Corporation(220)907 584 1,764 
Less: Preferred Dividends14 14 53 53 
Net (Loss) Income Available to Duke Energy Corporation Common Stockholders$(234)$893 $531 $1,711 
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted$0.91 $1.11 $2.10 $2.17 
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted$(1.23)$0.03 $(1.41)$0.05 
Net (loss) income available to Duke Energy Corporation common stockholders
Basic and Diluted$(0.32)$1.14 $0.69 $2.22 
Weighted Average Shares Outstanding
Basic and Diluted771 770 770 770 

Three Months Ended
March 31,
(in millions, except per share amounts)20242023
Operating Revenues
Regulated electric$6,732 $6,324 
Regulated natural gas866 882 
Nonregulated electric and other73 70 
Total operating revenues7,671 7,276 
Operating Expenses
Fuel used in electric generation and purchased power2,335 2,377 
Cost of natural gas232 298 
Operation, maintenance and other1,379 1,310 
Depreciation and amortization1,387 1,227 
Property and other taxes386 389 
Impairment of assets and other charges1 
Total operating expenses5,720 5,609 
Gains on Sales of Other Assets and Other, net12 
Operating Income1,963 1,674 
Other Income and Expenses
Equity in earnings of unconsolidated affiliates17 20 
Other income and expenses, net169 151 
Total other income and expenses186 171 
Interest Expense817 720 
Income From Continuing Operations Before Income Taxes1,332 1,125 
Income Tax Expense From Continuing Operations178 155 
Income From Continuing Operations1,154 970 
Loss From Discontinued Operations, net of tax(3)(209)
Net Income1,151 761 
Add: Net (Income) Loss Attributable to Noncontrolling Interests(13)43 
Net Income Attributable to Duke Energy Corporation1,138 804 
Less: Preferred Dividends39 39 
Net Income Available to Duke Energy Corporation Common Stockholders$1,099 $765 
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted$1.44 $1.20 
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted$ $(0.19)
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted$1.44 $1.01 
Weighted Average Shares Outstanding
Basic and Diluted771 770 
See Notes to Condensed Consolidated Financial Statements
9

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Net (Loss) Income$(204)$880 $557 $1,700 
Other Comprehensive Income (Loss), net of tax(a)
Net Income
Other Comprehensive Income, net of tax(a)
Pension and OPEB adjustmentsPension and OPEB adjustments1  
Net unrealized gains on cash flow hedges26 149 6 262 
Pension and OPEB adjustments
Pension and OPEB adjustments
Net unrealized gains (losses) on cash flow hedges
Reclassification into earnings from cash flow hedgesReclassification into earnings from cash flow hedges4 4 
Net unrealized gains (losses) on fair value hedgesNet unrealized gains (losses) on fair value hedges26 (12)15 (12)
Net unrealized gains (losses) on fair value hedges
Net unrealized gains (losses) on fair value hedges
Unrealized (losses) gains on available-for-sale securitiesUnrealized (losses) gains on available-for-sale securities(2)(8)4 (21)
Other Comprehensive Income, net of tax55 135 29 242 
Comprehensive (Loss) Income(149)1,015 586 1,942 
Other Comprehensive Income (Loss), net of tax
Other Comprehensive Income (Loss), net of tax
Other Comprehensive Income (Loss), net of tax
Comprehensive Income
Add: Comprehensive (Income) Loss Attributable to Noncontrolling InterestsAdd: Comprehensive (Income) Loss Attributable to Noncontrolling Interests(16)23 27 52 
Comprehensive (Loss) Income Attributable to Duke Energy(165)1,038 613 1,994 
Comprehensive Income Attributable to Duke Energy
Less: Preferred DividendsLess: Preferred Dividends14 14 53 53 
Comprehensive (Loss) Income Available to Duke Energy Corporation Common Stockholders$(179)$1,024 $560 $1,941 
Comprehensive Income Available to Duke Energy Corporation Common Stockholders
(a)Net of income tax expense of approximately $16$34 million and $40tax benefit of $8 million for the three months ended June 30,March 31, 2024, and 2023, and 2022, respectively and approximately $9 million and $72 million for the six months ended June 30, 2023, and 2022, respectively.
See Notes to Condensed Consolidated Financial Statements
10

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)(in millions)June 30, 2023December 31, 2022(in millions)March 31, 2024December 31, 2023
ASSETSASSETS
Current AssetsCurrent Assets
Current Assets
Current Assets
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$377 $409 
Receivables (net of allowance for doubtful accounts of $47 at 2023 and $40 at 2022)1,016 1,309 
Receivables of VIEs (net of allowance for doubtful accounts of $152 at 2023 and $176 at 2022)2,812 3,106 
Inventory4,100 3,584 
Regulatory assets (includes $107 at 2023 and $106 at 2022 related to VIEs)3,760 3,485 
Receivables (net of allowance for doubtful accounts of $102 at 2024 and $55 at 2023)
Receivables (net of allowance for doubtful accounts of $102 at 2024 and $55 at 2023)
Receivables (net of allowance for doubtful accounts of $102 at 2024 and $55 at 2023)
Receivables of VIEs (net of allowance for doubtful accounts of $102 at 2024 and $150 at 2023)
Inventory (includes $470 at 2024 and $462 at 2023 related to VIEs)
Regulatory assets (includes $110 at 2024 and 2023 related to VIEs)
Assets held for saleAssets held for sale390 356 
Other (includes $73 at 2023 and $116 at 2022 related to VIEs)633 973 
Other (includes $44 at 2024 and $90 at 2023 related to VIEs)
Total current assetsTotal current assets13,088 13,222 
Property, Plant and EquipmentProperty, Plant and Equipment
CostCost168,506 163,839 
Cost
Cost
Accumulated depreciation and amortizationAccumulated depreciation and amortization(54,030)(52,100)
Facilities to be retired, net4 
Net property, plant and equipment
Net property, plant and equipment
Net property, plant and equipmentNet property, plant and equipment114,480 111,748 
Other Noncurrent AssetsOther Noncurrent Assets
GoodwillGoodwill19,303 19,303 
Regulatory assets (includes $1,667 at 2023 and $1,715 at 2022 related to VIEs)14,147 14,645 
Goodwill
Goodwill
Regulatory assets (includes $1,616 at 2024 and $1,642 at 2023 related to VIEs)
Nuclear decommissioning trust fundsNuclear decommissioning trust funds9,565 8,637 
Operating lease right-of-use assets, netOperating lease right-of-use assets, net1,009 1,042 
Investments in equity method unconsolidated affiliatesInvestments in equity method unconsolidated affiliates479 455 
Assets held for saleAssets held for sale4,561 5,634 
Other (includes $45 at 2023 and $52 at 2022 related to VIEs)3,444 3,400 
Other
Total other noncurrent assetsTotal other noncurrent assets52,508 53,116 
Total AssetsTotal Assets$180,076 $178,086 
LIABILITIES AND EQUITYLIABILITIES AND EQUITY
Current LiabilitiesCurrent Liabilities
Accounts payable$3,225 $4,754 
Current Liabilities
Current Liabilities
Accounts payable (includes $188 at 2024 and 2023 related to VIEs)
Accounts payable (includes $188 at 2024 and 2023 related to VIEs)
Accounts payable (includes $188 at 2024 and 2023 related to VIEs)
Notes payable and commercial paperNotes payable and commercial paper3,455 3,952 
Taxes accruedTaxes accrued708 722 
Interest accruedInterest accrued714 626 
Current maturities of long-term debt (includes $426 at 2023 and $350 at 2022 related to VIEs)4,609 3,878 
Current maturities of long-term debt (includes $929 at 2024 and $428 at 2023 related to VIEs)
Asset retirement obligationsAsset retirement obligations692 773 
Regulatory liabilitiesRegulatory liabilities1,303 1,466 
Liabilities associated with assets held for saleLiabilities associated with assets held for sale575 535 
OtherOther2,094 2,167 
Total current liabilitiesTotal current liabilities17,375 18,873 
Long-Term Debt (includes $3,051 at 2023 and $3,108 at 2022 related to VIEs)69,914 65,873 
Long-Term Debt (includes $2,134 at 2024 and $3,000 at 2023 related to VIEs)
Other Noncurrent LiabilitiesOther Noncurrent Liabilities
Deferred income taxes
Deferred income taxes
Deferred income taxesDeferred income taxes10,210 9,964 
Asset retirement obligationsAsset retirement obligations11,991 11,955 
Regulatory liabilitiesRegulatory liabilities13,944 13,582 
Operating lease liabilitiesOperating lease liabilities841 876 
Accrued pension and other post-retirement benefit costsAccrued pension and other post-retirement benefit costs808 832 
Investment tax creditsInvestment tax credits849 849 
Liabilities associated with assets held for saleLiabilities associated with assets held for sale1,720 1,927 
Other1,353 1,502 
Other (includes $42 at 2024 and $35 at 2023 related to VIEs)
Total other noncurrent liabilitiesTotal other noncurrent liabilities41,716 41,487 
Commitments and ContingenciesCommitments and ContingenciesCommitments and Contingencies
EquityEquity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2023 and 2022973 973 
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2023 and 2022989 989 
Common stock, $0.001 par value, 2 billion shares authorized; 771 million and 770 million shares outstanding at 2023 and 20221 
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2024 and 2023
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2024 and 2023
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2024 and 2023
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2024 and 2023
Common stock, $0.001 par value, 2 billion shares authorized; 772 million and 771 million shares outstanding at 2024 and 2023
Additional paid-in capitalAdditional paid-in capital44,866 44,862 
Retained earningsRetained earnings1,615 2,637 
Accumulated other comprehensive loss(111)(140)
Accumulated other comprehensive income (loss)
Total Duke Energy Corporation stockholders' equityTotal Duke Energy Corporation stockholders' equity48,333 49,322 
Noncontrolling interestsNoncontrolling interests2,738 2,531 
Total equityTotal equity51,071 51,853 
Total Liabilities and EquityTotal Liabilities and Equity$180,076 $178,086 
See Notes to Condensed Consolidated Financial Statements
11

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30,
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)(in millions)20232022(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIESCASH FLOWS FROM OPERATING ACTIVITIES
Net incomeNet income$557 $1,700 
Net income
Net income
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)Depreciation, amortization and accretion (including amortization of nuclear fuel)2,916 2,923 
Depreciation, amortization and accretion (including amortization of nuclear fuel)
Depreciation, amortization and accretion (including amortization of nuclear fuel)
Equity component of AFUDCEquity component of AFUDC(97)(99)
(Gains) Losses on sales of Commercial Renewables Disposal Groups
Gains on sales of other assetsGains on sales of other assets(38)(10)
Impairment of assets and other chargesImpairment of assets and other charges1,442 206 
Deferred income taxesDeferred income taxes(52)67 
Equity in earnings of unconsolidated affiliatesEquity in earnings of unconsolidated affiliates(29)(61)
Payments for asset retirement obligationsPayments for asset retirement obligations(261)(255)
Payments for asset retirement obligations
Payments for asset retirement obligations
Provision for rate refundsProvision for rate refunds(57)(65)
(Increase) decrease in(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions
Net realized and unrealized mark-to-market and hedging transactions
Net realized and unrealized mark-to-market and hedging transactionsNet realized and unrealized mark-to-market and hedging transactions93 351 
ReceivablesReceivables586 (180)
InventoryInventory(517)(12)
Inventory
Inventory
Other current assetsOther current assets(41)(1,144)
Increase (decrease) inIncrease (decrease) in
Accounts payableAccounts payable(1,245)408 
Accounts payable
Accounts payable
Taxes accrued
Taxes accrued
Taxes accruedTaxes accrued(8)(49)
Other current liabilitiesOther current liabilities(154)99 
Other assetsOther assets608 65 
Other liabilitiesOther liabilities82 91 
Net cash provided by operating activitiesNet cash provided by operating activities3,785 4,035 
CASH FLOWS FROM INVESTING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIES
Capital expendituresCapital expenditures(6,265)(5,117)
Capital expenditures
Capital expenditures
Contributions to equity method investmentsContributions to equity method investments(22)(32)
Purchases of debt and equity securities
Purchases of debt and equity securities
Purchases of debt and equity securitiesPurchases of debt and equity securities(1,594)(2,184)
Proceeds from sales and maturities of debt and equity securitiesProceeds from sales and maturities of debt and equity securities1,628 2,225 
Net proceeds from the sales of other assetsNet proceeds from the sales of other assets111 — 
Net proceeds from the sales of other assets
Net proceeds from the sales of other assets
Other
Other
OtherOther(366)(384)
Net cash used in investing activitiesNet cash used in investing activities(6,508)(5,492)
CASH FLOWS FROM FINANCING ACTIVITIESCASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:Proceeds from the:
Proceeds from the:
Proceeds from the:
Issuance of long-term debt
Issuance of long-term debt
Issuance of long-term debtIssuance of long-term debt7,094 5,714 
Issuance of common stock
Issuance of common stock
Issuance of common stock
Payments for the redemption of long-term debt
Payments for the redemption of long-term debt
Payments for the redemption of long-term debtPayments for the redemption of long-term debt(2,372)(3,147)
Proceeds from the issuance of short-term debt with original maturities greater than 90 daysProceeds from the issuance of short-term debt with original maturities greater than 90 days60 30 
Payments for the redemption of short-term debt with original maturities greater than 90 daysPayments for the redemption of short-term debt with original maturities greater than 90 days(52)(257)
Notes payable and commercial paperNotes payable and commercial paper(590)785 
Contributions from noncontrolling interestsContributions from noncontrolling interests248 126 
Contributions from noncontrolling interests
Contributions from noncontrolling interests
Dividends paidDividends paid(1,606)(1,574)
OtherOther(95)(101)
Other
Other
Net cash provided by financing activitiesNet cash provided by financing activities2,687 1,576 
Net (decrease) increase in cash, cash equivalents and restricted cash(36)119 
Net increase in cash, cash equivalents and restricted cash
Net increase in cash, cash equivalents and restricted cash
Net increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of periodCash, cash equivalents and restricted cash at beginning of period603 520 
Cash, cash equivalents and restricted cash at end of periodCash, cash equivalents and restricted cash at end of period$567 $639 
Supplemental Disclosures:Supplemental Disclosures:
Significant non-cash transactions:Significant non-cash transactions:
Significant non-cash transactions:
Significant non-cash transactions:
Accrued capital expenditures
Accrued capital expenditures
Accrued capital expendituresAccrued capital expenditures$1,398 $1,264 
See Notes to Condensed Consolidated Financial Statements
12

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Accumulated Other Comprehensive
 (Loss) Income
NetNet UnrealizedTotal
Gains(Losses) GainsDuke Energy
CommonAdditional(Losses)on Available-Pension andCorporationNon-
PreferredStockCommonPaid-inRetainedonfor-Sale-OPEBStockholders'controllingTotal
(in millions)StockSharesStockCapitalEarnings
Hedges(b)
SecuritiesAdjustmentsEquityInterestsEquity
Balance at March 31, 2022$1,962 770 $$44,364 $3,323 $(122)$(15)$(67)$49,446 $1,806 $51,252 
Net income (loss)— — — — 893 — — — 893 (27)866 
Other comprehensive income (loss)— — — — — 137 (8)131 135 
Common stock issuances, including dividend reinvestment and employee benefits— — — 27 — — — — 27 — 27 
Common stock dividends— — — — (761)— — — (761)— (761)
Sale of noncontrolling interest— — — (17)— — — — (17)38 21 
Contribution from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 65 65 
Distributions to noncontrolling interest in subsidiaries— — — — — — — — — (22)(22)
Other— — — (1)— — — — 
Balance at June 30, 2022$1,962 $770 $$44,373 $3,457 $15 $(23)$(65)$49,720 $1,864 $51,584 
Balance at March 31, 2023$1,962 771 $$44,837 $2,626 $(60)$(17)$(89)$49,260 $2,691 $51,951 
Net (loss) income    (234)   (234)16 (218)
Other comprehensive income (loss)     56 (2)1 55  55 
Common stock issuances, including dividend reinvestment and employee benefits   31     31  31 
Common stock dividends    (777)   (777) (777)
Contribution from noncontrolling interests, net of transaction costs(a)
         42 42 
Distributions to noncontrolling interest in subsidiaries         (12)(12)
Other   (2)    (2)1 (1)
Balance at June 30, 2023$1,962 $771 $1 $44,866 $1,615 $(4)$(19)$(88)$48,333 $2,738 $51,071 
See Notes to Condensed Consolidated Financial Statements
13

FINANCIAL STATEMENTS
DUKE ENERGY CORPORATION
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Six Months Ended June 30, 2022 and 2023
Accumulated Other Comprehensive
 (Loss) Income
NetNet UnrealizedTotal
GainsGains (Losses)Duke Energy
CommonAdditional(Losses)on Available-Pension andCorporationNon-
PreferredStockCommonPaid-inRetainedonfor-Sale-OPEBStockholders'controllingTotal
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Accumulated Other Comprehensive
(Loss) Income
(Loss) Income
(Loss) Income
Net
Net
Net
Gains
Gains
Gains
Common
Common
Common
Preferred
Preferred
PreferredStockCommonPaid-inRetainedonfor-Sale-OPEBStockholders'controllingTotal
(in millions)(in millions)StockSharesStockCapitalEarnings
Hedges(b)
SecuritiesAdjustmentsEquityInterestsEquity(in millions)StockSharesStockCapitalEarnings
Hedges(b)
SecuritiesAdjustmentsEquityInterestsEquity
Balance at December 31, 2021$1,962 769 $$44,371 $3,265 $(232)$(2)$(69)$49,296 $1,840 $51,136 
Net income (loss)— — — — 1,711 — — — 1,711 (64)1,647 
Other comprehensive income (loss)— — — — — 247 (21)230 12 242 
Common stock issuances, including dividend reinvestment and employee benefits— — 20 — — — — 20 — 20 
Common stock dividends— — — — (1,521)— — — (1,521)— (1,521)
Sale of noncontrolling interest— — — (17)— — — — (17)38 21 
Contributions from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 88 88 
Distributions to noncontrolling interest in subsidiaries— — — — — — — — — (50)(50)
Other— — — (1)— — — — 
Balance at June 30, 2022$1,962 770 $$44,373 $3,457 $15 $(23)$(65)$49,720 $1,864 $51,584 
Balance at December 31, 2022Balance at December 31, 2022$1,962 770 $$44,862 $2,637 $(29)$(23)$(88)$49,322 $2,531 $51,853 
Net income (loss)Net income (loss)    531    531 (27)504 
Other comprehensive income (loss)Other comprehensive income (loss)     25 4  29  29 
Common stock issuances, including dividend reinvestment and employee benefitsCommon stock issuances, including dividend reinvestment and employee benefits 1  21     21  21 
Common stock issuances, including dividend reinvestment and employee benefits
Common stock issuances, including dividend reinvestment and employee benefits
Common stock dividendsCommon stock dividends    (1,553)   (1,553) (1,553)
Common stock dividends
Common stock dividends
Sale of noncontrolling interest
Sale of noncontrolling interest
Sale of noncontrolling interestSale of noncontrolling interest   (13)    (13)10 (3)
Contributions from noncontrolling interests, net of transaction costs(a)
Contributions from noncontrolling interests, net of transaction costs(a)
         248 248 
Distributions to noncontrolling interest in subsidiariesDistributions to noncontrolling interest in subsidiaries         (25)(25)
OtherOther   (4)    (4)1 (3)
Balance at June 30, 2023$1,962 771 $1 $44,866 $1,615 $(4)$(19)$(88)$48,333 $2,738 $51,071 
Balance at March 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023
Net income
Other comprehensive income (loss)
Common stock issuances, including dividend reinvestment and employee benefits
Common stock issuances, including dividend reinvestment and employee benefits
Common stock issuances, including dividend reinvestment and employee benefits
Common stock dividends
Common stock dividends
Common stock dividends
Other
Other
Other
Balance at March 31, 2024
(a)Relates primarily to tax equity financing activity in the Commercial Renewables Disposal Groups.
(b)See Duke Energy Condensed Consolidated Statements of Comprehensive Income for detailed activity related to Cash Flow and Fair Value hedges.
See Notes to Condensed Consolidated Financial Statements
1413

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$1,828 $1,781 $3,762 $3,669 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power510 431 1,133 879 
Operation, maintenance and otherOperation, maintenance and other421 462 861 974 
Depreciation and amortizationDepreciation and amortization413 384 779 763 
Property and other taxesProperty and other taxes91 77 186 170 
Impairment of assets and other chargesImpairment of assets and other charges4 (12)6 (9)
Total operating expensesTotal operating expenses1,439 1,342 2,965 2,777 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net26 — 26 — 
Operating IncomeOperating Income415 439 823 892 
Other Income and Expenses, netOther Income and Expenses, net59 58 118 113 
Interest ExpenseInterest Expense172 143 332 284 
Income Before Income TaxesIncome Before Income Taxes302 354 609 721 
Income Tax ExpenseIncome Tax Expense32 26 67 53 
Net Income and Comprehensive IncomeNet Income and Comprehensive Income$270 $328 $542 $668 
See Notes to Condensed Consolidated Financial Statements
14

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$5 $
Receivables (net of allowance for doubtful accounts of $13 at 2024 and $11 at 2023)245 265 
Receivables of VIEs (net of allowance for doubtful accounts of $49 at 2024 and $45 at 2023)997 991 
Receivables from affiliated companies173 203 
Inventory1,478 1,484 
Regulatory assets (includes $12 at 2024 and 2023 related to VIEs)1,347 1,564 
Other (includes $5 at 2024 and $9 at 2023 related to VIEs)62 31 
Total current assets4,307 4,547 
Property, Plant and Equipment
Cost57,477 56,670 
Accumulated depreciation and amortization(20,210)(19,896)
Net property, plant and equipment37,267 36,774 
Other Noncurrent Assets
Regulatory assets (includes $193 at 2024 and $196 at 2023 related to VIEs)3,850 3,916 
Nuclear decommissioning trust funds6,077 5,686 
Operating lease right-of-use assets, net75 78 
Other1,116 1,109 
Total other noncurrent assets11,118 10,789 
Total Assets$52,692 $52,110 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$925 $1,183 
Accounts payable to affiliated companies230 195 
Notes payable to affiliated companies55 668 
Taxes accrued148 281 
Interest accrued161 179 
Current maturities of long-term debt (includes $511 at 2024 and $10 at 2023 related to VIEs)520 19 
Asset retirement obligations236 224 
Regulatory liabilities574 587 
Other617 702 
Total current liabilities3,466 4,038 
Long-Term Debt (includes $203 at 2024 and $708 at 2023 related to VIEs)16,199 15,693 
Long-Term Debt Payable to Affiliated Companies300 300 
Other Noncurrent Liabilities
Deferred income taxes4,329 4,379 
Asset retirement obligations3,779 3,789 
Regulatory liabilities6,302 5,990 
Operating lease liabilities72 75 
Accrued pension and other post-retirement benefit costs54 57 
Investment tax credits300 301 
Other (includes $19 at 2024 and $17 at 2023 related to VIEs)554 581 
Total other noncurrent liabilities15,390 15,172 
Commitments and Contingencies
Equity
Member's equity17,343 16,913 
Accumulated other comprehensive loss(6)(6)
Total equity17,337 16,907 
Total Liabilities and Equity$52,692 $52,110 

See Notes to Condensed Consolidated Financial Statements
15

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$20 $44 
Receivables (net of allowance for doubtful accounts of $6 at 2023 and $3 at 2022)324 338 
Receivables of VIEs (net of allowance for doubtful accounts of $51 at 2023 and $65 at 2022)855 928 
Receivables from affiliated companies156 390 
Inventory1,403 1,164 
Regulatory assets (includes $12 at 2023 and 2022 related to VIEs)1,483 1,095 
Other (includes $8 at 2023 and 2022 related to VIEs)61 216 
Total current assets4,302 4,175 
Property, Plant and Equipment
Cost56,116 54,650 
Accumulated depreciation and amortization(19,328)(18,669)
Net property, plant and equipment36,788 35,981 
Other Noncurrent Assets
Regulatory assets (includes $202 at 2023 and $208 at 2022 related to VIEs)4,056 4,293 
Nuclear decommissioning trust funds5,332 4,783 
Operating lease right-of-use assets, net71 78 
Other1,005 1,036 
Total other noncurrent assets10,464 10,190 
Total Assets$51,554 $50,346 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$821 $1,472 
Accounts payable to affiliated companies139 209 
Notes payable to affiliated companies578 1,233 
Taxes accrued276 228 
Interest accrued169 120 
Current maturities of long-term debt (includes $10 at 2023 and 2022 related to VIEs)18 1,018 
Asset retirement obligations237 261 
Regulatory liabilities464 530 
Other598 580 
Total current liabilities3,300 5,651 
Long-Term Debt (includes $701 at 2023 and $689 at 2022 related to VIEs)15,648 12,948 
Long-Term Debt Payable to Affiliated Companies300 300 
Other Noncurrent Liabilities
Deferred income taxes4,302 4,153 
Asset retirement obligations5,166 5,121 
Regulatory liabilities5,887 5,783 
Operating lease liabilities72 83 
Accrued pension and other post-retirement benefit costs36 38 
Investment tax credits298 300 
Other561 527 
Total other noncurrent liabilities16,322 16,005 
Commitments and Contingencies
Equity
Member's equity15,990 15,448 
Accumulated other comprehensive loss(6)(6)
Total equity15,984 15,442 
Total Liabilities and Equity$51,554 $50,346 

Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$430 $272 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)463 426 
Equity component of AFUDC(28)(24)
Impairment of assets and other charges1 
Deferred income taxes14 32 
Payments for asset retirement obligations(36)(39)
Provision for rate refunds(4)(19)
(Increase) decrease in
Receivables14 199 
Receivables from affiliated companies30 209 
Inventory7 (139)
Other current assets(23)(293)
Increase (decrease) in
Accounts payable(203)(594)
Accounts payable to affiliated companies35 27 
Taxes accrued(133)(119)
Other current liabilities(134)(78)
Other assets191 206 
Other liabilities(19)76 
Net cash provided by operating activities605 144 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(952)(866)
Purchases of debt and equity securities(535)(556)
Proceeds from sales and maturities of debt and equity securities535 556 
Other(51)(59)
Net cash used in investing activities(1,003)(925)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt1,011 1,845 
Payments for the redemption of long-term debt(7)(1,007)
Notes payable to affiliated companies(612)(79)
Other(1)(1)
Net cash provided by financing activities391 758 
Net decrease in cash, cash equivalents and restricted cash(7)(23)
Cash, cash equivalents and restricted cash at beginning of period19 53 
Cash, cash equivalents and restricted cash at end of period$12 $30 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$550 $449 
See Notes to Condensed Consolidated Financial Statements
16

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$542 $668 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)906 892 
Equity component of AFUDC(48)(47)
Gains on sales of other assets(26)— 
Impairment of assets and other charges6 (9)
Deferred income taxes(5)95 
Payments for asset retirement obligations(87)(87)
Provision for rate refunds(33)(36)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 55 
Receivables91 23 
Receivables from affiliated companies234 (51)
Inventory(239)(7)
Other current assets(482)(514)
Increase (decrease) in
Accounts payable(652)124 
Accounts payable to affiliated companies(70)(95)
Taxes accrued48 (97)
Other current liabilities6 151 
Other assets542 (9)
Other liabilities97 (33)
Net cash provided by operating activities830 1,023 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(1,795)(1,523)
Purchases of debt and equity securities(936)(1,073)
Proceeds from sales and maturities of debt and equity securities936 1,073 
Net proceeds from the sales of other assets30 — 
Other(129)(118)
Net cash used in investing activities(1,894)(1,641)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt2,729 1,287 
Payments for the redemption of long-term debt(1,033)(382)
Notes payable to affiliated companies(655)(197)
Distributions to parent (50)
Other(1)(1)
Net cash provided by financing activities1,040 657 
Net (decrease) increase in cash, cash equivalents and restricted cash(24)39 
Cash, cash equivalents and restricted cash at beginning of period53 
Cash, cash equivalents and restricted cash at end of period$29 $47 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$456 $413 
Three Months Ended March 31, 2023 and 2024
Accumulated Other
Comprehensive
Loss
Member'sNet Losses onTotal
(in millions)EquityCash Flow HedgesEquity
Balance at December 31, 2022$15,448 $(6)$15,442 
Net income272 — 272 
Balance at March 31, 2023$15,720 $(6)$15,714 
Balance at December 31, 2023$16,913 $(6)$16,907 
Net income430  430 
Balance at March 31, 2024$17,343 $(6)$17,337 

See Notes to Condensed Consolidated Financial Statements
17

FINANCIAL STATEMENTS
DUKE ENERGY CAROLINAS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Accumulated Other
Comprehensive
Loss
Member'sNet Losses onTotal
(in millions)EquityCash Flow HedgesEquity
Balance at March 31, 2022$14,188 $(6)$14,182 
Net income328 — 328 
Other(1)— (1)
Balance at June 30, 2022$14,515 $(6)$14,509 
Balance at March 31, 2023$15,720 $(6)$15,714 
Net income270  270 
Balance at June 30, 2023$15,990 $(6)$15,984 
Six Months Ended June 30, 2022 and 2023
Accumulated Other
Comprehensive
Loss
Member'sNet Losses onTotal
(in millions)EquityCash Flow HedgesEquity
Balance at December 31, 2021$13,897 $(6)$13,891 
Net income668 — 668 
Distributions to parent(50)— (50)
Balance at June 30, 2022$14,515 $(6)$14,509 
Balance at December 31, 2022$15,448 $(6)$15,442 
Net income542  542 
Balance at June 30, 2023$15,990 $(6)$15,984 

See Notes to Condensed Consolidated Financial Statements
18

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$3,212 $3,214 $6,260 $6,206 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power1,176 1,258 2,367 2,322 
Operation, maintenance and otherOperation, maintenance and other684 603 1,252 1,248 
Depreciation and amortizationDepreciation and amortization542 509 1,046 1,045 
Property and other taxesProperty and other taxes173 151 341 303 
Impairment of assets and other chargesImpairment of assets and other charges 5 
Total operating expensesTotal operating expenses2,575 2,525 5,011 4,922 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net6 12 
Operating IncomeOperating Income643 690 1,261 1,287 
Other Income and Expenses, netOther Income and Expenses, net38 70 97 105 
Interest ExpenseInterest Expense219 208 465 419 
Income Before Income TaxesIncome Before Income Taxes462 552 893 973 
Income Tax ExpenseIncome Tax Expense77 93 149 160 
Net IncomeNet Income$385 $459 $744 $813 
Net Income
Net Income
Other Comprehensive Income, net of taxOther Comprehensive Income, net of tax
Net unrealized gains on cash flow hedges —  
Unrealized (losses) gains on available-for-sale securities (1)2 (3)
Other Comprehensive (Loss) Income, net of tax (1)2 (2)
Unrealized gains on available-for-sale securities
Unrealized gains on available-for-sale securities
Unrealized gains on available-for-sale securities
Other Comprehensive Income, net of tax
Other Comprehensive Income, net of tax
Other Comprehensive Income, net of tax
Comprehensive IncomeComprehensive Income$385 $458 $746 $811 
See Notes to Condensed Consolidated Financial Statements
18

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$49 $59 
Receivables (net of allowance for doubtful accounts of $20 at 2024 and $18 at 2023)224 225 
Receivables of VIEs (net of allowance for doubtful accounts of $53 at 2024 and $56 at 2023)1,256 1,365 
Receivables from affiliated companies3 90 
Inventory (includes $470 at 2024 and $462 at 2023 related to VIEs)1,987 1,901 
Regulatory assets (includes $98 at 2024 and 2023 related to VIEs)1,359 1,661 
Other (includes $29 at 2024 and $68 at 2023 related to VIEs)122 134 
Total current assets5,000 5,435 
Property, Plant and Equipment
Cost68,755 67,644 
Accumulated depreciation and amortization(22,729)(22,300)
Net property, plant and equipment46,026 45,344 
Other Noncurrent Assets
Goodwill3,655 3,655 
Regulatory assets (includes $1,423 at 2024 and $1,446 at 2023 related to VIEs)6,526 6,430 
Nuclear decommissioning trust funds4,697 4,457 
Operating lease right-of-use assets, net597 617 
Other1,221 1,156 
Total other noncurrent assets16,696 16,315 
Total Assets$67,722 $67,094 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $179 at 2024 and $188 at 2023 related to VIEs)$1,174 $1,374 
Accounts payable to affiliated companies548 464 
Notes payable to affiliated companies820 1,043 
Taxes accrued201 259 
Interest accrued246 224 
Current maturities of long-term debt (includes $418 at 2024 and 2023 related to VIEs)659 661 
Asset retirement obligations229 245 
Regulatory liabilities394 418 
Other788 860 
Total current liabilities5,059 5,548 
Long-Term Debt (includes $1,862 at 2024 and $1,910 at 2023 related to VIEs)23,389 22,948 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes5,214 5,197 
Asset retirement obligations3,870 3,900 
Regulatory liabilities5,344 5,083 
Operating lease liabilities530 544 
Accrued pension and other post-retirement benefit costs263 266 
Investment tax credits370 371 
Other (includes $22 at 2024 and $19 at 2023 related to VIEs)238 227 
Total other noncurrent liabilities15,829 15,588 
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2024 and 2023 — 
Additional paid-in capital11,830 11,830 
Retained earnings11,475 11,040 
Accumulated other comprehensive loss(10)(10)
Total equity23,295 22,860 
Total Liabilities and Equity$67,722 $67,094 
See Notes to Condensed Consolidated Financial Statements
19

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$77 $108 
Receivables (net of allowance for doubtful accounts of $15 at 2023 and $13 at 2022)289 318 
Receivables of VIEs (net of allowance for doubtful accounts of $58 at 2023 and $68 at 2022)1,312 1,289 
Receivables from affiliated companies23 22 
Notes receivable from affiliated companies25 — 
Inventory1,817 1,579 
Regulatory assets (includes $95 at 2023 and 2022 related to VIEs)1,927 1,833 
Other (includes $61 at 2023 and $88 at 2022 related to VIEs)146 342 
Total current assets5,616 5,491 
Property, Plant and Equipment
Cost66,881 64,822 
Accumulated depreciation and amortization(21,399)(20,584)
Net property, plant and equipment45,482 44,238 
Other Noncurrent Assets
Goodwill3,655 3,655 
Regulatory assets (includes $1,465 at 2023 and $1,507 at 2022 related to VIEs)6,819 7,146 
Nuclear decommissioning trust funds4,233 3,855 
Operating lease right-of-use assets, net581 628 
Other1,105 1,066 
Total other noncurrent assets16,393 16,350 
Total Assets$67,491 $66,079 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$1,078 $1,481 
Accounts payable to affiliated companies438 712 
Notes payable to affiliated companies816 843 
Taxes accrued288 135 
Interest accrued235 206 
Current maturities of long-term debt (includes $416 at 2023 and $340 at 2022 related to VIEs)1,571 697 
Asset retirement obligations256 289 
Regulatory liabilities455 576 
Other813 782 
Total current liabilities5,950 5,721 
Long-Term Debt (includes $1,956 at 2023 and $2,003 at 2022 related to VIEs)21,718 21,592 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes5,250 5,147 
Asset retirement obligations5,890 5,892 
Regulatory liabilities5,023 4,753 
Operating lease liabilities503 546 
Accrued pension and other post-retirement benefit costs281 292 
Investment tax credits361 358 
Other215 222 
Total other noncurrent liabilities17,523 17,210 
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2023 and 2022 — 
Additional paid-in capital11,830 11,832 
Retained earnings10,329 9,585 
Accumulated other comprehensive loss(9)(11)
Total equity22,150 21,406 
Total Liabilities and Equity$67,491 $66,079 
Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$435 $359 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)669 554 
Equity component of AFUDC(18)(16)
Impairment of assets and other charges 
Deferred income taxes(5)51 
Payments for asset retirement obligations(68)(58)
Provision for rate refunds (14)
(Increase) decrease in
Receivables103 188 
Receivables from affiliated companies87 (2)
Inventory(86)(133)
Other current assets232 319 
Increase (decrease) in
Accounts payable(79)(214)
Accounts payable to affiliated companies84 (302)
Taxes accrued(57)36 
Other current liabilities(36)(107)
Other assets(134)(212)
Other liabilities27 
Net cash provided by operating activities1,154 458 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(1,373)(1,275)
Purchases of debt and equity securities(381)(279)
Proceeds from sales and maturities of debt and equity securities424 304 
Notes receivable from affiliated companies (118)
Other(74)(71)
Net cash used in investing activities(1,404)(1,439)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt498 996 
Payments for the redemption of long-term debt(73)(66)
Notes payable to affiliated companies(223)
Other(1)(1)
Net cash provided by financing activities201 931 
Net decrease in cash, cash equivalents and restricted cash(49)(50)
Cash, cash equivalents and restricted cash at beginning of period135 184 
Cash, cash equivalents and restricted cash at end of period$86 $134 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$680 $516 
See Notes to Condensed Consolidated Financial Statements
20

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$744 $813 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)1,265 1,209 
Equity component of AFUDC(33)(33)
Impairment of assets and other charges5 
Deferred income taxes27 95 
Payments for asset retirement obligations(131)(137)
Provision for rate refunds(24)(30)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 314 
Receivables6 (246)
Receivables from affiliated companies(1)117 
Inventory(238)(30)
Other current assets332 (417)
Increase (decrease) in
Accounts payable(293)161 
Accounts payable to affiliated companies(274)459 
Taxes accrued153 93 
Other current liabilities(62)74 
Other assets85 (76)
Other liabilities14 (2)
Net cash provided by operating activities1,575 2,368 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(2,425)(1,944)
Purchases of debt and equity securities(574)(996)
Proceeds from sales and maturities of debt and equity securities608 1,032 
Notes receivable from affiliated companies(25)(108)
Other(163)(21)
Net cash used in investing activities(2,579)(2,037)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt1,073 940 
Payments for the redemption of long-term debt(79)(1,019)
Notes payable to affiliated companies(27)80 
Dividends to parent (250)
Other(1)(3)
Net cash provided by (used in) financing activities966 (252)
Net (decrease) increase in cash, cash equivalents and restricted cash(38)79 
Cash, cash equivalents and restricted cash at beginning of period184 113 
Cash, cash equivalents and restricted cash at end of period$146 $192 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$544 $455 
Three Months Ended March 31, 2023 and 2024
Accumulated Other Comprehensive Loss
Net GainsNet UnrealizedTotal Progress
Additional(Losses) onGains (Losses) onPension andEnergy, Inc.
Paid-inRetainedCash FlowAvailable-for-OPEBStockholders'Total
CapitalEarningsHedgesSale SecuritiesAdjustmentsEquityEquity
Balance at December 31, 2022$11,832 $9,585 $(1)$(8)$(2)$21,406 $21,406 
Net income— 359 — — — 359 359 
Other comprehensive income— — — — 
Other(2)— — — — (2)(2)
Balance at March 31, 2023$11,830 $9,944 $(1)$(6)$(2)$21,765 $21,765 
Balance at December 31, 2023$11,830 $11,040 $(1)$(5)$(4)$22,860 $22,860 
Net income 435    435 435 
Balance at March 31, 2024$11,830 $11,475 $(1)$(5)$(4)$23,295 $23,295 
See Notes to Condensed Consolidated Financial Statements
21

FINANCIAL STATEMENTS
PROGRESS ENERGY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Accumulated Other Comprehensive Loss
Net GainsNet UnrealizedTotal Progress
Additional(Losses) onGains (Losses) onPension andEnergy, Inc.
Paid-inRetainedCash FlowAvailable-for-OPEBStockholders'NoncontrollingTotal
(in millions)CapitalEarningsHedgesSale SecuritiesAdjustmentsEquityInterestsEquity
Balance at March 31, 2022$9,149 $10,543 $(1)$(4)$(7)$19,680 $$19,682 
Net income— 458 — — — 458 459 
Other comprehensive loss— — — (1)— (1)— (1)
Balance at June 30, 2022$9,149 $11,001 $(1)$(5)$(7)$20,137 $$20,140 
Balance at March 31, 2023$11,830 $9,944 $(1)$(6)$(2)$21,765 $— $21,765 
Net income 385    385  385 
Balance at June 30, 2023$11,830 $10,329 $(1)$(6)$(2)$22,150 $ $22,150 
Six Months Ended June 30, 2022 and 2023
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, 2021$9,149 $8,007 $(2)$(2)$(7)$17,145 $$17,148 
Net income— 812 — — — 812 813 
Other comprehensive income (loss)— — (3)— (2)— (2)
Distributions to noncontrolling interests— — — — — — (1)(1)
Dividends to parent— (250)— — — (250)— (250)
Equitization of certain notes payable to affiliates— 2,431 — — — 2,431 — 2,431 
Other— — — — — 
Balance at June 30, 2022$9,149 $11,001 $(1)$(5)$(7)$20,137 $$20,140 
Balance at December 31, 2022$11,832 $9,585 $(1)$(8)$(2)$21,406 $— $21,406 
Net income 744    744  744 
Other comprehensive income   2  2  2 
Other(2)    (2) (2)
Balance at June 30, 2023$11,830 $10,329 $(1)$(6)$(2)$22,150 $ $22,150 
See Notes to Condensed Consolidated Financial Statements
22

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$1,425 $1,581 $2,958 $3,213 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power489 593 1,034 1,167 
Operation, maintenance and otherOperation, maintenance and other356 360 706 751 
Depreciation and amortizationDepreciation and amortization296 271 611 577 
Property and other taxesProperty and other taxes47 41 95 90 
Impairment of assets and other chargesImpairment of assets and other charges3 7 
Total operating expensesTotal operating expenses1,191 1,269 2,453 2,589 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net1 — 1 
Operating IncomeOperating Income235 312 506 625 
Other Income and Expenses, netOther Income and Expenses, net32 32 61 54 
Interest ExpenseInterest Expense104 90 206 175 
Income Before Income TaxesIncome Before Income Taxes163 254 361 504 
Income Tax ExpenseIncome Tax Expense23 35 52 70 
Net Income and Comprehensive IncomeNet Income and Comprehensive Income$140 $219 $309 $434 

See Notes to Condensed Consolidated Financial Statements
22

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$27 $18 
Receivables (net of allowance for doubtful accounts of $9 at 2024 and $8 at 2023)132 139 
Receivables of VIEs (net of allowance for doubtful accounts of $38 at 2024 and $36 at 2023)789 833 
Receivables from affiliated companies3 16 
Inventory1,294 1,227 
Regulatory assets (includes $39 at 2024 and 2023 related to VIEs)834 942 
Other (includes $18 at 2024 and $31 at 2023 related to VIEs)58 72 
Total current assets3,137 3,247 
Property, Plant and Equipment
Cost39,865 39,283 
Accumulated depreciation and amortization(15,503)(15,227)
Net property, plant and equipment24,362 24,056 
Other Noncurrent Assets
Regulatory assets (includes $633 at 2024 and $643 at 2023 related to VIEs)4,631 4,546 
Nuclear decommissioning trust funds4,345 4,075 
Operating lease right-of-use assets, net304 318 
Other715 682 
Total other noncurrent assets9,995 9,621 
Total Assets$37,494 $36,924 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$557 $634 
Accounts payable to affiliated companies294 332 
Notes payable to affiliated companies754 891 
Taxes accrued129 176 
Interest accrued89 114 
Current maturities of long-term debt (includes $34 at 2024 and 2023 related to VIEs)73 72 
Asset retirement obligations228 244 
Regulatory liabilities300 300 
Other429 481 
Total current liabilities2,853 3,244 
Long-Term Debt (includes $1,062 at 2024 and $1,079 at 2023 related to VIEs)11,955 11,492 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes2,555 2,560 
Asset retirement obligations3,619 3,626 
Regulatory liabilities4,635 4,375 
Operating lease liabilities283 293 
Accrued pension and other post-retirement benefit costs144 146 
Investment tax credits128 129 
Other (includes $13 at 2024 and $12 at 2023 related to VIEs)93 102 
Total other noncurrent liabilities11,457 11,231 
Commitments and Contingencies
Equity
Member's Equity11,079 10,807 
Total Liabilities and Equity$37,494 $36,924 

See Notes to Condensed Consolidated Financial Statements
23

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$21 $49 
Receivables (net of allowance for doubtful accounts of $6 at 2023 and $4 at 2022)158 167 
Receivables of VIEs (net of allowance for doubtful accounts of $37 at 2023 and $40 at 2022)694 793 
Receivables from affiliated companies30 25 
Notes receivable from affiliated companies37 — 
Inventory1,164 1,006 
Regulatory assets (includes $39 at 2023 and 2022 related to VIEs)888 690 
Other (includes $25 at 2023 and $42 at 2022 related to VIEs)61 174 
Total current assets3,053 2,904 
Property, Plant and Equipment
Cost39,779 38,875 
Accumulated depreciation and amortization(14,598)(14,201)
Net property, plant and equipment25,181 24,674 
Other Noncurrent Assets
Regulatory assets (includes $662 at 2023 and $681 at 2022 related to VIEs)4,658 4,724 
Nuclear decommissioning trust funds3,828 3,430 
Operating lease right-of-use assets, net343 370 
Other651 650 
Total other noncurrent assets9,480 9,174 
Total Assets$37,714 $36,752 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$506 $601 
Accounts payable to affiliated companies250 508 
Notes payable to affiliated companies 238 
Taxes accrued121 77 
Interest accrued120 101 
Current maturities of long-term debt (includes $34 at 2023 and 2022 related to VIEs)370 369 
Asset retirement obligations256 288 
Regulatory liabilities267 332 
Other440 384 
Total current liabilities2,330 2,898 
Long-Term Debt (includes $1,096 at 2023 and $1,114 at 2022 related to VIEs)11,521 10,568 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes2,571 2,477 
Asset retirement obligations5,555 5,535 
Regulatory liabilities4,284 4,120 
Operating lease liabilities313 335 
Accrued pension and other post-retirement benefit costs155 160 
Investment tax credits128 124 
Other89 76 
Total other noncurrent liabilities13,095 12,827 
Commitments and Contingencies
Equity
Member's Equity10,618 10,309 
Total Liabilities and Equity$37,714 $36,752 
Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$272 $169 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)385 360 
Equity component of AFUDC(13)(13)
Impairment of assets and other charges 
Deferred income taxes(21)27 
Payments for asset retirement obligations(46)(46)
Provision for rate refunds (14)
(Increase) decrease in
Receivables50 144 
Receivables from affiliated companies13 (1)
Inventory(67)(76)
Other current assets97 (61)
Increase (decrease) in
Accounts payable(31)(3)
Accounts payable to affiliated companies(38)(256)
Taxes accrued(47)(21)
Other current liabilities(49)(86)
Other assets(105)(16)
Other liabilities(11)21 
Net cash provided by operating activities389 132 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(704)(666)
Purchases of debt and equity securities(351)(239)
Proceeds from sales and maturities of debt and equity securities351 236 
Notes receivable from affiliated companies (160)
Other(12)(33)
Net cash used in investing activities(716)(862)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt495 991 
Payments for the redemption of long-term debt(33)(32)
Notes payable to affiliated companies(137)(239)
Other (1)
Net cash provided by financing activities325 719 
Net decrease in cash, cash equivalents and restricted cash(2)(11)
Cash, cash equivalents and restricted cash at beginning of period51 79 
Cash, cash equivalents and restricted cash at end of period$49 $68 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$259 $176 

See Notes to Condensed Consolidated Financial Statements
24

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$309 $434 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)708 672 
Equity component of AFUDC(27)(22)
Impairment of assets and other charges7 
Deferred income taxes32 32 
Payments for asset retirement obligations(106)(90)
Provision for rate refunds(24)(30)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 314 
Receivables108 (25)
Receivables from affiliated companies(5)63 
Inventory(158)(27)
Other current assets(146)(83)
Increase (decrease) in
Accounts payable(33)(7)
Accounts payable to affiliated companies(258)32 
Taxes accrued44 (49)
Other current liabilities(21)(9)
Other assets107 (75)
Other liabilities37 
Net cash provided by operating activities574 1,143 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(1,193)(926)
Purchases of debt and equity securities(490)(887)
Proceeds from sales and maturities of debt and equity securities486 882 
Notes receivable from affiliated companies(37)(154)
Other(81)22 
Net cash used in investing activities(1,315)(1,063)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt991 939 
Payments for the redemption of long-term debt(39)(530)
Notes payable to affiliated companies(239)(172)
Distributions to parent (250)
Other(1)(1)
Net cash provided by (used in) financing activities712 (14)
Net (decrease) increase in cash, cash equivalents and restricted cash(29)66 
Cash, cash equivalents and restricted cash at beginning of period79 39 
Cash, cash equivalents and restricted cash at end of period$50 $105 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$198 $158 
Three Months Ended
March 31, 2023 and 2024
(in millions)Member's Equity
Balance at December 31, 2022$10,309 
Net income169 
Balance at March 31, 2023$10,478 
Balance at December 31, 2023$10,807 
Net income272
Balance at March 31, 2024$11,079

See Notes to Condensed Consolidated Financial Statements
25

FINANCIAL STATEMENTS
DUKE ENERGY PROGRESS, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended
June 30, 2022 and 2023
(in millions)Member's Equity
Balance at March 31, 2022$9,517 
Net income219 
Other(1)
Balance at June 30, 2022$9,735 
Balance at March 31, 2023$10,478 
Net income140
Balance at June 30, 2023$10,618
Six Months Ended
June 30, 2022 and 2023
(in millions)Member's Equity
Balance at December 31, 2021$9,551 
Net income434 
Distributions to parent(250)
Balance at June 30, 2022$9,735 
Balance at December 31, 2022$10,309 
Net income309
Balance at June 30, 2023$10,618

See Notes to Condensed Consolidated Financial Statements
26

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$1,782 $1,628 $3,292 $2,983 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power687 665 1,333 1,155 
Operation, maintenance and otherOperation, maintenance and other324 241 537 490 
Depreciation and amortizationDepreciation and amortization245 237 435 468 
Property and other taxesProperty and other taxes126 109 246 212 
Impairment of assets and other chargesImpairment of assets and other charges(2)— (1)— 
Total operating expensesTotal operating expenses1,380 1,252 2,550 2,325 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net 1 
Operating IncomeOperating Income402 377 743 660 
Other Income and Expenses, netOther Income and Expenses, net7 40 37 55 
Interest ExpenseInterest Expense87 90 202 174 
Income Before Income TaxesIncome Before Income Taxes322 327 578 541 
Income Tax ExpenseIncome Tax Expense64 66 115 109 
Net IncomeNet Income$258 $261 $463 $432 
Other Comprehensive (Loss) Gain, net of tax
Other Comprehensive Income, net of tax
Unrealized (losses) gains on available-for-sale securities (1)2 (2)
Other Comprehensive Income, net of tax
Other Comprehensive Income, net of tax
Unrealized gains on available-for-sale securities
Unrealized gains on available-for-sale securities
Unrealized gains on available-for-sale securities
Comprehensive IncomeComprehensive Income$258 $260 $465 $430 
Comprehensive Income
Comprehensive Income

See Notes to Condensed Consolidated Financial Statements
26

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$4 $24 
Receivables (net of allowance for doubtful accounts of $12 at 2024 and $11 at 2023)90 83 
Receivables of VIEs (net of allowance for doubtful accounts of $15 at 2024 and $20 at 2023)467 532 
Receivables from affiliated companies2 238 
Inventory (includes $470 at 2024 and $462 at 2023 related to VIEs)693 674 
Regulatory assets (includes $59 at 2024 and 2023 related to VIEs)525 720 
Other (includes $11 at 2024 and $37 at 2023 related to VIEs)57 51 
Total current assets1,838 2,322 
Property, Plant and Equipment
Cost28,882 28,353 
Accumulated depreciation and amortization(7,219)(7,067)
Net property, plant and equipment21,663 21,286 
Other Noncurrent Assets
Regulatory assets (includes $790 at 2024 and $803 at 2023 related to VIEs)1,895 1,883 
Nuclear decommissioning trust funds352 382 
Operating lease right-of-use assets, net294 299 
Other456 429 
Total other noncurrent assets2,997 2,993 
Total Assets$26,498 $26,601 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $179 at 2024 and $188 at 2023 related to VIEs)$616 $738 
Accounts payable to affiliated companies121 135 
Notes payable to affiliated companies66 152 
Taxes accrued134 185 
Interest accrued128 86 
Current maturities of long-term debt (includes $384 at 2024 and 2023 related to VIEs)586 589 
Asset retirement obligations1 
Regulatory liabilities93 118 
Other332 350 
Total current liabilities2,077 2,354 
Long-Term Debt (includes $800 at 2024 and $831 at 2023 related to VIEs)9,791 9,812 
Other Noncurrent Liabilities
Deferred income taxes2,750 2,733 
Asset retirement obligations252 274 
Regulatory liabilities709 708 
Operating lease liabilities247 251 
Accrued pension and other post-retirement benefit costs97 98 
Investment tax credits242 242 
Other (includes $10 at 2024 and $6 at 2023 related to VIEs)111 86 
Total other noncurrent liabilities4,408 4,392 
Commitments and Contingencies
Equity
Member's equity10,227 10,048 
Accumulated other comprehensive loss(5)(5)
Total equity10,222 10,043 
Total Liabilities and Equity$26,498 $26,601 
See Notes to Condensed Consolidated Financial Statements
27

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$37 $45 
Receivables (net of allowance for doubtful accounts of $9 at 2023 and $8 at 2022)129 148 
Receivables of VIEs (net of allowance for doubtful accounts of $21 at 2023 and $28 at 2022)618 496 
Receivables from affiliated companies5 
Inventory653 573 
Regulatory assets (includes $56 at 2023 and $55 at 2022 related to VIEs)1,039 1,143 
Other (includes $36 at 2023 and $46 at 2022 related to VIEs)100 108 
Total current assets2,581 2,515 
Property, Plant and Equipment
Cost27,094 25,940 
Accumulated depreciation and amortization(6,794)(6,377)
Net property, plant and equipment20,300 19,563 
Other Noncurrent Assets
Regulatory assets (includes $803 at 2023 and $826 at 2022 related to VIEs)2,161 2,422 
Nuclear decommissioning trust funds405 424 
Operating lease right-of-use assets, net238 258 
Other409 372 
Total other noncurrent assets3,213 3,476 
Total Assets$26,094 $25,554 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$572 $880 
Accounts payable to affiliated companies112 177 
Notes payable to affiliated companies829 605 
Taxes accrued261 53 
Interest accrued89 80 
Current maturities of long-term debt (includes $382 at 2023 and $306 at 2022 related to VIEs)1,201 328 
Asset retirement obligations1 
Regulatory liabilities188 244 
Other335 363 
Total current liabilities3,588 2,731 
Long-Term Debt (includes $859 at 2023 and $890 at 2022 related to VIEs)8,554 9,381 
Other Noncurrent Liabilities
Deferred income taxes2,785 2,789 
Asset retirement obligations335 357 
Regulatory liabilities739 633 
Operating lease liabilities190 211 
Accrued pension and other post-retirement benefit costs105 111 
Investment tax credits233 234 
Other77 84 
Total other noncurrent liabilities4,464 4,419 
Commitments and Contingencies
Equity
Member's equity9,494 9,031 
Accumulated other comprehensive loss(6)(8)
Total equity9,488 9,023 
Total Liabilities and Equity$26,094 $25,554 

Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$179 $205 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion284 194 
Equity component of AFUDC(5)(3)
Impairment of assets and other charges 
Deferred income taxes10 21 
Payments for asset retirement obligations(22)(12)
(Increase) decrease in
Receivables53 42 
Receivables from affiliated companies236 (1)
Inventory(19)(57)
Other current assets132 363 
Increase (decrease) in
Accounts payable(48)(211)
Accounts payable to affiliated companies(14)(67)
Taxes accrued(51)79 
Other current liabilities11 (27)
Other assets(16)(193)
Other liabilities34 (8)
Net cash provided by operating activities764 326 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(669)(609)
Purchases of debt and equity securities(30)(40)
Proceeds from sales and maturities of debt and equity securities73 68 
Other(62)(38)
Net cash used in investing activities(688)(619)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt3 
Payments for the redemption of long-term debt(39)(34)
Notes payable to affiliated companies(86)281 
Other(1)(1)
Net cash (used in) provided by financing activities(123)251 
Net decrease in cash, cash equivalents and restricted cash(47)(42)
Cash, cash equivalents and restricted cash at beginning of period67 86 
Cash, cash equivalents and restricted cash at end of period$20 $44 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$421 $340 
See Notes to Condensed Consolidated Financial Statements
28

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$463 $432 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion556 535 
Equity component of AFUDC(6)(10)
Impairment of assets and other charges(1)— 
Deferred income taxes(16)66 
Payments for asset retirement obligations(25)(47)
(Increase) decrease in
Receivables(103)(222)
Receivables from affiliated companies(3)11 
Inventory(80)(4)
Other current assets403 (307)
Increase (decrease) in
Accounts payable(261)168 
Accounts payable to affiliated companies(65)(62)
Taxes accrued208 134 
Other current liabilities(41)87 
Other assets(23)(3)
Other liabilities(9)(11)
Net cash provided by operating activities997 767 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(1,232)(1,018)
Purchases of debt and equity securities(83)(109)
Proceeds from sales and maturities of debt and equity securities121 151 
Other(81)(43)
Net cash used in investing activities(1,275)(1,019)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt82 — 
Payments for the redemption of long-term debt(40)(39)
Notes payable to affiliated companies224 306 
Other(1)— 
Net cash provided by financing activities265 267 
Net decrease in cash, cash equivalents and restricted cash(13)15 
Cash, cash equivalents and restricted cash at beginning of period86 62 
Cash, cash equivalents and restricted cash at end of period$73 $77 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$346 $297 
Three Months Ended March 31, 2023 and 2024
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Gains (Losses) on
Member'sAvailable-for-SaleTotal
(in millions)EquitySecuritiesEquity
Balance at December 31, 2022$9,031 $(8)$9,023 
Net income205 — 205 
Other comprehensive income— 
Other— 
Balance at March 31, 2023$9,237 $(6)$9,231 
Balance at December 31, 2023$10,048 $(5)$10,043 
Net income179  179 
Balance at March 31, 2024$10,227 $(5)$10,222 
See Notes to Condensed Consolidated Financial Statements
29

FINANCIAL STATEMENTS
DUKE ENERGY FLORIDA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Losses on
Member'sAvailable-for-SaleTotal
(in millions)EquitySecuritiesEquity
Balance at March 31, 2022$8,469 $(4)$8,465 
Net income261 — 261 
Other comprehensive loss— (1)(1)
Balance at June 30, 2022$8,730 $(5)$8,725 
Balance at March 31, 2023$9,237 $(6)$9,231 
Net income258  258 
Other(1) (1)
Balance at June 30, 2023$9,494 $(6)$9,488 
Six Months Ended June 30, 2022 and 2023
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Gains (Losses) on
Member'sAvailable-for-SaleTotal
(in millions)EquitySecuritiesEquity
Balance at December 31, 2021$8,298 $(3)$8,295 
Net income432 — 432 
Other comprehensive loss— (2)(2)
Balance at June 30, 2022$8,730 $(5)$8,725 
Balance at December 31, 2022$9,031 $(8)$9,023 
Net income463  463 
Other comprehensive income 2 2 
Balance at June 30, 2023$9,494 $(6)$9,488 
See Notes to Condensed Consolidated Financial Statements
30

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues
Regulated electric
Regulated electric
Regulated electricRegulated electric$465 $401 $939 $813 
Regulated natural gasRegulated natural gas124 144 359 370 
Total operating revenuesTotal operating revenues589 545 1,298 1,183 
Total operating revenues
Total operating revenues
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power164 127 340 254 
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Cost of natural gas
Cost of natural gas
Cost of natural gasCost of natural gas20 46 112 153 
Operation, maintenance and otherOperation, maintenance and other121 109 244 287 
Depreciation and amortizationDepreciation and amortization86 83 176 163 
Property and other taxesProperty and other taxes84 92 164 193 
Total operating expensesTotal operating expenses475 457 1,036 1,050 
Gains on Sales of Other Assets and Other, net  
Total operating expenses
Total operating expenses
Operating Income
Operating Income
Operating IncomeOperating Income114 89 262 134 
Other Income and Expenses, netOther Income and Expenses, net13 21 12 
Interest ExpenseInterest Expense43 30 79 60 
Income Before Income TaxesIncome Before Income Taxes84 65 204 86 
Income Tax Expense (Benefit)13 33 (47)
Income Tax Expense
Net Income and Comprehensive Income
Net Income and Comprehensive Income
Net Income and Comprehensive IncomeNet Income and Comprehensive Income$71 $56 $171 $133 
See Notes to Condensed Consolidated Financial Statements
30

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$5 $24 
Receivables (net of allowance for doubtful accounts of $41 at 2024 and $9 at 2023)437 112 
Receivables from affiliated companies3 239 
Inventory185 179 
Regulatory assets75 73 
Other17 134 
Total current assets722 761 
Property, Plant and Equipment
Cost13,378 13,210 
Accumulated depreciation and amortization(3,507)(3,451)
Net property, plant and equipment9,871 9,759 
Other Noncurrent Assets
Goodwill920 920 
Regulatory assets678 676 
Operating lease right-of-use assets, net16 16 
Other98 84 
Total other noncurrent assets1,712 1,696 
Total Assets$12,305 $12,216 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$288 $338 
Accounts payable to affiliated companies69 71 
Notes payable to affiliated companies306 613 
Taxes accrued249 316 
Interest accrued51 35 
Asset retirement obligations7 
Regulatory liabilities40 56 
Other64 65 
Total current liabilities1,074 1,500 
Long-Term Debt3,914 3,493 
Long-Term Debt Payable to Affiliated Companies25 25 
Other Noncurrent Liabilities
Deferred income taxes1,282 1,272 
Asset retirement obligations134 130 
Regulatory liabilities481 497 
Operating lease liabilities16 16 
Accrued pension and other post-retirement benefit costs98 97 
Other87 86 
Total other noncurrent liabilities2,098 2,098 
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2024 and 2023762 762 
Additional paid-in capital3,100 3,100 
Retained earnings1,332 1,238 
Total equity5,194 5,100 
Total Liabilities and Equity$12,305 $12,216 

See Notes to Condensed Consolidated Financial Statements
31

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$8 $16 
Receivables (net of allowance for doubtful accounts of $8 at 2023 and $6 at 2022)89 73 
Receivables from affiliated companies180 247 
Notes receivable from affiliated companies160 — 
Inventory178 144 
Regulatory assets47 103 
Other44 86 
Total current assets706 669 
Property, Plant and Equipment
Cost12,762 12,497 
Accumulated depreciation and amortization(3,339)(3,250)
Net property, plant and equipment9,423 9,247 
Other Noncurrent Assets
Goodwill920 920 
Regulatory assets651 581 
Operating lease right-of-use assets, net17 18 
Other74 71 
Total other noncurrent assets1,662 1,590 
Total Assets$11,791 $11,506 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$347 $380 
Accounts payable to affiliated companies60 72 
Notes payable to affiliated companies109 497 
Taxes accrued181 317 
Interest accrued40 29 
Current maturities of long-term debt475 475 
Asset retirement obligations12 17 
Regulatory liabilities51 99 
Other66 74 
Total current liabilities1,341 1,960 
Long-Term Debt3,491 2,745 
Long-Term Debt Payable to Affiliated Companies25 25 
Other Noncurrent Liabilities
Deferred income taxes1,165 1,136 
Asset retirement obligations140 137 
Regulatory liabilities487 534 
Operating lease liabilities17 17 
Accrued pension and other post-retirement benefit costs93 90 
Other95 96 
Total other noncurrent liabilities1,997 2,010 
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2023 and 2022762 762 
Additional paid-in capital3,100 3,100 
Retained earnings1,075 904 
Total equity4,937 4,766 
Total Liabilities and Equity$11,791 $11,506 
Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$94 $100 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization100 91 
Deferred income taxes2 (3)
Payments for asset retirement obligations(1)(1)
(Increase) decrease in
Receivables12 — 
Receivables from affiliated companies65 17 
Inventory(5)(11)
Other current assets100 94 
Increase (decrease) in
Accounts payable(20)(60)
Accounts payable to affiliated companies(2)(7)
Taxes accrued(67)(90)
Other current liabilities(7)(42)
Other assets7 
Other liabilities(17)(1)
Net cash provided by operating activities261 88 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(217)(232)
Net proceeds from the sales of other assets 75 
Notes receivable from affiliated companies(166)(224)
Other(10)(16)
Net cash used in investing activities(393)(397)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt424 749 
Notes payable to affiliated companies(307)(425)
Other(4)(5)
Net cash provided by financing activities113 319 
Net (decrease) increase in cash and cash equivalents(19)10 
Cash and cash equivalents at beginning of period24 16 
Cash and cash equivalents at end of period$5 $26 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$84 $87 

See Notes to Condensed Consolidated Financial Statements
32

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$171 $133 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization178 165 
Equity component of AFUDC(3)(6)
Deferred income taxes12 (41)
Payments for asset retirement obligations(5)(1)
Provision for rate refunds 
(Increase) decrease in
Receivables(14)13 
Receivables from affiliated companies (3)
Inventory(33)
Other current assets105 13 
Increase (decrease) in
Accounts payable(30)57 
Accounts payable to affiliated companies(12)— 
Taxes accrued(135)(95)
Other current liabilities(48)(47)
Other assets(19)(46)
Other liabilities(44)72 
Net cash provided by operating activities123 222 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(435)(406)
Net proceeds from the sales of other assets75 — 
Notes receivable from affiliated companies(93)(37)
Other(34)(25)
Net cash used in investing activities(487)(468)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt749 50 
Notes payable to affiliated companies(388)199 
Other(5)(1)
Net cash provided by financing activities356 248 
Net (decrease) increase in cash and cash equivalents(8)
Cash and cash equivalents at beginning of period16 13 
Cash and cash equivalents at end of period$8 $15 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$120 $102 
Three Months Ended March 31, 2023 and 2024
Additional
CommonPaid-inRetainedTotal
(in millions)StockCapitalEarningsEquity
Balance at December 31, 2022$762 $3,100 $904 $4,766 
Net income— — 100 100 
Balance at March 31, 2023$762 $3,100 $1,004 $4,866 
Balance at December 31, 2023$762 $3,100 $1,238 $5,100 
Net income  94 94 
Balance at March 31, 2024$762 $3,100 $1,332 $5,194 

See Notes to Condensed Consolidated Financial Statements
33

FINANCIAL STATEMENTS
DUKE ENERGY OHIO, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Additional
CommonPaid-inRetainedTotal
(in millions)StockCapitalEarningsEquity
Balance at March 31, 2022$762 $3,100 $680 $4,542 
Net income— — 56 56 
Other— — (1)(1)
Balance at June 30, 2022$762 $3,100 $735 $4,597 
Balance at March 31, 2023$762 $3,100 $1,004 $4,866 
Net income  71 71 
Balance at June 30, 2023$762 $3,100 $1,075 $4,937 
Six Months Ended June 30, 2022 and 2023
Additional
CommonPaid-inRetainedTotal
(in millions)StockCapitalEarningsEquity
Balance at December 31, 2021$762 $3,100 $602 $4,464 
Net income— — 133 133 
Balance at June 30, 2022$762 $3,100 $735 $4,597 
Balance at December 31, 2022$762 $3,100 $904 $4,766 
Net income  171 171 
Balance at June 30, 2023$762 $3,100 $1,075 $4,937 
See Notes to Condensed Consolidated Financial Statements
34

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$780 $918 $1,755 $1,740 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power248 359 697 678 
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Operation, maintenance and otherOperation, maintenance and other180 182 364 374 
Depreciation and amortizationDepreciation and amortization169 155 327 311 
Property and other taxesProperty and other taxes7 22 25 47 
Impairment of assets and other charges —  211 
Total operating expenses
Total operating expenses
Total operating expensesTotal operating expenses604 718 1,413 1,621 
Operating Income
Operating Income
Operating IncomeOperating Income176 200 342 119 
Other Income and Expenses, netOther Income and Expenses, net14 28 18 
Interest ExpenseInterest Expense52 45 104 90 
Income Before Income TaxesIncome Before Income Taxes138 163 266 47 
Income Tax Expense (Benefit)24 14 46 (23)
Net Income and Comprehensive Income$114 $149 $220 $70 
Income Tax Expense
Net Income
Other Comprehensive Loss, net of tax
Pension and OPEB adjustments
Pension and OPEB adjustments
Pension and OPEB adjustments
Comprehensive Income

See Notes to Condensed Consolidated Financial Statements
34

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$5 $
Receivables (net of allowance for doubtful accounts of $16 at 2024 and $5 at 2023)429 156 
Receivables from affiliated companies12 197 
Inventory534 582 
Regulatory assets101 102 
Other59 98 
Total current assets1,140 1,143 
Property, Plant and Equipment
Cost19,097 18,900 
Accumulated depreciation and amortization(6,598)(6,501)
Net property, plant and equipment12,499 12,399 
Other Noncurrent Assets
Regulatory assets900 894 
Operating lease right-of-use assets, net48 50 
Other353 325 
Total other noncurrent assets1,301 1,269 
Total Assets$14,940 $14,811 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$234 $300 
Accounts payable to affiliated companies78 176 
Notes payable to affiliated companies136 256 
Taxes accrued75 66 
Interest accrued73 54 
Current maturities of long-term debt4 
Asset retirement obligations131 120 
Regulatory liabilities213 209 
Other179 184 
Total current liabilities1,123 1,369 
Long-Term Debt4,646 4,348 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes1,476 1,436 
Asset retirement obligations672 689 
Regulatory liabilities1,450 1,459 
Operating lease liabilities45 46 
Accrued pension and other post-retirement benefit costs101 115 
Investment tax credits186 186 
Other13 — 
Total other noncurrent liabilities3,943 3,931 
Commitments and Contingencies
Equity
Member's equity5,078 5,012 
Accumulated other comprehensive income 
           Total equity5,078 5,013 
Total Liabilities and Equity$14,940 $14,811 

See Notes to Condensed Consolidated Financial Statements
35

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents$11 $31 
Receivables (net of allowance for doubtful accounts of $4 at 2023 and 2022)178 112 
Receivables from affiliated companies164 298 
Inventory593 489 
Regulatory assets97 249 
Other90 197 
Total current assets1,133 1,376 
Property, Plant and Equipment
Cost18,514 18,121 
Accumulated depreciation and amortization(6,253)(6,021)
Net property, plant and equipment12,261 12,100 
Other Noncurrent Assets
Regulatory assets896 875 
Operating lease right-of-use assets, net47 49 
Other278 254 
Total other noncurrent assets1,221 1,178 
Total Assets$14,615 $14,654 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$291 $391 
Accounts payable to affiliated companies97 206 
Notes payable to affiliated companies209 435 
Taxes accrued80 92 
Interest accrued56 48 
Current maturities of long-term debt3 303 
Asset retirement obligations187 207 
Regulatory liabilities222 187 
Other179 161 
Total current liabilities1,324 2,030 
Long-Term Debt4,350 3,854 
Long-Term Debt Payable to Affiliated Companies150 150 
Other Noncurrent Liabilities
Deferred income taxes1,323 1,299 
Asset retirement obligations737 744 
Regulatory liabilities1,523 1,454 
Operating lease liabilities45 47 
Accrued pension and other post-retirement benefit costs124 122 
Investment tax credits186 186 
Other26 65 
Total other noncurrent liabilities3,964 3,917 
Commitments and Contingencies
Equity
Member's equity4,826 4,702 
Accumulated other comprehensive income1 
           Total equity4,827 4,703 
Total Liabilities and Equity$14,615 $14,654 

Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$67 $106 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion170 158 
Equity component of AFUDC(2)(1)
Deferred income taxes24 
Payments for asset retirement obligations(12)(19)
(Increase) decrease in
Receivables35 20 
Receivables from affiliated companies(6)(26)
Inventory48 (71)
Other current assets30 174 
Increase (decrease) in
Accounts payable(39)(107)
Accounts payable to affiliated companies(57)(33)
Taxes accrued9 14 
Other current liabilities32 112 
Other assets(13)(12)
Other liabilities(7)35 
Net cash provided by operating activities279 352 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(275)(226)
Purchases of debt and equity securities(5)(23)
Proceeds from sales and maturities of debt and equity securities4 16 
Notes receivable from affiliated companies(117)96 
Other(24)(10)
Net cash used in investing activities(417)(147)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt298 495 
Payments for the redemption of long-term debt (300)
Notes payable to affiliated companies(120)(231)
Distributions to parent(42)(188)
Other(1)(1)
Net cash provided by (used in) financing activities135 (225)
Net decrease in cash and cash equivalents(3)(20)
Cash and cash equivalents at beginning of period8 31 
Cash and cash equivalents at end of period$5 $11 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$88 $85 
See Notes to Condensed Consolidated Financial Statements
36

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$220 $70 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion328 312 
Equity component of AFUDC(3)(10)
Impairment of assets and other charges 212 
Deferred income taxes (80)
Payments for asset retirement obligations(38)(31)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions (53)
Receivables(81)21 
Receivables from affiliated companies 
Inventory(104)(23)
Other current assets185 (166)
Increase (decrease) in
Accounts payable(94)59 
Accounts payable to affiliated companies(17)
Taxes accrued(12)19 
Other current liabilities124 52 
Other assets(26)(20)
Other liabilities78 50 
Net cash provided by operating activities560 421 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(450)(433)
Purchases of debt and equity securities(44)(26)
Proceeds from sales and maturities of debt and equity securities38 21 
Notes receivable from affiliated companies134 
Other(39)(23)
Net cash used in investing activities(361)(452)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt495 67 
Payments for the redemption of long-term debt(300)(53)
Notes payable to affiliated companies(225)275 
Distributions to parent(188)(237)
Other(1)(1)
Net cash (used in) provided by financing activities(219)51 
Net (decrease) increase in cash and cash equivalents(20)20 
Cash and cash equivalents at beginning of period31 
Cash and cash equivalents at end of period$11 $26 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$116 $94 
Three Months Ended March 31, 2023 and 2024
Accumulated Other
Comprehensive Income (Loss)
Member'sPension andTotal
(in millions)EquityOPEB AdjustmentsEquity
Balance at December 31, 2022$4,702 $$4,703 
Net income106 — 106 
Distributions to parent(75)— (75)
Balance at March 31, 2023$4,733 $$4,734 
Balance at December 31, 2023$5,012 $$5,013 
Net income67  67 
Other(1)(1)(2)
Balance at March 31, 2024$5,078 $ $5,078 

See Notes to Condensed Consolidated Financial Statements
37

FINANCIAL STATEMENTS
DUKE ENERGY INDIANA, LLC
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Accumulated Other
Comprehensive Income
Member'sPension andTotal
(in millions)EquityOPEB AdjustmentsEquity
Balance at March 31, 2022$4,824 $— $4,824 
Net income149 — 149 
Distributions to parent(112)— (112)
Balance at June 30, 2022$4,861 $— $4,861 
Balance at March 31, 2023$4,733 $$4,734 
Net income114  114 
Distributions to parent(21) (21)
Balance at June 30, 2023$4,826 $1 $4,827 
Accumulated Other
Comprehensive Income
Member'sPension andTotal
(in millions)EquityOPEB AdjustmentsEquity
Balance at December 31, 2021$5,015 $— $5,015 
Net loss70 — 70 
Distributions to parent(225)— (225)
Other— 
Balance at June 30, 2022$4,861 $— $4,861 
Balance at December 31, 2022$4,702 $$4,703 
Net income220  220 
Distributions to parent(96) (96)
Balance at June 30, 2023$4,826 $1 $4,827 

See Notes to Condensed Consolidated Financial Statements
38

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Operating RevenuesOperating Revenues$236 $310 $911 $1,115 
Operating Revenues
Operating Revenues
Operating ExpensesOperating Expenses
Cost of natural gas
Cost of natural gas
Cost of natural gasCost of natural gas59 143 265 517 
Operation, maintenance and otherOperation, maintenance and other82 88 171 183 
Depreciation and amortizationDepreciation and amortization59 56 116 110 
Property and other taxesProperty and other taxes14 15 30 31 
Impairment of assets and other chargesImpairment of assets and other charges(5)— (4)— 
Total operating expensesTotal operating expenses209 302 578 841 
Gains on Sales of Other Assets and Other, net—  
Operating Income
Operating Income
Operating IncomeOperating Income27 12 333 278 
Other Income and Expenses, netOther Income and Expenses, net16 15 32 28 
Other Income and Expenses, net
Other Income and Expenses, net
Interest ExpenseInterest Expense39 34 79 66 
Income (Loss) Before Income Taxes4 (7)286 240 
Income Tax Expense (Benefit)1 (6)51 27 
Net Income (Loss) and Comprehensive Income (Loss)$3 $(1)$235 $213 
Interest Expense
Interest Expense
Income Before Income Taxes
Income Tax Expense
Net Income and Comprehensive Income
See Notes to Condensed Consolidated Financial Statements
38

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)March 31, 2024December 31, 2023
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $12 at 2024 and $11 at 2023)$297 $311 
Receivables from affiliated companies12 10 
Inventory65 112 
Regulatory assets131 161 
Other9 
Total current assets514 601 
Property, Plant and Equipment
Cost12,157 11,908 
Accumulated depreciation and amortization(2,296)(2,259)
Net property, plant and equipment9,861 9,649 
Other Noncurrent Assets
Goodwill49 49 
Regulatory assets403 410 
Operating lease right-of-use assets, net5 
Investments in equity method unconsolidated affiliates78 78 
Other282 276 
Total other noncurrent assets817 817 
Total Assets$11,192 $11,067 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$246 $315 
Accounts payable to affiliated companies56 54 
Notes payable to affiliated companies508 538 
Taxes accrued101 89 
Interest accrued48 39 
Current maturities of long-term debt40 40 
Regulatory liabilities88 98 
Other64 77 
Total current liabilities1,151 1,250 
Long-Term Debt3,629 3,628 
Other Noncurrent Liabilities
Deferred income taxes930 933 
Asset retirement obligations26 26 
Regulatory liabilities973 988 
Operating lease liabilities10 10 
Accrued pension and other post-retirement benefit costs7 
Other168 172 
Total other noncurrent liabilities2,114 2,137 
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2024 and 20231,635 1,635 
Retained earnings2,662 2,416 
Total Piedmont Natural Gas Company, Inc. stockholder's equity4,297 4,051 
Noncontrolling interests1 
Total equity4,298 4,052 
Total Liabilities and Equity$11,192 $11,067 

See Notes to Condensed Consolidated Financial Statements
39

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Balance SheetsStatements of Cash Flows
(Unaudited)
(in millions)June 30, 2023December 31, 2022
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $13 at 2023 and $14 at 2022)$117 $436 
Receivables from affiliated companies13 11 
Inventory73 172 
Regulatory assets121 119 
Other57 
Total current assets381 742 
Property, Plant and Equipment
Cost11,343 10,869 
Accumulated depreciation and amortization(2,189)(2,081)
Facilities to be retired, net4 
Net property, plant and equipment9,158 8,797 
Other Noncurrent Assets
Goodwill49 49 
Regulatory assets401 392 
Operating lease right-of-use assets, net3 
Investments in equity method unconsolidated affiliates78 79 
Other280 272 
Total other noncurrent assets811 796 
Total Assets$10,350 $10,335 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$180 $345 
Accounts payable to affiliated companies44 51 
Notes payable to affiliated companies104 514 
Taxes accrued30 74 
Interest accrued41 40 
Current maturities of long-term debt45 45 
Regulatory liabilities111 74 
Other66 81 
Total current liabilities621 1,224 
Long-Term Debt3,667 3,318 
Other Noncurrent Liabilities
Deferred income taxes924 870 
Asset retirement obligations27 26 
Regulatory liabilities1,006 1,024 
Operating lease liabilities11 13 
Accrued pension and other post-retirement benefit costs6 
Other180 180 
Total other noncurrent liabilities2,154 2,120 
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2023 and 20221,635 1,635 
Retained earnings2,272 2,037 
Total Piedmont Natural Gas Company, Inc. stockholder's equity3,907 3,672 
Noncontrolling interests1 
Total equity3,908 3,673 
Total Liabilities and Equity$10,350 $10,335 
Three Months Ended
March 31,
(in millions)20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$246 $232 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization63 58 
Equity component of AFUDC(6)(5)
Impairment of assets and other charges 
Deferred income taxes(15)14 
Equity in earnings from unconsolidated affiliates(2)(2)
(Increase) decrease in
Receivables13 189 
Receivables from affiliated companies(2)— 
Inventory48 73 
Other current assets20 (19)
Increase (decrease) in
Accounts payable(43)(107)
Accounts payable to affiliated companies2 (12)
Taxes accrued12 (13)
Other current liabilities(1)42 
Other assets(2)(2)
Other liabilities9 (1)
Net cash provided by operating activities342 448 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(294)(271)
Other(18)(6)
Net cash used in investing activities(312)(277)
CASH FLOWS FROM FINANCING ACTIVITIES
Notes payable to affiliated companies(30)(171)
Net cash used in financing activities(30)(171)
Net increase in cash and cash equivalents — 
Cash and cash equivalents at beginning of period — 
Cash and cash equivalents at end of period$ $— 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$195 $160 

See Notes to Condensed Consolidated Financial Statements
40

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Cash FlowsChanges in Equity
(Unaudited)
Six Months Ended
June 30,
(in millions)20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$235 $213 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization117 111 
Equity component of AFUDC(10)(4)
Impairment of assets and other charges(4)— 
Deferred income taxes33 (4)
Equity in earnings from unconsolidated affiliates(4)(4)
Provision for rate refunds (3)
(Increase) decrease in
Receivables317 168 
Receivables from affiliated companies(2)— 
Inventory98 40 
Other current assets(57)(63)
Increase (decrease) in
Accounts payable(84)31 
Accounts payable to affiliated companies(7)
Taxes accrued(44)(32)
Other current liabilities27 44 
Other assets(7)(6)
Other liabilities4 (1)
Net cash provided by operating activities612 494 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(535)(385)
Contributions to equity method investments (8)
Other(15)(9)
Net cash used in investing activities(550)(402)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt348 394 
Notes payable to affiliated companies(410)(485)
Other (1)
Net cash used in financing activities(62)(92)
Net increase in cash and cash equivalents — 
Cash and cash equivalents at beginning of period — 
Cash and cash equivalents at end of period$ $— 
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures$126 $124 
Transfer of ownership interest of certain equity method investees to parent — 
Three Months Ended March 31, 2023 and 2024
Total
Piedmont
Natural Gas
CommonRetainedCompany, Inc.NoncontrollingTotal
(in millions)StockEarningsEquityInterestsEquity
Balance at December 31, 2022$1,635 $2,037 $3,672 $$3,673 
Net income— 232 232 — 232 
Balance at March 31, 2023$1,635 $2,269 $3,904 $$3,905 
Balance at December 31, 2023$1,635 $2,416 $4,051 $$4,052 
Net income 246 246  246 
Balance at March 31, 2024$1,635 $2,662 $4,297 $1 $4,298 

See Notes to Condensed Consolidated Financial Statements
41

FINANCIAL STATEMENTS
PIEDMONT NATURAL GAS COMPANY, INC.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
Three Months Ended June 30, 2022 and 2023
Total
Piedmont
Natural Gas
CommonRetainedCompany, Inc.NoncontrollingTotal
(in millions)StockEarningsEquityInterestsEquity
Balance at March 31, 2022$1,635 $1,928 $3,563 $— $3,563 
Net loss— (1)(1)— (1)
Balance at June 30, 2022$1,635 $1,927 $3,562 $— $3,562 
Balance at March 31, 2023$1,635 $2,269 $3,904 $$3,905 
Net income 3 3  
Balance at June 30, 2023$1,635 $2,272 $3,907 $1 $3,908 
Six Months Ended June 30, 2022 and 2023
Total
Piedmont
Natural Gas
CommonRetainedCompany, Inc.NoncontrollingTotal
(in millions)StockEarningsEquityInterestsEquity
Balance at December 31, 2021$1,635 $1,714 $3,349 $— $3,349 
Net income— 213 213 — 213 
Balance at June 30, 2022$1,635 $1,927 $3,562 $— $3,562 
Balance at December 31, 2022$1,635 $2,037 $3,672 $$3,673 
Net income 235 235  235 
Balance at June 30, 2023$1,635 $2,272 $3,907 $1 $3,908 

See Notes to Condensed Consolidated Financial Statements
42

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
Registrant1234567891011121314151617
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's Annual Report on Form 10-K for the year ended December 31, 2022.2023.
The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Condensed Consolidated Financial Statements. However, none of the registrants make any representations as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself.
These Condensed Consolidated Financial Statements, in the opinion of the respective companies’ management, reflect all normal recurring adjustments necessary to fairly present the financial position and results of operations of each of the Duke Energy Registrants. Amounts reported in Duke Energy’s interim Condensed Consolidated Statements of Operations and each of the Subsidiary Registrants’ interim Condensed Consolidated Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to effects of seasonal temperature variations on energy consumption, regulatory rulings, timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors.
In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
BASIS OF CONSOLIDATION
These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 12 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities.
Discontinued Operations
Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. Unless otherwise noted, the notes to these condensed consolidated financial statements exclude amounts related to discontinued operations for all periods presented. For the sixthree months ended June 30,March 31, 2024, and 2023, and 2022, the Loss From Discontinued Operations, net of tax on Duke Energy's Condensed Consolidated Statements of Operations includes amounts related to noncontrolling interests. A portion of Noncontrolling interests on Duke Energy's Condensed Consolidated Balance Sheets relates to discontinued operations for the periods presented. See Note 2 for discussion of discontinued operations related to the Commercial Renewables Disposal Groups.
NONCONTROLLING INTEREST
Duke Energy maintains a controlling financial interest in certain less than wholly owned subsidiaries. As a result, Duke Energy consolidates these subsidiaries and presents the third-party investors' portion of Duke Energy's net income (loss), net assets and comprehensive income (loss) as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Condensed Consolidated Balance Sheets. Operating agreements of Duke Energy's subsidiaries with noncontrolling interest allocate profit and loss based on their pro rata shares of the ownership interest in the respective subsidiary. Therefore, Duke Energy allocates net income or loss and other comprehensive income or loss of these subsidiaries to the owners based on their pro rata shares.
4342

FINANCIAL STATEMENTSORGANIZATION AND BASIS OF PRESENTATION
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 10 and 12 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.
June 30, 2023December 31, 2022
DukeDukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyDukeEnergyProgressEnergyEnergy
EnergyCarolinasEnergyProgressFlorida
Energy(a)
CarolinasEnergyProgressFlorida
Current Assets
Cash and cash equivalents$377 $20 $77 $21 $37 $409 $44 $108 $49 $45 
Other73 8 65 25 36 82 74 28 41 
Other Noncurrent Assets
Other11 1 4 4  11 — 
Total cash, cash equivalents and restricted cash$461 $29 $146 $50 $73 $502 $53 $184 $79 $86 
(a)    Certain prior year balances have been adjusted for held for sale presentation. See Note 2 for additional information.
March 31, 2024December 31, 2023
DukeDukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyDukeEnergyProgressEnergyEnergy
EnergyCarolinasEnergyProgressFloridaEnergyCarolinasEnergyProgressFlorida
Current Assets
Cash and cash equivalents$459 $5 $49 $27 $4 $253 $$59 $18 $24 
Other33 6 27 18 9 76 67 31 36 
Other Noncurrent Assets
Other17 1 10 4 7 16 
Total cash, cash equivalents and restricted cash$509 $12 $86 $49 $20 $345 $19 $135 $51 $67 
INVENTORY
Provisions for inventory write-offs were not material at June 30, 2023,March 31, 2024, and December 31, 2022.2023. The components of inventory are presented in the tables below.
June 30, 2023 March 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Materials and suppliesMaterials and supplies$2,924 $1,012 $1,359 $905 $454 $131 $372 $14 
CoalCoal850 345 251 149 102 35 219  
Natural gas, oil and other fuelNatural gas, oil and other fuel326 46 207 110 97 12 2 59 
Total inventoryTotal inventory$4,100 $1,403 $1,817 $1,164 $653 $178 $593 $73 
December 31, 2022 December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Materials and suppliesMaterials and supplies$2,604 $876 $1,232 $819 $413 $105 $342 $12 
CoalCoal620 253 190 99 91 34 144 — 
Natural gas, oil and other fuelNatural gas, oil and other fuel360 35 157 88 69 160 
Total inventoryTotal inventory$3,584 $1,164 $1,579 $1,006 $573 $144 $489 $172 
OTHER NONCURRENT ASSETS
Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of $150 million related to the arrangement in Other within Other noncurrent assets. In November 2022, Duke Energy committedassets on the Consolidated Balance Sheets as of March 31, 2024, and December 31, 2023. The asset is recorded in the EU&I segment at historical cost and is subject to a plan to sellimpairment testing should circumstances indicate the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the Electric Utilities and Infrastructure (EU&I) segment. See Notes 2 and 3 for further information.carrying value may not be recoverable.
ACCOUNTS PAYABLE
Duke Energy maintainshas a voluntary supply chain finance program (the “program”) with a global financial institution. The program is voluntary andthat allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to thea global financial institution at a rate that leverages Duke Energy’s credit rating and which may result in favorable terms compared to the rate available to the supplier on their own credit rating. Suppliers participating in the program determine at their sole discretion, which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact Duke Energy confirms invoices sold by suppliers under the program to the financial institution and pays the financial institutionEnergy’s payment terms, which are based on commercial terms negotiated between Duke Energy and the supplier regardless of program participation. Suppliers’ decisions on which invoices are sold do not impact Duke Energy’s payment terms. The commercial terms negotiated between Duke Energy and its suppliers are consistent regardless of whether the supplier elects to participate in the program. Duke Energy does not issue any guarantees with respect to the program and does not participate in negotiations between suppliers and the financial institution. Duke Energy does not have an economic interest in the supplier’s decision to participate in the program and receives no interest, fees or other benefit from the financial institution based on supplier participation in the program.
4443

FINANCIAL STATEMENTSORGANIZATION AND BASIS OF PRESENTATION
The following table represents the changes in confirmed obligations outstanding for the three and six months ended June 30, 2023,March 31, 2024, and 2022.2023.
Three months ended June 30, 2022 and 2023
DukeDuke
DukeEnergyProgressEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Confirmed obligations outstanding at the March 31, 2022$19 $$$$$$$
Invoices confirmed during the period64 12 20 12 (1)23 
Confirmed invoices paid during the period(37)(4)(18)(6)(12)(4)— (11)
Confirmed obligations outstanding at June 30, 2022$46 $$11 $$$$— $17 
Confirmed obligations outstanding at the March 31, 2023$52 $$15 $$$— $— $29 
Invoices confirmed during the period55 10 20 12 8 2  24 
Confirmed invoices paid during the period(67)(12)(21)(6)(15)  (34)
Confirmed obligations outstanding at June 30, 2023$40 $5 $14 $12 $2 $2 $ $19 
Six months ended June 30, 2022 and 2023
DukeDuke
DukeEnergyProgressEnergy
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Duke
Duke
Duke
Duke
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Confirmed obligations outstanding at the December 31, 2021$19 $— $$— $$$— $
(in millions)
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Confirmed obligations outstanding at December 31, 2022
Invoices confirmed during the periodInvoices confirmed during the period95 14 31 10 21 15 34 
Confirmed invoices paid during the periodConfirmed invoices paid during the period(68)(5)(29)(7)(22)(12)(1)(21)
Confirmed obligations outstanding at June 30, 2022$46 $$11 $$$$— $17 
Confirmed obligations outstanding at March 31, 2023
Confirmed obligations outstanding at the December 31, 2022$87 $$19 $$11 $$— $57 
Confirmed obligations outstanding at December 31, 2023
Confirmed obligations outstanding at December 31, 2023
Confirmed obligations outstanding at December 31, 2023
Invoices confirmed during the periodInvoices confirmed during the period114 20 42 23 19 3  49 
Confirmed invoices paid during the periodConfirmed invoices paid during the period(161)(21)(47)(19)(28)(6) (87)
Confirmed obligations outstanding at June 30, 2023$40 $5 $14 $12 $2 $2 $ $19 
Confirmed obligations outstanding at March 31, 2024
NEW ACCOUNTING STANDARDS
No new accounting standards were adopted by the Duke Energy Registrants in 2023.2024.
2. DISPOSITIONS
Sale of Commercial Renewables Segment
In August 2022,2023, Duke Energy announced a strategic reviewcompleted the sale of its commercial renewables business. Since 2007, Duke Energy has built a portfolio of commercial wind, solar and battery projects acrosssubstantially all the U.S., and established a development pipeline. Duke Energy has developed a strategy to focus on renewables, grid and other investment opportunities within its regulated operations. In November 2022, Duke Energy committed to a plan to sellassets in the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the EU&I segment. In June 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of Brookfield for the sale of the utility-scale solar and wind group for expected proceeds of $1.1 billion, subject to closing adjustments, with approximately half of the proceeds due at closing and the remainder due 18 months after closing. In July 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of ArcLight for the distributed generation group for expected proceeds of $259 million, subject to closing adjustments, with proceeds due at closing. Both transactions are expected to close by the end of 2023. In March 2023, assets for certain projects were removed from the utility-scale solar and wind group and placed in a separate disposal group. The disposal processesprocess for the remaining assets is ongoing and Duke Energy still expectsexpected to dispose of these assets inbe completed around midyear 2024, with net proceeds from the second half of 2023.dispositions not anticipated to be material.
Assets Held For Sale and Discontinued Operations
The utility-scale solar and wind group, the distributed generation group and the remaining assets (collectively, Commercial Renewables Disposal Groups)Groups were classified as held for sale and as discontinued operations in the fourth quarter of 2022. OriginallyNo interest from corporate level debt was allocated to discontinued operations and the related restricted cash and interest rate swaps were not expected to transfer to a buyer but during the marketing process it was determined they would be included with the sale and were classified as held for sale in March 2023. As a result, adjustments were made to the December 31, 2022, Consolidated Balance Sheet to present debt and the related restricted cash and interest rate swaps as held for sale. Nono adjustments were made to the historical activity within the Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or the Consolidated Statements of Changes in Equity. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented.
No interest from corporate level debt was allocated to discontinued operations.
4544

FINANCIAL STATEMENTSDISPOSITIONS
The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in Duke Energy's Consolidated Balance Sheets.
(in millions)(in millions)June 30, 2023December 31, 2022
(in millions)
(in millions)
Current Assets Held for SaleCurrent Assets Held for Sale
Cash and cash equivalents$28 $10 
Receivables, net124 107 
Inventory87 88 
Current Assets Held for Sale
Current Assets Held for Sale
Other
Other
OtherOther151 151 
Total current assets held for saleTotal current assets held for sale390 356 
Total current assets held for sale
Total current assets held for sale
Noncurrent Assets Held for Sale
Noncurrent Assets Held for Sale
Noncurrent Assets Held for SaleNoncurrent Assets Held for Sale
Property, Plant and EquipmentProperty, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
Cost
Cost
CostCost5,343 6,444 
Accumulated depreciation and amortizationAccumulated depreciation and amortization(1,651)(1,651)
Accumulated depreciation and amortization
Accumulated depreciation and amortization
Net property, plant and equipment
Net property, plant and equipment
Net property, plant and equipmentNet property, plant and equipment3,692 4,793 
Operating lease right-of-use assets, netOperating lease right-of-use assets, net144 140 
Investments in equity method unconsolidated affiliates509 522 
Operating lease right-of-use assets, net
Operating lease right-of-use assets, net
Other
Other
OtherOther216 179 
Total other noncurrent assets held for saleTotal other noncurrent assets held for sale869 841 
Total other noncurrent assets held for sale
Total other noncurrent assets held for sale
Total Assets Held for Sale
Total Assets Held for Sale
Total Assets Held for SaleTotal Assets Held for Sale$4,951 $5,990 
Current Liabilities Associated with Assets Held for SaleCurrent Liabilities Associated with Assets Held for Sale
Current Liabilities Associated with Assets Held for Sale
Current Liabilities Associated with Assets Held for Sale
Accounts payable
Accounts payable
Accounts payableAccounts payable$80 $122 
Taxes accruedTaxes accrued16 17 
Taxes accrued
Taxes accrued
Current maturities of long-term debtCurrent maturities of long-term debt277 276 
Current maturities of long-term debt
Current maturities of long-term debt
Unrealized losses on commodity hedges
Unrealized losses on commodity hedges
Unrealized losses on commodity hedges
Other
Other
OtherOther202 120 
Total current liabilities associated with assets held for saleTotal current liabilities associated with assets held for sale575 535 
Total current liabilities associated with assets held for sale
Total current liabilities associated with assets held for sale
Noncurrent Liabilities Associated with Assets Held for SaleNoncurrent Liabilities Associated with Assets Held for Sale
Noncurrent Liabilities Associated with Assets Held for Sale
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt
Long-Term debt
Long-Term debtLong-Term debt1,108 1,188 
Operating lease liabilitiesOperating lease liabilities153 150 
Operating lease liabilities
Operating lease liabilities
Asset retirement obligationsAsset retirement obligations197 190 
Asset retirement obligations
Asset retirement obligations
Unrealized losses on commodity hedges
Unrealized losses on commodity hedges
Unrealized losses on commodity hedges
Other
Other
OtherOther262 399 
Total other noncurrent liabilities associated with assets held for saleTotal other noncurrent liabilities associated with assets held for sale1,720 1,927 
Total other noncurrent liabilities associated with assets held for sale
Total other noncurrent liabilities associated with assets held for sale
Total Liabilities Associated with Assets Held for Sale
Total Liabilities Associated with Assets Held for Sale
Total Liabilities Associated with Assets Held for SaleTotal Liabilities Associated with Assets Held for Sale$2,295 $2,462 
As of June 30, 2023,March 31, 2024, and December 31, 2022,2023, the noncontrolling interest balance is $1.8 billion and $1.6 billion, respectively.$66 million.
The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.
Three Months EndedSix Months Ended
June 30,June 30,
(in millions)2023202220232022
Operating revenues$110 $122 $190 $243 
Operation, maintenance and other88 82177 163
Depreciation and amortization(a)
 64 128
Property and other taxes9 1119 21
Other income and expenses, net(3)(3)(7)(3)
Interest expense12 1843 37
Loss on disposal1,214 — 1,434 — 
Loss before income taxes(1,216)(56)(1,490)(109)
Income tax benefit(261)(38)(326)(76)
Loss from discontinued operations$(955)$(18)$(1,164)$(33)
Add: Net loss attributable to noncontrolling interest included in discontinued operations7 45 71 72 
Net (loss) income from discontinued operations attributable to Duke Energy Corporation$(948)$27 $(1,093)$39 
(a)    Upon meeting the criteria for assets held for sale, beginning in November 2022 depreciation and amortization expense were ceased.
46

FINANCIAL STATEMENTSDISPOSITIONS
Three Months Ended
March 31,
(in millions)20242023
Operating revenues$(6)$80 
Operation, maintenance and other4 89
Property and other taxes 10
Other income and expenses, net (4)
Interest expense2 31
(Gain) Loss on disposal(10)220 
Loss before income taxes(2)(274)
Income tax expense (benefit)1 (65)
Loss from discontinued operations$(3)$(209)
Add: Net loss attributable to noncontrolling interest included in discontinued operations 64 
Net loss from discontinued operations attributable to Duke Energy Corporation$(3)$(145)
The Commercial Renewables Disposal Groups' assets held for sale assets reflectedamounts presented above reflect pretax impairments recorded against property, plant and equipment of approximately $1.7 billion as of December 31, 2022,$268 million and an incremental pretax impairment of $220$278 million as of March 31, 2023.2024, and December 31, 2023, respectively. The final purchase and sale agreements were signed with Brookfield in June 2023 for the utility-scale solar and wind group and with ArcLight in July 2023 for the distributed generation group, and accordingly, in the second quarter of 2023, pretax impairments of approximately $1.2 billion were recorded to write-down the carrying amount of property, plant and equipment assets to the estimated fair value of the business, based on the expected selling price less estimated costs to sell. The impairments were included in Loss from Discontinued Operations, net of tax, in Duke Energy's Condensed Consolidated Statements of Operations and Comprehensive Income for the periods presented. The fair value was primarily determined from purchase and sale agreements for the utility scale and distributed generation groups and discounted cash flow analysis for the remainder of the assets. The discounted cash flow model utilized Level 2 and Level 3 inputs. The fair value hierarchy levels are further discussed in Note 11. For utility scale and distributed generation groups, the impairment will be updated, if necessary, based on customary adjustments at closing, including variances in working capital compared to target amounts and post-closing adjustments for variances in capital expenditures and third-party tax equity financing for development projects compared to target amounts. The impairment for the remaining assets will be updated, if necessary, based on market changes or the final sales prices.disposition amounts.
45

FINANCIAL STATEMENTSDISPOSITIONS
Duke Energy has elected not to separately disclose discontinued operations on Duke Energy's Consolidated Statements of Cash Flows. The following table summarizes Duke Energy's cash flows from discontinued operations related to the Commercial Renewables Disposal Groups.
Six Months Ended
June 30,
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)(in millions)20232022(in millions)20242023
Cash flows provided by (used in):
Cash flows used in:
Operating activities
Operating activities
Operating activitiesOperating activities$274 $212 
Investing activitiesInvesting activities(417)(223)
Other Sale-Related Matters
Duke Energy (Parent) and several Duke Energy renewables project companies, located in the ERCOT market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to renewablesall but one of the project companies in this matter will transfertransferred to affiliates of Brookfield andin conjunction with the plaintiffs have represented to the court that they will dismiss Duke Energy (Parent) from all cases.transaction closing in October 2023. See Note 5 for more information.
As part of the purchase and sale agreement for the distributed generation group, Duke Energy has agreed to retain certain guarantees, with expiration dates between 2029 through 2034, related to tax equity partners' assets and operations that will be disposed of via sale. Duke Energy has obtained certain guarantees from the buyers in regards to future performance obligations to assist in limiting Duke Energy's exposure under the retained guarantees. The fair value of the guarantees is immaterial as Duke Energy does not believe conditions are likely for performance under these guarantees.
3. BUSINESS SEGMENTS
Duke Energy
Due to Duke Energy's commitment in the fourth quarter of 2022 to sell the Commercial Renewables business segment, Duke Energy's segment structure now includes the following two segments: EU&I and GU&I. Prior period information has been recast to conform to the current segment structure. See Note 2 for further information on the Commercial Renewables Disposal Groups.
The EU&I segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. EU&I also includes Duke Energy's electric transmission infrastructure investments and the offshore wind contract for Carolina Long Bay. Refer to Note 2 for further information.
The GU&I segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky and Duke Energy's natural gas storage, midstream pipeline and renewable natural gas investments.
The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's ownership interest in National Methanol Company.
47

FINANCIAL STATEMENTSBUSINESS SEGMENTS
Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
Three Months Ended June 30, 2023
ElectricGasTotal
Utilities andUtilities andReportable
Three Months Ended March 31, 2024
Three Months Ended March 31, 2024
Three Months Ended March 31, 2024
Electric
Utilities and
Utilities and
Utilities and
(in millions)
(in millions)
(in millions)(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotalInfrastructureInfrastructureSegmentsOtherEliminationsTotal
Unaffiliated revenuesUnaffiliated revenues$6,232 $337 $6,569 $9 $ $6,578 
Intersegment revenuesIntersegment revenues18 22 40 25 (65) 
Total revenuesTotal revenues$6,250 $359 $6,609 $34 $(65)$6,578 
Segment income (loss)Segment income (loss)$850 $25 $875 $(161)$ $714 
Less: Noncontrolling interestsLess: Noncontrolling interests(16)
Add: Preferred stock dividendAdd: Preferred stock dividend14 
Discontinued operationsDiscontinued operations(948)
Net Loss$(204)
Net Income
Segment assets(a)
Segment assets(a)
$154,983 $16,385 $171,368 $8,708 $ $180,076 
Three Months Ended June 30, 2022
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Unaffiliated revenues$6,126 $430 $6,556 $$— $6,564 
Intersegment revenues23 32 23 (55)— 
Total revenues$6,135 $453 $6,588 $31 $(55)$6,564 
Segment income (loss)$974 $19 $993 $(126)$(1)$866 
Less: Noncontrolling interests27 
Add: Preferred stock dividend14 
Discontinued operations27 
Net Income$880 
46

FINANCIAL STATEMENTSBUSINESS SEGMENTS
Three Months Ended March 31, 2023
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Unaffiliated revenues$6,381 $888 $7,269 $$— $7,276 
Intersegment revenues17 23 40 24 (64)— 
Total revenues$6,398 $911 $7,309 $31 $(64)$7,276 
Segment income (loss)$791 $287 $1,078 $(168)$— $910 
Less: Noncontrolling interests43 
Add: Preferred stock dividend39 
Discontinued operations(145)
Net Income$761 
(a)Other includes Assets Held for Sale balances related to the Commercial Renewables Disposal Groups. Refer to Note 2 for further information.
Six Months Ended June 30, 2023
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Unaffiliated revenues$12,613 $1,225 $13,838 $16 $ $13,854 
Intersegment revenues35 45 80 49 (129) 
Total revenues$12,648 $1,270 $13,918 $65 $(129)$13,854 
Segment income (loss)$1,641 $312 $1,953 $(329)$ $1,624 
Less: Noncontrolling interests27 
Add: Preferred stock dividend53 
Discontinued operations(1,093)
Net Income$557 
48

FINANCIAL STATEMENTSBUSINESS SEGMENTS
Six Months Ended June 30, 2022
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Unaffiliated revenues$12,121 $1,439 $13,560 $15 $— $13,575 
Intersegment revenues16 46 62 46 (108)— 
Total revenues$12,137 $1,485 $13,622 $61 $(108)$13,575 
Segment income (loss)(a)
$1,697 $273 $1,970 $(297)$(1)$1,672 
Less: Noncontrolling interests64 
Add: Preferred stock dividend53 
Discontinued operations39 
Net Income$1,700 
(a)EU&I includes $211 million recorded within Impairment of assets and other charges, $46 million within Operating revenues and $20 million within Noncontrolling Interests on the Condensed Consolidated Statements of Operations related to a Duke Energy Indiana Supreme Court ruling. See Note 4 for additional information.
Duke Energy Ohio
Duke Energy Ohio has two reportable segments, EU&I and GU&I. The remainder of Duke Energy Ohio's operations is presented as Other.
Three Months Ended March 31, 2024Three Months Ended March 31, 2024
Electric
Utilities and
Utilities and
Utilities and
(in millions)
(in millions)
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Three Months Ended June 30, 2023
Total revenues
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherEliminationsTotal
Total revenues
Total revenuesTotal revenues$465 $124 $589 $ $ $589 
Segment income (loss)/Net incomeSegment income (loss)/Net income$54 $18 $72 $(1)$ $71 
Segment assetsSegment assets$7,683 $4,111 $11,794 $10 $(13)$11,791 
Segment assets
Segment assets
Three Months Ended June 30, 2022
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherTotal
Total revenues$401 $144 $545 $— $545 
Segment income/Net income$37 $19 $56 $— $56 
Six Months Ended June 30, 2023
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherTotal
Total revenues$939 $359 $1,298 $ $1,298 
Segment income (loss)/Net income$103 $70 $173 $(2)$171 
Three Months Ended March 31, 2023
Three Months Ended March 31, 2023
Three Months Ended March 31, 2023
Electric
Utilities and
Utilities and
Utilities and
(in millions)
(in millions)
(in millions)InfrastructureInfrastructureSegmentsOtherTotal
Six Months Ended June 30, 2022
Total revenues
ElectricGasTotal
Utilities andUtilities andReportable
(in millions)InfrastructureInfrastructureSegmentsOtherTotal
Total revenues
Total revenuesTotal revenues$813 $370 $1,183 $— $1,183 
Segment income (loss)/Net incomeSegment income (loss)/Net income$78 $57 $135 $(2)$133 
4. REGULATORY MATTERS
RATE-RELATED INFORMATION
The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. The FERC also regulates certification and siting of new interstate natural gas pipeline projects.
49

FINANCIAL STATEMENTSREGULATORY MATTERS
For open regulatory matters, unless otherwise noted, the Subsidiary Registrants and Duke Energy Kentucky cannot predict the outcome or ultimate resolution of their respective matters.
Duke Energy Carolinas and Duke Energy Progress
Nuclear Station Subsequent License Renewal
On June 7, 2021, Duke Energy Carolinas filed a subsequent license renewal (SLR) application for the Oconee Nuclear Station (ONS) with the U.S. Nuclear Regulatory Commission (NRC) to renew ONS’s operating license for an additional 20 years. The SLR would extend operations of the facility from 60 to 80 years. The current licenses for units 1 and 2 expire in 2033 and the license for unit 3 expires in 2034. By a Federal Register Notice dated July 28, 2021, the NRC provided a 60-day comment period for persons whose interest may be affected by the issuance of a subsequent renewed license for ONS to file a request for a hearing and a petition for leave to intervene. On September 27, 2021, Beyond Nuclear and Sierra Club (Petitioners) filed a Hearing Request and Petition to Intervene (Hearing Request) and a Petition for Waiver. The Hearing Request proposed three contentions and claimed that Duke Energy Carolinas did not satisfy the National Environmental Policy Act (NEPA) of 1969, as amended, or the NRC’s NEPA-implementing regulations. Following Duke Energy Carolinas' answer and the Petitioners' reply, on February 11, 2022, the Atomic Safety and Licensing Board (ASLB) issued its decision on the Hearing Request and found that the Petitioners failed to establish that the proposed contentions are litigable. The ASLB also denied the Petitioners' Petition for Waiver and terminated the proceeding.
47

FINANCIAL STATEMENTSREGULATORY MATTERS
On February 24, 2022, the NRC issued a decision in the SLR appeal related to Florida Power and Light's Turkey Point nuclear generating station in Florida. The NRC ruled that the NRC’s license renewal Generic Environmental Impact Statement (GEIS) does not apply to SLR because the GEIS does not address SLR. The decision overturned a 2020 NRC decision that found the GEIS applies to SLR. Although Turkey Point is not owned or operated by a Duke Energy Registrant, the NRC’s order applies to all SLR applicants, including ONS. The NRC order also indicated no subsequent renewed licenses will be issued until the NRC staff has completed an adequate NEPA review for each application. On April 5, 2022, the NRC approved a 24-month rulemaking plan that will enable the NRC staff to complete an adequate NEPA review. Although an SLR applicant may wait until the rulemaking is completed, the NRC also noted that an applicant may submit a supplement to its environmental report providing information on environmental impacts during the SLR period prior to the rulemaking being completed. On November 7, 2022, Duke Energy Carolinas submitted a supplement to its environmental report addressing environmental impacts during the SLR period. On September 14, 2023, the NRC posted on its website that the issuance of the GEIS will now be issued in August 2024 instead of May 2024 due to the volume and technical complexity of the comments received. On March 6, 2024, the NRC staff submitted the rulemaking, which included the updated GEIS, to the NRC.
On December 19, 2022, the NRC published a notice in the Federal Register that the NRC will conduct a limited scoping process to gather additional information necessary to prepare an environmental impact statement (EIS) to evaluate the environmental impacts at ONS during the SLR period. The NRC received comments from the EPA and the Petitioners and these comments identify 18 potential impacts that should be considered by the NRC in the EIS, which include, but are not limited to, climate change and flooding, environmental justice, severe accidents, and external events. Currently,On February 8, 2024, the NRC expectsissued the Oconee site-specific draft EIS. The NRC and EPA published the notice for the public to publishsubmit comments on the ONS site-specific draft EIS. On April 29, 2024, the petitioners filed a hearing request. The request proposed three contentions and claimed that the ONS site-specific draft EIS in October 2023.is inadequate to satisfy the requirements of NEPA and the NRC’s NEPA-implementing regulations. Duke Energy Carolinas' deadline to respond to any such requests was extended to May 31, 2024.
On December 19, 2022, the NRC issued the Safety Evaluation Report (SER) for the safety portion of the SLR application. The NRC determined Duke Energy Carolinas met the requirements of the applicable regulations and identified actions that have been taken or will be taken to manage the effects of aging and address time-limited analyses. Duke Energy Carolinas and the NRC met with the Advisory Committee on Reactor Safeguards (ACRS)(ACRS) on February 2, 2023, to discuss issues regarding the SER and SLR application. On February 25, 2023, the ACRS issued a report to the NRC on the safety aspects of the ONS SLR application, which concluded that the established programs and commitments made by Duke Energy Carolinas to manage age-related degradation provide confidence that ONS can be operated in accordance with its current licensing basis for the subsequent period of extended operation without undue risk to the health and safety of the public and the SLR application for ONS should be approved.
Although the NRC’s GEIS applicability decision will delayhas delayed 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, although Duke Energy Carolinas cannot guarantee the outcome of the license application process.
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. NewAccordingly, 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 these additional relicensing proceedings.
Duke Energy Carolinas
2023 North Carolina Rate Case
On January 19, 2023, Duke Energy Carolinas filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR Application includes an MYRPincluded a Multiyear rate plan (MYRP) to recover projected capital investments during the three-yearthree-year MYRP period. In addition to the MYRP, the PBR Application includesincluded an Earnings Sharing Mechanism, Residential Decoupling Mechanism and Performance Incentive Mechanisms (PIMS) as required by HB 951. The application as originally filed requested an overall retail revenue increase of $501 million in Year 1, $172 million in Year 2 and $150 million in Year 3, for a combined total of $823 million, or 15.7%, by early 2026. The rate increase is driven primarily by major transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets included in the MYRP consistent with the Carolinas Carbon Plan (Carbon Plan).
On August 22, 2023, Duke Energy Carolinas filed with the NCUC a partial settlement with the Public Staff in connection with its PBR application. The partial settlement included, among other things, agreement on a substantial portion of the North Carolina retail rate base for the historic base case of approximately $19.5 billion and intervenor testimony wasall of the capital projects and related costs to be included in the three-year MYRP, including $4.6 billion (North Carolina retail allocation) projected to go in service over the MYRP period. Additionally, the partial settlement included agreement, with certain adjustments, on depreciation rates, the recovery of grid improvement plan costs and PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application. On August 28, 2023, Duke Energy Carolinas filed on July 19, 20with the NCUC a second partial settlement with the Public Staff resolving additional issues, including the23, future treatment of nuclear production tax credits related to the Inflation Reduction Act, through a stand-alone rider that will provide the benefits to customers beginning January 1, 2025.
On December 15, 2023, the NCUC issued an order approving Duke Energy Carolinas' PBR Application, as modified by the partial settlements and the order, including an overall retail revenue increase of $436 million in Year 1, $174 million in Year 2 and $158 million in Year 3, for a combined total of $768 million. The order established an ROE of 10.1% based upon an equity ratio of 53% and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR Application and revised by the partial settlements. Duke Energy Carolinas' rebuttal testimony was filed on August 4, 2023. Duke Energy Carolinas plans to implementimplemented interim rates,rates, subject to refund, on September 1, 2023. New revised Year 1 rates and the residential decoupling were implemented on January 15, 2024.
On February 13, 2024, a number of parties filed Notices of Appeal of the December 15, 2023, NCUC order. Notices of Appeal were filed by the Carolina Industrial Group for Fair Utility Rates (CIGFUR) III, a collection of various electric membership corporations (collectively, the EMCs), and has requested permanent rates be effective by Januarythe North Carolina Attorney General’s Office (the AGO). CIGFUR III and the EMCs appealed the interclass subsidy reduction percentage and the Transmission Cost Allocation stipulation. In addition, CIGFUR III appealed the NCUC’s elimination of the equal percentage fuel cost allocation methodology. The AGO appealed several issues including the authorized ROE and certain rate design and accounting matters. On March 1, 2024. The evidentiary hearing has been scheduled to begin on August 28, 2023. Duke Energy Carolinas expects a decision on its application in this case in2024, Carolina Utility Customers Association, Inc. appealed several issues, including the fourth quarter of this year. Duke Energy Carolinas cannot predict the outcome of this matter.authorized ROE and certain rate design and accounting matters.
5048

FINANCIAL STATEMENTSREGULATORY MATTERS
2024 South Carolina Rate Case
On January 4, 2024, Duke Energy Carolinas filed a rate case with the PSCSC to request a net increase in annual retail revenues of 11.4%, or approximately $239 million, in the first two years, and an additional overall increase of about 4.1%, or approximately $84 million additional revenue, after the first two years. The requested increases, if approved, would result in an overall average 15.5% increase in annual retail revenues, or approximately $323 million, prior to mitigation efforts. Duke Energy Carolinas requested an ROE of 10.5% with an equity ratio of 53%. To mitigate the rate increase, Duke Energy Carolinas has proposed to accelerate the return of remaining federal unprotected EDIT balances to customers over two years. This offset reduces the impact to customers in the first two years to the effective net increase of 11.4% after which the credit for EDIT balances expire. Duke Energy Carolinas has requested the revised rates to be effective no later than August 1, 2024. Intervenor testimony and Duke Energy Carolinas' rebuttal testimony were filed in April 2024. The evidentiary hearing is scheduled to commence on May 20, 2024.
Marshall Combustion Turbines CPCN
On March 14, 2024, Duke Energy Carolinas filed with the NCUC an application to construct and operate two hydrogen-capable advanced-class simple-cycle combustion turbines (CTs) at the site of the existing Marshall Steam Station. The two new CTs – totaling approximately 850 MW – will enable the retirement of Marshall coal units 1 and 2 and provide incremental capacity to support system capacity needs and expanded flexibility to support integration of renewables. Pending regulatory approvals, construction is planned to start in 2026, and the CTs are targeted to be placed into service by the end of 2028. As part of the application, Duke Energy Carolinas noted that Construction Work in Progress for the proposed facility will accrue AFUDC and will not be in rate base, resulting in no impact on Duke Energy Carolinas' North Carolina retail revenue requirement during the construction period. The 2029 North Carolina retail revenue requirement for the proposed facility is estimated to be $104 million, representing an approximate average retail rate increase of 2.2% across all classes.
Duke Energy Progress
2022 North Carolina Rate Case
On October 6, 2022, Duke Energy Progress filed a PBR application with the NCUC to request an increase in base rate retail revenues. The rate request before the NCUC includesincluded an MYRP to recover projected capital investments during the three-yearthree-year MYRP period. In addition to the MYRP, the PBR Application includesincluded an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMs as required by HB 951. The overall retail revenue increase as originally filed would behave been $326 million in Year 1, $151 million in Year 2 and $138 million in Year 3, for a combined total of $615 million, or 16%, by late 2025. The rate increase is driven primarily by major transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets included in the MYRP consistent with the Carbon Plan.
On April 26, 2023, Duke Energy Progress filed with the NCUC a partial settlement with Public Staff, which included agreement on many aspects of Duke Energy Progress' three-year MYRP proposal. In May 2023, CIGFUR II joined this partial settlement and Public Staff and CIGFUR II filed a separate settlement reaching agreement on PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application.
On August 18, 2023, the NCUC issued an order approving Duke Energy Progress' PBR Application, as modified by the partial settlements and the order, including an overall retail revenue increase of $233 million in Year 1, $126 million in Year 2 and $135 million in Year 3, for a combined total of $494 million. Key aspects of the order include the approval of North Carolina retail rate base for the historic base case of approximately $12.2 billion and capital projects and related costs to be included in the three-year MYRP, including $3.5 billion (North Carolina retail allocation) projected to go in service over the MYRP period. The order established an ROE of 9.8% based upon an equity ratio of 53% and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR Application and revised by the partial settlements. Duke Energy Progress implemented interim rates, subject to refund, on June 1, 2023, and has requested permanentimplemented revised Year 1 rates be effective byand the residential decoupling on October 1, 2023.
Testimony was filed by various parties on March 27,On October 17, 2023, CIGFUR II and Duke Energy Progress rebuttal testimony was filed on April 14, 2023. On April 26, 2023, Duke Energy ProgressHaywood Electric Membership Corporation each filed a partial settlement with Public Staff, which includes agreement on many aspectsNotice of Duke Energy Progress' three-year MYRP proposal. In May 2023, the Carolina Industrial Group for Fair Utility Rates II (CIGFUR) joined this partial settlement and Public Staff and CIGFUR filed a separate settlement reaching agreement on PIMs, Tracking Metrics and the residential decoupling mechanism under the PBR application. The key unsettled issues to be determined by the NCUC include the return on equity, capital structure, recoveryAppeal of the COVID-19 cost deferral and treatment ofAugust 18, 2023 NCUC order. Both parties are appealing certain regulatory asset and liability amortizations. The evidentiary hearings began on May 4, 2023, and continued through May 16, 2023. Post-hearing briefs and proposed orders were filed on June 9, 2023. However,matters that do not impact the hearing was held open in order to allow Public Staff to complete its audit of the March 2023 capital update. On June 27, 2023, Duke Energy Progress and Public Staff filed a supplemental settlement to resolve disputed issues regarding the March capital update. The hearing was reopened on July 24, 2023, to allow the supplemental settlement into the record and to give parties an opportunity to be heard concerning the settlement and related issues. Supplemental briefing solely on these narrow issues was filed on July 31, 2023. Duke Energy Progress' proposedoverall revenue requirement in the case, as adjusted for supplemental updatesrate case. Specifically, they appealed the interclass subsidy reduction percentage, and CIGFUR II also appealed the Customer Assistance Program and the partial settlement, is $320 million in Year 1, $127 million in Year 2 and $140 million in Year 3, forequal percentage fuel cost allocation methodology. On November 6, 2023, the AGO filed a combined totalNotice of $587 million, or 15%, by late 2025. DukeCross Appeal of the NCUC's determination regarding the exclusion of electric vehicle revenue from the residential decoupling mechanism. On November 9, 2023, Duke Energy Progress, expectsthe Public Staff, CIGFUR II, and a decision onnumber of other parties reached a settlement pursuant to which CIGFUR II agreed not to pursue its application in this case inappeal of the third quarter of this year. Duke Energy Progress cannot predict the outcome of this matter.Customer Assistance Program.
2023 South Carolina Storm Securitization
On May 31, 2023, Duke Energy Progress filed a petition with the PSCSC requesting authorization for the financing of Duke Energy Progress' storm recovery costs in the amount of approximately $171 million, through securitization due to storm recovery activities required as a result of the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. On June 9,September 8, 2023, Duke Energy Progress filed a comprehensive settlement agreement with all parties on all cost recovery issues raised in the storm securitization proceeding.
The evidentiary hearing occurred in early September 2023. On September 20, 2023, the PSCSC approved the comprehensive settlement agreement and on October 13, 2023, the PSCSC issued a procedural schedule that sets the hearing date for the petition for September 6, 2023. Testimony was filedits financing order. The storm recovery bonds of $177 million were issued by various parties in July 2023. Duke Energy Progress cannot predict the outcome of this matter.
2022 South Carolina Rate Case
On September 1, 2022, Duke Eneron April 25, 202gy Progress filed an application with the PSCSC to request an increase in base rate retail revenues. On January 12, 2023,4. Duke Energy Progress implemented storm recovery charges effective May 1, 2024. See notes 6 and 12 for more information.
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FINANCIAL STATEMENTSREGULATORY MATTERS
Person County Combined Cycle CPCN
On March 28, 2024, Duke Energy Progress filed with the ORS, as well as other consumer, environmental,NCUC its application to construct and industrial intervening parties, filedoperate a comprehensive Agreement and Stipulation of Settlement resolving all issues1,360 MW hydrogen-capable, advanced-class combined-cycle generating facility (CC) in Person County at the base rate proceeding. The major componentssite of the stipulation include:
A $52 million annual customer rate increase priorexisting Roxboro Plant. Subject to negotiation of final contractual terms, the reduction fromnew Roxboro CC will be co-owned with the accelerated return to customers of federal unprotected Property, PlantNorth Carolina Electric Membership Corporation (NCEMC), with Duke Energy Progress owning approximately 1,135 MW and Equipment related EDIT. After extendingNCEMC owning the remaining EDIT giveback225 MW. Pending regulatory approvals, construction is planned to customersstart in 2026, with the CC targeted to 33 months,be placed in service by the net annualend of 2028. The CC will allow for the retirement of Roxboro’s coal-fired units 1 and 4. As part of the application, Duke Energy Progress noted that the recovery of Construction Work in Progress during the construction period for the proposed facility may be pursued in a future rate case. The 2029 North Carolina retail revenue requirement for the proposed facility is estimated to be $98 million, representing an approximate average retail rate increase is approximately $36 million.
ROE of 9.6% based on a capital structure of 52.43% equity and 47.57% debt.
Continuation of deferral treatment of coal ash basin closure costs. Supports an amortization period for remaining coal ash closure costs in this rate case of seven years. Duke Energy Progress agreed not to seek recovery of approximately $50 million of deferred coal ash expenditures related to retired sites in this rate case (South Carolina retail allocation).
Acceptance of the 2021 Depreciation Study as proposed in this case, as adjusted for certain recommendations from ORS and includes accelerated retirement dates for certain coal units as originally proposed.
Establishment of a storm reserve to help offset the costs of major storms.
The PSCSC held a hearing on January 17, 2023, to consider evidence supporting the stipulation and unanimously voted to approve the comprehensive agreement on February 9, 2023. A final written order was issued on March 8, 2023. New rates went into effect April 1, 2023.2.6% across all classes.
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”).
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FINANCIAL STATEMENTSREGULATORY MATTERS
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 structureupon an equity ratio 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%. On July 25, 2022, this provision was triggered. Duke Energy Florida filed a petition with the FPSC on August 12, 2022, to increase the ROE effective August 2022 with a base rate increase effective January 1, 2023. The FPSC approved this request on October 4, 2022. The 2021 Settlement Agreement also provided that Duke Energy Florida will be able to retain $173 million of the expected Department of Energy (DOE) award from its lawsuit to recover spent nuclear fuel to mitigate customer rates over the term of the 2021 Settlement. In return, Duke Energy Florida is permitted to recognize the $173 million into earnings through the approved settlement period. Duke Energy Florida settled the DOE lawsuit and received payment of approximately $180 million on June 15, 2022, of which the retail portion was approximately $154 million. The 2021 Settlement authorizes Duke Energy Florida to collect the difference between $173 million and the $154 million retail portion of the amount received through the capacity cost recovery clause. As of June 30, 2023,March 31, 2024, Duke Energy Florida has recognized $62$149 million into earnings.earnings, including $8 million and $54 million recognized during the three months ended March 31, 2024, and 2023, respectively. The remaining $111$24 million is expected to be recognized over the remainder of 2023 and 2024, while also remaining within the approved return on equity band.in 2024.
The 2021 Settlement also contained a provision to recover or flow back the effects of tax law changes. As a result of the IRA enacted on August 16, 2022, Duke Energy Florida is eligible for Production Tax Credits (PTCs)PTCs associated with solar facilities placed in service beginning in January 2022. Duke Energy Florida filed a petition with the FPSC on October 17, 2022, to reduce base rates effective January 1, 2023, by $56 million to flow back the expected 2023 PTCs and to flow back the expected 2022 PTCs via an adjustment to the capacity cost recovery clause. On December 14, 2022, the FPSC issued an order approving Duke Energy Florida's petition.
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 consistsconsisting 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 and the projects are expected to be completed by the end of 2024. This investment will beis included in base rates offset by the revenue from the subscription fees and 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. The Supreme Court of Florida heard oral arguments in the appeal on February 9, 2022. On May 27, 2022, the Supreme Court of Florida issued an order remanding the case back to the FPSC so that the FPSC can amend its order to better address some of the arguments raised by LULAC. On September 23, 2022, the FPSC issued a revised order and submitted it on September 26, 2022, to the Supreme Court of Florida. The Supreme Court of Florida requested that the parties file supplemental briefs regarding the revised order, which were filed February 6, 2023. LULAC has filed a request for Oral Argument on the issues discussed in the supplemental briefs, but the Courtcourt has yet to rule on that request. The FPSC approval order remains in effect pending the outcome of the appeal. Duke Energy Florida cannot predict the outcome of this matter.
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FINANCIAL STATEMENTSREGULATORY MATTERS
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 evidentiary hearing began on August 2, 2022. On October 4, 2022, the FPSC voted to approve Duke Energy Florida’s plan with one modification to remove the transmission loop radially fed program, representing a reduction of approximately $80 million over the 10-year period starting in 2025. On December 9, 2022, the OPC filed a notice of appeal of this order to the Florida Supreme Court. The OPC's initial brief was filed on April 18, 2023. Duke Energy Florida filed its answer brief on July 17, 2023. Duke EnergyThe OPC's reply brief was filed on October 16, 2023. The Florida cannot predict the outcome of this matter.Supreme Court heard oral arguments on February 7, 2024.
HurricaneHurricanes Ian and Idalia
On September 28, 2022, much of Duke Energy Florida’s service territory was impacted by Hurricane Ian, which caused significant damage resulting in more than 1.1 million outages. Duke Energy Florida's June 30, 2023 Condensed Consolidated Balance Sheets includes an estimate of approximately $357 million in regulatory assets related to deferred Hurricane Ian storm costs consistent with the FPSC's storm rule. After depleting any existing storm reserves, which were approximately $107 million before Hurricane Ian, Duke Energy Florida is permitted to petition the FPSC for recovery of additional incremental operation and maintenance costs resulting from the storm and to replenish the retail customer storm reserve to approximately $132 million. Duke Energy Florida filed its petition for cost recovery of various storms, including Hurricane Ian, and replenishment of the storm reserve on January 23, 2023, seeking recovery of $442 million, for recovery over 12 months beginning with the first billing cycle in April 2023. On March 7, 2023, the FPSC approved this request for interim recovery, subject to refund, and ordered Duke Energy Florida to file documentation of the total actual storm costs, once known. Duke Energy Florida cannot predictfiled documentation evidencing its total actual storm costs of $431 million on September 29, 2023. The FPSC will hold a final hearing to determine the outcomeprudence of these costs on May 21 and 22, 2024.
On August 30, 2023, Hurricane Idalia made landfall on Florida’s gulf coast, causing damage and impacting more than 200,000 customers across Duke Energy Florida's service territory. On October 16, 2023, Duke Energy Florida requested to combine the $92 million retail portion of the deferred estimated Hurricane Idalia costs with $74 million of costs projected to be collected after December 31, 2023, under the existing approved storm cost recovery and storm surcharge. This $74 million of costs relates primarily to the approved ongoing replenishment of the storm reserves. At its December 5, 2023 Agenda Conference, the FPSC approved recovery of the total $166 million over 12 months beginning with its first billing cycle in January 2024, replacing the previously approved storm cost recovery and storm surcharge, and ordered Duke Energy Florida to file documentation of the total actual Idalia related storm costs, once known. Revised rates were effective January 1, 2024.
2024 Florida Rate Case
On April 2, 2024, Duke Energy Florida filed a formal request for new base rates with the FPSC. Duke Energy Florida has proposed a three-year rate plan that would begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024. Duke Energy Florida proposed multiyear rate increases that use the projected 12-month periods ending December 31, 2025, 2026, and 2027 as the test years, with adjusted rates to be effective with the first billing period of January 2025, 2026, and 2027, respectively. Duke Energy Florida requested additional base rate revenue requirements of approximately $593 million in 2025, $98 million in 2026 and $129 million in 2027, representing an average annual increase in revenue requirements of approximately 4% over 2025 through 2027. Duke Energy Florida requested an ROE midpoint at 11.15% and an equity ratio of 53%. A final hearing on this matter.request is scheduled to begin on August 12, 2024.
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FINANCIAL STATEMENTSREGULATORY MATTERS
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%.million. On September 19, 2022, Duke Energy Ohio filed a Stipulation and Recommendation with the PUCO, which includes an increase in overall electric distribution base rates of approximately $23 million with an equity ratio of 50.5% and an ROE of 9.5%. The stipulation is among all but one party to the proceeding. The PUCO issued an order on December 14, 2022, approving the Stipulation without material modification. Rates went into effect on January 3, 2023. The OCCOhio Consumers' Counsel filed an application for rehearing on January 13, 2023, arguing the Stipulation was unreasonable, discriminatory, and denied OCC due process. On February 8, 2023, the PUCO granted the OCC's application for rehearing for further consideration. Duke Energy Ohio cannot predict the outcome of this matter.
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. This 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 requested 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, 2022,20, 2024, the PUCO issued its FifthSecond 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 Ohiodenying OCC's rehearing application. OCC has 60 days to submitseek an updated application with exhibits. On March 25, 2022, Duke Energy Ohio filed its Amended Application consistent with the PUCO's order.
On March 17, 2023, the Staff of the PUCO submitted its Staff Review and Recommendation. This Staff Report, like prior such reports, recommends certain disallowances related to incentives.
On March 27, 2023, the PUCO established a procedural schedule. Intervention/comments were filed on April 26, 2023, and Duke Energy Ohio filed reply comments on May 11, 2023.
Duke Energy Ohio cannot predict the outcome of this matter.appeal.
Duke Energy Ohio Natural Gas Base Rate Case
Duke Energy Ohio filed with the PUCO a natural gas base rate case application on June 30, 2022, with supporting testimony filed on July 14, 2022, requesting an increase in natural gas base rates of approximately $49 million and an ROE of 10.3%. This is an approximate 5.6% average increase in the customer's total bill across all customer classes.million. The drivers for this case are capital invested since Duke Energy Ohio's last natural gas base rate case in 2012. Duke Energy Ohio is also seekingsought to adjust the caps on its CEP rider. The report of the Staff of the PUCO was issued on December 21, 2022, recommending an increase in natural gas base rates of $24 million to $36 million, with an equity ratio of 52.32% and an ROE range of 9.03% to 10.04%. On April 28, 2023, Duke Energy Ohio filed a stipulation with all parties to the case except the OCC. In the stipulation, the parties agreed to approximately $32 million in revenue increases with an equity ratio of 52.32% and an ROE of 9.6%, and adjustments to the CEP Rider caps. The stipulation was opposed by the OCC at an evidentiary hearing that concluded on May 24, 2023. Initial briefs were filed June 16,On November 1, 2023, and reply briefs were filed on July 14, 2023. The record in this case is now complete andPUCO issued an order is anticipated inapproving the third quarterstipulation as filed. New rates went into effect November 1, 2023. On December 1, 2023, the OCC filed an application for rehearing. On December 13, 2023, the PUCO granted OCC's application for rehearing for further consideration of this year. issues raised.
Duke Energy Ohio cannot predictElectric Security Plan
On April 1, 2024, Duke Energy Ohio filed with the outcomePUCO a request for an Electric Security Plan (ESP). The ESP application proposes a three-year term from June 1, 2025 through May 31, 2028 and includes continuation of this matter.market-based customer rates through competitive procurement processes for generation and continuation and expansion of existing rider mechanisms. Duke Energy Ohio is proposing a new rider mechanism relating to electric distribution infrastructure modernization programs, which may be enabled by and partially funded through federal or state funding opportunities, future battery storage projects, and two proposed electric vehicle programs. Additional proposed new rider mechanisms are related to solar for all investments for low-income and disadvantaged communities, low-income senior citizen bill assistance, and energy efficiency and demand-side management programs.
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FINANCIAL STATEMENTSREGULATORY MATTERS
Duke Energy Kentucky Electric Base Rate Case
On December 1, 2022, Duke Energy Kentucky filed a rate case with the KPSC requesting an annualized increase in electric base rates of approximately $75 million and an ROE of 10.35%. This is an overall increase in rates of approximately 17.8%.million. The request for rate increase iswas driven by capital investments to strengthen the electricity generation and delivery systems along with adjusted depreciation rates for the East Bend and Woodsdale Combustion Turbine (CT) generation stations. Duke Energy Kentucky is also requestingrequested approval for new programs for the benefit of customers and tariff updates, including a voluntary community-based renewable subscription program and two electric vehicle charging programs. Intervenor testimonyThe KPSC issued an order on October 12, 2023, including a $48 million increase in base revenues, an ROE of 9.75% for electric base rates and 9.65% for electric riders and an equity ratio of 52.145%. New rates went into effect October 13, 2023. The Company's request to align the depreciation rates of East Bend with a 2035 retirement date was denied and the KPSC ordered depreciation rates with a 2041 retirement date for the unit. The KPSC did approve the request to align the depreciation rates of Woodsdale CT with a 2040 retirement date and denied the voluntary community-based renewable subscription program and the two electric vehicle charging programs.
On November 1, 2023, Duke Energy Kentucky filed March 10,for rehearing requesting certain matters be reconsidered by the KPSC. On November 21, 2023, KPSC granted in part and rebuttal testimonydenied in part the Company's request for rehearing. On February 15, 2024, the KPSC issued a briefing schedule for the rehearing process. The briefing concluded on April 1, 2024, and the matter was submitted for decision on April 2, 2024.
On December 14, 2023, Duke Energy Kentucky filed April 14, 2023. Thean appeal with the Franklin County Circuit Court on certain matters for which the KPSC denied rehearing, specifically as it relates to including decommissioning costs in depreciation rates for East Bend and Woodsdale. On January 8, 2024, answers to the appeal were filed by the KPSC, Kentucky Attorney General, recommended an increase of $31 million and an ROE of 9.55%. An evidentiary hearing concluded on Maythe Kentucky Broadband & Cable Association. On April 11, 2023,2024, the Franklin County Circuit Court approved a briefing schedule with simultaneous briefs filed June 9, 2023, and replies filed on June 19, 2023. The record in this case is now complete and an order is expected in the third quarter of this year. Duke Energy Kentucky cannot predict the outcome of this matter.Kentucky's initial brief due June 26, 2024, appellee briefs due September 24, 2024, and Duke Energy Kentucky's reply brief due November 8, 2024.
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FINANCIAL STATEMENTSREGULATORY MATTERS
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. 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% was 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 estimated to be the remaining 25% of the total rate increase were approved on July 28, 2021, and implemented in August 2021.
Several groups appealed the IURC order to the Indiana Court of Appeals. The Indiana Court of Appeals affirmed the IURC decision on May 13, 2021. However, upon appeal by the Indiana Office of Utility Consumer Counselor (OUCC) and the Duke Industrial Group on March 10, 2022, the Indiana Supreme Court found 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, which the court denied on May 26, 2022. Duke Energy Indiana filed its testimony in the remand proceeding on August 18, 2022. On February 3, 2023, Duke Energy Indiana filed a settlement agreement reached with the OUCC and Duke Industrial Group, which includes an agreed amount of approximately $70 million of refunds to be paid to customers. The IURC approved this settlement agreement in its entirety on April 12, 2023. In June of 2023, Duke Energy Indiana commenced refunding the approximate $70 million to customers in accordance with the settlement agreement.
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 and the Duke Industrial Group appealed. The Indiana Court of Appeals issued its opinion on February 21, 2023, reversing the IURC's order to the extent that it allowed Duke Energy Indiana to recover federally mandated costs incurred prior to the IURC's November 3, 2021 order. In addition, the court found that any costs incurred pre-petition to determine federally mandated compliance options were not specifically authorized by the statute and should also be disallowed. As a result
In the second quarter of the Court's opinion,2023, Duke Energy Indiana recognized a pretax charge of approximately $175 million to Impairment of assets and other charges for the year ended December 31, 2022. Duke Energy Indiana has filed its proposal to remove from rates certain costs incurred prior to the IURC's November 3, 2021 order date. On September 20, 2023, the commission approved the Company's proposal to remove the costs from its rates and assessed simple interest of the refunds of 4.71%, beginning from when the costs were initially recovered from customers. Duke Energy Indiana seeks to recover the pre-order costs denied by the Indiana Court of Appeals and certain future coal ash closure costs as part of depreciation costs in the 2024 Indiana Rate Case.
Duke Energy Indiana filed a new petition under the amended version of the federal mandate statute for additional post-2018 coal ash closure costs for the remaining basins not included in the Indiana coal ash recovery case from 2020. An evidentiary hearing is scheduled for August 9, 2023. Duke Energy Indiana cannot predict the outcome of this matter.was held on January 25, 2024.
TDSIC 2.0
On November 23, 2021, Duke Energy Indiana filed for approval of the Transmission, Distribution, Storage Improvement Charge 2.0 investment plan for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without modification, TDSIC 2.0, which includes approximately $2 billion in transmission and distribution investments selected to improve customer reliability, harden and improve resiliency of the grid, enable expansion of renewable and distributed energy projects and encourage economic development. In addition, the IURC set up a subdocket to consider thea targeted economic development project, which the IURC approved on March 2, 2022. On July 15, 2022, the OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy Indiana’s TDSIC 2.0 proceeding. An appellant brief was filed on October 28, 2022, and Duke Energy Indiana filed its responsive brief on December 28, 2022. The Indiana Court of Appeals issued its opinion on March 9, 2023, affirming the IURC’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the Indiana Supreme Court. The Indiana Supreme Court granted transfer and scheduledheld an oral argument foron September 28, 2023.
2024 Indiana Rate Case
On April 4, 2024, Duke Energy Indiana cannot predictfiled an application with the outcomeIURC for a rate increase of this matter.
Piedmont
Tennessee Annual Review Mechanism
On October 10, 2022,$492 million, representing an overall average bill increase of approximately 16.2%, which, if approved, would be added to retail customer bills in two steps, approximately 11.7% in 2025 and approximately 4.5% in 2026. Duke Energy Indiana requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by $1.6 billion in investments made since the TPUC approved Piedmont’s petitionlast general rate case filed in 2019 in order to adopt an Annual Review Mechanism (ARM) as allowed by Tennessee law. Under the ARM, Piedmont will adjust rates annually to achieve its allowed 9.80% ROE over the upcoming year and to true up any variance between its allowed ROE and actual ROE from the prior calendar year. The initial year subject to the true up is 2022, and Piedmont filed the initial rate adjustments request on May 19, 2023, for rates effective October 1, 2023. The current hearing date is set for September 11, 2023, and Piedmont and the Consumer Advocate Divisionreliably serve customers, improve resiliency of the Tennessee Attorney General's office have agreedsystem, and advance environmental sustainability. An evidentiary hearing is scheduled to both a Joint Proposed Protective Order and Joint Proposed Procedural Schedule, both filed with Piedmont's ARM filing.begin August 29, 2024.
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FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIESREGULATORY MATTERS
Piedmont
2024 North Carolina Rate Case
On April 1, 2024, Piedmont filed an application with the NCUC for a rate increase for retail customers of approximately $159 million, which represents a 12.5% increase in retail revenues. Piedmont requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by significant infrastructure upgrade investments since the last general rate case, offset by lower fixed natural gas costs and remaining federal and state tax reform savings to be received by customers. Approximately 40% of the plant additions being rolled into rate base are categories of plant investment that are covered under the IMR mechanism, which was originally approved as part of the 2013 North Carolina Rate Case. Piedmont plans to implement revised interim rates by November 1, 2024.
5. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all Duke Energy Registrants.
Remediation Activities
In addition to AROs recorded as a result of various environmental regulations, the Duke Energy Registrants are responsible for environmental remediation at various sites. These include certain properties that are part of ongoing operations and sites formerly owned or used by Duke Energy entities. These sites are in various stages of investigation, remediation and monitoring. Managed in conjunction with relevant federal, state and local agencies, remediation activities vary based on site conditions and location, remediation requirements, complexity and sharing of responsibility. If remediation activities involve joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for environmental impacts caused by other potentially responsible parties and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. Liabilities are recorded when losses become probable and are reasonably estimable. The total costs that may be incurred cannot be estimated because the extent of environmental impact, allocation among potentially responsible parties, remediation alternatives and/or regulatory decisions have not yet been determined at all sites. Additional costs associated with remediation activities are likely to be incurred in the future and could be significant. Costs are typically expensed as Operation, maintenance and other on the Condensed Consolidated Statements of Operations unless regulatory recovery of the costs is deemed probable.
The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Accounts Payable within Other Current Liabilities and Other within Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets.
(in millions)(in millions)June 30, 2023December 31, 2022
(in millions)
(in millions)
Reserves for Environmental Remediation
Reserves for Environmental Remediation
Reserves for Environmental RemediationReserves for Environmental Remediation
Duke EnergyDuke Energy$92 $84 
Duke Energy
Duke Energy
Duke Energy Carolinas
Duke Energy Carolinas
Duke Energy CarolinasDuke Energy Carolinas23 22 
Progress EnergyProgress Energy23 19 
Progress Energy
Progress Energy
Duke Energy Progress
Duke Energy Progress
Duke Energy ProgressDuke Energy Progress11 
Duke Energy FloridaDuke Energy Florida11 11 
Duke Energy Florida
Duke Energy Florida
Duke Energy Ohio
Duke Energy Ohio
Duke Energy OhioDuke Energy Ohio36 33 
Duke Energy IndianaDuke Energy Indiana2 
Duke Energy Indiana
Duke Energy Indiana
PiedmontPiedmont8 
Piedmont
Piedmont
Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation and monitoring for environmental sites that have been evaluated at this time are not material.
LITIGATION
For open litigation, unless otherwise noted, Duke Energy and the Subsidiary Registrants cannot predict the outcome or ultimate resolution of their respective matters.
Duke Energy
Texas Storm Uri Tort Litigation
Duke Energy (Parent), several Duke Energy renewables project companies, and others in the ERCOT market were named in multiple lawsuits arising out of Texas Storm Uri, which occurred in February 2021. These lawsuits seek recovery for property damages,damage, personal injury and wrongful death allegedly caused by the power outages that plaintiffs claim were the collective failure of generators including Duke Energy entities, transmission and distribution operators (TDUs), retail energy providers, and all others, including ERCOT. The cases were consolidated into a Texas state court multidistrict litigation (MDL) proceeding for discovery and pre-trial motions. Five MDL cases were designated as lead cases in which motions to dismiss were filed and all other cases were stayed.
53

FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES
On January 28, 2023, the Courtcourt denied certain motions including those by the generator defendants and TDUs and granted others. The generators and TDUs filed separate petitions for Writ of Mandamus to the Texas Court of Appeals seeking to overturn the denials. The TDUs' petition, filed first, was accepted and is set for oral argument in Augustwas held on October 23, 2023. The generators’ petition has not yet been set for argument. AfterIn the rulings oncases against the motions to dismiss,generators, plaintiffs filed new lawsuitshave dismissed the claims against Duke Energy (Parent), Duke Energy Renewables, LLC, and several Duke Energy renewable entities, which are included in the MDL proceeding and are currently stayed. The plaintiffs have represented to the court that they will dismiss. However, before Duke Energy (Parent) was dismissed from all cases. Ducases, on December 14, 2023, without argument, the Court of Appeals accepted mandamus of the generator defendants’ apkepeal, which includes all Duke Energy cannot predictentities, and directed the MDL court to dismiss all claims. Plaintiffs filed their Petition for Reconsideration on January 29, 2024, and the generator defendants responded on May 6, 2024. Regardless of the outcome of any motion for reconsideration or appeal, claims against Duke Energy (Parent) will remain dismissed. In October 2023, in conjunction with the closing of the sale of the utility-scale solar and wind group, all but one of the project company lawsuits transferred to Brookfield. Based on legal proceedings to date and applicable insurance and reinsurance coverage, Duke Energy (Parent) does not anticipate any material financial impacts with this matter. remaining case. See Note 2 for more information related to the sale of the Commercial Renewables Disposal Groups.
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. The lawsuit alleges that Duke Energy Carolinas knew that the river was used for recreational purposes, did not adequately warn about the dam, and created a dangerous and hidden hazard on the Dan River by building and maintaining the low-head dam. Duke Energy Carolinas has reached an agreement that will resolve this matter to the parties' mutual satisfaction. The resolution, which did not have a material financial impact, has been approved by the Durham County Superior Court. The case was dismissed on June 6, 2023.
55

FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES
NTE Carolinas II, LLC Litigation
In November 2017, Duke Energy Carolinas entered into a standard FERC large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC (NTE), a company that proposed to build a combined-cycle natural gas plant in Rockingham County, North Carolina. On September 6, 2019, Duke Energy Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for breach of contract, alleging that NTE's failure to pay benchmark payments for Duke Energy Carolinas' transmission system upgrades required under the interconnection agreement constituted a termination of the interconnection agreement. Duke Energy Carolinas sought a monetary judgment against NTE because NTE failed to make multiple milestone payments. The lawsuit was moved to federal court in North Carolina. NTE filed a motion to dismiss Duke Energy Carolinas’ complaint and brought counterclaims alleging anti-competitive conduct and violations of state and federal statutes. Duke Energy Carolinas filed a motion to dismiss NTE's counterclaims. Both NTE's and Duke Energy Carolinas' motions to dismiss were subsequently denied by the court.
On May 21, 2020, in response to a NTE petition challenging Duke Energy Carolinas' termination of the LGIA, FERC issued a ruling that 1) it has exclusive jurisdiction to determine whether a transmission provider may terminate aan LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected to by the interconnection customer; and 3) Duke Energy may not announce the termination of a conforming LGIA unless FERC has approved the termination. FERC's Office of Enforcement also initiated an investigation of Duke Energy Carolinas into matters pertaining to the LGIA. On April 6, 2023, Duke Energy Carolinas received notice from the FERC Office of Enforcement that they have closed their non-public investigation with no further action recommended.
Following completion of discovery, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the court issued an order partially granting Duke Energy Carolinas' motion by dismissing NTE's counterclaims that Duke Energy Carolinas engaged in anti-competitive behavior in violation of state and federal statutes. On October 12, 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation and a Stipulation of Dismissal was filed with the court on October 13, 2022. On November 11, 2022, NTE filed its Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit as to the District Court's summary judgment ruling in Duke Energy Carolinas' favor on NTE's antitrust and unfair competition claims. Briefing on NTE's appeal was completed on June 30, 2023. Duke Energy Carolinas cannot predict the outcome of this matter.Oral argument is scheduled for May 7, 2024.
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 $446$417 million at June 30, 2023,March 31, 2024, and $457$423 million at December 31, 2022.2023. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Condensed Consolidated Balance Sheets. These reserves are based on Duke Energy Carolinas' best estimate for current and future asbestos claims through 20422043 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 20422043 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 $595$572 million at March 31, 2024, a June 30, 2023, and atnd December 31, 2022.2023. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Condensed Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.
The reserve for credit losses for insurance receivables is $12$9 million as of March 31, 2024, and December 31, 2023, for both Duke Energy and Duke Energy Carolinas as of June 30, 2023, and December 31, 2022.Carolinas. The insurance receivable is evaluated based on the risk of default and the historical losses, current conditions and expected conditions around collectability. Management evaluates the risk of default annually based on payment history, credit rating and changes in the risk of default from credit agencies.
54

FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES
Duke Energy Indiana
Coal Ash Insurance Coverage Litigation
In June 2022, Duke Energy Indiana filed a civil action in Indiana Superior Court against various insurance companies seeking declaratory relief with respect to insurance coverage for coal combustion residuals-related expenses and liabilities covered by third-party liability insurance policies. The insurance policies cover the 1969-1972 and 1984-1985 periods and provide third-party liability insurance for claims and suits alleging property damage, bodily injury and personal injury (or a combination thereof). A trial date has not yet been set. On June 30, 2023, Duke Energy Indiana and Associated Electric and Gas Insurance Services (AEGIS) reached a confidential settlement, the results of which were not material to Duke Energy, and as a result, AEGIS was dismissed from the litigation on July 13, 2023. On December 11, 2023, Duke Energy Indiana and Munich Reinsurance America, Inc. (formerly known as American Re-Insurance Company) (AmRe) reached a confidential settlement, the results of which were not material, and AmRe was dismissed from the litigation on January 18, 2024. The lawsuit remains pending as to the other insurers but is stayed until October 21, 2023, June 14, 2024, to allow for further settlement negotiations. Duke Energy Indiana cannot predict the outcome of this matter.negotiations with other defendants.
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.
56

FINANCIAL STATEMENTSCOMMITMENTS AND CONTINGENCIES
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.
6. DEBT AND CREDIT FACILITIES
DebtIn April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 9 for additional information.
In April 2024, Duke Energy Florida issued $173 million of First Mortgage Bonds due April 2074, with an interest rate of SOFR minus 35 basis points. Proceeds were used to pay down a portion of the DEFR accounts receivable securitization facility maturing in April 2024, and for general company purposes. The terms of the indenture could require repayment in less than 12 months if exercised by the bondholders and, as such, these first mortgage bonds will be classified as Current maturities of long-term debt on the Condensed Consolidated Balance Sheets.
In April 2024, Duke Energy Progress issued $177 million of storm recovery bonds at an interest rate of 5.404%. Proceeds were used to finance the South Carolina portion of restoration expenditures related to the Commercial Renewables Disposal Groups is now classified as heldfollowing storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. See notes 4 and 12 for sale and is excluded from the following disclosures. See Note 2 for furthermore information.
55

FINANCIAL STATEMENTSDEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions).
Six Months Ended June 30, 2023
DukeDukeDukeDukeDuke
MaturityInterestDukeEnergyEnergyEnergyEnergyEnergy
Issuance DateDateRateEnergy(Parent)CarolinasProgressOhioIndianaPiedmont
Unsecured Debt
April 2023(a)
April 20264.125 %$1,725 $1,725 $ $ $ $ $ 
June 2023(b)
June 20335.400 %350      350 
First Mortgage Bonds
January 2023(c)
January 20334.950 %900  900     
January 2023(c)
January 20535.350 %900  900     
March 2023(d)
March 20335.250 %500   500    
March 2023(d)
March 20535.350 %500   500    
March 2023(e)
April 20335.250 %375    375   
March 2023(e)
April 20535.650 %375    375   
March 2023(f)
April 20535.400 %500     500  
June 2023(g)
January 20334.950 %350  350     
June 2023(g)
January 20545.400 %500  500     
Total issuances$6,975 $1,725 $2,650 $1,000 $750 $500 $350 
Three Months Ended March 31, 2024
DukeDukeDukeDukeDuke
MaturityInterestDukeEnergyEnergyEnergyEnergyEnergy
Issuance DateDateRateEnergy(Parent)CarolinasProgressOhioIndiana
Unsecured Debt
January 2024(a)
January 20274.85 %$600 $600 $ $ $ $ 
January 2024(a)
January 20294.85 %650 650     
First Mortgage Bonds
January 2024(b)
January 20344.85 %$575 $ $575 $ $ $ 
January 2024(b)
January 20545.40 %425  425    
March 2024(b)
March 20345.25 %300     300 
March 2024(c)
March 20345.10 %500   500   
March 2024(d)
March 20545.55 %425    425  
Total issuances$3,475 $1,250 $1,000 $500 $425 $300 
(a)See "Duke Energy (Parent) Convertible Senior Notes"below for additional information.
(b)Proceeds will bewere used to repay $45 million of maturitiesthe remaining $1 billion outstanding on Duke Energy (Parent)'s variable rate Term Loan Facility due October 2023, toMarch 2024, pay down a portion of short-term debt and for general corporate purposes. Duke Energy (Parent)'s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.
(c)Proceeds were used to repay $1 billion of maturities due March 2023, to pay down a portion of short-term debt and for general company purposes.
(d)Proceeds will be used to repay $300 million of maturities due September 2023, to pay down a portion of short-term debt and for general company purposes.
(e)Proceeds will be used to repay $300 million of maturities due September 2023 and a portion of the $100 million term loan due October 2023. Remaining proceeds will be used to repay a portion of short-term debt and for general corporate purposes.
(f)Proceeds were used to repay the $300 million term loan due October 2023. Remaining proceeds will be used to repay a portion of short-term debt and for general company purposes.
(g)(b)Proceeds were used to pay down a portion of short-term debt and for general company purposes.
Duke Energy (Parent) Convertible Senior Notes
In April 2023, Duke Energy (Parent) completed the sale of $1.7 billion 4.125% Convertible Senior Notes due April 2026 (convertible notes). The convertible notes are senior unsecured obligations of Duke Energy, and will mature on April 15, 2026, unless earlier converted or repurchased in accordance with their terms. The convertible notes bear interest at a fixed rate of 4.125% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2023. (c)Proceeds were used to repayfund eligible green energy projects, pay down a portion of outstanding commercial papershort-term debt and for general company purposes.
(d)Proceeds were used to pay down a portion of short-term debt and for general corporate purposes.
57

FINANCIAL STATEMENTSDEBT AND CREDIT FACILITIES
Prior to the close of business on the business day immediately preceding January 15, 2026, the convertible notes will be convertible at the option of the holders when the following conditions are met:
during any calendar quarter commencing after the calendar quarter ending on June 30, 2023 (and only during such calendar quarter), if the last reported sale price of Duke Energy common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
during the five consecutive business day period after any ten consecutive trading day period (the measurement period) in which the trading price, as defined, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Duke Energy common stock and the conversion rate on each such trading day; or
upon the occurrence of specified corporate events described in the indenture agreement.
On or after January 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the convertible notes may convert all or any portion of their convertible notes at their option at any time at the conversion rate then in effect, irrespective of these conditions. Duke Energy will settle conversions of the convertible notes by paying cash up to the aggregate principal amount of the convertible notes to be converted and paying or delivering, as the case may be, cash, shares of Duke Energy's common stock, $0.001 par value per share, or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the convertible notes being converted.
The conversion rate for the convertible notes is initially 8.4131 shares of Duke Energy's common stock per $1,000 principal amount of convertible notes. The initial conversion price of the convertible notes represents a premium of approximately 25% over the last reported sale price of Duke Energy’s common stock on the NYSE on April 3, 2023. The conversion rate and the corresponding conversion price will not be adjusted for any accrued and unpaid interest but will be subject to adjustment in some instances, such as stock splits or share combinations, certain distributions to common stockholders, or tender offers at off-market rates. The changes in the conversion rates are intended to make convertible note holders whole for changes in the fair value of Duke Energy common stock resulting from such events. Duke Energy may not redeem the convertible notes prior to the maturity date.
Duke Energy issued the convertible notes pursuant to an indenture, dated as of April 6, 2023, by and between Duke Energy and The Bank of New York Mellon Trust Company, N.A., as trustee. The terms of the convertible notes include customary fundamental change provisions that require repayment of the notes with interest upon certain events, such as a stockholder approved plan of liquidation or if Duke Energy's common stock ceases to be listed on the NYSE.
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)(in millions)Maturity DateInterest RateJune 30, 2023(in millions)Maturity DateInterest RateMarch 31, 2024
Unsecured DebtUnsecured Debt
Duke Energy Ohio(a)
October 20235.546 %$150 
Duke Energy (Parent)October 20233.950 %400 
Duke Energy (Parent) Term Loan Facility(a)
March 20245.645 %1,000 
Duke Energy (Parent)April 20243.750 %1,000 
Duke Energy Florida(a)
April 20245.921 %800 
Duke Energy (Parent)
Duke Energy (Parent)
Duke Energy (Parent)
Secured Debt
Secured Debt
Secured Debt
Duke Energy Florida(a)
Duke Energy Florida(a)
Duke Energy Florida(a)
Duke Energy Florida(a)
Duke Energy Carolinas(a)
First Mortgage BondsFirst Mortgage Bonds
Duke Energy ProgressSeptember 20233.375 %300 
Duke Energy OhioSeptember 20233.800 %300 
Other(b)
659 
Duke Energy Florida(b)
Duke Energy Florida(b)
Duke Energy Florida(b)
Other(c)
Other(c)
Other(c)
Current maturities of long-term debtCurrent maturities of long-term debt$4,609 
(a)Debt has a floating interest rate. In April 2024, Duke Energy Florida repaid the $325 million in total borrowings outstanding under the DEFR accounts receivable securitization facility maturing in April 2024 and terminated the facility. See Note 12 for additional information.
(b)While final maturity is October 2073, these first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets, based on terms of the indenture, which could require repayment in less than 12 months if exercised by the bondholders.
(c)Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2023,2024, Duke Energy amendedextended the termination date of its existing $9 billion Master Credit Facility of $9 billion to extend the termination date to March 2028.2029. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. An amendment in conjunction with the issuance of the Convertible Senior Notes due April 2026 clarifies that payments due as a result of a conversion of a convertible note would not constitute an event of default.
5856

FINANCIAL STATEMENTSDEBT AND CREDIT FACILITIES
The table below includes the current borrowing sublimits and available capacity under these credit facilities.
June 30, 2023
DukeDukeDukeDukeDukeDuke
DukeEnergyEnergyEnergyEnergyEnergyEnergy
March 31, 2024March 31, 2024
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)Energy(Parent)CarolinasProgressFloridaOhioIndianaPiedmontEnergy(Parent)CarolinasProgressFloridaOhioIndianaPiedmont
Facility size(a)
Facility size(a)
$9,000 $2,275 $2,025 $900 $1,350 $700 $950 $800 
Reduction to backstop issuancesReduction to backstop issuances
Commercial paper(b)
Commercial paper(b)
Commercial paper(b)
Commercial paper(b)
(3,143)(837)(829)(150)(759)(132)(341)(95)
Outstanding letters of creditOutstanding letters of credit(39)(27)(4)(1)(7)   
Tax-exempt bondsTax-exempt bonds(81)     (81) 
Available capacity under the Master Credit FacilityAvailable capacity under the Master Credit Facility$5,737 $1,411 $1,192 $749 $584 $568 $528 $705 
Available capacity under the Master Credit Facility
Available capacity under the Master Credit Facility
(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
InOn March 2022,26, 2024, Duke Energy (Parent) entered into a Term Loan Credit Agreement (Credit Agreement)364-day term loan facility with commitments totaling $1.4 billion maturing March 2024. The maturity$700 million. Any undrawn commitments could be drawn up until April 25, 2024 (30 days after the effective date of the Credit Agreement mayagreement) or are otherwise ineligible to be extended for up to two years by request of Duke Energy (Parent), upon satisfaction of certain conditions contained in the Credit Agreement. Borrowingsdrawn. On April 24, 2024, $500 million was drawn under the facility werewith borrowings used to repay amounts drawn under the Three-Year Revolving Credit Facility and for general corporate purposes, including repaymentpurposes. Borrowings can be prepaid at any time throughout the term of a portionthe facility. The terms and conditions of the facility are generally consistent with those governing Duke Energy's outstanding commercial paper. The balance is classified as Current maturities of long-term debt on Duke Energy's Condensed Consolidated Balance Sheets.
In March 2023, Duke Energy amended its existingMaster Credit Agreement in conjunction with the issuance of the Convertible Senior Notes due April 2026 to clarify that payments due as a result of a conversion of a convertible note would not constitute an event of default.Facility.
7. GOODWILL
Duke Energy
Duke Energy's Goodwill balance of $19.3 billion is allocated $17.4 billion to EU&I and $1.9 billion to GU&I on Duke Energy's Condensed Consolidated Balance Sheets at June 30, 2023,March 31, 2024, and December 31, 2022.2023. There are no accumulated impairment charges.
Duke Energy Ohio
Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to EU&I and $324 million to GU&I, is presented net of accumulated impairment charges of $216 million on the Condensed Consolidated Balance Sheets at June 30, 2023,March 31, 2024, and December 31, 2022.2023.
Progress Energy
Progress Energy's Goodwill is included in the EU&I segment and there are no accumulated impairment charges.
Piedmont
Piedmont's Goodwill is included in the GU&I segment and there are no accumulated impairment charges.
5957

FINANCIAL STATEMENTSRELATED PARTY TRANSACTIONS
8. 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 transactionsTransactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
(in millions)
(in millions)
(in millions)(in millions)2023202220232022
Duke Energy CarolinasDuke Energy Carolinas
Duke Energy Carolinas
Duke Energy Carolinas
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$192 $191 $388 $397 
Indemnification coverages(b)
Indemnification coverages(b)
8 17 14 
Joint Dispatch Agreement (JDA) revenue(c)
8 12 21 38 
Indemnification coverages(b)
Indemnification coverages(b)
JDA revenue(c)
JDA revenue(c)
JDA revenue(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
34 173 63 267 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
4 9 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Progress Energy
Progress Energy
Progress EnergyProgress Energy
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$172 $184 $350 $380 
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
12 11 24 22 
JDA revenue(c)
JDA revenue(c)
34 173 63 267 
JDA revenue(c)
JDA revenue(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
8 12 21 38 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
18 19 37 38 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Duke Energy Progress
Duke Energy Progress
Duke Energy ProgressDuke Energy Progress
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$104 $108 $211 $227 
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
5 10 10 
JDA revenue(c)
JDA revenue(c)
34 173 63 267 
JDA revenue(c)
JDA revenue(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)
8 12 21 38 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
18 19 37 38 
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Duke Energy Florida
Duke Energy Florida
Duke Energy FloridaDuke Energy Florida
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$68 $76 $139 $153 
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
7 14 12 
Duke Energy OhioDuke Energy Ohio
Duke Energy Ohio
Duke Energy Ohio
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$76 $82 $149 $164 
Indemnification coverages(b)
Indemnification coverages(b)
2 3 
Indemnification coverages(b)
Indemnification coverages(b)
Duke Energy Indiana
Duke Energy Indiana
Duke Energy IndianaDuke Energy Indiana
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$84 $91 $183 $215 
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
Indemnification coverages(b)
2 4 
PiedmontPiedmont
Piedmont
Piedmont
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
Corporate governance and shared service expenses(a)
$37 $37 $75 $72 
Indemnification coverages(b)
Indemnification coverages(b)
1 2 
Indemnification coverages(b)
Indemnification coverages(b)
Intercompany natural gas sales(d)
Intercompany natural gas sales(d)
Intercompany natural gas sales(d)
Intercompany natural gas sales(d)
22 24 46 47 
Natural gas storage and transportation costs(e)
Natural gas storage and transportation costs(e)
6 12 11 
Natural gas storage and transportation costs(e)
Natural gas storage and transportation costs(e)
(a)The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other and Impairment of assets and other charges on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(b)The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(c)Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(d)Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating Revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income.
(e)Piedmont has related party transactions as a customer of its equity method investments in Pine Needle LNG Company, LLC, Hardy Storage Company, LLC and Cardinal Pipeline Company, LLC natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Condensed Consolidated Statements of Operations and Comprehensive Income.
6058

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 12, certain trade receivables have beenwere previously sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables arewere largely cash but do includeincluded a subordinated note from CRC for a portion of the purchase price. In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility.
Intercompany Income Taxes
Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.
DukeDuke
EnergyProgressEnergy
Duke
Energy
Energy
Energy
(in millions)(in millions)CarolinasEnergyProgressFloridaOhioIndianaPiedmont
June 30, 2023
(in millions)
(in millions)CarolinasEnergyProgressFloridaOhioIndianaPiedmont
March 31, 2024
Intercompany income tax receivable
Intercompany income tax receivable
Intercompany income tax receivableIntercompany income tax receivable$ $ $ $ $2 $ $24 
Intercompany income tax payableIntercompany income tax payable89 50 28 95  26  
December 31, 2022
December 31, 2023
December 31, 2023
December 31, 2023
Intercompany income tax receivable
Intercompany income tax receivable
Intercompany income tax receivableIntercompany income tax receivable$— $95 $36 $17 $— $— $— 
Intercompany income tax payableIntercompany income tax payable37 — — — 17 18 38 
9. DERIVATIVES AND HEDGING
The Duke Energy Registrants use commodity, interest rate and foreign currency contracts to manage commodity price risk, interest rate risk and foreign currency exchange rate risk. The primary use of commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Piedmont enters into natural gas supply contracts to provide diversification, reliability and natural gas cost benefits to its customers. Interest rate derivatives are used to manage interest rate risk associated with borrowings. Foreign currency derivatives are used to manage risk related to foreign currency exchange rates on certain issuances of debt. Derivatives related to interest rate risk for the Commercial Renewables Disposal Groups are now classified as held for sale and are excluded from the following disclosures. See Note 2 for further information.
All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Condensed Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Condensed Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities or financing activities on the Condensed Consolidated Statements of Cash Flows consistent with the classification of the hedged transaction.
INTEREST RATE RISK
The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward-starting interest rate swaps or Treasury locks may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt.
Cash Flow Hedges
For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30,March 31, 2024, and 2023, and 2022, were not material. Duke Energy's interest rate derivatives designated as hedges include forward-starting interest rate swaps not accounted for under regulatory accounting.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.
Duke Energy’s interest rate swaps for its regulated operations employ regulatory accounting. With regulatory accounting, the mark-to-market gains or losses on the swaps are deferred as regulatory liabilities or regulatory assets, respectively. Regulatory assets and liabilities are amortized consistent with the treatment of the related costs in the ratemaking process. The accrual of interest on the swaps is recorded as Interest Expense on the Duke Energy Registrant's Condensed Consolidated Statements of Operations and Comprehensive Income.
6159

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
The following tables show notional amounts of outstanding derivatives related to interest rate risk.
June 30, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
March 31, 2024March 31, 2024
DukeDukeDukeDuke
DukeDukeEnergyProgressEnergy
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaIndianaOhio(in millions)EnergyCarolinasEnergyProgressFloridaIndianaOhio
Cash flow hedgesCash flow hedges$2,100 $ $ $ $ $ $ 
Undesignated contractsUndesignated contracts2,027 550 1,250 250 1,000 200 27 
Total notional amountTotal notional amount$4,127 $550 $1,250 $250 $1,000 $200 $27 
December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
December 31, 2023December 31, 2023
DukeDukeDukeDuke
DukeDukeEnergyProgressEnergy
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaIndianaOhio(in millions)EnergyCarolinasEnergyProgressFloridaIndianaOhio
Cash flow hedgesCash flow hedges$500 $— $— $— $— $— $— 
Undesignated contractsUndesignated contracts2,377 1,250 800 500 300 300 27 
Total notional amountTotal notional amount$2,877 $1,250 $800 $500 $300 $300 $27 
COMMODITY PRICE RISK
The Duke Energy Registrants are exposed to the impact of changes in the prices of electricity purchased and sold in bulk power markets and natural gas purchases, including Piedmont's natural gas supply contracts. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets and delivery locations. To manage risk associated with commodity prices, the Duke Energy Registrants may enter into long-term power purchase or sales contracts and long-term natural gas supply agreements.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.
For the Subsidiary Registrants, bulk power electricity and natural gas purchases flow through fuel adjustment clauses, formula-based contracts or other cost-sharing mechanisms. Differences between the costs included in rates and the incurred costs, including undesignated derivative contracts, are largely deferred as regulatory assets or regulatory liabilities. Piedmont policies allow for the use of financial instruments to hedge commodity price risks. The strategy and objective of these hedging programs are to use the financial instruments to reduce natural gas cost volatility for customers.
Volumes
The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.
June 30, 2023
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
March 31, 2024
March 31, 2024
March 31, 2024
Duke
Duke
Duke
Duke
Energy
Energy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
Electricity (GWh)Electricity (GWh)28,253    3,466 24,787  
Natural gas (millions of dekatherms)Natural gas (millions of dekatherms)863 290 280 280  12 281 
December 31, 2022
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
December 31, 2023
December 31, 2023
December 31, 2023
Duke
Duke
Duke
Duke
Energy
Energy
EnergyCarolinasEnergyProgressOhioIndianaPiedmont
Electricity (GWh)Electricity (GWh)14,086 — — — 1,820 12,266 — 
Natural gas (millions of dekatherms)Natural gas (millions of dekatherms)909 307 292 292 — 11 299 
FOREIGN CURRENCY RISK
Duke Energy may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars.
6260

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
Fair Value Hedges
Derivatives related to existing fixed ratefixed-rate securities are accounted for as fair value hedges, where the derivatives’ fair value gains or losses and hedged items’ fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Duke Energy has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value hedges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of other comprehensive income or loss.
The following table shows Duke Energy's outstanding derivatives related to foreign currency risk at June 30, 2023.March 31, 2024.
Fair Value Gain (Loss)(a)
(in millions)
Pay NotionalReceive NotionalReceiveHedgeThree Months Ended June 30,Six Months Ended June 30,
(in millions)Pay Rate(in millions)RateMaturity Date2023202220232022
Fair Value Gain (Loss)(a)
Fair Value Gain (Loss)(a)
Fair Value Gain (Loss)(a)
(in millions)(in millions)
Pay Notional
(in millions)
(in millions)
(in millions)
Fair value hedgesFair value hedges
$645 4.75 %600 euros3.10 %June 2028$5 $(16)$10 $(16)
537 5.31 %500 euros3.85 %June 20343 (13)8 (13)
Fair value hedges
Fair value hedges
$
$
$
537
537
537
Total notional amountTotal notional amount$1,182 1,100 euros$8 $(29)$18 $(29)
Total notional amount
Total notional amount
(a)    Amounts are recorded in Other Income and expenses, net on the Condensed Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Condensed Consolidated Statements of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded.
In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due 2031. The notes were effectively converted to fixed-rate U.S. dollars at issuance for $815 million at 5.648%. See Note 6 for additional information.
LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED IN THE CONDENSEDCONDENSED 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 AssetsDerivative AssetsJune 30, 2023Derivative AssetsMarch 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity ContractsCommodity Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Not Designated as Hedging Instruments
Not Designated as Hedging Instruments
Current
Current
CurrentCurrent$75 $16 $18 $12 $6 $4 $37 $1 
NoncurrentNoncurrent93 45 48 48     
Total Derivative Assets – Commodity ContractsTotal Derivative Assets – Commodity Contracts$168 $61 $66 $60 $6 $4 $37 $1 
Interest Rate ContractsInterest Rate Contracts
Designated as Hedging InstrumentsDesignated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current
Current
CurrentCurrent$107 $ $ $ $ $ $ $ 
NoncurrentNoncurrent12        
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Current23  23  23    
Noncurrent
Noncurrent
NoncurrentNoncurrent2 1 1  1    
Total Derivative Assets – Interest Rate ContractsTotal Derivative Assets – Interest Rate Contracts$144 $1 $24 $ $24 $ $ $ 
Foreign Currency ContractsForeign Currency Contracts
Designated as Hedging InstrumentsDesignated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Noncurrent
Noncurrent
NoncurrentNoncurrent10        
Total Derivative Assets – Foreign Currency ContractsTotal Derivative Assets – Foreign Currency Contracts$10 $ $ $ $ $ $ $ 
Total Derivative Assets – Foreign Currency Contracts
Total Derivative Assets – Foreign Currency Contracts
Total Derivative AssetsTotal Derivative Assets$322 $62 $90 $60 $30 $4 $37 $1 
6361

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
Derivative LiabilitiesDerivative LiabilitiesJune 30, 2023Derivative LiabilitiesMarch 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity ContractsCommodity Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Current$235 $121 $86 $86 $ $ $6 $23 
Noncurrent254 62 59 59    133 
Total Derivative Liabilities – Commodity Contracts$489 $183 $145 $145 $ $ $6 $156 
Interest Rate Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Not Designated as Hedging Instruments
Current
Current
Current
Noncurrent
Total Derivative Liabilities – Commodity Contracts
Interest Rate Contracts
Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current
Current
Current
Noncurrent
Not Designated as Hedging Instruments
Noncurrent
Noncurrent
NoncurrentNoncurrent4  1 1  1 1  
Total Derivative Liabilities – Interest Rate ContractsTotal Derivative Liabilities – Interest Rate Contracts$4 $ $1 $1 $ $1 $1 $ 
Foreign Currency ContractsForeign Currency Contracts
Designated as Hedging InstrumentsDesignated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current
Current
CurrentCurrent$16 $ $ $ $ $ $ $ 
Total Derivative Liabilities – Foreign Currency ContractsTotal Derivative Liabilities – Foreign Currency Contracts$16 $ $ $ $ $ $ $ 
Total Derivative Liabilities – Foreign Currency Contracts
Total Derivative Liabilities – Foreign Currency Contracts
Total Derivative LiabilitiesTotal Derivative Liabilities$509 $183 $146 $146 $ $1 $7 $156 
Derivative AssetsDerivative AssetsDecember 31, 2022Derivative AssetsDecember 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity ContractsCommodity Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Not Designated as Hedging Instruments
Not Designated as Hedging Instruments
Current
Current
CurrentCurrent$265 $132 $99 $99 $— $$29 $— 
NoncurrentNoncurrent213 104 108 108 — — — — 
Total Derivative Assets – Commodity ContractsTotal Derivative Assets – Commodity Contracts$478 $236 $207 $207 $— $$29 $— 
Interest Rate ContractsInterest Rate Contracts
Designated as Hedging InstrumentsDesignated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
CurrentCurrent$101 $— $— $— $— $— $— $— 
Current
Current
Noncurrent
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
CurrentCurrent$216 $94 $41 $23 $17 $— $81 $— 
Current
Current
Noncurrent
Total Derivative Assets – Interest Rate Contracts
Foreign Currency Contracts
Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Total Derivative Assets – Interest Rate Contracts$317 $94 $41 $23 $17 $— $81 $— 
Noncurrent
Noncurrent
Noncurrent
Total Derivative Assets – Foreign Currency Contracts
Total Derivative Assets – Foreign Currency Contracts
Total Derivative Assets – Foreign Currency Contracts
Total Derivative AssetsTotal Derivative Assets$795 $330 $248 $230 $17 $$110 $— 
6462

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
Derivative LiabilitiesDerivative LiabilitiesDecember 31, 2022Derivative LiabilitiesDecember 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Commodity ContractsCommodity Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Current$175 $96 $36 $18 $19 $— $16 $27 
Noncurrent202 31 30 30 — — — 141 
Total Derivative Liabilities – Commodity Contracts$377 $127 $66 $48 $19 $— $16 $168 
Interest Rate Contracts
Not Designated as Hedging InstrumentsNot Designated as Hedging Instruments
Not Designated as Hedging Instruments
Current
Current
Current
Noncurrent
Total Derivative Liabilities – Commodity Contracts
Interest Rate Contracts
Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current
Current
Current
Noncurrent
Not Designated as Hedging Instruments
Current
Current
Current
NoncurrentNoncurrent$$— $— $— $— $$— $— 
Total Derivative Liabilities – Interest Rate ContractsTotal Derivative Liabilities – Interest Rate Contracts$$— $— $— $— $$— $— 
Foreign Currency ContractsForeign Currency Contracts
Designated as Hedging InstrumentsDesignated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
CurrentCurrent$18 $— $— $— $— $— $— $— 
Noncurrent40 — — — — — — — 
Current
Current
Total Derivative Liabilities – Equity Securities Contracts$58 $— $— $— $— $— $— $— 
Total Derivative Liabilities – Foreign Currency Contracts
Total Derivative Liabilities – Foreign Currency Contracts
Total Derivative Liabilities – Foreign Currency Contracts
Total Derivative LiabilitiesTotal Derivative Liabilities$437 $127 $66 $48 $19 $$16 $168 
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 AssetsDerivative AssetsJune 30, 2023Derivative AssetsMarch 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
CurrentCurrent
Gross amounts recognizedGross amounts recognized$205 $16 $41 $12 $29 $4 $37 $1 
Gross amounts offset(23)(13)(10)(10)    
Gross amounts recognized
Gross amounts recognized
Offset
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: OtherNet amounts presented in Current Assets: Other$182 $3 $31 $2 $29 $4 $37 $1 
NoncurrentNoncurrent
Gross amounts recognizedGross amounts recognized$117 $46 $49 $48 $1 $ $ $ 
Gross amounts offset(66)(33)(33)(33)    
Gross amounts recognized
Gross amounts recognized
Offset
Net amounts presented in Other Noncurrent Assets: Other
Net amounts presented in Other Noncurrent Assets: Other
Net amounts presented in Other Noncurrent Assets: OtherNet amounts presented in Other Noncurrent Assets: Other$51 $13 $16 $15 $1 $ $ $ 
6563

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
Derivative LiabilitiesDerivative LiabilitiesJune 30, 2023Derivative LiabilitiesMarch 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
CurrentCurrent
Gross amounts recognizedGross amounts recognized$251 $121 $86 $86 $ $ $6 $23 
Gross amounts offset(42)(24)(12)(12)  (6) 
Gross amounts recognized
Gross amounts recognized
Offset
Cash collateral posted
Net amounts presented in Current Liabilities: OtherNet amounts presented in Current Liabilities: Other$209 $97 $74 $74 $ $ $ $23 
NoncurrentNoncurrent
Gross amounts recognizedGross amounts recognized$258 $62 $60 $60 $ $1 $1 $133 
Gross amounts offset(80)(43)(37)(37)    
Gross amounts recognized
Gross amounts recognized
Offset
Cash collateral posted
Net amounts presented in Other Noncurrent Liabilities: OtherNet amounts presented in Other Noncurrent Liabilities: Other$178 $19 $23 $23 $ $1 $1 $133 
Derivative AssetsDerivative AssetsDecember 31, 2022Derivative AssetsDecember 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
CurrentCurrent
Gross amounts recognizedGross amounts recognized$582 $226 $140 $122 $17 $$110 $— 
Gross amounts offset(64)(33)(30)(30)— — — — 
Gross amounts recognized
Gross amounts recognized
Offset
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: OtherNet amounts presented in Current Assets: Other$518 $193 $110 $92 $17 $$110 $— 
NoncurrentNoncurrent
Gross amounts recognizedGross amounts recognized$213 $104 $108 $108 $— $— $— $— 
Gross amounts offset(97)(40)(57)(57)— — — — 
Gross amounts recognized
Gross amounts recognized
Offset
Net amounts presented in Other Noncurrent Assets: OtherNet amounts presented in Other Noncurrent Assets: Other$116 $64 $51 $51 $— $— $— $— 
Net amounts presented in Other Noncurrent Assets: Other
Net amounts presented in Other Noncurrent Assets: Other
Derivative LiabilitiesDerivative LiabilitiesDecember 31, 2022Derivative LiabilitiesDecember 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
CurrentCurrent
Gross amounts recognizedGross amounts recognized$193 $96 $36 $18 $19 $— $16 $27 
Gross amounts offset(49)(15)(18)(18)— — (16)— 
Gross amounts recognized
Gross amounts recognized
Offset
Cash collateral posted
Net amounts presented in Current Liabilities: OtherNet amounts presented in Current Liabilities: Other$144 $81 $18 $— $19 $— $— $27 
NoncurrentNoncurrent
Gross amounts recognizedGross amounts recognized$244 $31 $30 $30 $— $$— $141 
Gross amounts offset(59)(29)(30)(30)— — — — 
Gross amounts recognized
Gross amounts recognized
Offset
Cash collateral posted
Net amounts presented in Other Noncurrent Liabilities: OtherNet amounts presented in Other Noncurrent Liabilities: Other$185 $$— $— $— $$— $141 
64

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
OBJECTIVE CREDIT CONTINGENT FEATURES
Certain derivative contracts contain objective credit contingent features. These features include the requirement to post cash collateral or letters of credit if specific events occur, such as a credit rating downgrade below investment grade. The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit risk-related payment provisions.
June 30, 2023
DukeDuke
DukeEnergyProgressEnergy
March 31, 2024
March 31, 2024
March 31, 2024
Duke
Duke
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgress
Aggregate fair value of derivatives in a net liability positionAggregate fair value of derivatives in a net liability position$309 $164 $145 $145 
Aggregate fair value of derivatives in a net liability position
Aggregate fair value of derivatives in a net liability position
Fair value of collateral already posted
Fair value of collateral already posted
Fair value of collateral already postedFair value of collateral already posted28 22 6 6 
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggeredAdditional cash collateral or letters of credit in the event credit risk-related contingent features were triggered$281 $142 $139 $139 
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
66

FINANCIAL STATEMENTSDERIVATIVES AND HEDGING
December 31, 2022
DukeDukeDuke
DukeEnergyProgressEnergyEnergy
December 31, 2023
December 31, 2023
December 31, 2023
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFlorida
Aggregate fair value of derivatives in a net liability positionAggregate fair value of derivatives in a net liability position$141 $86 $55 $48 $
Aggregate fair value of derivatives in a net liability position
Aggregate fair value of derivatives in a net liability position
Fair value of collateral already posted
Fair value of collateral already posted
Fair value of collateral already postedFair value of collateral already posted— — — — — 
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggeredAdditional cash collateral or letters of credit in the event credit risk-related contingent features were triggered$141 $86 $55 $48 $
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered
The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative and cash collateral must be executed with the same counterparty under the same master netting arrangement.
10. 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 Available for Sale (AFS) and investments in equity securities as fair value through net income (FV-NI).
For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.
Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.
Investment Trusts
The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the guidelines set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.
Other AFS Securities
Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of June 30, 2023,March 31, 2024, and December 31, 2022.2023.
Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.
6765

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES
DUKE ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
NDTFNDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $142 $— $— $215 
Equity securitiesEquity securities4,483 34 6,836 3,658 105 5,871 
Corporate debt securitiesCorporate debt securities2 67 619 85 641 
Municipal bondsMunicipal bonds 27 324 — 39 330 
U.S. government bondsU.S. government bonds1 92 1,495 112 1,423 
Other debt securitiesOther debt securities 17 155 — 18 156 
Other debt securities
Other debt securities
Total NDTF InvestmentsTotal NDTF Investments$4,486 $237 $9,571 $3,661 $359 $8,636 
Other InvestmentsOther Investments
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $89 $— $— $22 
Equity securitiesEquity securities29 6 146 21 16 128 
Corporate debt securitiesCorporate debt securities 10 84 — 12 84 
Municipal bondsMunicipal bonds 2 80 — 78 
U.S. government bondsU.S. government bonds 1 48 — 62 
Other debt securitiesOther debt securities 3 53 — 41 
Total Other InvestmentsTotal Other Investments$29 $22 $500 $21 $36 $415 
Total InvestmentsTotal Investments$4,515 $259 $10,071 $3,682 $395 $9,051 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and six months ended June 30,March 31, 2024, and 2023, and 2022, were as follows.
Three Months EndedSix Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
(in millions)(in millions)June 30, 2023June 30, 2022June 30, 2023June 30, 2022(in millions)March 31, 2024March 31, 2023
FV-NI:FV-NI:
Realized gains
Realized gains
Realized gains Realized gains$20 $34 $46 $145 
Realized losses Realized losses36 101 82 186 
AFS:AFS:
Realized gains Realized gains13 11 21 15 
Realized gains
Realized gains
Realized losses Realized losses27 42 59 65 
DUKE ENERGY CAROLINAS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
NDTFNDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $53 $— $— $117 
Equity securitiesEquity securities2,630 19 3,945 2,147 51 3,367 
Corporate debt securitiesCorporate debt securities1 49 393 62 401 
Municipal bondsMunicipal bonds 5 52 — 10 64 
U.S. government bondsU.S. government bonds 45 738 51 685 
Other debt securitiesOther debt securities 17 151 — 18 148 
Total NDTF InvestmentsTotal NDTF Investments$2,631 $135 $5,332 $2,149 $192 $4,782 
6866

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 and six months ended June 30,March 31, 2024, and 2023, and 2022, were as follows.
Three Months EndedSix Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
(in millions)(in millions)June 30, 2023June 30, 2022June 30, 2023June 30, 2022(in millions)March 31, 2024March 31, 2023
FV-NI:FV-NI:
Realized gains
Realized gains
Realized gains Realized gains$9 $18 $27 $93 
Realized losses Realized losses18 55 47 104 
AFS:AFS:
Realized gains Realized gains4 9 12 
Realized gains
Realized gains
Realized losses Realized losses8 21 28 37 
PROGRESS ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
NDTFNDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $89 $— $— $98 
Equity securitiesEquity securities1,853 15 2,891 1,511 54 2,504 
Corporate debt securitiesCorporate debt securities1 18 226 — 23 240 
Municipal bondsMunicipal bonds 22 272 — 29 266 
U.S. government bondsU.S. government bonds1 47 757 61 738 
Other debt securitiesOther debt securities  4 — — 
Other debt securities
Other debt securities
Total NDTF InvestmentsTotal NDTF Investments$1,855 $102 $4,239 $1,512 $167 $3,854 
Other InvestmentsOther Investments
Cash and cash equivalentsCash and cash equivalents$ $ $8 $— $— $11 
Cash and cash equivalents
Cash and cash equivalents
Municipal bonds
Municipal bonds
Municipal bondsMunicipal bonds  25 — — 25 
Total Other InvestmentsTotal Other Investments$ $ $33 $— $— $36 
Total InvestmentsTotal Investments$1,855 $102 $4,272 $1,512 $167 $3,890 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and six months ended June 30,March 31, 2024, and 2023, and 2022, were as follows.
Three Months EndedSix Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
(in millions)(in millions)June 30, 2023June 30, 2022June 30, 2023June 30, 2022(in millions)March 31, 2024March 31, 2023
FV-NI:FV-NI:
Realized gains
Realized gains
Realized gains Realized gains$11 $16 $19 $52 
Realized losses Realized losses18 46 35 82 
AFS:AFS:
Realized gains Realized gains9 12 
Realized gains
Realized gains
Realized losses Realized losses19 17 31 23 
6967

FINANCIAL STATEMENTSINVESTMENTS IN DEBT AND EQUITY SECURITIES
DUKE ENERGY PROGRESS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
NDTFNDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $77 $— $— $56 
Equity securitiesEquity securities1,758 15 2,783 1,431 54 2,411 
Corporate debt securitiesCorporate debt securities1 17 216 — 22 230 
Municipal bondsMunicipal bonds 22 272 — 29 266 
U.S. government bondsU.S. government bonds1 27 476 37 460 
Other debt securitiesOther debt securities  4 — — 
Total NDTF InvestmentsTotal NDTF Investments$1,760 $81 $3,828 $1,432 $142 $3,430 
Other InvestmentsOther Investments
Cash and cash equivalentsCash and cash equivalents$ $ $5 $— $— $
Cash and cash equivalents
Cash and cash equivalents
Total Other InvestmentsTotal Other Investments$ $ $5 $— $— $
Total InvestmentsTotal Investments$1,760 $81 $3,833 $1,432 $142 $3,439 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and six months ended June 30,March 31, 2024, and 2023, and 2022, were as follows.
Three Months EndedSix Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
(in millions)(in millions)June 30, 2023June 30, 2022June 30, 2023June 30, 2022(in millions)March 31, 2024March 31, 2023
FV-NI:FV-NI:
Realized gains
Realized gains
Realized gains Realized gains$11 $15 $19 $51 
Realized losses Realized losses17 45 34 80 
AFS:AFS:
Realized gains Realized gains8 11 
Realized gains
Realized gains
Realized losses Realized losses17 15 29 20 
DUKE ENERGY FLORIDA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
NDTFNDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $12 $— $— $42 
Equity securitiesEquity securities95  108 80 — 93 
Corporate debt securitiesCorporate debt securities 1 10 — 10 
U.S. government bondsU.S. government bonds 20 281 — 24 278 
U.S. government bonds
U.S. government bonds
Other debt securities
Other debt securities
Other debt securitiesOther debt securities   — — 
Total NDTF Investments(a)
Total NDTF Investments(a)
$95 $21 $411 $80 $25 $424 
Other InvestmentsOther Investments
Cash and cash equivalentsCash and cash equivalents$ $ $2 $— $— $
Cash and cash equivalents
Cash and cash equivalents
Municipal bonds
Municipal bonds
Municipal bondsMunicipal bonds  25 — — 25 
Total Other InvestmentsTotal Other Investments$ $ $27 $— $— $26 
Total InvestmentsTotal Investments$95 $21 $438 $80 $25 $450 
(a)During the sixthree months ended June 30, 2023,March 31, 2024, and the year ended December 31, 2022,2023, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
7068

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 and six months ended June 30,March 31, 2024, and 2023, and 2022, 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.
June 30, 2023December 31, 2022
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
March 31, 2024March 31, 2024December 31, 2023
Gross
Unrealized
Unrealized
UnrealizedUnrealizedEstimatedUnrealizedEstimated
HoldingHoldingFairHoldingFair
(in millions)(in millions)GainsLossesValueGainsLossesValue(in millions)GainsLossesValueGainsLossesValue
InvestmentsInvestments
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalentsCash and cash equivalents$ $ $ $— $— $
Equity securitiesEquity securities4 6 91 16 79 
Corporate debt securitiesCorporate debt securities  9 — 
Municipal bondsMunicipal bonds 2 47 — 45 
U.S. government bondsU.S. government bonds  6 — — 
Total InvestmentsTotal Investments$4 $8 $153 $$20 $140 
Total Investments
Total Investments
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and six months ended June 30,March 31, 2024, and 2023, and 2022, were immaterial.
DEBT SECURITY MATURITIES
The table below summarizes the maturity date for debt securities.
June 30, 2023
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
March 31, 2024March 31, 2024
DukeDukeDukeDuke
DukeDukeEnergyProgressEnergy
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaIndiana(in millions)EnergyCarolinasEnergyProgressFloridaIndiana
Due in one year or lessDue in one year or less$142 $7 $121 $25 $96 $5 
Due after one through five yearsDue after one through five years699 227 394 225 169 22 
Due after five through 10 yearsDue after five through 10 years550 298 208 194 14 11 
Due after 10 yearsDue after 10 years1,467 802 561 524 37 24 
TotalTotal$2,858 $1,334 $1,284 $968 $316 $62 
11. FAIR VALUE MEASUREMENTS
Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.
Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value per share practical expedient. The net asset value is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.
Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the Company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.
Valuation methods of the primary fair value measurements disclosed below are as follows.
Investments in equity securities
The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the NYSENew 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.
7169

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
Investments in debt securities
Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.
Commodity derivatives
Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of certain commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.
Interest rate derivatives
Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties. Derivatives related to interest rate risk for the Commercial Renewables Disposal Groups are now classified as held for sale and are excluded from the following disclosures. See Note 2 for further information.
Foreign currency derivatives
Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.
Other fair value considerations
See Note 12 in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022,2023, for a discussion of the valuation of goodwill and intangible assets.
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 9. See Note 10 for additional information related to investments by major security type for the Duke Energy Registrants.
June 30, 2023
March 31, 2024March 31, 2024
(in millions)(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized
NDTF cash and cash equivalentsNDTF cash and cash equivalents$142 $142 $ $ $ 
NDTF equity securitiesNDTF equity securities6,836 6,795   41 
NDTF debt securitiesNDTF debt securities2,593 804 1,789   
Other equity securitiesOther equity securities146 146    
Other debt securitiesOther debt securities265 46 219   
Other cash and cash equivalentsOther cash and cash equivalents89 89    
Derivative assetsDerivative assets322 1 280 41  
Derivative assets
Derivative assets
Total assetsTotal assets10,393 8,023 2,288 41 41 
Derivative liabilitiesDerivative liabilities(509)(5)(504)  
Derivative liabilities
Derivative liabilities
Net assetsNet assets$9,884 $8,018 $1,784 $41 $41 
December 31, 2022
December 31, 2023December 31, 2023
(in millions)(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized(in millions)Total Fair ValueLevel 1Level 2Level 3Not Categorized
NDTF cash and cash equivalentsNDTF cash and cash equivalents$215 $215 $— $— $— 
NDTF equity securitiesNDTF equity securities5,871 5,829 — — 42 
NDTF debt securitiesNDTF debt securities2,550 780 1,770 — — 
Other equity securitiesOther equity securities128 128 — — — 
Other debt securitiesOther debt securities265 55 210 — — 
Other cash and cash equivalentsOther cash and cash equivalents22 22 — — — 
Derivative assetsDerivative assets795 760 34 — 
Total assetsTotal assets9,846 7,030 2,740 34 42 
Derivative liabilitiesDerivative liabilities(437)(16)(421)— — 
Derivative liabilities
Derivative liabilities
Net assetsNet assets$9,409 $7,014 $2,319 $34 $42 
7270

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
The following table provides reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended June 30,Six Months Ended June 30,
Derivatives (net)
Derivatives (net)
Derivatives (net)
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Balance at beginning of periodBalance at beginning of period$12 $10 $34 $24 
Purchases, sales, issuances and settlements:Purchases, sales, issuances and settlements:
Purchases47 77 47 77 
Purchases, sales, issuances and settlements:
Purchases, sales, issuances and settlements:
Settlements
Settlements
SettlementsSettlements(38)15 (58)
Total gains (losses) included on the Condensed Consolidated Balance SheetTotal gains (losses) included on the Condensed Consolidated Balance Sheet20 (13)18 (20)
Total gains (losses) included on the Condensed Consolidated Balance Sheet
Total gains (losses) included on the Condensed Consolidated Balance Sheet
Balance at end of periodBalance at end of period$41 $89 $41 $89 
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.
June 30, 2023
March 31, 2024
March 31, 2024
March 31, 2024
(in millions)(in millions)Total Fair ValueLevel 1Level 2Not Categorized(in millions)Total Fair ValueLevel 1Level 2Not Categorized
NDTF cash and cash equivalentsNDTF cash and cash equivalents$53 $53 $ $ 
NDTF equity securitiesNDTF equity securities3,945 3,904  41 
NDTF debt securitiesNDTF debt securities1,334 336 998  
Other AFS debt securities
Derivative assetsDerivative assets62  62  
Total assetsTotal assets5,394 4,293 1,060 41 
Derivative liabilitiesDerivative liabilities(183) (183) 
Net assetsNet assets$5,211 $4,293 $877 $41 
December 31, 2022
December 31, 2023
December 31, 2023
December 31, 2023
(in millions)(in millions)Total Fair ValueLevel 1Level 2Not Categorized(in millions)Total Fair ValueLevel 1Level 2Not Categorized
NDTF cash and cash equivalentsNDTF cash and cash equivalents$117 $117 $— $— 
NDTF equity securitiesNDTF equity securities3,367 3,325 — 42 
NDTF debt securitiesNDTF debt securities1,298 323 975 — 
Derivative assetsDerivative assets330 — 330 — 
Derivative assets
Derivative assets
Total assetsTotal assets5,112 3,765 1,305 42 
Derivative liabilitiesDerivative liabilities(127)— (127)— 
Net assetsNet assets$4,985 $3,765 $1,178 $42 
PROGRESS ENERGY
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024
(in millions)
(in millions)
(in millions)(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalentsNDTF cash and cash equivalents$89 $89 $ $98 $98 $— 
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securities
NDTF equity securities
NDTF equity securitiesNDTF equity securities2,891 2,891  2,504 2,504 — 
NDTF debt securitiesNDTF debt securities1,259 468 791 1,252 457 795 
NDTF debt securities
NDTF debt securities
Other debt securities
Other debt securities
Other debt securitiesOther debt securities25  25 25 — 25 
Other cash and cash equivalentsOther cash and cash equivalents8 8  11 11 — 
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assetsDerivative assets90  90 248 — 248 
Derivative assets
Derivative assets
Total assets
Total assets
Total assetsTotal assets4,362 3,456 906 4,138 3,070 1,068 
Derivative liabilitiesDerivative liabilities(146) (146)(66)— (66)
Derivative liabilities
Derivative liabilities
Net assetsNet assets$4,216 $3,456 $760 $4,072 $3,070 $1,002 
Net assets
Net assets
7371

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
DUKE ENERGY PROGRESS
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024
(in millions)
(in millions)
(in millions)(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalentsNDTF cash and cash equivalents$77 $77 $ $56 $56 $— 
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securitiesNDTF equity securities2,783 2,783  2,411 2,411 — 
NDTF equity securities
NDTF equity securities
NDTF debt securities
NDTF debt securities
NDTF debt securitiesNDTF debt securities968 234 734 963 225 738 
Other cash and cash equivalentsOther cash and cash equivalents5 5  — 
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assets
Derivative assets
Derivative assetsDerivative assets60  60 230 — 230 
Total assetsTotal assets3,893 3,099 794 3,669 2,701 968 
Total assets
Total assets
Derivative liabilities
Derivative liabilities
Derivative liabilitiesDerivative liabilities(146) (146)(48)— (48)
Net assetsNet assets$3,747 $3,099 $648 $3,621 $2,701 $920 
Net assets
Net assets
DUKE ENERGY FLORIDA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024
(in millions)
(in millions)
(in millions)(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
NDTF cash and cash equivalentsNDTF cash and cash equivalents$12 $12 $ $42 $42 $— 
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securities
NDTF equity securities
NDTF equity securitiesNDTF equity securities108 108  93 93 — 
NDTF debt securitiesNDTF debt securities291 234 57 289 232 57 
NDTF debt securities
NDTF debt securities
Other debt securities
Other debt securities
Other debt securitiesOther debt securities25  25 25 — 25 
Other cash and cash equivalentsOther cash and cash equivalents2 2  — 
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assetsDerivative assets30  30 17 — 17 
Derivative assets
Derivative assets
Total assets
Total assets
Total assetsTotal assets468 356 112 467 368 99 
Derivative liabilitiesDerivative liabilities   (19)— (19)
Derivative liabilities
Derivative liabilities
Net assetsNet assets$468 $356 $112 $448 $368 $80 
Net assets
Net assets
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 June 30, 2023,March 31, 2024, and December 31, 2022.2023.
DUKE ENERGY INDIANA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024
(in millions)
(in millions)
(in millions)(in millions)Total Fair ValueLevel 1Level 2Level 3Total Fair ValueLevel 1Level 2Level 3
Other equity securitiesOther equity securities$91 $91 $ $ $79 $79 $— $— 
Other equity securities
Other equity securities
Other debt securities
Other debt securities
Other debt securitiesOther debt securities62  62  60 — 60 — 
Other cash and cash equivalentsOther cash and cash equivalents    — — 
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assets
Derivative assets
Derivative assetsDerivative assets37   37 110 — 81 29 
Total assetsTotal assets190 91 62 37 250 80 141 29 
Total assets
Total assets
Derivative liabilities
Derivative liabilities
Derivative liabilitiesDerivative liabilities(7)(6)(1) (16)(16)— — 
Net assetsNet assets$183 $85 $61 $37 $234 $64 $141 $29 
Net assets
Net assets
7472

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
Derivatives (net)
Three Months Ended June 30,Six Months Ended June 30,
Derivatives (net)
Derivatives (net)
Derivatives (net)
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)2023202220232022(in millions)20242023
Balance at beginning of periodBalance at beginning of period$11 $10 $29 $22 
Purchases, sales, issuances and settlements:Purchases, sales, issuances and settlements:
Purchases42 74 42 74 
Purchases, sales, issuances and settlements:
Purchases, sales, issuances and settlements:
SettlementsSettlements(37)16 (56)10 
Total gains (losses) included on the Condensed Consolidated Balance Sheet21 (16)22 (22)
Settlements
Settlements
Total gains included on the Condensed Consolidated Balance Sheet
Total gains included on the Condensed Consolidated Balance Sheet
Total gains included on the Condensed Consolidated Balance Sheet
Balance at end of periodBalance at end of period$37 $84 $37 $84 
PIEDMONT
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024December 31, 2023
(in millions)(in millions)Total Fair ValueLevel 1Level 2Total Fair ValueLevel 1Level 2
Derivative assetsDerivative assets$1 $1 $ $— $— $— 
Derivative assets
Derivative assets
Derivative liabilities
Derivative liabilities
Derivative liabilitiesDerivative liabilities(156) (156)(168)— (168)
Net (liabilities) assetsNet (liabilities) assets$(155)$1 $(156)$(168)$— $(168)
Net (liabilities) assets
Net (liabilities) assets
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.
June 30, 2023
Weighted
Fair ValueAverage
March 31, 2024March 31, 2024
WeightedWeighted
Fair ValueFair ValueAverage
Investment TypeInvestment Type(in millions)Valuation TechniqueUnobservable InputRangeRangeInvestment Type(in millions)Valuation TechniqueUnobservable InputRangeRange
Duke Energy OhioDuke Energy Ohio 
Duke Energy Ohio
Duke Energy Ohio
FTRs
FTRs
FTRsFTRs$4 RTO auction pricingFTR price – per MWh$(0.19)-$2.71 $0.83 
Duke Energy IndianaDuke Energy Indiana 
FTRs
FTRs
FTRsFTRs37 RTO auction pricingFTR price – per MWh(1.64)-12.51 1.90 
Duke EnergyDuke Energy
Duke Energy
Duke Energy
Total Level 3 derivativesTotal Level 3 derivatives$41 
Total Level 3 derivatives
Total Level 3 derivatives
December 31, 2022
Weighted
Fair ValueAverage
December 31, 2023December 31, 2023
WeightedWeighted
Fair ValueFair ValueAverage
Investment TypeInvestment Type(in millions)Valuation TechniqueUnobservable InputRangeRangeInvestment Type(in millions)Valuation TechniqueUnobservable InputRangeRange
Duke Energy OhioDuke Energy Ohio  
Duke Energy Ohio
Duke Energy Ohio
FTRs
FTRs
FTRsFTRs$RTO auction pricingFTR price – per MWh$0.89 -$6.25 $3.35 
Duke Energy IndianaDuke Energy Indiana   
Duke Energy Indiana
Duke Energy Indiana
FTRs
FTRs
FTRsFTRs29 RTO auction pricingFTR price – per MWh0.09 -21.79 2.74 
Duke EnergyDuke Energy
Duke Energy
Duke Energy
Total Level 3 derivativesTotal Level 3 derivatives$34 
Total Level 3 derivatives
Total Level 3 derivatives
7573

FINANCIAL STATEMENTSFAIR VALUE MEASUREMENTS
OTHER FAIR VALUE DISCLOSURES
The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Debt related to the Commercial Renewables Disposal Groups is now classified as held for sale and is excluded from the following disclosures. See Note 2 for further information. 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.
June 30, 2023December 31, 2022
March 31, 2024March 31, 2024December 31, 2023
(in millions)(in millions)Book ValueFair ValueBook ValueFair Value(in millions)Book ValueFair ValueBook ValueFair Value
Duke Energy(a)
Duke Energy(a)
$74,523 $67,125 $69,751 $61,986 
Duke Energy CarolinasDuke Energy Carolinas15,966 14,693 14,266 12,943 
Progress EnergyProgress Energy23,439 21,546 22,439 20,467 
Duke Energy ProgressDuke Energy Progress12,041 10,660 11,087 9,689 
Duke Energy FloridaDuke Energy Florida9,755 9,106 9,709 8,991 
Duke Energy OhioDuke Energy Ohio3,991 3,705 3,245 2,927 
Duke Energy IndianaDuke Energy Indiana4,503 4,148 4,307 3,913 
PiedmontPiedmont3,712 3,272 3,363 2,940 
(a)Book value of long-term debt includes $1.13$1.1 billion and $1.17$1.0 billion at June 30, 2023,March 31, 2024, and December 31, 2022,2023, 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 June 30, 2023,March 31, 2024, and December 31, 2022,2023, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.
12. VARIABLE INTEREST ENTITIES
CONSOLIDATED VIEs
The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.
No financial support was provided to any of the consolidated VIEs during the sixthree months ended June 30, 2023,March 31, 2024, and the year ended December 31, 2022,2023, or is expected to be provided in the future that was not previously contractually required.
Receivables Financing – DERF/DEPR/DEFR
DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies.
DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the DERF and DEPR credit facilitiesfacility are reflected on the Condensed Consolidated Balance Sheets as Long-Term Debt. Amounts borrowed under the DERF and DEFR credit facilityfacilities are reflected on the Condensed Consolidated Balance Sheets as Current maturities of long-term debt.
The most significant activity that impacts the economic performance of DERF, DEPR and DEFR are the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are considered the primary beneficiaries and consolidate DERF, DEPR and DEFR, respectively, as they make those decisions.
In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings totaling $325 million and terminated the related DEFR credit facility. Additionally, Duke Energy Florida's related restricted receivables outstanding at DEFR at the time of termination totaled $459 million and were transferred back to Duke Energy Florida to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.
Receivables Financing – CRC
CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC buysbought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC borrowsthen borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility iswas limited to the amount of qualified receivables sold to CRC, which generally excludeexcluded receivables past due more than a predetermined number of days and reservesreserved for expected past-due balances. The sole source of funds to satisfy the related debt obligation iswas 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 receivereceived from the sale of receivables to CRC arewere approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note iswas a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC maywould be required by Duke Energy to maintain a minimum equity balance of $3 million.
7674

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES
CRC iswas considered a VIE because (i) equity capitalization iswas insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity iswas not held by the equity holder and (iii) deficiencies in net worth of CRC arewere funded by Duke Energy. The most significant activities that impactimpacted the economic performance of CRC arewere decisions made to manage delinquent receivables. Duke Energy iswas considered the primary beneficiary and consolidatesconsolidated CRC as it makesmade these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidateconsolidated CRC.
In March 2024, Duke Energy repaid all outstanding CRC borrowings totaling $350 million and terminated the related CRC credit facility. Additionally, Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.
Receivables Financing – Credit Facilities
The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.
Duke Energy
Duke EnergyDuke EnergyDuke Energy
CarolinasProgressFlorida
(in millions)CRCDERFDEPRDEFR
Expiration dateFebruary 2025January 2025April 2025April 2024
Credit facility amount$350 $500 $400 $325 
Amounts borrowed at June 30, 2023323 488 400 325 
Amounts borrowed at December 31, 2022350 471 400 250 
Restricted Receivables at June 30, 2023645 855 694 613 
Restricted Receivables at December 31, 2022917 928 793 490 
Duke Energy
Duke EnergyDuke EnergyDuke Energy
CarolinasProgressFlorida
(in millions)CRCDERFDEPRDEFR
Expiration date(a)January 2025April 2025(b)
Credit facility amount(a)$500 $400 (b)
Amounts borrowed at March 31, 2024 500 400 325 
Amounts borrowed at December 31, 2023312 500 400 325 
Restricted Receivables at March 31, 2024 997 789 467 
Restricted Receivables at December 31, 2023663 991 833 532 
(a)    In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related $350 million CRC credit facility.
(b)    In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings and terminated the related $325 million DEFR credit facility.
Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance
Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.
In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.
DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.
The following table summarizes the impact of DEFPF on Duke Energy Florida's Condensed Consolidated Balance Sheets.
(in millions)(in millions)June 30, 2023December 31, 2022(in millions)March 31, 2024December 31, 2023
Receivables of VIEs$5 $
Regulatory Assets: Current
Regulatory Assets: Current
Regulatory Assets: CurrentRegulatory Assets: Current56 55 
Current Assets: OtherCurrent Assets: Other36 41 
Other Noncurrent Assets: Regulatory assetsOther Noncurrent Assets: Regulatory assets803 826 
Current Liabilities: OtherCurrent Liabilities: Other9 
Current maturities of long-term debtCurrent maturities of long-term debt57 56 
Long-Term DebtLong-Term Debt859 890 
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.costs incurred in North Carolina.
In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ North Carolina 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.
75

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES
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.
77

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES
The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.
June 30, 2023December 31, 2022
Duke EnergyDuke Energy
March 31, 2024March 31, 2024December 31, 2023
Duke EnergyDuke EnergyDuke EnergyDuke EnergyDuke Energy
(in millions)(in millions)CarolinasProgressCarolinasProgress(in millions)CarolinasProgressCarolinasProgress
Regulatory Assets: CurrentRegulatory Assets: Current$12 $39 $12 $39 
Current Assets: OtherCurrent Assets: Other8 25 29 
Other Noncurrent Assets: Regulatory assetsOther Noncurrent Assets: Regulatory assets202 662 208 681 
Other Noncurrent Assets: OtherOther Noncurrent Assets: Other1 4 
Current Liabilities: OtherCurrent Liabilities: Other3 8 
Current Liabilities: Other
Current Liabilities: Other
Current maturities of long-term debtCurrent maturities of long-term debt10 34 10 34 
Long-Term DebtLong-Term Debt214 697 219 714 
Storm Recovery Bonds – Duke Energy Progress SC Storm Funding
Duke Energy Progress SC Storm Funding, LLC (DEPSCSF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Progress. This entity was formed in 2023 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in South Carolina.
In April 2024, DEPSCSF issued $177 million of senior secured bonds and used the proceeds to acquire storm recovery property from Duke Energy Progress. The storm recovery property was created by state legislation and a PSCSC financing order for the purpose of financing storm costs incurred from 2014 through 2022. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Progress’ South Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Progress.
DEPSCSF is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Progress has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Progress is considered the primary beneficiary and consolidates DEPSCSF.
Procurement Company – Duke Energy Florida
Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo
was formed in 2023 as the primary procurer of equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with
third-party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified
reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset.
This entity is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Florida has the power to direct the significant activities of this VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates the procurement company.
The following table summarizes the impact of this VIE on Duke Energy Florida's Consolidated Balance Sheets.
(in millions)March 31, 2024December 31, 2023
Inventory$470 $462 
Accounts Payable179 188 
76

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES
NON-CONSOLIDATED VIEs
The following tables summarize the impact of non-consolidated VIEs on the Condensed Consolidated Balance Sheets.
June 30, 2023
Duke EnergyDukeDuke
Natural GasEnergyEnergy
(in millions)InvestmentsOhioIndiana
Receivables from affiliated companies$ $131 $183 
Investments in equity method unconsolidated affiliates58   
Other noncurrent assets46   
Total assets$104 $131 $183 
Other current liabilities23   
Other noncurrent liabilities49   
Total liabilities$72 $ $ 
Net assets$32 $131 $183 
March 31, 2024
Duke EnergyDukeDuke
Natural GasEnergyEnergy
(in millions)InvestmentsOhioIndiana
Receivables from affiliated companies$$$
Investments in equity method unconsolidated affiliates63
Other noncurrent assets30
Total assets$93$$
Other current liabilities1
Other noncurrent liabilities6
Total liabilities$7$$
Net assets$86$$
December 31, 2022
Duke EnergyDukeDuke
Natural GasEnergyEnergy
December 31, 2023
December 31, 2023
December 31, 2023
Duke EnergyDuke EnergyDukeDuke
Natural GasNatural GasEnergyEnergy
(in millions)(in millions)InvestmentsOhioIndiana(in millions)InvestmentsOhioIndiana
Receivables from affiliated companiesReceivables from affiliated companies$— $198 $317 
Investments in equity method unconsolidated affiliates
Investments in equity method unconsolidated affiliates
Investments in equity method unconsolidated affiliatesInvestments in equity method unconsolidated affiliates43 — — 
Other noncurrent assetsOther noncurrent assets45 — — 
Total assetsTotal assets$88 $198 $317 
Other current liabilitiesOther current liabilities59 — — 
Other current liabilities
Other current liabilities
Other noncurrent liabilitiesOther noncurrent liabilities47 — — 
Other noncurrent liabilities
Other noncurrent liabilities
Total liabilitiesTotal liabilities$106 $— $— 
Net (liabilities) assets$(18)$198 $317 
Net assets
The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above.
Natural Gas Investments
Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.
CRC
See discussion under Consolidated VIEs for additional information related to CRC.
Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC. TheseCRC as of December 31, 2023. The subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value.value as of December 31, 2023.
The following table shows the gross and net receivables sold.
Duke Energy OhioDuke Energy Indiana
(in millions)March 31, 2024December 31, 2023March 31, 2024December 31, 2023
Receivables sold$ $361 $ $351 
Less: Retained interests 150  208 
Net receivables sold$ $211 $ $143 
7877

FINANCIAL STATEMENTSVARIABLE INTEREST ENTITIES
The following table shows the gross and net receivables sold.
Duke Energy OhioDuke Energy Indiana
(in millions)June 30, 2023December 31, 2022June 30, 2023December 31, 2022
Receivables sold$354 $423 $333 $508 
Less: Retained interests131 198 183 317 
Net receivables sold$223 $225 $150 $191 
The following table shows sales and cash flows related to receivables sold.sold and reflects CRC activity prior to its termination in March 2024.
Duke Energy OhioDuke Energy Indiana
Six Months EndedSix Months Ended
June 30,June 30,
Duke Energy Ohio
Duke Energy Ohio
Duke Energy OhioDuke Energy Indiana
Three Months EndedThree Months EndedThree Months Ended
March 31,March 31,March 31,
(in millions)(in millions)2023202220232022(in millions)2024202320242023
SalesSales
Receivables sold
Receivables sold
Receivables soldReceivables sold$1,381 $1,247 $1,665 $1,617 
Loss recognized on saleLoss recognized on sale17 19 
Cash flowsCash flows
Cash proceeds from receivables soldCash proceeds from receivables sold$1,445 $1,188 $1,793 $1,484 
Collection fees received1 1 
Cash proceeds from receivables sold
Cash proceeds from receivables sold
Return received on retained interestsReturn received on retained interests10 13 
Return received on retained interests
Return received on retained interests
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.
13. REVENUE
Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.
Electric Utilities and Infrastructure
EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.
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
Remaining Performance ObligationsRemaining Performance Obligations
(in millions)(in millions)20232024202520262027ThereafterTotal(in millions)20242025202620272028ThereafterTotal
Progress Energy
Progress Energy
Progress EnergyProgress Energy$31 $66 $$$$36 $154 
Duke Energy ProgressDuke Energy Progress4 — — — — 12 
Duke Energy FloridaDuke Energy Florida27 58 36 142 
Duke Energy IndianaDuke Energy Indiana8 16 17 15 68 
Duke Energy Indiana
Duke Energy Indiana
Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.
Gas Utilities and Infrastructure
GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.
Fixed-capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:
Remaining Performance Obligations
(in millions)20232024202520262027ThereafterTotal
Piedmont$33 $62 $61 $51 $49 $241 $497 
79

FINANCIAL STATEMENTSREVENUE
Remaining Performance Obligations
(in millions)20242025202620272028ThereafterTotal
Piedmont$49 $61 $51 $49 $46 $195 $451 
Other
The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.
78

FINANCIAL STATEMENTSREVENUE
Disaggregated Revenues
Disaggregated revenues are presented as follows:
Three Months Ended June 30, 2023
DukeDuke
Three Months Ended March 31, 2024Three Months Ended March 31, 2024
Duke
(in millions)
(in millions)
(in millions)(in millions)DukeEnergyProgressEnergy
By market or type of customerBy market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
By market or type of customer
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and InfrastructureElectric Utilities and Infrastructure
Residential
Residential
Residential Residential$2,740 $715 $1,555 $539 $1,016 $208 $262 $ 
General General1,876 607 914 369 545 141 212  
Industrial Industrial827 320 274 180 94 56 177  
Wholesale Wholesale498 126 294 259 35 12 66  
Other revenues Other revenues189 49 144 70 74 22 32  
Total Electric Utilities and Infrastructure revenue from contracts with customersTotal Electric Utilities and Infrastructure revenue from contracts with customers$6,130 $1,817 $3,181 $1,417 $1,764 $439 $749 $ 
Gas Utilities and InfrastructureGas Utilities and Infrastructure
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Residential
Residential
Residential Residential$179 $ $ $ $ $82 $ $97 
Commercial Commercial100     31  69 
Industrial Industrial30     6  24 
Power Generation Power Generation       23 
Other revenues Other revenues25     5  5 
Total Gas Utilities and Infrastructure revenue from contracts with customersTotal Gas Utilities and Infrastructure revenue from contracts with customers$334 $ $ $ $ $124 $ $218 
OtherOther
Other
Other
Revenue from contracts with customers
Revenue from contracts with customers
Revenue from contracts with customersRevenue from contracts with customers$9 $ $ $ $ $ $ $ 
Total revenue from contracts with customersTotal revenue from contracts with customers$6,473 $1,817 $3,181 $1,417 $1,764 $563 $749 $218 
Other revenue sources(a)
Other revenue sources(a)
$105 $11 $31 $8 $18 $26 $31 $18 
Other revenue sources(a)
Other revenue sources(a)
Total revenuesTotal revenues$6,578 $1,828 $3,212 $1,425 $1,782 $589 $780 $236 
8079

FINANCIAL STATEMENTSREVENUE
Three Months Ended June 30, 2022
DukeDuke
Three Months Ended March 31, 2023Three Months Ended March 31, 2023
Duke
(in millions)
(in millions)
(in millions)(in millions)DukeEnergyProgressEnergy
By market or type of customerBy market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
By market or type of customer
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and InfrastructureElectric Utilities and Infrastructure
Residential
Residential
Residential Residential$2,625 $736 $1,400 $530 $870 $196 $296 $— 
General General1,817 566 889 370 519 111 251 — 
Industrial Industrial824 296 274 184 90 33 220 — 
Wholesale Wholesale629 103 389 281 108 35 102 — 
Other revenues Other revenues202 92 247 210 37 20 23 — 
Total Electric Utilities and Infrastructure revenue from contracts with customersTotal Electric Utilities and Infrastructure revenue from contracts with customers$6,097 $1,793 $3,199 $1,575 $1,624 $395 $892 $— 
Gas Utilities and InfrastructureGas Utilities and Infrastructure
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Residential
Residential
Residential Residential$197 $— $— $— $— $94 $— $103 
Commercial Commercial127 — — — — 38 — 90 
Industrial Industrial34 — — — — — 28 
Power Generation Power Generation— — — — — — — 23 
Other revenues Other revenues66 — — — — — 44 
Total Gas Utilities and Infrastructure revenue from contracts with customersTotal Gas Utilities and Infrastructure revenue from contracts with customers$424 $— $— $— $— $144 $— $288 
OtherOther
Other
Other
Revenue from contracts with customers
Revenue from contracts with customers
Revenue from contracts with customersRevenue from contracts with customers$$— $— $— $— $— $— $— 
Total revenue from contracts with customersTotal revenue from contracts with customers$6,529 $1,793 $3,199 $1,575 $1,624 $539 $892 $288 
Other revenue sources(a)
Other revenue sources(a)
$35 $(12)$15 $$$$26 $22 
Other revenue sources(a)
Other revenue sources(a)
Total revenuesTotal revenues$6,564 $1,781 $3,214 $1,581 $1,628 $545 $918 $310 
(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.
81

FINANCIAL STATEMENTSREVENUE
Six Months Ended June 30, 2023
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
   Residential$5,591 $1,539 $2,976 $1,146 $1,830 $442 $634 $ 
   General3,707 1,195 1,755 727 1,028 276 482  
   Industrial1,718 616 546 357 189 127 428  
   Wholesale1,048 261 642 578 64 21 124  
   Other revenues333 127 265 138 127 49 47  
Total Electric Utilities and Infrastructure revenue from contracts with customers$12,397 $3,738 $6,184 $2,946 $3,238 $915 $1,715 $ 
Gas Utilities and Infrastructure
   Residential$686 $ $ $ $ $244 $ $442 
   Commercial333     89  244 
   Industrial77     15  61 
   Power Generation       46 
   Other revenues65     11  24 
Total Gas Utilities and Infrastructure revenue from contracts with customers$1,161 $ $ $ $ $359 $ $817 
Other
Revenue from contracts with customers$16 $ $ $ $ $ $ $ 
Total Revenue from contracts with customers$13,574 $3,738 $6,184 $2,946 $3,238 $1,274 $1,715 $817 
Other revenue sources(a)
$280 $24 $76 $12 $54 $24 $40 $94 
Total revenues$13,854 $3,762 $6,260 $2,958 $3,292 $1,298 $1,755 $911 
(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.
82

FINANCIAL STATEMENTSREVENUE
Six Months Ended June 30, 2022
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
   Residential$5,392 $1,567 $2,768 $1,154 $1,614 $407 $650 $— 
   General3,421 1,110 1,615 695 920 227 469 — 
   Industrial1,596 572 544 378 166 68 412 — 
   Wholesale1,255 216 800 630 170 58 181 — 
   Other revenues404 203 458 349 109 41 (13)— 
Total Electric Utilities and Infrastructure revenue from contracts with customers$12,068 $3,668 $6,185 $3,206 $2,979 $801 $1,699 $— 
Gas Utilities and Infrastructure
   Residential$769 $— $— $— $— $243 $— $526 
   Commercial396 — — — — 102 — 294 
   Industrial91 — — — — 13 — 78 
   Power Generation— — — — — — — 47 
   Other revenues181 — — — — 12 — 137 
Total Gas Utilities and Infrastructure revenue from contracts with customers$1,437 $— $— $— $— $370 $— $1,082 
Other
Revenue from contracts with customers$15 $— $— $— $— $— $— $— 
Total Revenue from contracts with customers$13,520 $3,668 $6,185 $3,206 $2,979 $1,171 $1,699 $1,082 
Other revenue sources(a)
$55 $$21 $$$12 $41 $33 
Total revenues$13,575 $3,669 $6,206 $3,213 $2,983 $1,183 $1,740 $1,115 
(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.
83

FINANCIAL STATEMENTSREVENUE
The following table presents the reserve for credit losses for trade and other receivables.
Three Months Ended June 30, 2022 and 2023
DukeDuke
DukeEnergyProgressEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Balance at March 31, 2022$139 $52 $51 $31 $21 $$$17 
Write-Offs(31)(16)(9)(5)(5)— — (5)
Credit Loss Expense20 — — 
Other Adjustments— — — — 
Balance at June 30, 2022$135 $52 $52 $31 $21 $$$15 
Balance at March 31, 2023$214 $70 $75 $45 $30 $$$14 
Write-Offs(43)(20)(18)(10)(8)  (5)
Credit Loss Expense23 6 12 4 8 1  4 
Other Adjustments5 1 4 4     
Balance at June 30, 2023$199 $57 $73 $43 $30 $8 $4 $13 
Six Months Ended June 30, 2022 and 2023
DukeDuke
DukeEnergyProgressEnergy
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Three Months Ended March 31, 2023 and 2024
Duke
Duke
Duke
Duke
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Balance at December 31, 2021$121 $42 $36 $21 $16 $$$15 
(in millions)
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Balance at December 31, 2022
Write-Offs
Write-Offs
Write-OffsWrite-Offs(54)(25)(19)(7)(13)— — (6)
Credit Loss ExpenseCredit Loss Expense44 13 19 13 — — 
Other AdjustmentsOther Adjustments24 22 16 11 — — — 
Balance at June 30, 2022$135 $52 $52 $31 $21 $$$15 
Balance at March 31, 2023
Balance at December 31, 2022$216 $68 $81 $44 $36 $$$14 
Balance at December 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023
Write-OffsWrite-Offs(85)(40)(40)(19)(20)  (6)
Credit Loss ExpenseCredit Loss Expense39 13 18 5 13 2  5 
Other AdjustmentsOther Adjustments29 16 14 13 1    
Balance at June 30, 2023$199 $57 $73 $43 $30 $8 $4 $13 
Balance at March 31, 2024
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.
80

FINANCIAL STATEMENTSREVENUE
The aging of trade receivables is presented in the table below.
June 30, 2023
DukeDuke
DukeEnergyProgressEnergy
March 31, 2024March 31, 2024
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unbilled Revenue(a)(b)
Unbilled Revenue(a)(b)
$1,123 $441 $354 $215 $139 $3 $26 $5 
CurrentCurrent2,148 593 1,022 535 485 27 104 102 
1-31 days past due1-31 days past due244 58 124 51 73 3 15 8 
31-61 days past due31-61 days past due108 25 48 37 11 5 9 5 
61-91 days past due61-91 days past due41 9 11 5 6 2 8 4 
91+ days past due91+ days past due251 74 69 22 47 54 20 5 
Deferred Payment Arrangements(c)
Deferred Payment Arrangements(c)
112 36 46 30 16 3  1 
Trade and Other ReceivablesTrade and Other Receivables$4,027 $1,236 $1,674 $895 $777 $97 $182 $130 
84

FINANCIAL STATEMENTSREVENUE
December 31, 2022
DukeDuke
DukeEnergyProgressEnergy
December 31, 2023December 31, 2023
Duke
Duke
Duke
Duke
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unbilled Revenue(a)(b)
$1,457 $486 $355 $232 $123 $20 $28 $160 
(in millions)
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unbilled Revenue(a)(d)
CurrentCurrent2,347 577 1,059 637 417 15 52 265 
1-31 days past due1-31 days past due261 96 60 15 45 17 15 
31-61 days past due31-61 days past due123 23 61 49 12 
61-91 days past due61-91 days past due74 25 18 11 
91+ days past due91+ days past due209 70 74 27 47 26 
Deferred Payment Arrangements(c)
Deferred Payment Arrangements(c)
160 57 62 35 27 — 
Trade and Other ReceivablesTrade and Other Receivables$4,631 $1,334 $1,689 $1,004 $680 $79 $116 $450 
(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)In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility. Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and 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 receivablesreported as sales. Accordingly, the receivables sold are not reflectedReceivables on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana.Sheets. See Note 12 for further information. These receivables for unbilled revenues are $122 million and $172 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of June 30, 2023, and $148 million and $260 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2022.
(c)Due to ongoing financial hardships impacting customers, Duke Energy has permitted customers to defer payment of past-due amounts through installment payment plans.
(d)Duke Energy Ohio and Duke Energy Indiana sold, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and accounted for the transfers of receivables as sales. Accordingly, the receivables sold were not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. These receivables for unbilled revenues are $141 million and $197 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2023.

14. STOCKHOLDERS' EQUITY
Basic EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as equity forward sale agreements or convertible debt, were exercised or settled. Duke Energy applies the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted EPS, if applicable. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common stock during the restricted stock unit’s vesting periods. Dividends declared on preferred stock are recorded on the Condensed Consolidated Statements of Operations as a reduction of net income to arrive at net income available to Duke Energy common stockholders. Dividends accumulated on preferred stock are an adjustment to net income used in the calculation of basic and diluted EPS.
8581

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 June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
(in millions, except per share amounts)(in millions, except per share amounts)2023202220232022(in millions, except per share amounts)20242023
Net (Loss) Income available to Duke Energy common stockholders$(234)$893 $531 $1,711 
Less: (Loss) Income from discontinued operations attributable to Duke Energy common stockholders(948)27 (1,093)39 
Net Income available to Duke Energy common stockholders
Less: Loss from discontinued operations attributable to Duke Energy common stockholders
Accumulated preferred stock dividends adjustmentAccumulated preferred stock dividends adjustment(12)(12) — 
Less: Impact of participating securitiesLess: Impact of participating securities1 — 2 
Income from continuing operations available to Duke Energy common stockholdersIncome from continuing operations available to Duke Energy common stockholders$701 $854 $1,622 $1,671 
Loss from discontinued operations, net of taxLoss from discontinued operations, net of tax$(955)$(18)$(1,164)$(33)
Loss from discontinued operations, net of tax
Loss from discontinued operations, net of tax
Add: Loss attributable to NCIAdd: Loss attributable to NCI7 45 7172 
(Loss) Income from discontinued operations attributable to Duke Energy common stockholders$(948)$27 $(1,093)$39 
Loss from discontinued operations attributable to Duke Energy common stockholders
Weighted average common shares outstanding – basic and diluted
Weighted average common shares outstanding – basic and diluted
Weighted average common shares outstanding – basic and dilutedWeighted average common shares outstanding – basic and diluted771 770 770 770 
EPS from continuing operations available to Duke Energy common stockholdersEPS from continuing operations available to Duke Energy common stockholders
EPS from continuing operations available to Duke Energy common stockholders
EPS from continuing operations available to Duke Energy common stockholders
Basic and diluted(a)
Basic and diluted(a)
Basic and diluted(a)
Basic and diluted(a)
$0.91 $1.11 $2.10 $2.17 
(Loss) Earnings Per Share from discontinued operations attributable to Duke Energy common stockholders
Loss Per Share from discontinued operations attributable to Duke Energy common stockholders
Loss Per Share from discontinued operations attributable to Duke Energy common stockholders
Loss Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and diluted(a)
Basic and diluted(a)
Basic and diluted(a)
Basic and diluted(a)
$(1.23)$0.03 $(1.41)$0.05 
Potentially dilutive items excluded from the calculation(b)
Potentially dilutive items excluded from the calculation(b)
2 2 
Dividends declared per common shareDividends declared per common share$1.005 $0.985 $2.010 $1.970 
Dividends declared on Series A preferred stock per depositary share(c)
Dividends declared on Series A preferred stock per depositary share(c)
$0.359 $0.359 $0.719 $0.719 
Dividends declared on Series B preferred stock per share(d)
Dividends declared on Series B preferred stock per share(d)
$ $— $24.375 $24.375 
(a)For the periods presented subsequent to issuance in April 2023, the convertible notes were excluded from the calculations of diluted EPS because the effect was antidilutive.
(b)Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.
(c)5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation preference per depositary share.
(d)4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends are payable semiannually in arrears on the 16th day of March and September. The preferred stock has a $1,000 liquidation preference per share.
Common Stock
In November 2022, Duke Energy filed a prospectus supplement and executed an Equity Distribution Agreement (EDA) under which it may sell up to $1.5 billion of its common stock through an at-the-market (ATM) offering program, including an equity forward sales component. Under the terms of the EDA, Duke Energy may issue and sell shares of common stock through September 2025.
In March 2024, Duke Energy marketed its first tranche, issuing 0.8 million shares of common stock through an equity forward transaction under the ATM program with an initial forward price of $92.77 per share. The equity forward requires Duke Energy to either physically settle the transaction by issuing shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or net settle in whole or in part through the delivery or receipt of cash or shares. The settlement alternative is at Duke Energy's election. No amounts have or will be recorded in Duke Energy's Condensed Consolidated Financial Statements with respect to the ATM offering until settlement of the equity forward occurs, which is expected during or prior to December 2024. The initial forward sale price will be subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the relevant forward sale agreement. Until settlement of the equity forward, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method.
15. 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.
82

FINANCIAL STATEMENTSEMPLOYEE BENEFIT PLANS
QUALIFIED PENSION PLANS
The following tables include the components of net periodic pension costs for qualified pension plans.
Three Months Ended June 30, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Three Months Ended March 31, 2024Three Months Ended March 31, 2024
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service costService cost$29 $9 $7 $5 $4 $ $2 $1 
Interest cost on projected benefit obligationInterest cost on projected benefit obligation86 21 27 13 15 5 7 3 
Expected return on plan assetsExpected return on plan assets(147)(40)(49)(23)(26)(6)(10)(5)
Amortization of actuarial lossAmortization of actuarial loss3 1 1 1     
Amortization of prior service creditAmortization of prior service credit(4)     (1)(2)
Amortization of settlement chargesAmortization of settlement charges4 2 1 1 1  1 1 
Net periodic pension costsNet periodic pension costs$(29)$(7)$(13)$(3)$(6)$(1)$(1)$(2)
86

FINANCIAL STATEMENTSEMPLOYEE BENEFIT PLANS
Three Months Ended June 30, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$41 $14 $11 $$$$$
Interest cost on projected benefit obligation59 13 18 10 
Expected return on plan assets(141)(38)(47)(22)(24)(6)(10)(6)
Amortization of actuarial loss23 
Amortization of prior service credit(4)(1)— — — — (1)(2)
Amortization of settlement charges— — — — — 
Net periodic pension costs$(20)$(5)$(11)$(2)$(5)$(1)$(1)$(3)
Six Months Ended June 30, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service cost$59 $19 $16 $10 $7 $1 $3 $2 
Interest cost on projected benefit obligation172 42 54 25 29 9 14 5 
Expected return on plan assets(294)(80)(99)(46)(52)(12)(20)(10)
Amortization of actuarial loss5 1 2 1 1  1  
Amortization of prior service credit(7)     (1)(4)
Amortization of settlement charges9 4 2 2 1  1 2 
Net periodic pension costs$(56)$(14)$(25)$(8)$(14)$(2)$(2)$(5)
Six Months Ended June 30, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
Three Months Ended March 31, 2023Three Months Ended March 31, 2023
Duke
Duke
Duke
Duke
(in millions)
(in millions)
(in millions)(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmontEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Service costService cost$81 $26 $23 $14 $10 $$$
Interest cost on projected benefit obligationInterest cost on projected benefit obligation117 27 36 16 20 10 
Expected return on plan assetsExpected return on plan assets(281)(76)(93)(44)(48)(11)(19)(12)
Amortization of actuarial lossAmortization of actuarial loss47 10 13 
Amortization of prior service creditAmortization of prior service credit(9)(2)— — — — (1)(4)
Amortization of settlement chargesAmortization of settlement charges— — — — 
Net periodic pension costsNet periodic pension costs$(41)$(12)$(20)$(6)$(12)$(1)$(1)$(6)
NON-QUALIFIED PENSION PLANS
Net periodic pension costs for non-qualified pension plans were not material for the three and six months ended June 30, 2023,March 31, 2024, and 2022.2023.
OTHER POST-RETIREMENT BENEFIT PLANS
Net periodic costs for OPEB plans were not material for the three and six months ended June 30, 2023,March 31, 2024, and 2022.2023.
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FINANCIAL STATEMENTSINCOME TAXES
16. INCOME TAXES
On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA created a new, zero-emission nuclear power PTC available for taxpayers beginning January 1, 2024. In the first quarter of 2024, Duke Energy Carolinas and Duke Energy Progress recorded a PTC deferred tax asset of approximately $107 million and $14 million, respectively. These amounts represent the net realizable value of the PTCs, which were deferred to a regulatory liability. The Subsidiary Registrants will work with the state utility commissions on the best regulatory process to pass the net realizable value back to customers over time. See Note 4 for additional information on Duke Energy Carolinas' approval for a stand-alone rider starting January 1, 2025. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.
EFFECTIVE TAX RATES
The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.
Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
Three Months Ended
Three Months Ended
Three Months Ended
March 31,March 31,
202420242023
Duke EnergyDuke Energy13.7 %11.3 %13.7 %7.4 %Duke Energy13.4 %13.8 %
Duke Energy CarolinasDuke Energy Carolinas10.6 %7.3 %11.0 %7.4 %Duke Energy Carolinas11.5 %11.4 %
Progress EnergyProgress Energy16.7 %16.8 %16.7 %16.4 %Progress Energy16.5 %16.7 %
Duke Energy ProgressDuke Energy Progress14.1 %13.8 %14.4 %13.9 %Duke Energy Progress15.0 %14.6 %
Duke Energy FloridaDuke Energy Florida19.9 %20.2 %19.9 %20.1 %Duke Energy Florida19.4 %19.9 %
Duke Energy OhioDuke Energy Ohio15.5 %13.8 %16.2 %(54.7)%Duke Energy Ohio16.8 %16.7 %
Duke Energy IndianaDuke Energy Indiana17.4 %8.6 %17.3 %(48.9)%Duke Energy Indiana17.3 %17.2 %
PiedmontPiedmont25.0 %85.7 %17.8 %11.3 %Piedmont19.6 %17.7 %
The increase in the ETR for Duke EnergyPiedmont for the three and six months ended June 30, 2023,March 31, 2024, was primarily due to a decrease in the amortization of excess deferred taxes.EDIT.
The increase in the ETR for Duke Energy Carolinas for the three and six months ended June 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes.
83
The increase in the ETR for Duke Energy Ohio for the three months ended June 30, 2023, was primarily due to the amortization of excess deferred taxes in relation to higher pretax income.

The increase in the ETR for Duke Energy Ohio for the six months ended June 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes related to the MGP Settlement recorded in the prior year.
FINANCIAL STATEMENTSSUBSEQUENT EVENTS
The increase in the ETR for Duke Energy Indiana for the three months ended June 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes related to the coal ash impairment based on the Indiana Supreme Court Opinion recorded in the prior year.
The increase in the ETR for Duke Energy Indiana for the six months ended June 30, 2023, was primarily due to the coal ash impairment based on the Indiana Supreme Court Opinion and the associated amortization of excess deferred taxes recorded in the prior year.
The decrease in the ETR for Piedmont for the three months ended June 30, 2023, was primarily due to certain favorable tax credits recorded in the prior year, in relation to pretax losses.
The increase in the ETR for Piedmont for the six months ended June 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes and certain favorable tax credits recorded in the prior year.
17. SUBSEQUENT EVENTS
For information on subsequent events related to dispositions, regulatory matters, and commitments and contingencies, debt and credit facilities, derivatives, and variable interest entities see Notes 2, 4, 5, 6, 9, and 5,12, respectively.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.
DUKE ENERGY
Duke Energy is an energy company headquartered in Charlotte, North Carolina. 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 sixthree months ended June 30, 2023,March 31, 2024, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.2023.
Executive Overview
Advancing Our Clean Energy Transformation
Transition. During the sixthree months ended June 30, 2023,March 31, 2024, we continued to execute on our clean energy transformation,transition, remaining focused on reliability and affordability while delivering increasingly clean energy and providing strong, sustainable value for shareholders, customers, communities and employees.
In November 2022, the Duke Energy Board of Directors approved pursuing the sale of the Commercial Renewables business, excluding the offshore wind contract for Carolina Long Bay. We've entered into purchase and sale agreements with affiliates of Brookfield for the sale of the utility-scale solar and wind group in June 2023 and with affiliates of ArcLight for the distributed generation group in July 2023. Both transactions are expected to close by the end of 2023. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for additional information.
Renewable energy remains a critical component of our generation mix and we've continued to actively expand the use of these assets across our service territories. In June 2023, we announced an agreement with Ranger Power for up to 199 MW of solar power in Indiana. Pending regulatory approval, energy generated from this facility will be sold to Duke Energy Indiana and serve the equivalent of roughly 35,000 homes. In July 2023, we announced a new utility-scale solar panel installation in Kentucky. Located on the rooftop of a facility owned by Amazon, the site complements our emerging solar portfolio in the state and demonstrates our commitment to furthering the clean energy goals of both the Company and our customers.
In January 2024, we filed supplemental modeling and analysis with the NCUC and PSCSC related to our combined systemwide Carolinas Resource Plan filed in August 2023. These updates were necessary due to substantially increased load forecasts resulting from continued economic development successes in the Carolinas occurring since the systemwide integrated resource plan was prepared. In March 2023,2024, we began operatingfiled for CPCNs for new generation facilities at the largestsites of the current Marshall Steam Station and Roxboro Plant in the Carolinas. Our energy transition strategy continues to focus on delivering a path to cleaner energy in a manner that protects grid reliability and affordability, all while meeting the energy demands of the growing and economically vibrant communities that we serve.
As we continue to strengthen our grid and bring clean energy resources online, our customers are important partners in our clean energy future. In January 2024, we received approval for PowerPairSM, a new incentive-based pilot program for installing home solar generation with battery systemenergy storage in North Carolina, an 11-MW project in Onslow County, which will operate in conjunction with an adjacent 13-MW solar facility located on a leased site within Marine Corps Base (MCB) Camp Lejeune. Both projects are connected to aour Duke Energy substationCarolinas and will be used to serve all Duke Energy Progress customers. As partNorth Carolina service territories. Enrollment options for residential customers that participate in the pilot include a one-time incentive of an ongoing collaboration with the Department of Defense, further work could enable the solar and battery systemsup to improve the resiliency of MCB Camp Lejeune against outages.
In March 2023, Duke Energy Florida announced two new solar projects as part of Clean Energy Connection, the company's community solar program. Once complete, each 74.9-MW solar facility will generate enough carbon-free electricity to power what would be the equivalent to around 23,000 homes. Additionally, in March 2023, Duke Energy Florida announced its first floating solar array pilot. The project will feature more than 1,800 floating solar modules and occupy approximately 2 acres of water surface on an existing cooling pond at the Duke Energy Hines Energy Complex in Bartow. The pilot is part of Duke Energy's Vision Florida program, which is designed to test innovative projects such as microgrids and battery energy storage, among others, to prepare the power grid for a clean energy future. We now operate 1,200 MW of solar in Florida, with plans to continue adding approximately 300 MW a year going forward.
While transitioning to cleaner energy resources, affordability continues to be a focus for Duke Energy. Our cost reduction initiatives are grounded in our culture of safety and serving our customers with excellence, while maintaining our assets$9,000 for the future. We’re leveraging digital innovation, data analytics, and process improvements to increase efficiency, making targeted capital investments to reduce maintenance costs, and reshaping our operations to streamline work and lower costs. Coming into 2023, we implementedinstallation of a $300 million cost mitigation initiative to address interest rate and inflation headwinds. These cost reductions are primarily focused on corporate and support areas, and remain on track, but the earnings benefit of the cost reductions for the first half of 2023 has been more than offset by the impact of unseasonably mild weather.solar plus battery system.
Regulatory Activity. During the sixthree months ended June 30, 2023,March 31, 2024, we continued to monitor developments while movingmove our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.
In April 2024, we filed formal requests for new base rates across several jurisdictions including Duke Energy Florida, Duke Energy Indiana and Piedmont.
Duke Energy Florida filed a three-year rate plan that would begin in January 2023,2025, once its current base rate settlement agreement concludes at the end of 2024, and proposed approximately $4.9 billion in investments to reduce outages, expand solar generation, and increase generation unit efficiency. The overall additional base rate revenue requirement would be $820 million over the three-year period and, if approved by the FPSC, will facilitate improved grid reliability for a growing customer base, reduced fuel consumption at existing power plants, and the construction of 14 new solar plants, providing 1,050 MW of clean energy to Florida's grid.
Duke Energy Indiana filed a general rate case with the IURC requesting an overall increase in revenues of $492 million. This is the first base rate case filed by Duke Energy Indiana since 2019 and reflects strategic investments to improve grid reliability and security, serve a growing customer base, and meet environmental regulations. These investments, which include approximately 345 miles of new power lines expected to be constructed through 2025, will support the more than 60,000 new customers anticipated since our last base rate case.
Piedmont filed a general rate case with the NCUC requesting an overall increase in revenues of $159 million. This is the first base rate case filed by Piedmont in North Carolina since 2021 and reflects significant investments to support ongoing service reliability, system growth, and compliance with federal pipeline safety regulations in addition to two energy reliability centers in eastern North Carolina.
Also, in April 2024, Duke Energy Progress issued $177 million of storm recovery bonds, our first issuance under South Carolina's 2022 securitization legislation, which provided the necessary framework for us to lower the bill impacts on our customers related to critical storm restoration activities.
In January 2024, Duke Energy Carolinas filed a South Carolina rate case requesting an overall increase in North Carolina, and discoveryrevenues of approximately $323 million, prior to proposed mitigation efforts including the acceleration of the return of certain EDIT balances. This is ongoing. Thisthe first base rate case incorporates elements of PBR and MYRP as allowed under HB 951. HB 951 provides the framework for many of the benefits of modernized regulatory constructs in North Carolina under the direction of the NCUC. Duke Energy Progress filed its first rate case utilizing these benefits, including both PBR and MYRP, in North Carolina in October 2022, and reached partial settlements on key matters in April and May 2023. We expect orders from the NCUC on the Duke Energy Progress rate case in the third quarter of this year and on theby Duke Energy Carolinas rate case in the fourth quarter of this year.
In February 2023,state since 2018 and reflects the PSCSC approved a constructive comprehensive settlement with all parties in the Duke Energy Progress South Carolina rate case. Duke Energy Progress implemented new customer rates effective April 1, 2023. We also made progress on our South Carolina storm securitization filings, completing our petition for a financing order with the PSCSC in May 2023.
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In February 2023, the Indiana Courtretail allocation of Appeals issued an opinion findingsignificant investments, including approximately $1.5 billion of transmission and distribution assets and certain coal ash related expenditures should be disallowed under a statute specific to federally mandated projects and also denied a petition for rehearing on the matter.
In the Midwest, as it relates to our Duke Energy Ohio natural gas base rate case, we filed a stipulation on key matters with all parties except the OCC in April 2023.compliance costs.
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.
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MD&AMATTERS IMPACTING FUTURE RESULTS
Regulatory Matters
Coal Ash Costs
Future spending of coal ash costs, including amounts recorded for depreciation and liability accretion, is expected to be recovered in future rate cases or rider filings. The majority of spend is expected to occur over the next 10 to 15 years.
Duke Energy Indiana has interpreted the Coal Combustion Residuals (CCR) ruleCCR Rule to identify the coal ash basin sites impacted and has assessed the amounts of coal ash subject to the rule and a methodestablished methods of compliance. Interpretation of the requirements of the CCR ruleRule is subject to further legal challenges and regulatory approvals, which could result in additional coal ash basin closure requirements, higher costs of compliance and greater AROs.asset retirement obligations. Additionally, Duke Energy Indiana has retired facilities that are not subject to the CCR rule.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 application and interpretation of the CCR rule for some of the ash basins at its Gallagher Station. In response to the letter, Duke Energy Indiana has submitted revised closure plans for those basins to the Indiana Department of Environmental Management (IDEM). Those closure plans are pending review by IDEM. For more information, see "Other Matters" and Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters."
Fuel Cost Recovery
As a result of rapidly rising commodity costs during 2022, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues led to an increase in the under collection of fuel costs from customers in jurisdictions including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. These amounts have been deferred in regulatory assets and have impacted the cash flows of the registrants, including increased borrowings to temporarily finance related expenditures until recovery. Natural gas costs have stabilized in 2023 and the Duke Energy Registrants are making progress collecting deferred fuel balances. Regulatory filings have now been made and approved for recovery of all remaining uncollected 2022 fuel costs. Across all jurisdictions, Duke Energy is currently on pace to recover $1.7approximately $1.9 billion of deferred fuel costs in 2023, and expects deferred fuel balances to be back2024.We anticipate being in line with our historical normsaverage balance of deferred fuel costs by the end of 2024.this year.
Commercial RenewablesEnvironmental Regulations
In November 2022,April 2024, the EPA issued a final rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities. The EPA also issued a final rule under section 111 of the Clean Air Act regulating GHG emissions from existing coal-fired and new natural gas-fired power plants. Duke Energy committed to a plan to sellis reviewing these final rules and analyzing the Commercial Renewables Disposal Groups. The Commercial Renewables Disposal Groups were classified as held for sale and as discontinued operations inpotential impacts they could have on the fourth quarter of 2022. Duke Energy entered into purchase and sale agreements with affiliates of Brookfield in June 2023 for the sale of the utility-scale solar and wind group and with affiliates of ArcLight in July 2023 for the distributed generation group. Duke Energy expects to complete the disposition of all of the Commercial Renewables Disposal Groups by the end of 2023. If necessary, the impairments recorded for the disposal groups will be updated through the end of the disposal process, and any required adjustmentsCompany, which could be material. Proceeds fromCost recovery for future expenditures will be pursued through the sales are expectednormal ratemaking process with federal and state utility commissions, which permit recovery of necessary and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is evaluating potential legal challenges to be used for debt avoidance.the final rules. For more information, see Note 2 to the Condensed Consolidated Financial Statements, "Dispositions."Other Matters."
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. Originally, Duke Energy (Parent) was named in multiple lawsuits arising out of this winter storm, but the plaintiffs have represented to the court that they will dismiss Duke Energy (Parent) from all cases. The legal actions related to project companies in this matter will transfer to affiliates of Brookfield. For more information, see Note 5 to the Condensed Consolidated Financial Statements, "Commitments and Contingencies."
Supply Chain
In 2023, Duke Energy has experienced modest improvement in the stability of the markets for key materials purchased and used by the Company. The Company continues to monitor the ongoing stability of markets for key materials and other developments, including proposed federal regulations,public policy outcomes, that could disrupt or impact the Company's supply chain and, as a result, may impact Duke Energy's execution of its capital plan, future financial results or the achievement of its clean energy goals.
Goodwill
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2023. As of this date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio. While no goodwill impairment charges were recorded in 2023, the potential for continued interest rate pressures, and the related impact on the weighted average cost of capital, without timely or adequate updates to the regulated allowed return on equity or deteriorating economic conditions impacting GU&I's future cash flows or equity valuations of peer companies could impact the estimated fair value of GU&I, and goodwill impairment charges could be recorded in the future.
Other
Duke Energy is monitoringcontinues to monitor general market conditions, including risingthe potential for continued interest rates, and evaluatingrate pressures on the Company's cost of capital, which may impact toDuke Energy's execution of its capital plan, future financial results, or the achievement of operations, financial position and cash flows in the future.its clean energy goals.
Results of Operations
Non-GAAP Measures
Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures, adjusted earnings and adjusted EPS, discussed below. Non-GAAP financial measures are numerical measures of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.
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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 MattersDiscontinued operations primarily represents the net impact of chargesoperating results and impairments recognized related to the 2022 Indiana Supreme Court ruling on coal ash.sale of the Commercial Renewables business disposal group.
Discontinued operations includes
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Three Months Ended March 31, 2024, as compared to March 31, 2023
GAAP reported EPS was $1.44 for the impairmentfirst quarter of 2024 compared to $1.01 in the first quarter of 2023. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments on the sale of the Commercial Renewables business in the current year and results from Duke Energy's Commercial Renewables Disposal Groups.
Three Months Ended June 30, 2023, as compared to June 30, 2022
GAAP reported loss per share was $(0.32) for the second quarter of 2023 compared to GAAP reported earnings per share of $1.14 in the second quarter of 2022. In addition to the drivers below, GAAP reported EPS decreased primarily due to the impairment on the sale of the Commercial Renewables business.prior year.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s secondfirst quarter 20232024 adjusted EPS was $0.91$1.44 compared to $1.09$1.20 for the secondfirst quarter of 2022.2023. The decreaseincrease in adjusted EPS was primarily due to unfavorableimproved weather lower volumes and higher interest expense, partially offset byfavorable rate case impacts along with growth from riders and other margin, rate case impacts and lower operations and maintenancepartially offset by higher interest expense.
The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
Three Months Ended June 30, Three Months Ended March 31,
20232022
202420242023
(in millions, except per share amounts)(in millions, except per share amounts)EarningsEPS EarningsEPS(in millions, except per share amounts)EarningsEPS EarningsEPS
GAAP Reported (Loss) Earnings/GAAP Reported EPS$(234)$(0.32)$893 $1.14 
GAAP Reported Earnings/GAAP Reported EPS
GAAP Reported Earnings/GAAP Reported EPS
GAAP Reported Earnings/GAAP Reported EPS
Adjustments:Adjustments:
Regulatory Matters(a)
  (16)(0.02)
Discontinued Operations(b)
948 1.23 (26)(0.03)
Discontinued Operations(a)
Discontinued Operations(a)
Discontinued Operations(a)
Adjusted Earnings/Adjusted EPSAdjusted Earnings/Adjusted EPS$714 $0.91 $851 $1.09 
(a)Net of $2 million recorded within Noncontrolling Interests and $18 million tax benefit.
(b)Recorded in Loss from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.
Six Months Ended June 30, 2023, as compared to June 30, 2022
GAAP Reported EPS was $0.69 for the six months ended June 30, 2023, compared to $2.22 for the six months ended June 30, 2022. In addition to the drivers below, GAAP reported EPS decreased primarily due to the impairment on the sale of the Commercial Renewables business.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $2.10 for the six months ended June 30, 2023, compared to $2.38 for the six months ended June 30, 2022. The decrease in adjusted EPS was primarily due to unfavorable weather, lower volumes and higher interest expense, partially offset by growth from riders and other margin, rate case impacts and lower operations and maintenance expense.
The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
 Six Months Ended June 30,
20232022
(in millions, except per share amounts)EarningsEPSEarningsEPS
GAAP Reported Earnings/GAAP Reported EPS$531 $0.69 $1,711 $2.22 
Adjustments:
Regulatory Matters(a)
  157 0.21 
Discontinued Operations(b)
1,093 1.41 (38)(0.05)
Adjusted Earnings/Adjusted EPS$1,624 $2.10 $1,830 $2.38 
(a)Net of $80 million tax benefit. $211 million recorded within Impairment of assets and other charges, $46 million within Regulated electric (Operating revenues) and $20 million within Noncontrolling Interests.
(b)Recorded in Loss from Discontinued Operations, net of tax, and Net Loss Attributable to Noncontrolling Interests.
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MD&ASEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE
SEGMENT RESULTS
The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.
Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.
Electric Utilities and Infrastructure
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
(in millions)(in millions)20232022Variance20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$6,250 $6,135 $115 $12,648 $12,137 $511 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power2,058 1,991 67 4,454 3,828 626 
Operation, maintenance and otherOperation, maintenance and other1,341 1,328 13 2,610 2,754 (144)
Depreciation and amortizationDepreciation and amortization1,188 1,110 78 2,284 2,241 43 
Property and other taxesProperty and other taxes337 331 685 668 17 
Impairment of assets and other chargesImpairment of assets and other charges5 (8)13 12 206 (194)
Total operating expensesTotal operating expenses4,929 4,752 177 10,045 9,697 348 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net27 24 28 23 
Operating IncomeOperating Income1,348 1,386 (38)2,631 2,445 186 
Other Income and Expenses, netOther Income and Expenses, net127 153 (26)257 267 (10)
Interest ExpenseInterest Expense444 391 53 896 767 129 
Income Before Income TaxesIncome Before Income Taxes1,031 1,148 (117)1,992 1,945 47 
Income Tax ExpenseIncome Tax Expense158 158 — 307 241 66 
Less: Income Attributable to Noncontrolling InterestLess: Income Attributable to Noncontrolling Interest23 16 44 37 
Segment IncomeSegment Income$850 $974 $(124)$1,641 $1,697 $(56)
Duke Energy Carolinas GWh salesDuke Energy Carolinas GWh sales20,638 22,022 (1,384)41,557 44,571 (3,014)
Duke Energy Carolinas GWh sales
Duke Energy Carolinas GWh sales
Duke Energy Progress GWh salesDuke Energy Progress GWh sales15,454 16,915 (1,461)30,799 34,884 (4,085)
Duke Energy Florida GWh salesDuke Energy Florida GWh sales11,400 12,340 (940)20,390 22,242 (1,852)
Duke Energy Ohio GWh salesDuke Energy Ohio GWh sales5,695 5,564 131 11,338 11,561 (223)
Duke Energy Indiana GWh salesDuke Energy Indiana GWh sales6,927 7,644 (717)14,277 15,594 (1,317)
Total Electric Utilities and Infrastructure GWh salesTotal Electric Utilities and Infrastructure GWh sales60,114 64,485 (4,371)118,361 128,852 (10,491)
Net proportional MW capacity in operationNet proportional MW capacity in operation49,912 49,459 453 
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MD&ASEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE
The residential decoupling mechanism adjusts for variations in residential use per customer, including those due to weather and conservation, and is calculated based on an annual target revenue-per-customer.
Three Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
EU&I’s lower segment income is due toresults were driven by higher revenues from rate cases across multiple jurisdictions, improved weather, and higher weather-normal retail sales volumes, partially offset by higher depreciation related to higheradditional plant in service and higher interest expense.. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
a $264$149 million increase in fuelretail sales due to improved weather compared to prior year, including impacts of decoupling;
a $147 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Kentucky;
a $40 million increase in weather-normal retail sales volumes;
a $39 million increase in rider revenues primarily due to higher fuel prices and cost recoverya decrease in the current year;return of EDIT to customers at Duke Energy Carolinas; and
a $114$36 million increase in storm revenues at Duke Energy Florida due to hurricanes Ian and Nicole collections;
a $41 million increase in price due to 2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in prior year, higher pricing at Duke Energy Progress from the South Carolina retail rate case and interim rates from the North Carolina retail rate case, and base rate adjustments related to annual increases from the 2021 Settlement Agreement at Duke Energy Florida; and
a $10 million increase due to the provision for rate refund recognized in the prior year related to the Indiana Supreme Court ruling on recovery of certain coal ash costs.Hurricane Idalia collections.
Partially offset by:
a $163$49 million decrease in retail sales due to unfavorable weather compared to prior year;
a $104 million decrease in wholesalefuel revenues primarily due to net lower capacity volumes at Duke Energy Progress and lower demand at Duke Energy Florida; and
a $43 million decreasefuel cost recovery in weather-normal retail sales volumes.the current year.
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MD&ASEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE
Operating Expenses.Expenses. The variance was driven primarily by:
a $78$129 million increase in depreciation and amortization primarily due to higher plant in service;
a $67 million increase in fuel used in electric generation and purchased power due to higher fuel priceslower amortization of the DOE settlement regulatory liability and higher amortizations of deferred fuel;
a $13 million increase in impairment of assets and other charges primarily due to a prior year adjustment of the South Carolina Supreme Court decision on coal ashdepreciable base at Duke Energy Carolinas;Florida, and higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress; and
a $13$47 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, higher storm and nuclear outage costs at Duke Energy Progress, and higher storm costs at Duke Energy Carolinas.
Partially offset by:
a $41 million decrease in fuel used in electric generation and purchased power due to lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio, partially offset by lower storm costschange in the current year.generation mix and higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress; and
Gains on Sales of Other Assetsan $11 million decrease in property and Other, net. Theincrease wasother taxes primarily due to the sale of the Mint Street parking deck.
Other Incomelower franchise and Expenses, net. The decrease is primarily due to the wholesale portion of the Department of Energy settlement for nuclear fuel storage in prior yeargross receipts tax, driven by lower revenues and lower property taxes at Duke Energy Florida.
Interest Expense. The variance was primarily driven by higher interest rates and outstanding debt balances.balances and interest rates.
Income Tax Expense. The increase in tTaxax expense was unchanged primarily due to a decreasean increase in pretax income, partially offset by a decreasean increase in the amortization of excess deferred taxes.EDIT. The ETRs for the three months ended June 30,March 31, 2024, and 2023, were 14.3% and 2022, were 15.3% and 13.815.5%, respectively. The increasedecrease in the ETR was primarily due to a decreasean increase in the amortization of excess deferred taxes.
Six Months Ended June 30, 2023, as compared to June 30, 2022
EU&I’s lower segment income is due to unfavorable weather, lower weather-normal retail sales volumes and higher interest expense, partially offset by the prior year Indiana Supreme Court ruling on recovery of certain coal ash costs and lower storm costs. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
an $897 million increase in fuel revenues primarily due to higher fuel prices and cost recovery in the current year;
a $114 million increase in storm revenues at Duke Energy Florida due to Hurricanes Ian and Nicole collections;
a $78 million increase in price due to 2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in prior year, higher pricing at Duke Energy Progress from the South Carolina retail rate case and interim rates from the North Carolina retail rate case and base rate adjustments related to annual increases from the 2021 Settlement Agreement at Duke Energy Florida;
a $47 million increase due to the provision for rate refund recognized in the prior year related to the Indiana Supreme Court ruling on recovery of certain coal ash costs; and
a $42 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers compared to the prior year at Duke Energy Carolinas and increased Storm Protection Plan rider revenue at Duke Energy Florida.
Partially offset by:
a $354 million decrease in retail sales due to unfavorable weather compared to prior year;
a $179 million decrease in wholesale revenues primarily due to lower capacity revenues at Duke Energy Progress and lower demand at Duke Energy Florida; and
a $142 million decrease in weather-normal retail sales volumes.
Operating Expenses. The variance was driven primarily by:
a $626 million increase in fuel used in electric generation and purchased power due to higher fuel prices and higher amortizations of deferred fuel;
a $43 million increase in depreciation and amortization primarily due to higher plant in service, partially offset by the amortization of the Department of Energy settlement regulatory liability at Duke Energy Florida; and
a $17 million increase in property and other taxes primarily due to higher property tax valuations at Duke Energy Florida and Duke Energy Carolinas, partially offset by favorable property tax true ups at Duke Energy Ohio and Duke Energy Indiana.
Partially offset by:
a $194 million decrease in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs in the prior year, partially offset by a prior year adjustment of the South Carolina Supreme Court decision on coal ash at Duke Energy Carolinas; and
a $144 million decrease in operation, maintenance and other primarily driven by lower storm costs in the current year.
Gains on Sales of Other Assets and Other, net. Theincrease was primarily due to the sale of the Mint Street parking deck.EDIT.
9388

MD&ASEGMENT RESULTS — ELECTRICGAS UTILITIES AND INFRASTRUCTURE
Other Income and Expenses, net. The decrease is primarily due to the wholesale portion of the Department of Energy settlement for nuclear fuel storage in prior year at Duke Energy Florida, partially offset by higher returns on deferred costs.
Interest Expense. The variance was primarily driven by higher interest rates and outstanding debt balances.
Income Tax Expense. The increase in tax expense was primarily due to a decrease in the amortization of excess deferred taxes. The ETRs for the six months ended June 30, 2023, and 2022, were 15.4% and 12.4%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of excess deferred taxes.
Income Attributable to Noncontrolling Interest.The increase is due to the second and final tranche of the GIC minority interest sale.
Gas Utilities and Infrastructure
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
(in millions)(in millions)20232022Variance20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$359 $453 $(94)$1,270 $1,485 $(215)
Operating ExpensesOperating Expenses
Cost of natural gas
Cost of natural gas
Cost of natural gasCost of natural gas79 189 (110)377 670 (293)
Operation, maintenance and otherOperation, maintenance and other110 113 (3)229 295 (66)
Depreciation and amortizationDepreciation and amortization84 82 169 161 
Property and other taxesProperty and other taxes30 33 (3)61 74 (13)
Impairment of assets and other chargesImpairment of assets and other charges(5)— (5)(4)— (4)
Total operating expensesTotal operating expenses298 417 (119)832 1,200 (368)
(Losses) Gains on Sales of Other Assets and Other, net(1)(5)(1)(5)
Operating Income
Operating Income
Operating IncomeOperating Income60 40 20 437 289 148 
Other Income and Expenses, Net24 19 47 36 11 
Other Income and Expenses, net
Other Income and Expenses, net
Other Income and Expenses, net
Interest ExpenseInterest Expense52 42 10 102 82 20 
Income Before Income TaxesIncome Before Income Taxes32 17 15 382 243 139 
Income Tax Expense (Benefit)7 (2)70 (30)100 
Income Tax Expense
Segment Income
Segment Income
Segment IncomeSegment Income$25 $19 $$312 $273 $39 
Piedmont LDC throughput (dekatherms)Piedmont LDC throughput (dekatherms)122,238,056 126,530,274 (4,292,218)283,701,849 306,717,375 (23,015,526)
Piedmont LDC throughput (dekatherms)
Piedmont LDC throughput (dekatherms)
Duke Energy Midwest LDC throughput (Mcf)Duke Energy Midwest LDC throughput (Mcf)13,908,430 16,571,611 (2,663,181)45,910,155 53,817,683 (7,907,528)
Three Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
GU&I’s results were impacted primarily by margin growth, partially offset by higher interest expense and operation, maintenance and other expense. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
a $110$66 million decrease due to lower natural gas costs passed through to customers, lower volumes,rates, and decreased off-system sales natural gas costs.
Partially offset by:
a $12$21 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenues relatedat Duke Energy Ohio;
a $16 million increase due to Ohio CEP.Tennessee ARM revenues;
a $9 million increase due to customer growth; and
an $8 million increase due to North Carolina IMR.
Operating Expenses. The variance was driven primarily by:
a $110$66 million decrease in cost of natural gas due to lower natural gas costs passed through to customers, lower volumes,rates, and decreased off-system sales natural gas costs.
Partially offset by:
a $15 million increase in property and other taxes due to property tax true ups in the prior year and higher property tax in current year;
a $13 million increase in depreciation and amortization due to higher depreciable base, lower CEP deferrals, an increase in rider amortization and higher depreciation for Foothills and Upper Piedmont projects; and
a $10 million increase in operations, maintenance and other primarily due to higher outside services, labor and service company costs.
Other Income and Expenses, Net. The decrease was primarily due to lower production at SustainRNG.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense (Benefit). The increase in tax expense was primarily due to an increase in pretax income and certain favorable tax credits recorded in the prior year. The ETRs for the three months ended June 30, 2023, and 2022, were 21.9% and (11.8)%, respectively. The increase in the ETR was primarily due to certain favorable tax credits recorded in the prior year.
Six Months Ended June 30, 2023, as compared to June 30, 2022
GU&I’s results were impacted primarily by margin growth. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues.The variance was driven primarily by:
a $293 million decrease due to lower natural gas costs passed through to customers, lower volumes, and decreased off-system sales natural gas costs.
94

MD&ASEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE
Partially offset by:
a $23 million increase due to rider revenues related to Ohio CEP;
a $15 million increase due to the MGP Settlement in prior year;
a $15 million increase due to secondary marketing sales;
a $9 million increase due to North Carolina IMR; and
a $7 million increase due to customer growth.
Operating Expenses.The variance was driven primarily by:
a $293 million decrease due to lower natural gas costs passed through to customers, lower volumes, and decreased off-system sales natural gas costs;
a $66 million decrease in operations, maintenance and other primarily due to the MGP Settlement in prior year; and
a $13 million decrease in property and other taxes due to Ohio and Kentucky property tax true ups.
Interest Expense.The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense (Benefit). The increase in tax expense was primarily due to a decrease in the amortization of excess deferred taxes related to the Ohio MGP Settlement recorded in the prior yearEDIT and an increase in pretax income. The ETRs for the sixthree months ended June 30,March 31, 2024, and 2023, were 19.5% and 2022, were 18.3% and (12.3)%18.0%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of excess deferred taxesEDIT.
89

MD&ASEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE
Other
Three Months Ended March 31,
(in millions)20242023Variance
Operating Revenues$38 $31 $
Operating Expenses56 29 27 
Gains on Sales of Other Assets and Other, net5 (1)
Operating (Loss) Income(13)(21)
Other Income and Expenses, net79 62 17 
Interest Expense294 256 38 
Loss Before Income Taxes(228)(186)(42)
Income Tax Benefit(64)(57)(7)
Less: Preferred Dividends39 39 — 
Net Loss$(203)$(168)$(35)
Three Months Ended March 31, 2024, as compared to March 31, 2023
Other's results were impacted by higher interest expense driven by higher outstanding long-term debt.
Operating Expenses. The increase was primarily driven by obligations to the Duke Energy Foundation and lower loss experience related to the Ohio MGP Settlement recordedcaptive insurance claims in the prior year.
Other
Three Months Ended June 30,Six Months Ended June 30,
(in millions)20232022Variance20232022Variance
Operating Revenues$34 $31 $$65 $61 $
Operating Expenses20 12 49 42 
Gains on Sales of Other Assets and Other, net5 — 11 10 
Operating Income19 19 — 27 20 
Other Income and Expenses, net59 (6)65 121 (11)132 
Interest Expense271 166 105 527 324 203 
Loss Before Income Taxes(193)(153)(40)(379)(315)(64)
Income Tax Benefit(46)(42)(4)(103)(72)(31)
Less: Income Attributable to Noncontrolling Interests (1) (1)
Less: Preferred Dividends14 14 — 53 53 — 
Net Loss$(161)$(126)$(35)$(329)$(297)$(32)
Three Months Ended June 30, 2023, as compared to June 30, 2022
The higher net loss was driven by higher interest expense, partially offset by higher return on investments.
Other Income and Expenses, net. The varianceincrease was primarily due to higher yields on captive insurance investments and higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments.obligations.
Interest Expense. The varianceincrease was primarily due to higher interest rates on long-term debt and commercial paper and higher outstanding long-term debt balances.balances and interest rates.
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase inhigher pretax losses and lower state tax benefits.losses. The ETRs for the three months ended June 30,March 31, 2024, and 2023, were 28.1% and 2022, were 23.8% and 27.5%30.6%, respectively. The decrease in the ETR was primarily due to lower state tax benefits.
Six Months Ended June 30, 2023, as compared to June 30, 2022
The higher net loss was driven by higher interest expense,levelization, partially offset by higher returnnon-deductible interest on investments, lower loss experience related to captivecompany owned life insurance claims and an increase in the tax benefit.
Other Income and Expenses, net. The variance was primarily due to higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments.
Interest Expense. The variance was primarily due to higher interest rates on long-term debt and commercial paper and higher outstanding long-term debt balances.
95

MD&ASEGMENT RESULTS - OTHER
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses and favorable tax impacts related to higher investment returns on certain employee benefit obligations. The ETRs for the six months ended June 30, 2023, and 2022, were 27.2% and 22.9%, respectively. The increase in the ETR was primarily due to favorable tax impacts related to higher investment returns on certain employee benefit obligations.prior year.
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,
(in millions)(in millions)20232022Variance20232022Variance(in millions)20242023Variance
Loss From Discontinued Operations, net of taxLoss From Discontinued Operations, net of tax$(955)$(18)$(937)$(1,164)$(33)$(1,131)
Three Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
The variance was primarily driven by the impairment on the sale of the Commercial Renewables business recorded in 2023.
Six Months Ended June 30, 2023, as compared to June 30, 2022
The variance was primarily driven by the impairment on the sale of the Commercial Renewables business recorded in 2023.prior year.
DUKE ENERGY CAROLINAS
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$3,762 $3,669 $93 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power1,133 879 254 
Operation, maintenance and otherOperation, maintenance and other861 974 (113)
Depreciation and amortizationDepreciation and amortization779 763 16 
Property and other taxesProperty and other taxes186 170 16 
Impairment of assets and other chargesImpairment of assets and other charges6 (9)15 
Total operating expensesTotal operating expenses2,965 2,777 188 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net26 — 26 
Operating IncomeOperating Income823 892 (69)
Other Income and Expenses, netOther Income and Expenses, net118 113 
Interest ExpenseInterest Expense332 284 48 
Income Before Income TaxesIncome Before Income Taxes609 721 (112)
Income Tax ExpenseIncome Tax Expense67 53 14 
Net IncomeNet Income$542 $668 $(126)
90

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 year20232024
Residential sales(5.9)6.9%
General service sales(1.1)4.8%
Industrial sales(5.5)(0.5)%
Wholesale power sales4.319.1 %
Joint dispatch sales56.0(0.3)%
Total sales(6.8)7.0%
Average number of customers1.72.1 %
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $268$238 million increase in fuel revenues due to higher fuel prices;rates and volumes;
a $39$91 million increase in retail pricing due to rates from the North Carolina retail rate case;
an $80 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
a $31 million increase in rider revenues primarily due to athe decrease in the return of EDIT to customers compared to the prior year and increases in competitive procurement of renewable energy program riders, partially offset by decreases in energy efficiency.
96

MD&ADUKE ENERGY CAROLINAS
Partially offset by:
a $164 million decrease in retail sales due to unfavorable weather compared to prior year; and
a $63$21 million decreaseincrease in weather-normal retail sales volumes.
Operating Expenses. The variance was driven primarily by:
a $254$237 million increase in fuel used in electric generation and purchased power primarily due to changes in the generation mix, partially offset by the recovery of fuel expensesexpense and lower Joint Dispatch Agreement (JDA)higher JDA purchased volumes and prices;
a $16$31 million increase in depreciation and amortization primarily due to a higher depreciable base, partially offsetand higher net amortizations driven by decrease in depreciation and amortization primarily due to the prior year SouthNorth Carolina Supreme Court decision on coal ash and an increase in Grid Improvement Plan deferrals;rate case; and
a $15an $11 million increase in impairment of assetsoperation, maintenance and other primarily due to a prior year adjustment of the South Carolina Supreme Court decision on coal ash.
Partially offset by:
a $113 million decrease in operation, maintenance and other expense primarily due to lowerhigher storm restoration costs and a decrease in spend on outside services.
Gains on Sales of Other Assets and Other, net. Theincrease was primarily due to the sale of the Mint Street parking deck.costs.
Interest Expense. The varianceincrease was driven byprimarily due to higher interest rates and outstanding debt balances.balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to a decreasean increase in pretax income, partially offset by an increase in the amortization of excess deferred taxes, partially offset by a decrease in pretax income.EDIT.
PROGRESS ENERGY
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$6,260 $6,206 $54 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power2,367 2,322 45 
Operation, maintenance and otherOperation, maintenance and other1,252 1,248 
Depreciation and amortizationDepreciation and amortization1,046 1,045 
Property and other taxesProperty and other taxes341 303 38 
Impairment of assets and other chargesImpairment of assets and other charges5 
Total operating expensesTotal operating expenses5,011 4,922 89 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net12 
Operating IncomeOperating Income1,261 1,287 (26)
Other Income and Expenses, netOther Income and Expenses, net97 105 (8)
Interest ExpenseInterest Expense465 419 46 
Income Before Income TaxesIncome Before Income Taxes893 973 (80)
Income Tax ExpenseIncome Tax Expense149 160 (11)
Net IncomeNet Income$744 $813 $(69)
Six
91

MD&APROGRESS ENERGY
Three Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $198$63 million increase in fuel cost recoveryretail sales due to improved weather compared to the prior year, including impacts of decoupling, at Duke Energy Florida driven by higher fuel rates in the current year, partially offset by a decrease at Duke Energy Progress driven by lower JDA sales volumes at lower prices;Progress;
a $114$62 million increase in weather-normal retail sales volumes at Duke Energy Progress;
a $44 million increase due to higher pricing from the North Carolina and South Carolina rate cases at Duke Energy Progress;
a $36 million increase in storm revenues at Duke Energy Florida due to hurricanes Ian and NicoleHurricane Idalia collections;
a $33 million increase in rider revenues at Duke Energy Florida primarily due to increased Storm Protection Plan rider revenue; and
a $25$10 million increase due to higher pricing related to rate cases at Duke Energy Progress from the South Carolina retail rate case and interim rates from the North Carolina retail rate case, and base rate adjustments related to annual increases from the 2021 Settlement Agreement at Duke Energy Florida.
97

MD&APROGRESS ENERGY
Partially offset by:
a $142 million decrease in wholesale revenues, net of fuel, due to higher capacity rates at Duke Energy Progress.
Partially offset by:
a $46 million decrease in fuel and capacity revenues primarily due to lower capacityrates at Duke Energy Florida, partially offset by an increase in fuel rates and volumes at Duke Energy Progress and lower demand at Duke Energy Florida.
a $117 million decrease in retail sales due to unfavorable weather compared to prior year; and
a $67 million decrease in weather-normal retail sales volumes.Progress.
Operating Expenses. The variance was driven primarily by:
a $45an $83 million increase in depreciation and amortization due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida and higher depreciable base, and higher net amortizations driven by the North Carolina rate case, at Duke Energy Progress; and
a $60 million increase in operation, maintenance and other primarily due to storm amortization at Duke Energy Florida and higher storm and nuclear outage costs at Duke Energy Progress.
Partially offset by:
a $48 million decrease in fuel used in electric generation and purchased power primarily due to higher amortizationlower natural gas prices and the expiration of deferred fuel balancesa purchased power contract in December 2023 at Duke Energy Florida, partially offset by lowerhigher volumes and prices, net of the recovery of fuel expense, at Duke Energy Progress; and
a $38$10 million increasedecrease in property and other taxes primarily due to higherlower franchise and gross receipts tax, driven by lower revenues and lower property tax valuation adjustmentstaxes at Duke Energy Florida.
Interest Expense. The varianceincrease was driven primarily bydue to higher outstanding debt balances and interest rates at Duke Energy Florida and Duke Energy Progress.
Income Tax Expense. The decreaseincrease in tax expense was primarily due to a decreasean increase in pretax income, and an increase in production tax credits, partially offset by a decreasedan increase in the amortization of excess deferred taxes.EDIT.
DUKE ENERGY PROGRESS
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$2,958 $3,213 $(255)
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power1,034 1,167 (133)
Operation, maintenance and otherOperation, maintenance and other706 751 (45)
Depreciation and amortizationDepreciation and amortization611 577 34 
Property and other taxesProperty and other taxes95 90 
Impairment of assets and other chargesImpairment of assets and other charges7 
Total operating expensesTotal operating expenses2,453 2,589 (136)
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net1 — 
Operating IncomeOperating Income506 625 (119)
Other Income and Expenses, netOther Income and Expenses, net61 54 
Interest ExpenseInterest Expense206 175 31 
Income Before Income TaxesIncome Before Income Taxes361 504 (143)
Income Tax ExpenseIncome Tax Expense52 70 (18)
Net IncomeNet Income$309 $434 $(125)
92

MD&ADUKE ENERGY PROGRESS
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 period20232024
Residential sales(8.0)5.9%
General service sales(7.6)5.6%
Industrial sales(15.3)(5.4)%
Wholesale power sales(8.6)6.4%
Joint dispatch sales(24.0)(3.2)%
Total sales(11.7)5.1%
Average number of customers1.62.1 %
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
an $80 million increase in fuel revenues due to higher fuel rates and volumes;
a $117$63 million decreaseincrease in retail sales due to unfavorableimproved weather compared to prior year;year, including impacts of decoupling;
a $90$62 million decreaseincrease in fuel revenues due to lower JDAweather-normal retail sales volumes at lower prices in the current year, partially offset by higher retail fuel prices;volumes;
a $37$44 million decreaseincrease due to higher pricing from the North Carolina and South Carolina rate cases; and
a $10 million increase in wholesale revenues, net of fuel, due to lowerhigher capacity volumes; and
a $34 million decrease in weather-normal retail sales volumes.
98

MD&ADUKE ENERGY PROGRESS
Partially offset by:
a $17 million increase due to higher pricing from the South Carolina retail rate case and interim rates from the North Carolina retail rate case.rates.
Operating Expenses. The variance was driven primarily by:
a $133$75 million decreaseincrease in fuel used in electric generation and purchased power primarily due to lower volumes, partially offset by the recovery of fuel expenses;expenses and changes in the generation mix, partially offset by lower natural gas prices;
a $25 million increase in operation, maintenance and other primarily due to higher storm costs and higher nuclear outage costs, net of levelization; and
a $45 million decrease in operation, maintenance and other expense primarily due to lower storm costs.
Partially offset by:
a $34$24 million increase in depreciation and amortization primarily due to a higher depreciable base.base, and higher net amortizations driven by the North Carolina rate case.
Interest Expense. The varianceincrease was driven primarily by higher outstanding debt balances and interest rates.
Income Tax Expense. The decreaseincrease in tax expense was primarily due to a decreasean increase in pretax income, partially offset by a decreasean increase in the amortization of excess deferred taxes.EDIT.
DUKE ENERGY FLORIDA
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$3,292 $2,983 $309 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power1,333 1,155 178 
Operation, maintenance and otherOperation, maintenance and other537 490 47 
Depreciation and amortizationDepreciation and amortization435 468 (33)
Property and other taxesProperty and other taxes246 212 34 
Impairment of assets and other chargesImpairment of assets and other charges(1)— (1)
Total operating expensesTotal operating expenses2,550 2,325 225 
Gains on Sales of Other Assets and Other, netGains on Sales of Other Assets and Other, net1 (1)
Operating IncomeOperating Income743 660 83 
Other Income and Expenses, netOther Income and Expenses, net37 55 (18)
Interest ExpenseInterest Expense202 174 28 
Income Before Income TaxesIncome Before Income Taxes578 541 37 
Income Tax ExpenseIncome Tax Expense115 109 
Net IncomeNet Income$463 $432 $31 
93

MD&ADUKE ENERGY FLORIDA
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 period20232024
Residential sales(0.4)(2.7)%
General service sales0.9(2.4)%
Industrial sales(4.4)1.5%
Wholesale and otherpower sales(50.0)(6.2)%
Total sales(8.3)(1.7)%
Average number of customers1.62.2 %
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $288$126 million increasedecrease in fuel and capacity revenues primarily due to an increase inlower fuel and capacity rates billed to retail customers;customers.
Partially offset by:
a $114$36 million increase in storm revenues due to hurricanes Ian and NicoleHurricane Idalia collections;
a $33 million increase in rider revenues primarily due to increased rate of Storm Protection Plan rider; and
an $8 million increase in retail pricing due to base rate adjustments related to annual increases from the 2021 Settlement Agreement.
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MD&ADUKE ENERGY FLORIDA
Partially offset by:
a $105 million decrease in wholesale power revenues, net of fuel, primarily due to decreased demand; and
a $33$15 million decreaseincrease in weather-normal retail sales volumes.other revenues due to higher residential fixed bill program revenues and higher Clean Energy Connection subscription revenues.
Operating Expenses. The variance was driven primarily by:
a $178$123 million increasedecrease in fuel used in electric generation and purchased power primarily due to higher amortizationlower natural gas prices and the expiration of deferred fuela purchased power contract in December 2023; and capacity expense;
a $47$14 million decrease in property and other taxes primarily due to lower franchise and gross receipts tax, driven by lower revenues and lower property taxes.
Partially offset by:
a $58 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base; and
a $38 million increase in operation, maintenance and other primarily due to storm amortization; and
a $34 million increase in property and other taxes primarily due to property tax valuation adjustments.
Partially offset by:
a $33 million decrease in depreciation and amortization primarily due to the amortization of Department of Energy settlement regulatory liability.
Other Income and Expenses, net. The decrease is primarily due to the wholesale portion of the Department of Energy settlement for nuclear fuel storage in prior year.
Interest Expense. The increase was primarily due to higher interest rates and outstanding debt balances.amortization.
Income Tax Expense. The increasedecrease in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes, partially offset by an increase in production tax credits.pretax income.
DUKE ENERGY OHIO
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues
Regulated electric
Regulated electric
Regulated electricRegulated electric$939 $813 $126 
Regulated natural gasRegulated natural gas359 370 (11)
Total operating revenuesTotal operating revenues1,298 1,183 115 
Total operating revenues
Total operating revenues
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power340 254 86 
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Cost of natural gas
Cost of natural gas
Cost of natural gasCost of natural gas112 153 (41)
Operation, maintenance and otherOperation, maintenance and other244 287 (43)
Depreciation and amortizationDepreciation and amortization176 163 13 
Property and other taxesProperty and other taxes164 193 (29)
Total operating expensesTotal operating expenses1,036 1,050 (14)
Gains on Sales of Other Assets and Other, net (1)
Total operating expenses
Total operating expenses
Operating Income
Operating Income
Operating IncomeOperating Income262 134 128 
Other Income and Expenses, netOther Income and Expenses, net21 12 
Interest ExpenseInterest Expense79 60 19 
Income Before Income TaxesIncome Before Income Taxes204 86 118 
Income Tax Expense (Benefit)33 (47)80 
Income Tax Expense
Net IncomeNet Income$171 $133 $38 
Net Income
Net Income
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MD&ADUKE ENERGY OHIO
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
ElectricElectricNatural Gas
Increase (Decrease) over prior yearIncrease (Decrease) over prior year20232023Increase (Decrease) over prior year20242024
Residential salesResidential sales(5.6)%(14.3)%Residential sales2.4 %3.8 %
General service salesGeneral service sales10.0 %(27.7)%General service sales(1.8)%5.1 %
Industrial salesIndustrial sales19.0 %(0.3)%Industrial sales(9.1)%6.0 %
Wholesale electric power salesWholesale electric power sales(53.0)%n/aWholesale electric power sales271.4 %n/a
Other natural gas salesOther natural gas salesn/a(2.1)%Other natural gas salesn/a4.0 %
Total salesTotal sales(1.9)%(14.7)%Total sales2.4 %4.3 %
Average number of customersAverage number of customers1.1 %0.6 %Average number of customers1.0 %1.0 %
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MD&ADUKE ENERGY OHIO
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $95an $84 million increasedecrease in fuel-related revenues primarily due to higherlower retail sales volumes, and higher fuel rates in the current year;
a $60 million increase in price due to the 2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in prior year; and
a $15 million increase due to the MGP Settlement in the prior year.as well as decreased natural gas costs.
Partially offset by:
a $38$21 million decreaseincrease due to higher pricing due to the Duke Energy Ohio natural gas rate case net of decreases in the Ohio CEP rider and Accelerated Main Replacement Program (AMRP) Rider;
a $12 million increase due to higher pricing due to the Duke Energy Kentucky electric rate case;
a $10 million increase in revenues related to lowerhigher Ohio Valley Electric Corporation (OVEC) rider collections and OVEC sales into PJM Interconnection, LLC (PJM);
a $25 million decrease due to unfavorable weather compared to prior year; and
a $7an $8 million decreaseincrease in retail revenue riders primarily due to the decrease in Distribution Capital Investment Rider (DCI), partially offset by increases in the Ohio CEP rider and Distribution Decoupling Rider (DDR). rider.
Operating Expenses. The variance was driven primarily by:
a $43$69 million decrease in operation, maintenance and otherfuel expense primarily due to the MGP Settlementdriven by lower retail prices for natural gas and purchased power, and a decrease in the prior year; andpurchased power volumes.
Partially offset by:
a $29$22 million decreaseincrease in property and other taxes primarily due to property tax true ups for prior years and higher property tax in Ohio and Kentucky,current year, partially offset by higherNetwork Integration Transmission Service (NITS) deferral and franchise taxes.
Partially offset by:
a $45 million increase in fuel expense primarily driven by an increase in purchased power volumes, partially offset by lower retail prices for natural gas and purchased power;taxes; and
a $13$9 million increase in depreciation and amortization primarily driven by an increase in distribution plant in service and depreciation rates resulting from the 2022 Duke Energy Ohio Electric retailKentucky electric rate case implemented in 2023.2023 and CEP deferrals in 2024.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense (Benefit). The increase in tax expense was primarily due to a decrease in the amortization of excess deferred taxes related to the MGP Settlement recorded in the prior year and an increase in pretax income.
DUKE ENERGY INDIANA
Results of Operations
Six Months Ended June 30,
Three Months Ended March 31,Three Months Ended March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Operating RevenuesOperating Revenues$1,755 $1,740 $15 
Operating ExpensesOperating Expenses
Fuel used in electric generation and purchased powerFuel used in electric generation and purchased power697 678 19 
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Operation, maintenance and otherOperation, maintenance and other364 374 (10)
Depreciation and amortizationDepreciation and amortization327 311 16 
Property and other taxesProperty and other taxes25 47 (22)
Impairment of assets and other charges 211 (211)
Total operating expenses
Total operating expenses
Total operating expensesTotal operating expenses1,413 1,621 (208)
Operating Income
Operating Income
Operating IncomeOperating Income342 119 223 
Other Income and Expenses, netOther Income and Expenses, net28 18 10 
Interest ExpenseInterest Expense104 90 14 
Income Before Income TaxesIncome Before Income Taxes266 47 219 
Income Tax Expense (Benefit)46 (23)69 
Income Tax Expense
Net IncomeNet Income$220 $70 $150 
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MD&ADUKE ENERGY INDIANA
The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year20232024
Residential sales(8.5)3.4%
General service sales(2.3)(0.1)%
Industrial sales15.1(5.1)%
Wholesale power sales(18.5)15.3%
Total sales(8.4)1.7%
Average number of customers1.11.6 %
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $76$172 million increasedecrease in retail fuel revenues primarily due to higherlower fuel cost recovery driven by higherlower retail sales volumes and fuel prices; and
a $47 million increase primarily due to the provision for rate refund recognized in the prior year related to the Indiana Supreme Court ruling on recovery of certain coal ash costs.
Partially offset by:
a $37 million decrease primarily due to wholesale revenues, including fuel revenues, driven by lower rates and the bulk power marketing sharing provision;
a $34 million decrease in retail sales due to unfavorable weather;
a $25$32 million decrease in weather-normal retail sales volumes primarily due to lower residential and nonresidential customer demand;volumes; and
a $12an $11 million decrease in wholesale revenues, including fuel, primarily due to the utility receipts tax repeal.expiration of a wholesale customer contract.
Operating Expenses. The variance was driven primarily by:
a $211 million decrease in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs in the prior year;
a $22$178 million decrease in property and other taxes primarily due to franchise taxes and property tax true ups for prior periods; and
a $10 million decrease in operation, maintenance and other primarily due to lower storm contingency costs.
Partially offset by:
a $19 million increase in fuel used in electric generation and purchased power primarily due to higherlower deferred fuel amortization partially offset byas well as lower purchased power expense, natural gas and coal costs; andcosts.
Partially offset by:
a $16an $11 million increase in depreciation and amortization primarily due to a higher depreciable base.
Other Incomebase and Expenses, net. The variance is primarily due to intercompany interest income.
Interest Expense. The variance is primarily due to higher outstanding debt balances and interest rates.coal ash related amortization.
Income Tax Expense (Benefit).Expense. The increasedecrease in tax expense was primarily due to an increasea decrease in pretax income, andpartially offset by a decrease in the amortization of excess deferred income taxes related to the coal ash impairment recorded in the prior year.EDIT.
PIEDMONT
Results of Operations
Three Months Ended March 31,
(in millions)20242023Variance
Operating Revenues$676 $675 $
Operating Expenses
Cost of natural gas170 206 (36)
Operation, maintenance and other95 89 
Depreciation and amortization62 57 
Property and other taxes15 16 (1)
Impairment of assets and other charges (1)
Total operating expenses342 369 (27)
Operating Income334 306 28 
Other Income and Expenses, net17 16 
Interest Expense45 40 
Income Before Income Taxes306 282 24 
Income Tax Expense60 50 10 
Net Income$246 $232 $14 
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MD&APIEDMONT
PIEDMONT
Results of Operations
Six Months Ended June 30,
(in millions)20232022Variance
Operating Revenues$911 $1,115 $(204)
Operating Expenses
Cost of natural gas265 517 (252)
Operation, maintenance and other171 183 (12)
Depreciation and amortization116 110 
Property and other taxes30 31 (1)
Impairment of assets and other charges(4)— (4)
Total operating expenses578 841 (263)
Gains on Sales of Other Assets and Other, net (4)
Operating Income333 278 55 
Other Income and Expenses, net32 28 
Interest Expense79 66 13 
Income Before Income Taxes286 240 46 
Income Tax Expense51 27 24 
Net Income$235 $213 $22 
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 year20232024
Residential deliveries(18.5)20.9%
Commercial deliveries(13.6)19.2%
Industrial deliveries(2.6)3.9%
Power generation deliveries(5.6)(7.6)%
For resale(20.9)4.1%
Total throughput deliveries(7.5)1.1%
Secondary market volumes(27.1)(11.6)%
Average number of customers1.5 %
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.
SixThree Months Ended June 30, 2023,March 31, 2024, as compared to June 30, 2022March 31, 2023
Operating Revenues. The variance was driven primarily by:
a $252 million decrease due to lower natural gas costs passed through to customers, lower volumes, and decreased off-system sales natural gas costs;
Partially offset by:
a $15$16 million increase due to secondary marketing sales;Tennessee ARM revenue recognition;
a $9 million increase due to customer growth;
an $8 million increase due to North Carolina IMR; and
a $7 million increase due to customer growth.South Carolina RSA.
Partially offset by:
a $36 million decrease due to lower natural gas costs passed through to customers, lower rates, and decreased off-system sales natural gas costs.
Operating Expenses. The variance was driven primarily by:
a $252$36 million decrease in the cost of natural gas due to lower natural gas costs passed through to customers, lower volumes,rates, and decreased off-system sales natural gas costs; andcosts.
Partially offset by:
a $12$6 million decreaseincrease in operations, maintenance and other primarily due to lower employee compensationhigher outside services and benefits related costs,software projects; and lower information technology costs.
a $5 million increase in depreciation and amortization due to additional plant in service.
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes.EDIT.
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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 and projected tax credits to be generated relating to the IRA, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2022,2023, included a summary and detailed discussion of projected primary sources and uses of cash for 20232024 to 2025.2026.
As part of the ATM program, in March 2024, Duke Energy executed an equity forward sales agreement. Settlement of the forward sales agreement is expected to occur during or prior to December 2024. See Note 14 to the Condensed Consolidated Financial Statements, “Stockholders’ Equity” for further details.
As of June 30, 2023,March 31, 2024, Duke Energy had $377$459 million of cash on hand and $5.7$5.1 billion available under its $9 billion Master CreditCredit 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.
As discussed in Note 12 to the Condensed Consolidated Financial Statements, "Variable Interest Entities," Duke Energy terminated and repaid CRC in March 2024 and Duke Energy Florida terminated and repaid DEFR in April 2024. As a result of these repayments, CRC and DEFR have ceased operations and no longer acquire the receivables of Duke Energy’s subsidiaries. Duke Energy Carolinas and Duke Energy Progress continue to evaluate financing opportunities and anticipate termination and repayment of the borrowing facilities of DERF and DEPR prior to their scheduled termination dates in January 2025 and April 2025, respectively.
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MD&ALIQUIDITY AND CAPITAL RESOURCES
Refer to Note 6 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. Additionally, see Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for expectedthe timing and use of proceeds from the sale of certain Commercial Renewables assets to affiliates of Brookfield and ArcLight.
In April 2023, Moody’s Investors Service, Inc. (Moody's) maintained the credit ratings and affirmed the ratings outlook for all of the Duke Energy Registrants, including Duke Energy Ohio. Operations in Kentucky are conducted through Duke Energy Ohio's wholly owned subsidiary, Duke Energy Kentucky. Moody's lowered Duke Energy Kentucky's ratings outlook from stable to negative while maintaining Duke Energy Kentucky's credit rating of Baa1 for senior unsecured debt.ArcLight Capital Partners, LLC.
Cash Flow Information
The following table summarizes Duke Energy’s cash flows.
Six Months Ended
June 30,
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)(in millions)20232022(in millions)20242023
Cash flows provided by (used in):Cash flows provided by (used in):
Operating activities
Operating activities
Operating activitiesOperating activities$3,785 $4,035 
Investing activitiesInvesting activities(6,508)(5,492)
Financing activitiesFinancing activities2,687 1,576 
Net (decrease) increase in cash, cash equivalents and restricted cash(36)119 
Net increase in cash, cash equivalents and restricted cash
Net increase in cash, cash equivalents and restricted cash
Net increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of periodCash, cash equivalents and restricted cash at beginning of period603 520 
Cash, cash equivalents and restricted cash at end of periodCash, cash equivalents and restricted cash at end of period$567 $639 
OPERATING CASH FLOWS
The following table summarizes key components of Duke Energy’s operating cash flows.
Six Months Ended
June 30,
Three Months Ended
Three Months Ended
Three Months Ended
March 31,
March 31,
March 31,
(in millions)
(in millions)
(in millions)(in millions)20232022Variance
Net incomeNet income$557 $1,700 $(1,143)
Net income
Net income
Non-cash adjustments to net income
Non-cash adjustments to net income
Non-cash adjustments to net incomeNon-cash adjustments to net income4,085 2,961 1,124 
Payments for asset retirement obligationsPayments for asset retirement obligations(261)(255)(6)
Payments for asset retirement obligations
Payments for asset retirement obligations
Working capital
Working capital
Working capitalWorking capital(1,286)(527)(759)
Other assets and Other liabilitiesOther assets and Other liabilities690 156 534 
Other assets and Other liabilities
Other assets and Other liabilities
Net cash provided by operating activitiesNet cash provided by operating activities$3,785 $4,035 $(250)
Net cash provided by operating activities
Net cash provided by operating activities
The variance is primarily driven by:
a $523 million decrease in net cash outflows from working capital accounts, primarily due to the recovery of deferred fuel costs and the timing of accruals and paymentspayments; and
a $420 million increase in working capital accounts,net income, after adjustment for non-cash items, primarily due to improved weather and favorable rate case impacts along with growth from riders and other margin, partially offset by the recovery of deferred fuel costs.
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MD&Ahigher interest expense.LIQUIDITY AND CAPITAL RESOURCES
INVESTING CASH FLOWS
The following table summarizes key components of Duke Energy’s investing cash flows.
Six Months Ended
June 30,
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Capital, investment and acquisition expendituresCapital, investment and acquisition expenditures$(6,287)$(5,149)$(1,138)
Other investing itemsOther investing items(221)(343)122 
Other investing items
Other investing items
Net cash used in investing activitiesNet cash used in investing activities$(6,508)$(5,492)$(1,016)
The variance is primarily due to higher overall investments in the EU&I segment.segment in the current year. Additionally, there were net proceeds of $76 million received in the prior year related to the sale of certain assets.
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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.
Six Months Ended
June 30,
Three Months EndedThree Months Ended
March 31,March 31,
(in millions)(in millions)20232022Variance(in millions)20242023Variance
Issuances of long-term debt, netIssuances of long-term debt, net$4,722 $2,567 $2,155 
Notes payable, commercial paper and other short-term borrowings
Notes payable, commercial paper and other short-term borrowings
Notes payable, commercial paper and other short-term borrowingsNotes payable, commercial paper and other short-term borrowings(582)558 (1,140)
Dividends paidDividends paid(1,606)(1,574)(32)
Contributions from noncontrolling interestsContributions from noncontrolling interests248 126 122 
Other financing itemsOther financing items(95)(101)
Other financing items
Other financing items
Net cash provided by financing activitiesNet cash provided by financing activities$2,687 $1,576 $1,111 
The variance was primarily due to:
a $2,155$616 million increasedecrease in net proceeds from net issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt; and
a $122$206 million increasedecrease in contributions from noncontrolling interests.
Partially offset by:
a $1,140$74 million decreaseincrease in net borrowings from notes payable and commercial paper.
OTHER MATTERS
Environmental Regulations
The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time and result in new obligations of the Duke Energy Registrants. Refer to Note 4, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022,2023, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, for further information regarding regulatory filings related to the Duke Energy Registrants.
On May 18, 2023,In April 2024, the EPA published in the Federal Registerissued a proposedfinal rule under the Resource Conservation and Recovery Act, which would establishsignificantly expands the scope of the CCR Rule by establishing regulatory requirements for inactive surface impoundments at inactiveretired generating facilities (Legacy CCR Surface Impoundments) and establish. The final rule also imposes a subset of the CCR Rule’s requirements, including groundwater monitoring, corrective action (where necessary), and in certain cases, closure, and post-closure care requirements, for allon previously unregulated coal ash sources at regulated facilities (CCR Management Units). CCR management units at facilities otherwise subjectManagement Units may include surface impoundments and landfills that closed prior to the effective date of the 2015 CCR rule.Rule, inactive CCR landfills, and other areas where CCR is managed directly on the land at Duke Energy facilities. Duke Energy is reviewing the proposedfinal rule and analyzing the potential impacts it could have on the Company, which could be material.
In April 2024, the EPA issued a final rule under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants, referred to as electric generating units (EGUs). EPA Rule 111 requires existing coal-fired power plants expected to operate in 2039 and beyond to reduce GHG emissions by 90% through the use of carbon capture and sequestration starting in 2032, subject to certain modifications for coal plants that retire sooner and co-fire natural gas. EPA Rule 111 also establishes GHG emissions reduction standards for new natural gas-fired EGUs, subject to carve-outs for smaller peaking units that fill gaps that cannot be met with renewables or storage. The EPA did not finalize emission guidelines for GHG emissions from existing fossil fuel-fired stationary combustion turbines and intends to address these is a future rulemaking. Duke Energy is reviewing the final rule and analyzing the potential impacts it could have on the Company, which could be material.
On May 23, 2023,Cost recovery for future expenditures will be pursued through the EPA published in the Federal Register proposed new source performance standards under Clean Air Act (CAA) section 111(b) that would establish standardsnormal ratemaking process with federal and state utility commissions, which permit recovery of performance for emissions of carbon dioxide for newly constructed, modified,necessary and reconstructed fossil fuel-fired electric utility steam generating units and fossil fuel-fired stationary combustion turbines. On that same day, in a separate rulemaking under CAA section 111(d), the EPA published proposed emission guidelines for states to use in developing plans to limit carbon dioxide emissions from existing fossil fuel-fired electric generating units and certain large existing stationary combustion turbines.prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is reviewingevaluating potential legal challenges to the proposed rules and analyzing the potential impacts they could have on the Company, which could be material.final rules.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For an in-depth discussion of the Duke Energy Registrants' market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7 of Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022.2023.
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ITEM 4.CONTROLS AND PROCEDURES
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.
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ITEM 4.CONTROLS AND PROCEDURES
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 June 30, 2023,March 31, 2024, and, based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in providing reasonable assurance of compliance.
Changes in Internal Control over Financial Reporting
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2023,March 31, 2024, and have concluded no change has materially affected, or is reasonably likely to materially affect, internal controls over financial reporting.
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OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
The Duke Energy Registrants are, from time to time, parties to various lawsuits and regulatory proceedings in the ordinary course of their business. For information regarding legal proceedings, including regulatory and environmental matters, see Note 4, "Regulatory Matters," and Note 5, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements. For additional information, see Item 3, "Legal Proceedings," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022.2023.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I, “Item 1A. Risk Factors” in the Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022,2023, which could materially affect the Duke Energy Registrants’ financial condition or future results. The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.
BUSINESS STRATEGY RISKS
Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy including achieving its carbon emissions reduction goals.
Duke Energy’s results of operations depend, in significant part, on the extent to which it can implement its business strategy successfully. Duke Energy's clean energy transition, which includes achieving net-zero carbon emissions from electricity generation by 2050, modernizing the regulatory construct, transforming the customer experience, and digital transformation, is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those goals difficult to achieve.
Federal or state policies could be enacted that restrict the availability of, and increase the costs associated with the use of, fuels or generation technologies, such as natural gas or nuclear power, that enable Duke Energy to reduce its carbon emissions. For example, new EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact our carbon-reduction targets, and operational timeline and costs associated with certain new and existing generation. Supportive policies may be needed to facilitate the siting and cost recovery of transmission and distribution upgrades needed to accommodate the build out of large volumes of renewables and energy storage. Further, the approval of our state regulators will be necessary for the Company to continue to retire existing carbon emitting assets or make investments in new generating capacity. The Company may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time. In addition, new technologies that are not yet commercially available or are unproven at utility-scale will likely be needed, including carbon capture and sequestration and supporting infrastructure as well as new resources capable of following electric load over long durations such as advanced nuclear, hydrogen and long-duration storage. If these technologies are not developed or are not available at reasonable prices, or if we invest in early stage technologies that are then supplanted by technological breakthroughs, Duke Energy’s ability to achieve a net-zero target by 2050 at a cost-effective price could be at risk.
Achieving our carbon reduction goals will require continued operation of our existing carbon-free technologies including nuclear and renewables. The rapid transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge our ability to meet customer expectations of reliability and affordability in a carbon constrained environment, particularly as demand increases. Our nuclear fleet is central to our ability to meet these objectives and customer expectations. We are continuing to seek to renew the operating licenses of the 11 reactors we operate at six nuclear stations for an additional 20 years, extending their operating lives to and beyond midcentury. Failure to receive approval from the NRC for the relicensing of any of these reactors could affect our ability to achieve a net-zero target by 2050.
As a consequence, Duke Energy may not be able to fully implement or realize the anticipated results of its energy transition strategy, which may have an adverse effect on its financial condition.
101

OTHER INFORMATION
REGULATORY, LEGISLATIVE AND LEGAL RISKS
The Duke Energy Registrants are subject to numerous environmental laws and regulations requiring significant capital expenditures that can increase the cost of operations, and which may impact or limit business plans, or cause exposure to environmental liabilities.
The Duke Energy Registrants are subject to numerous environmental laws and regulations affecting many aspects of their present and future operations, including CCRs, air emissions, water quality, wastewater discharges, solid waste and hazardous waste. For example, the new EPA rules issued in April 2024, among other things, impose stringent GHG emissions limitations on existing coal plants and new natural gas plants and more stringent air toxic limits on existing coal plants, increase limitations on wastewater discharge, and impose groundwater monitoring and corrective action requirements on previously unregulated coal ash sources at regulated facilities (CCR Management Units) and inactive surface impoundments at retired generating facilities (Legacy CCR Surface Impoundments). Potential legal challenges to such rules may not be successful, and adherence to these rules may increase the cost of compliance, impact generation resource mix and carbon-reduction targets, and negatively impact customer reliability and affordability due to such rules' imposition of stringent GHG emissions limitations and reliance on carbon capture technologies that are not yet adequately demonstrated at utility-scale. These and other environmental laws and regulations can result in increased capital, operating and other costs. These laws and regulations generally require the Duke Energy Registrants to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals. Compliance with environmental laws and regulations can require significant expenditures, including expenditures for cleanup costs and damages arising from contaminated properties. Failure to comply with environmental regulations may result in the imposition of fines, penalties and injunctive measures affecting operating assets, as well as reputational damage. The steps the Duke Energy Registrants could be required to take to ensure their facilities are in compliance could be prohibitively expensive. As a result, the Duke Energy Registrants may be required to shut down or alter the operation of their facilities, which may cause the Duke Energy Registrants to incur losses. Further, the Duke Energy Registrants may not be successful in recovering capital and operating costs incurred to comply with new environmental regulations through existing regulatory rate structures and their contracts with customers. Also, the Duke Energy Registrants may not be able to obtain or maintain from time to time all required environmental regulatory approvals for their operating assets or development projects. Delays in obtaining any required environmental regulatory approvals, failure to obtain and comply with them or changes in environmental laws or regulations to more stringent compliance levels could, and are likely to, result in additional costs of operation for existing facilities or development of new facilities being prevented, delayed or subject to additional costs. The costs to comply with environmental laws and regulations could have a material effect on the Duke Energy Registrants’ results of operations, financial position or cash flows.
The EPA has issued or proposed federal regulations, including the new rules issued in April 2024, governing the management of cooling water intake structures, wastewater, CCR management units, air toxics emissions, and CO2 emissions. New state legislation in response to such regulations could impose carbon reduction goals that are more aggressive than the Company's plans. These regulations may require the Duke Energy Registrants to make additional capital expenditures and increase operating and maintenance costs.
OPERATIONAL RISKS
The reputation and financial condition of the Duke Energy Registrants could be negatively impacted due to their obligations to comply with federal and state regulations, laws, and other legal requirements that govern the operations, assessments, storage, closure, remediation, disposal and monitoring relating to CCR, the high costs and new rate impacts associated with implementing these new CCR-related requirements and the strategies and methods necessary to implement these requirements in compliance with these legal obligations.
As a result of electricity produced for decades at coal-fired power plants, the Duke Energy Registrants manage large amounts of CCR that are primarily stored in dry storage within landfills or combined with water in surface impoundments, all in compliance with applicable regulatory requirements. A CCR-related operational incident could have a material adverse impact on the reputation and results of operations, financial position and cash flows of the Duke Energy Registrants.
During 2015, EPA regulations were enacted related to the management of CCR from power plants. These regulations classify CCR as nonhazardous waste under the RCRA and apply to electric generating sites with new and existing landfills and, new and existing surface impoundments, and establish requirements regarding landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring, protection and remedial procedures and other operational and reporting procedures for the disposal and management of CCR. In addition to the federal regulations, CCR landfills and surface impoundments will continue to be regulated by existing state laws, regulations and permits, as well as additional legal requirements that may be imposed in the future, such as the settlement reached with the NCDEQ to excavate seven of the nine remaining coal ash basins in North Carolina, and partially excavate the remaining two, and the EPA's January 11, 2022, issuance of a letter interpreting the CCR Rule, including its applicability and closure provisions. Most recently, in April 2024, the EPA issued its final Legacy Surface Impoundment Rule, which significantly expands the scope of the 2015 CCR Rule to apply to legacy CCR surface impoundments (inactive impoundments at retired facilities) and CCR management units (previously unregulated coal ash sources at regulated facilities). These federal and state laws, regulations and other legal requirements may require or result in additional expenditures, including increased operating and maintenance costs, which could affect the results of operations, financial position and cash flows of the Duke Energy Registrants. The Duke Energy Registrants will continue to seek full cost recovery for expenditures through the normal ratemaking process with state and federal utility commissions, who permit recovery in rates of necessary and prudently incurred costs associated with the Duke Energy Registrants’ regulated operations, and through other wholesale contracts with terms that contemplate recovery of such costs, although there is no guarantee of full cost recovery. In addition, the timing for and amount of recovery of such costs could have a material adverse impact on Duke Energy's cash flows.
The Duke Energy Registrants have recognized significant AROs related to these CCR-related requirements. Closure activities began in 2015 at the four sites specified as high priority by the Coal Ash Act and at the W.S. Lee Steam Station site in South Carolina in connection with other legal requirements. Excavation at these sites involves movement of CCR materials to off-site locations for use as structural fill, to appropriately engineered off-site or on-site lined landfills or conversion of the ash for beneficial use. Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites. At other sites, planning and closure methods have been studied and factored into the estimated retirement and management costs, and closure activities have commenced. As the closure and CCR management work progresses and final closure plans and corrective action measures are developed and approved at each site, the scope and complexity of work and the amount of CCR material could be greater than estimates and could, therefore, materially increase compliance expenditures and rate impacts.
102

OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 5. OTHER INFORMATION
During the three months ended June 30, 2023,March 31, 2024, no director or officer of the Company adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.
107103

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
4.3XX
4.44.3X
4.4X
4.5X
10.1**X
10.2**X
*4.6X
*31.1.1X
*31.1.2X
*31.1.3X
*31.1.4X
104

EXHIBITS
*31.1.5X
*31.1.6X
108

EXHIBITS
*31.1.7X
*31.1.8X
*31.2.1X
*31.2.2X
*31.2.3X
*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
105

EXHIBITS
*32.2.2X
*32.2.3X
109

EXHIBITS
*32.2.4X
*32.2.5X
*32.2.6X
*32.2.7X
*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.
110106

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:August 8, 2023May 7, 2024/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date:August 8, 2023May 7, 2024/s/ CYNTHIA S. LEE
Cynthia S. Lee
Vice President, Chief Accounting Officer
and Controller
(Principal Accounting Officer)
111107