Media Contact: Catherine Butler
24-Hour: 800.559.3853
Analyst Contact: Mike Callahan
Office: 704.382.0459
May 9, 2019
Duke Energy reports first quarter 2019 financial results
| |
| ▪ | First quarter 2019 GAAP and adjusted EPS of $1.24 |
| |
| ▪ | Company affirms 2019 adjusted EPS guidance range of $4.80 to $5.20 |
| |
| ▪ | 1,250 megawatts of renewables projects announced this year to be owned or procured on behalf of customers |
CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced first quarter 2019 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted diluted EPS of $1.24. This is compared to reported and adjusted diluted EPS of $0.88 and $1.28, respectively, for the first quarter of 2018. Adjusted diluted EPS excludes the impact of certain items that are included in GAAP reported diluted EPS.
Lower first quarter 2019 adjusted results were primarily driven by unfavorable weather and share dilution, partially offset by growth from investments at the electric and gas utilities.
“We remain on track to deliver full-year results within our 2019 earnings guidance range of $4.80 to $5.20 per share,” said Lynn Good, Duke Energy chairman, president and CEO. “We will continue to execute our long-term strategy to generate cleaner energy, modernize the energy grid and expand natural gas infrastructure to deliver value for customers and investors."
“With the announcement of more than 1,250 megawatts of new regulated and commercial renewables projects, we advanced our vision to provide cleaner energy across our footprint. We were also pleased to announce a partnership with John Hancock in our commercial renewables business — a clear validation of the strength of our existing portfolio.”
Business segment results
In addition to the following summary of first quarter 2019 business segment performance, comprehensive tables with detailed EPS drivers for the first quarter compared to prior year are provided in the tables at the end of this news release.
The discussion below of first quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables at the end of this news release present a full reconciliation of GAAP reported results to adjusted results.
Duke Energy News Release 2
Electric Utilities and Infrastructure
On a reported and adjusted basis, Electric Utilities and Infrastructure recognized first quarter 2019 segment income of $750 million. This is compared to reported and adjusted earnings of $750 million and $816 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by $66 million in after-tax charges related to the Duke Energy Progress North Carolina rate case order. This amount was treated as a special item and excluded from adjusted earnings.
On an adjusted basis, this represents a decrease of $0.10 per share, excluding share dilution of $0.04 per share. Lower quarterly results at Electric Utilities and Infrastructure were primarily due to unfavorable weather (-$0.07 per share), lower volumes (-$0.03 per share), higher depreciation and amortization expense (-$0.03 per share) on a growing asset base, and higher interest expense (-$0.03 per share); partially offset by contributions from base rate changes (+$0.09 per share).
Gas Utilities and Infrastructure
On a reported and adjusted basis, Gas Utilities and Infrastructure recognized first quarter 2019 segment income of $226 million. This is compared to reported and adjusted earnings of $116 million and $158 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by a $42 million after-tax impairment charge related to the Constitution pipeline investment, which was treated as a special item and excluded from adjusted earnings.
On an adjusted basis, this represents an increase of $0.10 per share. Higher quarterly results at Gas Utilities and Infrastructure were driven by higher earnings from midstream investments (+$0.08 per share), primarily due to a true-up adjustment related to income tax recognition for equity method investments.
Commercial Renewables
On a reported and adjusted basis, Commercial Renewables recognized first quarter 2019 segment income of $13 million, compared to $20 million in the first quarter of 2018, a decrease of $0.01 per share. Lower quarterly results were primarily due to lower wind production.
Other
Other primarily includes interest expense on holding company debt, other unallocated corporate costs and results from Duke Energy’s captive insurance company.
On a reported and adjusted basis, Other recognized a first quarter 2019 net loss of $89 million. This is compared to a reported and adjusted net loss of $266 million and $95 million, respectively, in the first quarter of 2018. First quarter 2018 reported results were impacted by an $82 million after-tax loss on sale of the retired Beckjord plant in Ohio, the recognition of a $76 million valuation allowance related to the Tax Act, and costs to achieve the Piedmont merger. These amounts were treated as special items and excluded from adjusted earnings.
Duke Energy News Release 3
Effective Tax Rate
On a reported and adjusted basis, Duke Energy's consolidated effective tax rate for the first quarter of 2019 was 9.6 percent. This is compared to a reported and adjusted effective tax rate of 22.5 percent and 15.7 percent, respectively, in the first quarter of 2018. The decrease in the adjusted effective tax rate was primarily due to a true-up adjustment related to income tax recognition for equity method investments in the first quarter of 2019 and the amortization of excess deferred taxes. Adjusted effective tax rate is a non-GAAP financial measure. The tables at the end of this news release present a reconciliation of the reported effective tax rate to the adjusted effective tax rate.
Earnings conference call for analysts
An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss first quarter 2019 financial results and other business and financial updates. The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.
The call can be accessed via the investors section (duke-energy.com/investors) of Duke Energy’s website or by dialing 888-254-3590 in the United States or 323-994-2093 outside the United States. The confirmation code is 1767856. Please call in 10 to 15 minutes prior to the scheduled start time.
A replay of the conference call will be available until 1 p.m. ET, May 19, 2019, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 1767856. An audio replay and transcript will also be available by accessing the investors section of the company’s website.
Special Items and Non-GAAP Reconciliation
The following table presents a reconciliation of GAAP reported to adjusted diluted EPS for first quarter 2018 financial results: |
| | | | | | |
| (In millions, except per-share amounts) | After-Tax Amount |
| 1Q 2018 EPS |
|
| Diluted EPS, as reported | | $ | 0.88 |
|
| Adjustments to reported EPS: | | |
| First Quarter 2018 | | |
| Costs to achieve Piedmont merger | $ | 13 |
| 0.02 |
|
| Regulatory settlements | 66 |
| 0.09 |
|
| Sale of retired plant | 82 |
| 0.12 |
|
| Impairment of equity method investment | 42 |
| 0.06 |
|
| Impacts of the Tax Act (Alternative Minimum Tax valuation allowance) | 76 |
| 0.11 |
|
| Total adjustments | $ | 279 |
| $ | 0.40 |
|
| Diluted EPS, adjusted | | $ | 1.28 |
|
Duke Energy News Release 4
Non-GAAP financial measures
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted diluted EPS and adjusted effective tax rate. Adjusted earnings and adjusted diluted EPS represent income from continuing operations attributable to Duke Energy in dollar and per share amounts, adjusted for the dollar and per-share impact of special items. The adjusted effective tax rate is calculated using pretax earnings and income tax expense, both as adjusted for the impact of special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.
Management believes the presentation of adjusted earnings, adjusted diluted EPS, and the adjusted effective tax rate provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings, adjusted diluted EPS and adjusted effective tax rate are Net Income Attributable to Duke Energy Corporation (GAAP reported earnings), Diluted EPS Attributable to Duke Energy Corporation common stockholders (GAAP reported EPS), and the reported effective tax rate, respectively.
Special items included in the periods presented include the following items, which management believes do not reflect ongoing costs:
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| • | Costs to Achieve Piedmont Merger represents charges that result from the Piedmont acquisition. |
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| • | Regulatory Settlements represents charges related to rate case orders, settlements or other actions of regulators. |
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| • | Sale of Retired Plant represents the loss associated with selling Beckjord Generating Station (Beckjord), a nonregulated generating facility in Ohio. |
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| • | Impairment of Equity Method Investment represents an OTTI of an investment in Constitution. |
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| • | Impacts of the Tax Act represents an AMT valuation allowance recognized related to the Tax Act. |
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders or asset impairments).
Management evaluates segment performance based on segment income and other net loss. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the
Duke Energy News Release 5
Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net loss is segment income and other net loss.
Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net loss and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items, as discussed above.
Duke Energy’s adjusted earnings, adjusted diluted EPS and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 125 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 30,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities, and 3,000 megawatts through its nonregulated Duke Energy Renewables unit.
Duke Energy is transforming its customers’ experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit’s regulated utilities serve approximately 7.7 million retail electric customers in six states - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to more than 1.6 million customers in five states - North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.
Duke Energy was named to Fortune’s 2019 “World’s Most Admired Companies” list, and Forbes’ 2019 “America’s Best Employers” list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
Duke Energy News Release 6
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:
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| ◦ | 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; |
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| ◦ | 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; |
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| ◦ | The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process; |
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| ◦ | The costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; |
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| ◦ | Costs and effects of legal and administrative proceedings, settlements, investigations and claims; |
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| ◦ | Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies; |
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| ◦ | Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs; |
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| ◦ | Advancements in technology; |
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| ◦ | Additional competition in electric and natural gas markets and continued industry consolidation; |
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| ◦ | 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; |
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| ◦ | The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; |
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| ◦ | The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business; |
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| ◦ | Operational interruptions to our natural gas distribution and transmission activities; |
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| ◦ | The availability of adequate interstate pipeline transportation capacity and natural gas supply; |
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| ◦ | The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences; |
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| ◦ | 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; |
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| ◦ | 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; |
Duke Energy News Release 7
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| ◦ | The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions; |
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| ◦ | Credit ratings of the Duke Energy Registrants may be different from what is expected; |
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| ◦ | 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; |
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| ◦ | Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all; |
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| ◦ | 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; |
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| ◦ | The ability to control operation and maintenance costs; |
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| ◦ | The level of creditworthiness of counterparties to transactions; |
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| ◦ | Employee workforce factors, including the potential inability to attract and retain key personnel; |
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| ◦ | The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); |
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| ◦ | The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; |
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| ◦ | The effect of accounting pronouncements issued periodically by accounting standard-setting bodies; |
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| ◦ | The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings; |
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| ◦ | The impacts from potential impairments of goodwill or equity method investment carrying values; and |
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| ◦ | The ability to implement our business strategy, including enhancing existing technology systems. |
Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2018
(Dollars in millions, except per-share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Special Items | | | | |
| | | Reported Earnings | | Costs to Achieve Piedmont Merger | | Regulatory Settlements | | Sale of Retired Plant | | Impairment of Equity Method Investment | | Impacts of the Tax Act | | Total Adjustments | | Adjusted Earnings |
| SEGMENT INCOME | | | | | | | | | | | | | | | | |
| Electric Utilities and Infrastructure | | $ | 750 |
| | $ | — |
| | $ | 66 |
| B | $ | — |
| | $ | — |
| | $ | — |
| | $ | 66 |
| | $ | 816 |
|
| Gas Utilities and Infrastructure | | 116 |
| | — |
| | — |
| | — |
| | 42 |
| D | — |
| | 42 |
| | 158 |
|
| Commercial Renewables | | 20 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 20 |
|
| Total Reportable Segment Income | | 886 |
| | — |
| | 66 |
| | — |
| | 42 |
| | — |
| | 108 |
| | 994 |
|
| Other | | (266 | ) | | 13 |
| A | — |
| | 82 |
| C | — |
| | 76 |
| E | 171 |
| | (95 | ) |
| Net Income Attributable to Duke Energy Corporation | | $ | 620 |
| | $ | 13 |
| | $ | 66 |
| | $ | 82 |
| | $ | 42 |
| | $ | 76 |
| | $ | 279 |
| | $ | 899 |
|
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | | $ | 0.88 |
| | $ | 0.02 |
| | $ | 0.09 |
| | $ | 0.12 |
| | $ | 0.06 |
| | $ | 0.11 |
| | $ | 0.40 |
| | $ | 1.28 |
|
A — Net of $4 million tax benefit. $17 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
B — Net of $20 million tax benefit. $45 million recorded within Impairment Charges, $35 million within Operating Expenses and $6 million within Interest Expense on the Condensed Consolidated Statements of Operations.
C — Net of $25 million tax benefit. $107 million recorded within Losses on Sales of Other Assets and Other, net on the Condensed Consolidated Statements of Operations.
D — Net of $13 million tax benefit. $55 million recorded within Other Income and Expenses on the Condensed Consolidated Statements of Operations.
E — $76 million AMT valuation allowance within Income Tax Expense on the Condensed Consolidated Statements of Operations.
Weighted Average Shares, Diluted (reported and adjusted) — 701 million
DUKE ENERGY CORPORATION
ADJUSTED EFFECTIVE TAX RECONCILIATION
March 2018
(Dollars in millions)
|
| | | | | | | | |
| | | Three Months Ended
March 31, 2018 | |
| | | Balance | | Effective Tax Rate | |
| | | | | | |
| Reported Income From Continuing Operations Before Income Taxes | | $ | 803 |
| | | |
| Costs to Achieve Piedmont Merger | | 17 |
| | | |
| Regulatory Settlements | | 86 |
| | | |
| Sale of Retired Plant | | 107 |
| | | |
| Impairment of Equity Method Investment | | 55 |
| | | |
| Noncontrolling Interests | | (2 | ) | | | |
| Adjusted Pretax Income | | $ | 1,066 |
| | | |
| | | | | | |
| Reported Income Tax Expense From Continuing Operations | | $ | 181 |
| | 22.5 | % | |
| Costs to Achieve Piedmont Merger | | 4 |
| | | |
| Regulatory Settlements | | 20 |
| | | |
| Sale of Retired Plant | | 25 |
| | | |
| Impairment of Equity Method Investment | | 13 |
| | | |
| Impacts of the Tax Act | | (76 | ) | | | |
| Adjusted Tax Expense | | $ | 167 |
| | 15.7 | % | (a) |
| | | | | | |
| (a) Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items. |
DUKE ENERGY CORPORATION
EARNINGS VARIANCES
March 2019 YTD vs. Prior Year |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | Electric Utilities and Infrastructure | | Gas Utilities and Infrastructure | | Commercial Renewables | | Other | | Consolidated |
| (Dollars per share) | | | | |
| 2018 YTD Reported Earnings Per Share, Diluted | $ | 1.08 |
| | | $ | 0.16 |
| | | $ | 0.03 |
| | | $ | (0.39 | ) | | | $ | 0.88 |
| |
| Costs to Achieve Piedmont Merger | — |
| | | — |
| | | — |
| | | 0.02 |
| | | 0.02 |
| |
| Regulatory Settlements | 0.09 |
| | | — |
| | | — |
| | | — |
| | | 0.09 |
| |
| Sale of Retired Plant | — |
| | | — |
| | | — |
| | | 0.12 |
| | | 0.12 |
| |
| Impairment of Equity Method Investment | — |
| | | 0.06 |
| | | — |
| | | — |
| | | 0.06 |
| |
| Impacts of the Tax Act (Alternative Minimum Tax valuation allowance) | — |
| | | — |
| | | — |
| | | 0.11 |
| | | 0.11 |
| |
| 2018 YTD Adjusted Earnings Per Share, Diluted | $ | 1.17 |
| | | $ | 0.22 |
| | | $ | 0.03 |
| | | $ | (0.14 | ) | | | $ | 1.28 |
| |
| Weather | (0.07 | ) | | | — |
| | | — |
| | | — |
| | | (0.07 | ) | |
| Volume | (0.03 | ) | | | — |
| | | — |
| | | — |
| | | (0.03 | ) | |
| Pricing and Riders, excluding rate case impacts | 0.04 |
| | | 0.02 |
| | | — |
| | | — |
| | | 0.06 |
| |
Rate case impacts, net(a) | 0.09 |
| | | — |
| | | — |
| | | — |
| | | 0.09 |
| |
| Operations and maintenance, net of recoverables | (0.01 | ) | | | — |
| | | — |
| | | — |
| | | (0.01 | ) | |
Midstream Gas Pipelines(b) | — |
| | | 0.08 |
| | | — |
| | | — |
| | | 0.08 |
| |
| Duke Energy Renewables | — |
| | | — |
| | | (0.01 | ) | | | — |
| | | (0.01 | ) | |
| Interest Expense | (0.03 | ) | | | — |
| | | — |
| | | (0.01 | ) | | | (0.04 | ) | |
| AFUDC Equity | (0.03 | ) | | | — |
| | | — |
| | | — |
| | | (0.03 | ) | |
Depreciation and amortization(c) | (0.03 | ) | | | — |
| | | — |
| | | — |
| | | (0.03 | ) | |
| Other | (0.03 | ) | | | — |
| | | — |
| | | 0.02 |
| | | (0.01 | ) | |
| Change in share count | (0.04 | ) | | | — |
| | | — |
| | | — |
| | | (0.04 | ) | |
| 2019 YTD Reported Earnings Per Share, Diluted | $ | 1.03 |
| | | $ | 0.32 |
| | | $ | 0.02 |
| | | $ | (0.13 | ) | | | $ | 1.24 |
| |
| |
| Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers except for Commercial Renewables, which uses an effective rate. Weighted average diluted shares outstanding increased from 701 million shares to 727 million. |
| |
| (a) Includes the net impact of the DEC and DEP North Carolina rate cases (+$0.03), DEO and DEK rate cases (+$0.02), and DEF impacts (+$0.04 related to GBRA, SBRA and multi-year rate plan), which is primarily comprised of rate increases partially offset by higher depreciation and amortization expense. |
| (b) Primarily due to a prior period adjustment related to income tax recognition for equity method investments. |
| (c) Excludes rate case impacts. |
|
| | | | | | | |
| March 2019 |
| QUARTERLY HIGHLIGHTS |
| (Unaudited) |
| | |
| | Three Months Ended |
| | March 31, |
| (In millions, except per-share amounts and where noted) | 2019 | | 2018 |
| Earnings Per Share — Basic and Diluted | | | |
| Net income attributable to Duke Energy Corporation common stockholders | | | |
| Basic and diluted | $ | 1.24 |
| | $ | 0.88 |
|
| Weighted average shares outstanding | | | |
| Basic and diluted | 727 | | 701 |
| INCOME (LOSS) BY BUSINESS SEGMENT | | | |
| Electric Utilities and Infrastructure | $ | 750 |
| | $ | 750 |
|
Gas Utilities and Infrastructure(a) | 226 |
| | 116 |
|
| Commercial Renewables | 13 |
| | 20 |
|
| Total Reportable Segment Income | 989 |
| | 886 |
|
Other(b) | (89 | ) | | (266 | ) |
| Net Income Attributable to Duke Energy Corporation | $ | 900 |
| | $ | 620 |
|
| CAPITALIZATION | | | |
| Total Common Equity (%) | 43 | % | | 43 | % |
| Total Debt (%) | 57 | % | | 57 | % |
| | | | |
| Total Debt | $ | 59,211 |
| | $ | 55,950 |
|
| Book Value Per Share | $ | 61.88 |
| | $ | 59.63 |
|
| Actual Shares Outstanding | 728 |
| | 701 |
|
| CAPITAL AND INVESTMENT EXPENDITURES | | | |
| Electric Utilities and Infrastructure | $ | 2,113 |
| | $ | 1,773 |
|
| Gas Utilities and Infrastructure | 364 |
| | 228 |
|
| Commercial Renewables | 90 |
| | 87 |
|
| Other | 63 |
| | 73 |
|
| Total Capital and Investment Expenditures | $ | 2,630 |
| | $ | 2,161 |
|
| | | | |
| | | | |
| (a) Includes an other-than-temporary impairment of an investment in Constitution for the three months ended March 2018 and an adjustment related to the income tax recognition for equity method investments for the three months ended March 31, 2019. This adjustment was immaterial and relates to prior years. |
| (b) Includes costs to achieve the Piedmont merger, the loss associated with selling Beckjord, and an Alternative Minimum Tax valuation allowance recognized related to the Tax Act for the three months ended March 31, 2018. |
|
| | | | | | | |
| DUKE ENERGY CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| (In millions, except per-share amounts) |
| | | | |
| | Three Months Ended March 31, |
| | 2019 | | 2018 |
| Operating Revenues | | | |
| Regulated electric | $ | 5,285 |
| | $ | 5,284 |
|
| Regulated natural gas | 728 |
| | 700 |
|
| Nonregulated electric and other | 150 |
| | 151 |
|
| Total operating revenues | 6,163 |
| | 6,135 |
|
| Operating Expenses | | | |
| Fuel used in electric generation and purchased power | 1,609 |
| | 1,676 |
|
| Cost of natural gas | 327 |
| | 313 |
|
| Operation, maintenance and other | 1,419 |
| | 1,464 |
|
| Depreciation and amortization | 1,089 |
| | 967 |
|
| Property and other taxes | 343 |
| | 316 |
|
| Impairment charges | — |
| | 43 |
|
| Total operating expenses | 4,787 |
| | 4,779 |
|
| Losses on Sales of Other Assets and Other, net | (3 | ) | | (100 | ) |
| Operating Income | 1,373 |
| | 1,256 |
|
| Other Income and Expenses | | | |
| Equity in earnings (losses) of unconsolidated affiliates | 43 |
| | (24 | ) |
| Other income and expenses, net | 115 |
| | 86 |
|
| Total other income and expenses | 158 |
| | 62 |
|
| Interest Expense | 543 |
| | 515 |
|
| Income Before Income Taxes | 988 |
| | 803 |
|
| Income Tax Expense | 95 |
| | 181 |
|
| Net Income | 893 |
| | 622 |
|
| Less: Net (Loss) Income Attributable to Noncontrolling Interests | (7 | ) | | 2 |
|
| Net Income Attributable to Duke Energy Corporation | $ | 900 |
| | $ | 620 |
|
| | | | |
| Earnings Per Share — Basic and Diluted | | | |
| Net income attributable to Duke Energy Corporation common stockholders | | | |
| Basic and diluted | $ | 1.24 |
| | $ | 0.88 |
|
| Weighted average shares outstanding | | | |
| Basic and diluted | 727 |
| | 701 |
|
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
| | | | | | | |
| (In millions) | March 31, 2019 | | December 31, 2018 |
| ASSETS | | | |
| Current Assets | | | |
| Cash and cash equivalents | $ | 377 |
| | $ | 442 |
|
| Receivables (net of allowance for doubtful accounts of $19 at 2019 and $16 at 2018) | 775 |
| | 962 |
|
| Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2019 and $55 at 2018) | 1,981 |
| | 2,172 |
|
| Inventory | 3,102 |
| | 3,084 |
|
| Regulatory assets (includes $52 at 2019 and 2018 related to VIEs) | 1,957 |
| | 2,005 |
|
| Other (includes $152 at 2019 and $162 at 2018 related to VIEs) | 976 |
| | 1,049 |
|
| Total current assets | 9,168 |
| | 9,714 |
|
| Property, Plant and Equipment | | | |
| Cost | 139,377 |
| | 134,458 |
|
| Accumulated depreciation and amortization | (43,992 | ) | | (43,126 | ) |
| Generation facilities to be retired, net | 336 |
| | 362 |
|
| Net property, plant and equipment | 95,721 |
| | 91,694 |
|
| Operating Lease Right-of-Use Assets, net | 1,698 |
| | — |
|
| Other Noncurrent Assets | | | |
| Goodwill | 19,303 |
| | 19,303 |
|
| Regulatory assets (includes $1,032 at 2019 and $1,041 at 2018 related to VIEs) | 13,301 |
| | 13,617 |
|
| Nuclear decommissioning trust funds | 7,374 |
| | 6,720 |
|
| Investments in equity method unconsolidated affiliates | 1,602 |
| | 1,409 |
|
| Other (includes $280 at 2019 and $261 at 2018 related to VIEs) | 2,969 |
| | 2,935 |
|
| Total other noncurrent assets | 44,549 |
| | 43,984 |
|
| Total Assets | $ | 151,136 |
| | $ | 145,392 |
|
| LIABILITIES AND EQUITY | | | |
| Current Liabilities | | | |
| Accounts payable | $ | 2,538 |
| | $ | 3,487 |
|
| Notes payable and commercial paper | 3,029 |
| | 3,410 |
|
| Taxes accrued | 470 |
| | 577 |
|
| Interest accrued | 544 |
| | 559 |
|
| Current maturities of long-term debt (includes $227 at 2019 and 2018 related to VIEs) | 2,501 |
| | 3,406 |
|
| Asset retirement obligations | 779 |
| | 919 |
|
| Regulatory liabilities | 611 |
| | 598 |
|
| Other | 1,810 |
| | 2,085 |
|
| Total current liabilities | 12,282 |
| | 15,041 |
|
| Long-Term Debt (includes $4,065 at 2019 and $3,998 at 2018 related to VIEs) | 53,681 |
| | 51,123 |
|
| Operating Lease Liabilities | 1,488 |
| | — |
|
| Other Noncurrent Liabilities | | | |
| Deferred income taxes | 8,040 |
| | 7,806 |
|
| Asset retirement obligations | 12,256 |
| | 9,548 |
|
| Regulatory liabilities | 15,212 |
| | 14,834 |
|
| Accrued pension and other post-retirement benefit costs | 974 |
| | 988 |
|
| Investment tax credits | 571 |
| | 568 |
|
| Other (includes $212 at 2019 and 2018 related to VIEs) | 1,587 |
| | 1,650 |
|
| Total other noncurrent liabilities | 38,640 |
| | 35,394 |
|
| Commitments and Contingencies | | | |
| Equity | | | |
| Preferred stock, $0.001 par value, 40 million depositary shares authorized and outstanding at 2019 | 974 |
| | — |
|
| Common stock, $0.001 par value, 2 billion shares authorized; 728 million shares outstanding at 2019 and 727 million shares outstanding at 2018 | 1 |
| | 1 |
|
| Additional paid-in capital | 40,823 |
| | 40,795 |
|
| Retained earnings | 3,360 |
| | 3,113 |
|
| Accumulated other comprehensive loss | (128 | ) | | (92 | ) |
| Total Duke Energy Corporation stockholders' equity | 45,030 |
| | 43,817 |
|
| Noncontrolling interests | 15 |
| | 17 |
|
| Total equity | 45,045 |
| | 43,834 |
|
| Total Liabilities and Equity | $ | 151,136 |
| | $ | 145,392 |
|
|
| | | | | | | | |
| DUKE ENERGY CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| (In millions) |
| | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | |
| Net Income | | $ | 893 |
| | $ | 622 |
|
| Adjustments to reconcile net income to net cash provided by operating activities | | 346 |
| | 769 |
|
| Net cash provided by operating activities | | 1,239 |
| | 1,391 |
|
| | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | |
| Net cash used in investing activities | | (2,713 | ) | | (2,264 | ) |
| | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | |
| Net cash provided by financing activities | | 1,433 |
| | 947 |
|
| | | | | |
| Net (decrease) increase in cash, cash equivalents and restricted cash | | (41 | ) | | 74 |
|
| Cash, cash equivalents and restricted cash at beginning of period | | 591 |
| | 505 |
|
| Cash, cash equivalents and restricted cash at end of period | | $ | 550 |
| | $ | 579 |
|
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2019 |
| (In millions) | Electric
Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial Renewables |
| Other |
| Eliminations/Adjustments |
| Duke Energy |
|
| Operating Revenues | | | | | | |
| Regulated electric | $ | 5,329 |
| $ | — |
| $ | — |
| $ | — |
| $ | (44 | ) | $ | 5,285 |
|
| Regulated natural gas | — |
| 752 |
| — |
| — |
| (24 | ) | 728 |
|
| Nonregulated electric and other | — |
| 4 |
| 106 |
| 21 |
| 19 |
| 150 |
|
| Total operating revenues | 5,329 |
| 756 |
| 106 |
| 21 |
| (49 | ) | 6,163 |
|
| Operating Expenses | | | | | | |
| Fuel used in electric generation and purchased power | 1,630 |
| — |
| — |
| — |
| (21 | ) | 1,609 |
|
| Cost of natural gas | — |
| 327 |
| — |
| — |
| — |
| 327 |
|
| Operation, maintenance and other | 1,282 |
| 110 |
| 66 |
| (13 | ) | (26 | ) | 1,419 |
|
| Depreciation and amortization | 947 |
| 65 |
| 40 |
| 38 |
| (1 | ) | 1,089 |
|
| Property and other taxes | 301 |
| 33 |
| 6 |
| 3 |
| — |
| 343 |
|
| Impairment charges | — |
| — |
| — |
| — |
| — |
| — |
|
| Total operating expenses | 4,160 |
| 535 |
| 112 |
| 28 |
| (48 | ) | 4,787 |
|
| Losses on Sales of Other Assets and Other, net | (3 | ) | — |
| — |
| — |
| — |
| (3 | ) |
| Operating Income (Loss) | 1,166 |
| 221 |
| (6 | ) | (7 | ) | (1 | ) | 1,373 |
|
| Other Income and Expenses | | | | | | |
| Equity in earnings (losses) of unconsolidated affiliates | 2 |
| 33 |
| (1 | ) | 9 |
| — |
| 43 |
|
| Other income and expenses, net | 89 |
| 7 |
| (1 | ) | 35 |
| (15 | ) | 115 |
|
| Total Other Income and Expenses | 91 |
| 40 |
| (2 | ) | 44 |
| (15 | ) | 158 |
|
| Interest Expense | 338 |
| 30 |
| 21 |
| 171 |
| (17 | ) | 543 |
|
| Income (Loss) Before Income Taxes | 919 |
| 231 |
| (29 | ) | (134 | ) | 1 |
| 988 |
|
| Income Tax Expense (Benefit) | 169 |
| 5 |
| (35 | ) | (45 | ) | 1 |
| 95 |
|
| Net Income (Loss) | 750 |
| 226 |
| 6 |
| (89 | ) | — |
| 893 |
|
| Less: Net Loss Attributable to Noncontrolling Interest | — |
| — |
| (7 | ) | — |
| — |
| (7 | ) |
| Segment Income / Other Net Loss / Net Income Attributable to Duke Energy Corporation | $ | 750 |
| $ | 226 |
| $ | 13 |
| $ | (89 | ) | $ | — |
| $ | 900 |
|
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2018 |
| (In millions) | Electric
Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial Renewables |
| Other |
| Eliminations/Adjustments |
| Duke Energy |
|
| Operating Revenues | | | | | | |
| Regulated electric | $ | 5,323 |
| $ | — |
| $ | — |
| $ | — |
| $ | (39 | ) | $ | 5,284 |
|
| Regulated natural gas | — |
| 725 |
| — |
| — |
| (25 | ) | 700 |
|
| Nonregulated electric and other | — |
| 2 |
| 101 |
| 35 |
| 13 |
| 151 |
|
| Total operating revenues | 5,323 |
| 727 |
| 101 |
| 35 |
| (51 | ) | 6,135 |
|
| Operating Expenses | | | | | | |
| Fuel used in electric generation and purchased power | 1,685 |
| — |
| — |
| 14 |
| (23 | ) | 1,676 |
|
| Cost of natural gas | — |
| 313 |
| — |
| — |
| — |
| 313 |
|
| Operation, maintenance and other | 1,325 |
| 108 |
| 55 |
| 3 |
| (27 | ) | 1,464 |
|
| Depreciation and amortization | 835 |
| 61 |
| 38 |
| 33 |
| — |
| 967 |
|
| Property and other taxes | 274 |
| 31 |
| 7 |
| 4 |
| — |
| 316 |
|
| Impairment charges | 43 |
| — |
| — |
| — |
| — |
| 43 |
|
| Total operating expenses | 4,162 |
| 513 |
| 100 |
| 54 |
| (50 | ) | 4,779 |
|
| Gains (Losses) on Sales of Other Assets and Other, net | 1 |
| — |
| — |
| (101 | ) | — |
| (100 | ) |
| Operating Income (Loss) | 1,162 |
| 214 |
| 1 |
| (120 | ) | (1 | ) | 1,256 |
|
| Other Income and Expenses | | | | | | |
| Equity in earnings (losses) of unconsolidated affiliates | 2 |
| (40 | ) | — |
| 13 |
| 1 |
| (24 | ) |
| Other income and expenses, net | 86 |
| 5 |
| 2 |
| 1 |
| (8 | ) | 86 |
|
| Total Other Income and Expenses | 88 |
| (35 | ) | 2 |
| 14 |
| (7 | ) | 62 |
|
| Interest Expense | 317 |
| 27 |
| 22 |
| 157 |
| (8 | ) | 515 |
|
| Income (Loss) Before Income Taxes | 933 |
| 152 |
| (19 | ) | (263 | ) | — |
| 803 |
|
| Income Tax Expense (Benefit) | 183 |
| 36 |
| (39 | ) | 1 |
| — |
| 181 |
|
| Net Income (Loss) | 750 |
| 116 |
| 20 |
| (264 | ) | — |
| 622 |
|
| Less: Net Income Attributable to Noncontrolling Interest | — |
| — |
| — |
| 2 |
| — |
| 2 |
|
| Segment Income / Other Net Loss / Net Income Attributable to Duke Energy Corporation | $ | 750 |
| $ | 116 |
| $ | 20 |
| $ | (266 | ) | $ | — |
| $ | 620 |
|
| Special Items | 66 |
| 42 |
| — |
| 171 |
| — |
| 279 |
|
Adjusted Earnings(a) | $ | 816 |
| $ | 158 |
| $ | 20 |
| $ | (95 | ) | $ | — |
| $ | 899 |
|
| |
| (a) | See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings. |
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations/
Adjustments |
| Duke Energy |
|
| Current Assets | | | | | | |
| Cash and cash equivalents | $ | 72 |
| $ | 3 |
| $ | 7 |
| $ | 296 |
| $ | (1 | ) | $ | 377 |
|
| Receivables, net | 444 |
| 241 |
| 77 |
| 14 |
| (1 | ) | 775 |
|
| Receivables of variable interest entities, net | 1,981 |
| — |
| — |
| — |
| — |
| 1,981 |
|
| Receivables from affiliated companies | 76 |
| 19 |
| 1,381 |
| 492 |
| (1,968 | ) | — |
|
| Notes receivable from affiliated companies | 126 |
| 155 |
| — |
| 1,248 |
| (1,529 | ) | — |
|
| Inventory | 2,993 |
| 50 |
| 33 |
| 27 |
| (1 | ) | 3,102 |
|
| Regulatory assets | 1,799 |
| 29 |
| — |
| 129 |
| — |
| 1,957 |
|
| Other | 156 |
| 19 |
| 134 |
| 717 |
| (50 | ) | 976 |
|
| Total current assets | 7,647 |
| 516 |
| 1,632 |
| 2,923 |
| (3,550 | ) | 9,168 |
|
| Property, Plant and Equipment | | | | | | |
| Cost | 121,794 |
| 10,781 |
| 4,614 |
| 2,230 |
| (42 | ) | 139,377 |
|
| Accumulated depreciation and amortization | (39,513 | ) | (2,376 | ) | (889 | ) | (1,215 | ) | 1 |
| (43,992 | ) |
| Generation facilities to be retired, net | 336 |
| — |
| — |
| — |
| — |
| 336 |
|
| Net property, plant and equipment | 82,617 |
| 8,405 |
| 3,725 |
| 1,015 |
| (41 | ) | 95,721 |
|
Operating Lease Right-of-Use Assets, net
| 1,323 |
| 27 |
| 80 |
| 268 |
| — |
| 1,698 |
|
| Other Noncurrent Assets | | | | | | |
| Goodwill | 17,379 |
| 1,924 |
| — |
| — |
| — |
| 19,303 |
|
| Regulatory assets | 12,187 |
| 631 |
| — |
| 483 |
| — |
| 13,301 |
|
| Nuclear decommissioning trust funds | 7,374 |
| — |
| — |
| — |
| — |
| 7,374 |
|
| Investments in equity method unconsolidated affiliates | 103 |
| 1,184 |
| 199 |
| 116 |
| — |
| 1,602 |
|
| Investment in consolidated subsidiaries | 242 |
| 19 |
| 4 |
| 60,223 |
| (60,488 | ) | — |
|
| Other | 2,112 |
| 75 |
| 123 |
| 1,293 |
| (634 | ) | 2,969 |
|
| Total other noncurrent assets | 39,397 |
| 3,833 |
| 326 |
| 62,115 |
| (61,122 | ) | 44,549 |
|
| Total Assets | 130,984 |
| 12,781 |
| 5,763 |
| 66,321 |
| (64,713 | ) | 151,136 |
|
| Segment reclassifications, intercompany balances and other | (578 | ) | (142 | ) | (1,385 | ) | (62,785 | ) | 64,890 |
| — |
|
| Segment Assets | $ | 130,406 |
| $ | 12,639 |
| $ | 4,378 |
| $ | 3,536 |
| $ | 177 |
| $ | 151,136 |
|
DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations/
Adjustments |
| Duke Energy |
|
| Current Liabilities | | | | | | |
| Accounts payable | $ | 1,815 |
| $ | 223 |
| $ | 47 |
| $ | 454 |
| $ | (1 | ) | $ | 2,538 |
|
| Accounts payable to affiliated companies | 576 |
| 35 |
| 11 |
| 1,277 |
| (1,899 | ) | — |
|
| Notes payable to affiliated companies | 1,123 |
| 195 |
| 15 |
| 215 |
| (1,548 | ) | — |
|
| Notes payable and commercial paper | — |
| — |
| 5 |
| 3,024 |
| — |
| 3,029 |
|
| Taxes accrued | 418 |
| 48 |
| (21 | ) | 24 |
| 1 |
| 470 |
|
| Interest accrued | 378 |
| 37 |
| 1 |
| 129 |
| (1 | ) | 544 |
|
| Current maturities of long-term debt | 1,102 |
| 377 |
| 174 |
| 850 |
| (2 | ) | 2,501 |
|
| Asset retirement obligations | 779 |
| — |
| — |
| — |
| — |
| 779 |
|
| Regulatory liabilities | 515 |
| 94 |
| — |
| 2 |
| — |
| 611 |
|
| Other | 1,358 |
| 54 |
| 30 |
| 469 |
| (101 | ) | 1,810 |
|
| Total current liabilities | 8,064 |
| 1,063 |
| 262 |
| 6,444 |
| (3,551 | ) | 12,282 |
|
| Long-Term Debt | 33,421 |
| 2,429 |
| 1,584 |
| 16,287 |
| (40 | ) | 53,681 |
|
| Long-Term Debt Payable to Affiliated Companies | 618 |
| 7 |
| 9 |
| — |
| (634 | ) | — |
|
| Operating Lease Liabilities | 1,195 |
| 26 |
| 96 |
| 171 |
| — |
| 1,488 |
|
| Other Noncurrent Liabilities | | | | | | |
| Deferred income taxes | 9,711 |
| 905 |
| (263 | ) | (2,314 | ) | 1 |
| 8,040 |
|
| Asset retirement obligations | 12,075 |
| 57 |
| 124 |
| — |
| — |
| 12,256 |
|
| Regulatory liabilities | 13,622 |
| 1,563 |
| — |
| 28 |
| (1 | ) | 15,212 |
|
| Accrued pension and other post-retirement benefit costs | 652 |
| 26 |
| 3 |
| 292 |
| 1 |
| 974 |
|
| Investment tax credits | 569 |
| 2 |
| — |
| — |
| — |
| 571 |
|
| Other | 857 |
| 211 |
| 228 |
| 293 |
| (2 | ) | 1,587 |
|
| Total other noncurrent liabilities | 37,486 |
| 2,764 |
| 92 |
| (1,701 | ) | (1 | ) | 38,640 |
|
| Equity | | | | | | |
| Total Duke Energy Corporation stockholders' equity | 50,200 |
| 6,492 |
| 3,708 |
| 45,118 |
| (60,488 | ) | 45,030 |
|
| Noncontrolling interests | — |
| — |
| 12 |
| 2 |
| 1 |
| 15 |
|
| Total equity | 50,200 |
| 6,492 |
| 3,720 |
| 45,120 |
| (60,487 | ) | 45,045 |
|
| Total Liabilities and Equity | 130,984 |
| 12,781 |
| 5,763 |
| 66,321 |
| (64,713 | ) | 151,136 |
|
| Segment reclassifications, intercompany balances and other | (578 | ) | (142 | ) | (1,385 | ) | (62,785 | ) | 64,890 |
| — |
|
| Segment Liabilities and Equity | $ | 130,406 |
| $ | 12,639 |
| $ | 4,378 |
| $ | 3,536 |
| $ | 177 |
| $ | 151,136 |
|
ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING SEGMENT INCOME
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2019 |
| (In millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy Ohio(a) |
| Duke
Energy
Indiana |
| Eliminations/ Other |
| Electric Utilities and Infrastructure |
|
| Operating Revenues | $ | 1,744 |
| $ | 1,484 |
| $ | 1,086 |
| $ | 355 |
| $ | 768 |
| $ | (108 | ) | $ | 5,329 |
|
| Operating Expenses | | | | | | | |
| Fuel used in electric generation and purchased power | 472 |
| 515 |
| 410 |
| 93 |
| 257 |
| (117 | ) | 1,630 |
|
| Operation, maintenance and other | 435 |
| 331 |
| 228 |
| 101 |
| 187 |
| — |
| 1,282 |
|
| Depreciation and amortization | 317 |
| 290 |
| 165 |
| 41 |
| 131 |
| 3 |
| 947 |
|
| Property and other taxes | 80 |
| 44 |
| 93 |
| 64 |
| 19 |
| 1 |
| 301 |
|
| Total operating expenses | 1,304 |
| 1,180 |
| 896 |
| 299 |
| 594 |
| (113 | ) | 4,160 |
|
| Losses on Sales of Other Assets and Other, net | — |
| — |
| — |
| — |
| (3 | ) | — |
| (3 | ) |
| Operating Income | 440 |
| 304 |
| 190 |
| 56 |
| 171 |
| 5 |
| 1,166 |
|
Other Income and Expenses, net(b) | 31 |
| 24 |
| 13 |
| 6 |
| 19 |
| (2 | ) | 91 |
|
| Interest Expense | 110 |
| 77 |
| 82 |
| 22 |
| 43 |
| 4 |
| 338 |
|
| Income Before Income Taxes | 361 |
| 251 |
| 121 |
| 40 |
| 147 |
| (1 | ) | 919 |
|
| Income Tax Expense | 64 |
| 46 |
| 23 |
| 4 |
| 36 |
| (4 | ) | 169 |
|
Segment Income | $ | 297 |
| $ | 205 |
| $ | 98 |
| $ | 36 |
| $ | 111 |
| $ | 3 |
| $ | 750 |
|
| |
| (a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes an equity component of allowance for funds used during construction of $9 million for Duke Energy Carolinas, $14 million for Duke Energy Progress, $1 million for Duke Energy Florida, $3 million for Duke Energy Ohio and $4 million for Duke Energy Indiana. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy Ohio(a) |
| Duke Energy Indiana |
| Eliminations/ Adjustments(b) |
| Electric Utilities and Infrastructure |
|
| Current Assets | | | | | | | |
| Cash and cash equivalents | $ | — |
| $ | 30 |
| $ | 8 |
| $ | 14 |
| $ | 20 |
| $ | — |
| $ | 72 |
|
| Receivables, net | 166 |
| 42 |
| 85 |
| 99 |
| 50 |
| 2 |
| 444 |
|
| Receivables of variable interest entities, net | 630 |
| 495 |
| 322 |
| — |
| — |
| 534 |
| 1,981 |
|
| Receivables from affiliated companies | 88 |
| 28 |
| 34 |
| 60 |
| 102 |
| (236 | ) | 76 |
|
| Notes receivable from affiliated companies | — |
| 38 |
| — |
| 298 |
| — |
| (210 | ) | 126 |
|
| Inventory | 1,007 |
| 959 |
| 505 |
| 86 |
| 435 |
| 1 |
| 2,993 |
|
| Regulatory assets | 560 |
| 622 |
| 454 |
| 13 |
| 151 |
| (1 | ) | 1,799 |
|
| Other | 31 |
| 45 |
| 55 |
| 2 |
| 23 |
| — |
| 156 |
|
| Total current assets | 2,482 |
| 2,259 |
| 1,463 |
| 572 |
| 781 |
| 90 |
| 7,647 |
|
| Property, Plant and Equipment | | | | | | | |
| Cost | 46,929 |
| 33,188 |
| 19,111 |
| 6,421 |
| 15,633 |
| 512 |
| 121,794 |
|
| Accumulated depreciation and amortization | (15,899 | ) | (11,635 | ) | (5,003 | ) | (1,950 | ) | (5,021 | ) | (5 | ) | (39,513 | ) |
| Generation facilities to be retired, net | — |
| 336 |
| — |
| — |
| — |
| — |
| 336 |
|
| Net property, plant and equipment | 31,030 |
| 21,889 |
| 14,108 |
| 4,471 |
| 10,612 |
| 507 |
| 82,617 |
|
| Operating Lease Right-of-Use Assets, net | 146 |
| 388 |
| 447 |
| 22 |
| 61 |
| 259 |
| 1,323 |
|
| Other Noncurrent Assets | | | | | | | |
| Goodwill | — |
| — |
| — |
| 596 |
| — |
| 16,783 |
| 17,379 |
|
| Regulatory assets | 3,429 |
| 4,041 |
| 2,316 |
| 370 |
| 981 |
| 1,050 |
| 12,187 |
|
| Nuclear decommissioning trust funds | 3,913 |
| 2,744 |
| 717 |
| — |
| — |
| — |
| 7,374 |
|
| Investments in equity method unconsolidated affiliates | — |
| — |
| — |
| — |
| — |
| 103 |
| 103 |
|
| Investment in consolidated subsidiaries | 48 |
| 13 |
| 2 |
| 177 |
| 1 |
| 1 |
| 242 |
|
| Other | 1,027 |
| 628 |
| 318 |
| 37 |
| 200 |
| (98 | ) | 2,112 |
|
| Total other noncurrent assets | 8,417 |
| 7,426 |
| 3,353 |
| 1,180 |
| 1,182 |
| 17,839 |
| 39,397 |
|
| Total Assets | 42,075 |
| 31,962 |
| 19,371 |
| 6,245 |
| 12,636 |
| 18,695 |
| 130,984 |
|
| Segment reclassifications, intercompany balances and other | (326 | ) | (157 | ) | (46 | ) | (187 | ) | (73 | ) | 211 |
| (578 | ) |
| Reportable Segment Assets | $ | 41,749 |
| $ | 31,805 |
| $ | 19,325 |
| $ | 6,058 |
| $ | 12,563 |
| $ | 18,906 |
| $ | 130,406 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Duke
Energy
Carolinas |
| Duke
Energy
Progress |
| Duke
Energy
Florida |
| Duke Energy Ohio(a) |
| Duke
Energy
Indiana |
| Eliminations/
Adjustments(b) |
| Electric Utilities and Infrastructure |
|
| Current Liabilities | | | | | | | |
| Accounts payable | $ | 643 |
| $ | 363 |
| $ | 417 |
| $ | 193 |
| $ | 198 |
| $ | 1 |
| $ | 1,815 |
|
| Accounts payable to affiliated companies | 248 |
| 221 |
| 29 |
| 13 |
| 72 |
| (7 | ) | 576 |
|
| Notes payable to affiliated companies | 745 |
| — |
| 399 |
| 34 |
| 136 |
| (191 | ) | 1,123 |
|
| Taxes accrued | 82 |
| 50 |
| 95 |
| 134 |
| 63 |
| (6 | ) | 418 |
|
| Interest accrued | 134 |
| 87 |
| 74 |
| 30 |
| 53 |
| — |
| 378 |
|
| Current maturities of long-term debt | 7 |
| 5 |
| 470 |
| 524 |
| 3 |
| 93 |
| 1,102 |
|
| Asset retirement obligations | 209 |
| 452 |
| 4 |
| 6 |
| 108 |
| — |
| 779 |
|
| Regulatory liabilities | 200 |
| 176 |
| 83 |
| 30 |
| 27 |
| (1 | ) | 515 |
|
| Other | 414 |
| 346 |
| 426 |
| 66 |
| 92 |
| 14 |
| 1,358 |
|
| Total current liabilities | 2,682 |
| 1,700 |
| 1,997 |
| 1,030 |
| 752 |
| (97 | ) | 8,064 |
|
| Long-Term Debt | 10,658 |
| 8,893 |
| 6,795 |
| 1,894 |
| 3,569 |
| 1,612 |
| 33,421 |
|
| Long-Term Debt Payable to Affiliated Companies | 300 |
| 150 |
| — |
| 18 |
| 150 |
| — |
| 618 |
|
| Operating Lease Liabilities | 123 |
| 361 |
| 387 |
| 21 |
| 57 |
| 246 |
| 1,195 |
|
| Other Noncurrent Liabilities | | | | | | | |
| Deferred income taxes | 3,816 |
| 2,184 |
| 2,052 |
| 595 |
| 1,050 |
| 14 |
| 9,711 |
|
| Asset retirement obligations | 5,219 |
| 5,471 |
| 579 |
| 49 |
| 611 |
| 146 |
| 12,075 |
|
| Regulatory liabilities | 6,325 |
| 4,093 |
| 1,023 |
| 471 |
| 1,709 |
| 1 |
| 13,622 |
|
| Accrued pension and other post-retirement benefit costs | 97 |
| 235 |
| 251 |
| 57 |
| 113 |
| (101 | ) | 652 |
|
| Investment tax credits | 235 |
| 141 |
| 42 |
| 3 |
| 147 |
| 1 |
| 569 |
|
| Other | 645 |
| 91 |
| 53 |
| 64 |
| 29 |
| (25 | ) | 857 |
|
| Total other noncurrent liabilities | 16,337 |
| 12,215 |
| 4,000 |
| 1,239 |
| 3,659 |
| 36 |
| 37,486 |
|
| Equity | 11,975 |
| 8,643 |
| 6,192 |
| 2,043 |
| 4,449 |
| 16,898 |
| 50,200 |
|
| Total Liabilities and Equity | 42,075 |
| 31,962 |
| 19,371 |
| 6,245 |
| 12,636 |
| 18,695 |
| 130,984 |
|
| Segment reclassifications, intercompany balances and other | (326 | ) | (157 | ) | (46 | ) | (187 | ) | (73 | ) | 211 |
| (578 | ) |
| Reportable Segment Liabilities and Equity | $ | 41,749 |
| $ | 31,805 |
| $ | 19,325 |
| $ | 6,058 |
| $ | 12,563 |
| $ | 18,906 |
| $ | 130,406 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING SEGMENT INCOME
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2019 |
| (In millions) | Duke Energy
Ohio(a) |
| Piedmont Natural Gas LDC |
| Midstream Pipelines and Storage(b) |
| Eliminations/ Adjustments |
| Gas
Utilities and Infrastructure |
|
| Operating Revenues | $ | 176 |
| $ | 579 |
| $ | — |
| $ | 1 |
| $ | 756 |
|
| Operating Expenses | | | | | |
| Cost of natural gas | 54 |
| 273 |
| — |
| — |
| 327 |
|
| Operation, maintenance and other | 31 |
| 79 |
| 2 |
| (2 | ) | 110 |
|
| Depreciation and amortization | 22 |
| 42 |
| — |
| 1 |
| 65 |
|
| Property and other taxes | 20 |
| 12 |
| — |
| 1 |
| 33 |
|
| Total operating expenses | 127 |
| 406 |
| 2 |
| — |
| 535 |
|
| Operating Income (Loss) | 49 |
| 173 |
| (2 | ) | 1 |
| 221 |
|
| Other Income and Expenses | | | | | |
| Equity in earnings of unconsolidated affiliates | — |
| — |
| 33 |
| — |
| 33 |
|
| Other income and expenses, net | 3 |
| 4 |
| — |
| — |
| 7 |
|
| Total other income and expenses | 3 |
| 4 |
| 33 |
| — |
| 40 |
|
| Interest Expense | 7 |
| 22 |
| — |
| 1 |
| 30 |
|
| Income Before Income Taxes | 45 |
| 155 |
| 31 |
| — |
| 231 |
|
| Income Tax Expense | 10 |
| 36 |
| (38 | ) | (3 | ) | 5 |
|
| Segment Income | $ | 35 |
| $ | 119 |
| $ | 69 |
| $ | 3 |
| $ | 226 |
|
| |
| (a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities. |
GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS — ASSETS
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Duke Energy Ohio(a) |
| Piedmont Natural Gas LDC |
| Midstream Pipelines and Storage |
| Eliminations/
Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Assets | | | | | |
| Cash and cash equivalents | $ | 3 |
| $ | — |
| $ | — |
| $ | — |
| $ | 3 |
|
| Receivables, net | — |
| 241 |
| — |
| — |
| 241 |
|
| Receivables from affiliated companies | 16 |
| 72 |
| — |
| (69 | ) | 19 |
|
| Notes receivable from affiliated companies | 171 |
| — |
| — |
| (16 | ) | 155 |
|
| Inventory | 25 |
| 25 |
| — |
| — |
| 50 |
|
| Regulatory assets | 1 |
| 28 |
| — |
| — |
| 29 |
|
| Other | — |
| 19 |
| — |
| — |
| 19 |
|
| Total current assets | 216 |
| 385 |
| — |
| (85 | ) | 516 |
|
| Property, Plant and Equipment | | | | | |
| Cost | 3,121 |
| 7,660 |
| — |
| — |
| 10,781 |
|
| Accumulated depreciation and amortization | (789 | ) | (1,588 | ) | — |
| 1 |
| (2,376 | ) |
| Net property, plant and equipment | 2,332 |
| 6,072 |
| — |
| 1 |
| 8,405 |
|
| Operating Lease Right-of-Use Assets, net | — |
| 27 |
| — |
| — |
| 27 |
|
| Other Noncurrent Assets | | | | | |
| Goodwill | 324 |
| 49 |
| — |
| 1,551 |
| 1,924 |
|
| Regulatory assets | 176 |
| 289 |
| — |
| 166 |
| 631 |
|
| Investments in equity method unconsolidated affiliates | — |
| — |
| 1,183 |
| 1 |
| 1,184 |
|
| Investment in consolidated subsidiaries | — |
| — |
| — |
| 19 |
| 19 |
|
| Other | 7 |
| 51 |
| 17 |
| — |
| 75 |
|
| Total other noncurrent assets | 507 |
| 389 |
| 1,200 |
| 1,737 |
| 3,833 |
|
| Total Assets | 3,055 |
| 6,873 |
| 1,200 |
| 1,653 |
| 12,781 |
|
| Segment reclassifications, intercompany balances and other | (4 | ) | (34 | ) | (9 | ) | (95 | ) | (142 | ) |
| Reportable Segment Assets | $ | 3,051 |
| $ | 6,839 |
| $ | 1,191 |
| $ | 1,558 |
| $ | 12,639 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS — LIABILITIES AND EQUITY
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | March 31, 2019 |
| (In millions) | Duke Energy Ohio(a) |
| Piedmont Natural Gas LDC |
| Midstream Pipelines and Storage |
| Eliminations/ Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Liabilities | | | | | |
| Accounts payable | $ | 62 |
| $ | 161 |
| $ | — |
| $ | — |
| $ | 223 |
|
| Accounts payable to affiliated companies | 4 |
| 39 |
| 62 |
| (70 | ) | 35 |
|
| Notes payable to affiliated companies | 11 |
| 201 |
| — |
| (17 | ) | 195 |
|
| Taxes accrued | 12 |
| 37 |
| — |
| (1 | ) | 48 |
|
| Interest accrued | 13 |
| 25 |
| — |
| (1 | ) | 37 |
|
| Current maturities of long-term debt | 27 |
| 350 |
| — |
| — |
| 377 |
|
| Regulatory liabilities | 21 |
| 73 |
| — |
| — |
| 94 |
|
| Other | 2 |
| 49 |
| (1 | ) | 4 |
| 54 |
|
| Total current liabilities | 152 |
| 935 |
| 61 |
| (85 | ) | 1,063 |
|
| Long-Term Debt | 490 |
| 1,788 |
| — |
| 151 |
| 2,429 |
|
| Long-Term Debt Payable to Affiliated Companies | 7 |
| — |
| — |
| — |
| 7 |
|
| Operating Lease Liabilities | — |
| 26 |
| — |
| — |
| 26 |
|
| Other Noncurrent Liabilities | | | | | |
| Deferred income taxes | 263 |
| 560 |
| 83 |
| (1 | ) | 905 |
|
| Asset retirement obligations | 37 |
| 19 |
| — |
| 1 |
| 57 |
|
| Regulatory liabilities | 368 |
| 1,179 |
| — |
| 16 |
| 1,563 |
|
| Accrued pension and other post-retirement benefit costs | 23 |
| 4 |
| — |
| (1 | ) | 26 |
|
| Investment tax credits | 2 |
| 1 |
| — |
| (1 | ) | 2 |
|
| Other | 42 |
| 154 |
| 15 |
| — |
| 211 |
|
| Total other noncurrent liabilities | 735 |
| 1,917 |
| 98 |
| 14 |
| 2,764 |
|
| Equity | 1,671 |
| 2,207 |
| 1,041 |
| 1,573 |
| 6,492 |
|
| Total Liabilities and Equity | 3,055 |
| 6,873 |
| 1,200 |
| 1,653 |
| 12,781 |
|
| Segment reclassifications, intercompany balances and other | (4 | ) | (34 | ) | (9 | ) | (95 | ) | (142 | ) |
| Reportable Segment Liabilities and Equity | $ | 3,051 |
| $ | 6,839 |
| $ | 1,191 |
| $ | 1,558 |
| $ | 12,639 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
|
| | | | | | | | | | | | |
| Electric Utilities and Infrastructure |
| Quarterly Highlights |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
Gigawatt-hour (GWh) Sales (1) | | | | | | | |
| | Residential | 22,218 |
| | 23,741 |
| | (6.4 | %) | | (1.2 | %) |
| | General Service | 17,917 |
| | 18,440 |
| | (2.8 | %) | | (1.2 | %) |
| | Industrial | 12,048 |
| | 12,104 |
| | (0.5 | %) | | 0.3 | % |
| | Other Energy Sales | 145 |
| | 140 |
| | 3.6 | % | | |
| | Unbilled Sales | (1,336 | ) | | (1,875 | ) | | 28.7 | % | | n/a |
|
| | Total Retail Sales | 50,992 |
| | 52,550 |
| | (3.0 | %) | | (0.8 | %) |
| | Wholesale and Other | 9,702 |
| | 10,979 |
| | (11.6 | %) | | |
| | Total Consolidated Electric Sales — Electric Utilities and Infrastructure | 60,694 |
| | 63,529 |
| | (4.5 | %) | | |
| | | | | | | | | |
| Average Number of Customers (Electric) | | | | | | | |
| | Residential | 6,709,086 |
| | 6,603,814 |
| | 1.6 | % | | |
| | General Service | 988,438 |
| | 979,220 |
| | 0.9 | % | | |
| | Industrial | 17,398 |
| | 17,600 |
| | (1.1 | %) | | |
| | Other Energy Sales | 28,556 |
| | 23,475 |
| | 21.6 | % | | |
| | Total Retail Customers | 7,743,478 |
| | 7,624,109 |
| | 1.6 | % | | |
| | Wholesale and Other | 51 |
| | 54 |
| | (5.6 | %) | | |
| | Total Average Number of Customers — Electric Utilities and Infrastructure | 7,743,529 |
| | 7,624,163 |
| | 1.6 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 11,486 |
| | 17,738 |
| | (35.2 | %) | | |
| | Nuclear | 18,590 |
| | 18,505 |
| | 0.5 | % | | |
| | Hydro | 1,053 |
| | 754 |
| | 39.7 | % | | |
| | Oil and Natural Gas | 17,649 |
| | 16,317 |
| | 8.2 | % | | |
| | Renewable Energy | 125 |
| | 96 |
| | 30.2 | % | | |
| | Total Generation (4) | 48,903 |
| | 53,410 |
| | (8.4 | %) | | |
| | Purchased Power and Net Interchange (5) | 14,912 |
| | 13,920 |
| | 7.1 | % | | |
| | Total Sources of Energy | 63,815 |
| | 67,330 |
| | (5.2 | %) | | |
| | Less: Line Loss and Other | 3,121 |
| | 3,801 |
| | (17.9 | %) | | |
| | Total GWh Sources | 60,694 |
| | 63,529 |
| | (4.5 | %) | | |
| | | | | | | | | |
Owned Megawatt (MW) Capacity (3) | | | | | | | |
| | Summer | 50,888 |
| | 49,511 |
| | | | |
| | Winter | 54,574 |
| | 53,003 |
| | | | |
Nuclear Capacity Factor (%) (6) | 98 |
| | 96 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
| | (6) Statistics reflect 100 percent of jointly owned stations. |
| | | | | | | | | |
|
| | | | | | | | | | | | |
| Duke Energy Carolinas |
| Quarterly Highlights |
| Supplemental Electric Utilities and Infrastructure Information |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 |
| 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
GWh Sales (1) | | | | | | | |
| | Residential | 7,755 |
| | 8,284 |
| | (6.4 | %) | | |
| | General Service | 6,822 |
| | 6,946 |
| | (1.8 | %) | | |
| | Industrial | 4,934 |
| | 4,984 |
| | (1.0 | %) | | |
| | Other Energy Sales | 80 |
| | 75 |
| | 6.7 | % | | |
| | Unbilled Sales | (355 | ) | | (523 | ) | | 32.1 | % | | |
| | Total Retail Sales | 19,236 |
| | 19,766 |
| | (2.7 | %) | | (0.9 | %) |
| | Wholesale and Other | 2,592 |
| | 2,861 |
| | (9.4 | %) | | |
| | Total Consolidated Electric Sales — Duke Energy Carolinas | 21,828 |
| | 22,627 |
| | (3.5 | %) | | |
| | | | | | | | | |
| Average Number of Customers | | | | | | | |
| | Residential | 2,244,914 |
| | 2,202,857 |
| | 1.9 | % | | |
| | General Service | 360,183 |
| | 356,100 |
| | 1.1 | % | | |
| | Industrial | 6,131 |
| | 6,206 |
| | (1.2 | %) | | |
| | Other Energy Sales | 20,522 |
| | 15,480 |
| | 32.6 | % | | |
| | Total Retail Customers | 2,631,750 |
| | 2,580,643 |
| | 2.0 | % | | |
| | Wholesale and Other | 20 |
| | 22 |
| | (9.1 | %) | | |
| | Total Average Number of Customers — Duke Energy Carolinas | 2,631,770 |
| | 2,580,665 |
| | 2.0 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 3,222 |
| | 6,250 |
| | (48.4 | %) | | |
| | Nuclear | 11,466 |
| | 11,638 |
| | (1.5 | %) | | |
| | Hydro | 779 |
| | 525 |
| | 48.4 | % | | |
| | Oil and Natural Gas | 4,081 |
| | 3,152 |
| | 29.5 | % | | |
| | Renewable Energy | 34 |
| | 29 |
| | 17.2 | % | | |
| | Total Generation (4) | 19,582 |
| | 21,594 |
| | (9.3 | %) | | |
| | Purchased Power and Net Interchange (5) | 2,902 |
| | 2,317 |
| | 25.2 | % | | |
| | Total Sources of Energy | 22,484 |
| | 23,911 |
| | (6.0 | %) | | |
| | Less: Line Loss and Other | 656 |
| | 1,284 |
| | (48.9 | %) | | |
| | Total GWh Sources | 21,828 |
| | 22,627 |
| | (3.5 | %) | | |
| | | | | | | | | |
Owned MW Capacity (3) | | | | | | | |
| | Summer | 20,209 |
| | 19,574 |
| | | | |
| | Winter | 21,137 |
| | 20,385 |
| | | | |
Nuclear Capacity Factor (%) (6) | 100 |
| | 99 |
| | | | |
| | | | | | | | | |
| Heating and Cooling Degree Days | | | | | | | |
| | Actual | | | | | | | |
| | Heating Degree Days | 1,603 |
| | 1,721 |
| | (6.9 | %) | | |
| | Cooling Degree Days | 4 |
| | 10 |
| | (60.0 | %) | | |
| | | | | | | | | |
| | Variance from Normal | | | | | | | |
| | Heating Degree Days | (6.9 | %) | | (1.3 | %) | | | | |
| | Cooling Degree Days | (46.0 | %) | | 56.4 | % | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
| | (6) Statistics reflect 100 percent of jointly owned stations. |
|
| | | | | | | | | | | | |
| Duke Energy Progress |
| Quarterly Highlights |
| Supplemental Electric Utilities and Infrastructure Information |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
GWh Sales (1) | | | | | | | |
| | Residential | 4,898 |
| | 5,500 |
| | (10.9 | %) | | |
| | General Service | 3,538 |
| | 3,732 |
| | (5.2 | %) | | |
| | Industrial | 2,501 |
| | 2,437 |
| | 2.6 | % | | |
| | Other Energy Sales | 19 |
| | 19 |
| | — | % | | |
| | Unbilled Sales | (364 | ) | | (567 | ) | | 35.8 | % | | |
| | Total Retail Sales | 10,592 |
| | 11,121 |
| | (4.8 | %) | | (1.8 | %) |
| | Wholesale and Other | 5,756 |
| | 6,105 |
| | (5.7 | %) | | |
| | Total Consolidated Electric Sales — Duke Energy Progress | 16,348 |
| | 17,226 |
| | (5.1 | %) | | |
| | | | | | | | | |
| Average Number of Customers | | | | | | | |
| | Residential | 1,341,886 |
| | 1,323,129 |
| | 1.4 | % | | |
| | General Service | 235,425 |
| | 233,307 |
| | 0.9 | % | | |
| | Industrial | 4,047 |
| | 4,060 |
| | (0.3 | %) | | |
| | Other Energy Sales | 1,417 |
| | 1,451 |
| | (2.3 | %) | | |
| | Total Retail Customers | 1,582,775 |
| | 1,561,947 |
| | 1.3 | % | | |
| | Wholesale and Other | 14 |
| | 14 |
| | — | % | | |
| | Total Average Number of Customers — Duke Energy Progress | 1,582,789 |
| | 1,561,961 |
| | 1.3 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 1,781 |
| | 2,303 |
| | (22.7 | %) | | |
| | Nuclear | 7,124 |
| | 6,867 |
| | 3.7 | % | | |
| | Hydro | 252 |
| | 209 |
| | 20.6 | % | | |
| | Oil and Natural Gas | 5,438 |
| | 6,199 |
| | (12.3 | %) | | |
| | Renewable Energy | 46 |
| | 54 |
| | (14.8 | %) | | |
| | Total Generation (4) | 14,641 |
| | 15,632 |
| | (6.3 | %) | | |
| | Purchased Power and Net Interchange (5) | 2,201 |
| | 2,235 |
| | (1.5 | %) | | |
| | Total Sources of Energy | 16,842 |
| | 17,867 |
| | (5.7 | %) | | |
| | Less: Line Loss and Other | 494 |
| | 641 |
| | (22.9 | %) | | |
| | Total GWh Sources | 16,348 |
| | 17,226 |
| | (5.1 | %) | | |
| | | | | | | | | |
Owned MW Capacity (3) | | | | | | | |
| | Summer | 12,779 |
| | 12,813 |
| | | | |
| | Winter | 13,942 |
| | 14,016 |
| | | | |
Nuclear Capacity Factor (%) (6) | 92 |
| | 90 |
| | | | |
| | | | | | | | | |
| Heating and Cooling Degree Days | | | | | | | |
| | Actual | | | | | | | |
| | Heating Degree Days | 1,483 |
| | 1,614 |
| | (8.1 | %) | | |
| | Cooling Degree Days | 6 |
| | 23 |
| | (73.9 | %) | | |
| | | | | | | | | |
| | Variance from Normal | | | | | | | |
| | Heating Degree Days | (7.8 | %) | | (0.1 | %) | | | | |
| | Cooling Degree Days | (45.5 | %) | | 139.2 | % | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
| | (6) Statistics reflect 100 percent of jointly owned stations. |
|
| | | | | | | | | | | | |
| Duke Energy Florida |
| Quarterly Highlights |
| Supplemental Electric Utilities and Infrastructure Information |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
GWh Sales (1) | | | | | | | |
| | Residential | 4,214 |
| | 4,528 |
| | (6.9 | %) | | |
| | General Service | 3,273 |
| | 3,440 |
| | (4.9 | %) | | |
| | Industrial | 677 |
| | 758 |
| | (10.7 | %) | | |
| | Other Energy Sales | 6 |
| | 6 |
| | — | % | | |
| | Unbilled Sales | (232 | ) | | (185 | ) | | (25.4 | %) | | |
| | Total Retail Sales | 7,938 |
| | 8,547 |
| | (7.1 | %) | | (2.3 | %) |
| | Wholesale and Other | 383 |
| | 572 |
| | (33.0 | %) | | |
| | Total Electric Sales — Duke Energy Florida | 8,321 |
| | 9,119 |
| | (8.8 | %) | | |
| | | | | | | | | |
| Average Number of Customers | | | | | | | |
| | Residential | 1,616,295 |
| | 1,588,910 |
| | 1.7 | % | | |
| | General Service | 202,710 |
| | 200,207 |
| | 1.3 | % | | |
| | Industrial | 2,039 |
| | 2,109 |
| | (3.3 | %) | | |
| | Other Energy Sales | 1,504 |
| | 1,517 |
| | (0.9 | %) | | |
| | Total Retail Customers | 1,822,548 |
| | 1,792,743 |
| | 1.7 | % | | |
| | Wholesale and Other | 12 |
| | 12 |
| | — | % | | |
| | Total Average Number of Customers — Duke Energy Florida | 1,822,560 |
| | 1,792,755 |
| | 1.7 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 618 |
| | 2,121 |
| | (70.9 | %) | | |
| | Oil and Natural Gas | 7,487 |
| | 6,091 |
| | 22.9 | % | | |
| | Renewable Energy | 41 |
| | 8 |
| | 412.5 | % | | |
| | Total Generation (4) | 8,146 |
| | 8,220 |
| | (0.9 | %) | | |
| | Purchased Power and Net Interchange (5) | 860 |
| | 1,378 |
| | (37.6 | %) | | |
| | Total Sources of Energy | 9,006 |
| | 9,598 |
| | (6.2 | %) | | |
| | Less: Line Loss and Other | 685 |
| | 479 |
| | 43.0 | % | | |
| | Total GWh Sources | 8,321 |
| | 9,119 |
| | (8.8 | %) | | |
| | | | | | | | | |
Owned MW Capacity (3) | | | | | | | |
| | Summer | 10,218 |
| | 9,304 |
| | | | |
| | Winter | 11,308 |
| | 10,255 |
| | | | |
| | | | | | | | | |
| Heating and Cooling Degree Days | | | | | | | |
| | Actual | | | | | | | |
| | Heating Degree Days | 271 |
| | 383 |
| | (29.2 | %) | | |
| | Cooling Degree Days | 244 |
| | 264 |
| | (7.6 | %) | | |
| | | | | | | | | |
| | Variance from Normal | | | | | | | |
| | Heating Degree Days | (26.9 | %) | | 1.1 | % | | | | |
| | Cooling Degree Days | 27.8 | % | | 42.7 | % | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
|
| | | | | | | | | | | | |
| Duke Energy Ohio |
| Quarterly Highlights |
| Supplemental Electric Utilities and Infrastructure Information |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
GWh Sales (1) | | | | | | | |
| | Residential | 2,523 |
| | 2,563 |
| | (1.6 | %) | | |
| | General Service | 2,275 |
| | 2,319 |
| | (1.9 | %) | | |
| | Industrial | 1,394 |
| | 1,387 |
| | 0.5 | % | | |
| | Other Energy Sales | 27 |
| | 27 |
| | — | % | | |
| | Unbilled Sales | (197 | ) | | (324 | ) | | 39.2 | % | | |
| | Total Retail Sales | 6,022 |
| | 5,972 |
| | 0.8 | % | | 1.7 | % |
| | Wholesale and Other | 142 |
| | 100 |
| | 42.0 | % | | |
| | Total Electric Sales — Duke Energy Ohio | 6,164 |
| | 6,072 |
| | 1.5 | % | | |
| | | | | | | | | |
| Average Number of Customers | | | | | | | |
| | Residential | 772,754 |
| | 766,947 |
| | 0.8 | % | | |
| | General Service | 88,493 |
| | 88,263 |
| | 0.3 | % | | |
| | Industrial | 2,481 |
| | 2,500 |
| | (0.8 | %) | | |
| | Other Energy Sales | 3,377 |
| | 3,331 |
| | 1.4 | % | | |
| | Total Retail Customers | 867,105 |
| | 861,041 |
| | 0.7 | % | | |
| | Wholesale and Other | 1 |
| | 1 |
| | — | % | | |
| | Total Average Number of Customers — Duke Energy Ohio | 867,106 |
| | 861,042 |
| | 0.7 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 371 |
| | 676 |
| | (45.1 | %) | | |
| | Oil and Natural Gas | 1 |
| | 20 |
| | (95.0 | %) | | |
| | Total Generation (4) | 372 |
| | 696 |
| | (46.6 | %) | | |
| | Purchased Power and Net Interchange (5) | 6,601 |
| | 6,335 |
| | 4.2 | % | | |
| | Total Sources of Energy | 6,973 |
| | 7,031 |
| | (0.8 | %) | | |
| | Less: Line Loss and Other | 809 |
| | 959 |
| | (15.6 | %) | | |
| | Total GWh Sources | 6,164 |
| | 6,072 |
| | 1.5 | % | | |
| | | | | | | | | |
Owned MW Capacity (3) | | | | | | | |
| | Summer | 1,076 |
| | 1,076 |
| | | | |
| | Winter | 1,164 |
| | 1,164 |
| | | | |
| | | | | | | | | |
| Heating and Cooling Degree Days | | | | | | | |
| | Actual | | | | | | | |
| | Heating Degree Days | 2,571 |
| | 2,569 |
| | 0.1 | % | | |
| | Cooling Degree Days | — |
| | 4 |
| | (100.0 | %) | | |
| | | | | | | | | |
| | Variance from Normal | | | | | | | |
| | Heating Degree Days | 0.6 | % | | 2.6 | % | | | | |
| | Cooling Degree Days | (100.0 | %) | | (0.1 | %) | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
|
| | | | | | | | | | | | |
| Duke Energy Indiana |
| Quarterly Highlights |
| Supplemental Electric Utilities and Infrastructure Information |
| March 2019 |
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc.(Dec.) | | % Inc. (Dec.) Weather Normal (2) |
GWh Sales (1) | | | | | | | |
| | Residential | 2,828 |
| | 2,866 |
| | (1.3 | %) | | |
| | General Service | 2,009 |
| | 2,003 |
| | 0.3 | % | | |
| | Industrial | 2,542 |
| | 2,538 |
| | 0.2 | % | | |
| | Other Energy Sales | 13 |
| | 13 |
| | — | % | | |
| | Unbilled Sales | (188 | ) | | (276 | ) | | (31.9 | %) | | |
| | Total Retail Sales | 7,204 |
| | 7,144 |
| | 0.8 | % | | 0.3 | % |
| | Wholesale and Other | 829 |
| | 1,341 |
| | (38.2 | %) | | |
| | Total Electric Sales — Duke Energy Indiana | 8,033 |
| | 8,485 |
| | (5.3 | %) | | |
| | | | | | | | | |
| Average Number of Customers | | | | | | | |
| | Residential | 733,237 |
| | 721,971 |
| | 1.6 | % | | |
| | General Service | 101,627 |
| | 101,343 |
| | 0.3 | % | | |
| | Industrial | 2,700 |
| | 2,725 |
| | (0.9 | %) | | |
| | Other Energy Sales | 1,736 |
| | 1,696 |
| | 2.4 | % | | |
| | Total Retail Customers | 839,300 |
| | 827,735 |
| | 1.4 | % | | |
| | Wholesale and Other | 4 |
| | 5 |
| | (20.0 | %) | | |
| | Total Average Number of Customers — Duke Energy Indiana | 839,304 |
| | 827,740 |
| | 1.4 | % | | |
| | | | | | | | | |
| Sources of Electric Energy (GWh) | | | | | | | |
| | Generated — Net Output (3) | | | | | | | |
| | Coal | 5,494 |
| | 6,388 |
| | (14.0 | %) | | |
| | Hydro | 22 |
| | 20 |
| | 10.0 | % | | |
| | Oil and Natural Gas | 642 |
| | 855 |
| | (24.9 | %) | | |
| | Renewable Energy | 4 |
| | 5 |
| | (20.0 | %) | | |
| | Total Generation (4) | 6,162 |
| | 7,268 |
| | (15.2 | %) | | |
| | Purchased Power and Net Interchange (5) | 2,348 |
| | 1,655 |
| | 41.9 | % | | |
| | Total Sources of Energy | 8,510 |
| | 8,923 |
| | (4.6 | %) | | |
| | Less: Line Loss and Other | 477 |
| | 438 |
| | 8.9 | % | | |
| | Total GWh Sources | 8,033 |
| | 8,485 |
| | (5.3 | %) | | |
| | | | | | | | | |
Owned MW Capacity (3) | | | | | | | |
| | Summer | 6,606 |
| | 6,744 |
| | | | |
| | Winter | 7,023 |
| | 7,183 |
| | | | |
| | | | | | | | | |
| Heating and Cooling Degree Days | | | | | | | |
| | Actual | | | | | | | |
| | Heating Degree Days | 2,884 |
| | 2,831 |
| | 1.9 | % | | |
| | Cooling Degree Days | — |
| | 4 |
| | (100.0 | %) | | |
| | | | | | | | | |
| | Variance from Normal | | | | | | | |
| | Heating Degree Days | 4.6 | % | | 2.4 | % | | | | |
| | Cooling Degree Days | (100.0 | %) | | 22.1 | % | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
| | (2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
| | (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
| | (4) Generation by source is reported net of auxiliary power. |
| | (5) Purchased power includes renewable energy purchases. |
|
| | | | | | | | | |
| Gas Utilities and Infrastructure |
| Quarterly Highlights |
| March 2019 |
| | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | %
Inc. (Dec.) |
| Total Sales | | | | | |
| | Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms) (1) | 151,665,924 |
| | 154,901,379 |
| | (2.1 | %) |
| | Duke Energy Midwest LDC throughput (Mcf) | 38,538,272 |
| | 37,126,065 |
| | 3.8 | % |
| | | | | | | |
| Average Number of Customers — Piedmont Natural Gas | | | | | |
| | Residential | 983,440 |
| | 970,666 |
| | 1.3 | % |
| | Commercial | 104,720 |
| | 104,835 |
| | (0.1 | %) |
| | Industrial | 966 |
| | 963 |
| | 0.3 | % |
| | Power Generation | 17 |
| | 17 |
| | — | % |
| | Total Average Number of Gas Customers — Piedmont Natural Gas | 1,089,143 |
| | 1,076,481 |
| | 1.2 | % |
| | | | | | | |
| Average Number of Customers — Duke Energy Midwest | | | | | |
| | Residential | 493,168 |
| | 488,853 |
| | 0.9 | % |
| | General Service | 45,347 |
| | 45,280 |
| | 0.1 | % |
| | Industrial | 1,679 |
| | 1,661 |
| | 1.1 | % |
| | Other | 135 |
| | 138 |
| | (2.2 | %) |
| | Total Average Number of Gas Customers — Duke Energy Midwest | 540,329 |
| | 535,932 |
| | 0.8 | % |
| | | | | | | |
| | (1) Piedmont has a margin decoupling mechanism in North Carolina and weather normalization mechanisms in South Carolina and Tennessee that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact. |
| | | | | | | |
|
| | | | | | | | | |
| Commercial Renewables |
| Quarterly Highlights |
| March 2019 |
| | | | | | | |
| | | Three Months Ended March 31, |
| | | 2019 | | 2018 | | % Inc. (Dec.) |
| | Renewable Plant Production, GWh | 2,068 |
| | 2,180 |
| | (5.1 | )% |
| | Net Proportional MW Capacity in Operation (1) | 2,996 |
| | 2,943 |
| | 1.8 | % |
| | | | | | | |
| | (1) In 2019, includes 100 percent tax equity project capacity. |
| | | | | | | |
