~~0001326160us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMemberduk:DukeEnergyProgressMemberus-gaap:CommodityContractMember2022-12-31~~0001326160duk:DukeEnergyOhioMemberus-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 ~~September 30, 2023~~March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to_________


Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Zip Code and Telephone Number	IRS Employer Identification No.

1-32853	DUKE ENERGY CORPORATION	20-2777218

(a Delaware corporation)

~~526~~525 South ~~Church~~Tryon Street

Charlotte, North Carolina ~~28202-1803~~28202

~~704-382-3853~~800-488-3853


1-4928			DUKE ENERGY CAROLINAS, LLC						56-0205520

(a North Carolina limited liability company)

~~526~~525 South ~~Church~~Tryon Street

Charlotte, North Carolina ~~28202-1803~~28202

~~704-382-3853~~800-488-3853


1-15929			PROGRESS ENERGY, INC.						56-2155481

(a North Carolina corporation)

~~410 South Wilmington~~411 Fayetteville Street

Raleigh, North Carolina ~~27601-1748~~27601

~~704-382-3853~~800-488-3853


1-3382			DUKE ENERGY PROGRESS, LLC						56-0165465

(a North Carolina limited liability company)

~~410 South Wilmington~~411 Fayetteville Street

Raleigh, North Carolina ~~27601-1748~~27601

~~704-382-3853~~800-488-3853


1-3274			DUKE ENERGY FLORIDA, LLC						59-0247770

(a Florida limited liability company)

299 First Avenue North

St. Petersburg, Florida 33701

~~704-382-3853~~800-488-3853


1-1232			DUKE ENERGY OHIO, INC.						31-0240030

(an Ohio corporation)

139 East Fourth Street

Cincinnati, Ohio 45202

~~704-382-3853~~800-488-3853


1-3543			DUKE ENERGY INDIANA, LLC						35-0594457

(an Indiana limited liability company)

1000 East Main Street

Plainfield, Indiana 46168

~~704-382-3853~~800-488-3853


1-6196			PIEDMONT NATURAL GAS COMPANY, INC.						56-0556998

(a North Carolina corporation)

~~4720 Piedmont Row Drive~~525 South Tryon Street

Charlotte, North Carolina ~~28210~~28202

~~704-364-3120~~800-488-3853

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)

Yes

☒

☐

Duke Energy Florida, LLC (Duke Energy Florida)

Yes

☒

☐

Duke Energy Carolinas, LLC (Duke Energy Carolinas)

Yes

☒

☐

Duke Energy Ohio, Inc. (Duke Energy Ohio)

Yes

☒

☐

Progress Energy, Inc. (Progress Energy)

Yes

☒

☐

Duke Energy Indiana, LLC (Duke Energy Indiana)

Yes

☒

☐

Duke Energy Progress, LLC (Duke Energy Progress)

Yes

☒

☐

Piedmont Natural Gas Company, Inc. (Piedmont)

Yes

☒

☐

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 Energy

Yes

☒

☐

Duke Energy Florida

Yes

☒

☐

Duke Energy Carolinas

Yes

☒

☐

Duke Energy Ohio

Yes

☒

☐

Progress Energy

Yes

☒

☐

Duke Energy Indiana

Yes

☒

☐

Duke Energy Progress

Yes

☒

☐

Piedmont

Yes

☒

☐

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 Energy

Large Accelerated Filer

☒

Accelerated filer

☐

Non-accelerated Filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Carolinas

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Progress Energy

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Progress

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Florida

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Ohio

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Indiana

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Piedmont

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging 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 Energy

Yes

☐

☒

Duke Energy Florida

Yes

☐

☒

Duke Energy Carolinas

Yes

☐

☒

Duke Energy Ohio

Yes

☐

☒

Progress Energy

Yes

☐

☒

Duke Energy Indiana

Yes

☐

☒

Duke Energy Progress

Yes

☐

☒

Piedmont

Yes

☐

☒

Number of shares of common stock outstanding at ~~October 31, 2023:~~April 30, 2024:


Registrant	Description	Shares
Duke Energy	Common stock, $0.001 par value	~~770,711,728~~771,768,612
Duke Energy Carolinas	All of the registrant's limited liability company member interests are directly owned by Duke Energy.	N/A
Progress Energy	All of the registrant's common stock is directly owned by Duke Energy.	100
Duke Energy Progress	All of the registrant's limited liability company member interests are indirectly owned by Duke Energy.	N/A
Duke Energy Florida	All of the registrant's limited liability company member interests are indirectly owned by Duke Energy.	N/A
Duke Energy Ohio	All of the registrant's common stock is indirectly owned by Duke Energy.	89,663,086
Duke Energy Indiana	All 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
Piedmont	All 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


	Cautionary Statement Regarding Forward-Looking Information

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements

	Duke Energy Corporation Financial Statements	9

	Duke Energy Carolinas, LLC Financial Statements	1514

	Progress Energy, Inc. Financial Statements	1918

	Duke Energy Progress, LLC Financial Statements	2322

	Duke Energy Florida, LLC Financial Statements	2726

	Duke Energy Ohio, Inc. Financial Statements	3130

	Duke Energy Indiana, LLC Financial Statements	3534

	Piedmont Natural Gas Company, Inc. Financial Statements	3938

	Combined Notes to Condensed Consolidated Financial Statements
	Note 1 – Organization and Basis of Presentation	4342
	Note 2 – Dispositions	4544
	Note 3 – Business Segments	4746
	Note 4 – Regulatory Matters	4947
	Note 5 – Commitments and Contingencies	5553

	Note 6 – Debt and Credit Facilities	5755

	Note 7 ~~– Asset Retirement Obligations~~	60
	~~Note 8~~ – Goodwill	6157
	Note 98 – Related Party Transactions	6258
	Note 109 – Derivatives and Hedging	6359
	Note 1110 – Investments in Debt and Equity Securities	6965
	Note 1211 – Fair Value Measurements	7369
	Note 1312 – Variable Interest Entities	74
	Note 13 – Revenue	78
	Note 14 – ~~Revenue~~Stockholders' Equity	81
	Note 15 ~~– Stockholders' Equity~~	87
	~~Note 16~~ – Employee Benefit Plans	8882
	Note 1716 – Income Taxes	9083
	Note 1817 – Subsequent Events	9084

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9185

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	~~109~~99

Item 4.	Controls and Procedures	~~109~~99

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	~~110~~101

Item 1A.	Risk Factors	~~110~~101

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~110~~103

Item 5.	Other Information	~~110~~103

Item 6.	Exhibits	~~111~~104

	Signatures	~~114~~107


GLOSSARY OF TERMS

Glossary of Terms

The following terms or acronyms used in this Form 10-Q are defined below:


Term or Acronym			Definition

2021 Settlement			Settlement 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.

AFUDC			Allowance for funds used during construction

~~ArcLight~~			~~ArcLight Capital Partners, LLC~~

ARM			Annual Review Mechanism

~~ARO~~			~~Asset retirement obligations~~

Bison			Bison Insurance Company Limited

Brookfield			Brookfield Renewable Partners L.P.

CCR			Coal 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

CEP			Capital Expenditure Program

CPCN			Certificate of Public Convenience and Necessity

the Company			Duke Energy Corporation and its subsidiaries

Commercial Renewables Disposal Groups			Commercial 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-19			Coronavirus Disease 2019

CRC			Cinergy Receivables Company, LLC

Crystal River Unit 3			Crystal River Unit 3 Nuclear Plant

DEFR			Duke Energy Florida Receivables, LLC

DEPR			Duke Energy Progress Receivables, LLC

DERF			Duke Energy Receivables Finance Company, LLC

DOE			U.S. Department of Energy

Duke Energy			Duke Energy Corporation (collectively with its subsidiaries)

Duke Energy Ohio			Duke Energy Ohio, Inc.

Duke Energy Progress			Duke Energy Progress, LLC

Duke Energy Carolinas			Duke Energy Carolinas, LLC

Duke Energy Florida			Duke Energy Florida, LLC

Duke Energy Indiana			Duke Energy Indiana, LLC

Duke Energy Registrants			Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont

EDIT			Excess deferred income tax

EPA			United States Environmental Protection Agency

EPS			Earnings (Loss) Per Share

ERCOT			Electric Reliability Council of Texas

ETR			Effective tax rate

EU&I			Electric Utilities and Infrastructure

Exchange Act			Securities Exchange Act of 1934

FERC			Federal Energy Regulatory Commission

FPSC			Florida Public Service Commission

FTR			Financial transmission rights

GAAP			Generally accepted accounting principles in the U.S.

GAAP Reported Earnings			Net Income Available to Duke Energy Corporation Common Stockholders


GLOSSARY OF TERMS


GAAP Reported EPS			Basic Earnings Per Share Available to Duke Energy Corporation common stockholders

GHG			Greenhouse Gas

GIC			GIC Private Limited, Singapore's sovereign wealth fund and an experienced investor in U.S. infrastructure

GU&I			Gas Utilities and Infrastructure


~~GLOSSARY OF TERMS~~


GWh			Gigawatt-hours

HB 951			The Energy Solutions for North Carolina, or House Bill 951, passed in October 2021

IMR			Integrity Management Rider

IRA			Inflation Reduction Act

IRS			Internal Revenue Service

IURC			Indiana Utility Regulatory Commission

JDA			Joint Dispatch Agreement

KPSC			Kentucky Public Service Commission

LLC			Limited Liability Company

~~MGP~~			~~Manufactured gas plant~~

~~MGP Settlement~~			~~Stipulation 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~~

MW			Megawatt

MWh			Megawatt-hour

MYRP			Multiyear rate plan

NCUC			North Carolina Utilities Commission

NDTF			Nuclear decommissioning trust funds

NPNS			Normal purchase/normal sale

NYSE			The New York Stock Exchange

~~OCC~~			~~Ohio Consumers' Counsel~~

OPEB			Other Post-Retirement Benefit Obligations

the Parent			Duke Energy Corporation holding company

PBR			Performance-based regulation

Piedmont			Piedmont Natural Gas Company, Inc.

Progress Energy			Progress Energy, Inc.

PSCSC			Public Service Commission of South Carolina

PTC			Production Tax Credit

PUCO			Public Utilities Commission of Ohio

RTO			Regional Transmission Organization

Subsidiary Registrants			Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont

TPUC			Tennessee Public Utility Commission

U.S.			United States

VIE			Variable 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 ~~any~~an 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 Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions, except per share amounts)	(in millions, except per share amounts)	2023			2022		2023		2022		(in millions, except per share amounts)	2024		2023
Operating Revenues	Operating Revenues
Regulated electric
Regulated electric
Regulated electric	Regulated electric	$	7,640		$	7,373	$	20,140	$	19,381
Regulated natural gas	Regulated natural gas	284			397		1,497		1,824
Nonregulated electric and other	Nonregulated electric and other	70			72		211		212
Total operating revenues	Total operating revenues	7,994			7,842		21,848		21,417
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	2,571			2,632		6,987		6,421
Cost of natural gas	Cost of natural gas	57			189		434		859
Operation, maintenance and other	Operation, maintenance and other	1,428			1,308		4,113		4,223
Depreciation and amortization	Depreciation and amortization	1,353			1,299		3,913		3,793
Property and other taxes	Property and other taxes	394			368		1,136		1,118
Impairment of assets and other charges	Impairment of assets and other charges	88			(4)		96		202
Total operating expenses	Total operating expenses	5,891			5,792		16,679		16,616
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	8			6		46		17
Operating Income	Operating Income	2,111			2,056		5,215		4,818
Other Income and Expenses	Other Income and Expenses
Equity in earnings of unconsolidated affiliates	Equity in earnings of unconsolidated affiliates	45			28		85		92
Equity in earnings of unconsolidated affiliates
Equity in earnings of unconsolidated affiliates
Other income and expenses, net	Other income and expenses, net	133			87		431		290
Total other income and expenses	Total other income and expenses	178			115		516		382
Interest Expense	Interest Expense	774			603		2,221		1,760
Income From Continuing Operations Before Income Taxes	Income From Continuing Operations Before Income Taxes	1,515			1,568		3,510		3,440
Income Tax Expense From Continuing Operations	Income Tax Expense From Continuing Operations	42			158		316		297
Income From Continuing Operations	Income From Continuing Operations	1,473			1,410		3,194		3,143
(Loss) Income From Discontinued Operations, net of tax		(152)			3		(1,316)		(30)
Loss From Discontinued Operations, net of tax
Net Income	Net Income	1,321			1,413		1,878		3,113
Add: Net (Income) Loss Attributable to Noncontrolling Interests	Add: Net (Income) Loss Attributable to Noncontrolling Interests	(69)			9		(42)		73
Net Income Attributable to Duke Energy Corporation	Net Income Attributable to Duke Energy Corporation	1,252			1,422		1,836		3,186
Less: Preferred Dividends	Less: Preferred Dividends	39			39		92		92
Net Income Available to Duke Energy Corporation Common Stockholders	Net Income Available to Duke Energy Corporation Common Stockholders	$	1,213		$	1,383	$	1,744	$	3,094

Earnings Per Share – Basic and Diluted	Earnings Per Share – Basic and Diluted
Earnings Per Share – Basic and Diluted
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Income from continuing operations available to Duke Energy Corporation common stockholders
Income from continuing operations available to Duke Energy Corporation common stockholders	Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted	Basic and Diluted	$	1.83		$	1.78	$	3.94	$	3.95
Basic and Diluted
Basic and Diluted

(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted
Basic and Diluted
Basic and Diluted	Basic and Diluted	$	(0.24)		$	0.03	$	(1.67)	$	0.08

Net income available to Duke Energy Corporation common stockholders	Net income available to Duke Energy Corporation common stockholders
Net income available to Duke Energy Corporation common stockholders
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted
Basic and Diluted
Basic and Diluted	Basic and Diluted	$	1.59		$	1.81	$	2.27	$	4.03

Weighted Average Shares Outstanding	Weighted Average Shares Outstanding
Weighted Average Shares Outstanding
Weighted Average Shares Outstanding
Basic and Diluted
Basic and Diluted
Basic and Diluted	Basic and Diluted	771			770		771		770

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Net Income	Net Income	$	1,321		$	1,413	$	1,878	$	3,113
Other Comprehensive Income, net of tax(a)	Other Comprehensive Income, net of tax(a)

Pension and OPEB adjustments	Pension and OPEB adjustments	(1)			(7)		(1)		(3)
Net unrealized gains on cash flow hedges		200			14		206		276

Pension and OPEB adjustments

Pension and OPEB adjustments
Net unrealized gains (losses) on cash flow hedges
Reclassification into earnings from cash flow hedges	Reclassification into earnings from cash flow hedges	24			—		28		9

Net unrealized gains (losses) on fair value hedges	Net unrealized gains (losses) on fair value hedges	15			(8)		30		(20)
Net unrealized gains (losses) on fair value hedges
Net unrealized gains (losses) on fair value hedges
Unrealized (losses) gains on available-for-sale securities	Unrealized (losses) gains on available-for-sale securities	(6)			1		(2)		(20)

Other Comprehensive Income, net of tax		232			—		261		242
Other Comprehensive Income (Loss), net of tax
Other Comprehensive Income (Loss), net of tax
Other Comprehensive Income (Loss), net of tax
Comprehensive Income	Comprehensive Income	1,553			1,413		2,139		3,355
Add: Comprehensive (Income) Loss Attributable to Noncontrolling Interests	Add: Comprehensive (Income) Loss Attributable to Noncontrolling Interests	(69)			4		(42)		56
Comprehensive Income Attributable to Duke Energy	Comprehensive Income Attributable to Duke Energy	1,484			1,417		2,097		3,411
Less: Preferred Dividends	Less: Preferred Dividends	39			39		92		92
Comprehensive Income Available to Duke Energy Corporation Common Stockholders	Comprehensive Income Available to Duke Energy Corporation Common Stockholders	$	1,445		$	1,378	$	2,005	$	3,319

(a)Net of income tax expense of approximately ~~$69~~$34 million and tax benefit of $8 million for the three months ended ~~September 30,~~March 31, 2024, and 2023, ~~and approximately $78 million and $72 million for the nine months ended September 30, 2023, and 2022,~~ respectively. ~~All other periods presented include immaterial income tax impacts.~~

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	(in millions)	September 30, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
ASSETS	ASSETS
Current Assets	Current Assets
Current Assets
Current Assets
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	324	$	409

Receivables (net of allowance for doubtful accounts of $49 at 2023 and $40 at 2022)		831		1,309
Receivables of VIEs (net of allowance for doubtful accounts of $154 at 2023 and $176 at 2022)		3,244		3,106
Inventory		4,118		3,584
Regulatory assets (includes $109 at 2023 and $106 at 2022 related to VIEs)		3,489		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 sale	Assets held for sale	440		356
Other (includes $56 at 2023 and $116 at 2022 related to VIEs)		602		973
Other (includes $44 at 2024 and $90 at 2023 related to VIEs)
Total current assets	Total current assets	13,048		13,222
Property, Plant and Equipment	Property, Plant and Equipment
Cost	Cost	170,941		163,839
Cost
Cost
Accumulated depreciation and amortization	Accumulated depreciation and amortization	(54,994)		(52,100)
Facilities to be retired, net		—		9

Net property, plant and equipment
Net property, plant and equipment
Net property, plant and equipment	Net property, plant and equipment	115,947		111,748
Other Noncurrent Assets	Other Noncurrent Assets
Goodwill	Goodwill	19,303		19,303
Regulatory assets (includes $1,668 at 2023 and $1,715 at 2022 related to VIEs)		13,745		14,645
Goodwill
Goodwill
Regulatory assets (includes $1,616 at 2024 and $1,642 at 2023 related to VIEs)
Nuclear decommissioning trust funds	Nuclear decommissioning trust funds	9,245		8,637
Operating lease right-of-use assets, net	Operating lease right-of-use assets, net	1,073		1,042
Investments in equity method unconsolidated affiliates	Investments in equity method unconsolidated affiliates	505		455
Assets held for sale	Assets held for sale	4,596		5,634
Other (includes $43 at 2023 and $52 at 2022 related to VIEs)		3,698		3,400
Other
Total other noncurrent assets	Total other noncurrent assets	52,165		53,116
Total Assets	Total Assets	$	181,160	$	178,086
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY
Current Liabilities	Current Liabilities
Accounts payable		$	3,539	$	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 paper	Notes payable and commercial paper	3,154		3,952
Taxes accrued	Taxes accrued	991		722
Interest accrued	Interest accrued	750		626
Current maturities of long-term debt (includes $428 at 2023 and $350 at 2022 related to VIEs)		4,034		3,878
Current maturities of long-term debt (includes $929 at 2024 and $428 at 2023 related to VIEs)
Asset retirement obligations	Asset retirement obligations	620		773
Regulatory liabilities	Regulatory liabilities	1,396		1,466
Liabilities associated with assets held for sale	Liabilities associated with assets held for sale	589		535
Other	Other	2,087		2,167
Total current liabilities	Total current liabilities	17,160		18,873
Long-Term Debt (includes $3,025 at 2023 and $3,108 at 2022 related to VIEs)		71,353		65,873
Long-Term Debt (includes $2,134 at 2024 and $3,000 at 2023 related to VIEs)
Other Noncurrent Liabilities	Other Noncurrent Liabilities
Deferred income taxes
Deferred income taxes
Deferred income taxes	Deferred income taxes	10,438		9,964
Asset retirement obligations	Asset retirement obligations	11,613		11,955
Regulatory liabilities	Regulatory liabilities	13,396		13,582
Operating lease liabilities	Operating lease liabilities	897		876
Accrued pension and other post-retirement benefit costs	Accrued pension and other post-retirement benefit costs	662		832
Investment tax credits	Investment tax credits	856		849
Liabilities associated with assets held for sale	Liabilities associated with assets held for sale	1,634		1,927
Other (includes $54 at 2023 related to VIEs)		1,325		1,502
Other (includes $42 at 2024 and $35 at 2023 related to VIEs)
Total other noncurrent liabilities	Total other noncurrent liabilities	40,821		41,487
Commitments and Contingencies	Commitments and Contingencies					Commitments and Contingencies
Equity	Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2023 and 2022		973		973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2023 and 2022		989		989
Common stock, $0.001 par value, 2 billion shares authorized; 771 million and 770 million shares outstanding at 2023 and 2022		1		1
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 capital	Additional paid-in capital	44,886		44,862
Retained earnings	Retained earnings	2,036		2,637
Accumulated other comprehensive loss		121		(140)
Accumulated other comprehensive income (loss)
Total Duke Energy Corporation stockholders' equity	Total Duke Energy Corporation stockholders' equity	49,006		49,322
Noncontrolling interests	Noncontrolling interests	2,820		2,531
Total equity	Total equity	51,826		51,853
Total Liabilities and Equity	Total Liabilities and Equity	$	181,160	$	178,086

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

Three Months Ended

March 31,

(in millions)

2023

2022

(in millions)

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

1,878

3,113

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion (including amortization of nuclear fuel)

4,538

4,414

Depreciation, amortization and accretion (including amortization of nuclear fuel)

Equity component of AFUDC

(146)

(151)

(Gains) Losses on sales of Commercial Renewables Disposal Groups

Gains on sales of other assets

(46)

(16)

Impairment of assets and other charges

1,699

202

Deferred income taxes

(29)

209

Equity in earnings of unconsolidated affiliates

(70)

(87)

Contributions to qualified pension plans

(100)

(58)

Payments for asset retirement obligations

(423)

(418)

Provision for rate refunds

(59)

(97)

(Increase) decrease in

Net realized and unrealized mark-to-market and hedging transactions

Receivables

481

(356)

Inventory

(531)

(290)

Other current assets

(2,403)

Increase (decrease) in

Accounts payable

(972)

504

Accounts payable

Taxes accrued

277

206

Other current liabilities

(116)

263

Other assets

491

(68)

Other liabilities

368

188

Net cash provided by operating activities

7,309

5,188

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(9,310)

(8,148)

Capital expenditures

Contributions to equity method investments

(30)

(37)

Purchases of debt and equity securities

(2,811)

(3,619)

Proceeds from sales and maturities of debt and equity securities

2,848

3,691

Net proceeds from the sales of other assets

130

—

Net proceeds from the sales of other assets

Other

(578)

(517)

Net cash used in investing activities

(9,751)

(8,630)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the:

Issuance of long-term debt

8,704

9,466

Issuance of common stock

Payments for the redemption of long-term debt

(3,097)

(3,803)

Proceeds from the issuance of short-term debt with original maturities greater than 90 days

575

Payments for the redemption of short-term debt with original maturities greater than 90 days

(110)

(287)

Notes payable and commercial paper

(1,404)

476

Contributions from noncontrolling interests

278

132

Contributions from noncontrolling interests

Dividends paid

(2,438)

(2,389)

Other

(95)

(124)

Other

Net cash provided by financing activities

2,413

3,551

Net (decrease) increase in cash, cash equivalents and restricted cash

(29)

109

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

603

520

Cash, cash equivalents and restricted cash at end of period

574

629

Supplemental Disclosures:

Significant non-cash transactions:

Accrued capital expenditures

1,528

1,387

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

~~DUKE ENERGY CORPORATION~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Accumulated Other Comprehensive
(Loss) Income
Net Net Unrealized Total
Gains (Losses) Gains Duke Energy
Common Additional (Losses) on Available- Pension and Corporation Non-
Preferred Stock Common Paid-in Retained on for-Sale- OPEB Stockholders' controlling Total
(in millions) Stock Shares Stock Capital Earnings
Hedges(b)
Securities Adjustments Equity Interests Equity
Balance at June 30, 2022 $ 1,962 770 $ 1 $ 44,373 $ 3,457 $ 15 $ (23) $ (65) $ 49,720 $ 1,864 $ 51,584
Net income (loss) — — — — 1,383 — — — 1,383 (9) 1,374
Other comprehensive income (loss) — — — — — 1 1 (7) (5) 5 —
Common stock issuances, including dividend reinvestment and employee benefits — — — 21 — — — — 21 — 21
Common stock dividends — — — — (776) — — — (776) — (776)
Contribution from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 6 6
Distributions to noncontrolling interest in subsidiaries — — — — — — — — — (42) (42)
Other — — — 3 (1) — — — 2 — 2
Balance at September 30, 2022 $ 1,962 $ 770 $ 1 $ 44,397 $ 4,063 $ 16 $ (22) $ (72) $ 50,345 $ 1,824 $ 52,169
Balance at June 30, 2023 $ 1,962 771 $ 1 $ 44,866 $ 1,615 $ (4) $ (19) $ (88) $ 48,333 $ 2,738 $ 51,071
Net income — — — — 1,213 — — — 1,213 69 1,282
Other comprehensive income (loss) — — — — — 239 (6) (1) 232 — 232
Common stock issuances, including dividend reinvestment and employee benefits — — — 22 — — — — 22 — 22
Common stock dividends — — — — (793) — — — (793) — (793)
Contribution from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 30 30
Distributions to noncontrolling interest in subsidiaries — — — — — — — — — (20) (20)
Other — — — (2) 1 — — — (1) 3 2
Balance at September 30, 2023 $ 1,962 $ 771 $ 1 $ 44,886 $ 2,036 $ 235 $ (25) $ (89) $ 49,006 $ 2,820 $ 51,826

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


		Nine Months Ended September 30, 2022 and 2023
												Accumulated Other Comprehensive
												(Loss) Income
												Net		Net Unrealized				Total
												Gains		Gains (Losses)				Duke Energy
				Common			Additional					(Losses)		on Available-		Pension and		Corporation		Non-
		Preferred		Stock	Common		Paid-in		Retained			on		for-Sale-		OPEB		Stockholders'		controlling		Total
		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
		Preferred																							Stock	Common	Paid-in	Retained		on		for-Sale-	OPEB	Stockholders'	controlling	Total
(in millions)	(in millions)	Stock		Shares	Stock		Capital		Earnings			Hedges(b)		Securities		Adjustments		Equity		Interests		Equity		(in millions)	Stock	Shares	Stock	Capital	Earnings		Hedges(b)		Securities	Adjustments	Equity	Interests	Equity
Balance at December 31, 2021		$	1,962	769	$	1	$	44,371	$	3,265		$	(232)	$	(2)	$	(69)	$	49,296	$	1,840	$	51,136
Balance at December 31, 2022
Net income (loss)	Net income (loss)	—		—	—		—		3,094			—		—		—		3,094		(73)		3,021
Other comprehensive income (loss)	Other comprehensive income (loss)	—		—	—		—		—			248		(20)		(3)		225		17		242

Common stock issuances, including dividend reinvestment and employee benefits	Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		41		—			—		—		—		41		—		41

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	Common stock dividends	—		—	—		—		(2,297)			—		—		—		(2,297)		—		(2,297)

Sale of noncontrolling interest
Sale of noncontrolling interest
Sale of noncontrolling interest	Sale of noncontrolling interest	—		—	—		(17)		—			—		—		—		(17)		38		21
Contributions from noncontrolling interests, net of transaction costs(a)	Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		—		—			—		—		—		—		94		94
Distributions to noncontrolling interest in subsidiaries	Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—			—		—		—		—		(92)		(92)
Other	Other	—		—	—		2		1			—		—		—		3		—		3
Balance at September 30, 2022		$	1,962	770	$	1	$	44,397	$	4,063		$	16	$	(22)	$	(72)	$	50,345	$	1,824	$	52,169
Balance at March 31, 2023

Balance at December 31, 2022		$	1,962	770	$	1	$	44,862	$	2,637		$	(29)	$	(23)	$	(88)	$	49,322	$	2,531	$	51,853
Balance at December 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023
Net income	Net income	—		—	—		—		1,744			—		—		—		1,744		42		1,786
Other comprehensive income (loss)	Other comprehensive income (loss)	—		—	—		—		—			264		(2)		(1)		261		—		261

Common stock issuances, including dividend reinvestment and employee benefits	Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		43		—			—		—		—		43		—		43

Common stock issuances, including dividend reinvestment and employee benefits

Common stock issuances, including dividend reinvestment and employee benefits

Common stock dividends	Common stock dividends	—		—	—		—		(2,346)			—		—		—		(2,346)		—		(2,346)
Sale of noncontrolling interest		—		—	—		(13)		—			—		—		—		(13)		10		(3)
Contributions from noncontrolling interests, net of transaction costs(a)		—		—	—		—		—			—		—		—		—		278		278
Distributions to noncontrolling interest in subsidiaries		—		—	—		—		—			—		—		—		—		(45)		(45)
Common stock dividends
Common stock dividends

Other	Other	—		—	—		(6)		1			—		—		—		(5)		4		(1)
Balance at September 30, 2023		$	1,962	771	$	1	$	44,886	$	2,036		$	235	$	(25)	$	(89)	$	49,006	$	2,820	$	51,826

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 Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues	$	2,393		$	2,175	$	6,155	$	5,844
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	690			544		1,823		1,423
Operation, maintenance and other	Operation, maintenance and other	424			436		1,285		1,410
Depreciation and amortization	Depreciation and amortization	407			375		1,186		1,138
Property and other taxes	Property and other taxes	90			88		276		258
Impairment of assets and other charges	Impairment of assets and other charges	64			6		70		(3)
Total operating expenses	Total operating expenses	1,675			1,449		4,640		4,226
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	—			4		26		4
Operating Income	Operating Income	718			730		1,541		1,622
Other Income and Expenses, net	Other Income and Expenses, net	63			59		181		172
Interest Expense	Interest Expense	172			131		504		415
Income Before Income Taxes	Income Before Income Taxes	609			658		1,218		1,379
Income Tax Expense	Income Tax Expense	30			34		97		87
Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	579		$	624	$	1,121	$	1,292

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	5	$	9
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 companies	173		203

Inventory	1,478		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 assets	4,307		4,547
Property, Plant and Equipment
Cost	57,477		56,670
Accumulated depreciation and amortization	(20,210)		(19,896)

Net property, plant and equipment	37,267		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 funds	6,077		5,686
Operating lease right-of-use assets, net	75		78
Other	1,116		1,109
Total other noncurrent assets	11,118		10,789
Total Assets	$	52,692	$	52,110
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	925	$	1,183
Accounts payable to affiliated companies	230		195
Notes payable to affiliated companies	55		668
Taxes accrued	148		281
Interest accrued	161		179
Current maturities of long-term debt (includes $511 at 2024 and $10 at 2023 related to VIEs)	520		19
Asset retirement obligations	236		224
Regulatory liabilities	574		587
Other	617		702
Total current liabilities	3,466		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 Companies	300		300
Other Noncurrent Liabilities
Deferred income taxes	4,329		4,379
Asset retirement obligations	3,779		3,789
Regulatory liabilities	6,302		5,990
Operating lease liabilities	72		75
Accrued pension and other post-retirement benefit costs	54		57
Investment tax credits	300		301
Other (includes $19 at 2024 and $17 at 2023 related to VIEs)	554		581
Total other noncurrent liabilities	15,390		15,172
Commitments and Contingencies
Equity
Member's equity	17,343		16,913
Accumulated other comprehensive loss	(6)		(6)
Total equity	17,337		16,907
Total Liabilities and Equity	$	52,692	$	52,110

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 19 $ 44
Receivables (net of allowance for doubtful accounts of $9 at 2023 and $3 at 2022) 279 338
Receivables of VIEs (net of allowance for doubtful accounts of $47 at 2023 and $65 at 2022) 1,028 928
Receivables from affiliated companies 165 390
Inventory 1,422 1,164
Regulatory assets (includes $12 at 2023 and 2022 related to VIEs) 1,447 1,095
Other (includes $5 at 2023 and $8 at 2022 related to VIEs) 86 216
Total current assets 4,446 4,175
Property, Plant and Equipment
Cost 56,888 54,650
Accumulated depreciation and amortization (19,668) (18,669)
Net property, plant and equipment 37,220 35,981
Other Noncurrent Assets
Regulatory assets (includes $199 at 2023 and $208 at 2022 related to VIEs) 4,020 4,293
Nuclear decommissioning trust funds 5,156 4,783
Operating lease right-of-use assets, net 75 78
Other 1,087 1,036
Total other noncurrent assets 10,338 10,190
Total Assets $ 52,004 $ 50,346
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 1,015 $ 1,472
Accounts payable to affiliated companies 221 209
Notes payable to affiliated companies 331 1,233
Taxes accrued 350 228
Interest accrued 150 120
Current maturities of long-term debt (includes $11 at 2023 and $10 at 2022 related to VIEs) 19 1,018
Asset retirement obligations 238 261
Regulatory liabilities 532 530
Other 597 580
Total current liabilities 3,453 5,651
Long-Term Debt (includes $708 at 2023 and $689 at 2022 related to VIEs) 15,676 12,948
Long-Term Debt Payable to Affiliated Companies 300 300
Other Noncurrent Liabilities
Deferred income taxes 4,369 4,153
Asset retirement obligations 5,030 5,121
Regulatory liabilities 5,614 5,783
Operating lease liabilities 75 83
Accrued pension and other post-retirement benefit costs 60 38
Investment tax credits 302 300
Other 565 527
Total other noncurrent liabilities 16,015 16,005
Commitments and Contingencies
Equity
Member's equity 16,566 15,448
Accumulated other comprehensive loss (6) (6)
Total equity 16,560 15,442
Total Liabilities and Equity $ 52,004 $ 50,346


	Three Months Ended
	March 31,
(in millions)	2024		2023
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 charges	1		2
Deferred income taxes	14		32



Payments for asset retirement obligations	(36)		(39)
Provision for rate refunds	(4)		(19)
(Increase) decrease in

Receivables	14		199
Receivables from affiliated companies	30		209
Inventory	7		(139)
Other current assets	(23)		(293)
Increase (decrease) in
Accounts payable	(203)		(594)
Accounts payable to affiliated companies	35		27
Taxes accrued	(133)		(119)
Other current liabilities	(134)		(78)
Other assets	191		206
Other liabilities	(19)		76
Net cash provided by operating activities	605		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 securities	535		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 debt	1,011		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 activities	391		758
Net decrease in cash, cash equivalents and restricted cash	(7)		(23)
Cash, cash equivalents and restricted cash at beginning of period	19		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


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,121 $ 1,292
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel) 1,380 1,335
Equity component of AFUDC (69) (75)
Gains on sales of other assets (26) —
Impairment of assets and other charges 70 (3)
Deferred income taxes (7) 230
Contributions to qualified pension plans (26) (15)
Payments for asset retirement obligations (145) (137)
Provision for rate refunds (35) (55)
(Increase) decrease in
Receivables (4) (17)
Receivables from affiliated companies 225 (107)
Inventory (257) (86)
Other current assets (439) (1,139)
Increase (decrease) in
Accounts payable (523) 104
Accounts payable to affiliated companies 12 (88)
Taxes accrued 121 (9)
Other current liabilities (48) 279
Other assets 526 22
Other liabilities 105 (269)
Net cash provided by operating activities 1,981 1,262
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (2,646) (2,313)
Purchases of debt and equity securities (1,594) (2,083)
Proceeds from sales and maturities of debt and equity securities 1,594 2,083
Net proceeds from the sales of other assets 30 —
Other (215) (185)
Net cash used in investing activities (2,831) (2,498)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 2,764 1,352
Payments for the redemption of long-term debt (1,040) (389)
Notes payable to affiliated companies (902) 358
Distributions to parent — (50)
Other (1) (1)
Net cash provided by financing activities 821 1,270
Net (decrease) increase in cash, cash equivalents and restricted cash (29) 34
Cash, cash equivalents and restricted cash at beginning of period 53 8
Cash, cash equivalents and restricted cash at end of period $ 24 $ 42
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 534 $ 460






















	Three Months Ended March 31, 2023 and 2024
			Accumulated Other
			Comprehensive
			Loss
	Member's		Net Losses on		Total
(in millions)	Equity		Cash Flow Hedges		Equity
Balance at December 31, 2022	$	15,448	$	(6)	$	15,442
Net income	272		—		272



Balance at March 31, 2023	$	15,720	$	(6)	$	15,714

Balance at December 31, 2023	$	16,913	$	(6)	$	16,907
Net income	430		—		430



Balance at March 31, 2024	$	17,343	$	(6)	$	17,337

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

~~DUKE ENERGY CAROLINAS, LLC~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Accumulated Other
Comprehensive
Loss
Member's Net Losses on Total
(in millions) Equity Cash Flow Hedges Equity
Balance at June 30, 2022 $ 14,515 $ (6) $ 14,509
Net income 624 — 624
Balance at September 30, 2022 $ 15,139 $ (6) $ 15,133
Balance at June 30, 2023 $ 15,990 $ (6) $ 15,984
Net income 579 — 579
Other (3) — (3)
Balance at September 30, 2023 $ 16,566 $ (6) $ 16,560
Nine Months Ended September 30, 2022 and 2023
Accumulated Other
Comprehensive
Loss
Member's Net Losses on Total
(in millions) Equity Cash Flow Hedges Equity
Balance at December 31, 2021 $ 13,897 $ (6) $ 13,891
Net income 1,292 — 1,292
Distributions to parent (50) — (50)
Balance at September 30, 2022 $ 15,139 $ (6) $ 15,133
Balance at December 31, 2022 $ 15,448 $ (6) $ 15,442
Net income 1,121 — 1,121
Other (3) — (3)
Balance at September 30, 2023 $ 16,566 $ (6) $ 16,560

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

PROGRESS ENERGY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues	$	4,055		$	3,881	$	10,315	$	10,087
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,535			1,605		3,902		3,927
Operation, maintenance and other	Operation, maintenance and other	711			581		1,963		1,829
Depreciation and amortization	Depreciation and amortization	563			562		1,609		1,607
Property and other taxes	Property and other taxes	205			169		546		472
Impairment of assets and other charges	Impairment of assets and other charges	24			—		29		4
Total operating expenses	Total operating expenses	3,038			2,917		8,049		7,839
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	8			3		20		6
Operating Income	Operating Income	1,025			967		2,286		2,254
Other Income and Expenses, net	Other Income and Expenses, net	49			45		146		150
Interest Expense	Interest Expense	241			197		706		616
Income Before Income Taxes	Income Before Income Taxes	833			815		1,726		1,788
Income Tax Expense	Income Tax Expense	131			129		280		289

Net Income	Net Income	702			686		1,446		1,499
Less: Net Income Attributable to Noncontrolling Interests		—			—		—		1
Net Income Attributable to Parent		$	702		$	686	$	1,446	$	1,498

Net Income

Net Income	Net Income	$	702		$	686	$	1,446	$	1,499
Other Comprehensive Income, net of tax	Other Comprehensive Income, net of tax

Net unrealized gains on cash flow hedges		—			—		—		1

Unrealized (losses) gains on available-for-sale securities		—			(1)		2		(4)

Other Comprehensive (Loss) Income, net of tax		—			(1)		2		(3)
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 Income	Comprehensive Income	$	702		$	685	$	1,448	$	1,496
Less: Comprehensive Income Attributable to Noncontrolling Interests		—			—		—		1
Comprehensive Income Attributable to Parent		$	702		$	685	$	1,448	$	1,495

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 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 companies	3		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 assets	5,000		5,435
Property, Plant and Equipment
Cost	68,755		67,644
Accumulated depreciation and amortization	(22,729)		(22,300)

Net property, plant and equipment	46,026		45,344
Other Noncurrent Assets
Goodwill	3,655		3,655
Regulatory assets (includes $1,423 at 2024 and $1,446 at 2023 related to VIEs)	6,526		6,430
Nuclear decommissioning trust funds	4,697		4,457
Operating lease right-of-use assets, net	597		617
Other	1,221		1,156
Total other noncurrent assets	16,696		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 companies	548		464
Notes payable to affiliated companies	820		1,043
Taxes accrued	201		259
Interest accrued	246		224
Current maturities of long-term debt (includes $418 at 2024 and 2023 related to VIEs)	659		661
Asset retirement obligations	229		245
Regulatory liabilities	394		418
Other	788		860
Total current liabilities	5,059		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 Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	5,214		5,197
Asset retirement obligations	3,870		3,900
Regulatory liabilities	5,344		5,083
Operating lease liabilities	530		544
Accrued pension and other post-retirement benefit costs	263		266
Investment tax credits	370		371
Other (includes $22 at 2024 and $19 at 2023 related to VIEs)	238		227
Total other noncurrent liabilities	15,829		15,588
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2024 and 2023	—		—
Additional paid-in capital	11,830		11,830
Retained earnings	11,475		11,040
Accumulated other comprehensive loss	(10)		(10)


Total equity	23,295		22,860
Total Liabilities and Equity	$	67,722	$	67,094

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 87 $ 108
Receivables (net of allowance for doubtful accounts of $16 at 2023 and $13 at 2022) 212 318
Receivables of VIEs (net of allowance for doubtful accounts of $61 at 2023 and $68 at 2022) 1,597 1,289
Receivables from affiliated companies 20 22
Inventory 1,803 1,579
Regulatory assets (includes $97 at 2023 and $94 at 2022 related to VIEs) 1,696 1,833
Other (includes $42 at 2023 and $88 at 2022 related to VIEs) 164 342
Total current assets 5,579 5,491
Property, Plant and Equipment
Cost 67,872 64,822
Accumulated depreciation and amortization (21,772) (20,584)
Net property, plant and equipment 46,100 44,238
Other Noncurrent Assets
Goodwill 3,655 3,655
Regulatory assets (includes $1,469 at 2023 and $1,507 at 2022 related to VIEs) 6,448 7,146
Nuclear decommissioning trust funds 4,089 3,855
Operating lease right-of-use assets, net 631 628
Other 1,203 1,066
Total other noncurrent assets 16,026 16,350
Total Assets $ 67,705 $ 66,079
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 1,201 $ 1,481
Accounts payable to affiliated companies 506 712
Notes payable to affiliated companies 983 843
Taxes accrued 492 135
Interest accrued 217 206
Current maturities of long-term debt (includes $417 at 2023 and $340 at 2022 related to VIEs) 1,265 697
Asset retirement obligations 261 289
Regulatory liabilities 515 576
Other 838 782
Total current liabilities 6,278 5,721
Long-Term Debt (includes $1,911 at 2023 and $2,003 at 2022 related to VIEs) 21,866 21,592
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 5,228 5,147
Asset retirement obligations 5,669 5,892
Regulatory liabilities 4,784 4,753
Operating lease liabilities 548 546
Accrued pension and other post-retirement benefit costs 270 292
Investment tax credits 363 358
Other (includes $30 at 2023 related to VIEs) 198 222
Total other noncurrent liabilities 17,060 17,210
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2023 and 2022 — —
Additional paid-in capital 11,830 11,832
Retained earnings 10,530 9,585
Accumulated other comprehensive loss (9) (11)
Total equity 22,351 21,406
Total Liabilities and Equity $ 67,705 $ 66,079


	Three Months Ended
	March 31,
(in millions)	2024		2023
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	—		5
Deferred income taxes	(5)		51



Payments for asset retirement obligations	(68)		(58)
Provision for rate refunds	—		(14)
(Increase) decrease in

Receivables	103		188
Receivables from affiliated companies	87		(2)
Inventory	(86)		(133)
Other current assets	232		319
Increase (decrease) in
Accounts payable	(79)		(214)
Accounts payable to affiliated companies	84		(302)
Taxes accrued	(57)		36
Other current liabilities	(36)		(107)
Other assets	(134)		(212)
Other liabilities	27		4
Net cash provided by operating activities	1,154		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 securities	424		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 debt	498		996
Payments for the redemption of long-term debt	(73)		(66)
Notes payable to affiliated companies	(223)		2




Other	(1)		(1)
Net cash provided by financing activities	201		931
Net decrease in cash, cash equivalents and restricted cash	(49)		(50)
Cash, cash equivalents and restricted cash at beginning of period	135		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


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,446 $ 1,499
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel) 2,021 1,826
Equity component of AFUDC (49) (50)
Impairment of assets and other charges 29 4
Deferred income taxes (38) 284
Contributions to qualified pension plans (22) (13)
Payments for asset retirement obligations (212) (207)
Provision for rate refunds (24) (44)
(Increase) decrease in
Receivables (198) (314)
Receivables from affiliated companies 2 110
Inventory (224) (154)
Other current assets 399 (1,133)
Increase (decrease) in
Accounts payable (177) 360
Accounts payable to affiliated companies (206) (31)
Taxes accrued 357 173
Other current liabilities 4 216
Other assets 183 (262)
Other liabilities (10) 615
Net cash provided by operating activities 3,281 2,879
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (3,607) (3,130)
Purchases of debt and equity securities (1,108) (1,301)
Proceeds from sales and maturities of debt and equity securities 1,151 1,357
Notes receivable from affiliated companies — (232)
Other (239) (88)
Net cash used in investing activities (3,803) (3,394)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 1,272 1,452
Payments for the redemption of long-term debt (440) (1,136)
Notes payable to affiliated companies 140 509
Dividends to parent (500) (250)
Other (1) (36)
Net cash provided by financing activities 471 539
Net (decrease) increase in cash, cash equivalents and restricted cash (51) 24
Cash, cash equivalents and restricted cash at beginning of period 184 113
Cash, cash equivalents and restricted cash at end of period $ 133 $ 137
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 558 $ 472


























	Three Months Ended March 31, 2023 and 2024
					Accumulated Other Comprehensive Loss
					Net Gains		Net Unrealized				Total Progress
	Additional				(Losses) on		Gains (Losses) on		Pension and		Energy, Inc.
	Paid-in		Retained		Cash Flow		Available-for-		OPEB		Stockholders'		Total
	Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity		Equity
Balance at December 31, 2022	$	11,832	$	9,585	$	(1)	$	(8)	$	(2)	$	21,406	$	21,406
Net income	—		359		—		—		—		359		359
Other comprehensive income	—		—		—		2		—		2		2





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


FINANCIAL STATEMENTS

~~PROGRESS ENERGY, INC.~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Accumulated Other Comprehensive Loss
Net Gains Net Unrealized Total Progress
Additional on Losses on Pension and Energy, Inc.
Paid-in Retained Cash Flow Available-for- OPEB Stockholders' Noncontrolling Total
(in millions) Capital Earnings Hedges Sale Securities Adjustments Equity Interests Equity
Balance at June 30, 2022 $ 9,149 $ 11,001 $ (1) $ (5) $ (7) $ 20,137 $ 3 $ 20,140
Net income — 686 — — — 686 — 686
Other comprehensive loss — — — (1) — (1) — (1)
Distributions to noncontrolling interests — — — — — — (33) (33)
Equitization of certain notes payable to affiliates 475 — — — — 475 — 475
Other 2 — — — — 2 — 2
Balance at September 30, 2022 $ 9,626 $ 11,687 $ (1) $ (6) $ (7) $ 21,299 $ (30) $ 21,269
Balance at June 30, 2023 $ 11,830 $ 10,329 $ (1) $ (6) $ (2) $ 22,150 $ — $ 22,150
Net income — 702 — — — 702 — 702
Dividends to parent — (500) — — — (500) — (500)
Other — (1) — — — (1) — (1)
Balance at September 30, 2023 $ 11,830 $ 10,530 $ (1) $ (6) $ (2) $ 22,351 $ — $ 22,351
Nine Months Ended September 30, 2022 and 2023
Accumulated Other Comprehensive Loss
Net Gains Net Unrealized Total Progress
Additional on Gains (Losses) on Pension and Energy, Inc.
Paid-in Retained Cash Flow Available-for- OPEB Stockholders' Noncontrolling Total
Capital Earnings Hedges Sale Securities Adjustments Equity Interests Equity
Balance at December 31, 2021 $ 9,149 $ 8,007 $ (2) $ (2) $ (7) $ 17,145 $ 3 $ 17,148
Net income — 1,498 — — — 1,498 1 1,499
Other comprehensive income (loss) — — 1 (4) — (3) — (3)
Distributions to noncontrolling interests — — — — — — (34) (34)
Dividends to parent — (250) — — — (250) — (250)
Equitization of certain notes payable to affiliates 475 2,431 — — — 2,906 — 2,906
Other 2 1 — — — 3 — 3
Balance at September 30, 2022 $ 9,626 $ 11,687 $ (1) $ (6) $ (7) $ 21,299 $ (30) $ 21,269
Balance at December 31, 2022 $ 11,832 $ 9,585 $ (1) $ (8) $ (2) $ 21,406 $ — $ 21,406
Net income — 1,446 — — — 1,446 — 1,446
Other comprehensive income — — — 2 — 2 — 2
Dividends to parent — (500) — — — (500) — (500)
Other (2) (1) — — — (3) — (3)
Balance at September 30, 2023 $ 11,830 $ 10,530 $ (1) $ (6) $ (2) $ 22,351 $ — $ 22,351

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues	$	1,886		$	1,969	$	4,844	$	5,182
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	651			749		1,685		1,916
Operation, maintenance and other	Operation, maintenance and other	345			350		1,051		1,101
Depreciation and amortization	Depreciation and amortization	324			313		935		890
Property and other taxes	Property and other taxes	48			46		143		136
Impairment of assets and other charges	Impairment of assets and other charges	24			—		31		4
Total operating expenses	Total operating expenses	1,392			1,458		3,845		4,047
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	1			1		2		2
Operating Income	Operating Income	495			512		1,001		1,137
Other Income and Expenses, net	Other Income and Expenses, net	31			29		92		83
Interest Expense	Interest Expense	109			85		315		260
Income Before Income Taxes	Income Before Income Taxes	417			456		778		960
Income Tax Expense	Income Tax Expense	49			59		101		129
Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	368		$	397	$	677	$	831

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 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 companies	3		16

Inventory	1,294		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 assets	3,137		3,247
Property, Plant and Equipment
Cost	39,865		39,283
Accumulated depreciation and amortization	(15,503)		(15,227)

Net property, plant and equipment	24,362		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 funds	4,345		4,075
Operating lease right-of-use assets, net	304		318
Other	715		682
Total other noncurrent assets	9,995		9,621
Total Assets	$	37,494	$	36,924
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	557	$	634
Accounts payable to affiliated companies	294		332
Notes payable to affiliated companies	754		891
Taxes accrued	129		176
Interest accrued	89		114
Current maturities of long-term debt (includes $34 at 2024 and 2023 related to VIEs)	73		72
Asset retirement obligations	228		244
Regulatory liabilities	300		300
Other	429		481
Total current liabilities	2,853		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 Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	2,555		2,560
Asset retirement obligations	3,619		3,626
Regulatory liabilities	4,635		4,375
Operating lease liabilities	283		293
Accrued pension and other post-retirement benefit costs	144		146
Investment tax credits	128		129
Other (includes $13 at 2024 and $12 at 2023 related to VIEs)	93		102
Total other noncurrent liabilities	11,457		11,231
Commitments and Contingencies
Equity
Member's Equity	11,079		10,807


Total Liabilities and Equity	$	37,494	$	36,924

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 27 $ 49
Receivables (net of allowance for doubtful accounts of $7 at 2023 and $4 at 2022) 129 167
Receivables of VIEs (net of allowance for doubtful accounts of $37 at 2023 and $40 at 2022) 831 793
Receivables from affiliated companies 32 25
Inventory 1,141 1,006
Regulatory assets (includes $39 at 2023 and 2022 related to VIEs) 946 690
Other (includes $18 at 2023 and $42 at 2022 related to VIEs) 49 174
Total current assets 3,155 2,904
Property, Plant and Equipment
Cost 40,283 38,875
Accumulated depreciation and amortization (14,869) (14,201)
Net property, plant and equipment 25,414 24,674
Other Noncurrent Assets
Regulatory assets (includes $653 at 2023 and $681 at 2022 related to VIEs) 4,406 4,724
Nuclear decommissioning trust funds 3,697 3,430
Operating lease right-of-use assets, net 329 370
Other 693 650
Total other noncurrent assets 9,125 9,174
Total Assets $ 37,694 $ 36,752
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 502 $ 601
Accounts payable to affiliated companies 252 508
Notes payable to affiliated companies 691 238
Taxes accrued 255 77
Interest accrued 86 101
Current maturities of long-term debt (includes $34 at 2023 and 2022 related to VIEs) 71 369
Asset retirement obligations 260 288
Regulatory liabilities 290 332
Other 452 384
Total current liabilities 2,859 2,898
Long-Term Debt (includes $1,079 at 2023 and $1,114 at 2022 related to VIEs) 11,497 10,568
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 2,558 2,477
Asset retirement obligations 5,362 5,535
Regulatory liabilities 4,120 4,120
Operating lease liabilities 298 335
Accrued pension and other post-retirement benefit costs 150 160
Investment tax credits 130 124
Other (includes $19 at 2023 related to VIEs) 84 76
Total other noncurrent liabilities 12,702 12,827
Commitments and Contingencies
Equity
Member's Equity 10,486 10,309
Total Liabilities and Equity $ 37,694 $ 36,752


	Three Months Ended
	March 31,
(in millions)	2024		2023
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	—		4
Deferred income taxes	(21)		27



Payments for asset retirement obligations	(46)		(46)
Provision for rate refunds	—		(14)
(Increase) decrease in

Receivables	50		144
Receivables from affiliated companies	13		(1)
Inventory	(67)		(76)
Other current assets	97		(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 activities	389		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 securities	351		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 debt	495		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 activities	325		719
Net decrease in cash, cash equivalents and restricted cash	(2)		(11)
Cash, cash equivalents and restricted cash at beginning of period	51		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


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 677 $ 831
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel) 1,077 1,034
Equity component of AFUDC (38) (37)
Impairment of assets and other charges 31 4
Deferred income taxes (12) 66
Contributions to qualified pension plans (13) (8)
Payments for asset retirement obligations (166) (133)
Provision for rate refunds (24) (44)
(Increase) decrease in
Receivables 5 (95)
Receivables from affiliated companies (7) 64
Inventory (135) (58)
Other current assets (189) (266)
Increase (decrease) in
Accounts payable (38) 7
Accounts payable to affiliated companies (256) 58
Taxes accrued 178 (1)
Other current liabilities (25) 122
Other assets 175 (105)
Other liabilities 23 39
Net cash provided by operating activities 1,263 1,478
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,756) (1,506)
Purchases of debt and equity securities (973) (1,148)
Proceeds from sales and maturities of debt and equity securities 969 1,141
Notes receivable from affiliated companies — (329)
Other (114) (11)
Net cash used in investing activities (1,874) (1,853)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 991 1,448
Payments for the redemption of long-term debt (364) (612)
Notes payable to affiliated companies 452 (172)
Distributions to parent (500) (250)
Other (1) (1)
Net cash provided by financing activities 578 413
Net (decrease) increase in cash, cash equivalents and restricted cash (33) 38
Cash, cash equivalents and restricted cash at beginning of period 79 39
Cash, cash equivalents and restricted cash at end of period $ 46 $ 77
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 206 $ 184




















	Three Months Ended
	March 31, 2023 and 2024

(in millions)	Member's Equity
Balance at December 31, 2022	$	10,309
Net income	169



Balance at March 31, 2023	$	10,478

Balance at December 31, 2023	$	10,807
Net income	272




Balance at March 31, 2024	$	11,079

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

~~DUKE ENERGY PROGRESS, LLC~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

~~Three Months Ended~~

~~September 30, 2022 and 2023~~

~~(in millions)~~

~~Member's Equity~~

~~Balance at June 30, 2022~~

~~9,735~~

~~Net income~~

~~397~~

~~Balance at September 30, 2022~~

~~10,132~~

~~Balance at June 30, 2023~~

~~10,618~~

~~Net income~~

~~368~~

~~Distributions to parent~~

~~(500)~~

~~Balance at September 30, 2023~~

~~10,486~~

~~Nine Months Ended~~

~~September 30, 2022 and 2023~~

~~(in millions)~~

~~Member's Equity~~

~~Balance at December 31, 2021~~

~~9,551~~

~~Net income~~

~~831~~

~~Distributions to parent~~

~~(250)~~

~~Balance at September 30, 2022~~

~~10,132~~

~~Balance at December 31, 2022~~

~~10,309~~

~~Net income~~

~~677~~

~~Distributions to parent~~

~~(500)~~

~~Balance at September 30, 2023~~

~~10,486~~

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues	$	2,164		$	1,907	$	5,456	$	4,890
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	885			856		2,218		2,011
Operation, maintenance and other	Operation, maintenance and other	361			226		898		716
Depreciation and amortization	Depreciation and amortization	239			249		674		717
Property and other taxes	Property and other taxes	157			123		403		335
Impairment of assets and other charges	Impairment of assets and other charges	—			—		(1)		—
Total operating expenses	Total operating expenses	1,642			1,454		4,192		3,779
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	—			3		1		5
Operating Income	Operating Income	522			456		1,265		1,116
Other Income and Expenses, net	Other Income and Expenses, net	19			19		56		74
Interest Expense	Interest Expense	103			84		305		258
Income Before Income Taxes	Income Before Income Taxes	438			391		1,016		932
Income Tax Expense	Income Tax Expense	91			72		206		181
Net Income	Net Income	$	347		$	319	$	810	$	751

Other Comprehensive (Loss) Gain, net of tax
Other Comprehensive Income, net of tax

Unrealized (losses) gains on available-for-sale securities		—			(1)		2		(3)

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 Income	Comprehensive Income	$	347		$	318	$	812	$	748

Comprehensive Income

Comprehensive Income

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 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 companies	2		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 assets	1,838		2,322
Property, Plant and Equipment
Cost	28,882		28,353
Accumulated depreciation and amortization	(7,219)		(7,067)
Net property, plant and equipment	21,663		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 funds	352		382
Operating lease right-of-use assets, net	294		299
Other	456		429
Total other noncurrent assets	2,997		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 companies	121		135
Notes payable to affiliated companies	66		152
Taxes accrued	134		185
Interest accrued	128		86
Current maturities of long-term debt (includes $384 at 2024 and 2023 related to VIEs)	586		589
Asset retirement obligations	1		1
Regulatory liabilities	93		118
Other	332		350
Total current liabilities	2,077		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 taxes	2,750		2,733
Asset retirement obligations	252		274
Regulatory liabilities	709		708
Operating lease liabilities	247		251
Accrued pension and other post-retirement benefit costs	97		98
Investment tax credits	242		242
Other (includes $10 at 2024 and $6 at 2023 related to VIEs)	111		86
Total other noncurrent liabilities	4,408		4,392
Commitments and Contingencies
Equity
Member's equity	10,227		10,048
Accumulated other comprehensive loss	(5)		(5)
Total equity	10,222		10,043
Total Liabilities and Equity	$	26,498	$	26,601

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 41 $ 45
Receivables (net of allowance for doubtful accounts of $10 at 2023 and $8 at 2022) 80 148
Receivables of VIEs (net of allowance for doubtful accounts of $24 at 2023 and $28 at 2022) 766 496
Receivables from affiliated companies 3 2
Inventory 662 573
Regulatory assets (includes $58 at 2023 and $55 at 2022 related to VIEs) 749 1,143
Other (includes $24 at 2023 and $46 at 2022 related to VIEs) 129 108
Total current assets 2,430 2,515
Property, Plant and Equipment
Cost 27,581 25,940
Accumulated depreciation and amortization (6,896) (6,377)
Net property, plant and equipment 20,685 19,563
Other Noncurrent Assets
Regulatory assets (includes $816 at 2023 and $826 at 2022 related to VIEs) 2,042 2,422
Nuclear decommissioning trust funds 393 424
Operating lease right-of-use assets, net 302 258
Other 463 372
Total other noncurrent assets 3,200 3,476
Total Assets $ 26,315 $ 25,554
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 698 $ 880
Accounts payable to affiliated companies 154 177
Notes payable to affiliated companies 292 605
Taxes accrued 342 53
Interest accrued 104 80
Current maturities of long-term debt (includes $383 at 2023 and $306 at 2022 related to VIEs) 1,194 328
Asset retirement obligations 1 1
Regulatory liabilities 224 244
Other 349 363
Total current liabilities 3,358 2,731
Long-Term Debt (includes $832 at 2023 and $890 at 2022 related to VIEs) 8,726 9,381
Other Noncurrent Liabilities
Deferred income taxes 2,771 2,789
Asset retirement obligations 307 357
Regulatory liabilities 664 633
Operating lease liabilities 250 211
Accrued pension and other post-retirement benefit costs 100 111
Investment tax credits 233 234
Other (includes $11 at 2023 related to VIEs) 70 84
Total other noncurrent liabilities 4,395 4,419
Commitments and Contingencies
Equity
Member's equity 9,842 9,031
Accumulated other comprehensive loss (6) (8)
Total equity 9,836 9,023
Total Liabilities and Equity $ 26,315 $ 25,554


	Three Months Ended
	March 31,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	179	$	205
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	284		194
Equity component of AFUDC	(5)		(3)

Impairment of assets and other charges	—		1
Deferred income taxes	10		21



Payments for asset retirement obligations	(22)		(12)

(Increase) decrease in

Receivables	53		42
Receivables from affiliated companies	236		(1)
Inventory	(19)		(57)
Other current assets	132		363
Increase (decrease) in
Accounts payable	(48)		(211)
Accounts payable to affiliated companies	(14)		(67)
Taxes accrued	(51)		79
Other current liabilities	11		(27)
Other assets	(16)		(193)
Other liabilities	34		(8)
Net cash provided by operating activities	764		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 securities	73		68

Other	(62)		(38)
Net cash used in investing activities	(688)		(619)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	3		5
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 period	67		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


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 810 $ 751
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 943 790
Equity component of AFUDC (10) (13)
Impairment of assets and other charges (1) —
Deferred income taxes (42) 237
Equity in (earnings) losses of unconsolidated affiliates 1 —
Contributions to qualified pension plans (9) (5)
Payments for asset retirement obligations (46) (73)
(Increase) decrease in
Receivables (203) (218)
Receivables from affiliated companies (1) 10
Inventory (89) (95)
Other current assets 516 (814)
Increase (decrease) in
Accounts payable (140) 354
Accounts payable to affiliated companies (23) (90)
Taxes accrued 289 123
Other current liabilities 23 72
Other assets 12 (162)
Other liabilities (14) 37
Net cash provided by operating activities 2,016 904
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,851) (1,624)
Purchases of debt and equity securities (135) (153)
Proceeds from sales and maturities of debt and equity securities 182 216
Other (125) (76)
Net cash used in investing activities (1,929) (1,637)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 281 4
Payments for the redemption of long-term debt (76) (74)
Notes payable to affiliated companies (313) 784
Other (1) (1)
Net cash (used in) provided by financing activities (109) 713
Net decrease in cash, cash equivalents and restricted cash (22) (20)
Cash, cash equivalents and restricted cash at beginning of period 86 62
Cash, cash equivalents and restricted cash at end of period $ 64 $ 42
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 352 $ 288



























	Three Months Ended March 31, 2023 and 2024
			Accumulated
			Other
			Comprehensive
			Loss
			Net Unrealized
			Gains (Losses) on
	Member's		Available-for-Sale		Total
(in millions)	Equity		Securities		Equity
Balance at December 31, 2022	$	9,031	$	(8)	$	9,023
Net income	205		—		205
Other comprehensive income	—		2		2




Other	1		—		1
Balance at March 31, 2023	$	9,237	$	(6)	$	9,231

Balance at December 31, 2023	$	10,048	$	(5)	$	10,043
Net income	179		—		179





Balance at March 31, 2024	$	10,227	$	(5)	$	10,222

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

~~DUKE ENERGY FLORIDA, LLC~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Losses on
Member's Available-for-Sale Total
(in millions) Equity Securities Equity
Balance at June 30, 2022 $ 8,730 $ (5) $ 8,725
Net income 319 — 319
Other comprehensive loss — (1) (1)
Balance at September 30, 2022 $ 9,049 $ (6) $ 9,043
Balance at June 30, 2023 $ 9,494 $ (6) $ 9,488
Net income 347 — 347
Other 1 — 1
Balance at September 30, 2023 $ 9,842 $ (6) $ 9,836
Nine Months Ended September 30, 2022 and 2023
Accumulated
Other
Comprehensive
Loss
Net Unrealized
Gains (Losses) on
Member's Available-for-Sale Total
(in millions) Equity Securities Equity
Balance at December 31, 2021 $ 8,298 $ (3) $ 8,295
Net income 751 — 751
Other comprehensive loss — (3) (3)
Balance at September 30, 2022 $ 9,049 $ (6) $ 9,043
Balance at December 31, 2022 $ 9,031 $ (8) $ 9,023
Net income 810 — 810
Other comprehensive income — 2 2
Other 1 — 1
Balance at September 30, 2023 $ 9,842 $ (6) $ 9,836

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues
Regulated electric
Regulated electric
Regulated electric	Regulated electric	$	472		$	507	$	1,411	$	1,320
Regulated natural gas	Regulated natural gas	105			121		464		491

Total operating revenues	Total operating revenues	577			628		1,875		1,811
Total operating revenues
Total operating revenues
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	145			185		485		439
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 gas	Cost of natural gas	6			21		118		174
Operation, maintenance and other	Operation, maintenance and other	114			121		358		408
Depreciation and amortization	Depreciation and amortization	90			84		266		247
Property and other taxes	Property and other taxes	94			79		258		272
Impairment of assets and other charges		—			(11)		—		(11)

Total operating expenses	Total operating expenses	449			479		1,485		1,529
Losses on Sales of Other Assets and Other, net		—			(1)		—		—
Total operating expenses
Total operating expenses

Operating Income
Operating Income
Operating Income	Operating Income	128			148		390		282
Other Income and Expenses, net	Other Income and Expenses, net	12			4		33		16
Interest Expense	Interest Expense	46			32		125		92
Income Before Income Taxes	Income Before Income Taxes	94			120		298		206
Income Tax Expense (Benefit)		14			17		47		(30)
Income Tax Expense

Net Income and Comprehensive Income

Net Income and Comprehensive Income

Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	80		$	103	$	251	$	236

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 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 companies	3		239

Inventory	185		179

Regulatory assets	75		73
Other	17		134
Total current assets	722		761
Property, Plant and Equipment
Cost	13,378		13,210
Accumulated depreciation and amortization	(3,507)		(3,451)

Net property, plant and equipment	9,871		9,759
Other Noncurrent Assets
Goodwill	920		920
Regulatory assets	678		676

Operating lease right-of-use assets, net	16		16

Other	98		84
Total other noncurrent assets	1,712		1,696
Total Assets	$	12,305	$	12,216
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	288	$	338
Accounts payable to affiliated companies	69		71
Notes payable to affiliated companies	306		613
Taxes accrued	249		316
Interest accrued	51		35


Asset retirement obligations	7		6
Regulatory liabilities	40		56
Other	64		65
Total current liabilities	1,074		1,500
Long-Term Debt	3,914		3,493
Long-Term Debt Payable to Affiliated Companies	25		25
Other Noncurrent Liabilities
Deferred income taxes	1,282		1,272
Asset retirement obligations	134		130
Regulatory liabilities	481		497
Operating lease liabilities	16		16
Accrued pension and other post-retirement benefit costs	98		97

Other	87		86
Total other noncurrent liabilities	2,098		2,098
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2024 and 2023	762		762
Additional paid-in capital	3,100		3,100
Retained earnings	1,332		1,238

Total equity	5,194		5,100
Total Liabilities and Equity	$	12,305	$	12,216

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 20 $ 16
Receivables (net of allowance for doubtful accounts of $8 at 2023 and $6 at 2022) 97 73
Receivables from affiliated companies 155 247
Inventory 168 144
Regulatory assets 48 103
Other 47 86
Total current assets 535 669
Property, Plant and Equipment
Cost 12,976 12,497
Accumulated depreciation and amortization (3,385) (3,250)
Net property, plant and equipment 9,591 9,247
Other Noncurrent Assets
Goodwill 920 920
Regulatory assets 655 581
Operating lease right-of-use assets, net 17 18
Other 76 71
Total other noncurrent assets 1,668 1,590
Total Assets $ 11,794 $ 11,506
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 322 $ 380
Accounts payable to affiliated companies 71 72
Notes payable to affiliated companies 273 497
Taxes accrued 247 317
Interest accrued 51 29
Current maturities of long-term debt 175 475
Asset retirement obligations 8 17
Regulatory liabilities 46 99
Other 72 74
Total current liabilities 1,265 1,960
Long-Term Debt 3,492 2,745
Long-Term Debt Payable to Affiliated Companies 25 25
Other Noncurrent Liabilities
Deferred income taxes 1,169 1,136
Asset retirement obligations 130 137
Regulatory liabilities 498 534
Operating lease liabilities 17 17
Accrued pension and other post-retirement benefit costs 91 90
Other 90 96
Total other noncurrent liabilities 1,995 2,010
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2023 and 2022 762 762
Additional paid-in capital 3,100 3,100
Retained earnings 1,155 904
Total equity 5,017 4,766
Total Liabilities and Equity $ 11,794 $ 11,506


	Three Months Ended
	March 31,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	94	$	100
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	100		91



Deferred income taxes	2		(3)



Payments for asset retirement obligations	(1)		(1)

(Increase) decrease in

Receivables	12		—
Receivables from affiliated companies	65		17
Inventory	(5)		(11)
Other current assets	100		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 assets	7		1
Other liabilities	(17)		(1)
Net cash provided by operating activities	261		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 debt	424		749

Notes payable to affiliated companies	(307)		(425)

Other	(4)		(5)
Net cash provided by financing activities	113		319
Net (decrease) increase in cash and cash equivalents	(19)		10
Cash and cash equivalents at beginning of period	24		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


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 251 $ 236
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 269 251
Equity component of AFUDC (7) (7)
Impairment of assets and other charges — (11)
Deferred income taxes 7 (13)
Contributions to qualified pension plans (5) (3)
Payments for asset retirement obligations (9) (7)
Provision for rate refunds — 5
(Increase) decrease in
Receivables (23) 8
Receivables from affiliated companies 103 11
Inventory (24) (2)
Other current assets 103 (60)
Increase (decrease) in
Accounts payable (69) (6)
Accounts payable to affiliated companies (1) (4)
Taxes accrued (70) (44)
Other current liabilities (29) (76)
Other assets (39) (54)
Other liabilities (8) 80
Net cash provided by operating activities 449 304
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (676) (623)
Net proceeds from the sales of other assets 75 —
Notes receivable from affiliated companies (11) (85)
Other (53) (47)
Net cash used in investing activities (665) (755)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 749 50
Payments for the redemption of long-term debt (300) —
Notes payable to affiliated companies (224) 399
Other (5) (2)
Net cash provided by financing activities 220 447
Net increase (decrease) in cash and cash equivalents 4 (4)
Cash and cash equivalents at beginning of period 16 13
Cash and cash equivalents at end of period $ 20 $ 9
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 134 $ 119




















	Three Months Ended March 31, 2023 and 2024
			Additional
	Common		Paid-in		Retained		Total
(in millions)	Stock		Capital		Earnings		Equity
Balance at December 31, 2022	$	762	$	3,100	$	904	$	4,766
Net income	—		—		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


FINANCIAL STATEMENTS

~~DUKE ENERGY OHIO, INC.~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Additional
Common Paid-in Retained Total
(in millions) Stock Capital Earnings Equity
Balance at June 30, 2022 $ 762 $ 3,100 $ 735 $ 4,597
Net income — — 103 103
Other — — 1 1
Balance at September 30, 2022 $ 762 $ 3,100 $ 839 $ 4,701
Balance at June 30, 2023 $ 762 $ 3,100 $ 1,075 $ 4,937
Net income — — 80 80
Balance at September 30, 2023 $ 762 $ 3,100 $ 1,155 $ 5,017
Nine Months Ended September 30, 2022 and 2023
Additional
Common Paid-in Retained Total
(in millions) Stock Capital Earnings Equity
Balance at December 31, 2021 $ 762 $ 3,100 $ 602 $ 4,464
Net income — — 236 236
Other — — 1 1
Balance at September 30, 2022 $ 762 $ 3,100 $ 839 $ 4,701
Balance at December 31, 2022 $ 762 $ 3,100 $ 904 $ 4,766
Net income — — 251 251
Balance at September 30, 2023 $ 762 $ 3,100 $ 1,155 $ 5,017

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Operating Revenues	Operating Revenues	$	851		$	1,095	$	2,606	$	2,835
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	283			556		980		1,234
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Operation, maintenance and other	Operation, maintenance and other	160			177		524		551
Depreciation and amortization	Depreciation and amortization	173			167		500		478
Property and other taxes	Property and other taxes	17			13		42		60
Impairment of assets and other charges		—			—		—		211

Total operating expenses
Total operating expenses
Total operating expenses	Total operating expenses	633			913		2,046		2,534

Operating Income
Operating Income
Operating Income	Operating Income	218			182		560		301
Other Income and Expenses, net	Other Income and Expenses, net	30			9		58		27
Interest Expense	Interest Expense	53			48		157		138
Income Before Income Taxes	Income Before Income Taxes	195			143		461		190
Income Tax Expense	Income Tax Expense	36			24		82		1
Net Income and Comprehensive Income		$	159		$	119	$	379	$	189

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


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	5	$	8
Receivables (net of allowance for doubtful accounts of $16 at 2024 and $5 at 2023)	429		156
Receivables from affiliated companies	12		197

Inventory	534		582
Regulatory assets	101		102
Other	59		98
Total current assets	1,140		1,143
Property, Plant and Equipment
Cost	19,097		18,900
Accumulated depreciation and amortization	(6,598)		(6,501)

Net property, plant and equipment	12,499		12,399
Other Noncurrent Assets
Regulatory assets	900		894

Operating lease right-of-use assets, net	48		50
Other	353		325
Total other noncurrent assets	1,301		1,269
Total Assets	$	14,940	$	14,811
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	234	$	300
Accounts payable to affiliated companies	78		176
Notes payable to affiliated companies	136		256
Taxes accrued	75		66
Interest accrued	73		54
Current maturities of long-term debt	4		4
Asset retirement obligations	131		120
Regulatory liabilities	213		209
Other	179		184
Total current liabilities	1,123		1,369
Long-Term Debt	4,646		4,348
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	1,476		1,436
Asset retirement obligations	672		689
Regulatory liabilities	1,450		1,459
Operating lease liabilities	45		46
Accrued pension and other post-retirement benefit costs	101		115
Investment tax credits	186		186
Other	13		—
Total other noncurrent liabilities	3,943		3,931
Commitments and Contingencies
Equity
Member's equity	5,078		5,012
Accumulated other comprehensive income	—		1
Total equity	5,078		5,013
Total Liabilities and Equity	$	14,940	$	14,811

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents $ 14 $ 31
Receivables (net of allowance for doubtful accounts of $5 at 2023 and $4 at 2022) 117 112
Receivables from affiliated companies 154 298
Inventory 600 489
Regulatory assets 93 249
Other 59 197
Total current assets 1,037 1,376
Property, Plant and Equipment
Cost 18,638 18,121
Accumulated depreciation and amortization (6,359) (6,021)
Net property, plant and equipment 12,279 12,100
Other Noncurrent Assets
Regulatory assets 899 875
Operating lease right-of-use assets, net 47 49
Other 323 254
Total other noncurrent assets 1,269 1,178
Total Assets $ 14,585 $ 14,654
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 277 $ 391
Accounts payable to affiliated companies 111 206
Notes payable to affiliated companies 200 435
Taxes accrued 88 92
Interest accrued 74 48
Current maturities of long-term debt 3 303
Asset retirement obligations 114 207
Regulatory liabilities 205 187
Other 157 161
Total current liabilities 1,229 2,030
Long-Term Debt 4,351 3,854
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 1,352 1,299
Asset retirement obligations 728 744
Regulatory liabilities 1,478 1,454
Operating lease liabilities 45 47
Accrued pension and other post-retirement benefit costs 116 122
Investment tax credits 186 186
Other 14 65
Total other noncurrent liabilities 3,919 3,917
Commitments and Contingencies
Equity
Member's equity 4,935 4,702
Accumulated other comprehensive income 1 1
Total equity 4,936 4,703
Total Liabilities and Equity $ 14,585 $ 14,654


	Three Months Ended
	March 31,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	67	$	106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	170		158
Equity component of AFUDC	(2)		(1)


Deferred income taxes	24		2



Payments for asset retirement obligations	(12)		(19)

(Increase) decrease in

Receivables	35		20
Receivables from affiliated companies	(6)		(26)
Inventory	48		(71)
Other current assets	30		174
Increase (decrease) in
Accounts payable	(39)		(107)
Accounts payable to affiliated companies	(57)		(33)
Taxes accrued	9		14
Other current liabilities	32		112
Other assets	(13)		(12)
Other liabilities	(7)		35
Net cash provided by operating activities	279		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 securities	4		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 debt	298		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 activities	135		(225)
Net decrease in cash and cash equivalents	(3)		(20)
Cash and cash equivalents at beginning of period	8		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


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 379 $ 189
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 503 481
Equity component of AFUDC (7) (12)
Impairment of assets and other charges — 211
Deferred income taxes 15 (26)
Contributions to qualified pension plans (8) (5)
Payments for asset retirement obligations (57) (67)
(Increase) decrease in
Receivables (23) (1)
Receivables from affiliated companies (12) 17
Inventory (112) (34)
Other current assets 209 (181)
Increase (decrease) in
Accounts payable (86) 44
Accounts payable to affiliated companies (32) (24)
Taxes accrued (4) 5
Other current liabilities 107 18
Other assets (62) 8
Other liabilities 26 9
Net cash provided by operating activities 836 632
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (699) (643)
Purchases of debt and equity securities (53) (43)
Proceeds from sales and maturities of debt and equity securities 42 32
Notes receivable from affiliated companies 156 (32)
Other (50) (38)
Net cash used in investing activities (604) (724)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 495 67
Payments for the redemption of long-term debt (300) (81)
Notes payable to affiliated companies (234) 483
Distributions to parent (209) (350)
Other (1) (1)
Net cash (used in) provided by financing activities (249) 118
Net (decrease) increase in cash and cash equivalents (17) 26
Cash and cash equivalents at beginning of period 31 6
Cash and cash equivalents at end of period $ 14 $ 32
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 94 $ 102



















	Three Months Ended March 31, 2023 and 2024
			Accumulated Other
			Comprehensive Income (Loss)
	Member's		Pension and		Total
(in millions)	Equity		OPEB Adjustments		Equity
Balance at December 31, 2022	$	4,702	$	1	$	4,703
Net income	106		—		106

Distributions to parent	(75)		—		(75)

Balance at March 31, 2023	$	4,733	$	1	$	4,734

Balance at December 31, 2023	$	5,012	$	1	$	5,013
Net income	67		—		67


Other	(1)		(1)		(2)

Balance at March 31, 2024	$	5,078	$	—	$	5,078

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

~~DUKE ENERGY INDIANA, LLC~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Accumulated Other
Comprehensive Income
Member's Pension and Total
(in millions) Equity OPEB Adjustments Equity
Balance at June 30, 2022 $ 4,861 $ — $ 4,861
Net income 119 — 119
Other (1) — (1)
Balance at September 30, 2022 $ 4,979 $ — $ 4,979
Balance at June 30, 2023 $ 4,826 $ 1 $ 4,827
Net income 159 — 159
Distributions to parent (50) — (50)
Balance at September 30, 2023 $ 4,935 $ 1 $ 4,936
Accumulated Other
Comprehensive Income
Member's Pension and Total
(in millions) Equity OPEB Adjustments Equity
Balance at December 31, 2021 $ 5,015 $ — $ 5,015
Net income 189 — 189
Distributions to parent (225) — (225)
Balance at September 30, 2022 $ 4,979 $ — $ 4,979
Balance at December 31, 2022 $ 4,702 $ 1 $ 4,703
Net income 379 — 379
Distributions to parent (146) — (146)
Balance at September 30, 2023 $ 4,935 $ 1 $ 4,936

~~See Notes to Condensed Consolidated Financial Statements~~


~~FINANCIAL STATEMENTS~~

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023

Operating Revenues	Operating Revenues	$	208		$	306	$	1,119	$	1,421

Operating Revenues

Operating Revenues
Operating Expenses	Operating Expenses
Cost of natural gas
Cost of natural gas
Cost of natural gas	Cost of natural gas	51			168		316		685
Operation, maintenance and other	Operation, maintenance and other	77			87		248		270
Depreciation and amortization	Depreciation and amortization	59			56		175		166
Property and other taxes	Property and other taxes	16			13		46		44
Impairment of assets and other charges	Impairment of assets and other charges	—			1		(4)		1
Total operating expenses	Total operating expenses	203			325		781		1,166
Gains on Sales of Other Assets and Other, net		—			—		—		4
Operating Income (Loss)		5			(19)		338		259

Operating Income
Operating Income
Operating Income

Other Income and Expenses, net	Other Income and Expenses, net	17			13		49		41

Other Income and Expenses, net

Other Income and Expenses, net

Interest Expense	Interest Expense	41			36		120		102
(Loss) Income Before Income Taxes		(19)			(42)		267		198
Income Tax (Benefit) Expense		(5)			(9)		46		18
Net (Loss) Income and Comprehensive (Loss) Income		$	(14)		$	(33)	$	221	$	180
Interest Expense
Interest Expense
Income Before Income Taxes
Income Tax Expense
Net Income and Comprehensive Income

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2024		December 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 companies	12		10

Inventory	65		112
Regulatory assets	131		161

Other	9		7
Total current assets	514		601
Property, Plant and Equipment
Cost	12,157		11,908
Accumulated depreciation and amortization	(2,296)		(2,259)

Net property, plant and equipment	9,861		9,649
Other Noncurrent Assets
Goodwill	49		49
Regulatory assets	403		410
Operating lease right-of-use assets, net	5		4
Investments in equity method unconsolidated affiliates	78		78
Other	282		276
Total other noncurrent assets	817		817
Total Assets	$	11,192	$	11,067
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	246	$	315
Accounts payable to affiliated companies	56		54

Notes payable to affiliated companies	508		538
Taxes accrued	101		89
Interest accrued	48		39
Current maturities of long-term debt	40		40
Regulatory liabilities	88		98
Other	64		77
Total current liabilities	1,151		1,250
Long-Term Debt	3,629		3,628

Other Noncurrent Liabilities
Deferred income taxes	930		933
Asset retirement obligations	26		26
Regulatory liabilities	973		988
Operating lease liabilities	10		10
Accrued pension and other post-retirement benefit costs	7		8

Other	168		172
Total other noncurrent liabilities	2,114		2,137
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2024 and 2023	1,635		1,635

Retained earnings	2,662		2,416

Total Piedmont Natural Gas Company, Inc. stockholder's equity	4,297		4,051
Noncontrolling interests	1		1
Total equity	4,298		4,052
Total Liabilities and Equity	$	11,192	$	11,067

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) September 30, 2023 December 31, 2022
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $10 at 2023 and $14 at 2022) $ 99 $ 436
Receivables from affiliated companies 12 11
Inventory 88 172
Regulatory assets 120 119
Other 63 4
Total current assets 382 742
Property, Plant and Equipment
Cost 11,595 10,869
Accumulated depreciation and amortization (2,230) (2,081)
Facilities to be retired, net — 9
Net property, plant and equipment 9,365 8,797
Other Noncurrent Assets
Goodwill 49 49
Regulatory assets 415 392
Operating lease right-of-use assets, net 3 4
Investments in equity method unconsolidated affiliates 78 79
Other 288 272
Total other noncurrent assets 833 796
Total Assets $ 10,580 $ 10,335
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 209 $ 345
Accounts payable to affiliated companies 48 51
Notes payable to affiliated companies 297 514
Taxes accrued 44 74
Interest accrued 49 40
Current maturities of long-term debt 85 45
Regulatory liabilities 98 74
Other 66 81
Total current liabilities 896 1,224
Long-Term Debt 3,628 3,318
Other Noncurrent Liabilities
Deferred income taxes 948 870
Asset retirement obligations 28 26
Regulatory liabilities 993 1,024
Operating lease liabilities 10 13
Accrued pension and other post-retirement benefit costs 7 7
Other 176 180
Total other noncurrent liabilities 2,162 2,120
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2023 and 2022 1,635 1,635
Retained earnings 2,258 2,037
Total Piedmont Natural Gas Company, Inc. stockholder's equity 3,893 3,672
Noncontrolling interests 1 1
Total equity 3,894 3,673
Total Liabilities and Equity $ 10,580 $ 10,335


	Three Months Ended
	March 31,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	246	$	232
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	63		58
Equity component of AFUDC	(6)		(5)

Impairment of assets and other charges	—		1
Deferred income taxes	(15)		14
Equity in earnings from unconsolidated affiliates	(2)		(2)




(Increase) decrease in

Receivables	13		189
Receivables from affiliated companies	(2)		—
Inventory	48		73
Other current assets	20		(19)
Increase (decrease) in
Accounts payable	(43)		(107)
Accounts payable to affiliated companies	2		(12)
Taxes accrued	12		(13)
Other current liabilities	(1)		42
Other assets	(2)		(2)
Other liabilities	9		(1)
Net cash provided by operating activities	342		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


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Nine Months Ended
September 30,
(in millions) 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 221 $ 180
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 177 168
Equity component of AFUDC (15) (7)
Impairment of assets and other charges (4) 1
Deferred income taxes 52 13
Equity in earnings from unconsolidated affiliates (6) (5)
Contributions to qualified pension plans (3) (2)
Provision for rate refunds — (3)
(Increase) decrease in
Receivables 335 198
Receivables from affiliated companies (1) 1
Inventory 83 (26)
Other current assets (63) (91)
Increase (decrease) in
Accounts payable (78) 24
Accounts payable to affiliated companies (3) (5)
Taxes accrued (30) (18)
Other current liabilities 25 23
Other assets (23) (8)
Other liabilities 7 (3)
Net cash provided by operating activities 674 440
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (774) (598)
Contributions to equity method investments — (8)
Other (32) (17)
Net cash used in investing activities (806) (623)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 348 394
Notes payable to affiliated companies (216) (210)
Other — (1)
Net cash provided by financing activities 132 183
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 $ 149 $ 163

























	Three Months Ended March 31, 2023 and 2024
					Total
					Piedmont
					Natural Gas
	Common		Retained		Company, Inc.		Noncontrolling		Total
(in millions)	Stock		Earnings		Equity		Interests		Equity
Balance at December 31, 2022	$	1,635	$	2,037	$	3,672	$	1	$	3,673
Net income	—		232		232		—		232







Balance at March 31, 2023	$	1,635	$	2,269	$	3,904	$	1	$	3,905

Balance at December 31, 2023	$	1,635	$	2,416	$	4,051	$	1	$	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


~~FINANCIAL STATEMENTS~~

~~PIEDMONT NATURAL GAS COMPANY, INC.~~

~~Condensed Consolidated Statements of Changes in Equity~~

~~(Unaudited)~~

Three Months Ended September 30, 2022 and 2023
Total
Piedmont
Natural Gas
Common Retained Company, Inc. Noncontrolling Total
(in millions) Stock Earnings Equity Interests Equity
Balance at June 30, 2022 $ 1,635 $ 1,927 $ 3,562 $ — $ 3,562
Net loss — (33) (33) — (33)
Balance at September 30, 2022 $ 1,635 $ 1,894 $ 3,529 $ — $ 3,529
Balance at June 30, 2023 $ 1,635 $ 2,272 $ 3,907 $ 1 $ 3,908
Net loss — (14) (14) — (14)
Balance at September 30, 2023 $ 1,635 $ 2,258 $ 3,893 $ 1 $ 3,894
Nine Months Ended September 30, 2022 and 2023
Total
Piedmont
Natural Gas
Common Retained Company, Inc. Noncontrolling Total
(in millions) Stock Earnings Equity Interests Equity
Balance at December 31, 2021 $ 1,635 $ 1,714 $ 3,349 $ — $ 3,349
Net income — 180 180 — 180
Balance at September 30, 2022 $ 1,635 $ 1,894 $ 3,529 $ — $ 3,529
Balance at December 31, 2022 $ 1,635 $ 2,037 $ 3,672 $ 1 $ 3,673
Net income — 221 221 — 221
Balance at September 30, 2023 $ 1,635 $ 2,258 $ 3,893 $ 1 $ 3,894

~~See Notes to Condensed Consolidated Financial Statements~~


FINANCIAL STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

Index to Combined Notes to Condensed Consolidated Financial Statements

The unaudited notes to the Condensed Consolidated Financial Statements that follow are a combined presentation. The following list indicates the registrants to which the footnotes apply.

Applicable Notes

Registrant

Duke Energy

•

Duke Energy

•

Duke Energy Carolinas

•

Duke Energy Carolinas

•

Progress Energy

•

Progress Energy

•

Duke Energy Progress

•

Duke Energy Progress

•

Duke Energy Florida

•

Duke Energy Florida

•

Duke Energy Ohio

•

Duke Energy Ohio

•

Duke Energy Indiana

•

Duke Energy Indiana

•

Piedmont

•

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 1312 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities.

Discontinued Operations

Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. Unless otherwise noted, the notes to these condensed consolidated financial statements exclude amounts related to discontinued operations for all periods presented. For the ~~nine~~three months ended ~~September 30,~~March 31, 2024, and 2023, ~~and 2022,~~ the Loss ~~(Income)~~ 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 STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 1110 and 1312 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included in the Condensed Consolidated Balance Sheets.

September 30, 2023 December 31, 2022
Duke Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Duke Energy Progress Energy Energy
Energy Carolinas Energy Progress Florida
Energy(a)
Carolinas Energy Progress Florida
Current Assets
Cash and cash equivalents $ 324 $ 19 $ 87 $ 27 $ 41 $ 409 $ 44 $ 108 $ 49 $ 45
Other 49 4 44 17 23 82 8 74 28 41
Other Noncurrent Assets
Other 9 1 2 2 — 11 1 2 2 —
Total cash, cash equivalents and restricted cash $ 382 $ 24 $ 133 $ 46 $ 64 $ 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, 2024										December 31, 2023
			Duke				Duke		Duke				Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Duke		Energy		Progress		Energy		Energy
	Energy		Carolinas		Energy		Progress		Florida		Energy		Carolinas		Energy		Progress		Florida
Current Assets
Cash and cash equivalents	$	459	$	5	$	49	$	27	$	4	$	253	$	9	$	59	$	18	$	24
Other	33		6		27		18		9		76		9		67		31		36
Other Noncurrent Assets
Other	17		1		10		4		7		16		1		9		2		7
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 ~~September 30, 2023,~~March 31, 2024, and December 31, ~~2022.~~2023. The components of inventory are presented in the tables below.


		September 30, 2023																		March 31, 2024
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Materials and supplies	Materials and supplies	$	3,018		$	1,045	$	1,408	$	920	$	488	$	132	$	381	$	15
Coal	Coal	758			330		187		110		77		24		217		—
Natural gas, oil and other fuel	Natural gas, oil and other fuel	342			47		208		111		97		12		2		73
Total inventory	Total inventory	$	4,118		$	1,422	$	1,803	$	1,141	$	662	$	168	$	600	$	88


		December 31, 2022																		December 31, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Materials and supplies	Materials and supplies	$	2,604		$	876	$	1,232	$	819	$	413	$	105	$	342	$	12
Coal	Coal	620			253		190		99		91		34		144		—
Natural gas, oil and other fuel	Natural gas, oil and other fuel	360			35		157		88		69		5		3		160
Total inventory	Total 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 committed~~assets 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 sell~~impairment 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 ~~maintains~~has a voluntary supply chain finance program (the “program”) ~~with a global financial institution. The program is voluntary and~~that allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to ~~the~~a global financial institution at a rate that leverages Duke Energy’s credit rating and which may result in favorable terms compared to the rate available to the supplier on their own credit rating. Suppliers participating in the program determine at their sole discretion, which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact Duke ~~Energy confirms invoices sold by suppliers under the program to the financial institution and pays the financial institution~~Energy’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 STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

The following table represents the changes in confirmed obligations outstanding for the three ~~and nine~~ months ended ~~September 30, 2023,~~March 31, 2024, and ~~2022.~~2023.


		Three months ended September 30, 2022 and 2023
				Duke				Duke
		Duke		Energy		Progress		Energy
(in millions)		Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Confirmed obligations outstanding at the June 30, 2022		$	46	$	9	$	11	$	3	$	8	$	9	$	—	$	17
Invoices confirmed during the period		86		6		21		7		14		12		—		47
Confirmed invoices paid during the period		(58)		(12)		(15)		(5)		(10)		(9)		—		(22)
Confirmed obligations outstanding at September 30, 2022		$	74	$	3	$	17	$	5	$	12	$	12	$	—	$	42

Confirmed obligations outstanding at the June 30, 2023		$	40	$	5	$	14	$	12	$	2	$	2	$	—	$	19
Invoices confirmed during the period		47		2		11		2		9		4		—		30
Confirmed invoices paid during the period		(18)		(4)		(8)		(3)		(5)		—		—		(6)
Confirmed obligations outstanding at September 30, 2023		$	69	$	3	$	17	$	11	$	6	$	6	$	—	$	43

		Nine months ended September 30, 2022 and 2023
				Duke				Duke
		Duke		Energy		Progress		Energy

		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)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Confirmed obligations outstanding at the December 31, 2021		$	19	$	—	$	9	$	—	$	9	$	6	$	—	$	4
(in millions)
(in millions)																		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Confirmed obligations outstanding at December 31, 2022
Invoices confirmed during the period	Invoices confirmed during the period	181		20		52		17		35		27		1		81
Confirmed invoices paid during the period	Confirmed invoices paid during the period	(126)		(17)		(44)		(12)		(32)		(21)		(1)		(43)
Confirmed obligations outstanding at September 30, 2022		$	74	$	3	$	17	$	5	$	12	$	12	$	—	$	42
Confirmed obligations outstanding at March 31, 2023

Confirmed obligations outstanding at the December 31, 2022		$	87	$	6	$	19	$	8	$	11	$	5	$	—	$	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 period	Invoices confirmed during the period	161		22		53		25		28		7		—		79
Confirmed invoices paid during the period	Confirmed invoices paid during the period	(179)		(25)		(55)		(22)		(33)		(6)		—		(93)
Confirmed obligations outstanding at September 30, 2023		$	69	$	3	$	17	$	11	$	6	$	6	$	—	$	43
Confirmed obligations outstanding at 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 review~~completed the sale of ~~its commercial renewables business. Since 2007, Duke Energy has built a portfolio of commercial wind, solar and battery projects across~~substantially 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. Duke Energy closed on this transaction on October 25, 2023, for proceeds of $1.1 billion, with approximately half of the proceeds received at closing and th~~e 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. Duke Energy closed on this transaction on October 4, 2023, and received proceeds of $243 million. 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 process for the remaining assets is expected to be completed ~~by early~~around midyear 2024, with net proceeds from the 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. ~~Originally~~No 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 STATEMENTS			DISPOSITIONS

The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in Duke Energy's Consolidated Balance Sheets.

(in millions)

September 30, 2023

December 31, 2022

(in millions)

Current Assets Held for Sale

Cash and cash equivalents

Receivables, net

107

Inventory

Current Assets Held for Sale

Other

179

151

Total current assets held for sale

440

356

Total current assets held for sale

Noncurrent Assets Held for Sale

Property, Plant and Equipment

Cost

5,387

6,444

Accumulated depreciation and amortization

(1,651)

Accumulated depreciation and amortization

Net property, plant and equipment

3,736

4,793

Operating lease right-of-use assets, net

144

140

Investments in equity method unconsolidated affiliates

504

522

Operating lease right-of-use assets, net

Other

212

179

Total other noncurrent assets held for sale

860

841

Total other noncurrent assets held for sale

Total Assets Held for Sale

5,036

5,990

Current Liabilities Associated with Assets Held for Sale

Accounts payable

124

122

Taxes accrued

Current maturities of long-term debt

268

276

Current maturities of long-term debt

Unrealized losses on commodity hedges

Other

175

120

Total current liabilities associated with assets held for sale

589

535

Total current liabilities associated with assets held for sale

Noncurrent Liabilities Associated with Assets Held for Sale

Long-Term debt

1,047

1,188

Operating lease liabilities

154

150

Operating lease liabilities

Asset retirement obligations

201

190

Asset retirement obligations

Unrealized losses on commodity hedges

Other

232

399

Total other noncurrent liabilities associated with assets held for sale

1,634

1,927

Total other noncurrent liabilities associated with assets held for sale

Total Liabilities Associated with Assets Held for Sale

2,223

2,462

As of ~~September 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) Income~~Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.

Three Months Ended Nine Months Ended
September 30, September 30,
(in millions) 2023 2022 2023 2022
Operating revenues $ 103 $ 129 $ 293 $ 372
Operation, maintenance and other 93 85 270 248
Depreciation and amortization(a)
— 65 — 193
Property and other taxes 8 10 27 31
Other income and expenses, net (2) (1) (9) (4)
Interest expense 10 18 53 55
Loss on disposal 169 — 1,603 —
Loss before income taxes (179) (50) (1,669) (159)
Income tax benefit (27) (30) (353) (106)
Loss from discontinued operations $ (152) $ (20) $ (1,316) $ (53)
Add: Net (income) loss attributable to noncontrolling interest included in discontinued operations (38) 20 33 92
Net (loss) income from discontinued operations attributable to Duke Energy Corporation $ (190) $ — $ (1,283) $ 39

~~(a) Upon meeting the criteria for assets held for sale, beginning in November 2022 depreciation and amortization expense were ceased.~~


~~FINANCIAL STATEMENTS~~			~~DISPOSITIONS~~


	Three Months Ended
	March 31,
(in millions)	2024		2023
Operating revenues	$	(6)	$	80


Operation, maintenance and other	4		89

Property and other taxes	—		10


Other income and expenses, net	—		(4)
Interest expense	2		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 reflected~~amounts 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. The final purchase~~2024, and ~~sale agreements were signed with Brookfield in June~~December 31, 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. Pretax impairments of $169 million were recorded in the third quarter of 2023 reflecting closing-related adjustments for the transactions that closed and ongoing assessment of the estimated fair values of the remaining assets held for sale. The impairments were included in (Loss) Income 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 12. The impairments for the utility-scale and distributed generation assets were updated based on customary adjustments at closing, and will be updated, if necessary, for any post-closing adjustments.respectively. The carrying amounts for the remaining assets will be updated, if necessary, based on final disposition amounts.


FINANCIAL STATEMENTS			DISPOSITIONS

Duke Energy has elected not to separately disclose discontinued operations on Duke Energy's Consolidated Statements of Cash Flows. The following table summarizes Duke Energy's cash flows from discontinued operations related to the Commercial Renewables Disposal Groups.

Nine Months Ended

September 30,

Three Months Ended

March 31,

(in millions)

2023

2022

(in millions)

2024

2023

Cash flows provided by (used in):

Cash flows used in:

Operating activities

545

485

Investing activities

(597)

(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 all but one of the project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. ~~The plaintiffs have begun to dismiss Duke Energy (parent) from these lawsuits and have represented to the court that they will dismiss Duke Energy (Parent) from all such cases.~~ 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.


~~FINANCIAL STATEMENTS~~			~~BUSINESS SEGMENTS~~

Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.


		Three Months Ended September 30, 2023
		Electric		Gas		Total
		Utilities and		Utilities and		Reportable
		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)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total		Infrastructure	Infrastructure	Segments	Other	Eliminations	Total
Unaffiliated revenues	Unaffiliated revenues	$	7,695	$	291	$	7,986	$	8	$	—	$	7,994
Intersegment revenues	Intersegment revenues	20		22		42		25		(67)		—
Total revenues	Total revenues	$	7,715	$	313	$	8,028	$	33	$	(67)	$	7,994
Segment income (loss)(a)		$	1,447	$	15	$	1,462	$	(59)	$	—	$	1,403
Segment income (loss)
Less: Noncontrolling interests	Less: Noncontrolling interests											(69)
Add: Preferred stock dividend	Add: Preferred stock dividend											39
Discontinued operations	Discontinued operations											(190)
Net Income	Net Income											$	1,321
Segment assets(b)		$	155,588	$	16,724	$	172,312	$	8,848	$	—	$	181,160
Segment assets(a)

Three Months Ended September 30, 2022
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Eliminations Total
Unaffiliated revenues $ 7,431 $ 404 $ 7,835 $ 7 $ — $ 7,842
Intersegment revenues 8 23 31 23 (54) —
Total revenues $ 7,439 $ 427 $ 7,866 $ 30 $ (54) $ 7,842
Segment income (loss) $ 1,540 $ 4 $ 1,544 $ (183) $ (1) $ 1,360
Less: Noncontrolling interests 9
Add: Preferred stock dividend 39
Discontinued operations 23
Net Income $ 1,413


FINANCIAL STATEMENTS			BUSINESS SEGMENTS


	Three Months Ended March 31, 2023
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	6,381	$	888	$	7,269	$	7	$	—	$	7,276
Intersegment revenues	17		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 interests											43
Add: Preferred stock dividend											39
Discontinued operations											(145)
Net Income											$	761

(a)EU&I includes $95 million recorded within Impairment of assets and other charges and $16 million within Operations, maintenance and other on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations related primarily to Duke Energy Carolinas' North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order. See Note 4 ~~for additional information.~~

~~(b)~~Other includes Assets Held for Sale balances related to the Commercial Renewables Disposal Groups. Refer to Note 2 for further information.

Nine Months Ended September 30, 2023
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Eliminations Total
Unaffiliated revenues $ 20,308 $ 1,516 $ 21,824 $ 24 $ — $ 21,848
Intersegment revenues 55 67 122 74 (196) —
Total revenues $ 20,363 $ 1,583 $ 21,946 $ 98 $ (196) $ 21,848
Segment income (loss)(a)
$ 3,088 $ 327 $ 3,415 $ (388) $ — $ 3,027
Less: Noncontrolling interests (42)
Add: Preferred stock dividend 92
Discontinued operations (1,283)
Net Income $ 1,878


~~FINANCIAL STATEMENTS~~			~~BUSINESS SEGMENTS~~

Nine Months Ended September 30, 2022
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Eliminations Total
Unaffiliated revenues $ 19,552 $ 1,843 $ 21,395 $ 22 $ — $ 21,417
Intersegment revenues 24 69 93 69 (162) —
Total revenues $ 19,576 $ 1,912 $ 21,488 $ 91 $ (162) $ 21,417
Segment income (loss)(b)
$ 3,237 $ 277 $ 3,514 $ (480) $ (2) $ 3,032
Less: Noncontrolling interests 73
Add: Preferred stock dividend 92
Discontinued operations 62
Net Income $ 3,113

~~(a)~~EU&I includes $95 million recorded within Impairment of assets and other charges and $16 million within Operations, maintenance and other on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations related primarily to Duke Energy Carolinas' North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order. See Note 4 ~~for additional information.~~

~~(b)~~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, 2024																	Three Months Ended March 31, 2024
	Electric
		Utilities and
		Utilities and
		Utilities and
(in millions)
(in millions)
(in millions)														Infrastructure	Infrastructure	Segments	Other		Eliminations	Total

		Three Months Ended September 30, 2023
Total revenues
		Electric		Gas		Total
		Utilities and		Utilities and		Reportable
(in millions)		Infrastructure		Infrastructure		Segments		Other		Eliminations		Total

Total revenues

Total revenues	Total revenues	$	472	$	105	$	577	$	—	$	—	$	577
Segment income (loss)/Net income	Segment income (loss)/Net income	$	65	$	17	$	82	$	(2)	$	—	$	80

Segment assets	Segment assets	$	7,745	$	4,218	$	11,963	$	10	$	(179)	$	11,794
Segment assets
Segment assets

Three Months Ended September 30, 2022
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Total
Total revenues $ 507 $ 121 $ 628 $ — $ 628
Segment income (loss)/Net income $ 74 $ 30 $ 104 $ (1) $ 103

Nine Months Ended September 30, 2023
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Total
Total revenues $ 1,411 $ 464 $ 1,875 $ — $ 1,875
Segment income (loss)/Net income $ 168 $ 87 $ 255 $ (4) $ 251

Three Months Ended March 31, 2023

Electric

Utilities and

(in millions)

Infrastructure

Segments

Other

Total

Nine Months Ended September 30, 2022

Total revenues

Electric

Gas

Total

Utilities and

Reportable

(in millions)

Infrastructure

Segments

Other

Total

Total revenues

1,320

491

1,811

—

1,811

Segment income (loss)/Net income

152

239

(3)

236

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.


~~FINANCIAL STATEMENTS~~			~~REGULATORY 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.


FINANCIAL STATEMENTS			REGULATORY 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. On February 8, 2024, the NRC issued the Oconee site-specific draft EIS. The NRC ~~has notified~~and EPA published the notice for the public to submit 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 is inadequate to satisfy the requirements of NEPA and the NRC’s NEPA-implementing regulations. Duke Energy ~~Carolinas that the draft EIS will now be issued in January~~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) 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 delay~~has 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. ~~New~~Accordingly, 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 included ~~an MYRP~~a Multiyear rate plan (MYRP) to recover projected capital investments during the ~~three-year~~three-year MYRP period. In addition to the MYRP, the PBR Application included 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). ~~The~~ ~~Public Staff – North Carolina Utilities Commission (Public Staff) and intervenor testimony was filed on July 19, 2023, and Duke Energy Carolinas' rebuttal testimony was filed on August 4, 2023.~~

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 ~~includes,~~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 all of the capital projects and related costs to be included in the ~~three-year~~three-year MYRP, including $4.6 billion (North Carolina retail allocation) projected to go in service over the MYRP period. Additionally, the partial settlement ~~includes~~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 with the NCUC a second partial settlement with the Public Staff resolving additional issues, including the 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 1~~As a result of~~5, 2023, the NCUC issued an order approving Duke Energy Carolinas' PBR Application, as modified by the partial settlements ~~Duke Energy Carolinas recognized pretax charges~~and the order, including an overall retail revenue increase of ~~$59~~$436 million ~~within Impairment~~in Year 1, $174 million in Year 2 and $158 million in Year 3, for a combined total of ~~assets~~$768 million. The order established an ROE of 10.1% based upon an equity ratio of 53% and ~~other charges, which primarily related to~~approved, with certain ~~COVID-19 deferred~~adjustments, depreciation rates and the recovery of grid improvement plan costs and ~~$8 million within Operations, maintenance~~certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and ~~other, for~~PIMs were approved as requested under the ~~three~~PBR Application and ~~nine months ended September 30, 2023, on~~revised by the ~~Condensed Consolidated Statements of Operations. These~~ partial ~~settlements are subject to the review and approval of the NCU~~settlements.C.


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

~~Remaining items litigated at the evidentiary hearing, which occurred August 28 to September 5, 2023, include ROE, capital structure, and recovery of the remaining COVID-19 deferred costs.~~ Duke Energy Carolinas implemented interim 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~~the 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, Carolina Utility Customers Association, Inc. appealed several issues, including the authorized ROE and certain rate design and accounting matters.


FINANCIAL STATEMENTS			REGULATORY MATTERS

2024 South Carolina Rate Case

On January ~~1, 2024. On October 13, 2023, the Public Staff filed supplemental testimony, and on October 23, 2023, the NCUC ordered the hearing to reconvene on October 30, 2023.~~4, 2024, Duke Energy Carolinas ~~expects~~filed a ~~decision on its application~~rate case with the PSCSC to request a net increase in ~~this case~~annual retail revenues of 11.4%, or approximately $239 million, in the ~~fourth quarter~~first two years, and an additional overall increase of ~~this year.~~ 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 ~~cannot predict~~requested an ROE of 10.5% with an equity ratio of 53%. To mitigate the ~~outcome~~rate increase, Duke Energy Carolinas has proposed to accelerate the return of ~~this matter.~~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 included an MYRP to recover projected capital investments during the ~~three-year~~three-year MYRP period. In addition to the MYRP, the PBR Application included an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMs as required by HB 951. The overall retail revenue increase as originally filed would have been $326 million in Year 1, $151 million in Year 2 and $138 million in Year 3, for a combined total of $615 million, by late 2025. The rate increase is driven primarily by ~~major~~ transmission and distribution investments since the last rate case and as 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~~three-year MYRP proposal. In May 2023, ~~the Carolina Industrial Group for Fair Utility Rates~~CIGFUR II ~~(CIGFUR)~~ 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, ~~approving of~~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~~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 ~~a capital structure~~an equity ratio of 53% ~~equity and 47% debt~~ 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. As a result of the order, Duke Energy Progress recognized pretax charges of $28 million within Impairment of assets and other charges, which primarily related to certain COVID-19 deferred costs, and $8 million within Operations, maintenance and other, for the three and nine months ended September 30, 2023, on the Condensed Consolidated Statements of Operations. Duke Energy Progress implemented interim rates, subject to refund, on June 1, 2023, and implemented revised Year 1 rates and the residential decoupling on October 1, 2023.

On October 17, 2023, CIGFUR II and Haywood Electric Membership Corporation each filed a Notice of Appeal ~~and Exceptions to~~of the ~~Supreme Court of North Carolina.~~August 18, 2023 NCUC order. Both parties are appealing certain matters that do not impact the overall revenue requirement in the rate case. Specifically, they ~~are appealing~~appealed the ~~class~~interclass subsidy reduction percentage, and CIGFUR isII also ~~appealing~~appealed the Customer Assistance Program and the equal percentage fuel cost allocation methodology. ~~CIGFUR also~~On November 6, 2023, the AGO filed ~~with the NCUC~~ a ~~Motion for Reconsideration and Motion for Stay with respect to those issues during the pendency~~Notice of Cross Appeal of the ~~appeal.~~NCUC's determination regarding the exclusion of electric vehicle revenue from the residential decoupling mechanism. On November 9, 2023, ~~Duke~~Duke Energy Progress, ~~cannot predict~~ the ~~outcome~~Public Staff, CIGFUR II, and a number of ~~this matter.~~other parties reached a settlement pursuant to which CIGFUR II agreed not to pursue its appeal of the 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 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 its financing order. The storm recovery bonds of $177 million were issued by Duke Energy Progress ~~will proceed with structuring, marketing and pricing the storm recovery bonds and then~~on April 25, 202 ~~seek PSCSC authorization to issue the bonds in the first half of 2024.~~4. Duke Energy Progress ~~cannot predict the outcome of this matter.~~

~~2022 South Carolina Rate Case~~

~~On September~~implemented storm recovery charges effective May 1, ~~2022, Duke Energy Progress filed an application with the PSCSC to request an increase in base rate retail revenues.~~ ~~On January~~2024. See notes 6 and 12 2023, Duke Energy Progress and the ORS, as well as other consumer, environmental, and industrial intervening parties, filed a comprehensive Agreement and Stipulation of Settlement resolving all issues in the base rate proceeding. The major components of the stipulation include:

•A $52 million annual customer rate increase prior to the reduction from the accelerated return to customers of federal unprotected Property, Plant and Equipment related EDIT. After extending the remaining EDIT giveback to customers to 33 months, the net annual 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.~~more information.

5149


FINANCIAL STATEMENTS			REGULATORY MATTERS

Person County Combined Cycle CPCN

On March 28, 2024, Duke Energy Progress filed with the NCUC its application to construct and operate a 1,360 MW hydrogen-capable, advanced-class combined-cycle generating facility (CC) in Person County at the site of the existing Roxboro Plant. Subject to negotiation of final contractual terms, the new Roxboro CC will be co-owned with the North Carolina Electric Membership Corporation (NCEMC), with Duke Energy Progress owning approximately 1,135 MW and NCEMC owning the remaining 225 MW. Pending regulatory approvals, construction is planned to start in 2026, with the CC targeted to be placed in service by the end of 2028. The ~~PSCSC held~~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 ~~hearing on January 17, 2023,~~future rate case. The 2029 North Carolina retail revenue requirement for the proposed facility is estimated 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.be $98 million, representing an approximate average retail rate increase of 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”).

Pursuant to the 2021 Settlement, the Parties agreed to a base rate stay-out provision that expires year-end 2024; however, Duke Energy Florida is allowed an increase to its base rates of an incremental $67 million in 2022, $49 million in 2023 and $79 million in 2024, subject to adjustment in the event of tax reform during the years 2021, 2022 and 2023. The Parties also agreed to an ROE band of 8.85% to 10.85% with a midpoint of 9.85% based ~~on a capital structure~~upon 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 ~~September 30, 2023,~~March 31, 2024, Duke Energy Florida has recognized ~~$94~~$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 ~~$79~~$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 ~~consists~~consisting 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 be~~is 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 ~~Court~~court 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.~~


FINANCIAL STATEMENTS			REGULATORY 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. The OPC's reply brief was filed on October 16, 2023. The ~~OPC has filed a request for oral argument, but the~~ Florida Supreme Court ~~has yet to rule~~heard oral arguments on ~~that request. Duke Energy Florida cannot predict the outcome of this matter.~~February 7, 2024.


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

Hurricanes 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~~ ~~September 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 filed documentation evidencing its total actual storm costs of $431 million on September 29, 2023. The FPSC will hold a final hearing to determine the prudence 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. Duke Energy Florida's September 30, 2023, Condensed Consolidated Balance Sheets includes an estimate of approximately $96 million in regulatory assets related to deferred Hurricane Idalia storm costs consistent with the FPSC's storm rule. 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. ~~Duke Energy Florida is seeking~~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.~~surcharge, and ordered Duke Energy Florida ~~cannot predict~~to file documentation of the ~~outcome~~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 ~~these matters.~~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 request is scheduled to begin on August 12, 2024.

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 ~~OCC~~Ohio 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.

•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 ~~Fifth~~Second 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 ~~submit~~seek 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.~~

On August 9, 2023, the PUCO issued its decision approving the Company’s request for recovery and final true up of energy efficiency program costs, lost distribution revenues and performance incentives from calendar years 2018 through 2020, resulting in $14 million of Regulated electric revenue on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023, and resolving all outstanding issues in these proceedings. Rates were revised effective September 1, 2023.


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

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 ~~seeking~~sought 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, 2023, and reply briefs were filed on July 14,~~ ~~2023.~~ On November 1, 2023, PUCO issued an order approving the stipulation as filed. New rates went into effect November 1, 2023. On December 1, 2023, the OCC filed an application for rehearing. On December 13, 2023, the PUCO granted OCC's application for rehearing for further consideration of issues raised.

Duke Energy Ohio ~~cannot predict~~Electric Security Plan

On April 1, 2024, Duke Energy Ohio filed with the ~~outcome~~PUCO a request for an Electric Security Plan (ESP). The ESP application proposes a three-year term from June 1, 2025 through May 31, 2028 and includes continuation of ~~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.


FINANCIAL STATEMENTS			REGULATORY 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 ~~requesting~~requested 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 testimony was filed March 10, 2023, and rebuttal testimony was filed April 14, 2023. The Kentucky Attorney General recommended an increase of $31 million and an ROE of 9.55%. An evidentiary hearing concluded on May 11, 2023, with simultaneous briefs filed June 9, 2023, and replies filed on June 19, 2023. The KPSC issued an order on October 12, 2023, including a $48 million increase in base revenues, an ROE of 9.75% for electric base rates and 9.65% for electric riders and an equity ratio of 52.145%. New rates went into effect October 13, 2023. The Company's request to align the depreciation rates of East Bend with a 2035 retirement date was denied and the KPSC ordered depreciation rates with a 2041 retirement date for the unit. The KPSC did approve the request to align the depreciation rates of Woodsdale CT with a 2040 retirement date and denied the voluntary community-based renewable subscription program and the two electric vehicle charging programs.

On November 1, 2023, Duke Energy Kentucky filed for rehearing requesting certain matters be reconsidered by the KPSC. On November 21, 2023, KPSC granted in part and denied in part the Company's request for rehearing. On February 15, 2024, the KPSC issued a briefing schedule for the rehearing process. The briefing concluded on April 1, 2024, and the matter was submitted for decision on April 2, 2024.

On December 14, 2023, Duke Energy Kentucky ~~cannot predict~~filed an appeal with the ~~outcome of this matter.~~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, and the Kentucky Broadband & Cable Association. On April 11, 2024, the Franklin County Circuit Court approved a briefing schedule with Duke Energy 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.

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~~. D~~uke 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.


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

Indiana Coal Ash Recovery ~~Cases~~

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, 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.~~2023, Duke Energy Indiana filed its proposal to remove from rates certain costs incurred prior to the IURC's November 3, 2021 order date. On September 20, 2023, the 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 ~~also~~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 ~~2020~~ Indiana ~~Coal Ash Recovery Case.~~coal ash recovery case from 2020. An evidentiary hearing ~~has been scheduled for~~was held on January 25, 2024. ~~Duke Energy Indiana cannot predict the outcome of this matter.~~

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 ~~the~~a targeted economic development project, which the IURC approved on March 2, 2022. On July 15, 2022, the OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy Indiana’s TDSIC 2.0 proceeding. An appellant brief was filed on October 28, 2022, and Duke Energy Indiana filed its responsive brief on December 28, 2022. The Indiana Court of Appeals issued its opinion on March 9, 2023, affirming the IURC’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the Indiana Supreme Court. The Indiana Supreme Court granted transfer and held an oral argument on September 28, 2023.

2024 Indiana Rate Case

On April 4, 2024, Duke Energy Indiana ~~cannot predict~~filed an application with the ~~outcome of this matter.~~

~~Piedmont~~

~~Tennessee Annual Review Mechanism~~

On October 10, 2022, the TPUC approved Piedmont’s petition to adopt an 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,IURC for a ~~total~~rate increase of $492 million, representing an overall average bill increase of approximately ~~$42 million~~16.2%, which, if approved, would be added to retail customer bills in two steps, approximately 11.7% in 2025 and ~~for rates~~approximately 4.5% in 2026. Duke Energy Indiana requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by $1.6 billion in investments made since the last general rate case filed in 2019 in order to ~~become effective October 1, 2023. On September 11, 2023, the TPUC approved a settlement between Piedmont and the Consumer Advocate Division~~reliably serve customers, improve resiliency of the ~~Tennessee Attorney General's Office,~~system, and advance environmental sustainability. An evidentiary hearing is scheduled to begin August 29, 2024.


FINANCIAL STATEMENTS			REGULATORY 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 ~~provided for recovery~~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 ~~Historic Base Period Reconciliation cost~~plant additions being rolled into rate base are categories of ~~service of $11 million through rider rates and an increase in Piedmont's base rates of $29 million for~~plant investment that are covered under the ~~Annual Base Rate Reset component~~IMR mechanism, which was originally approved as part of the ~~ARM. These amounts result in a total increase of $40 million with adjusted~~2013 North Carolina Rate Case. Piedmont plans to implement revised interim rates ~~effective October~~by November 1, ~~2023.~~2024.

5. COMMITMENTS AND CONTINGENCIES

ENVIRONMENTAL

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.


~~FINANCIAL STATEMENTS~~			~~COMMITMENTS AND CONTINGENCIES~~

The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Accounts Payable within Other Current Liabilities and Other within Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets.

(in millions)

September 30, 2023

December 31, 2022

(in millions)

Reserves for Environmental Remediation

Duke Energy

Duke Energy Carolinas

Progress Energy

Duke Energy Progress

Duke Energy Florida

Duke Energy Ohio

Duke Energy Indiana

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.


FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

On January 28, 2023, the ~~Court~~court denied certain motions including those by the generator defendants and TDUs and granted others. The generators and TDUs filed separate petitions for Writ of Mandamus to the Texas Court of Appeals seeking to overturn the denials. The TDUs' petition, filed first, was accepted and oral argument was held on October 23, 2023. ~~The parties await a ruling from~~In the ~~court. The generators’ petition has not yet been set for argument.~~ ~~After~~cases against the ~~rulings on~~generators, plaintiffs have dismissed the ~~motions to dismiss, plaintiffs filed new lawsuits~~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 begun to dismiss~~. However, before Duke Energy (Parent) was dismissed from ~~these lawsuits~~all cases, on December 14, 2023, without argument, the Court of Appeals accepted mandamus of the generator defendants’ appeal, which includes all Duke Energy entities, and ~~have represented~~directed the MDL court to dismiss all claims. Plaintiffs filed their Petition for Reconsideration on January 29, 2024, and the ~~court that they will dismiss~~generator defendants responded on May 6, 2024. Regardless of the outcome of any motion for reconsideration or appeal, claims against Duke Energy (Parent) ~~from~~will remain dismissed. In October 2023, in conjunction with the closing of the sale of the utility-scale solar and wind group, all ~~such cases. Duk~~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 remaining case. ~~e Energy cannot predict the outcome of this matter.~~ 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 reached an agreement that resolved this matter. The resolution, which did not have a material financial impact,~~ ~~was approved by the Durham County Superior Court. The case was dismissed on June 6, 2023.~~

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.


~~FINANCIAL STATEMENTS~~			~~COMMITMENTS AND CONTINGENCIES~~

Following completion of discovery, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the court issued an order partially granting Duke Energy Carolinas' motion by dismissing NTE's counterclaims that Duke Energy Carolinas engaged in anti-competitive behavior in violation of state and federal statutes. On October 12, 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation and a Stipulation of Dismissal was filed with the court on October 13, 2022. On November 11, 2022, NTE filed its Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit as to the District Court's summary judgment ruling in Duke Energy Carolinas' favor on NTE's antitrust and unfair competition claims. Briefing on NTE's appeal was completed on June 30, 2023. ~~The oral~~Oral argument ~~has been~~is scheduled for ~~t December~~May 7, ~~2023. Duke Energy Carolinas cannot predict the outcome of this matter.~~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 ~~$436~~$417 million at ~~September 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 2043 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 2043 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 $572 million at ~~September 30, 2023,~~March 31, 2024, and ~~$595 million at~~ 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 $9 million as of March 31, 2024, and ~~$12 million~~December 31, 2023, for both Duke Energy and Duke Energy ~~Carolinas as of September 30, 2023, and December 31, 2022, respectively.~~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.


FINANCIAL STATEMENTS			COMMITMENTS 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 ~~December 31, 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.

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

~~Debt~~In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 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 held~~following 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 further~~more information.

5755


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

SUMMARY OF SIGNIFICANT DEBT ISSUANCES

The following table summarizes significant debt issuances (in millions).

Nine Months Ended September 30, 2023
Duke Duke Duke Duke Duke Duke
Maturity Interest Duke Energy Energy Energy Energy Energy Energy
Issuance Date Date Rate Energy (Parent) Carolinas Progress Florida Ohio Indiana Piedmont
Unsecured Debt
April 2023(a)
April 2026 4.125 % $ 1,725 $ 1,725 $ — $ — $ — $ — $ — $ —
June 2023(b)
June 2033 5.400 % 350 — — — — — — 350
September 2023(c)
September 2033 5.750 % 600 600 — — — — — —
September 2023(c)
September 2053 6.100 % 750 750 — — — — — —
First Mortgage Bonds
January 2023(d)
January 2033 4.950 % 900 — 900 — — — — —
January 2023(d)
January 2053 5.350 % 900 — 900 — — — — —
March 2023(e)
March 2033 5.250 % 500 — — 500 — — — —
March 2023(e)
March 2053 5.350 % 500 — — 500 — — — —
March 2023(f)
April 2033 5.250 % 375 — — — — 375 — —
March 2023(f)
April 2053 5.650 % 375 — — — — 375 — —
March 2023(g)
April 2053 5.400 % 500 — — — — — 500 —
June 2023(h)
January 2033 4.950 % 350 — 350 — — — — —
June 2023(h)
January 2054 5.400 % 500 — 500 — — — — —
September 2023(i)
October 2073 4.960 % 200 — — — 200 — — —
Total issuances $ 8,525 $ 3,075 $ 2,650 $ 1,000 $ 200 $ 750 $ 500 $ 350


				Three Months Ended March 31, 2024
						Duke		Duke		Duke		Duke		Duke
	Maturity	Interest		Duke		Energy		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate		Energy		(Parent)		Carolinas		Progress		Ohio		Indiana
Unsecured Debt
January 2024(a)	January 2027	4.85	%	$	600	$	600	$	—	$	—	$	—	$	—
January 2024(a)	January 2029	4.85	%	650		650		—		—		—		—



First Mortgage Bonds
January 2024(b)	January 2034	4.85	%	$	575	$	—	$	575	$	—	$	—	$	—
January 2024(b)	January 2054	5.40	%	425		—		425		—		—		—
March 2024(b)	March 2034	5.25	%	300		—		—		—		—		300
March 2024(c)	March 2034	5.10	%	500		—		—		500		—		—
March 2024(d)	March 2054	5.55	%	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 be~~were used to repay ~~$45 million of maturities~~the remaining $1 billion outstanding on Duke Energy (Parent)'s variable rate Term Loan Facility due ~~October 2023, to~~March 2024, pay down a portion of short-term debt and for general corporate purposes. Duke Energy (Parent)'s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.

~~(c)Proceeds were primarily used to repay $400 million of maturities due October 2023, to pay down a portion of short-term debt and for general corporate purposes.~~

~~(d)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.~~

~~(e)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.~~

~~(f)~~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.

~~(g)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.~~

~~(h)~~(b)Proceeds were used to pay down a portion of short-term debt and for general company purposes.

~~(i)~~(c)Proceeds were used to fund eligible green energy projects, pay down a portion of short-term debt and for general company purposes.

(d)Proceeds were used to pay down a portion of short-term debt and for general ~~company~~corporate 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. Proceeds were used to repay a portion of outstanding commercial paper and for general corporate purposes.

~~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 10 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.~~


~~FINANCIAL STATEMENTS~~			~~DEBT AND CREDIT FACILITIES~~

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)

Maturity Date

Interest Rate

September 30, 2023

(in millions)

Maturity Date

Interest Rate

March 31, 2024

Unsecured Debt

Duke Energy Ohio(a)

October 2023

5.813

150

Duke Energy (Parent)

October 2023

3.950

400

Duke Energy (Parent) Term Loan Facility(a)

March 2024

6.048

1,000

Duke Energy (Parent)

April 2024

3.750

1,000

Duke Energy Florida(a)

April 2024

6.196

800

Duke Energy (Parent)

Other(b)

684

Duke Energy (Parent)

Secured Debt

Duke Energy Florida(a)

Duke Energy Carolinas(a)

First Mortgage Bonds

Duke Energy Florida(b)

Other(c)

Current maturities of long-term debt

4,034

(a)Debt has a floating interest rate. In ~~October 2023,~~April 2024, Duke Energy ~~Kentucky's $50~~Florida repaid the $325 million ~~two-year term loan facility was increased to $75 million and it's maturity was extended to April 2024. The term loan was fully drawn at the time of closing with incremental~~in total borrowings outstanding under the DEFR accounts receivable securitization facility ~~used to pay down short-term debt~~maturing in April 2024 and terminated the facility. See Note 12 for ~~general corporate purposes.~~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 ~~amended~~extended 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.

5956


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

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


		September 30, 2023
					Duke		Duke		Duke		Duke		Duke		Duke
		Duke			Energy		Energy		Energy		Energy		Energy		Energy
	March 31, 2024																								March 31, 2024
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont		Energy	(Parent)	Carolinas	Progress	Florida	Ohio		Indiana	Piedmont
Facility size(a)	Facility size(a)	$	9,000		$	2,275	$	1,575	$	1,400	$	1,250	$	750	$	950	$	800
Reduction to backstop issuances	Reduction to backstop issuances
Commercial paper(b)
Commercial paper(b)
Commercial paper(b)	Commercial paper(b)	(2,815)			(106)		(631)		(841)		(292)		(298)		(350)		(297)
Outstanding letters of credit	Outstanding letters of credit	(39)			(27)		(4)		(1)		(7)		—		—		—
Tax-exempt bonds	Tax-exempt bonds	(81)			—		—		—		—		—		(81)		—

Available capacity under the Master Credit Facility	Available capacity under the Master Credit Facility	$	6,065		$	2,142	$	940	$	558	$	951	$	452	$	519	$	503
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 may~~agreement) 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. Borrowings~~drawn. On April 24, 2024, $500 million was drawn under the facility ~~were~~with borrowings used ~~to repay amounts drawn under the Three-Year Revolving Credit Facility and~~ for general corporate ~~purposes, including repayment~~purposes. Borrowings can be prepaid at any time throughout the term of ~~a portion~~the 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 existing~~Master 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. ~~ASSET RETIREMENT OBLIGATIONS~~

The Duke Energy Registrants record AROs when there is a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Actual costs incurred could be materially different from current estimates that form the basis of the recorded AROs.

~~The following table presents the AROs recorded on the Condensed Consolidated Balance Sheets.~~

September 30, 2023
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Decommissioning of nuclear power facilities(a)
$ 7,459 $ 3,136 $ 4,295 $ 4,069 $ 226 $ — $ — $ —
Closure of ash impoundments 4,474 2,065 1,530 1,509 21 77 801 —
Other 300 67 105 44 61 61 41 28
Total ARO $ 12,233 $ 5,268 $ 5,930 $ 5,622 $ 308 $ 138 $ 842 $ 28
Less: Current portion 620 238 261 260 1 8 114 —
Total noncurrent ARO $ 11,613 $ 5,030 $ 5,669 $ 5,362 $ 307 $ 130 $ 728 $ 28

~~(a)Duke Energy amount includes purchase accounting adjustments related to the merger with Progress Energy.~~

~~ARO Liability Rollforward~~

~~The following table presents the change in liability associated with AROs for the Duke Energy Registrants.~~

Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Balance at December 31, 2022(a)
$ 12,728 $ 5,382 $ 6,181 $ 5,823 $ 358 $ 154 $ 951 $ 26
Accretion expense(b)
391 189 178 169 9 5 24 2
Liabilities settled(c)
(494) (171) (247) (196) (51) (11) (66) —
Revisions in estimates of cash flows(d)
(392) (132) (182) (174) (8) (10) (67) —
Balance at September 30, 2023 $ 12,233 $ 5,268 $ 5,930 $ 5,622 $ 308 $ 138 $ 842 $ 28


~~FINANCIAL STATEMENTS~~			~~ASSET RETIREMENT OBLIGATIONS~~

~~(a)~~Primarily relates to decommissioning nuclear power facilities, closure of ash impoundments, asbestos removal, closure of landfills at fossil generation facilities, retirement of natural gas mains and removal of renewable energy generation assets.

~~(b)~~For the nine months ended September 30, 2023, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.

~~(c)Primarily relates to ash impoundment closures and nuclear decommissioning.~~

~~(d)~~The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The decreases primarily relate to lower unit costs associated with basin closure, routine maintenance and beneficiation activities, as well as a reduction in monitoring wells needed.

Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets within Other Noncurrent Assets, respectively, on the Condensed Consolidated Balance Sheets.

8. GOODWILL

Duke Energy

Duke Energy's Goodwill balance of $19.3 billion is allocated $17.4 billion to EU&I and $1.9 billion to GU&I on Duke Energy's Condensed Consolidated Balance Sheets at ~~September 30, 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 ~~September 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.

~~Impairment Testing~~

Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont are required to perform an annual goodwill impairment test as of the same date each year and, accordingly, perform their annual impairment testing of goodwill as of August 31. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update their test between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. As the fair value for Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont exceeded their respective carrying values at the date of the annual impairment analysis, no goodwill impairment charges were recorded in the third quarter of 2023.

6157


FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

9.8. 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 transactions~~Transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.


		Three Months Ended September 30,				Nine Months Ended September 30,
		Three Months Ended March 31,
		Three Months Ended March 31,
		Three Months Ended March 31,
(in millions)
(in millions)
(in millions)	(in millions)	2023		2022		2023		2022
Duke Energy Carolinas	Duke 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)	$	198	$	193	$	586	$	590
Indemnification coverages(b)	Indemnification coverages(b)	9		7		26		21
Joint Dispatch Agreement (JDA) revenue(c)		5		16		26		54
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)	58		210		121		477
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	5		5		14		14
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Progress Energy
Progress Energy
Progress Energy	Progress Energy
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	172	$	188	$	522	$	568
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)	11		10		35		32
JDA revenue(c)	JDA revenue(c)	58		210		121		477
JDA revenue(c)
JDA revenue(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)	JDA expense(c)	5		16		26		54
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	19		19		56		57
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Duke Energy Progress
Duke Energy Progress
Duke Energy Progress	Duke Energy Progress
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	103	$	111	$	314	$	338
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		5		15		15
JDA revenue(c)	JDA revenue(c)	58		210		121		477
JDA revenue(c)
JDA revenue(c)
JDA expense(c)
JDA expense(c)
JDA expense(c)	JDA expense(c)	5		16		26		54
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	19		19		56		57
Intercompany natural gas purchases(d)
Intercompany natural gas purchases(d)
Duke Energy Florida
Duke Energy Florida
Duke Energy Florida	Duke Energy Florida
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	69	$	77	$	208	$	230
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)	6		5		20		17
Duke Energy Ohio	Duke 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)	$	73	$	87	$	222	$	251
Indemnification coverages(b)	Indemnification coverages(b)	1		2		4		4
Indemnification coverages(b)
Indemnification coverages(b)
Duke Energy Indiana
Duke Energy Indiana
Duke Energy Indiana	Duke Energy Indiana
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	92	$	115	$	275	$	330
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		2		6		6
Piedmont	Piedmont
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)	$	32	$	37	$	107	$	109
Indemnification coverages(b)	Indemnification coverages(b)	1		1		3		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)	24		24		70		71
Natural gas storage and transportation costs(e)	Natural gas storage and transportation costs(e)	6		6		18		17
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.

6258


FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions, such as pipeline lease arrangements, and their proportionate share of certain charged expenses. These transactions of the Subsidiary Registrants are incurred in the ordinary course of business and are eliminated in consolidation.

As discussed in Note ~~13,~~12, certain trade receivables ~~have been~~were previously sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables ~~are~~were largely cash but ~~do include~~included a subordinated note from CRC for a portion of the purchase price. In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility.

Intercompany Income Taxes

Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.


		Duke				Duke
		Energy		Progress		Energy
	Duke
		Energy
		Energy
		Energy
(in millions)	(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
September 30, 2023
(in millions)
(in millions)																Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
March 31, 2024
Intercompany income tax receivable
Intercompany income tax receivable
Intercompany income tax receivable	Intercompany income tax receivable	$	—	$	—	$	—	$	—	$	—	$	—	$	24
Intercompany income tax payable	Intercompany income tax payable	72		138		114		110		18		20		—

December 31, 2022
December 31, 2023
December 31, 2023
December 31, 2023
Intercompany income tax receivable
Intercompany income tax receivable
Intercompany income tax receivable	Intercompany income tax receivable	$	—	$	95	$	36	$	17	$	—	$	—	$	—
Intercompany income tax payable	Intercompany income tax payable	37		—		—		—		17		18		38

~~10.~~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 nine~~ months ended ~~September 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.

6359


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

The following tables show notional amounts of outstanding derivatives related to interest rate risk.


		September 30, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
	March 31, 2024																										March 31, 2024
				Duke																			Duke					Duke				Duke
	Duke																		Duke		Energy			Progress						Energy
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Indiana		Ohio		(in millions)	Energy		Carolinas		Energy			Progress	Florida			Indiana		Ohio
Cash flow hedges	Cash flow hedges	$	1,875		$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	Undesignated contracts	2,477			650		1,500		500		1,000		300		27
Total notional amount	Total notional amount	$	4,352		$	650	$	1,500	$	500	$	1,000	$	300	$	27


		December 31, 2022
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
	December 31, 2023																										December 31, 2023
				Duke																			Duke					Duke				Duke
	Duke																		Duke		Energy			Progress						Energy
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Indiana		Ohio		(in millions)	Energy		Carolinas		Energy			Progress	Florida			Indiana		Ohio
Cash flow hedges	Cash flow hedges	$	500		$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	Undesignated contracts	2,377			1,250		800		500		300		300		27
Total notional amount	Total 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.

September 30, 2023

Duke

Energy

Progress

Energy

Carolinas

Energy

Progress

Ohio

Indiana

Piedmont

March 31, 2024

Duke

Energy

Carolinas

Energy

Progress

Ohio

Indiana

Piedmont

Electricity (GWh)

20,961

—

2,550

18,411

—

Natural gas (millions of dekatherms)

841

276

272

—

272

December 31, 2022

Duke

Energy

Progress

Energy

Carolinas

Energy

Progress

Ohio

Indiana

Piedmont

December 31, 2023

Duke

Energy

Carolinas

Energy

Progress

Ohio

Indiana

Piedmont

Electricity (GWh)

14,086

—

1,820

12,266

—

Natural gas (millions of dekatherms)

909

307

292

—

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.

6460


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Fair Value Hedges

Derivatives related to existing fixed-rate securities are accounted for as fair value hedges, where the derivatives’ fair value gains or losses and hedged items’ fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Duke Energy has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value hedges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of other comprehensive income or loss.

The following table shows Duke Energy's outstanding derivatives related to foreign currency risk at ~~September 30, 2023.~~March 31, 2024.


											Fair Value Loss(a)
											(in millions)
		Pay Notional				Receive Notional		Receive		Hedge	Three Months Ended September 30,					Nine Months Ended September 30,
		(in millions)		Pay Rate		(in millions)		Rate		Maturity Date	2023		2022			2023		2022
															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 hedges	Fair value hedges
		$	645	4.75	%	600	euros	3.10	%	June 2028	$	(20)	$	(41)		$	(10)	$	(57)
		537		5.31	%	500	euros	3.85	%	June 2034	(17)		(34)			(9)		(47)
Fair value hedges
Fair value hedges
		$
		$
		$
		537
		537
		537
Total notional amount	Total notional amount	$	1,182			1,100	euros				$	(37)	$	(75)		$	(19)	$	(104)
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 ~~CONDENSED~~CONDENSED CONSOLIDATED BALANCE SHEETS

The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Condensed Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.


Derivative Assets	Derivative Assets	September 30, 2023																	Derivative Assets		March 31, 2024
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Commodity Contracts	Commodity Contracts

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments

Not Designated as Hedging Instruments

Not Designated as Hedging Instruments
Current
Current
Current	Current	$	57		$	11	$	14	$	9	$	5	$	2	$	28	$	1
Noncurrent	Noncurrent	86			40		46		46		—		—		—		—
Total Derivative Assets – Commodity Contracts	Total Derivative Assets – Commodity Contracts	$	143		$	51	$	60	$	55	$	5	$	2	$	28	$	1
Interest Rate Contracts	Interest Rate Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current
Current
Current
Noncurrent
Not Designated as Hedging Instruments

Noncurrent	Noncurrent	177			—		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current		104			26		78		—		78		—		—		—

Noncurrent

Noncurrent	Noncurrent	101			16		58		24		34		—		27		—
Total Derivative Assets – Interest Rate Contracts	Total Derivative Assets – Interest Rate Contracts	$	382		$	42	$	136	$	24	$	112	$	—	$	27	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments

Noncurrent

Noncurrent

Noncurrent

Total Derivative Assets – Foreign Currency Contracts

Total Derivative Assets – Foreign Currency Contracts

Total Derivative Assets – Foreign Currency Contracts
Total Derivative Assets	Total Derivative Assets	$	525		$	93	$	196	$	79	$	117	$	2	$	55	$	1

6561


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	Derivative Liabilities	September 30, 2023																	Derivative Liabilities		March 31, 2024
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Commodity Contracts	Commodity Contracts

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments
Current		$	275		$	156	$	97	$	97	$	—	$	—	$	4	$	18
Noncurrent		215			48		40		40		—		—		—		127
Total Derivative Liabilities – Commodity Contracts		$	490		$	204	$	137	$	137	$	—	$	—	$	4	$	145
Interest Rate Contracts

Not Designated as Hedging Instruments	Not 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

Noncurrent	Noncurrent	1			—		—		—		—		1		—		—
Total Derivative Liabilities – Interest Rate Contracts	Total Derivative Liabilities – Interest Rate Contracts	$	1		$	—	$	—	$	—	$	—	$	1	$	—	$	—
Foreign Currency Contracts	Foreign Currency Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current	Current	$	18		$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		11			—		—		—		—		—		—		—
Current
Current

Total Derivative Liabilities – Foreign Currency Contracts

Total Derivative Liabilities – Foreign Currency Contracts

Total Derivative Liabilities – Foreign Currency Contracts	Total Derivative Liabilities – Foreign Currency Contracts	$	29		$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities	Total Derivative Liabilities	$	520		$	204	$	137	$	137	$	—	$	1	$	4	$	145


Derivative Assets	Derivative Assets	December 31, 2022																	Derivative Assets		December 31, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Commodity Contracts	Commodity Contracts

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments

Not Designated as Hedging Instruments

Not Designated as Hedging Instruments
Current
Current
Current	Current	$	265		$	132	$	99	$	99	$	—	$	5	$	29	$	—
Noncurrent	Noncurrent	213			104		108		108		—		—		—		—
Total Derivative Assets – Commodity Contracts	Total Derivative Assets – Commodity Contracts	$	478		$	236	$	207	$	207	$	—	$	5	$	29	$	—
Interest Rate Contracts	Interest Rate Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current	Current	$	101		$	—	$	—	$	—	$	—	$	—	$	—	$	—

Current
Current
Noncurrent
Not Designated as Hedging Instruments	Not Designated as Hedging Instruments
Current	Current	$	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 Assets	Total Derivative Assets	$	795		$	330	$	248	$	230	$	17	$	5	$	110	$	—

6662


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	Derivative Liabilities	December 31, 2022																	Derivative Liabilities		December 31, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Commodity Contracts	Commodity Contracts

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments
Current		$	175		$	96	$	36	$	18	$	19	$	—	$	16	$	27
Noncurrent		202			31		30		30		—		—		—		141
Total Derivative Liabilities – Commodity Contracts		$	377		$	127	$	66	$	48	$	19	$	—	$	16	$	168
Interest Rate Contracts

Not Designated as Hedging Instruments	Not 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
Noncurrent	Noncurrent	$	2		$	—	$	—	$	—	$	—	$	2	$	—	$	—
Total Derivative Liabilities – Interest Rate Contracts	Total Derivative Liabilities – Interest Rate Contracts	$	2		$	—	$	—	$	—	$	—	$	2	$	—	$	—
Foreign Currency Contracts	Foreign Currency Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments
Designated as Hedging Instruments
Designated as Hedging Instruments
Current	Current	$	18		$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		40			—		—		—		—		—		—		—
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 Liabilities	Total Derivative Liabilities	$	437		$	127	$	66	$	48	$	19	$	2	$	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 amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.


Derivative Assets	Derivative Assets	September 30, 2023																	Derivative Assets		March 31, 2024
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Current	Current
Gross amounts recognized
Gross amounts recognized
Gross amounts recognized	Gross amounts recognized	$	161		$	37	$	92	$	9	$	83	$	2	$	28	$	1
Offset	Offset	(17)			(9)		(8)		(8)		—		—		—		—

Net amounts presented in Current Assets: Other	Net amounts presented in Current Assets: Other	$	144		$	28	$	84	$	1	$	83	$	2	$	28	$	1
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: Other
Noncurrent	Noncurrent
Gross amounts recognized
Gross amounts recognized
Gross amounts recognized	Gross amounts recognized	$	364		$	56	$	104	$	70	$	34	$	—	$	27	$	—
Offset	Offset	(60)			(32)		(28)		(28)		—		—		—		—

Net amounts presented in Other Noncurrent Assets: Other	Net amounts presented in Other Noncurrent Assets: Other	$	304		$	24	$	76	$	42	$	34	$	—	$	27	$	—
Net amounts presented in Other Noncurrent Assets: Other
Net amounts presented in Other Noncurrent Assets: Other

6763


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	Derivative Liabilities	September 30, 2023																	Derivative Liabilities		March 31, 2024
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Current	Current
Gross amounts recognized
Gross amounts recognized
Gross amounts recognized	Gross amounts recognized	$	293		$	156	$	97	$	97	$	—	$	—	$	4	$	18
Offset	Offset	(17)			(9)		(8)		(8)		—		—		—		—
Cash collateral posted	Cash collateral posted	(16)			(12)		(1)		(1)		—		—		(4)		—
Net amounts presented in Current Liabilities: Other	Net amounts presented in Current Liabilities: Other	$	260		$	135	$	88	$	88	$	—	$	—	$	—	$	18
Noncurrent	Noncurrent
Gross amounts recognized	Gross amounts recognized	$	227		$	48	$	40	$	40	$	—	$	1	$	—	$	127
Gross amounts recognized
Gross amounts recognized
Offset	Offset	(60)			(33)		(28)		(28)		—		—		—		—
Cash collateral posted	Cash collateral posted	$	(8)		$	(7)	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Net amounts presented in Other Noncurrent Liabilities: Other	Net amounts presented in Other Noncurrent Liabilities: Other	$	159		$	8	$	11	$	11	$	—	$	1	$	—	$	127


Derivative Assets	Derivative Assets	December 31, 2022																	Derivative Assets		December 31, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Current	Current
Gross amounts recognized	Gross amounts recognized	$	582		$	226	$	140	$	122	$	17	$	5	$	110	$	—
Gross amounts recognized
Gross amounts recognized
Offset	Offset	(33)			(15)		(18)		(18)		—		—		—		—
Cash collateral received		(31)			(18)		(12)		(12)		—		—		—		—

Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: Other
Net amounts presented in Current Assets: Other	Net amounts presented in Current Assets: Other	$	518		$	193	$	110	$	92	$	17	$	5	$	110	$	—
Noncurrent	Noncurrent
Gross amounts recognized	Gross amounts recognized	$	213		$	104	$	108	$	108	$	—	$	—	$	—	$	—
Gross amounts recognized
Gross amounts recognized
Offset	Offset	(59)			(29)		(30)		(30)		—		—		—		—
Cash collateral received		(38)			(11)		(27)		(27)		—		—		—		—

Net amounts presented in Other Noncurrent Assets: Other	Net 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 Liabilities	Derivative Liabilities	December 31, 2022																	Derivative Liabilities		December 31, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont			Energy		Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Current	Current
Gross amounts recognized
Gross amounts recognized
Gross amounts recognized	Gross amounts recognized	$	193		$	96	$	36	$	18	$	19	$	—	$	16	$	27
Offset	Offset	(33)			(15)		(18)		(18)		—		—		—		—
Cash collateral posted	Cash collateral posted	(16)			—		—		—		—		—		(16)		—
Net amounts presented in Current Liabilities: Other	Net amounts presented in Current Liabilities: Other	$	144		$	81	$	18	$	—	$	19	$	—	$	—	$	27
Noncurrent	Noncurrent
Gross amounts recognized	Gross amounts recognized	$	244		$	31	$	30	$	30	$	—	$	2	$	—	$	141
Gross amounts recognized
Gross amounts recognized
Offset	Offset	(59)			(29)		(30)		(30)		—		—		—		—

Cash collateral posted
Net amounts presented in Other Noncurrent Liabilities: Other	Net amounts presented in Other Noncurrent Liabilities: Other	$	185		$	2	$	—	$	—	$	—	$	2	$	—	$	141

6864


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

OBJECTIVE CREDIT CONTINGENT FEATURES

Certain derivative contracts contain objective credit contingent features. These features include the requirement to post cash collateral or letters of credit if specific events occur, such as a credit rating downgrade below investment grade. The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit risk-related payment provisions.

September 30, 2023

Duke

Energy

Progress

Energy

March 31, 2024

Duke

(in millions)

Energy

Carolinas

Energy

Progress

Aggregate fair value of derivatives in a net liability position

312

175

138

Aggregate fair value of derivatives in a net liability position

Fair value of collateral already posted

Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered

291

156

136

Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered


		December 31, 2022
					Duke				Duke		Duke
		Duke			Energy		Progress		Energy		Energy
		December 31, 2023
		December 31, 2023
		December 31, 2023
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida
Aggregate fair value of derivatives in a net liability position	Aggregate fair value of derivatives in a net liability position	$	141		$	86	$	55	$	48	$	7
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 posted	Fair value of collateral already posted	—			—		—		—		—
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	$	141		$	86	$	55	$	48	$	7
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.

~~11.~~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 ~~September 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.

6965


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
NDTF	NDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	160	$	—	$	—	$	215
Equity securities	Equity securities	4,218		44		6,530		3,658		105		5,871
Corporate debt securities	Corporate debt securities	—		80		612		1		85		641
Municipal bonds	Municipal bonds	—		41		318		—		39		330
U.S. government bonds	U.S. government bonds	—		136		1,470		2		112		1,423

Other debt securities	Other debt securities	—		18		169		—		18		156
Other debt securities
Other debt securities
Total NDTF Investments	Total NDTF Investments	$	4,218	$	319	$	9,259	$	3,661	$	359	$	8,636
Other Investments	Other Investments
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	36	$	—	$	—	$	22
Equity securities	Equity securities	26		9		141		21		16		128
Corporate debt securities	Corporate debt securities	—		10		83		—		12		84
Municipal bonds	Municipal bonds	—		3		74		—		3		78
U.S. government bonds	U.S. government bonds	—		5		46		—		2		62
Other debt securities	Other debt securities	—		5		52		—		3		41
Total Other Investments	Total Other Investments	$	26	$	32	$	432	$	21	$	36	$	415
Total Investments	Total Investments	$	4,244	$	351	$	9,691	$	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 nine~~ months ended ~~September 30,~~March 31, 2024, and 2023, ~~and 2022,~~ were as follows.


		Three Months Ended				Nine Months Ended
				Three Months Ended
				Three Months Ended
				Three Months Ended
(in millions)	(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022		(in millions)	March 31, 2024	March 31, 2023
FV-NI:	FV-NI:
Realized gains
Realized gains
Realized gains	Realized gains	$	61	$	25	$	107	$	170
Realized losses	Realized losses	35		61		117		247
AFS:	AFS:
Realized gains	Realized gains	16		7		37		22
Realized gains
Realized gains
Realized losses	Realized losses	45		40		104		105

DUKE ENERGY CAROLINAS

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
NDTF	NDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	59	$	—	$	—	$	117
Equity securities	Equity securities	2,468		25		3,767		2,147		51		3,367
Corporate debt securities	Corporate debt securities	—		60		376		1		62		401
Municipal bonds	Municipal bonds	—		9		45		—		10		64
U.S. government bonds	U.S. government bonds	—		73		745		1		51		685
Other debt securities	Other debt securities	—		18		163		—		18		148
Total NDTF Investments	Total NDTF Investments	$	2,468	$	185	$	5,155	$	2,149	$	192	$	4,782

7066


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES


		Three Months Ended				Nine Months Ended
				Three Months Ended
				Three Months Ended
				Three Months Ended
(in millions)	(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022		(in millions)	March 31, 2024	March 31, 2023
FV-NI:	FV-NI:
Realized gains
Realized gains
Realized gains	Realized gains	$	43	$	16	$	70	$	109
Realized losses	Realized losses	17		39		64		143
AFS:	AFS:
Realized gains	Realized gains	12		7		21		19
Realized gains
Realized gains
Realized losses	Realized losses	26		20		54		57

PROGRESS ENERGY

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
NDTF	NDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	101	$	—	$	—	$	98
Equity securities	Equity securities	1,750		19		2,763		1,511		54		2,504
Corporate debt securities	Corporate debt securities	—		20		236		—		23		240
Municipal bonds	Municipal bonds	—		32		273		—		29		266
U.S. government bonds	U.S. government bonds	—		63		725		1		61		738

Other debt securities	Other debt securities	—		—		6		—		—		8
Other debt securities
Other debt securities
Total NDTF Investments	Total NDTF Investments	$	1,750	$	134	$	4,104	$	1,512	$	167	$	3,854
Other Investments	Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	8	$	—	$	—	$	11
Cash and cash equivalents
Cash and cash equivalents

Municipal bonds
Municipal bonds
Municipal bonds	Municipal bonds	—		—		23		—		—		25
Total Other Investments	Total Other Investments	$	—	$	—	$	31	$	—	$	—	$	36
Total Investments	Total Investments	$	1,750	$	134	$	4,135	$	1,512	$	167	$	3,890


		Three Months Ended					Nine Months Ended
				Three Months Ended
				Three Months Ended
				Three Months Ended
(in millions)	(in millions)	September 30, 2023			September 30, 2022		September 30, 2023		September 30, 2022		(in millions)	March 31, 2024	March 31, 2023
FV-NI:	FV-NI:
Realized gains
Realized gains
Realized gains	Realized gains	$	18		$	9	$	37	$	61
Realized losses	Realized losses	18			22		53		104
AFS:	AFS:
Realized gains	Realized gains	4			—		16		3
Realized gains
Realized gains
Realized losses	Realized losses	19			9		50		32

7167


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY PROGRESS

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
NDTF	NDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	62	$	—	$	—	$	56
Equity securities	Equity securities	1,661		19		2,663		1,431		54		2,411
Corporate debt securities	Corporate debt securities	—		19		224		—		22		230
Municipal bonds	Municipal bonds	—		32		273		—		29		266
U.S. government bonds	U.S. government bonds	—		43		469		1		37		460
Other debt securities	Other debt securities	—		—		5		—		—		7
Total NDTF Investments	Total NDTF Investments	$	1,661	$	113	$	3,696	$	1,432	$	142	$	3,430
Other Investments	Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	4	$	—	$	—	$	9
Cash and cash equivalents
Cash and cash equivalents
Total Other Investments	Total Other Investments	$	—	$	—	$	4	$	—	$	—	$	9
Total Investments	Total Investments	$	1,661	$	113	$	3,700	$	1,432	$	142	$	3,439


		Three Months Ended					Nine Months Ended
				Three Months Ended
				Three Months Ended
				Three Months Ended
(in millions)	(in millions)	September 30, 2023			September 30, 2022		September 30, 2023		September 30, 2022		(in millions)	March 31, 2024	March 31, 2023
FV-NI:	FV-NI:
Realized gains
Realized gains
Realized gains	Realized gains	$	15		$	9	$	34	$	60
Realized losses	Realized losses	18			21		52		101
AFS:	AFS:
Realized gains	Realized gains	4			—		15		3
Realized gains
Realized gains
Realized losses	Realized losses	18			9		47		29

DUKE ENERGY FLORIDA

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
NDTF	NDTF
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	39	$	—	$	—	$	42
Equity securities	Equity securities	89		—		100		80		—		93
Corporate debt securities	Corporate debt securities	—		1		12		—		1		10

U.S. government bonds	U.S. government bonds	—		20		256		—		24		278
U.S. government bonds
U.S. government bonds

Other debt securities
Other debt securities
Other debt securities	Other debt securities	—		—		1		—		—		1
Total NDTF Investments(a)	Total NDTF Investments(a)	$	89	$	21	$	408	$	80	$	25	$	424
Other Investments	Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	1
Cash and cash equivalents
Cash and cash equivalents

Municipal bonds
Municipal bonds
Municipal bonds	Municipal bonds	—		—		23		—		—		25
Total Other Investments	Total Other Investments	$	—	$	—	$	24	$	—	$	—	$	26
Total Investments	Total Investments	$	89	$	21	$	432	$	80	$	25	$	450

(a)During the ~~nine~~three months ended ~~September 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.

7268


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY INDIANA

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.


		September 30, 2023						December 31, 2022
		Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair
	March 31, 2024																	March 31, 2024							December 31, 2023
	Gross
		Unrealized
		Unrealized
		Unrealized														Unrealized			Estimated			Unrealized				Estimated
	Holding																Holding			Fair			Holding				Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains	Losses			Value		Gains			Losses				Value
Investments	Investments
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	3	$	—	$	—	$	1
Equity securities	Equity securities	3		9		88		2		16		79
Corporate debt securities	Corporate debt securities	—		—		9		—		1		8
Municipal bonds	Municipal bonds	—		3		44		—		3		45
U.S. government bonds	U.S. government bonds	—		—		6		—		—		7

Total Investments	Total Investments	$	3	$	12	$	150	$	2	$	20	$	140
Total Investments
Total Investments

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.


		September 30, 2023
					Duke				Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy
	March 31, 2024																							March 31, 2024
				Duke																	Duke					Duke			Duke
	Duke																Duke		Energy			Progress					Energy
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Indiana		(in millions)	Energy		Carolinas		Energy			Progress		Florida			Indiana
Due in one year or less	Due in one year or less	$	137		$	7	$	109	$	21	$	88	$	7
Due after one through five years	Due after one through five years	671			209		388		235		153		19
Due after five through 10 years	Due after five through 10 years	545			311		197		184		13		10
Due after 10 years	Due after 10 years	1,471			802		569		531		38		23
Total	Total	$	2,824		$	1,329	$	1,263	$	971	$	292	$	59

~~12.~~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 ~~NYSE~~New York Stock Exchange and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.

7369


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

Investments in debt securities

Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.

Commodity derivatives

Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of certain commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.

Interest rate derivatives

Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties. 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. ~~Also, see Note 8 for further information on the annual impairment test as of August 31, 2023.~~

DUKE ENERGY

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note ~~10.~~9. See Note 1110 for additional information related to investments by major security type for the Duke Energy Registrants.


		September 30, 2023
	March 31, 2024																	March 31, 2024
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized		(in millions)	Total Fair Value	Level 1	Level 2	Level 3	Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	160	$	160	$	—	$	—	$	—
NDTF equity securities	NDTF equity securities	6,530		6,491		—		—		39
NDTF debt securities	NDTF debt securities	2,569		755		1,814		—		—
Other equity securities	Other equity securities	141		141		—		—		—
Other debt securities	Other debt securities	255		40		215		—		—
Other cash and cash equivalents	Other cash and cash equivalents	36		36		—		—		—

Derivative assets	Derivative assets	525		2		493		30		—
Derivative assets
Derivative assets
Total assets	Total assets	10,216		7,625		2,522		30		39

Derivative liabilities	Derivative liabilities	(520)		(4)		(516)		—		—
Derivative liabilities
Derivative liabilities
Net assets	Net assets	$	9,696	$	7,621	$	2,006	$	30	$	39


		December 31, 2022
	December 31, 2023																	December 31, 2023
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized		(in millions)	Total Fair Value	Level 1	Level 2	Level 3	Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	215	$	215	$	—	$	—	$	—
NDTF equity securities	NDTF equity securities	5,871		5,829		—		—		42
NDTF debt securities	NDTF debt securities	2,550		780		1,770		—		—
Other equity securities	Other equity securities	128		128		—		—		—
Other debt securities	Other debt securities	265		55		210		—		—
Other cash and cash equivalents	Other cash and cash equivalents	22		22		—		—		—
Derivative assets	Derivative assets	795		1		760		34		—
Total assets	Total assets	9,846		7,030		2,740		34		42

Derivative liabilities	Derivative liabilities	(437)		(16)		(421)		—		—
Derivative liabilities
Derivative liabilities
Net assets	Net assets	$	9,409	$	7,014	$	2,319	$	34	$	42

7470


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

The following table provides reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.


		Derivatives (net)
		Three Months Ended September 30,					Nine Months Ended September 30,
							Derivatives (net)
							Derivatives (net)
							Derivatives (net)
				Three Months Ended March 31,									Three Months Ended March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Balance at beginning of period	Balance at beginning of period	$	41		$	89	$	34	$	24

Purchases, sales, issuances and settlements:	Purchases, sales, issuances and settlements:
Purchases		3			—		50		77

Purchases, sales, issuances and settlements:

Purchases, sales, issuances and settlements:

Settlements

Settlements

Settlements	Settlements	(18)			(21)		(76)		(13)

Total gains (losses) included on the Condensed Consolidated Balance Sheet	Total gains (losses) included on the Condensed Consolidated Balance Sheet	4			(8)		22		(28)
Total gains (losses) included on the Condensed Consolidated Balance Sheet
Total gains (losses) included on the Condensed Consolidated Balance Sheet
Balance at end of period	Balance at end of period	$	30		$	60	$	30	$	60

DUKE ENERGY CAROLINAS

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.


		September 30, 2023
		March 31, 2024
		March 31, 2024
		March 31, 2024
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized		(in millions)	Total Fair Value	Level 1	Level 2	Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	59	$	59	$	—	$	—
NDTF equity securities	NDTF equity securities	3,767		3,728		—		39
NDTF debt securities	NDTF debt securities	1,329		320		1,009		—

Other AFS debt securities
Derivative assets	Derivative assets	93		—		93		—
Total assets	Total assets	5,248		4,107		1,102		39
Derivative liabilities	Derivative liabilities	(204)		—		(204)		—
Net assets	Net assets	$	5,044	$	4,107	$	898	$	39


		December 31, 2022
		December 31, 2023
		December 31, 2023
		December 31, 2023
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized		(in millions)	Total Fair Value	Level 1	Level 2	Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	117	$	117	$	—	$	—
NDTF equity securities	NDTF equity securities	3,367		3,325		—		42
NDTF debt securities	NDTF debt securities	1,298		323		975		—

Derivative assets	Derivative assets	330		—		330		—
Derivative assets
Derivative assets
Total assets	Total assets	5,112		3,765		1,305		42
Derivative liabilities	Derivative liabilities	(127)		—		(127)		—
Net assets	Net 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.


		September 30, 2023						December 31, 2022
		March 31, 2024
		March 31, 2024
		March 31, 2024
(in millions)
(in millions)
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	101	$	101	$	—	$	98	$	98	$	—
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securities
NDTF equity securities
NDTF equity securities	NDTF equity securities	2,763		2,763		—		2,504		2,504		—
NDTF debt securities	NDTF debt securities	1,240		435		805		1,252		457		795
NDTF debt securities
NDTF debt securities
Other debt securities
Other debt securities
Other debt securities	Other debt securities	23		—		23		25		—		25
Other cash and cash equivalents	Other cash and cash equivalents	8		8		—		11		11		—
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assets	Derivative assets	196		—		196		248		—		248
Derivative assets
Derivative assets
Total assets
Total assets
Total assets	Total assets	4,331		3,307		1,024		4,138		3,070		1,068

Derivative liabilities	Derivative liabilities	(137)		—		(137)		(66)		—		(66)

Derivative liabilities

Derivative liabilities
Net assets	Net assets	$	4,194	$	3,307	$	887	$	4,072	$	3,070	$	1,002
Net assets
Net assets

7571


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY PROGRESS

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.


		September 30, 2023						December 31, 2022
		March 31, 2024
		March 31, 2024
		March 31, 2024
(in millions)
(in millions)
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	62	$	62	$	—	$	56	$	56	$	—
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securities	NDTF equity securities	2,663		2,663		—		2,411		2,411		—
NDTF equity securities
NDTF equity securities
NDTF debt securities
NDTF debt securities
NDTF debt securities	NDTF debt securities	971		226		745		963		225		738

Other cash and cash equivalents	Other cash and cash equivalents	4		4		—		9		9		—

Other cash and cash equivalents

Other cash and cash equivalents
Derivative assets
Derivative assets
Derivative assets	Derivative assets	79		—		79		230		—		230
Total assets	Total assets	3,779		2,955		824		3,669		2,701		968
Total assets
Total assets
Derivative liabilities
Derivative liabilities
Derivative liabilities	Derivative liabilities	(137)		—		(137)		(48)		—		(48)
Net assets	Net assets	$	3,642	$	2,955	$	687	$	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.


		September 30, 2023						December 31, 2022
		March 31, 2024
		March 31, 2024
		March 31, 2024
(in millions)
(in millions)
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	39	$	39	$	—	$	42	$	42	$	—
NDTF cash and cash equivalents
NDTF cash and cash equivalents
NDTF equity securities
NDTF equity securities
NDTF equity securities	NDTF equity securities	100		100		—		93		93		—
NDTF debt securities	NDTF debt securities	269		209		60		289		232		57
NDTF debt securities
NDTF debt securities
Other debt securities
Other debt securities
Other debt securities	Other debt securities	23		—		23		25		—		25
Other cash and cash equivalents	Other cash and cash equivalents	1		1		—		1		1		—
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assets	Derivative assets	117		—		117		17		—		17
Derivative assets
Derivative assets
Total assets
Total assets
Total assets	Total assets	549		349		200		467		368		99

Derivative liabilities	Derivative liabilities	—		—		—		(19)		—		(19)

Derivative liabilities

Derivative liabilities
Net assets	Net assets	$	549	$	349	$	200	$	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 ~~September 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.


		September 30, 2023								December 31, 2022
		March 31, 2024
		March 31, 2024
		March 31, 2024
(in millions)
(in millions)
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3
Other equity securities	Other equity securities	$	88	$	88	$	—	$	—	$	79	$	79	$	—	$	—
Other equity securities
Other equity securities
Other debt securities
Other debt securities
Other debt securities	Other debt securities	59		—		59		—		60		—		60		—
Other cash and cash equivalents	Other cash and cash equivalents	3		3		—		—		1		1		—		—
Other cash and cash equivalents
Other cash and cash equivalents
Derivative assets
Derivative assets
Derivative assets	Derivative assets	55		1		27		27		110		—		81		29
Total assets	Total assets	205		92		86		27		250		80		141		29
Total assets
Total assets
Derivative liabilities
Derivative liabilities
Derivative liabilities	Derivative liabilities	(4)		(4)		—		—		(16)		(16)		—		—
Net assets	Net assets	$	201	$	88	$	86	$	27	$	234	$	64	$	141	$	29
Net assets
Net assets

7672


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.


		Derivatives (net)
		Three Months Ended September 30,					Nine Months Ended September 30,
							Derivatives (net)
							Derivatives (net)
							Derivatives (net)
				Three Months Ended March 31,									Three Months Ended March 31,
(in millions)	(in millions)	2023			2022		2023		2022		(in millions)	2024		2023
Balance at beginning of period	Balance at beginning of period	$	37		$	84	$	29	$	22

Purchases, sales, issuances and settlements:	Purchases, sales, issuances and settlements:
Purchases		—			—		42		74

Purchases, sales, issuances and settlements:

Purchases, sales, issuances and settlements:

Settlements	Settlements	(14)			(20)		(70)		(10)

Total gains (losses) included on the Condensed Consolidated Balance Sheet		4			(8)		26		(30)

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 period	Balance at end of period	$	27		$	56	$	27	$	56

PIEDMONT

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets.


		September 30, 2023						December 31, 2022
		March 31, 2024
		March 31, 2024
		March 31, 2024													December 31, 2023
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2			Total Fair Value		Level 1		Level 2

Derivative assets	Derivative assets	$	1	$	1	$	—		$	—	$	—	$	—

Derivative assets

Derivative assets

Derivative liabilities

Derivative liabilities

Derivative liabilities	Derivative liabilities	(145)		—		(145)			(168)		—		(168)
Net (liabilities) assets	Net (liabilities) assets	$	(144)	$	1	$	(145)		$	(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.

September 30, 2023

Weighted

Fair Value

Average

March 31, 2024

Weighted

Fair Value

Average

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Duke Energy Ohio

FTRs

RTO auction pricing

FTR price – per MWh

0.43

2.07

0.77

Duke Energy Indiana

FTRs

RTO auction pricing

FTR price – per MWh

(1.64)

12.51

1.90

Duke Energy

Total Level 3 derivatives

December 31, 2022

Weighted

Fair Value

Average

December 31, 2023

Weighted

Fair Value

Average

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Duke Energy Ohio

FTRs

RTO auction pricing

FTR price – per MWh

0.89

6.25

3.35

Duke Energy Indiana

FTRs

RTO auction pricing

FTR price – per MWh

0.09

21.79

2.74

Duke Energy

Total Level 3 derivatives

7773


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

OTHER FAIR VALUE DISCLOSURES

The fair value and book value of long-term debt, including current maturities, is summarized in the following table. ~~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.


		September 30, 2023				December 31, 2022
	March 31, 2024												March 31, 2024		December 31, 2023
(in millions)	(in millions)	Book Value		Fair Value		Book Value		Fair Value		(in millions)	Book Value	Fair Value		Book Value		Fair Value
Duke Energy(a)	Duke Energy(a)	$	75,387	$	65,070	$	69,751	$	61,986
Duke Energy Carolinas	Duke Energy Carolinas	15,995		13,973		14,266		12,943
Progress Energy	Progress Energy	23,281		20,417		22,439		20,467
Duke Energy Progress	Duke Energy Progress	11,718		9,808		11,087		9,689
Duke Energy Florida	Duke Energy Florida	9,920		8,892		9,709		8,991
Duke Energy Ohio	Duke Energy Ohio	3,692		3,264		3,245		2,927
Duke Energy Indiana	Duke Energy Indiana	4,504		3,874		4,307		3,913
Piedmont	Piedmont	3,713		3,123		3,363		2,940

(a)Book value of long-term debt includes ~~$1.1~~$1.1 billion and ~~$1.2~~$1.0 billion at ~~September 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 ~~September 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.

~~13.~~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 ~~nine~~three months ended ~~September 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 ~~facilities~~facility are reflected on the Condensed Consolidated Balance Sheets as Long-Term Debt. Amounts borrowed under the DERF and DEFR credit ~~facility~~facilities are reflected on the Condensed Consolidated Balance Sheets as Current maturities of long-term debt.

The most significant activity that impacts the economic performance of DERF, DEPR and DEFR are the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are considered the primary beneficiaries and consolidate DERF, DEPR and DEFR, respectively, as they make those decisions.

In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings totaling $325 million and terminated the related DEFR credit facility. Additionally, Duke Energy Florida's related restricted receivables outstanding at DEFR at the time of termination totaled $459 million and were transferred back to Duke Energy Florida to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.

Receivables Financing – CRC

CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC ~~buys~~bought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC ~~borrows~~then borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility iswas limited to the amount of qualified receivables sold to CRC, which generally ~~exclude~~excluded receivables past due more than a predetermined number of days and ~~reserves~~reserved 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 ~~receive~~received from the sale of receivables to CRC ~~are~~were 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 ~~may~~would be required by Duke Energy to maintain a minimum equity balance of $3 million.

7874


FINANCIAL STATEMENTS			VARIABLE 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 ~~are~~were funded by Duke Energy. The most significant activities that ~~impact~~impacted the economic performance of CRC ~~are~~were decisions made to manage delinquent receivables. Duke Energy iswas considered the primary beneficiary and ~~consolidates~~consolidated CRC as it ~~makes~~made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana ~~consolidate~~consolidated CRC.

In March 2024, Duke Energy repaid all outstanding CRC borrowings totaling $350 million and terminated the related CRC credit facility. Additionally, Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets.

Receivables Financing – Credit Facilities

The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.

Duke Energy
Duke Energy Duke Energy Duke Energy
Carolinas Progress Florida
(in millions) CRC DERF DEPR DEFR
Expiration date February 2025 January 2025 April 2025 April 2024
Credit facility amount $ 350 $ 500 $ 400 $ 325
Amounts borrowed at September 30, 2023 336 500 400 325
Amounts borrowed at December 31, 2022 350 471 400 250
Restricted Receivables at September 30, 2023 619 1,028 831 758
Restricted Receivables at December 31, 2022 917 928 793 490


	Duke Energy
		Duke Energy		Duke Energy		Duke Energy
		Carolinas		Progress		Florida
(in millions)	CRC	DERF		DEPR		DEFR
Expiration date	(a)	January 2025		April 2025		(b)
Credit facility amount	(a)	$	500	$	400	(b)
Amounts borrowed at March 31, 2024	—	500		400		325
Amounts borrowed at December 31, 2023	312	500		400		325
Restricted Receivables at March 31, 2024	—	997		789		467
Restricted Receivables at December 31, 2023	663	991		833		532

(a) In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related $350 million CRC credit facility.

(b) In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings and terminated the related $325 million DEFR credit facility.

Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance

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)	September 30, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Receivables of VIEs		$	8	$	6

Regulatory Assets: Current
Regulatory Assets: Current
Regulatory Assets: Current	Regulatory Assets: Current	58		55
Current Assets: Other	Current Assets: Other	24		41
Other Noncurrent Assets: Regulatory assets	Other Noncurrent Assets: Regulatory assets	816		826
Current Liabilities: Other	Current Liabilities: Other	2		9
Current maturities of long-term debt	Current maturities of long-term debt	58		56
Long-Term Debt	Long-Term Debt	832		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.


FINANCIAL STATEMENTS			VARIABLE 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.


~~FINANCIAL STATEMENTS~~			~~VARIABLE INTEREST ENTITIES~~

The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.


		September 30, 2023				December 31, 2022
		Duke Energy				Duke Energy
	March 31, 2024													March 31, 2024				December 31, 2023
	Duke Energy												Duke Energy	Duke Energy			Duke Energy	Duke Energy
(in millions)	(in millions)	Carolinas		Progress		Carolinas		Progress		(in millions)	Carolinas	Progress			Carolinas	Progress
Regulatory Assets: Current	Regulatory Assets: Current	$	12	$	39	$	12	$	39
Current Assets: Other	Current Assets: Other	5		16		8		29
Other Noncurrent Assets: Regulatory assets	Other Noncurrent Assets: Regulatory assets	199		653		208		681
Other Noncurrent Assets: Other	Other Noncurrent Assets: Other	1		2		1		2

Current Liabilities: Other	Current Liabilities: Other	1		4		3		8
Current Liabilities: Other
Current Liabilities: Other
Current maturities of long-term debt	Current maturities of long-term debt	11		34		10		34
Long-Term Debt	Long-Term Debt	208		680		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, 2024		December 31, 2023
Inventory	$	470	$	462
Accounts Payable	179		188


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

NON-CONSOLIDATED VIEs

The following tables summarize the impact of non-consolidated VIEs on the Condensed Consolidated Balance Sheets.

September 30, 2023
Duke Energy Duke Duke
Natural Gas Energy Energy
(in millions) Investments Ohio Indiana
Receivables from affiliated companies $ — $ 122 $ 161
Investments in equity method unconsolidated affiliates 61 — —
Other noncurrent assets 43 — —
Total assets $ 104 $ 122 $ 161
Other current liabilities 18 — —
Other noncurrent liabilities 12 — —
Total liabilities $ 30 $ — $ —
Net assets $ 74 $ 122 $ 161


	March 31, 2024
	Duke Energy		Duke		Duke
	Natural Gas		Energy		Energy
(in millions)	Investments		Ohio		Indiana
Receivables from affiliated companies	$	—	$	—	$	—

Investments in equity method unconsolidated affiliates	63		—		—
Other noncurrent assets	30		—		—
Total assets	$	93	$	—	$	—

Other current liabilities	1		—		—

Other noncurrent liabilities	6		—		—
Total liabilities	$	7	$	—	$	—
Net assets	$	86	$	—	$	—


		December 31, 2022
		Duke Energy		Duke		Duke
		Natural Gas		Energy		Energy
		December 31, 2023
		December 31, 2023
		December 31, 2023
	Duke Energy									Duke Energy		Duke		Duke
	Natural Gas									Natural Gas		Energy		Energy
(in millions)	(in millions)	Investments		Ohio		Indiana		(in millions)	Investments		Ohio		Indiana
Receivables from affiliated companies	Receivables from affiliated companies	$	—	$	198	$	317

Investments in equity method unconsolidated affiliates
Investments in equity method unconsolidated affiliates
Investments in equity method unconsolidated affiliates	Investments in equity method unconsolidated affiliates	43		—		—
Other noncurrent assets	Other noncurrent assets	45		—		—
Total assets	Total assets	$	88	$	198	$	317

Other current liabilities	Other current liabilities	59		—		—
Other current liabilities
Other current liabilities

Other noncurrent liabilities	Other noncurrent liabilities	47		—		—
Other noncurrent liabilities
Other noncurrent liabilities
Total liabilities	Total 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. These~~CRC 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 Ohio				Duke Energy Indiana
(in millions)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Receivables sold	$	—	$	361	$	—	$	351
Less: Retained interests	—		150		—		208
Net receivables sold	$	—	$	211	$	—	$	143

8077


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

The following table shows ~~the gross and net receivables sold.~~

Duke Energy Ohio Duke Energy Indiana
(in millions) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
Receivables sold $ 334 $ 423 $ 330 $ 508
Less: Retained interests 122 198 161 317
Net receivables sold $ 212 $ 225 $ 169 $ 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 Ohio						Duke Energy Indiana
			Nine Months Ended						Nine Months Ended
			September 30,						September 30,
					Duke Energy Ohio
					Duke Energy Ohio
					Duke Energy Ohio														Duke Energy Indiana
		Three Months Ended															Three Months Ended			Three Months Ended
		March 31,															March 31,			March 31,
(in millions)	(in millions)				2023		2022				2023		2022		(in millions)	2024		2023			2024	2023
Sales	Sales
Receivables sold
Receivables sold
Receivables sold	Receivables sold				$	1,973	$	1,869			$	2,453	$	2,646
Loss recognized on sale	Loss recognized on sale				25		11				29		15
Cash flows	Cash flows
Cash proceeds from receivables sold	Cash proceeds from receivables sold				$	2,024	$	1,757			$	2,580	$	2,465
Collection fees received					1		1				1		1
Cash proceeds from receivables sold
Cash proceeds from receivables sold

Return received on retained interests	Return received on retained interests				15		6				19		9
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.

~~14.~~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 Obligations																							Remaining Performance Obligations
(in millions)	(in millions)	2023		2024		2025		2026		2027		Thereafter		Total		(in millions)	2024	2025	2026	2027	2028	Thereafter	Total

Progress Energy
Progress Energy
Progress Energy	Progress Energy	$	15	$	70	$	7	$	7	$	7	$	36	$	142
Duke Energy Progress	Duke Energy Progress	2		8		—		—		—		—		10
Duke Energy Florida	Duke Energy Florida	13		62		7		7		7		36		132

Duke Energy Indiana	Duke Energy Indiana	4		16		17		15		7		5		64
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) 2023 2024 2025 2026 2027 Thereafter Total
Piedmont $ 17 $ 62 $ 61 $ 51 $ 49 $ 241 $ 481


~~FINANCIAL STATEMENTS~~			~~REVENUE~~


	Remaining Performance Obligations
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total

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.


FINANCIAL STATEMENTS			REVENUE

Disaggregated Revenues

Disaggregated revenues are presented as follows:


		Three Months Ended September 30, 2023
				Duke				Duke
	Three Months Ended March 31, 2024																									Three Months Ended March 31, 2024
			Duke
(in millions)
(in millions)
(in millions)	(in millions)	Duke		Energy		Progress		Energy
By market or type of customer	By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
By market or type of customer
By market or type of customer																		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Electric Utilities and Infrastructure	Electric Utilities and Infrastructure
Residential
Residential
Residential	Residential	$	3,602	$	988	$	2,043	$	756	$	1,287	$	268	$	303	$	—
General	General	2,229		779		1,089		467		622		135		224		—
Industrial	Industrial	912		395		298		203		95		28		190		—
Wholesale	Wholesale	647		141		422		364		58		12		71		—
Other revenues	Other revenues	285		75		175		100		75		24		56		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	Total Electric Utilities and Infrastructure revenue from contracts with customers	$	7,675	$	2,378	$	4,027	$	1,890	$	2,137	$	467	$	844	$	—

Gas Utilities and Infrastructure	Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Residential
Residential
Residential	Residential	$	152	$	—	$	—	$	—	$	—	$	73	$	—	$	80
Commercial	Commercial	88		—		—		—		—		24		—		65
Industrial	Industrial	26		—		—		—		—		4		—		23
Power Generation	Power Generation	—		—		—		—		—		—		—		23
Other revenues	Other revenues	28		—		—		—		—		4		—		8
Total Gas Utilities and Infrastructure revenue from contracts with customers	Total Gas Utilities and Infrastructure revenue from contracts with customers	$	294	$	—	$	—	$	—	$	—	$	105	$	—	$	199

Other	Other
Other
Other
Revenue from contracts with customers
Revenue from contracts with customers
Revenue from contracts with customers	Revenue from contracts with customers	$	8	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	Total revenue from contracts with customers	$	7,977	$	2,378	$	4,027	$	1,890	$	2,137	$	572	$	844	$	199

Other revenue sources(a)	Other revenue sources(a)	$	17	$	15	$	28	$	(4)	$	27	$	5	$	7	$	9
Other revenue sources(a)
Other revenue sources(a)
Total revenues	Total revenues	$	7,994	$	2,393	$	4,055	$	1,886	$	2,164	$	577	$	851	$	208

8279


FINANCIAL STATEMENTS			REVENUE


		Three Months Ended September 30, 2022
				Duke				Duke
	Three Months Ended March 31, 2023																									Three Months Ended March 31, 2023
			Duke
(in millions)
(in millions)
(in millions)	(in millions)	Duke		Energy		Progress		Energy
By market or type of customer	By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
By market or type of customer
By market or type of customer																		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Electric Utilities and Infrastructure	Electric Utilities and Infrastructure
Residential
Residential
Residential	Residential	$	3,250	$	887	$	1,719	$	670	$	1,049	$	249	$	396	$	—
General	General	2,077		686		947		419		528		150		291		—
Industrial	Industrial	986		366		298		216		82		62		260		—
Wholesale	Wholesale	874		140		588		403		185		32		115		—
Other revenues	Other revenues	248		105		317		259		58		15		19		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	Total Electric Utilities and Infrastructure revenue from contracts with customers	$	7,435	$	2,184	$	3,869	$	1,967	$	1,902	$	508	$	1,081	$	—

Gas Utilities and Infrastructure	Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure
Residential
Residential
Residential	Residential	$	167	$	—	$	—	$	—	$	—	$	88	$	—	$	79
Commercial	Commercial	108		—		—		—		—		26		—		82
Industrial	Industrial	34		—		—		—		—		4		—		30
Power Generation	Power Generation	—		—		—		—		—		—		—		24
Other revenues	Other revenues	103		—		—		—		—		4		—		83
Total Gas Utilities and Infrastructure revenue from contracts with customers	Total Gas Utilities and Infrastructure revenue from contracts with customers	$	412	$	—	$	—	$	—	$	—	$	122	$	—	$	298

Other	Other
Other
Other
Revenue from contracts with customers
Revenue from contracts with customers
Revenue from contracts with customers	Revenue from contracts with customers	$	6	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	Total revenue from contracts with customers	$	7,853	$	2,184	$	3,869	$	1,967	$	1,902	$	630	$	1,081	$	298

Other revenue sources(a)	Other revenue sources(a)	$	(11)	$	(9)	$	12	$	2	$	5	$	(2)	$	14	$	8
Other revenue sources(a)
Other revenue sources(a)
Total revenues	Total revenues	$	7,842	$	2,175	$	3,881	$	1,969	$	1,907	$	628	$	1,095	$	306

(a)Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.


~~FINANCIAL STATEMENTS~~			~~REVENUE~~

Nine Months Ended September 30, 2023
Duke Duke Duke Duke Duke
(in millions) Duke Energy Progress Energy Energy Energy Energy
By market or type of customer Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Electric Utilities and Infrastructure
   Residential $ 9,193 $ 2,527 $ 5,019 $ 1,902 $ 3,117 $ 710 $ 937 $ —
   General 5,936 1,974 2,844 1,194 1,650 411 706 —
   Industrial 2,630 1,011 844 560 284 155 618 —
   Wholesale 1,695 402 1,064 942 122 33 195 —
   Other revenues 618 202 440 238 202 73 103 —
Total Electric Utilities and Infrastructure revenue from contracts with customers $ 20,072 $ 6,116 $ 10,211 $ 4,836 $ 5,375 $ 1,382 $ 2,559 $ —
Gas Utilities and Infrastructure
   Residential $ 838 $ — $ — $ — $ — $ 317 $ — $ 522
   Commercial 421 — — — — 113 — 309
   Industrial 103 — — — — 19 — 84
   Power Generation — — — — — — — 69
   Other revenues 93 — — — — 15 — 32
Total Gas Utilities and Infrastructure revenue from contracts with customers $ 1,455 $ — $ — $ — $ — $ 464 $ — $ 1,016
Other
Revenue from contracts with customers $ 24 $ — $ — $ — $ — $ — $ — $ —
Total Revenue from contracts with customers $ 21,551 $ 6,116 $ 10,211 $ 4,836 $ 5,375 $ 1,846 $ 2,559 $ 1,016
Other revenue sources(a)
$ 297 $ 39 $ 104 $ 8 $ 81 $ 29 $ 47 $ 103
Total revenues $ 21,848 $ 6,155 $ 10,315 $ 4,844 $ 5,456 $ 1,875 $ 2,606 $ 1,119

~~(a)~~Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.


~~FINANCIAL STATEMENTS~~			~~REVENUE~~

Nine Months Ended September 30, 2022
Duke Duke Duke Duke Duke
(in millions) Duke Energy Progress Energy Energy Energy Energy
By market or type of customer Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Electric Utilities and Infrastructure
   Residential $ 8,642 $ 2,454 $ 4,487 $ 1,824 $ 2,663 $ 656 $ 1,046 $ —
   General 5,498 1,796 2,562 1,114 1,448 377 760 —
   Industrial 2,582 938 842 594 248 130 672 —
   Wholesale 2,129 356 1,388 1,033 355 90 296 —
   Other revenues 652 308 775 608 167 56 6 —
Total Electric Utilities and Infrastructure revenue from contracts with customers $ 19,503 $ 5,852 $ 10,054 $ 5,173 $ 4,881 $ 1,309 $ 2,780 $ —
Gas Utilities and Infrastructure
   Residential $ 936 $ — $ — $ — $ — $ 331 $ — $ 605
   Commercial 504 — — — — 128 — 376
   Industrial 125 — — — — 17 — 108
   Power Generation — — — — — — — 71
   Other revenues 284 — — — — 16 — 220
Total Gas Utilities and Infrastructure revenue from contracts with customers $ 1,849 $ — $ — $ — $ — $ 492 $ — $ 1,380
Other
Revenue from contracts with customers $ 21 $ — $ — $ — $ — $ — $ — $ —
Total Revenue from contracts with customers $ 21,373 $ 5,852 $ 10,054 $ 5,173 $ 4,881 $ 1,801 $ 2,780 $ 1,380
Other revenue sources(a)
$ 44 $ (8) $ 33 $ 9 $ 9 $ 10 $ 55 $ 41
Total revenues $ 21,417 $ 5,844 $ 10,087 $ 5,182 $ 4,890 $ 1,811 $ 2,835 $ 1,421


~~FINANCIAL STATEMENTS~~			~~REVENUE~~

The following table presents the reserve for credit losses for trade and other receivables.


		Three Months Ended September 30, 2022 and 2023
				Duke				Duke
		Duke		Energy		Progress		Energy
(in millions)		Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at June 30, 2022		$	135	$	52	$	52	$	31	$	21	$	4	$	3	$	15
Write-Offs		(49)		(19)		(26)		(11)		(15)		—		—		(4)
Credit Loss Expense		37		10		20		5		15		2		1		3
Other Adjustments		51		19		21		16		5		—		—		—
Balance at September 30, 2022		$	174	$	62	$	67	$	41	$	26	$	6	$	4	$	14

Balance at June 30, 2023		$	199	$	57	$	73	$	43	$	30	$	8	$	4	$	13
Write-Offs		(36)		(14)		(20)		(11)		(8)		—		—		(5)
Credit Loss Expense		23		5		15		2		13		—		1		2
Other Adjustments		17		8		9		10		(1)		—		—		—
Balance at September 30, 2023		$	203	$	56	$	77	$	44	$	34	$	8	$	5	$	10

		Nine Months Ended September 30, 2022 and 2023
				Duke				Duke
		Duke		Energy		Progress		Energy

		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)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at December 31, 2021		$	121	$	42	$	36	$	21	$	16	$	4	$	3	$	15
(in millions)
(in millions)																		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Balance at December 31, 2022

Write-Offs
Write-Offs
Write-Offs	Write-Offs	(103)		(44)		(45)		(18)		(28)		—		—		(10)
Credit Loss Expense	Credit Loss Expense	81		23		39		11		28		2		1		9
Other Adjustments	Other Adjustments	75		41		37		27		10		—		—		—
Balance at September 30, 2022		$	174	$	62	$	67	$	41	$	26	$	6	$	4	$	14
Balance at March 31, 2023

Balance at December 31, 2022		$	216	$	68	$	81	$	44	$	36	$	6	$	4	$	14
Balance at December 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023
Write-Offs	Write-Offs	(121)		(54)		(60)		(30)		(28)		—		—		(11)
Credit Loss Expense	Credit Loss Expense	62		18		33		7		26		2		1		7
Other Adjustments	Other Adjustments	46		24		23		23		—		—		—		—
Balance at September 30, 2023		$	203	$	56	$	77	$	44	$	34	$	8	$	5	$	10
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.


FINANCIAL STATEMENTS			REVENUE

The aging of trade receivables is presented in the table below.


		September 30, 2023
				Duke				Duke
		Duke		Energy		Progress		Energy
	March 31, 2024																									March 31, 2024
			Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Unbilled Revenue(a)(b)	Unbilled Revenue(a)(b)	$	977	$	356	$	333	$	206	$	127	$	2	$	27	$	8
Current	Current	2,538		795		1,233		658		573		55		54		83
1-31 days past due	1-31 days past due	258		71		121		44		77		5		10		5
31-61 days past due	31-61 days past due	114		31		57		38		19		2		5		5
61-91 days past due	61-91 days past due	53		19		21		7		14		1		2		3
91+ days past due	91+ days past due	234		60		71		24		47		37		24		5
Deferred Payment Arrangements(c)	Deferred Payment Arrangements(c)	104		31		50		27		23		3		—		—
Trade and Other Receivables	Trade and Other Receivables	$	4,278	$	1,363	$	1,886	$	1,004	$	880	$	105	$	122	$	109


~~FINANCIAL STATEMENTS~~			~~REVENUE~~


		December 31, 2022
				Duke				Duke
		Duke		Energy		Progress		Energy
	December 31, 2023																									December 31, 2023
			Duke
		Duke
		Duke
		Duke
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unbilled Revenue(a)(b)		$	1,457	$	486	$	355	$	232	$	123	$	20	$	28	$	160
(in millions)
(in millions)																		Energy	Carolinas	Energy	Progress	Florida	Ohio	Indiana	Piedmont
Unbilled Revenue(a)(d)
Current	Current	2,347		577		1,059		637		417		15		52		265
1-31 days past due	1-31 days past due	261		96		60		15		45		5		17		15
31-61 days past due	31-61 days past due	123		23		61		49		12		6		2		3
61-91 days past due	61-91 days past due	74		25		18		9		9		3		11		2
91+ days past due	91+ days past due	209		70		74		27		47		26		6		4
Deferred Payment Arrangements(c)	Deferred Payment Arrangements(c)	160		57		62		35		27		4		—		1
Trade and Other Receivables	Trade 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 reflected~~Receivables on the Condensed Consolidated Balance ~~Sheets of Duke Energy Ohio and Duke Energy Indiana.~~Sheets. See Note 1312 for further information. These receivables for unbilled revenues are $95 million and $156 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of September 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.

~~15.~~

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.

8781


FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

The following table presents Duke Energy’s basic and diluted EPS calculations, the weighted average number of common shares outstanding and common and preferred share dividends declared.


		Three Months Ended September 30,				Nine Months Ended September 30,
				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)	2023		2022		2023		2022		(in millions, except per share amounts)	2024	2023
Net Income available to Duke Energy common stockholders	Net Income available to Duke Energy common stockholders	$	1,213	$	1,383	$	1,744	$	3,094
Less: (Loss) Income from discontinued operations attributable to Duke Energy common stockholders		(190)		23		(1,283)		62
Less: Loss from discontinued operations attributable to Duke Energy common stockholders
Accumulated preferred stock dividends adjustment	Accumulated preferred stock dividends adjustment	12		12		12		12
Less: Impact of participating securities	Less: Impact of participating securities	2		1		4		2
Income from continuing operations available to Duke Energy common stockholders	Income from continuing operations available to Duke Energy common stockholders	$	1,413	$	1,371	$	3,035	$	3,042

(Loss) Income from discontinued operations, net of tax		$	(152)	$	3	$	(1,316)	$	(30)
Add: (Income) Loss attributable to NCI		(38)		20		33		92
(Loss) Income from discontinued operations attributable to Duke Energy common stockholders		$	(190)	$	23	$	(1,283)	$	62
Loss from discontinued operations, net of tax
Loss from discontinued operations, net of tax
Loss from discontinued operations, net of tax
Add: Loss attributable to NCI
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 diluted	Weighted average common shares outstanding – basic and diluted	771		770		771		770

EPS 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

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)	$	1.83	$	1.78	$	3.94	$	3.95

(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)	$	(0.24)	$	0.03	$	(1.67)	$	0.08
Potentially dilutive items excluded from the calculation(b)	Potentially dilutive items excluded from the calculation(b)	2		2		2		2
Dividends declared per common share	Dividends declared per common share	$	1.025	$	1.005	$	3.035	$	2.975
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	$	1.078	$	1.078
Dividends declared on Series B preferred stock per share(d)	Dividends declared on Series B preferred stock per share(d)	$	24.375	$	24.375	$	48.750	$	48.750

(a)For the periods presented subsequent to issuance in April 2023, the convertible notes were excluded from the calculations of diluted EPS because the effect was antidilutive.

(b)Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.

(c)5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation preference per depositary share.

(d)4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends 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

~~16.~~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.

~~The following table includes information related to the Duke Energy Registrants' contributions to its qualified defined benefit pension plans.~~

Nine Months Ended September 30, 2023 and 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Contributions made:
2023 $ 100 $ 26 $ 22 $ 13 $ 9 $ 5 $ 8 $ 3
2022 $ 58 $ 15 $ 13 $ 8 $ 5 $ 3 $ 5 $ 2

8882


FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

QUALIFIED PENSION PLANS

The following tables include the components of net periodic pension costs for qualified pension plans.


		Three Months Ended September 30, 2023
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
	Three Months Ended March 31, 2024																								Three Months Ended March 31, 2024
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		Energy	Carolinas	Energy	Progress	Florida	Ohio		Indiana	Piedmont
Service cost	Service cost	$	28		$	9	$	9	$	5	$	3	$	1	$	1	$	1
Interest cost on projected benefit obligation	Interest cost on projected benefit obligation	86			21		26		12		14		4		6		2
Expected return on plan assets	Expected return on plan assets	(147)			(40)		(50)		(24)		(26)		(6)		(10)		(5)
Amortization of actuarial loss	Amortization of actuarial loss	2			—		1		—		1		—		1		—
Amortization of prior service credit	Amortization of prior service credit	(3)			—		—		—		—		—		—		(1)
Amortization of settlement charges	Amortization of settlement charges	5			3		1		1		—		—		—		1
Net periodic pension costs	Net periodic pension costs	$	(29)		$	(7)	$	(13)	$	(6)	$	(8)	$	(1)	$	(2)	$	(2)

Three Months Ended September 30, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Service cost $ 39 $ 12 $ 11 $ 6 $ 4 $ 1 $ 3 $ 1
Interest cost on projected benefit obligation 58 14 19 9 10 3 4 2
Expected return on plan assets (140) (38) (46) (22) (24) (6) (9) (6)
Amortization of actuarial loss 24 5 6 3 3 2 3 2
Amortization of prior service credit (5) (1) — — — — — (2)
Amortization of settlement charges 14 3 5 4 1 2 1 2
Net periodic pension costs $ (10) $ (5) $ (5) $ — $ (6) $ 2 $ 2 $ (1)

Nine Months Ended September 30, 2023
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Service cost $ 87 $ 28 $ 25 $ 15 $ 10 $ 2 $ 4 $ 3
Interest cost on projected benefit obligation 258 63 80 37 43 13 20 7
Expected return on plan assets (441) (120) (149) (70) (78) (18) (30) (15)
Amortization of actuarial loss 7 1 3 1 2 — 2 —
Amortization of prior service credit (10) — — — — — (1) (5)
Amortization of settlement charges 14 7 3 3 1 — 1 3
Net periodic pension costs $ (85) $ (21) $ (38) $ (14) $ (22) $ (3) $ (4) $ (7)


		Nine Months Ended September 30, 2022
					Duke				Duke		Duke		Duke		Duke
		Duke			Energy		Progress		Energy		Energy		Energy		Energy
	Three Months Ended March 31, 2023																								Three Months Ended March 31, 2023
				Duke
		Duke
		Duke
		Duke
(in millions)
(in millions)
(in millions)	(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		Energy	Carolinas	Energy	Progress	Florida	Ohio		Indiana	Piedmont
Service cost	Service cost	$	120		$	38	$	34	$	20	$	14	$	3	$	7	$	4
Interest cost on projected benefit obligation	Interest cost on projected benefit obligation	175			41		55		25		30		9		14		6
Expected return on plan assets	Expected return on plan assets	(421)			(114)		(139)		(66)		(72)		(17)		(28)		(18)
Amortization of actuarial loss	Amortization of actuarial loss	71			15		19		10		9		4		8		5
Amortization of prior service credit	Amortization of prior service credit	(14)			(3)		—		—		—		—		(1)		(6)
Amortization of settlement charges	Amortization of settlement charges	18			6		6		5		1		2		1		2
Net periodic pension costs	Net periodic pension costs	$	(51)		$	(17)	$	(25)	$	(6)	$	(18)	$	1	$	1	$	(7)

NON-QUALIFIED PENSION PLANS

Net periodic pension costs for non-qualified pension plans were not material for the three ~~and nine~~ months ended ~~September 30, 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 nine~~ months ended ~~September 30, 2023,~~March 31, 2024, and ~~2022.~~

2023.


~~FINANCIAL STATEMENTS~~			~~INCOME TAXES~~

~~17.~~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 Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Duke Energy 2.8 % 10.1 % 9.0 % 8.6 %
Duke Energy Carolinas 4.9 % 5.2 % 8.0 % 6.3 %
Progress Energy 15.7 % 15.8 % 16.2 % 16.2 %
Duke Energy Progress 11.8 % 12.9 % 13.0 % 13.4 %
Duke Energy Florida 20.8 % 18.4 % 20.3 % 19.4 %
Duke Energy Ohio 14.9 % 14.2 % 15.8 % (14.6) %
Duke Energy Indiana 18.5 % 16.8 % 17.8 % 0.5 %
Piedmont 26.3 % 21.4 % 17.2 % 9.1 %

The decrease in the ETR for Duke Energy for the three months ended September 30, 2023, was primarily due to benefits associated with ongoing tax efficiency efforts, partially offset by a decrease in the amortization of excess deferred taxes. During the third quarter of 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment of approximately $120 million.

~~The increase in the ETR for Duke Energy Carolinas for the nine months ended September 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes.~~

~~The decrease in the ETR for Duke Energy Progress for the three months ending September 30, 2023, was primarily due to the amortization of excess deferred taxes in relation to lower pretax income.~~

The increase in the ETR for Duke Energy Florida for the three months ending September 30, 2023, was primarily due to a decrease in the amortization of excess deferred taxes, partially offset by an increase in production tax credits.

The increase in the ETR for Duke Energy Ohio for the nine months ended September 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.

~~The increase in the ETR for Duke Energy Indiana for the three months ended September 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 Indiana for the nine months ended September 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.


	Three Months Ended
	March 31,
		2024		2023
Duke Energy		13.4	%	13.8	%
Duke Energy Carolinas		11.5	%	11.4	%
Progress Energy		16.5	%	16.7	%
Duke Energy Progress		15.0	%	14.6	%
Duke Energy Florida		19.4	%	19.9	%
Duke Energy Ohio		16.8	%	16.7	%
Duke Energy Indiana		17.3	%	17.2	%
Piedmont		19.6	%	17.7	%

The increase in the ETR for Piedmont for the three months ended ~~September 30, 2023, was primarily due to the amortization of excess deferred taxes in relation to lower pretax losses.~~

~~The increase in the ETR for Piedmont for the nine months ended September 30, 2023,~~March 31, 2024, was primarily due to a decrease in the amortization of ~~excess deferred taxes.~~EDIT.

~~18.~~


FINANCIAL STATEMENTS			SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS

For information on subsequent events related to ~~dispositions,~~ regulatory matters, commitments and contingencies, ~~and~~ debt and credit facilities, derivatives, and variable interest entities see Notes 2, 4, 5, 6, 9, and 6,12, respectively.

9084


MD&A			DUKE ENERGY

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

DUKE ENERGY

Duke Energy is an energy company headquartered in Charlotte, North Carolina. Duke Energy operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated financial information, it necessarily includes the results of the Subsidiary Registrants, which along with Duke Energy are collectively referred to as the Duke Energy Registrants.

Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the ~~nine~~three months ended ~~September 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 ~~nine~~three months ended ~~September 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 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 closed in October 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 operating~~filed for CPCNs for new generation facilities at the ~~largest~~sites 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 ~~system~~energy 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 ~~substation~~Carolinas and ~~will be used to serve all~~ Duke Energy Progress ~~customers. As part~~North 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 systems~~up 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 cost pressures, primarily related to rising interest rates. These cost reductions are primarily focused on corporate and support areas, and remain on track.solar plus battery system.


~~MD&A~~			~~DUKE ENERGY~~

Regulatory Activity. During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, we continued to ~~monitor developments while moving~~move our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.

•~~HB 951 provides~~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 2025, once its current base rate settlement agreement concludes at the ~~framework~~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 ~~many~~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 ~~benefits~~IURC requesting an overall increase in revenues of ~~modernized regulatory constructs~~$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 ~~under the direction of the NCUC including PBR~~since 2021 and ~~MYRP.~~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 ~~filed its~~issued $177 million of storm recovery bonds, our first ~~rate case utilizing these benefits, including both PBR and MYRP, in North Carolina in October~~issuance under South Carolina's 2022 ~~and reached partial settlements~~securitization legislation, which provided the necessary framework for us to lower the bill impacts on ~~key matters in April and May 2023. In~~ August 2023, the NCUC issued a constructive order approving these partial settlements and Duke Energy Progress' PBR Application with certain modifications, marking the first implementation of an MYRP under the performance-based regulations authorized by HB 951 in North Carolina. Duke Energy Progress implemented revised Year 1 rates and residential decoupling on October 1, 2023.our customers related to critical storm restoration activities.

•In January ~~2023,~~2024, Duke Energy Carolinas filed a rate case in North Carolina that also incorporated elements of PBR and MYRP as allowed under HB 951. In August 2023, we reached partial settlements on key matters with the Public Staff, subject to the approval of the NCUC. We expect an order from the NCUC on the Duke Energy Carolinas rate case in the fourth quarter of this year.

•In the Midwest, we received a constructive order on our Duke Energy Kentucky electric rate case in October 2023. In August 2023, the PUCO approved recovery and true up of certain historical energy efficiency program costs in Ohio, with new rates effective September 1, 2023.

•In August 2023, we filed new resource plans in North Carolina and South Carolina. Between economic development success, population growth and increased adoption of electric vehicles, energy use by Duke Energy customers in the Carolinas is projected to grow by around 35,000 GWh over the next 15 years – more than the annual electric generation of Delaware, Maine and New Hampshire combined. These plans advance our energy transition while prioritizing reliability and affordability.

•~~In February 2023, the PSCSC approved a constructive comprehensive settlement with all parties in the Duke Energy Progress~~ South Carolina rate case ~~and~~requesting an overall increase in revenues of approximately $323 million, prior to proposed mitigation efforts including the acceleration of the return of certain EDIT balances. This is the first base rate case filed by Duke Energy ~~Progress implemented new customer rates effective April 1, 2023. We also made progress on our~~Carolinas in the state since 2018 and reflects the South Carolina ~~storm securitization filings, completing our petition for a financing order with the PSCSC in May 2023. The PSCSC approved a comprehensive settlement in September 2023~~retail allocation of significant investments, including approximately $1.5 billion of transmission and ~~issued its financing order in October 2023.~~

•~~In February 2023, the Indiana Court of Appeals issued an opinion finding~~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.~~

•As it relates to our natural gas businesses, in Duke Energy Ohio, we filed a stipulation on key matters in our base rate case with all parties except the OCC in April 2023. We received an order approving the stipulation in November 2023. In September 2023, the TPUC approved a settlement related to our Annual Review Mechanism in Tennessee, with adjusted rates effective October 1, 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.


MD&A			MATTERS 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) rule~~CCR Rule to identify the coal ash basin sites impacted and has assessed the amounts of coal ash subject to the rule and ~~a method~~established methods of compliance. Interpretation of the requirements of the CCR ~~rule~~Rule 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 ~~$1.7~~approximately $1.9 billion of deferred fuel costs in ~~2023, and expects deferred fuel balances to be back~~2024.We anticipate being in line with our historical ~~norms~~average balance of deferred fuel costs by the end of ~~2024.~~this year.

~~Commercial Renewables~~Environmental 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 sell~~is reviewing these final rules and analyzing the ~~Commercial Renewables Disposal Groups. The Commercial Renewables Disposal Groups were classified as held~~potential impacts they could have on the Company, which could be material. Cost recovery for ~~sale~~future expenditures will be pursued through the normal ratemaking process with federal and ~~as discontinued operations in the fourth quarter~~state utility commissions, which permit recovery of ~~2022.~~necessary and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy ~~entered into purchase and sale agreements with affiliates of Brookfield in June 2023 for~~is evaluating potential legal challenges to the ~~sale of the utility-scale solar and wind group and with affiliates of ArcLight in July 2023 for the distributed generation group. Both transactions closed in October 2023 and~~ ~~proceeds from the sales are expected to be used for debt avoidance. Duke Energy expects to complete the disposition of the remaining assets by early 2024.~~final rules. For more information, see ~~Note 2 to the Condensed Consolidated Financial Statements, "Dispositions."~~


~~MD&A~~			~~MATTERS IMPACTING FUTURE RESULTS~~

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 begun to dismiss Duke Energy (parent) from these lawsuits and have represented to the court that they will dismiss Duke Energy (Parent) from all such cases. The legal actions related to project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. For more information, see Note 5 to the Condensed Consolidated Financial Statements, "Commitments and Contingencies."Other Matters."

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 described in Note 8 to the Condensed Consolidated Financial Statements, "Goodwill."~~2023. As of ~~August 31, 2023,~~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 ~~third quarter of 2023,~~potential for continued ~~rising~~ interest ~~rates,~~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. ~~The carrying value of goodwill within GU&I for Duke Energy Ohio was approximately $324 million as of September 30, 2023.~~

Other

Duke Energy ~~is monitoring~~continues to monitor general market conditions, including the potential for continued ~~rising~~ interest ~~rates, and evaluating~~rate 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.

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:~~

•~~For 2022, Regulatory Matters~~Discontinued operations primarily represents the ~~net impact of~~ ~~charges~~operating results and impairments recognized related to the ~~2022 Indiana Supreme Court ruling on coal ash, and~~sale of the Commercial Renewables business disposal group.


MD&A			DUKE ENERGY

Three Months Ended March 31, 2024, as compared to March 31, 2023

GAAP reported EPS was $1.44 for ~~2023, it~~the first quarter of 2024 compared to $1.01 in the first quarter of 2023. In addition to the drivers below, GAAP reported EPS increased primarily ~~represents impairment charges related~~due to ~~Duke Energy Carolinas' North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order.~~

~~Discontinued operations primarily includes the~~ impairments on the sale of the Commercial Renewables business in the ~~current year and results from Duke Energy's Commercial Renewables Disposal Groups.~~prior year.

~~Three Months Ended September 30, 2023, as compared to September 30, 2022~~

GAAP reported EPS was $1.59 for the third quarter of 2023 compared to $1.81 in the third quarter of 2022. In addition to the drivers below, GAAP reported EPS decreased primarily due to impairments on the sale of the Commercial Renewables business.

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s ~~third~~first quarter ~~2023~~2024 adjusted EPS was ~~$1.94~~$1.44 compared to ~~$1.78~~$1.20 for the ~~third~~first quarter of ~~2022.~~2023. The increase in adjusted EPSEPS was primarily due to ~~ongoing tax efficiency efforts,~~improved weather and favorable rate case impacts along with growth from riders and other margin, ~~rate case impacts and favorable weather,~~ partially offset by higher interest ~~expense and lower volumes.~~


~~MD&A~~			~~DUKE ENERGY~~

expense.

The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.


		Three Months Ended September 30,									Three Months Ended March 31,
		2023				2022
	2024												2024		2023
(in millions, except per share amounts)	(in millions, except per share amounts)	Earnings		EPS		Earnings		EPS		(in millions, except per share amounts)	Earnings	EPS		Earnings		EPS

GAAP Reported Earnings/GAAP Reported EPS
GAAP Reported Earnings/GAAP Reported EPS
GAAP Reported Earnings/GAAP Reported EPS	GAAP Reported Earnings/GAAP Reported EPS	$	1,213	$	1.59	$	1,383	$	1.81
Adjustments:	Adjustments:

Regulatory Matters(a)		84		0.11		—		—

Discontinued Operations(b)		190		0.24		(22)		(0.03)

Discontinued Operations(a)

Discontinued Operations(a)

Discontinued Operations(a)
Adjusted Earnings/Adjusted EPS	Adjusted Earnings/Adjusted EPS	$	1,487	$	1.94	$	1,361	$	1.78

(a)~~Net of $27 million tax benefit. $95 within Impairment of assets and other charges and $16 million within Operations, maintenance and other.~~

~~(b)~~Recorded in ~~(Loss) Income~~Loss from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.

~~Nine Months Ended September 30, 2023, as compared to September 30, 2022~~

GAAP Reported EPS was $2.27 for the nine months ended September 30, 2023, compared to $4.03 for the nine months ended September 30, 2022. In addition to the drivers below, GAAP reported EPS decreased primarily ~~due to impairments 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 $4.05 for the nine months ended September 30, 2023, compared to $4.16 for the nine months ended September 30, 2022. The decrease in adjusted EPS was primarily due to higher interest expense, ~~unfavorable weather and lower volumes, partially offset by growth from riders and other margin, rate case impacts, lower operations and maintenance expense and ongoing tax efficiency efforts.~~

~~The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.~~

Nine Months Ended September 30,
2023 2022
(in millions, except per share amounts) Earnings EPS Earnings EPS
GAAP Reported Earnings/GAAP Reported EPS $ 1,744 $ 2.27 $ 3,094 $ 4.03
Adjustments:
Regulatory Matters(a)
84 0.11 157 0.21
Discontinued Operations(b)
1,283 1.67 (60) (0.08)
Adjusted Earnings/Adjusted EPS $ 3,111 $ 4.05 $ 3,191 $ 4.16

~~(a)In 2023, net of $27 million tax benefit. $95 within Impairment of assets and other charges and $16 million within Operations, maintenance and other. In 2022,~~ 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) Income from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.~~

SEGMENT RESULTS

The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.

Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.

Electric Utilities and Infrastructure


	Three Months Ended March 31,
(in millions)		2024		2023		Variance
Operating Revenues		$	6,803	$	6,398	$	405
Operating Expenses
Fuel used in electric generation and purchased power		2,355		2,396		(41)
Operation, maintenance and other		1,316		1,269		47
Depreciation and amortization		1,225		1,096		129
Property and other taxes		337		348		(11)
Impairment of assets and other charges		1		7		(6)
Total operating expenses		5,234		5,116		118
Gains on Sales of Other Assets and Other, net		6		1		5
Operating Income		1,575		1,283		292
Other Income and Expenses, net		131		130		1
Interest Expense		499		452		47
Income Before Income Taxes		1,207		961		246
Income Tax Expense		173		149		24
Less: Income Attributable to Noncontrolling Interest		13		21		(8)
Segment Income		$	1,021	$	791	$	230

Duke Energy Carolinas GWh sales		22,388		20,919		1,469
Duke Energy Progress GWh sales		16,128		15,345		783
Duke Energy Florida GWh sales		8,839		8,990		(151)
Duke Energy Ohio GWh sales		5,780		5,642		138
Duke Energy Indiana GWh sales		7,475		7,350		125
Total Electric Utilities and Infrastructure GWh sales		60,610		58,246		2,364
Net proportional MW capacity in operation		54,504		54,314		190


MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

~~Electric Utilities~~The residential decoupling mechanism adjusts for variations in residential use per customer, including those due to weather and ~~Infrastructure~~

Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2023 2022 Variance 2023 2022 Variance
Operating Revenues $ 7,715 $ 7,439 $ 276 $ 20,363 $ 19,576 $ 787
Operating Expenses
Fuel used in electric generation and purchased power 2,591 2,653 (62) 7,045 6,481 564
Operation, maintenance and other 1,398 1,257 141 4,008 4,011 (3)
Depreciation and amortization 1,209 1,170 39 3,493 3,411 82
Property and other taxes 392 336 56 1,077 1,004 73
Impairment of assets and other charges 88 8 80 100 214 (114)
Total operating expenses 5,678 5,424 254 15,723 15,121 602
Gains on Sales of Other Assets and Other, net 2 7 (5) 30 12 18
Operating Income 2,039 2,022 17 4,670 4,467 203
Other Income and Expenses, net 131 114 17 388 381 7
Interest Expense 468 377 91 1,364 1,144 220
Income Before Income Taxes 1,702 1,759 (57) 3,694 3,704 (10)
Income Tax Expense 224 207 17 531 448 83
Less: Income Attributable to Noncontrolling Interest 31 12 19 75 19 56
Segment Income $ 1,447 $ 1,540 $ (93) $ 3,088 $ 3,237 $ (149)
Duke Energy Carolinas GWh sales 24,810 24,554 256 66,367 69,125 (2,758)
Duke Energy Progress GWh sales 19,704 19,608 96 50,503 54,492 (3,989)
Duke Energy Florida GWh sales 13,665 13,555 110 34,055 35,797 (1,742)
Duke Energy Ohio GWh sales 6,356 7,074 (718) 17,694 18,635 (941)
Duke Energy Indiana GWh sales 8,526 8,934 (408) 22,803 24,528 (1,725)
Total Electric Utilities and Infrastructure GWh sales 73,061 73,725 (664) 191,422 202,577 (11,155)
Net proportional MW capacity in operation 49,906 49,520 386
conservation, and is calculated based on an annual target revenue-per-customer.

Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

EU&I’s ~~lower segment income is due to~~results were driven by higher ~~interest expense~~revenues from rate cases across multiple jurisdictions, improved weather, and higher weather-normal retail sales volumes, partially offset by higher depreciation related to ~~higher~~additional plant in ~~service.~~service. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

•a ~~$155 million increase in fuel revenues primarily due to higher fuel cost recovery in the current year;~~

•~~a $146 million increase in storm revenues at Duke Energy Florida due to hurricanes Ian and Nicole collections;~~

•a $76 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 $60~~$149 million increase in retail sales due to ~~favorable~~improved weather compared to prior ~~year; and~~year, including impacts of decoupling;

•a ~~$42~~$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 a decrease in the return of EDIT to customers ~~compared to the prior year~~ at Duke Energy ~~Carolinas~~Carolinas; and ~~increased Storm Protection Plan rider revenue~~

•a $36 million increase in storm revenues at Duke Energy ~~Florida.~~Florida due to Hurricane Idalia collections.

Partially offset by:

•a ~~$141~~$49 million decrease in ~~wholesale~~fuel revenues primarily due to net lower ~~capacity volumes at Duke Energy Progress and lower demand at Duke Energy Florida; and~~

•~~a $72 million decrease~~fuel cost recovery in ~~weather-normal retail sales volumes.~~the current year.

Operating ~~Expenses.~~Expenses. The variance was driven primarily by:

•a ~~$141~~$129 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida, and higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress; and

•a $47 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy ~~Florida;~~

•~~an $80 million increase in impairment of assets~~Florida, higher storm and ~~other charges primarily due to rate case impacts~~nuclear outage costs at Duke Energy ~~Carolinas and Duke Energy~~ Progress, ~~in the current year;~~


~~MD&A~~			~~SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE~~

•~~a $56 million increase in property and other taxes primarily due to franchise taxes~~ and higher ~~property tax valuation adjustments~~storm costs at Duke Energy ~~Florida; and~~

•~~a $39 million increase in depreciation and amortization primarily due to higher plant in service.~~Carolinas.

Partially offset by:

•a ~~$62~~$41 million decrease in fuel used in electric generation and purchased power due to lower deferred fuel amortization and lower fuel prices and ~~lower~~ volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio, partially offset by change in generation mix and higher ~~amortizations~~recovery of ~~deferred fuel.~~fuel expense at Duke Energy Carolinas and Duke Energy Progress; and

~~Other Income~~•an $11 million decrease in property and ~~Expenses, net.~~ ~~The increase is~~other taxes primarily due to ~~the sale of OPEB liabilities to a third party insurance company.~~lower franchise and gross 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 tax expense was primarily due to ~~a decrease~~an 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. The ETRs for the three months ended ~~September 30,~~March 31, 2024, and 2023, were 14.3% and ~~2022, were 13.2% and 11.8~~15.5%, respectively. The ~~increase~~decrease in the ETR was primarily due to ~~a decrease~~an increase 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.~~

~~Nine Months Ended September 30, 2023, as compared to September 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. The following is a detailed discussion of the variance drivers by line item.

~~Operating Revenues.~~ ~~The variance was driven primarily by:~~

•~~a $1,052 million increase in fuel revenues primarily due to higher fuel cost recovery in the current year;~~

•~~a $260 million increase in storm revenues at Duke Energy Florida due to hurricanes Ian and Nicole collections;~~

•a $154 million increase in price due to 2022 Duke Energy Ohio Electric retail rate case, 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;

•an $84 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; and

•~~a $71 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.~~

~~Partially offset by:~~

•~~a $320 million decrease in wholesale revenues primarily due to lower capacity revenues at Duke Energy Progress and lower demand at Duke Energy Florida;~~

•~~a $294 million decrease in retail sales due to unfavorable weather compared to prior year; and~~

•~~a $214 million decrease in weather-normal retail sales volumes.~~

~~Operating Expenses.~~ ~~The variance was driven primarily by:~~

•~~a $564 million increase in fuel used in electric generation and purchased power due to~~ ~~changes in the generation mix at Duke Energy Carolinas and~~ ~~higher amortization of deferred fuel;~~

•an $82 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 $73 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 Indiana.

~~Partially offset by:~~

•a $114 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 rate case impacts at Duke Energy Carolinas and Duke Energy Progress 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.~~

~~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 nine months ended September 30, 2023, and 2022, were 14.4% and 12.1%, 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.~~EDIT.

9688


MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Gas Utilities and Infrastructure


		Three Months Ended September 30,						Nine Months Ended September 30,
				Three Months Ended March 31,
				Three Months Ended March 31,
				Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		2023		2022		Variance		(in millions)	2024	2023	Variance
Operating Revenues	Operating Revenues	$	313	$	427	$	(114)	$	1,583	$	1,912	$	(329)
Operating Expenses	Operating Expenses
Cost of natural gas
Cost of natural gas
Cost of natural gas	Cost of natural gas	57		189		(132)		434		859		(425)
Operation, maintenance and other	Operation, maintenance and other	103		115		(12)		332		410		(78)
Depreciation and amortization	Depreciation and amortization	88		80		8		257		241		16
Property and other taxes	Property and other taxes	32		29		3		93		103		(10)
Impairment of assets and other charges	Impairment of assets and other charges	—		(12)		12		(4)		(12)		8
Total operating expenses	Total operating expenses	280		401		(121)		1,112		1,601		(489)
(Losses) Gains on Sales of Other Assets and Other, net		—		—		—		(1)		4		(5)

Operating Income
Operating Income
Operating Income	Operating Income	33		26		7		470		315		155

Other Income and Expenses, net	Other Income and Expenses, net	39		25		14		86		61		25

Other Income and Expenses, net

Other Income and Expenses, net
Interest Expense	Interest Expense	56		45		11		158		127		31
Income Before Income Taxes	Income Before Income Taxes	16		6		10		398		249		149
Income Tax Expense (Benefit)		1		2		(1)		71		(28)		99
Income Tax Expense

Segment Income
Segment Income
Segment Income	Segment Income	$	15	$	4	$	11	$	327	$	277	$	50

Piedmont LDC throughput (dekatherms)	Piedmont LDC throughput (dekatherms)	143,224,608		157,145,659		(13,921,051)		426,926,457		463,863,034		(36,936,577)
Piedmont LDC throughput (dekatherms)
Piedmont LDC throughput (dekatherms)
Duke Energy Midwest LDC throughput (Mcf)	Duke Energy Midwest LDC throughput (Mcf)	9,899,743		9,559,214		340,529		55,809,898		63,346,715		(7,536,817)

Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 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 ~~$132 million decrease in cost of natural gas due to lower rates, decreased off-system sales natural gas costs and lower volumes.~~

~~Partially offset by:~~

•~~an $11 million increase due to Tennessee ARM revenue true up.~~

~~Operating Expenses.The variance was driven primarily by:~~

•~~a $132 million decrease in cost of natural gas due to lower rates, decreased off-system sales natural gas costs and lower volumes; and~~

•~~a $12 million decrease in operations, maintenance and other primarily due to lower spend on internal and contract labor costs.~~

~~Partially offset by:~~

•~~a $12 million increase in impairment in assets and other charges due to the reversal in the prior year of the impairment related to the propane caverns in Ohio; and~~

•~~an $8 million increase in depreciation and amortization due to additional plant in service and lower CEP deferrals.~~

~~Other Income and Expenses, Net.~~ ~~The increase was primarily due to the revision in the Atlantic Coast Pipeline (ACP) ARO closure cost.~~

~~Interest Expense.The increase was primarily due to higher interest rates and outstanding debt balances.~~

~~Income Tax Expense (Benefit)~~. The decrease in tax expense was primarily due to an increase in the amortization of excess deferred taxes, partially offset by an increase in pretax income. The ETRs for the three months ended September 30, 2023, and 2022, were 6.3% and 33.3%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of excess deferred taxes.

~~Nine Months Ended September 30, 2023, as compared to September 30, 2022~~

~~GU&I’s results were impacted primarily by margin growth partially offset by 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 $425~~$66 million decrease due to lower natural gas costs passed through to customers, lower ~~volumes,~~rates, and decreased off-system sales natural gas costs.


~~MD&A~~			~~SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE~~

Partially offset by:

•~~an $18~~a $21 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenues ~~related~~at Duke Energy Ohio;

•a $16 million increase due to ~~Ohio CEP;~~Tennessee ARM revenues;

•a $9 million increase due to customer growth; and

•an ~~$18 million increase due to secondary marketing sales;~~

•~~a $15 million increase due to the MGP Settlement in prior year; and~~

•~~a $13~~$8 million increase due to North Carolina IMR.

Operating Expenses. The variance was driven primarily by:

•a ~~$425~~$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;~~

•~~a $78 million decrease in operations, maintenance and other due to Ohio MGP Settlement in prior year and lower spend on internal and contract labor costs; and~~

•~~a $10 million decrease in property and other taxes due to Ohio and Kentucky property tax true ups.~~costs.

Partially offset by:

•a ~~$16~~$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 ~~additional plant in service and~~higher depreciable base, lower CEP ~~deferrals.~~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.~~Net. The ~~increase~~decrease was primarily due to ~~revision in ACP ARO closure cost and higher AFUDC equity income.~~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 a decrease in the amortization of ~~excess deferred taxes related to the Ohio MGP Settlement recorded in the prior year~~EDIT and an increase in pretax income. The ETRs for the ~~nine~~three months ended ~~September 30,~~March 31, 2024, and 2023, were 19.5% and ~~2022, were 17.8% and (11.2)%~~18.0%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of ~~excess deferred taxes~~EDIT.


MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Other


	Three Months Ended March 31,
(in millions)		2024		2023		Variance
Operating Revenues		$	38	$	31	$	7






Operating Expenses		56		29		27
Gains on Sales of Other Assets and Other, net		5		6		(1)
Operating (Loss) Income		(13)		8		(21)
Other Income and Expenses, net		79		62		17
Interest Expense		294		256		38
Loss Before Income Taxes		(228)		(186)		(42)
Income Tax Benefit		(64)		(57)		(7)

Less: Preferred Dividends		39		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 recorded~~captive insurance claims in the prior year.

~~Other~~

Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2023 2022 Variance 2023 2022 Variance
Operating Revenues $ 33 $ 30 $ 3 $ 98 $ 91 $ 7
Operating Expenses 4 27 (23) 53 69 (16)
Gains on Sales of Other Assets and Other, net 5 — 5 16 1 15
Operating Income 34 3 31 61 23 38
Other Income and Expenses, net 47 6 41 168 (5) 173
Interest Expense 283 205 78 810 529 281
Loss Before Income Taxes (202) (196) (6) (581) (511) (70)
Income Tax Benefit (182) (51) (131) (285) (123) (162)
Add: Income Attributable to Noncontrolling Interests — 1 (1) — — —
Less: Preferred Dividends 39 39 — 92 92 —
Net Loss $ (59) $ (183) $ 124 $ (388) $ (480) $ 92

~~Three Months Ended September 30, 2023, as compared to September 30, 2022~~

~~The lower net loss was driven by an increase in the tax benefit due to a favorable adjustment related to~~ ~~certain allowable tax deductions, lower franchise tax expense and higher returns on investments, partially offset by higher interest expense.~~

~~Operating Expenses.~~ ~~The decrease was primarily driven by franchise tax refunds of $38 million in the current year, partially offset by an increase in franchise tax accruals of $6 million.~~

Other Income and Expenses, net. The ~~variance~~increase was primarily due to higher yields on captive insurance investments and higher return on investments that fund certain employee benefit obligations.

Interest Expense. The ~~variance~~increase 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 ~~benefits associated with ongoing tax efficiency efforts.~~higher pretax losses. The ETRs for the three months ended ~~September 30,~~March 31, 2024, and 2023, were 28.1% and ~~2022, were 90.1% and 26.0%~~30.6%, respectively. The decrease in the ETR was primarily due to ~~benefits associated with ongoing~~ tax efficiency efforts. During the third quarter of 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment of approximately $120 million.

~~Nine Months Ended September 30, 2023, as compared to September 30, 2022~~

~~The lower net loss was driven by an increase in the tax benefit and higher return on investments,~~levelization, partially offset by ~~higher~~non-deductible interest ~~expense.~~


~~MD&A~~			~~SEGMENT RESULTS - OTHER~~

~~Operating Expenses. The decrease was primarily driven by franchise tax refunds of $63 million~~on company owned life insurance in the ~~current year, partially offset by an increase in franchise tax accruals of $19 million and $26 million of increased expense on certain employee benefit obligations in the current~~prior year.

~~Other Income and Expenses, net.~~ ~~The variance was primarily due to higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments.~~

~~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.~~

~~Income Tax Benefit.~~ The increase in the tax benefit was primarily due to benefits associated with ongoing tax efficiency efforts and an increase in pretax losses. The ETRs for the nine months ended September 30, 2023, and 2022, were 49.1% and 24.1%, respectively. The increase in the ETR was primarily due to benefits associated with ongoing tax efficiency efforts. During the third quarter of 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment of approximately $120 million.

~~(LOSS) INCOME~~LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX


		Three Months Ended September 30,						Nine Months Ended September 30,
				Three Months Ended March 31,
				Three Months Ended March 31,
				Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		2023		2022		Variance		(in millions)	2024	2023	Variance
(Loss) Income From Discontinued Operations, net of tax		$	(152)	$	3	$	(155)	$	(1,316)	$	(30)	$	(1,286)
Loss From Discontinued Operations, net of tax

Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

The variance was primarily driven by the ~~impairments~~impairment on the sale of the Commercial Renewables business recorded in ~~2023.~~

~~Nine Months Ended September 30, 2023, as compared to September 30, 2022~~

~~The variance was primarily driven by~~ the ~~impairments on the sale of the Commercial Renewables business recorded in 2023.~~prior year.

DUKE ENERGY CAROLINAS

Results of Operations


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance
Operating Revenues	Operating Revenues	$	6,155	$	5,844	$	311
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,823		1,423		400
Operation, maintenance and other	Operation, maintenance and other	1,285		1,410		(125)
Depreciation and amortization	Depreciation and amortization	1,186		1,138		48
Property and other taxes	Property and other taxes	276		258		18
Impairment of assets and other charges	Impairment of assets and other charges	70		(3)		73
Total operating expenses	Total operating expenses	4,640		4,226		414
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	26		4		22
Operating Income	Operating Income	1,541		1,622		(81)
Other Income and Expenses, net	Other Income and Expenses, net	181		172		9
Interest Expense	Interest Expense	504		415		89
Income Before Income Taxes	Income Before Income Taxes	1,218		1,379		(161)
Income Tax Expense	Income Tax Expense	97		87		10
Net Income	Net Income	$	1,121	$	1,292	$	(171)


MD&A			DUKE ENERGY CAROLINAS

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.


Increase (Decrease) over prior year	~~2023~~2024
Residential sales	~~(4.5)~~6.9	%
General service sales	~~(0.7)~~4.8	%
Industrial sales	~~(5.1)~~(0.5)	%
Wholesale power sales	~~6.3~~19.1	%
Joint dispatch sales	~~28.7~~(0.3)	%
Total sales	~~(4.0)~~7.0	%
Average number of customers	~~1.7~~2.1	%


~~MD&A~~			~~DUKE ENERGY CAROLINAS~~

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•a ~~$429~~$238 million increase in fuel revenues due to higher fuel ~~cost recovery;~~rates and volumes;

•a ~~$73~~$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 the decrease in the return of EDIT to customers compared to the prior ~~year and increases in energy efficiency primarily due to program performance.~~

~~Partially offset by:~~

•~~a $153 million decrease in retail sales due to unfavorable weather compared to prior~~ year; and

•a ~~$71~~$21 million ~~decrease~~increase in weather-normal retail sales volumes.

Operating Expenses. The variance was driven primarily by:

•a ~~$400~~$237 million increase in fuel used in electric generation and purchased power primarily due to changes in the generation mix, the recovery of fuel expense and higher ~~amortization of deferred fuel, partially offset by lower Joint Dispatch Agreement (JDA)~~JDA purchased volumes and prices;

•a ~~$73 million increase in impairment of assets and other primarily due to rate case impacts and a prior year adjustment of the South Carolina Supreme Court decision on coal ash; and~~

•~~a $48~~$31 million increase in depreciation and amortization primarily due to a higher depreciable base, ~~partially offset~~and higher net amortizations driven by ~~a decrease in depreciation~~the North Carolina rate case; and ~~amortization primarily due to the prior year South Carolina Supreme Court decision on coal ash and an increase in Grid Improvement Plan deferrals.~~

~~Partially offset by:~~

•~~a $125~~an $11 million ~~decrease~~increase in operation, maintenance and other ~~expense~~ primarily due to ~~a decrease in spend on outside services and lower~~higher storm ~~restoration~~ costs.

~~Gains on Sales of Other Assets and Other, net.~~ ~~Theincrease was primarily due to the sale of the Mint Street parking deck.~~

Interest Expense. The ~~variance~~increase was ~~driven by~~primarily due to higher ~~interest rates and~~ outstanding debt ~~balances.~~balances and interest rates.

PROGRESS ENERGY

Results of Operations


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance
Operating Revenues	Operating Revenues	$	10,315	$	10,087	$	228
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	3,902		3,927		(25)
Operation, maintenance and other	Operation, maintenance and other	1,963		1,829		134
Depreciation and amortization	Depreciation and amortization	1,609		1,607		2
Property and other taxes	Property and other taxes	546		472		74
Impairment of assets and other charges	Impairment of assets and other charges	29		4		25
Total operating expenses	Total operating expenses	8,049		7,839		210
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	20		6		14
Operating Income	Operating Income	2,286		2,254		32
Other Income and Expenses, net	Other Income and Expenses, net	146		150		(4)
Interest Expense	Interest Expense	706		616		90
Income Before Income Taxes	Income Before Income Taxes	1,726		1,788		(62)
Income Tax Expense	Income Tax Expense	280		289		(9)
Net Income	Net Income	$	1,446	$	1,499	$	(53)

Less: Net Income Attributable to Noncontrolling Interests		—		1		(1)
Net Income Attributable to Parent		$	1,446	$	1,498	$	(52)

~~100~~91


MD&A			PROGRESS ENERGY

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•a ~~$260~~$63 million increase in retail sales due to improved weather compared to the prior year, including impacts of decoupling, at Duke Energy Progress;

•a $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 Nicole~~Hurricane Idalia collections;

•a $242 million increase in fuel cost recovery 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;

•a $74 million increase due to higher pricing related to rate cases at Duke Energy Progress from interim rates from the North Carolina retail rate case and the South Carolina retail rate case, and base rate adjustments related to annual increases from the 2021 Settlement Agreement at Duke Energy Florida;

•~~a $35 million increase in rider revenues at Duke Energy Florida primarily due to increased Storm Protection Plan rider revenue;~~ and

•a ~~$20~~$10 million increase in ~~franchise taxes revenue primarily~~wholesale revenues, net of fuel, due to ~~increased revenues over prior year.~~higher capacity rates at Duke Energy Progress.

Partially offset by:

•a ~~$265~~$46 million decrease in ~~wholesale~~fuel and capacity revenues ~~net of fuel,~~primarily due to lower ~~capacity rate~~rates 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;~~

•~~an $85 million decrease in weather-normal retail sales volumes; and~~

•~~a $66 million decrease in retail sales due to unfavorable weather compared to prior year.~~Progress.

Operating Expenses. The variance was driven primarily by:

•an $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 ~~$134~~$60 million increase in operation, maintenance and other primarily due to storm amortization at Duke Energy Florida ~~partially offset by a decrease at Duke Energy Progress due to lower~~and higher storm ~~costs;~~

•~~a $74 million increase in property~~ and ~~other taxes primarily due to franchise taxes driven by higher revenues and property taxes due to higher property tax valuation adjustments at Duke Energy Florida; and~~

•~~a $25 million increase in impairment of asset and other charges primarily due to rate case impacts~~nuclear outage costs at Duke Energy Progress.

Partially offset by:

•a ~~$25~~$48 million decrease in fuel used in electric generation and purchased power primarily due to lower ~~volumes~~natural gas prices and ~~price~~the expiration of a purchased power contract in December 2023 at Duke Energy ~~Progress,~~Florida, partially offset by higher ~~amortization~~volumes and prices, net of ~~deferred~~the recovery of fuel ~~balances~~expense, at Duke Energy Progress; and

•a $10 million decrease in property and other taxes primarily due to lower franchise and gross receipts tax, driven by lower revenues and lower property taxes at Duke Energy Florida.

~~Gains on Sales of Other Assets and Other, net.~~Interest Expense. Theincrease was primarily due to ~~sales of cell tower leases.~~

~~Interest Expense.~~ ~~The variance was driven primarily by~~ higher outstanding debt balances and interest rates at Duke Energy ~~Florida and Duke Energy~~ Progress.

Income Tax Expense. The ~~decrease~~increase in tax expense was primarily due to ~~a decrease~~an increase in pretax ~~income.~~income, partially offset by an increase in the amortization of EDIT.

DUKE ENERGY PROGRESS

Results of Operations


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance
Operating Revenues	Operating Revenues	$	4,844	$	5,182	$	(338)
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,685		1,916		(231)
Operation, maintenance and other	Operation, maintenance and other	1,051		1,101		(50)
Depreciation and amortization	Depreciation and amortization	935		890		45
Property and other taxes	Property and other taxes	143		136		7
Impairment of assets and other charges	Impairment of assets and other charges	31		4		27
Total operating expenses	Total operating expenses	3,845		4,047		(202)
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	2		2		—
Operating Income	Operating Income	1,001		1,137		(136)
Other Income and Expenses, net	Other Income and Expenses, net	92		83		9
Interest Expense	Interest Expense	315		260		55
Income Before Income Taxes	Income Before Income Taxes	778		960		(182)
Income Tax Expense	Income Tax Expense	101		129		(28)
Net Income	Net Income	$	677	$	831	$	(154)

~~101~~92


MD&A			DUKE ENERGY PROGRESS


Increase (Decrease) over prior period	~~2023~~2024
Residential sales	~~(5.2)~~5.9	%
General service sales	~~(2.7)~~5.6	%
Industrial sales	~~(13.6)~~(5.4)	%
Wholesale power sales	~~(4.5)~~6.4	%
Joint dispatch sales	~~(14.0)~~(3.2)	%
Total sales	~~(7.3)~~5.1	%
Average number of customers	~~1.7~~2.1	%

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•~~a $182~~an $80 million ~~decrease~~increase in fuel revenues due to ~~lower JDA sales volumes at lower prices in the current year, partially offset by~~ higher fuel ~~cost recovery;~~rates and volumes;

•a ~~$110~~$63 million ~~decrease~~increase in retail sales due to ~~unfavorable~~improved weather compared to prior ~~year;~~year, including impacts of decoupling;

•a ~~$69~~$62 million ~~decrease~~increase in weather-normal retail sales volumes;

•a $44 million increase due to higher pricing from the North Carolina and South Carolina rate cases; and

•a ~~$33~~$10 million ~~decrease~~increase in wholesale revenues, net of fuel, due to ~~lower~~higher capacity ~~rates and volumes.~~

~~Partially offset by:~~

•~~a $60 million increase due to higher pricing from interim rates from the North Carolina retail rate case and the South Carolina retail rate case.~~rates.

Operating Expenses. The variance was driven primarily by:

•a ~~$231~~$75 million ~~decrease~~increase in fuel used in electric generation and purchased power primarily due to ~~lower volumes and prices, 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 ~~$50 million decrease in operation, maintenance and other expense primarily due to lower storm costs.~~

~~Partially offset by:~~

•~~a $45~~$24 million increase in depreciation and amortization ~~due to higher depreciable base; and~~

•~~a $27 million increase in impairment of assets and other charges~~ primarily due to a higher depreciable base, and higher net amortizations driven by the North Carolina rate ~~case impacts.~~case.

Interest Expense. The ~~variance~~increase was driven primarily by higher ~~interest rates and~~ outstanding debt ~~balances.~~balances and interest rates.

Income Tax Expense. The ~~decrease~~increase in tax expense was primarily due to ~~a decrease~~an increase in pretax income, partially offset by ~~a decrease~~an increase in the amortization of ~~excess deferred taxes.~~EDIT.

DUKE ENERGY FLORIDA

Results of Operations


	Three Months Ended March 31,
(in millions)	2024		2023		Variance
Operating Revenues	$	1,436	$	1,510	$	(74)
Operating Expenses
Fuel used in electric generation and purchased power	523		646		(123)
Operation, maintenance and other	251		213		38
Depreciation and amortization	248		190		58
Property and other taxes	106		120		(14)
Impairment of assets and other charges	—		1		(1)
Total operating expenses	1,128		1,170		(42)
Gains on Sales of Other Assets and Other, net	1		1		—
Operating Income	309		341		(32)
Other Income and Expenses, net	24		30		(6)
Interest Expense	111		115		(4)
Income Before Income Taxes	222		256		(34)
Income Tax Expense	43		51		(8)
Net Income	$	179	$	205	$	(26)

~~102~~93


MD&A			DUKE ENERGY FLORIDA

~~DUKE ENERGY FLORIDA~~

~~Results of Operations~~

Nine Months Ended September 30,
(in millions) 2023 2022 Variance
Operating Revenues $ 5,456 $ 4,890 $ 566
Operating Expenses
Fuel used in electric generation and purchased power 2,218 2,011 207
Operation, maintenance and other 898 716 182
Depreciation and amortization 674 717 (43)
Property and other taxes 403 335 68
Impairment of assets and other charges (1) — (1)
Total operating expenses 4,192 3,779 413
Gains on Sales of Other Assets and Other, net 1 5 (4)
Operating Income 1,265 1,116 149
Other Income and Expenses, net 56 74 (18)
Interest Expense 305 258 47
Income Before Income Taxes 1,016 932 84
Income Tax Expense 206 181 25
Net Income $ 810 $ 751 $ 59

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.


Increase (Decrease) over prior period	~~2023~~2024
Residential sales	(2.7)	%
General service sales	(2.4)	%
Industrial sales	1.5	%
~~General service~~Wholesale power sales	~~1.1~~	%
~~Industrial sales~~	~~(5.6)~~	%
~~Wholesale and other~~	~~(46.7)~~(6.2)	%
Total sales	~~(4.9)~~(1.7)	%
Average number of customers	~~1.7~~2.2	%

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•a ~~$424~~$126 million ~~increase~~decrease in fuel and capacity revenues primarily due to ~~an increase in~~lower fuel and capacity rates billed to retail ~~customers;~~

•~~a $260 million increase in storm revenues due to hurricanes Ian and Nicole collections;~~

•~~a $44 million increase in retail sales due to favorable weather in the current year;~~

•~~a $35 million increase in rider revenues primarily due to increased rate of Storm Protection Plan rider; and~~

•~~a $20 million increase in franchise taxes revenue primarily due to increased revenues over prior year.~~customers.

Partially offset by:

•a ~~$232~~$36 million ~~decrease~~increase in ~~wholesale power~~storm revenues ~~net of fuel, primarily~~ due to ~~decreased demand.~~Hurricane Idalia collections; and

•a $15 million increase in 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 ~~$207~~$123 million ~~increase~~decrease in fuel used in electric generation and purchased power primarily due to ~~higher amortization~~lower natural gas prices and the expiration of ~~deferred fuel~~a purchased power contract in December 2023; and ~~capacity expense;~~

•a ~~$182~~$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 $68 million increase in property and other taxes primarily due to franchise taxes driven by higher revenues and property taxes due to higher property tax valuation adjustments.~~

~~Partially offset by:~~

•~~a $43 million decrease in depreciation and amortization primarily due to the amortization of Department of Energy settlement regulatory liability, partially offset by higher depreciable base.~~

~~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.~~

~~103~~


~~MD&A~~			~~DUKE ENERGY FLORIDA~~

~~Interest Expense.~~ ~~The increase was primarily due to higher interest rates and outstanding debt balances.~~amortization.

Income Tax Expense. The ~~increase~~decrease 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


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance
Operating Revenues	Operating Revenues
Regulated electric
Regulated electric
Regulated electric	Regulated electric	$	1,411	$	1,320	$	91
Regulated natural gas	Regulated natural gas	464		491		(27)

Total operating revenues	Total operating revenues	1,875		1,811		64
Total operating revenues
Total operating revenues
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	485		439		46
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 gas	Cost of natural gas	118		174		(56)
Operation, maintenance and other	Operation, maintenance and other	358		408		(50)
Depreciation and amortization	Depreciation and amortization	266		247		19
Property and other taxes	Property and other taxes	258		272		(14)
Impairment of assets and other charges		—		(11)		11

Total operating expenses
Total operating expenses
Total operating expenses	Total operating expenses	1,485		1,529		(44)

Operating Income
Operating Income
Operating Income	Operating Income	390		282		108
Other Income and Expenses, net	Other Income and Expenses, net	33		16		17
Interest Expense	Interest Expense	125		92		33
Income Before Income Taxes	Income Before Income Taxes	298		206		92
Income Tax Expense (Benefit)		47		(30)		77
Income Tax Expense

Net Income	Net Income	$	251	$	236	$	15

Net Income

Net Income


MD&A			DUKE 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.


		Electric		Natural Gas
	Electric									Electric	Natural Gas
Increase (Decrease) over prior year	Increase (Decrease) over prior year	2023		2023		Increase (Decrease) over prior year	2024		2024
Residential sales	Residential sales	(5.6)	%	(13.4)	%	Residential sales	2.4	%	3.8	%
General service sales	General service sales	1.8	%	(24.2)	%	General service sales	(1.8)	%	5.1	%
Industrial sales	Industrial sales	8.7	%	2.7	%	Industrial sales	(9.1)	%	6.0	%
Wholesale electric power sales	Wholesale electric power sales	(33.8)	%	n/a		Wholesale electric power sales	271.4	%	n/a
Other natural gas sales	Other natural gas sales	n/a		(0.4)	%	Other natural gas sales	n/a		4.0	%
Total sales	Total sales	(5.0)	%	(11.9)	%	Total sales	2.4	%	4.3	%
Average number of customers	Average number of customers	0.9	%	0.5	%	Average number of customers	1.0	%	1.0	%

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•~~a $93~~an $84 million ~~increase in price due to the 2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in prior year;~~

•~~a $58 million increase~~decrease in fuel-related revenues primarily due to ~~higher~~lower retail sales volumes, ~~and higher fuel cost recovery in the current 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 ~~$54~~$21 million ~~decrease~~increase 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 ~~lower~~higher Ohio Valley Electric Corporation (OVEC) rider collections and OVEC sales into PJM Interconnection, LLC (PJM);

•~~a $33 million decrease due to unfavorable weather compared to prior year;~~ and

•~~a $6~~an $8 million ~~decrease~~increase 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 Energy Efficiency Rider.~~ rider.

~~104~~


~~MD&A~~			~~DUKE ENERGY OHIO~~

Operating Expenses. The variance was driven primarily by:

•a ~~$50 million decrease in operation, maintenance and other expense primarily due to the MGP Settlement in the prior year;~~

•~~a $14 million decrease in property and other taxes primarily due to property tax true ups in Ohio and Kentucky and higher deferrals, partially offset by higher franchise taxes; and~~

•~~a $10~~$69 million decrease in fuel expense primarily driven by lower retail prices for natural gas and purchased power, ~~partially offset by an increase~~and a decrease in purchased power volumes.

Partially offset by:

•a ~~$19~~$22 million increase in property and other taxes primarily due to property tax true ups for prior years and higher property tax in current year, partially offset by Network Integration Transmission Service (NITS) deferral and franchise taxes; and

•a $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 retail~~Kentucky electric rate case implemented in ~~2023;~~2023 and

•~~an $11 million increase~~ CEP deferrals in ~~impairment of assets and other charges primarily due to the reversal in the prior year of the impairment related to the propane caverns in Ohio.~~

~~Other Income and Expenses. The increase was primarily due intercompany interest income.~~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


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance
Operating Revenues	Operating Revenues	$	2,606	$	2,835	$	(229)
Operating Expenses	Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	980		1,234		(254)
Fuel used in electric generation and purchased power
Fuel used in electric generation and purchased power
Operation, maintenance and other	Operation, maintenance and other	524		551		(27)
Depreciation and amortization	Depreciation and amortization	500		478		22
Property and other taxes	Property and other taxes	42		60		(18)
Impairment of assets and other charges		—		211		(211)

Total operating expenses
Total operating expenses
Total operating expenses	Total operating expenses	2,046		2,534		(488)

Operating Income
Operating Income
Operating Income	Operating Income	560		301		259
Other Income and Expenses, net	Other Income and Expenses, net	58		27		31
Interest Expense	Interest Expense	157		138		19
Income Before Income Taxes	Income Before Income Taxes	461		190		271
Income Tax Expense	Income Tax Expense	82		1		81
Net Income	Net Income	$	379	$	189	$	190


MD&A			DUKE ENERGY INDIANA


Increase (Decrease) over prior year	~~2023~~2024
Residential sales	~~(7.3)~~3.4	%
General service sales	~~(1.3)~~(0.1)	%
Industrial sales	~~7.1~~(5.1)	%
Wholesale power sales	~~(7.9)~~15.3	%
Total sales	~~(7.0)~~1.7	%
Average number of customers	~~1.1~~1.6	%

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•a ~~$111~~$172 million decrease in retail fuel revenues primarily due to lower fuel cost recovery driven by lower retail sales volumes and fuel prices;

•a ~~$55~~$32 million decrease in weather-normal retail sales volumes; and

•an $11 million decrease in wholesale revenues, including fuel, ~~revenues, driven by lower fuel and purchased power prices;~~

•~~a $51 million decrease in weather-normal retail sales volumes primarily due to lower customer demand;~~

~~105~~


~~MD&A~~			~~DUKE ENERGY INDIANA~~

•~~a $46 million decrease in retail sales due to unfavorable weather; and~~

•~~a $26 million decrease~~ primarily due to the ~~Utility Receipts Tax repeal.~~expiration of a wholesale customer contract.

~~Partially offset by:~~

•~~a $71 million increase primarily due to the net provision for rate refund related to the Indiana Supreme Court ruling on recovery of certain coal ash costs.~~

Operating Expenses. The variance was driven primarily by:

•a ~~$254~~$178 million decrease in fuel used in electric generation and purchased power primarily due to lower deferred fuel amortization as well as lower purchased power expense, natural gas and coal ~~costs, partially offset by higher deferred fuel amortization;~~

•~~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 $27 million decrease in operation, maintenance and other primarily due to lower employee-related expenses and storm contingency costs; and~~

•~~an $18 million decrease in property and other taxes primarily due to franchise taxes and property tax true ups for prior periods.~~costs.

Partially offset by:

•~~a $22~~an $11 million increase in depreciation and amortization primarily due to a higher depreciable ~~base.~~

~~Other Income~~base and ~~Expenses, net.~~ ~~The variance is primarily due to~~ coal ash ~~insurance proceeds and intercompany interest income.~~

~~Interest Expense.~~ ~~The variance is primarily due to higher outstanding debt balances and interest rates.~~related amortization.

Income Tax Expense. The ~~increase~~decrease in tax expense was primarily due to ~~an increase~~a decrease in pretax income, ~~and~~partially 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


		Nine Months Ended September 30,
	Three Months Ended March 31,										Three Months Ended March 31,
(in millions)	(in millions)	2023		2022		Variance		(in millions)	2024	2023		Variance

Operating Revenues	Operating Revenues	$	1,119	$	1,421	$	(302)

Operating Revenues

Operating Revenues
Operating Expenses	Operating Expenses
Cost of natural gas
Cost of natural gas
Cost of natural gas	Cost of natural gas	316		685		(369)
Operation, maintenance and other	Operation, maintenance and other	248		270		(22)
Depreciation and amortization	Depreciation and amortization	175		166		9
Property and other taxes	Property and other taxes	46		44		2
Impairment of assets and other charges	Impairment of assets and other charges	(4)		1		(5)
Total operating expenses	Total operating expenses	781		1,166		(385)
Gains on Sales of Other Assets and Other, net		—		4		(4)

Operating Income
Operating Income
Operating Income	Operating Income	338		259		79
Other Income and Expenses, net	Other Income and Expenses, net	49		41		8
Interest Expense	Interest Expense	120		102		18
Income Before Income Taxes	Income Before Income Taxes	267		198		69
Income Tax Expense	Income Tax Expense	46		18		28
Net Income	Net Income	$	221	$	180	$	41


MD&A			PIEDMONT

The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.


Increase (Decrease) over prior year	~~2023~~2024
Residential deliveries	~~(16.3)~~20.9	%
Commercial deliveries	~~(10.4)~~19.2	%
Industrial deliveries	~~(2.9)~~3.9	%
Power generation deliveries	~~(7.7)~~(7.6)	%
For resale	~~(18.1)~~4.1	%
Total throughput deliveries	~~(8.0)~~1.1	%
Secondary market volumes	~~(27.0)~~(11.6)	%
Average number of customers	1.5	%

~~106~~


~~MD&A~~			~~PIEDMONT~~

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.

~~Nine~~Three Months Ended ~~September 30, 2023,~~March 31, 2024, as compared to ~~September 30, 2022~~March 31, 2023

Operating Revenues. The variance was driven primarily by:

•a ~~$369~~ $16 million increase due to 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 South Carolina RSA.

Partially offset by:

•a $36 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:~~

•co~~an $18 million increase due to secondary marketing sales;~~

•~~a $13 million increase due to North Carolina IMR;~~

•~~an $11 million increase due to customer growth; and~~

•~~an $11 million increase due to Tennessee ARM revenue true up.~~sts.

Operating Expenses. The variance was driven primarily by:

•a ~~$369~~$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; and~~costs.

Partially offset by:

•a ~~$22~~$6 million ~~decrease~~increase in operations, maintenance and other primarily due to ~~lower spend on internal~~higher outside services and ~~contract labor costs.~~software projects; and

~~Partially offset by:~~

•a $9$5 million increase in depreciation and amortization due to additional plant in service.

~~Other Income and Expenses, net.~~ ~~The increase was primarily due to higher AFUDC equity income.~~

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.

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 ~~2023~~2024 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 ~~September 30, 2023,~~March 31, 2024, Duke Energy had ~~$324~~$459 million of cash on hand and ~~$6.1~~$5.1 billion available under its $9 billion Master ~~Credit~~Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs.

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.


MD&A			LIQUIDITY 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 the timing and use of proceeds from the sale of certain Commercial Renewables assets to affiliates of Brookfield and ~~ArcLight.~~ArcLight Capital Partners, LLC.

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.

~~107~~


~~MD&A~~			~~LIQUIDITY AND CAPITAL RESOURCES~~

Cash Flow Information

The following table summarizes Duke Energy’s cash flows.


			Nine Months Ended
			September 30,
		Three Months Ended								Three Months Ended
		March 31,								March 31,
(in millions)	(in millions)		2023		2022		(in millions)	2024	2023
Cash flows provided by (used in):	Cash flows provided by (used in):
Operating activities
Operating activities
Operating activities	Operating activities		$	7,309	$	5,188
Investing activities	Investing activities		(9,751)		(8,630)
Financing activities	Financing activities		2,413		3,551

Net (decrease) increase in cash, cash equivalents and restricted cash			(29)		109
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 period	Cash, cash equivalents and restricted cash at beginning of period		603		520
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period		$	574	$	629

OPERATING CASH FLOWS

The following table summarizes key components of Duke Energy’s operating cash flows.


		Nine Months Ended
		September 30,
		Three Months Ended
		Three Months Ended
		Three Months Ended
		March 31,
		March 31,
		March 31,
(in millions)
(in millions)
(in millions)	(in millions)	2023		2022		Variance
Net income	Net income	$	1,878	$	3,113	$	(1,235)
Net income
Net income
Non-cash adjustments to net income	Non-cash adjustments to net income	5,887		4,474		1,413
Contributions to qualified pension plans		(100)		(58)		(42)
Non-cash adjustments to net income
Non-cash adjustments to net income

Payments for asset retirement obligations

Payments for asset retirement obligations

Payments for asset retirement obligations	Payments for asset retirement obligations	(423)		(418)		(5)
Working capital	Working capital	(792)		(2,043)		1,251
Working capital
Working capital
Other assets and Other liabilities
Other assets and Other liabilities
Other assets and Other liabilities	Other assets and Other liabilities	859		120		739
Net cash provided by operating activities	Net cash provided by operating activities	$	7,309	$	5,188	$	2,121
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 ~~payments~~payments; and

•a $420 million increase in 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 ~~working capital accounts.~~margin, partially offset by higher interest expense.

INVESTING CASH FLOWS

The following table summarizes key components of Duke Energy’s investing cash flows.


			Nine Months Ended
			September 30,
		Three Months Ended											Three Months Ended
		March 31,											March 31,
(in millions)	(in millions)		2023		2022		Variance		(in millions)	2024	2023	Variance
Capital, investment and acquisition expenditures	Capital, investment and acquisition expenditures		$	(9,340)	$	(8,185)	$	(1,155)

Other investing items	Other investing items		(411)		(445)		34
Other investing items
Other investing items
Net cash used in investing activities	Net cash used in investing activities		$	(9,751)	$	(8,630)	$	(1,121)

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.


MD&A			LIQUIDITY AND CAPITAL RESOURCES

FINANCING CASH FLOWS

The following table summarizes key components of Duke Energy’s financing cash flows.

Nine Months Ended
September 30,
(in millions) 2023 2022 Variance
Issuances of long-term debt, net $ 5,607 $ 5,663 $ (56)
Notes payable, commercial paper and other short-term borrowings (939) 269 (1,208)
Dividends paid (2,438) (2,389) (49)
Contributions from noncontrolling interests 278 132 146
Other financing items (95) (124) 29
Net cash provided by financing activities $ 2,413 $ 3,551 $ (1,138)

~~108~~


~~MD&A~~			~~LIQUIDITY AND CAPITAL RESOURCES~~


	Three Months Ended
	March 31,
(in millions)	2024		2023		Variance
Issuances of long-term debt, net	$	2,089	$	2,705	$	(616)


Notes payable, commercial paper and other short-term borrowings	(191)		(265)		74
Dividends paid	(806)		(815)		9
Contributions from noncontrolling interests	—		206		(206)

Other financing items	(63)		(84)		21
Net cash provided by financing activities	$	1,029	$	1,747	$	(718)

The variance was primarily due to:

•a ~~$1,208~~$616 million decrease in proceeds from net issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt; and

•a $206 million decrease in contributions from noncontrolling interests.

Partially offset by:

•a $74 million increase in net borrowings from notes payable and commercial paper.

~~Partially offset by:~~

•~~a $146 million increase in contributions from noncontrolling interests.~~

OTHER MATTERS

Environmental Regulations

The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time and result in new obligations of the Duke Energy Registrants. Refer to Note 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 Register~~issued a ~~proposed~~final rule under the Resource Conservation and Recovery Act, which ~~would establish~~significantly expands the scope of the CCR Rule by establishing regulatory requirements for inactive surface impoundments at ~~inactive~~retired 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 all~~on previously unregulated coal ash sources at regulated facilities (CCR Management Units). CCR ~~management units at facilities otherwise subject~~Management 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 ~~proposed~~final 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 standards~~normal 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 ~~reviewing~~evaluating 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.

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.


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 ~~September 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 ~~September 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.

~~109~~100


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

~~On August 25, 2023, Alex Glenn, Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest,~~During the three months ended March 31, 2024, no director or officer of the Company adopted, terminated or modified a Rule 10b5-1 trading arrangement ~~for the sale of up to 1,000 shares of the Company’s common stock between January 31, 2024, and March 28, 2024,~~ or ~~such earlier date if such plan is terminated sooner pursuant to the terms specified therein. Mr. Glenn's Rule~~non-Rule 10b5-1 trading arrangement, ~~was entered into during an open insider trading window and~~as each term is ~~intended to satisfy the affirmative defense~~defined in Item 408(a) of ~~Rule 10b5-1 under the Exchange Act and the Company's policies regarding insider transactions.~~Regulation S-K.

~~110~~103


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 (***).

Duke

Exhibit

Duke

Energy

Progress

Energy

Number

Energy

Carolinas

Energy

Progress

Florida

Ohio

Indiana

Piedmont

4.1

~~Thirtieth~~One-h undred and t enth Supplemental Indenture, dated as of ~~September 8, 2023,~~January 5, 2024, between the r egistrant and The Bank of New York Mellon Trust Company, N.A., as Trustee (i ncorporated by reference to ~~the~~Exhibit 4.2 to registrant's Current Report on Form 8-K, filed on January 5, 2024, F ile No . 1-04928).

4.2

One-h undred and e leventh Supplemental Indenture, dated as of ~~June 3, 2008,~~January 5, 2024, between the ~~Duke Energy Corporation~~ registrant and The Bank of New York Mellon Trust Company, N.A., as Trustee, and ~~forms~~a form of global ~~notes included therein~~bonds representing the First and Refunding Mortgage Bonds, 4.85% Series due 2034 ~~(incorporated~~(i ncorporated by reference to ~~exhibit~~Exhibit 4.3 to regis tra nt's Current Report on Form 8-K , filed on January 5, 2 024, File No. 1-04928).

4.3

Seventy-s econd Supplemental Indenture, dated as of March 1, 2024 , between the registrant and Deutsche Bank National Trust Company, as Trustee and form of global bond (incorporated by reference to Exhibit 4.1 to registrant's Current Report on Form 8 -K filed on March 1, 2024 , File No. 1-3543).

4.4

Forty-ninth Supplemental Indenture, dated as of March 14, 2024, between the registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, and form of global bond (incorporated by refe rence to Exhibit 4.1 to registrant's Current Report on Form 8-K filed on March 14, 2024, File No. 1-12 32).

4.5

Ninety-fifth Supplemental Indenture, dated as of March 1, 2024 , among the registrant , The Bank of New York Mellon (formerly Irving Trust Com pany) and Christie Leppert (successor to Frederick G. Herbst) and form of global bon d (incorporated by reference to Exhibit 4.1 to registrant's Current Report on Form 8-K filed on ~~September 8, 2023~~March 1 4 , 2024, File No . ~~1-32853~~1-3382).

*4.6

).Term Loan Credit Agreement, dated as of March 26, 2024, by and among Duke Energy Corporation, as Borrower, the lenders party thereto and PNC Bank, N.A., as Administrative Agent

~~4.2~~

~~Sixtieth Supplemental Indenture, dated as of September 1, 2023, between~~ ~~Duke Energy Florida, LLC~~ ~~and The Bank of New York Mellon, as successor Trustee and Calculation Agent~~(~~incorporated by reference to Exhibit 4.1~~ ~~to registrant's Current Report on Form 8-K filed on September 29, 2023, File No. 1-3274).~~

*31.1.1

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.2

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.3

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.4

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

104


EXHIBITS

*31.1.5

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.6

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.7

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.8

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.1

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.2

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.3

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.4

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.5

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.6

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~111~~


~~EXHIBITS~~

*31.2.7

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.8

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*32.1.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.3

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.4

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.5

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.6

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.7

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.8

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

105


EXHIBITS

*32.2.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.3

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.4

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.5

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.6

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.7

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.8

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*101.INS

XBRL Instance Document (this does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

~~112~~


~~EXHIBITS~~

*101.SCH

XBRL Taxonomy Extension Schema Document.

*101.CAL

XBRL Taxonomy Calculation Linkbase Document.

*101.LAB

XBRL Taxonomy Label Linkbase Document.

*101.PRE

XBRL Taxonomy Presentation Linkbase Document.

*101.DEF

XBRL Taxonomy Definition Linkbase Document.

*104

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

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.

~~113~~106


SIGNATURES

SIGNATURES

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


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

Date:	~~November 2, 2023~~May 7, 2024	/s/ BRIAN D. SAVOY
		Brian D. Savoy Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date:	~~November 2, 2023~~May 7, 2024	/s/ CYNTHIA S. LEE
		Cynthia S. Lee Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)

~~114~~107


	Nine Months Ended September 30, 2023
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	20,308	$	1,516	$	21,824	$	24	$	—	$	21,848
Intersegment revenues	55		67		122		74		(196)		—
Total revenues	$	20,363	$	1,583	$	21,946	$	98	$	(196)	$	21,848
Segment income (loss)(a)	$	3,088	$	327	$	3,415	$	(388)	$	—	$	3,027
Less: Noncontrolling interests											(42)
Add: Preferred stock dividend											92
Discontinued operations											(1,283)
Net Income											$	1,878