Duke Energy Carolinas 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	May. 03, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Trading Symbol	DUK
Entity Registrant Name	Duke Energy CORP
Entity Central Index Key	0001326160
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,313,134,663
DUKE ENERGY OHIO, INC.
Entity Registrant Name	Duke Energy Ohio, Inc.
Entity Central Index Key	0000020290
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
DUKE ENERGY CAROLINAS, LLC
Entity Registrant Name	Duke Energy Carolinas, LLC
Entity Central Index Key	0000030371
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
DUKE ENERGY INDIANA, INC.
Entity Registrant Name	Duke Energy Indiana, Inc.
Entity Central Index Key	0000081020
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010 DUKE ENERGY CORP	3 Months Ended Mar. 31, 2009 DUKE ENERGY CORP
DUKE ENERGY CORP
Operating Revenues
Operating Revenues-Regulated Electric	$2,625	$2,545
Non-regulated electric and other	698	467
Regulated natural gas	271	300
Total operating revenues	3,594	3,312
Operating Expenses
Fuel used in electric generation and purchased power - regulated	819	849
Fuel used in electric generation and purchased power - non-regulated	278	148
Cost of natural gas and coal sold	190	222
Operation, maintenance and other	899	811
Depreciation and amortization	456	414
Property and other taxes	193	193
Total operating expenses	2,835	2,637
Gains (Losses) on Sales of Other Assets and Other, net	2	6
Operating Income	761	681
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	29	6
Other income and expenses, net	91	22
Total other income and expenses	120	28
Interest Expense	210	184
Income From Continuing Operations Before Income Taxes	671	525
Income Tax Expense	226	179
Income From Continuing Operations	445	346
Income From Discontinued Operations, net of tax		3
Net Income	445	349
Less: Net Income Attributable to Noncontrolling Interests		5
Net Income Attributable to Duke Energy Corporation	445	344
Income from continuing operations attributable to Duke Energy Corporation common shareholders
Basic	0.34	0.27
Diluted	0.34	0.27
Income from discontinued operations attributable to Duke Energy Corporation common shareholders
Basic
Diluted
Net income attributable to Duke Energy Corporation common shareholders
Basic	0.34	0.27
Diluted	0.34	0.27
Dividends per share	0.24	0.23
Weighted-average shares outstanding
Basic	1,310	1,282
Diluted	1,311	1,283
DUKE ENERGY OHIO, INC.
Operating Revenues
Operating Revenues-Regulated Electric	482	590
Non-regulated electric and other	224	116
Regulated natural gas	271	300
Total operating revenues	977	1,006
Operating Expenses
Fuel used in electric generation and purchased power - regulated	141	208
Fuel used in electric generation and purchased power - non-regulated	84	59
Cost of natural gas and coal sold	158	193
Operation, maintenance and other	186	202
Depreciation and amortization	110	103
Property and other taxes	75	78
Total operating expenses	754	843
Gains (Losses) on Sales of Other Assets and Other, net	(1)	4
Operating Income	222	167
Other Income and Expenses
Other income and expenses, net	7
Interest Expense	30	35
Income Before Income Taxes	199	132
Income Tax Expense	69	47
Net Income	130	85
DUKE ENERGY CAROLINAS, LLC
Operating Revenues
Operating Revenues-Regulated Electric	1,545	1,353
Operating Expenses
Fuel used in electric generation and purchased power - regulated	454	404
Operation, maintenance and other	460	377
Depreciation and amortization	193	178
Property and other taxes	93	88
Total operating expenses	1,200	1,047
Gains (Losses) on Sales of Other Assets and Other, net	2
Operating Income	347	306
Other Income and Expenses
Other income and expenses, net	50	26
Interest Expense	90	85
Income Before Income Taxes	307	247
Income Tax Expense	115	85
Net Income	192	162
DUKE ENERGY INDIANA, INC.
Operating Revenues
Operating Revenues-Regulated Electric	610	613
Operating Expenses
Fuel used in electric generation and purchased power - regulated	225	237
Operation, maintenance and other	143	159
Depreciation and amortization	101	92
Property and other taxes	20	23
Total operating expenses	489	511
Operating Income	121	102
Other Income and Expenses
Other income and expenses, net	18	7
Interest Expense	33	34
Income Before Income Taxes	106	75
Income Tax Expense	36	27
Net Income	$70	$48

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS ( DUKE ENERGY CORP, USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
DUKE ENERGY CORP
Current Assets
Cash and cash equivalents	$1,080	$1,542
Receivables (net of allowance for doubtful accounts)	724	845
Restricted receivables of variable interest entities (net of allowance for doubtful accounts)	1,200	896
Inventory	1,337	1,515
Other	1,150	968
Total current assets	5,491	5,766
Investments and Other Assets
Investments in equity method unconsolidated affiliates	363	436
Nuclear decommissioning trust funds	1,846	1,765
Goodwill	4,349	4,350
Intangibles, net	571	593
Notes receivable	127	130
Other	2,661	2,533
Total investments and other assets	9,917	9,807
Property, Plant and Equipment
Cost	56,493	55,362
Less accumulated depreciation and amortization	17,787	17,412
Net property, plant and equipment	38,706	37,950
Regulatory Assets and Deferred Debits
Deferred debt expense	254	258
Regulatory assets related to income taxes	618	557
Other	2,647	2,702
Total regulatory assets and deferred debits	3,519	3,517
Total Assets	57,633	57,040
Current Liabilities
Accounts payable	1,299	1,390
Notes payable	12
Non-recourse notes payable of variable interest entities	350
Taxes accrued	383	428
Interest accrued	251	222
Current maturities of long-term debt	586	902
Other	973	1,146
Total current liabilities	3,854	4,088
Long-term Debt	15,900	15,732
Non-recourse long-term debt of variable interest entities	379	381
Deferred Credits and Other Liabilities
Deferred income taxes	6,040	5,615
Investment tax credits	337	310
Asset retirement obligations	3,238	3,185
Other	5,837	5,843
Total deferred credits and other liabilities	15,452	14,953
Commitments and Contingencies
Common Stockholder's Equity
Common stock	1	1
Additional paid-in capital	20,697	20,661
Retained earnings (deficit)	1,589	1,460
Accumulated other comprehensive income (loss)	(373)	(372)
Total common stockholder's equity	21,914	21,750
Noncontrolling interests	134	136
Total equity	22,048	21,886
Total Liabilities and Common Stockholder's Equity	57,633	57,040
DUKE ENERGY OHIO, INC.
Current Assets
Cash and cash equivalents	120	127
Receivables (net of allowance for doubtful accounts)	670	563
Inventory	219	268
Other	181	176
Total current assets	1,190	1,134
Investments and Other Assets
Goodwill	1,598	1,598
Intangibles, net	319	332
Other	109	86
Total investments and other assets	2,026	2,016
Property, Plant and Equipment
Cost	10,307	10,243
Less accumulated depreciation and amortization	2,453	2,379
Net property, plant and equipment	7,854	7,864
Regulatory Assets and Deferred Debits
Deferred debt expense	24	24
Regulatory assets related to income taxes	84	83
Other	372	390
Total regulatory assets and deferred debits	480	497
Total Assets	11,550	11,511
Current Liabilities
Accounts payable	353	512
Notes payable	12
Taxes accrued	201	152
Interest accrued	34	26
Current maturities of long-term debt	7	19
Other	125	128
Total current liabilities	732	837
Long-term Debt	2,576	2,573
Deferred Credits and Other Liabilities
Deferred income taxes	1,580	1,577
Investment tax credits	11	11
Accrued pension and other post-retirement benefit costs	251	249
Asset retirement obligations	37	36
Other	336	330
Total deferred credits and other liabilities	2,215	2,203
Commitments and Contingencies
Common Stockholder's Equity
Common stock	762	762
Additional paid-in capital	5,570	5,570
Retained earnings (deficit)	(275)	(405)
Accumulated other comprehensive income (loss)	(30)	(29)
Total common stockholder's equity	6,027	5,898
Total Liabilities and Common Stockholder's Equity	11,550	11,511
DUKE ENERGY CAROLINAS, LLC
Current Assets
Cash and cash equivalents	104	394
Receivables (net of allowance for doubtful accounts)	532	839
Restricted receivables of variable interest entities (net of allowance for doubtful accounts)	574	556
Inventory	762	846
Other	353	313
Total current assets	2,325	2,948
Investments and Other Assets
Nuclear decommissioning trust funds	1,846	1,765
Other	1,109	1,130
Total investments and other assets	2,955	2,895
Property, Plant and Equipment
Cost	30,500	29,917
Less accumulated depreciation and amortization	10,870	10,692
Net property, plant and equipment	19,630	19,225
Regulatory Assets and Deferred Debits
Deferred debt expense	175	179
Regulatory assets related to income taxes	534	471
Other	943	972
Total regulatory assets and deferred debits	1,652	1,622
Total Assets	26,562	26,690
Current Liabilities
Accounts payable	699	703
Taxes accrued	107	137
Interest accrued	144	105
Current maturities of long-term debt	208	509
Other	428	478
Total current liabilities	1,586	1,932
Long-term Debt	6,856	6,857
Non-recourse long-term debt of variable interest entities	300	300
Deferred Credits and Other Liabilities
Deferred income taxes	3,253	3,087
Investment tax credits	200	178
Asset retirement obligations	3,150	3,098
Other	2,954	2,967
Total deferred credits and other liabilities	9,557	9,330
Commitments and Contingencies
Member's Equity
Member's Equity	8,296	8,304
Accumulated other comprehensive income (loss)	(33)	(33)
Total member's equity	8,263	8,271
Total Liabilities and Member's Equity	26,562	26,690
DUKE ENERGY INDIANA, INC.
Current Assets
Cash and cash equivalents	35	20
Receivables (net of allowance for doubtful accounts)	304	245
Inventory	280	312
Other	95	31
Total current assets	714	608
Investments and Other Assets
Intangibles, net	88	98
Other	140	134
Total investments and other assets	228	232
Property, Plant and Equipment
Cost	10,383	10,055
Less accumulated depreciation and amortization	3,206	3,129
Net property, plant and equipment	7,177	6,926
Regulatory Assets and Deferred Debits
Deferred debt expense	43	44
Regulatory assets related to income taxes	77	4
Other	587	596
Total regulatory assets and deferred debits	707	644
Total Assets	8,826	8,410
Current Liabilities
Accounts payable	290	354
Taxes accrued	96	47
Interest accrued	42	40
Current maturities of long-term debt	6	4
Other	84	123
Total current liabilities	518	568
Long-term Debt	3,084	3,086
Deferred Credits and Other Liabilities
Deferred income taxes	845	679
Investment tax credits	126	120
Accrued pension and other post-retirement benefit costs	312	314
Asset retirement obligations	43	42
Other	670	667
Total deferred credits and other liabilities	1,996	1,822
Commitments and Contingencies
Common Stockholder's Equity
Common stock	1	1
Additional paid-in capital	1,233	1,008
Retained earnings (deficit)	1,985	1,915
Accumulated other comprehensive income (loss)	9	10
Total common stockholder's equity	3,228	2,934
Total Liabilities and Common Stockholder's Equity	$8,826	$8,410

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010 DUKE ENERGY CORP	Dec. 31, 2009 DUKE ENERGY CORP
DUKE ENERGY CORP
Receivables, allowance for doubtful accounts	$45	$42
Restricted receivables of variable interest entities, allowance for doubtful accounts	32	6
Common Stock, par value	0.001	0.001
Common Stock, shares authorized	2,000,000,000	2,000,000,000
Common Stock, shares outstanding	1,312,000,000	1,309,000,000
DUKE ENERGY OHIO, INC.
Receivables, allowance for doubtful accounts	18	17
Common Stock, par value	8.5	8.5
Common Stock, shares authorized	120,000,000	120,000,000
Common Stock, shares outstanding	89,663,086	89,663,086
DUKE ENERGY CAROLINAS, LLC
Receivables, allowance for doubtful accounts	2	2
Restricted receivables of variable interest entities, allowance for doubtful accounts	6	6
DUKE ENERGY INDIANA, INC.
Receivables, allowance for doubtful accounts	$1	$1
Common Stock, no par	$0	$0
Common Stock, par value	0.01	0.01
Common Stock, shares authorized	60,000,000	60,000,000
Common Stock, shares outstanding	53,913,701	53,913,701

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Mar. 31, 2010 DUKE ENERGY CORP	3 Months Ended Mar. 31, 2009 DUKE ENERGY CORP
DUKE ENERGY CORP
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$445	$349
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	506	463
Equity component of AFUDC	(55)	(28)
Severance expense	68
(Gains) losses on sales of other assets and other, net	(1)	(11)
Deferred income taxes	162	165
Equity in earnings of unconsolidated affiliates	(29)	(6)
Contributions to qualified pension plans		(500)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	3	(23)
Receivables	94	222
Inventory	180	(110)
Other current assets	14	24
Increase (decrease) in
Accounts payable	(114)	(244)
Taxes accrued	(52)	(26)
Other current liabilities	(179)	(176)
Other assets	81	73
Other liabilities	(2)	18
Net cash provided by (used in) operating activities	1,121	190
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,179)	(845)
Investment expenditures	(20)	(61)
Purchases of available-for-sale securities	(591)	(930)
Proceeds from sales and maturities of available-for-sale securities	550	917
Net proceeds from the sales of other assets, and sales of and collections on notes receivable	3	38
Purchases of emission allowances	(5)	(25)
Sales of emission allowances	7	15
Change in restricted cash	1	3
Other	(2)	(6)
Net cash used in investing activities	(1,236)	(894)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt	451	1,916
Issuance of common stock related to employee benefit plans	31	171
Payments for the redemption of long-term debt	(609)	(603)
Notes payable and commercial paper	93	(263)
Dividends paid	(316)	(296)
Other	3	(6)
Net cash (used in) provided by financing activities	(347)	919
Net (decrease) increase in cash and cash equivalents	(462)	215
Cash and cash equivalents at beginning of period	1,542	986
Cash and cash equivalents at end of period	1,080	1,201
Significant non-cash transactions:
Debt associated with the consolidation of Cinergy Receivables	257
Accrued capital expenditures	473	320
DUKE ENERGY OHIO, INC.
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	130	85
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	110	104
Severance expense	10
(Gains) losses on sales of other assets and other, net	1	(4)
Deferred income taxes	3	26
Contributions to qualified pension plans		(143)
Accrued pension and other post-retirement benefit costs	4	3
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	(50)	(16)
Receivables	72	13
Inventory	49	(5)
Other current assets	22	33
Increase (decrease) in
Accounts payable	(187)	(148)
Taxes accrued	45	(6)
Other current liabilities	(6)	(19)
Other assets	58	28
Other liabilities	2	1
Net cash provided by (used in) operating activities	263	(48)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(88)	(91)
Purchases of emission allowances	(4)	(7)
Sales of emission allowances	3	5
Notes due from affiliate, net	(179)	(243)
Net cash used in investing activities	(268)	(336)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt		450
Payments for the redemption of long-term debt	(2)	(2)
Notes payable to affiliate, net		(63)
Other		(2)
Net cash (used in) provided by financing activities	(2)	383
Net (decrease) increase in cash and cash equivalents	(7)	(1)
Cash and cash equivalents at beginning of period	127	27
Cash and cash equivalents at end of period	120	26
Significant non-cash transactions:
Accrued capital expenditures	91	55
DUKE ENERGY CAROLINAS, LLC
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	192	162
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	240	224
Equity component of AFUDC	(40)	(26)
Severance expense	41
(Gains) losses on sales of other assets and other, net	(2)	(6)
Deferred income taxes	92	121
Contributions to qualified pension plans		(74)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	(1)	2
Receivables	97	187
Inventory	86	(81)
Other current assets	2	(80)
Increase (decrease) in
Accounts payable	18	(23)
Taxes accrued	(30)	(44)
Other current liabilities	(58)	(37)
Other assets	7	10
Other liabilities	(35)	1
Net cash provided by (used in) operating activities	609	336
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(599)	(479)
Purchases of available-for-sale securities	(304)	(686)
Proceeds from sales and maturities of available-for-sale securities	294	678
Sales of emission allowances	2	6
Change in restricted cash		5
Notes due from affiliate, net	212	46
Other	(3)
Net cash used in investing activities	(398)	(430)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for the redemption of long-term debt	(301)	(201)
Dividend to parent	(200)
Net cash (used in) provided by financing activities	(501)	(201)
Net (decrease) increase in cash and cash equivalents	(290)	(295)
Cash and cash equivalents at beginning of period	394	323
Cash and cash equivalents at end of period	104	28
Significant non-cash transactions:
Accrued capital expenditures	172	183
DUKE ENERGY INDIANA, INC.
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	70	48
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	102	93
Equity component of AFUDC	(13)	(3)
Severance expense	10
Deferred income taxes and investment tax credit amortization		(7)
Contributions to qualified pension plans		(100)
Accrued pension and other post-retirement benefit costs	5	6
(Increase) decrease in
Receivables	26	42
Inventory	32	(28)
Other current assets	7	29
Increase (decrease) in
Accounts payable	(77)	(97)
Taxes accrued	45	32
Other current liabilities	(14)	(21)
Other assets		9
Other liabilities	(9)	(6)
Net cash provided by (used in) operating activities	184	(3)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(310)	(185)
Purchases of available-for-sale securities	(4)	(11)
Proceeds from sales and maturities of available-for-sale securities	4	11
Purchases of emission allowances	(1)	(19)
Sales of emission allowances	2	3
Change in restricted cash	(1)
Notes due from affiliate, net	(84)	(264)
Other	1
Net cash used in investing activities	(393)	(465)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt		721
Payments for the redemption of long-term debt	(1)	(370)
Capital contribution from parent	225
Other		(6)
Net cash (used in) provided by financing activities	224	345
Net (decrease) increase in cash and cash equivalents	15	(123)
Cash and cash equivalents at beginning of period	20	144
Cash and cash equivalents at end of period	35	21
Significant non-cash transactions:
Accrued capital expenditures	$162	$73

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (USD $)
In Millions	DUKE ENERGY CORP		DUKE ENERGY CORP Common Stock	DUKE ENERGY CORP Additional Paid-in Capital	DUKE ENERGY CORP Retained Earnings	DUKE ENERGY CORP Foreign Currency Adjustments	DUKE ENERGY CORP Net Gains (Losses) on Cash Flow Hedges		DUKE ENERGY CORP Other		DUKE ENERGY CORP Pension and OPEB Related Adjustments to AOCI		DUKE ENERGY CORP Common Stockholders' Equity		DUKE ENERGY CORP Noncontrolling Interests	DUKE ENERGY OHIO, INC.		DUKE ENERGY OHIO, INC. Common Stock	DUKE ENERGY OHIO, INC. Additional Paid-in Capital	DUKE ENERGY OHIO, INC. Retained Earnings	DUKE ENERGY OHIO, INC. Net Gains (Losses) on Cash Flow Hedges		DUKE ENERGY OHIO, INC. Pension and OPEB Related Adjustments to AOCI		DUKE ENERGY CAROLINAS, LLC		DUKE ENERGY CAROLINAS, LLC Net Gains (Losses) on Cash Flow Hedges		DUKE ENERGY CAROLINAS, LLC Other		DUKE ENERGY CAROLINAS, LLC Member's Equity [Member]	DUKE ENERGY INDIANA, INC.		DUKE ENERGY INDIANA, INC. Common Stock	DUKE ENERGY INDIANA, INC. Additional Paid-in Capital	DUKE ENERGY INDIANA, INC. Retained Earnings	DUKE ENERGY INDIANA, INC. Net Gains (Losses) on Cash Flow Hedges
Beginning Balance at Dec. 31, 2008	$21,151		$1	$20,106	$1,607	($306)	($41)		($28)		($351)		$20,988		$163
Beginning Balance at Dec. 31, 2008																6,670		762	5,570	381	(15)		(28)									2,594		1	868	1,714	11
Beginning Balance at Dec. 31, 2008																									7,316		(27)		(6)		7,349
Beginning Balance (in shares) at Dec. 31, 2008			1,272
Net income	349				344								344		5	85				85					162						162	48				48
Other comprehensive income (loss)
Foreign currency translation adjustments	(6)					(6)							(6)
Pension and OPEB related adjustments to AOCI	1										1		1
Reclassification into earnings from cash flow hedges	10	[1]					10	[1]					10	[1]		9	[2]				9	[2]			1	[3]	1	[3]
Unrealized gain (loss) on investments in auction rate securities	(6)	[4]							(6)	[4]			(6)	[4]											(1)	[5]			(1)	[5]
Unrealized loss on investments in available-for-sale securities	(3)	[5]							(3)	[5]			(3)	[5]
Total comprehensive income	345												340		5	94									162
Common stock issuances, including dividend reinvestment and employee benefits (in shares)			13
Common stock issuances, including dividend reinvestment and employee benefits	182			182									182
Common stock dividends	(296)				(296)								(296)
Ending Balance (in shares) at Mar. 31, 2009			1,285
Ending Balance at Mar. 31, 2009	21,382		1	20,288	1,655	(312)	(31)		(37)		(350)		21,214		168
Ending Balance at Mar. 31, 2009																									7,478		(26)		(7)		7,511
Ending Balance at Mar. 31, 2009																6,764		762	5,570	466	(6)		(28)									2,642		1	868	1,762	11
Beginning Balance at Dec. 31, 2009	21,886		1	20,661	1,460	17	(22)		(31)		(336)		21,750		136
Beginning Balance at Dec. 31, 2009	21,750															5,898		762	5,570	(405)	1		(30)									2,934		1	1,008	1,915	10
Beginning Balance at Dec. 31, 2009																									8,271		(24)		(9)		8,304
Beginning Balance (in shares) at Dec. 31, 2009	1,309		1,309													90																54
Net income	445				445								445			130				130					192						192	70				70
Other comprehensive income (loss)
Foreign currency translation adjustments	(22)					(18)							(18)		(4)
Pension and OPEB related adjustments to AOCI	13	[6]									13	[6]	13	[6]		(1)	[7]						(1)	[7]
Reclassification into earnings from cash flow hedges	1	[1]					1	[1]					1	[1]																		(1)	[8]				(1)	[8]
Unrealized gain (loss) on investments in auction rate securities	3	[4]							3	[4]			3	[4]
Total comprehensive income	440												444		(4)	129																69
Capital contribution from parent																																225			225
Common stock issuances, including dividend reinvestment and employee benefits (in shares)			3
Common stock issuances, including dividend reinvestment and employee benefits	36			36									36
Common stock dividends	(316)				(316)								(316)
Changes in noncontrolling interest in subsidiaries	2														2
Dividend to parent																									(200)						(200)
Ending Balance (in shares) at Mar. 31, 2010	1,312		1,312													90																54
Ending Balance at Mar. 31, 2010	22,048		1	20,697	1,589	(1)	(21)		(28)		(323)		21,914		134
Ending Balance at Mar. 31, 2010																									8,263		(24)		(9)		8,296
Ending Balance at Mar. 31, 2010	$21,914															$6,027		$762	$5,570	($275)	$1		($31)									$3,228		$1	$1,233	$1,985	$9
[1]Reclassification into earnings from cash flow hedges, net of insignificant tax expense in 2010 and $4 tax expense in 2009.
[2]Reclassification into earnings from cash flow hedges, net of $4 tax expense in 2009.
[3]Reclassification into earnings from cash flow hedges, net of insignificant tax expense in 2009.
[4]Net of $2 tax expense in 2010 and $3 tax benefit in 2009.
[5]Net of $1 tax benefit in 2009.
[6]Net of $5 tax benefit in 2010.
[7]Net of insignificant tax benefit in 2010.
[8]Reclassification into earnings from cash flow hedges, net of insignificant tax benefit in 2010.

4_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010 DUKE ENERGY CORP	3 Months Ended Mar. 31, 2009 DUKE ENERGY CORP
DUKE ENERGY CORP
Reclassification into earnings from cash flow hedges, tax expense		$4
Unrealized gain (loss) on investments in auction rate securities, tax expense (benefit)	2	(3)
Unrealized loss on investments in available-for-sale securities, tax benefit		(1)
Pension and OPEB related adjustments to AOCI, tax benefit	(5)
DUKE ENERGY OHIO, INC.
Reclassification into earnings from cash flow hedges, tax expense		4
DUKE ENERGY CAROLINAS, LLC
Unrealized gain (loss) on investments in auction rate securities, tax expense (benefit)		($1)

Organization and Basis of Prese

Organization and Basis of Presentation
	3 Months Ended Mar. 31, 2010
Organization and Basis of Presentation	1. Organization and Basis of Presentation Organization. Duke Energy Corporation (collectively with its subsidiaries, Duke Energy) is an energy company primarily located in the Americas. Duke Energy operates in the United States (U.S.) primarily through its direct and indirect wholly-owned subsidiaries, Duke Energy Carolinas, LLC (Duke Energy Carolinas), Duke Energy Ohio, Inc. (Duke Energy Ohio), which includes Duke Energy Kentucky, Inc. (Duke Energy Kentucky), and Duke Energy Indiana, Inc. (Duke Energy Indiana), as well as in South and Central America through International Energy. When discussing Duke Energys condensed consolidated financial information, it necessarily includes the results of its three separate subsidiary registrants, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana (collectively referred to as the Subsidiary Registrants), which, along with Duke Energy, are collectively referred to as the Duke Energy Registrants. The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to the Combined Notes. However, none of the registrants makes any representation as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself. See Note 2 for information related to reportable operating segments for each of the Duke Energy Registrants. These Unaudited Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and all majority-owned subsidiaries where the respective Duke Energy Registrants have control and those variable interest entities where the respective Duke Energy Registrants are the primary beneficiary. These Unaudited Condensed Consolidated Financial Statements also reflect Duke Energy Carolinas approximate 19% proportionate share of the Catawba Nuclear Station, as well as Duke Energy Ohios proportionate share of certain generation and transmission facilities in Ohio, Indiana and Kentucky and Duke Energy Indianas proportionate share of certain generation and transmission facilities. Duke Energy Carolinas generates, transmits, distributes and sells electricity in North Carolina and South Carolina. Duke Energy Carolinas is subject to the regulatory provisions of the North Carolina Utilities Commission (NCUC), the Public Service Commission of South Carolina (PSCSC), the U.S. Nuclear Regulatory Commission (NRC) and the Federal Energy Regulatory Commission (FERC). Substantially all of Duke Energy Carolinas operations are regulated and qualify for regulatory accounting treatment. Duke Energy Ohio is a wholly-owned subsidiary of Cinergy Corp. (Cinergy), which is a wholly-owned subsidiary of Duke Energy. Duke Energy Ohio is a combination electric and gas public utility that provides service in the southwestern portion of Ohio and in northern Kentucky through its wholly-owned subsidiary Duke Energy Kentucky, as well as electric generation in parts of Ohio, Illinois, Indiana and Pennsylvania. Duke Energy Ohios principal lines of business include generation, transmission and distribution of electricity, the sale of and/or transportati

Business Segments

Business Segments
	3 Months Ended Mar. 31, 2010
Business Segments	2. Business Segments Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT. Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Accounting policies for the Duke Energy Registrants segments are the same as those described in the respective Notes to the Consolidated Financial Statements in Duke Energys, Duke Energy Carolinas, Duke Energy Ohios and Duke Energy Indianas Annual Report on Form 10-K for the year ended December31, 2009. Duke Energy Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFEG), Commercial Power and International Energy. USFEG generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFEG also transmits and distributes electricity in southwestern Ohio. Additionally, USFEG transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of DukeEnergy Ohio including Duke Energy Kentucky, and Duke Energy Indiana. Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Powers generation asset fleet consists of Duke Energy Ohios regulated generation in Ohio and five Midwestern gas-fired non-regulated generation assets. The asset portfolio has a diversified fuel mix with base-load and mid-merit coal-fired units as well as combined cycle and peaking natural gas-fired units. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales (DERS), which is certified by the PUCO as a Competitive Retail Electric Service (CRES) provider in Ohio. DERS serves retail electric customers in southwest, west central and northern Ohio at competitive rates. Due to increased levels of customer switching as a result of the competitive markets in Ohio, DERS has focused on acquiring c

Regulatory Matters

Regulatory Matters
	3 Months Ended Mar. 31, 2010
Regulatory Matters	3. Regulatory Matters Rate Related Information. The NCUC, PSCSC, IURC and KPSC approve rates for retail electric and gas services within their states. The PUCO approves rates for retail gas and electric service within Ohio, except that non-regulated sellers of gas and electric generation also are allowed to operate in Ohio. The FERC approves rates for electric sales to wholesale customers served under cost-based rates, as well as sales of transmission service. Duke Energy Kentucky Energy Efficiency. On November15, 2007, Duke Energy Kentucky filed its annual application to continue existing energy efficiency programs, consisting of nine residential and two commercial and industrial programs, and to true-up its gas and electric tracking mechanism for recovery of lost revenues, program costs and shared savings. On February11, 2008, Duke Energy Kentucky filed a motion to amend its energy efficiency programs. On December1, 2008, Duke Energy Kentucky filed an application for a save-a-watt Energy Efficiency Plan. The application sought a new energy efficiency recovery mechanism similar to what was proposed in Ohio. On January27, 2010, Duke Energy Kentucky withdrew the application to implement save-a-watt and plans to file a revised portfolio in the future. Until that time, energy efficiency programs continue under Duke Energy Kentuckys demand-side management program. Duke Energy Indiana Storm Cost Deferrals. On July22, 2009, Duke Energy Indiana filed a request with the IURC to defer storm costs associated with a January27, 2009 ice storm, which caused $14 million of damage primarily to its distribution system. Duke Energy Indiana has requested to defer the retail jurisdictional portion of the incremental storm costs, which would otherwise be charged as operating expense, until Duke Energy Indianas next general rate proceeding. The costs at issue have been charged to operating expense pending an IURC order in this proceeding. Duke Energy Indiana filed its case-in-chief testimony on August27, 2009, and an evidentiary hearing was held on November12, 2009. An order is expected by the second quarter of 2010. Duke Energy Ohio Storm Cost Recovery. On December11, 2009, Duke Energy Ohio filed an application with the PUCO to recover Hurricane Ike storm restoration costs of $31 million through a discrete rider. The PUCO granted the request to defer the costs associated with the storm recovery; however, they further ordered Duke Energy Ohio to file a separate action pursuant to which the actual amount of recovery would be determined. Duke Energy Ohio is currently in the discovery process and a hearing is set for May25, 2010. Duke Energy Carolinas Broad River Energy Center. On August25, 2007, Duke Energy Carolinas experienced a disturbance on its bulk electric system which initiated at the Broad River Energy Center, a generating station owned and operated by a third party. The disturbance resulted in the tripping of six Duke Energy Carolinas generating units and the temporary opening of five 230 kilovolt (KV) transmission lines. The event resulted in no loss of load.In September 2008 the FERC initiated a preliminary, non-public investigation to

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies	4. Commitments and Contingencies Environmental Duke Energy is subject to international, federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all of the Duke Energy Registrants. Remediation Activities. The Duke Energy Registrants are responsible for environmental remediation at various contaminated sites. These include some properties that are part of ongoing operations, sites formerly owned or used by Duke Energy entities, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for contamination caused by other parties. In some instances, the Duke Energy Registrants may share liability associated with contamination with other potentially responsible parties, and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliate operations. During 2009, the Duke Energy Registrants recorded additional reserves associated with remediation activities at certain manufactured gas plant sites and it is anticipated that additional costs associated with remediation activities at certain of its sites will be incurred in the future. The Duke Energy Registrants have accrued costs associated with remediation activities at some of its current and former sites, as well as other relevant environmental contingent liabilities. Management, in the normal course of business, continually assesses the nature and extent of known or potential environmental-related contingencies and records liabilities when losses become probable and are reasonably estimable. Costs associated with remediation activities within the Duke Energy Registrants regulated operations are typically expensed unless recovery of the costs is deemed probable. Clean Water Act 316(b). The Environmental Protection Agency (EPA) finalized its cooling water intake structures rule in July 2004. The rule established aquatic protection requirements for existing facilities that withdraw 50million gallons or more of water per day from rivers, streams, lakes, reservoirs, estuaries, oceans, or other U.S. waters for cooling purposes. Fourteen of the 23 coal and nuclear-fueled generating facilities in which Duke Energy is either a whole or partial owner

Debt and Credit Facilities

Debt and Credit Facilities
	3 Months Ended Mar. 31, 2010
Debt and Credit Facilities	5. Debt and Credit Facilities Significant changes to Duke Energys, Duke Energy Carolinas, Duke Energy Ohios and Duke Energy Indianas debt and credit facilities since December31, 2009 are as follows: Unsecured Debt. In March 2010, Duke Energy issued $450 million principal amount of 3.35% senior notes due April1, 2015. Proceeds from the issuance were used to repay $274 million of borrowings under the master credit facility and for general corporate purposes. Non-Recourse Notes Payable of VIEs. As discussed further in Notes 1 and 10, effective January1, 2010, Duke Energy began consolidating Cinergy Receivables. To fund the purchase of receivables, Cinergy Receivables borrows from third parties and such borrowings fluctuate based on the amount of receivables sold to Cinergy Receivables. The borrowings are secured by the assets of Cinergy Receivables and are non-recourse to Duke Energy. The debt is short-term because the facility has an expiration date of October 2010; however, Duke Energy expects to extend that expiration by one year prior to its current expiration. At March31, 2010, Cinergy Receivables borrowings were $350 million and are reflected as Non-recourse Notes Payable of VIEs on Duke Energys Condensed Consolidated Balance Sheets. Money Pool. The Subsidiary Registrants receive support for their short-term borrowing needs through participation with Duke Energy and other Duke Energy subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating under this arrangement. The money pool is structured such that the Subsidiary Registrants separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between the money pool participants. Per the terms of the money pool arrangement, Duke Energy may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly-owned subsidiaries, all money pool balances are eliminated within Duke Energys Condensed Consolidated Balance Sheets. As of March31, 2010 and December31, 2009, Duke Energy Carolinas had short-term money pool receivables of $377 million and $589 million, respectively, which are classified within Receivables in the Duke Energy Carolinas Condensed Consolidated Balance Sheets, and $300 million in money pool borrowings as of both dates, which are classified as long-term borrowings within Long-term Debt in the Duke Energy Carolinas Condensed Consolidated Balance Sheets. As of March31, 2010 and December31, 2009, Duke Energy Ohio and Duke Energy Kentucky had combined short-term money pool receivables of $363 million and $184 million, respectively, which are classified within Receivables in Duke Energy Ohios Condensed Consolidated Balance Sheets. As of March31, 2010, Duke Energy Indiana was in a net money pool payable position of $35 million, of which $115 million is classified within Receivables and $150 million is classified within Long-term Debt in Duke Energy Indianas Condensed Consolidated Balan

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	3 Months Ended Mar. 31, 2010 DUKE ENERGY CORP
DUKE ENERGY CORP
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010.
DUKE ENERGY OHIO, INC.
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010.
DUKE ENERGY INDIANA, INC.
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010.

Risk Management, Derivative Ins

Risk Management, Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Risk Management, Derivative Instruments and Hedging Activities	7. Risk Management, Derivative Instruments and Hedging Activities The Duke Energy Registrants utilize various derivative instruments to manage risks primarily associated with commodity prices and interest rates. The primary use of energy commodity derivatives is to hedge the generation portfolio against exposure to changes in the prices of power and fuel. Interest rate derivatives are entered into to manage interest rate risk associated with variable-rate and fixed-rate borrowings. Certain derivative instruments qualify for hedge accounting and are designated as either cash flow hedges or fair value hedges, while others either do not qualify as a hedge (such as economic hedges) or have not been designated as hedges (hereinafter referred to as undesignated contracts). All derivative instruments not meeting the criteria for the normal purchase normal sale (NPNS) exception are recognized as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. As the regulated operations of the Duke Energy Registrants meet the criteria for regulatory accounting treatment, the majority of the derivative contracts entered into by the regulated operations are not designated as hedges since gains and losses on such contracts are deferred as regulatory liabilities and assets, respectively, thus there is no immediate earnings impact associated with changes in fair values of such derivative contracts. For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss is reported as a component of Accumulated Other Comprehensive Income (AOCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gains or losses on the derivative that represent either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that qualify and are designated as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item are recognized in earnings in the current period. Any gains or losses on the derivative are included in the same line item as the offsetting loss or gain on the hedged item in the Condensed Consolidated Statements of Operations. Information presented in the tables below relates to Duke Energy on a consolidated basis and Duke Energy Ohio. As derivative activity is insignificant at Duke Energy Carolinas and Duke Energy Indiana, separate disclosure for each of those registrants is not presented. Commodity Price Risk The Duke Energy Registrants are exposed to the impact of market changes in the future prices of electricity (energy, capacity and financial transmission rights), coal, natural gas and emission allowances (sulfur dioxide (SO2), seasonal nitrogen oxide (NOX) and annual NOX) as a result of their energy operations such as electric generation and the transportation and sale of natural gas. With respect to commodity price risks associated with electric generation, the Duke Energy Registrants are exposed to changes including, but not limited to, the cost of

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities
	3 Months Ended Mar. 31, 2010
Fair Value of Financial Assets and Liabilities	8. Fair Value of Financial Assets and Liabilities Under the accounting guidance for fair value, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The fair value definition focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability versus an entry price, which would be the price paid to acquire an asset or received to assume a liability. Although the accounting guidance for fair value does not require additional fair value measurements, it applies to other accounting pronouncements that require or permit fair value measurements. Recurring and non-recurring fair value measurements are classified based on the following fair value hierarchy, as prescribed by the accounting guidance for fair value, which prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1unadjusted quoted prices in active markets for identical assets or liabilities that the Duke Energy Registrants have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information. Quoted market prices on Level 1 are not adjusted for any blockage factor. Level 2a fair value measurement utilizing inputs other than a quoted market price that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates. A level 2 measurement cannot have more than an insignificant portion of the valuation based on unobservable inputs. Level 3any fair value measurements which include unobservable inputs for the asset or liability for more than an insignificant portion of the valuation. A level 3 measurement may be based primarily on level 2 inputs. There are no financial assets or financial liabilities that are not required to be accounted for at fair value under GAAP for which the option to record at fair value has been elected. However, in the future, the Duke Energy Registrants may elect to measure certain financial instruments at fair value in accordance with this accounting guidance. Valuation methods of the primary fair value measurements disclosed below are as follows: Investments in equity securities. 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 NASDAQ, NYSE, NYMEX and Chicago Board of Trade, as well as pink sheets, which is an electronic quotation system that displays quotes for broker-dealers for many ov

Investments in Debt and Equity

Investments in Debt and Equity Securities
	3 Months Ended Mar. 31, 2010 DUKE ENERGY CORP
DUKE ENERGY CORP
Investments in Debt and Equity Securities	9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli
DUKE ENERGY CAROLINAS, LLC
Investments in Debt and Equity Securities	9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli
DUKE ENERGY INDIANA, INC.
Investments in Debt and Equity Securities	9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli

Variable Interest Entities

Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Variable Interest Entities	10. Variable Interest Entities A VIE is an entity that is evaluated for consolidation by more than a simple analysis of voting control. The analysis to determine whether an entity is a VIE considers contracts with an entity, credit support for an entity, the adequacy of the equity investment of an entity and the relationship of voting power to the amount of equity invested in an entity. This analysis is performed either upon the creation of a legal entity or upon the occurrence of an event requiring reevaluation, such as a significant change in an entitys assets or activities. If an entity is determined to be a VIE, a qualitative analysis of control determines the party that consolidates a VIE based on what party has the power to direct the most significant activities of a legal entity that impact its economic performance as well as what party has rights to receive benefits or is obligated to absorb losses that are significant to the VIE. The analysis of the party that consolidates a VIE is a continual reassessment. As discussed in Note 17, the Duke Energy Registrants adopted new accounting rules associated with VIEs effective January1, 2010. There were no material changes in decisions on consolidation of VIEs except for the adoption of new accounting rules that required Duke Energy to consolidate Cinergy Receivables, as discussed in Note 1. CONSOLIDATED VIEs The table below shows the VIEs that Duke Energy and Duke Energy Carolinas consolidates and how these entities impact Duke Energys and Duke Energy Carolinas Condensed Consolidated Balance Sheets. All entities listed in the table below are consolidated by Duke Energy, while only Duke Energy Receivables Finance Company, LLC (DERF) is also consolidated by Duke Energy Carolinas. None of these entities is consolidated by Duke Energy Ohio or Duke Energy Indiana. CinergyReceivables DERF CinCapV DukeEnergy (in millions) At March31, 2010 Condensed Consolidated Balance Sheets Receivables Restricted: VIEs $ 626 $ 574 $ $ 1,200 Receivables 11 11 Current Assets: Other 2 2 Investments and Other Assets: Other 107 107 Total Assets 626 574 120 1,320 Non-recourse notes payable of VIEs 350 350 Interest accrued 1 1 Current Maturities of Long-Term Debt 8 8 Current Liabilities: Other 2 2 Long-Term Debt: Non-recourse VIE 300 79 379 Deferred Credits and Other Liabilities: Other 22 22 Total Liabilities 350 300 112 762 Net Duke Energy Corporation Shareholders Equity $ 276 $ 274 $ 8 $ 558 There was no financial support provided during the quarter for the above VIEs that was not previously contractually required. Cinergy Receivables. Cinergy Receivables was formed in order to secure low cost financing for Duke Energy Ohio, including Duke Energy Kentucky,

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS) (DUKE ENERGY CORP)
	3 Months Ended Mar. 31, 2010
Earnings Per Common Share (EPS)	11. Earnings Per Common Share (EPS) Basic EPS is computed by dividing net income attributable to Duke Energy common stockholders, adjusted for distributed and undistributed earnings allocated to participating securities, by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities, 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 stock options, phantom shares and stock-based performance unit awards were exercised or settled. The following table illustrates Duke Energys basic and diluted EPS calculations and reconciles the weighted-average number of common shares outstanding to the diluted weighted-average number of common shares outstanding for the three months ended March31, 2010 and 2009. Income Average Shares EPS (inmillions,exceptper-shareamounts) Three Months Ended March31, 2010 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesbasic $ 444 1,310 $ 0.34 Effect of dilutive securities: Stock options, performance and unvested stock 1 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesdiluted $ 444 1,311 $ 0.34 Three Months Ended March31, 2009 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesbasic $ 341 1,282 $ 0.27 Effect of dilutive securities: Stock options, performance and unvested stock 1 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesdiluted $ 341 1,283 $ 0.27 As of March31, 2010 and 2009, 18million and 20million, respectively, of stock options and performance and unvested stock awards were not included in the effect of dilutive securities in the above table because either the option exercise prices were greater than the average market price of the common shares during those periods, or performance measures related to the awards had not yet been met. During the three months ended March31, 2010 and 2009, Duke Energy received proceeds of $30 million and $170 million, respectively, from the sale of common stock issued to fulfill obligations under its Dividend Reinvestment Plan (DRIP) and other internal plans, including 401(k) plans.

Stock-Based Compensation

Stock-Based Compensation (DUKE ENERGY CORP)
	3 Months Ended Mar. 31, 2010
Stock-Based Compensation	12. Stock-Based Compensation For employee awards, equity classified stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense or capitalized as a component of property, plant and equipment over the requisite service period. Duke Energy recorded pre-tax stock-based compensation expense for the three months ended March31, 2010 and 2009 as follows: ThreeMonthsEnded March31, 2010(a) 2009(a) (in millions) Stock Options $ 2 $ 2 Phantom Awards 8 7 Performance Awards 6 4 Total $ 16 $ 13 (a) Excludes stock-based compensation cost capitalized of $1 million for each of the three months ended March31, 2010 and 2009. The tax benefit associated with the recorded expense for the three months ended March31, 2010 and 2009 was $6 million and $5 million, respectively.

Employee Benefit Obligations

Employee Benefit Obligations
	3 Months Ended Mar. 31, 2010
Employee Benefit Obligations	13. Employee Benefit Obligations Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants for the periods presented. However, portions of the net periodic benefit costs disclosed in the tables below have been capitalized as a component of property, plant and equipment. Duke Energy The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans. Three Months Ended March31, 2010 Three Months Ended March31, 2009 Qualified pension plans(a) Non- Qualified pension plans Other Post- Retirement Benefit plans(b) Qualified pension plans(a) Non- Qualified pension plans Other Post- Retirement Benefit plans(b) (in millions) Service cost $ 24 $ 1 $ 2 $ 20 $ $ 2 Interest cost on benefit obligation 62 2 9 65 3 11 Expected return on plan assets (94 ) (4 ) (91 ) (4 ) Amortization of prior service cost/(credit) 1 1 (3 ) 2 1 (2 ) Amortization of net transition liability 2 3 Amortization of loss/(gain) 12 1 1 (1 ) Contractual termination benefit cost 10 Other 5 4 Net periodic costs $ 20 $ 4 $ 7 $ 1 $ 4 $ 9 (a) Excludes regulatory asset amortization of $4 million and $3 million for the three months ended March31, 2010 and 2009, respectively, resulting from purchase accounting adjustments associated with Duke Energys merger with Cinergy in April 2006. (b) Excludes regulatory asset amortization of $2 million for each of the three months ended March31, 2010 and 2009, respectively, resulting from purchase accounting adjustments associated with Duke Energys merger with Cinergy in April 2006. Duke Energys policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. In February 2009, Duke Energy made an approximate $500 million cash contribution to its U.S. qualified pension plans. Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energys shared services affiliate that provide support to the respective subsidiary registrant. These allocated amounts are included in the governance and shared services costs for each subsidiary registran

Severance

Severance
	3 Months Ended Mar. 31, 2010
Severance	14. Severance In January 2010, Duke Energy announced plans to offer a voluntary severance plan to approximately 8,750 eligible employees. As this is a voluntary plan, all severance benefits offered under this plan are considered special termination benefits under GAAP. Special termination benefits are measured upon employee acceptance and recorded immediately absent a significant retention period. If a significant retention period exists, the cost of the special termination benefits are recorded ratably over the remaining service periods of the affected employees. The window for employees to request to voluntarily end their employment under this plan opened on February3, 2010 and closed on February24, 2010 for approximately 8,400 eligible employees. Also in January 2010, Duke Energy announced that it will consolidate certain corporate office functions, resulting in transitioning over the next two years of approximately 350 positions from its offices in the Midwest to its corporate headquarters in Charlotte, North Carolina. Employees who do not relocate have the option to elect to participate in the voluntary plan discussed above, find a regional position within Duke Energy or remain with Duke Energy through a transition period, at which time a severance benefit would be paid under Duke Energys ongoing severance plan. For employees affected by the consolidation of Duke Energys corporate functions in Charlotte, North Carolina, the window closed March31, 2010. Approximately 900 employees accepted the voluntary severance program. At March31, 2010, total estimated cost associated with the voluntary severance program and office consolidation is $180 million. Of this amount, Duke Energy recorded expenses of $68 million during the first quarter of 2010, of which $41 million was recorded by Duke Energy Carolinas, $10 million was recorded by Duke Energy Ohio and $10 million was recorded by Duke Energy Indiana. As certain employees who accepted the voluntary severance program have significant retention periods, the remaining costs will be recognized ratably over the remaining service period of the employees, with the substantial majority of the remaining costs to be recognized throughout the remainder of 2010. There were no cash payments associated with this voluntary severance program during the first quarter of 2010. Additionally, Duke Energy believes that it is possible that the voluntary severance plan may trigger settlement accounting or curtailment accounting with respect to its pension and other post-retirement benefit plans. At this time, management is unable to determine the likelihood that settlement or curtailment accounting will be triggered.

Income Taxes and Other Taxes

Income Taxes and Other Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes and Other Taxes	15. Income Taxes and Other Taxes Duke Energy or its subsidiaries file income tax returns in the U.S. with federal and various state governmental authorities, and in certain foreign jurisdictions. The taxable income of Duke Energy and its subsidiaries is reflected in Duke Energys U.S. federal and state income tax returns. These subsidiaries have a tax sharing agreement with Duke Energy where the separate return method is used to allocate tax expenses and benefits to the subsidiaries whose investments or results of operations provide these tax expenses and benefits. The accounting for income taxes essentially represents the income taxes that each of these subsidiaries would incur if it were a separate company filing its own tax return as a C-Corporation. Duke Energy. At March31, 2010 and December31, 2009, Duke Energy had unrecognized tax benefits of $663 million and $664 million, respectively. Of the amount of unrecognized tax benefits at March31, 2010, $303 million, if recognized, would affect the effective tax rate or a regulatory liability; however, Duke Energy is currently unable to estimate the specific effect to either. At March31, 2010, Duke Energy had $12 million that, if recognized, would be recorded as a component of discontinued operations. It is reasonably possible that Duke Energy will reflect a $350 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Carolinas. At March31, 2010 and December31, 2009, Duke Energy Carolinas had unrecognized tax benefits of $516 million and $517 million, respectively. Of the amount of unrecognized tax benefits at March31, 2010, $286 million, if recognized, would affect the effective tax rate or a regulatory liability; however, Duke Energy Carolinas is currently unable to estimate the specific effect to either. It is reasonably possible that Duke Energy Carolinas will reflect a $300 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Ohio. At both March31, 2010 and December31, 2009, Duke Energy Ohio had unrecognized tax benefits of $32 million. Of the amount of unrecognized tax benefits at March31, 2010, no portion of the total unrecognized tax benefits, if recognized, would affect the effective tax rate. It is reasonably possible that Duke Energy Ohio will reflect an $18 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Indiana. At both March31, 2010 and December31, 2009, Duke Energy Indiana had unrecognized tax benefits of $28 million. Of the amount of unrecognized tax benefits at March31, 2010, no portion of the total unrecognized tax benefits, if recognized, would affect the effective tax rate. It is reasonably possible that Duke Energy Indiana will reflect a $14 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy and its subsidiaries are no longer subject to U.S. federal examination for years before 1999. Management expects years 1999 through 2003 will be submitted to Joint Committee on Taxation for final review in the second quarte

Related Party Transactions

Related Party Transactions
	3 Months Ended Mar. 31, 2010 DUKE ENERGY OHIO, INC.
DUKE ENERGY OHIO, INC.
Related Party Transactions	16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar
DUKE ENERGY CAROLINAS, LLC
Related Party Transactions	16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar
DUKE ENERGY INDIANA, INC.
Related Party Transactions	16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar

New Accounting Standards

New Accounting Standards
	3 Months Ended Mar. 31, 2010
New Accounting Standards	17. New Accounting Standards The following new accounting standards were adopted by the Duke Energy Registrants subsequent to March31, 2009 and the impact of such adoption, if applicable, has been presented in the respective Condensed Consolidated Financial Statements of the Duke Energy Registrants: Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860Transfers and Servicing (ASC 860). In June 2009, the FASB issued revised accounting guidance for transfers and servicing of financial assets and extinguishment of liabilities, to require additional information about transfers of financial assets, including securitization transactions, as well as additional information about an enterprises continuing exposure to the risks related to transferred financial assets. This revised accounting guidance eliminates the concept of a qualifying special-purpose entity (QSPE) and requires those entities which were not subject to consolidation under previous accounting rules to now be assessed for consolidation. In addition, this accounting guidance clarifies and amends the derecognition criteria for transfers of financial assets (including transfers of portions of financial assets) and requires additional disclosures about a transferors continuing involvement in transferred financial assets. For Duke Energy, this revised accounting guidance is effective prospectively for transfers of financial assets occurring on or after January1, 2010, and early adoption of this statement is prohibited. Since 2002, Duke Energy Ohio, Duke Energy Indiana, and Duke Energy Kentucky have sold, on a revolving basis, nearly all of their accounts receivable and related collections through Cinergy Receivables, a bankruptcy-remote QSPE. The securitization transaction was structured to meet the criteria for sale accounting treatment, and accordingly, Duke Energy did not consolidate Cinergy Receivables, and the transfers have been accounted for as sales. Effective with adoption of this revised accounting guidance and ASC 810-Consolidation (ASC 810), as discussed below, the accounting treatment and/or financial statement presentation of Duke Energys accounts receivable securitization programs was impacted as Duke Energy began consolidating Cinergy Receivables effective January1, 2010. Duke Energy Ohios and Duke Energy Indianas sales of accounts receivable and related financial statement presentation was not impacted by the adoption of ASC 860. See Note 10 for additional information. ASC 810. InJune 2009, the FASB amended existing consolidation accounting guidance to eliminate the exemption from consolidation for QSPEs, and clarified, but did not significantly change, the criteria for determining whether an entity meets the definition of a VIE. This revised accounting guidance also requires an enterprise to qualitatively assess the determination of the primary beneficiary of a VIE based on whether that enterprise has both the power to direct matters that most significantly impact the activities of a VIE and the obligation to absorb losses or the right to receive benefits of a VIE that could potentially be significant to a VIE. In addition, thi

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events	18. Subsequent Events For information on subsequent events related to regulatory matters, commitments and contingencies, and debt and credit facilities, see Notes 3, 4 and 5, respectively.