Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Duke Energy
Report of Independent Registered Public Accounting Firm			74
Consolidated Statements of Operations			77
Consolidated Statements of Comprehensive Income			78
Consolidated Balance Sheets			79
Consolidated Statements of Cash Flows			80
Consolidated Statements of Changes in Equity			81
Duke Energy Carolinas
Report of Independent Registered Public Accounting Firm			82
Consolidated Statements of Operations and Comprehensive Income			84
Consolidated Balance Sheets			85
Consolidated Statements of Cash Flows			86
Consolidated Statements of Changes in Equity			87
Progress Energy
Report of Independent Registered Public Accounting Firm			88
Consolidated Statements of Operations and Comprehensive Income			90
Consolidated Balance Sheets			91
Consolidated Statements of Cash Flows			92
Consolidated Statements of Changes in Equity			93
Duke Energy Progress
Report of Independent Registered Public Accounting Firm			94
Consolidated Statements of Operations and Comprehensive Income			96
Consolidated Balance Sheets			97
Consolidated Statements of Cash Flows			98
Consolidated Statements of Changes in Equity			99
Duke Energy Florida
Report of Independent Registered Public Accounting Firm			100
Consolidated Statements of Operations and Comprehensive Income			102
Consolidated Balance Sheets			103
Consolidated Statements of Cash Flows			104
Consolidated Statements of Changes in Equity			105
Duke Energy Ohio
Report of Independent Registered Public Accounting Firm			106
Consolidated Statements of Operations and Comprehensive Income			108
Consolidated Balance Sheets			109
Consolidated Statements of Cash Flows			110
Consolidated Statements of Changes in Equity			111
Duke Energy Indiana
Report of Independent Registered Public Accounting Firm			112
Consolidated Statements of Operations and Comprehensive Income			114
Consolidated Balance Sheets			115
Consolidated Statements of Cash Flows			116
Consolidated Statements of Changes in Equity			117
Piedmont
Report of Independent Registered Public Accounting Firm			118
Consolidated Statements of Operations and Comprehensive Income			120
Consolidated Balance Sheets			121
Consolidated Statements of Cash Flows			122
Consolidated Statements of Changes in Equity			123

FINANCIAL STATEMENTS

Combined Notes to Consolidated Financial Statements
Note 1 – Summary of Significant Accounting Policies			124
Note 2 – Dispositions			131
Note 3 – Business Segments			134
Note 4 – Regulatory Matters			137
Note 5 – Commitments and Contingencies			153
Note 6 – Leases			157
Note 7 – Debt and Credit Facilities			162
Note 8 – Guarantees and Indemnifications			168
Note 9 – Joint Ownership of Generating and Transmission Facilities			169
Note 10 – Asset Retirement Obligations			169
Note 11 – Property, Plant and Equipment			172
Note 12 – Goodwill and Intangible Assets			174
Note 13 – Investments in Unconsolidated Affiliates			174
Note 14 – Related Party Transactions			176
Note 15 – Derivatives and Hedging			177
Note 16 – Investments in Debt and Equity Securities			183
Note 17 – Fair Value Measurements			187
Note 18 – Variable Interest Entities			192
Note 19 – Revenue			196
Note 20 – Stockholders' Equity			201
Note 21 – Severance			203
Note 22 – Stock-Based Compensation			204
Note 23 – Employee Benefit Plans			206
Note 24 – Income Taxes			219
Note 25 – Other Income and Expenses, Net			226
Note 26 – Subsequent Events			226
Note 27 – Quarterly Financial Data (Unaudited)			226

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Duke Energy Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2024, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1, 4, and 10 to the financial statements.

Critical Audit Matter Description

The Company is subject to regulation by federal and state utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric and natural gas distribution companies. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years have focused on the recoverability of storm costs, fuel costs, and asset retirement obligations specific to coal ash. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We also evaluated the external information and compared it to management’s recorded balances for completeness.

REPORTS

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

• We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs and detail testing procedures on the recoverability of deferred storm costs.

Asset Retirement Obligations – Nuclear Decommissioning Cash Flow Revisions – Refer to Notes 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company owns and operates nuclear facilities and records asset retirement obligations for their eventual decommissioning. On an annual basis, management performs an assessment for any indicators that would suggest a change in decommissioning cost estimates may be necessary. Judgment is required to calculate decommissioning estimates, which are determined through site-specific, third-party cost studies and are based on discounted cash flows, regulatory, legal, and legislative decisions, selection of discount rates and cost escalation rates, among other factors.

We identified the revisions in estimates of cash flows associated with nuclear asset retirement obligations as a critical audit matter because of the estimates and assumptions made by management and management’s specialist in determining the recorded asset retirement obligations. This required a high degree of auditor judgment, and for certain assumptions, the need to involve our environmental and fair value specialists, when performing audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of nuclear asset retirement obligations, including those over management’s assessment of the results of the site-specific cost study, as well as the evaluation of economic inputs.

• We tested the mathematical accuracy of management’s nuclear asset retirement obligation calculations.

• We made inquiries and inspected opinions of internal counsel regarding the status of relevant assumptions.

• With the assistance of professionals in our firm with the appropriate expertise, we inspected and evaluated the reasonableness of the results of the decommissioning study, as well as the impacts of any economic inputs on the calculation of revisions to cash flow estimates.

• We evaluated the Company’s disclosures related to the impacts of the nuclear asset retirement obligation.

• We obtained representation from management asserting that the asset retirement obligations recorded in the financial statements represent management’s best estimates.

Dispositions - Disclosures related to Discontinued Operations and Accounting for the Associated Impairment Charges — Refer to Note 2 to the financial statements.

Critical Audit Matter Description

In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment. As a result, the utility-scale solar and wind group, the distributed generation group and the remaining assets (collectively, Commercial Renewables Disposal Groups) were classified as discontinued operations in the fourth quarter of 2022. During October 2023, Duke Energy completed the divestiture of the utility-scale solar and wind group and the distributed generation group. Pretax impairment charges of approximately $1.7 billion were recorded as of December 31, 2023 on the Commercial Renewables Disposal Groups.

We identified the disclosures related to discontinued operations and accounting for the associated impairment charges as a critical audit matter because of the extensive effort required to audit the subjective and complex judgments associated with the determination of the impairment charges.

REPORTS

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures for the disclosures related to discontinued operations and accounting for the associated impairment charges included the following, among others:

• We tested the effectiveness of management’s controls over (1) the evaluation and disclosure of discontinued operations and (2) the determination of the impairment charges.

• We evaluated management’s assessment of discontinued operations classification and disclosure.

• We assessed the terms of the purchase and sale agreements of the utility-scale solar and wind group and the distributed generation group to evaluate management's calculations of the impairment charges including the completeness and accuracy of amounts included in such calculations and the mathematical accuracy of the calculations.

• With the assistance of our tax specialists, we evaluated the reasonableness of the methods, assumptions, and judgments used by management to determine the income tax benefit associated with the divestitures.

• We evaluated the reasonableness of the determination of the fair value of the remaining assets which are not yet divested.

• We evaluated the accuracy and completeness of the related disclosures.

• We obtained representation from management asserting to the appropriate presentation, measurement and timing of the Commercial Renewables Disposal Groups.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 1947.

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

			Years Ended December 31,
(in millions, except per share amounts)			2023						2022						2021
Operating Revenues
Regulated electric			$	26,617					$	25,759					$	22,319
Regulated natural gas			2,152						2,724						2,008
Nonregulated electric and other			291						285						294
Total operating revenues			29,060						28,768						24,621
Operating Expenses
Fuel used in electric generation and purchased power			9,086						8,782						6,255
Cost of natural gas			593						1,276						705
Operation, maintenance and other			5,625						5,734						5,703
Depreciation and amortization			5,253						5,086						4,762
Property and other taxes			1,400						1,466						1,355
Impairment of assets and other charges			85						434						353
Total operating expenses			22,042						22,778						19,133
Gains on Sales of Other Assets and Other, net			52						22						12
Operating Income			7,070						6,012						5,500
Other Income and Expenses
Equity in earnings of unconsolidated affiliates			113						113						62
Other income and expenses, net			598						392						636
Total other income and expenses			711						505						698
Interest Expense			3,014						2,439						2,207
Income From Continuing Operations Before Income Taxes			4,767						4,078						3,991
Income Tax Expense From Continuing Operations			438						300						268
Income From Continuing Operations			4,329						3,778						3,723
Loss From Discontinued Operations, net of tax			(1,455)						(1,323)						(144)
Net Income			2,874						2,455						3,579
Add: Net (Income) Loss Attributable to Noncontrolling Interests			(33)						95						329
Net Income Attributable to Duke Energy Corporation			2,841						2,550						3,908
Less: Preferred Dividends			106						106						106
Net Income Available to Duke Energy Corporation Common Stockholders			$	2,735					$	2,444					$	3,802
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted			$	5.35					$	4.74					$	4.68
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted			$	(1.81)					$	(1.57)					$	0.26
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted			$	3.54					$	3.17					$	4.94
Weighted average shares outstanding
Basic and Diluted			771						770						769

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Net Income			$	2,874					$	2,455					$	3,579
Other Comprehensive Income (Loss), net of tax**(a)**
Pension and OPEB adjustments			(1)						(19)						7
Net unrealized gains (losses) on cash flow hedges			63						285						(68)
Reclassification into earnings from cash flow hedges			27						(38)						13
Net unrealized gains (losses) on fair value hedges			37						(33)						—
Unrealized gains (losses) on available-for-sale securities			8						(21)						(8)
Other Comprehensive Income (Loss), net of tax			134						174						(56)
Comprehensive Income			3,008						2,629						3,523
Add: Comprehensive (Income) Loss Attributable to Noncontrolling Interests			(33)						84						319
Comprehensive Income Attributable to Duke Energy Corporation			2,975						2,713						3,842
Less: Preferred Dividends			106						106						106
Comprehensive Income Available to Duke Energy Corporation Common Stockholders			$	2,869					$	2,607					$	3,736

(a) Net of income tax expense of approximately $40 million and $52 million for the years ended December 31, 2023, and 2022, respectively, and income tax benefit of $17 million for the year ended December 31, 2021.

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	253					$	409
Receivables (net of allowance for doubtful accounts of $55 at 2023 and $40 at 2022)			1,112						1,309
Receivables of VIEs (net of allowance for doubtful accounts of $150 at 2023 and $176 at 2022)			3,019						3,106
Inventory (includes $462 at 2023 related to VIEs)			4,292						3,584
Regulatory assets (includes $110 at 2023 and $106 at 2022 related to VIEs)			3,648						3,485
Assets held for sale			14						356
Other (includes $90 at 2023 and $116 at 2022 related to VIEs)			431						973
Total current assets			12,769						13,222
Property, Plant and Equipment
Cost			171,351						163,839
Accumulated depreciation and amortization			(56,038)						(52,100)
Facilities to be retired, net			2						9
Net property, plant and equipment			115,315						111,748
Other Noncurrent Assets
Goodwill			19,303						19,303
Regulatory assets (includes $1,642 at 2023 and $1,715 at 2022 related to VIEs)			13,618						14,645
Nuclear decommissioning trust funds			10,143						8,637
Operating lease right-of-use assets, net			1,092						1,042
Investments in equity method unconsolidated affiliates			492						455
Assets held for sale			197						5,634
Other (includes $49 at 2023 and $52 at 2022 related to VIEs)			3,964						3,400
Total other noncurrent assets			48,809						53,116
Total Assets			$	176,893					$	178,086
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $188 at 2023 related to VIEs)			$	4,228					$	4,754
Notes payable and commercial paper			4,288						3,952
Taxes accrued			816						722
Interest accrued			745						626
Current maturities of long-term debt (includes $428 at 2023 and $350 at 2022 related to VIEs)			2,800						3,878
Asset retirement obligations			596						773
Regulatory liabilities			1,369						1,466
Liabilities associated with assets held for sale			122						535
Other			2,319						2,167
Total current liabilities			17,283						18,873
Long-Term Debt (includes $3,000 at 2023 and $3,108 at 2022 related to VIEs)			72,452						65,873
Other Noncurrent Liabilities
Deferred income taxes			10,556						9,964
Asset retirement obligations			8,560						11,955
Regulatory liabilities			14,039						13,582
Operating lease liabilities			917						876
Accrued pension and other post-retirement benefit costs			485						832
Investment tax credits			864						849
Liabilities associated with assets held for sale			157						1,927
Other (includes $35 at 2023 related to VIEs)			1,393						1,502
Total other noncurrent liabilities			36,971						41,487
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2023 and 2022			973						973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2023 and 2022			989						989
Common stock, $0.001 par value, 2 billion shares authorized; 771 million and 770 million shares outstanding at 2023 and 2022			1						1
Additional paid-in capital			44,920						44,862
Retained earnings			2,235						2,637
Accumulated other comprehensive loss			(6)						(140)
Total Duke Energy Corporation stockholders' equity			49,112						49,322
Noncontrolling interests			1,075						2,531
Total equity			50,187						51,853
Total Liabilities and Equity			$	176,893					$	178,086

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	2,874					$	2,455					$	3,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)			6,084						5,843						5,663
Equity in (earnings) losses of unconsolidated affiliates			(98)						(114)						(28)
Equity component of AFUDC			(198)						(197)						(171)
Losses on sales of Commercial Renewables Disposal Groups			1,725						1,748						—
Gains on sales of other assets			(52)						(22)						(13)
Impairment of assets and other charges			85						434						356
Deferred income taxes			3						(200)						191
Contributions to qualified pension plans			(100)						(58)						—
Payments for asset retirement obligations			(632)						(584)						(540)
Provision for rate refunds			(63)						(130)						(70)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions			(18)						19						50
Receivables			443						(788)						(297)
Inventory			(706)						(476)						(34)
Other current assets			(267)						(1,498)						(1,136)
Increase (decrease) in
Accounts payable			(800)						805						249
Taxes accrued			126						10						284
Other current liabilities			(26)						(153)						(13)
Other assets			914						(1,577)						125
Other liabilities			584						410						95
Net cash provided by operating activities			9,878						5,927						8,290
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(12,604)						(11,367)						(9,715)
Contributions to equity method investments			(34)						(58)						(81)
Return of investment capital			16						6						44
Purchases of debt and equity securities			(3,761)						(4,243)						(6,098)
Proceeds from sales and maturities of debt and equity securities			3,824						4,333						6,103
Proceeds from the sales of other assets			149						83						—
Proceeds from the sales of Commercial Renewables Disposal Groups, net of cash divested			734						—						—
Disbursements to canceled equity method investments			—						—						(855)
Other			(799)						(727)						(333)
Net cash used in investing activities			(12,475)						(11,973)						(10,935)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
Issuance of long-term debt			10,028						11,874						9,052
Issuance of common stock			8						9						5
Payments for the redemption of long-term debt			(4,737)						(4,396)						(5,294)
Proceeds from the issuance of short-term debt with original maturities greater than 90 days			610						80						332
Payments for the redemption of short-term debt with original maturities greater than 90 days			(125)						(287)						(997)
Notes payable and commercial paper			(343)						781						1,144
Contributions from noncontrolling interests			278						1,377						1,575
Dividends paid			(3,244)						(3,179)						(3,114)
Other			(124)						(130)						(94)
Net cash provided by financing activities			2,351						6,129						2,609
Net (decrease) increase in cash, cash equivalents and restricted cash			(246)						83						(36)
Cash, cash equivalents and restricted cash at beginning of period			603						520						556
Cash, cash equivalents and restricted cash at end of period			$	357					$	603					$	520
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	2,883					$	2,361					$	2,248
Cash paid for (received from) income taxes			1						(6)						(3)
Significant non-cash transactions:
Accrued capital expenditures			1,908						1,766						1,325

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																																	Duke Energy Corporation Stockholders' Accumulated Other Comprehensive Income (Loss)
																																							Net Unrealized												Total
																																	Net Gains						Gains (Losses)												Duke Energy
						Common									Additional																		(Losses)						on Available-						Pension and						Corporation
			Preferred			Stock			Common						Paid-in						Retained												on						for-Sale-						OPEB						Stockholders'						Noncontrolling						Total
(in millions)			Stock			Shares			Stock						Capital						Earnings												Hedges**(d)**						Securities						Adjustments						Equity						Interests						Equity
Balance at December 31, 2020			$	1,962		769			$	1					$	43,767					$	2,471											$	(167)					$	6					$	(76)					$	47,964					$	1,220					$	49,184
Net income (loss)			—			—			—						—						3,802												—						—						—						3,802						(329)						3,473
Other comprehensive (loss) income			—			—			—						—						—												(65)						(8)						7						(66)						10						(56)
Common stock issuances, including dividend reinvestment and employee benefits			—			—			—						68						—												—						—						—						68						—						68
Common stock dividends			—			—			—						—						(3,008)												—						—						—						(3,008)						—						(3,008)
Sale of noncontrolling interest(b)			—			—			—						545						—												—						—						—						545						454						999
Contribution from noncontrolling interest(a)			—			—			—						—						—												—						—						—						—						550						550
Distributions to noncontrolling interest in subsidiaries			—			—			—						—						—												—						—						—						—						(66)						(66)
Other			—			—			—						(9)						—												—						—						—						(9)						1						(8)
Balance at December 31, 2021			$	1,962		769			$	1					$	44,371					$	3,265											$	(232)					$	(2)					$	(69)					$	49,296					$	1,840					$	51,136
Net income (loss)			—			—			—						—						2,444												—						—						—						2,444						(95)						2,349
Other comprehensive income (loss)			—			—			—						—						—												203						(21)						(19)						163						11						174
Common stock issuances, including dividend reinvestment and employee benefits			—			1			—						76						—												—						—						—						76						—						76
Common stock dividends			—			—			—						—						(3,073)												—						—						—						(3,073)						—						(3,073)
Sale of noncontrolling interest(b)			—			—			—						465						—												—						—						—						465						569						1,034
Purchase of noncontrolling interest			—			—			—						(51)						—												—						—						—						(51)						31						(20)
Contribution from noncontrolling interest, net of transaction costs(a)			—			—			—						—						—												—						—						—						—						314						314
Distributions to noncontrolling interest in subsidiaries			—			—			—						—						—												—						—						—						—						(140)						(140)
Other			—			—			—						1						1												—						—						—						2						1						3
Balance at December 31, 2022			$	1,962		770			$	1					$	44,862					$	2,637											$	(29)					$	(23)					$	(88)					$	49,322					$	2,531					$	51,853
Net income			—			—			—						—						2,735												—						—						—						2,735						33						2,768
Other comprehensive income (loss)			—			—			—						—						—												127						8						(1)						134						—						134
Common stock issuances, including dividend reinvestment and employee benefits			—			1			—						78						—												—						—						—						78						—						78
Common stock dividends			—			—			—						—						(3,138)												—						—						—						(3,138)						—						(3,138)
Sale of noncontrolling interest			—			—			—						(13)						—												—						—						—						(13)						10						(3)
Contribution from noncontrolling interest, net of transaction costs(a)			—			—			—						—						—												—						—						—						—						278						278
Distributions to noncontrolling interests in subsidiaries			—			—			—						—						—												—						—						—						—						(59)						(59)
Sale of Commercial Renewables Disposal Groups(c)			—			—			—						—						—																		—						—						—						(1,722)						(1,722)
Other			—			—			—						(7)						1												—						—						—						(6)						4						(2)
Balance at December 31, 2023			$	1,962		771			$	1					$	44,920					$	2,235											$	98					$	(15)					$	(89)					$	49,112					$	1,075					$	50,187

(a) Relates to tax equity financing activity in the Commercial Renewables Disposal Groups.

(b) Relates primarily to the sale of a noncontrolling interest in Duke Energy Indiana. See Note 2 for additional information.

(c) See Note 2 for additional information.

(d) See Duke Energy Consolidated Statements of Comprehensive Income for detailed activity related to Cash Flow and Fair Value Hedges.

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Carolinas, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1, 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission and by the South Carolina Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years have focused on the recoverability of fuel costs and asset retirement obligations specific to coal ash. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

REPORTS

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

• We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs.

Asset Retirement Obligations – Nuclear Decommissioning Cash Flow Revisions – Refer to Notes 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company owns and operates nuclear facilities and records asset retirement obligations for their eventual decommissioning. On an annual basis, management performs an assessment for any indicators that would suggest a change in decommissioning cost estimates may be necessary. Judgment is required to calculate decommissioning estimates, which are determined through site-specific, third-party cost studies and are based on discounted cash flows, regulatory, legal, and legislative decisions, selection of discount rates and cost escalation rates, among other factors.

We identified the revisions in estimates of cash flows associated with nuclear asset retirement obligations as a critical audit matter because of the estimates and assumptions made by management and management’s specialist in determining the recorded asset retirement obligations. This required a high degree of auditor judgment, and for certain assumptions, the need to involve our environmental and fair value specialists, when performing audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of nuclear asset retirement obligations, including those over management’s assessment of the results of the site-specific cost study, as well as the evaluation of economic inputs.

• We tested the mathematical accuracy of management’s nuclear asset retirement obligation calculations.

• We made inquiries and inspected opinions of internal counsel regarding the status of relevant assumptions.

• With the assistance of professionals in our firm with the appropriate expertise, we inspected and evaluated the reasonableness of the results of the decommissioning study, as well as the impacts of any economic inputs on the calculation of revisions to cash flow estimates.

• We evaluated the Company’s disclosures related to the impacts of the nuclear asset retirement obligation.

• We obtained representation from management asserting that the asset retirement obligations recorded in the financial statements represent management’s best estimate.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 1947.

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues			$	8,288					$	7,857					$	7,102
Operating Expenses
Fuel used in electric generation and purchased power			2,524						2,015						1,601
Operation, maintenance and other			1,774						1,892						1,833
Depreciation and amortization			1,593						1,526						1,468
Property and other taxes			320						340						320
Impairment of assets and other charges			44						26						227
Total operating expenses			6,255						5,799						5,449
Gains on Sales of Other Assets and Other, net			26						4						2
Operating Income			2,059						2,062						1,655
Other Income and Expenses, net			238						221						270
Interest Expense			686						557						538
Income Before Income Taxes			1,611						1,726						1,387
Income Tax Expense			141						126						51
Net Income			$	1,470					$	1,600					$	1,336
Other Comprehensive Income, net of tax
Net unrealized gain on cash flow hedges			—						—						1
Other Comprehensive Income, net of tax			—						—						1
Comprehensive Income			$	1,470					$	1,600					$	1,337

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED BALANCE SHEETS

						December 31,
(in millions)						2023						2022
ASSETS
Current Assets
Cash and cash equivalents						$	9					$	44
Receivables (net of allowance for doubtful accounts of $11 at 2023 and $3 at 2022)						265						338
Receivables of VIEs (net of allowance for doubtful accounts of $45 at 2023 and $65 at 2022)						991						928
Receivables from affiliated companies						203						390
Inventory						1,484						1,164
Regulatory assets (includes $12 at 2023 and 2022 related to VIEs)						1,564						1,095
Other (includes $9 at 2023 and $8 at 2022 related to VIEs)						31						216
Total current assets						4,547						4,175
Property, Plant and Equipment
Cost						56,670						54,650
Accumulated depreciation and amortization						(19,896)						(18,669)
Net property, plant and equipment						36,774						35,981
Other Noncurrent Assets
Regulatory assets (includes $196 at 2023 and $208 at 2022 related to VIEs)						3,916						4,293
Nuclear decommissioning trust funds						5,686						4,783
Operating lease right-of-use assets, net						78						78
Other						1,109						1,036
Total other noncurrent assets						10,789						10,190
Total Assets						$	52,110					$	50,346
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable						$	1,183					$	1,472
Accounts payable to affiliated companies						195						209
Notes payable to affiliated companies						668						1,233
Taxes accrued						281						228
Interest accrued						179						120
Current maturities of long-term debt (includes $10 at 2023 and 2022 related to VIEs)						19						1,018
Asset retirement obligations						224						261
Regulatory liabilities						587						530
Other						702						580
Total current liabilities						4,038						5,651
Long-Term Debt (includes $708 at 2023 and $689 at 2022 related to VIEs)						15,693						12,948
Long-Term Debt Payable to Affiliated Companies						300						300
Other Noncurrent Liabilities
Deferred income taxes						4,379						4,153
Asset retirement obligations						3,789						5,121
Regulatory liabilities						5,990						5,783
Operating lease liabilities						75						83
Accrued pension and other post-retirement benefit costs						57						38
Investment tax credits						301						300
Other						581						527
Total other noncurrent liabilities						15,172						16,005
Commitments and Contingencies
Equity
Member's equity						16,913						15,448
Accumulated other comprehensive loss						(6)						(6)
Total equity						16,907						15,442
Total Liabilities and Equity						$	52,110					$	50,346

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,470					$	1,600					$	1,336
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)			1,845						1,787						1,743
Equity component of AFUDC			(91)						(98)						(65)
Gains on sales of other assets			(26)						(4)						(2)
Impairment of assets and other charges			44						26						227
Deferred income taxes			(53)						210						(213)
Contributions to qualified pension plans			(26)						(15)						—
Payments for asset retirement obligations			(210)						(200)						(182)
Provision for rate refunds			(39)						(74)						(46)
(Increase) decrease in
Receivables			22						(102)						(99)
Receivables from affiliated companies			187						(200)						(66)
Inventory			(320)						(138)						(16)
Other current assets			(495)						(592)						(309)
Increase (decrease) in
Accounts payable			(447)						377						5
Accounts payable to affiliated companies			(14)						(75)						85
Taxes accrued			64						(46)						206
Other current liabilities			63						(91)						(39)
Other assets			703						(760)						23
Other liabilities			108						(36)						116
Net cash provided by operating activities			2,785						1,569						2,704
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(3,733)						(3,304)						(2,693)
Purchases of debt and equity securities			(2,025)						(2,633)						(3,425)
Proceeds from sales and maturities of debt and equity securities			2,025						2,633						3,425
Net proceeds from the sales of other assets			30						62						—
Other			(288)						(243)						(177)
Net cash used in investing activities			(3,991)						(3,485)						(2,870)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			2,780						1,441						1,651
Payments for the redemption of long-term debt			(1,042)						(436)						(617)
Notes payable to affiliated companies			(565)						1,007						(280)
Distributions to parent			—						(50)						(600)
Other			(1)						(1)						(1)
Net cash provided by financing activities			1,172						1,961						153
Net (decrease) increase in cash, cash equivalents and restricted cash			(34)						45						(13)
Cash, cash equivalents and restricted cash at beginning of period			53						8						21
Cash, cash equivalents and restricted cash at end of period			$	19					$	53					$	8
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	528					$	546					$	508
Cash paid for (received from) income taxes			151						(60)						233
Significant non-cash transactions:
Accrued capital expenditures			613						475						359

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

									Accumulated Other
									Comprehensive
									Income (Loss)
									Net Gains
									(Losses) on
			Member's						Cash Flow												Total
(in millions)			Equity						Hedges												Equity
Balance at December 31, 2020			$	13,161					$	(7)											$	13,154
Net income			1,336						—												1,336
Other comprehensive income			—						1												1
Distributions to parent			(600)						—												(600)
Balance at December 31, 2021			$	13,897					$	(6)											$	13,891
Net income			1,600						—												1,600
Distributions to parent			(50)						—												(50)
Other			1						—												1
Balance at December 31, 2022			$	15,448					$	(6)											$	15,442
Net income			1,470						—												1,470
Other			(5)						—												(5)
Balance at December 31, 2023			$	16,913					$	(6)											$	16,907

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Progress Energy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1, 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission, South Carolina Public Service Commission and Florida Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years have focused on the recoverability of storm costs, fuel costs, and asset retirement obligations specific to coal ash. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

REPORTS

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

• We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs and detail testing procedures on the recoverability of deferred storm costs.

Asset Retirement Obligations – Nuclear Decommissioning Cash Flow Revisions – Refer to Notes 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company owns and operates nuclear facilities and records asset retirement obligations for their eventual decommissioning. On an annual basis, management performs an assessment for any indicators that would suggest a change in decommissioning cost estimates may be necessary. Judgment is required to calculate decommissioning estimates, which are determined through site-specific, third-party cost studies and are based on discounted cash flows, regulatory, legal, and legislative decisions, selection of discount rates and cost escalation rates, among other factors.

We identified the revisions in estimates of cash flows associated with nuclear asset retirement obligations as a critical audit matter because of the estimates and assumptions made by management in determining the recorded asset retirement obligations. This required a high degree of auditor judgment, and for certain assumptions, the need to involve our fair value specialists, when performing audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of nuclear asset retirement obligations, including those over management’s assessment of the economic inputs.

• We tested the mathematical accuracy of management’s nuclear asset retirement obligation calculations.

• We made inquiries and inspected opinions of internal counsel regarding the status of relevant assumptions.

• With the assistance of professionals in our firm with the appropriate expertise, we inspected and evaluated the reasonableness of the impacts of any economic inputs on the calculation of revisions to cash flow estimates.

• We evaluated the Company’s disclosures related to the impacts of the nuclear asset retirement obligation.

• We obtained representation from management asserting that the asset retirement obligations recorded in the financial statements represent management’s best estimate.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 1930.

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues			$	13,544					$	13,125					$	11,057
Operating Expenses
Fuel used in electric generation and purchased power			5,026						5,078						3,584
Operation, maintenance and other			2,636						2,458						2,529
Depreciation and amortization			2,151						2,142						1,929
Property and other taxes			644						607						542
Impairment of assets and other charges			28						12						82
Total operating expenses			10,485						10,297						8,666
Gains on Sales of Other Assets and Other, net			27						11						14
Operating Income			3,086						2,839						2,405
Other Income and Expenses, net			201						181						215
Interest Expense			954						844						794
Income Before Income Taxes			2,333						2,176						1,826
Income Tax Expense			377						348						227
Net Income			1,956						1,828						1,599
Less: Net Income Attributable to Noncontrolling Interests			—						—						1
Net Income Attributable to Parent			$	1,956					$	1,828					$	1,598
Net Income			$	1,956					$	1,828					$	1,599
Other Comprehensive Income, net of tax
Pension and OPEB adjustments			(2)						5						1
Net unrealized gain on cash flow hedges			—						1						3
Unrealized gains (losses) on available-for-sale securities			3						(6)						—
Other Comprehensive Income, net of tax			1						—						4
Comprehensive Income			1,957						1,828						1,603
Less: Comprehensive Income Attributable to Noncontrolling Interests			—						—						1
Comprehensive Income Attributable to Parent			$	1,957					$	1,828					$	1,602

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	59					$	108
Receivables (net of allowance for doubtful accounts of $18 at 2023 and $13 at 2022)			225						318
Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2023 and $68 at 2022)			1,365						1,289
Receivables from affiliated companies			90						22
Inventory (includes $462 at 2023 related to VIEs)			1,901						1,579
Regulatory assets (includes $98 at 2023 and $94 at 2022 related to VIEs)			1,661						1,833
Other (includes $68 at 2023 and $88 at 2022 related to VIEs)			134						342
Total current assets			5,435						5,491
Property, Plant and Equipment
Cost			67,644						64,822
Accumulated depreciation and amortization			(22,300)						(20,584)
Net property, plant and equipment			45,344						44,238
Other Noncurrent Assets
Goodwill			3,655						3,655
Regulatory assets (includes $1,446 at 2023 and $1,507 at 2022 related to VIEs)			6,430						7,146
Nuclear decommissioning trust funds			4,457						3,855
Operating lease right-of-use assets, net			617						628
Other			1,156						1,066
Total other noncurrent assets			16,315						16,350
Total Assets			$	67,094					$	66,079
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $188 at 2023 related to VIEs)			$	1,374					$	1,481
Accounts payable to affiliated companies			464						712
Notes payable to affiliated companies			1,043						843
Taxes accrued			259						135
Interest accrued			224						206
Current maturities of long-term debt (includes $418 at 2023 and $340 at 2022 related to VIEs)			661						697
Asset retirement obligations			245						289
Regulatory liabilities			418						576
Other			860						782
Total current liabilities			5,548						5,721
Long-Term Debt (includes $1,910 at 2023 and $2,003 at 2022 related to VIEs)			22,948						21,592
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			5,197						5,147
Asset retirement obligations			3,900						5,892
Regulatory liabilities			5,083						4,753
Operating lease liabilities			544						546
Accrued pension and other post-retirement benefit costs			266						292
Investment tax credits			371						358
Other (includes $19 at 2023 related to VIEs)			227						222
Total other noncurrent liabilities			15,588						17,210
Commitments and Contingencies
Equity
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2023 and 2022			—						—
Additional paid-in capital			11,830						11,832
Retained earnings			11,040						9,585
Accumulated other comprehensive loss			(10)						(11)
Total equity			22,860						21,406
Total Liabilities and Equity			$	67,094					$	66,079

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,956					$	1,828					$	1,599
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)			2,721						2,405						2,302
Equity component of AFUDC			(67)						(68)						(51)
Gains on sales of other assets			(27)						(11)						(14)
Impairment of assets and other charges			28						12						82
Deferred income taxes			(120)						364						247
Contributions to qualified pension plans			(22)						(13)						—
Payments for asset retirement obligations			(329)						(291)						(288)
Provision for rate refunds			(24)						(58)						(36)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions			—						—						51
Receivables			21						(322)						(97)
Receivables from affiliated companies			(68)						117						18
Inventory			(322)						(183)						(26)
Other current assets			287						(937)						(551)
Increase (decrease) in
Accounts payable			(266)						222						59
Accounts payable to affiliated companies			(248)						206						217
Taxes accrued			124						8						13
Other current liabilities			9						96						(32)
Other assets			357						(1,105)						(96)
Other liabilities			108						573						(99)
Net cash provided by operating activities			4,118						2,843						3,298
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(4,917)						(4,317)						(3,668)
Purchases of debt and equity securities			(1,590)						(1,341)						(2,233)
Proceeds from sales and maturities of debt and equity securities			1,663						1,417						2,322
Other			(329)						(137)						(156)
Net cash used in investing activities			(5,173)						(4,378)						(3,735)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			2,555						2,775						3,095
Payments for the redemption of long-term debt			(1,248)						(1,173)						(1,883)
Notes payable to affiliated companies			200						465						(160)
Dividends to parent			(500)						(425)						(700)
Other			(1)						(36)						(2)
Net cash provided by financing activities			1,006						1,606						350
Net (decrease) increase in cash, cash equivalents and restricted cash			(49)						71						(87)
Cash, cash equivalents and restricted cash at beginning of period			184						113						200
Cash, cash equivalents and restricted cash at end of period			$	135					$	184					$	113
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	954					$	854					$	813
Cash paid for income taxes			310						79						14
Significant non-cash transactions:
Accrued capital expenditures			806						663						501

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Accumulated Other Comprehensive Income (Loss)
																					Net Gains						Net Unrealized												Total Progress
									Additional												(Losses) on						Gains (Losses)						Pension and						Energy, Inc.
									Paid-in						Retained						Cash Flow						on Available-for-						OPEB						Stockholder's						Noncontrolling						Total
(in millions)									Capital						Earnings						Hedges						Sale Securities						Adjustments						Equity						Interests						Equity
Balance at December 31, 2020									$	9,143					$	7,109					$	(5)					$	(2)					$	(8)					$	16,237					$	4					$	16,241
Net income									—						1,598						—						—						—						1,598						1						1,599
Other comprehensive income									—						—						3						—						1						4						—						4
Distributions to noncontrolling interests									—						—						—						—						—						—						(1)						(1)
Dividends to parent									—						(700)						—						—						—						(700)						—						(700)
Other									6						—						—						—						—						6						(1)						5
Balance at December 31, 2021									$	9,149					$	8,007					$	(2)					$	(2)					$	(7)					$	17,145					$	3					$	17,148
Net income									—						1,828						—						—						—						1,828						—						1,828
Other comprehensive income (loss)									—						—						1						(6)						5						—						—						—
Distributions to noncontrolling interests									—						—						—						—						—						—						(34)						(34)
Dividends to parent									(175)						(250)						—						—						—						(425)						—						(425)
Equitization of certain notes payable to affiliates									2,907						—						—						—						—						2,907						—						2,907
Purchase of a noncontrolling interest									(51)						—						—						—						—						(51)						31						(20)
Other									2						—						—						—						—						2						—						2
Balance at December 31, 2022									$	11,832					$	9,585					$	(1)					$	(8)					$	(2)					$	21,406					$	—					$	21,406
Net income									—						1,956						—						—						—						1,956						—						1,956
Other comprehensive income									—						—						—						3						(2)						1						—						1
Dividends to parent									—						(500)						—						—						—						(500)						—						(500)
Other									(2)						(1)						—						—						—						(3)						—						(3)
Balance at December 31, 2023									$	11,830					$	11,040					$	(1)					$	(5)					$	(4)					$	22,860					$	—					$	22,860

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Progress, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Progress, LLC and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1, 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission and by the South Carolina Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years have focused on the recoverability of fuel costs and asset retirement obligations specific to coal ash. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

REPORTS

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

• We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs.

Asset Retirement Obligations – Nuclear Decommissioning Cash Flow Revisions – Refer to Notes 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company owns and operates nuclear facilities and records asset retirement obligations for their eventual decommissioning. On an annual basis, management performs an assessment for any indicators that would suggest a change in decommissioning cost estimates may be necessary. Judgment is required to calculate decommissioning estimates, which are determined through site-specific, third-party cost studies and are based on discounted cash flows, regulatory, legal, and legislative decisions, selection of discount rates and cost escalation rates, among other factors.

We identified the revisions in estimates of cash flows associated with nuclear asset retirement obligations as a critical audit matter because of the estimates and assumptions made by management in determining the recorded asset retirement obligations. This required a high degree of auditor judgment, and for certain assumptions, the need to involve our fair value specialists, when performing audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the revisions in estimates of cash flows associated with nuclear asset retirement obligations included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of nuclear asset retirement obligations, including those over management’s assessment of the economic inputs.

• We tested the mathematical accuracy of management’s nuclear asset retirement obligation calculations.

• We made inquiries and inspected opinions of internal counsel regarding the status of relevant assumptions.

• With the assistance of professionals in our firm with the appropriate expertise, we inspected and evaluated the reasonableness of the impacts of any economic inputs on the calculation of revisions to cash flow estimates.

• We evaluated the Company’s disclosures related to the impacts of the nuclear asset retirement obligation.

• We obtained representation from management asserting that the asset retirement obligations recorded in the financial statements represent management’s best estimate.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 1930.

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues			$	6,488					$	6,753					$	5,780
Operating Expenses
Fuel used in electric generation and purchased power			2,203						2,492						1,778
Operation, maintenance and other			1,379						1,475						1,467
Depreciation and amortization			1,266						1,187						1,097
Property and other taxes			164						190						159
Impairment of assets and other charges			29						7						63
Total operating expenses			5,041						5,351						4,564
Gains on Sales of Other Assets and Other, net			3						4						13
Operating Income			1,450						1,406						1,229
Other Income and Expenses, net			124						114						143
Interest Expense			427						354						306
Income Before Income Taxes			1,147						1,166						1,066
Income Tax Expense			149						158						75
Net Income and Comprehensive Income			$	998					$	1,008					$	991

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	18					$	49
Receivables (net of allowance for doubtful accounts of $8 at 2023 and $4 at 2022)			139						167
Receivables of VIEs (net of allowance for doubtful accounts of $36 at 2023 and $40 at 2022)			833						793
Receivables from affiliated companies			16						25
Inventory			1,227						1,006
Regulatory assets (includes $39 at 2023 and 2022 related to VIEs)			942						690
Other (includes $31 at 2023 and $42 at 2022 related to VIEs)			72						174
Total current assets			3,247						2,904
Property, Plant and Equipment
Cost			39,283						38,875
Accumulated depreciation and amortization			(15,227)						(14,201)
Net property, plant and equipment			24,056						24,674
Other Noncurrent Assets
Regulatory assets (includes $643 at 2023 and $681 at 2022 related to VIEs)			4,546						4,724
Nuclear decommissioning trust funds			4,075						3,430
Operating lease right-of-use assets, net			318						370
Other			682						650
Total other noncurrent assets			9,621						9,174
Total Assets			$	36,924					$	36,752
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	634					$	601
Accounts payable to affiliated companies			332						508
Notes payable to affiliated companies			891						238
Taxes accrued			176						77
Interest accrued			114						101
Current maturities of long-term debt (includes $34 at 2023 and 2022 related to VIEs)			72						369
Asset retirement obligations			244						288
Regulatory liabilities			300						332
Other			481						384
Total current liabilities			3,244						2,898
Long-Term Debt (includes $1,079 at 2023 and $1,114 at 2022 related to VIEs)			11,492						10,568
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			2,560						2,477
Asset retirement obligations			3,626						5,535
Regulatory liabilities			4,375						4,120
Operating lease liabilities			293						335
Accrued pension and other post-retirement benefit costs			146						160
Investment tax credits			129						124
Other (includes $12 at 2023 related to VIEs)			102						76
Total other noncurrent liabilities			11,231						12,827
Commitments and Contingencies
Equity
Member's Equity			10,807						10,309
Total Liabilities and Equity			$	36,924					$	36,752

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	998					$	1,008					$	991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)			1,460						1,371						1,286
Equity component of AFUDC			(52)						(52)						(34)
Impairment of assets and other charges			29						7						63
Deferred income taxes			(53)						121						(46)
Contributions to qualified pension plans			(13)						(8)						—
Payments for asset retirement obligations			(249)						(193)						(187)
Provisions for rate refunds			(24)						(58)						(36)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions			—						—						48
Receivables			(10)						(228)						(52)
Receivables from affiliated companies			9						58						(33)
Inventory			(221)						(85)						(11)
Other current assets			(252)						(207)						(147)
Increase (decrease) in
Accounts payable			(26)						20						12
Accounts payable to affiliated companies			(176)						198						95
Taxes accrued			99						(86)						83
Other current liabilities			13						13						(23)
Other assets			173						(416)						(37)
Other liabilities			29						38						(16)
Net cash provided by operating activities			1,734						1,501						1,956
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(2,387)						(2,070)						(1,746)
Purchases of debt and equity securities			(1,406)						(1,148)						(1,931)
Proceeds from sales and maturities of debt and equity securities			1,402						1,138						1,914
Other			(144)						(29)						(20)
Net cash used in investing activities			(2,535)						(2,109)						(1,783)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			991						1,477						1,959
Payments for the redemption of long-term debt			(369)						(645)						(1,308)
Notes payable to affiliated companies			652						67						(123)
Distributions to parent			(500)						(250)						(700)
Other			(1)						(1)						(1)
Net cash provided by (used in) financing activities			773						648						(173)
Net (decrease) increase in cash, cash equivalents and restricted cash			(28)						40						—
Cash, cash equivalents and restricted cash at beginning of period			79						39						39
Cash, cash equivalents and restricted cash at end of period			$	51					$	79					$	39
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	447					$	386					$	335
Cash paid for income taxes			73						157						83
Significant non-cash transactions:
Accrued capital expenditures			313						269						163

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

															Member's
(in millions)															Equity
Balance at December 31, 2020															$	9,260
Net income															991
Distribution to parent															(700)
Balance at December 31, 2021															$	9,551
Net income															1,008
Distribution to parent															(250)
Balance at December 31, 2022															$	10,309
Net income															998
Distribution to parent															(500)
Balance at December 31, 2023															$	10,807

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Florida, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Florida, LLC and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Florida Public Service Commission (the “Commission”), which has jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years have focused on the recoverability of storm and fuel cost. As a result, assessing the potential outcomes of future regulatory orders in Florida requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commission to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commission, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commission’s treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

• For regulatory matters in process, we inspected the Company’s and intervenors’ filings with the Commission, that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

REPORTS

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs and detail testing procedures on the recoverability of deferred storm costs.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 2001.

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues			$	7,036					$	6,353					$	5,259
Operating Expenses
Fuel used in electric generation and purchased power			2,823						2,586						1,806
Operation, maintenance and other			1,239						967						1,048
Depreciation and amortization			885						955						831
Property and other taxes			480						421						383
Impairment of assets and other charges			(1)						4						19
Total operating expenses			5,426						4,933						4,087
Gains on Sales of Other Assets and Other, net			2						2						1
Operating Income			1,612						1,422						1,173
Other Income and Expenses, net			78						74						71
Interest Expense			413						362						319
Income Before Income Taxes			1,277						1,134						925
Income Tax Expense			261						225						187
Net Income			$	1,016					$	909					$	738
Other Comprehensive Gain (Loss), net of tax
Unrealized gains (losses) on available-for-sale securities			3						(5)						(1)
Other Comprehensive Gain (Loss), net of tax			3						(5)						(1)
Comprehensive Income			$	1,019					$	904					$	737

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	24					$	45
Receivables (net of allowance for doubtful accounts of $11 at 2023 and $8 at 2022)			83						148
Receivables of VIEs (net of allowance for doubtful accounts of $20 at 2023 and $28 at 2022)			532						496
Receivables from affiliated companies			238						2
Inventory (includes $462 at 2023 related to VIEs)			674						573
Regulatory assets (includes $59 at 2023 and $55 at 2022 related to VIEs)			720						1,143
Other (includes $37 at 2023 and $46 at 2022 related to VIEs)			51						108
Total current assets			2,322						2,515
Property, Plant and Equipment
Cost			28,353						25,940
Accumulated depreciation and amortization			(7,067)						(6,377)
Net property, plant and equipment			21,286						19,563
Other Noncurrent Assets
Regulatory assets (includes $803 at 2023 and $826 at 2022 related to VIEs)			1,883						2,422
Nuclear decommissioning trust funds			382						424
Operating lease right-of-use assets, net			299						258
Other			429						372
Total other noncurrent assets			2,993						3,476
Total Assets			$	26,601					$	25,554
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $188 at 2023 related to VIEs)			$	738					$	880
Accounts payable to affiliated companies			135						177
Notes payable to affiliated companies			152						605
Taxes accrued			185						53
Interest accrued			86						80
Current maturities of long-term debt (includes $384 at 2023 and $306 at 2022 related to VIEs)			589						328
Asset retirement obligations			1						1
Regulatory liabilities			118						244
Other			350						363
Total current liabilities			2,354						2,731
Long-Term Debt (includes $831 at 2023 and $890 at 2022 related to VIEs)			9,812						9,381
Other Noncurrent Liabilities
Deferred income taxes			2,733						2,789
Asset retirement obligations			274						357
Regulatory liabilities			708						633
Operating lease liabilities			251						211
Accrued pension and other post-retirement benefit costs			98						111
Investment tax credits			242						234
Other (includes $6 at 2023 related to VIEs)			86						84
Total other noncurrent liabilities			4,392						4,419
Commitments and Contingencies
Equity
Member's equity			10,048						9,031
Accumulated other comprehensive loss			(5)						(8)
Total equity			10,043						9,023
Total Liabilities and Equity			$	26,601					$	25,554

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,016					$	909					$	738
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			1,260						1,032						1,011
Equity component of AFUDC			(15)						(16)						(16)
Impairment of assets and other charges			(1)						4						19
Deferred income taxes			(89)						285						279
Contributions to qualified pension plans			(9)						(5)						—
Payments for asset retirement obligations			(80)						(98)						(101)
(Increase) decrease in
Receivables			30						(93)						(45)
Receivables from affiliated companies			(236)						14						(13)
Inventory			(101)						(98)						(15)
Other current assets			496						(640)						(451)
Increase (decrease) in
Accounts payable			(241)						202						47
Accounts payable to affiliated companies			(42)						(32)						124
Taxes accrued			132						2						(30)
Other current liabilities			3						62						(7)
Other assets			163						(704)						(69)
Other liabilities			101						18						(69)
Net cash provided by operating activities			2,387						842						1,402
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(2,529)						(2,247)						(1,923)
Purchases of debt and equity securities			(184)						(193)						(302)
Proceeds from sales and maturities of debt and equity securities			261						279						408
Other			(185)						(108)						(136)
Net cash used in investing activities			(2,637)						(2,269)						(1,953)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			1,564						1,298						1,135
Payments for the redemption of long-term debt			(879)						(77)						(575)
Notes payable to affiliated companies			(453)						406						3
Distributions to parent			—						(175)						—
Other			(1)						(1)						—
Net cash provided by financing activities			231						1,451						563
Net (decrease) increase in cash, cash equivalents and restricted cash			(19)						24						12
Cash, cash equivalents and restricted cash at beginning of period			86						62						50
Cash, cash equivalents and restricted cash at end of period			$	67					$	86					$	62
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	394					$	339					$	308
Cash paid for (received from) income taxes			219						(83)						(15)
Significant non-cash transactions:
Accrued capital expenditures			493						394						337

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Accumulated
																					Other
																					Comprehensive
																					Income (Loss)
																					Net Unrealized
																					Gains (Losses) on
															Member's						Available-for-												Total
(in millions)															Equity						Sale Securities												Equity
Balance at December 31, 2020															$	7,560					$	(2)											$	7,558
Net income															738						—												738
Other comprehensive loss															—						(1)												(1)
Balance at December 31, 2021															$	8,298					$	(3)											$	8,295
Net income															909						—												909
Other comprehensive loss															—						(5)												(5)
Distribution to parent															(175)						—												(175)
Other															(1)						—												(1)
Balance at December 31, 2022															$	9,031					$	(8)											$	9,023
Net income															1,016						—												1,016
Other comprehensive income															—						3												3
Other															1						—												1
Balance at December 31, 2023															$	10,048					$	(5)											$	10,043

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Ohio, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Ohio, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Public Utilities Commission of Ohio and by the Kentucky Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric and gas rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

REPORTS

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 2002.

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues
Regulated electric			$	1,868					$	1,798					$	1,493
Regulated natural gas			639						716						544
Total operating revenues			2,507						2,514						2,037
Operating Expenses
Fuel used in electric generation and purchased power			608						657						409
Cost of natural gas			163						261						136
Operation, maintenance and other			478						523						479
Depreciation and amortization			367						324						307
Property and other taxes			364						369						355
Impairment of assets and other charges			3						(10)						25
Total operating expenses			1,983						2,124						1,711
Gains on Sales of Other Assets and Other, net			1						1						1
Operating Income			525						391						327
Other Income and Expenses, net			41						19						18
Interest Expense			169						129						111
Income Before Income Taxes			397						281						234
Income Tax (Benefit) Expense			63						(21)						30
Net Income and Comprehensive Income			$	334					$	302					$	204

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	24					$	16
Receivables (net of allowance for doubtful accounts of $9 at 2023 and $6 at 2022)			112						73
Receivables from affiliated companies			239						247
Inventory			179						144
Regulatory assets			73						103
Other			134						86
Total current assets			761						669
Property, Plant and Equipment
Cost			13,210						12,497
Accumulated depreciation and amortization			(3,451)						(3,250)
Net property, plant and equipment			9,759						9,247
Other Noncurrent Assets
Goodwill			920						920
Regulatory assets			676						581
Operating lease right-of-use assets, net			16						18
Other			84						71
Total other noncurrent assets			1,696						1,590
Total Assets			$	12,216					$	11,506
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	338					$	380
Accounts payable to affiliated companies			71						72
Notes payable to affiliated companies			613						497
Taxes accrued			316						317
Interest accrued			35						29
Current maturities of long-term debt			—						475
Asset retirement obligations			6						17
Regulatory liabilities			56						99
Other			65						74
Total current liabilities			1,500						1,960
Long-Term Debt			3,493						2,745
Long-Term Debt Payable to Affiliated Companies			25						25
Other Noncurrent Liabilities
Deferred income taxes			1,272						1,136
Asset retirement obligations			130						137
Regulatory liabilities			497						534
Operating lease liabilities			16						17
Accrued pension and other post-retirement benefit costs			97						90
Other			86						96
Total other noncurrent liabilities			2,098						2,010
Commitments and Contingencies
Equity
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2023 and 2022			762						762
Additional paid-in capital			3,100						3,100
Retained earnings			1,238						904
Total equity			5,100						4,766
Total Liabilities and Equity			$	12,216					$	11,506

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	334					$	302					$	204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			371						328						311
Equity component of AFUDC			(9)						(7)						(7)
Impairment of assets and other charges			3						(10)						25
Deferred income taxes			113						(22)						42
Contributions to qualified pension plans			(5)						(3)						—
Payments for asset retirement obligations			(13)						(12)						(2)
Provision for rate refunds			—						5						16
(Increase) decrease in
Receivables			(38)						23						6
Receivables from affiliated companies			(40)						(5)						(25)
Inventory			(35)						(28)						(6)
Other current assets			(23)						(55)						(60)
Increase (decrease) in
Accounts payable			(34)						44						38
Accounts payable to affiliated companies			(1)						8						(4)
Taxes accrued			(1)						42						26
Other current liabilities			(54)						(63)						11
Other assets			(24)						(29)						(43)
Other liabilities			(38)						64						27
Net cash provided by operating activities			506						582						559
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(939)						(850)						(848)
Net proceeds from the sales of other assets			75						—						—
Notes receivable from affiliated companies			48						(105)						(10)
Other			(67)						(67)						(60)
Net cash used in investing activities			(883)						(1,022)						(918)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			774						50						150
Payments for the redemption of long-term debt			(500)						—						(50)
Notes payable to affiliated companies			116						395						(67)
Capital contribution from parent			—						—						325
Other			(5)						(2)						—
Net cash provided by financing activities			385						443						358
Net increase (decrease) in cash and cash equivalents			8						3						(1)
Cash and cash equivalents at beginning of period			16						13						14
Cash and cash equivalents at end of period			$	24					$	16					$	13
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	158					$	126					$	107
Cash paid for (received from) income taxes			58						(35)						9
Significant non-cash transactions:
Accrued capital expenditures			115						123						135

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

									Additional
			Common						Paid-in						Retained												Total
(in millions)			Stock						Capital						Earnings												Equity
Balance at December 31, 2020			$	762					$	2,776					$	397											$	3,935
Net income			—						—						204												204
Contribution from parent			—						325						—												325
Other			—						(1)						1												—
Balance at December 31, 2021			$	762					$	3,100					$	602											$	4,464
Net income			—						—						302												302
Balance at December 31, 2022			$	762					$	3,100					$	904											$	4,766
Net income			—						—						334												334
Balance at December 31, 2023			$	762					$	3,100					$	1,238											$	5,100

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Indiana, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Indiana, LLC and subsidiary (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1, 4 and 10 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Indiana Utility Regulatory Commission (the “Commission”), which has jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory proceedings in recent years in Indiana have focused on the recoverability of fuel costs and asset retirement obligations specific to coal ash. As a result, assessing the potential outcomes of future regulatory orders requires management judgment.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commission to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commission, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commission’s treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

• For regulatory matters in process, we inspected the Company’s and intervenors’ filings with the Commission, that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

REPORTS

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

• We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

• We performed substantive analytical procedures on the recoverability of deferred fuel costs.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 2002.

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues			$	3,399					$	3,922					$	3,174
Operating Expenses
Fuel used in electric generation and purchased power			1,217						1,819						985
Operation, maintenance and other			713						729						750
Depreciation and amortization			666						645						615
Property and other taxes			59						75						73
Impairment of assets and other charges			—						388						9
Total operating expenses			2,655						3,656						2,432
Operating Income			744						266						742
Other Income and Expenses, net			76						36						42
Interest Expense			213						189						196
Income Before Income Taxes			607						113						588
Income Tax (Benefit) Expense			110						(24)						107
Net Income and Comprehensive Income			$	497					$	137					$	481

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Cash and cash equivalents			$	8					$	31
Receivables (net of allowance for doubtful accounts of $5 at 2023 and $4 at 2022)			156						112
Receivables from affiliated companies			197						298
Inventory			582						489
Regulatory assets			102						249
Other			98						197
Total current assets			1,143						1,376
Property, Plant and Equipment
Cost			18,900						18,121
Accumulated depreciation and amortization			(6,501)						(6,021)
Net property, plant and equipment			12,399						12,100
Other Noncurrent Assets
Regulatory assets			894						875
Operating lease right-of-use assets, net			50						49
Other			325						254
Total other noncurrent assets			1,269						1,178
Total Assets			$	14,811					$	14,654
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	300					$	391
Accounts payable to affiliated companies			176						206
Notes payable to affiliated companies			256						435
Taxes accrued			66						92
Interest accrued			54						48
Current maturities of long-term debt			4						303
Asset retirement obligations			120						207
Regulatory liabilities			209						187
Other			184						161
Total current liabilities			1,369						2,030
Long-Term Debt			4,348						3,854
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			1,436						1,299
Asset retirement obligations			689						744
Regulatory liabilities			1,459						1,454
Operating lease liabilities			46						47
Accrued pension and other post-retirement benefit costs			115						122
Investment tax credits			186						186
Other			—						65
Total other noncurrent liabilities			3,931						3,917
Commitments and Contingencies
Equity
Member's equity			5,012						4,702
Accumulated other comprehensive income			1						1
Total equity			5,013						4,703
Total Liabilities and Equity			$	14,811					$	14,654

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	497					$	137					$	481
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			669						648						619
Equity component of AFUDC			(10)						(13)						(27)
Impairment of assets and other charges			—						388						9
Deferred income taxes			91						(64)						34
Contributions to qualified pension plans			(8)						(5)						—
Payments for asset retirement obligations			(81)						(82)						(67)
(Increase) decrease in
Receivables			(40)						(3)						(33)
Receivables from affiliated companies			(8)						20						—
Inventory			(93)						(70)						55
Other current assets			138						(3)						(181)
Increase (decrease) in
Accounts payable			(83)						105						76
Accounts payable to affiliated companies			42						(3)						8
Taxes accrued			(26)						34						12
Other current liabilities			128						9						13
Other assets			(69)						(10)						20
Other liabilities			7						13						(15)
Net cash provided by operating activities			1,154						1,101						1,004
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(961)						(877)						(818)
Purchases of debt and equity securities			(68)						(61)						(142)
Proceeds from sales and maturities of debt and equity securities			55						48						65
Notes receivable from affiliated companies			109						(86)						(120)
Other			(66)						(55)						36
Net cash used in investing activities			(931)						(1,031)						(979)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			495						67						300
Payments for the redemption of long-term debt			(303)						(84)						(70)
Notes payable to affiliated companies			(178)						435						(131)
Distributions to parent			(259)						(462)						(125)
Other			(1)						(1)						—
Net cash used in financing activities			(246)						(45)						(26)
Net (decrease) increase in cash and cash equivalents			(23)						25						(1)
Cash and cash equivalents at beginning of period			31						6						7
Cash and cash equivalents at end of period			$	8					$	31					$	6
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	202					$	186					$	194
Cash paid for income taxes			90						35						56
Significant non-cash transactions:
Accrued capital expenditures			114						122						118

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																											Accumulated
																											Other
																											Comprehensive
																											Income
																											Pension
																					Member's						and OPEB						Total
(in millions)																					Equity						Adjustments						Equity
Balance at December 31, 2020																					$	4,783					$	—					$	4,783
Net income																					481						—						481
Distributions to parent																					(250)						—						(250)
Other																					1						—						1
Balance at December 31, 2021																					$	5,015					$	—					$	5,015
Net income																					137						—						137
Distributions to parent																					(450)						—						(450)
Other																					—						1						1
Balance at December 31, 2022																					$	4,702					$	1					$	4,703
Net income																					497						—						497
Distributions to parent																					(187)						—						(187)
Balance at December 31, 2023																					$	5,012					$	1					$	5,013

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Piedmont Natural Gas Company, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Piedmont Natural Gas Company, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Tennessee Public Utility Commission (collectively the “Commissions”), which have jurisdiction with respect to the gas rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions, and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances. We evaluated the external information and compared it to management’s recorded balances for completeness.

• We evaluated management’s judgments regarding the recoverability of regulatory asset balances by performing the following:

–We inquired of management regarding changes in regulatory orders and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and recently approved regulatory orders, as applicable.

REPORTS

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

–We compared the recorded regulatory asset balance to an independently developed expectation of the corresponding balance.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 23, 2024

We have served as the Company's auditor since 1951.

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating Revenues
Regulated natural gas			$	1,603					$	2,100					$	1,555
Nonregulated natural gas and other			25						24						14
Total operating revenues			1,628						2,124						1,569
Operating Expenses
Cost of natural gas			430						1,015						569
Operation, maintenance and other			344						368						327
Depreciation and amortization			237						222						213
Property and other taxes			59						57						55
Impairment of assets and other charges			(4)						18						10
Total operating expenses			1,066						1,680						1,174
Gains on Sales of Other Assets and Other, net			—						4						—
Operating Income			562						448						395
Equity in earnings of unconsolidated affiliates			9						8						9
Other income and expense, net			57						46						55
Total other income and expenses			66						54						64
Interest Expense			165						140						119
Income Before Income Taxes			463						362						340
Income Tax Expense			84						39						30
Net Income and Comprehensive Income			$	379					$	323					$	310

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2023						2022
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $11 at 2023 and $14 at 2022)			$	311					$	436
Receivables from affiliated companies			10						11
Inventory			112						172
Regulatory assets			161						119
Other			7						4
Total current assets			601						742
Property, Plant and Equipment
Cost			11,906						10,869
Accumulated depreciation and amortization			(2,259)						(2,081)
Facilities to be retired, net			2						9
Net property, plant and equipment			9,649						8,797
Other Noncurrent Assets
Goodwill			49						49
Regulatory assets			410						392
Operating lease right-of-use assets, net			4						4
Investments in equity method unconsolidated affiliates			78						79
Other			276						272
Total other noncurrent assets			817						796
Total Assets			$	11,067					$	10,335
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	315					$	345
Accounts payable to affiliated companies			54						51
Notes payable to affiliated companies			538						514
Taxes accrued			89						74
Interest accrued			39						40
Current maturities of long-term debt			40						45
Regulatory liabilities			98						74
Other			77						81
Total current liabilities			1,250						1,224
Long-Term Debt			3,628						3,318
Other Noncurrent Liabilities
Deferred income taxes			933						870
Asset retirement obligations			26						26
Regulatory liabilities			988						1,024
Operating lease liabilities			10						13
Accrued pension and other post-retirement benefit costs			8						7
Other			172						180
Total other noncurrent liabilities			2,137						2,120
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2023 and 2022			1,635						1,635
Retained earnings			2,416						2,037
Total Piedmont Natural Gas Company, Inc. stockholder's equity			4,051						3,672
Noncontrolling interests			1						1
Total equity			4,052						3,673
Total Liabilities and Equity			$	11,067					$	10,335

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	379					$	323					$	310
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			239						225						216
Equity component of AFUDC			(21)						(11)						(20)
Impairment of assets and other charges			(4)						18						10
Deferred income taxes			38						5						4
Contributions to qualified pension plans			(3)						(2)						—
Equity in earnings from unconsolidated affiliates			(9)						(8)						(9)
Provision for rate refunds			—						(3)						(4)
(Increase) decrease in
Receivables			127						(111)						(77)
Receivables from affiliated companies			1						—						(1)
Inventory			58						(63)						(40)
Other current assets			(46)						32						33
Increase (decrease) in
Accounts payable			(45)						40						(25)
Accounts payable to affiliated companies			3						11						(39)
Taxes accrued			15						11						37
Other current liabilities			27						36						(26)
Other assets			(7)						5						26
Other liabilities			10						(1)						(4)
Net cash provided by operating activities			762						507						391
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(1,036)						(862)						(850)
Contributions to equity method investments			—						(8)						(9)
Other			(54)						(26)						(31)
Net cash used in investing activities			(1,090)						(896)						(890)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			348						394						347
Payments for the redemption of long-term debt			(45)						—						(160)
Notes payable to affiliated companies			25						(4)						(13)
Capital contribution from parent			—						—						325
Other			—						(1)						—
Net cash provided by financing activities			328						389						499
Net increase (decrease) in cash and cash equivalents			—						—						—
Cash and cash equivalents at beginning of period			—						—						—
Cash and cash equivalents at end of period			$	—					$	—					$	—
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	162					$	135					$	114
Cash paid for (received from) income taxes			28						23						(13)
Significant non-cash transactions:
Accrued capital expenditures			223						207						97

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Total
																					Piedmont
																					Natural Gas
			Common						Retained												Company, Inc.						Noncontrolling						Total
(in millions)			Stock						Earnings												Equity						Interests						Equity
Balance at December 31, 2020			$	1,310					$	1,405											$	2,715					$	—					$	2,715
Net income			—						310												310						—						310
Contribution from parent			325						—												325						—						325
Other			—						(1)												(1)						—						(1)
Balance at December 31, 2021			$	1,635					$	1,714											$	3,349					$	—					$	3,349
Net income			—						323												323						—						323
Other			—						—												—						1						1
Balance at December 31, 2022			$	1,635					$	2,037											$	3,672					$	1					$	3,673
Net income			—						379												379						—						379
Balance at December 31, 2023			$	1,635					$	2,416											$	4,051					$	1					$	4,052

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Index to Combined Notes To Consolidated Financial Statements

The notes to the consolidated financial statements are a combined presentation. The following table indicates the registrants to which the notes apply.

			Applicable Notes
Registrant			1			2			3			4			5			6			7			8			9			10			11			12			13			14			15			16			17			18			19			20			21			22			23			24			25			26			27
Duke Energy			•			•			•			•			•			•			•			•			•			•			•			•			•						•			•			•			•			•			•			•			•			•			•			•			•			•
Duke Energy Carolinas			•						•			•			•			•			•						•			•			•			•						•			•			•			•			•			•						•			•			•			•			•			•
Progress Energy			•						•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•			•
Duke Energy Progress			•						•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•			•
Duke Energy Florida			•						•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•			•
Duke Energy Ohio			•						•			•			•			•			•									•			•			•						•			•						•			•			•						•			•			•			•			•			•
Duke Energy Indiana			•			•			•			•			•			•			•						•			•			•			•						•			•			•			•			•			•						•			•			•			•			•			•
Piedmont			•						•			•			•			•			•									•			•			•			•			•			•						•						•						•			•			•			•			•			•

Tables within the notes may not sum across due to (i) Progress Energy's consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Basis of Consolidation

Duke Energy is an energy company headquartered in Charlotte, North Carolina, subject to regulation by the FERC and other regulatory agencies listed below. Duke Energy operates in the U.S. primarily through its direct and indirect subsidiaries. Certain Duke Energy subsidiaries are also subsidiary registrants, including Duke Energy Carolinas; Progress Energy; Duke Energy Progress; Duke Energy Florida; Duke Energy Ohio; Duke Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated financial information, it necessarily includes the results of its separate 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 Combined Notes to Consolidated Financial Statements. However, none of the Subsidiary Registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

These Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 18 for additional information on VIEs. These Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities. See Note 9 for additional information on joint ownership. Substantially all of the Subsidiary Registrants' operations qualify for regulatory accounting.

Duke Energy Carolinas is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Carolinas is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC.

Progress Energy is a public utility holding company, which conducts operations through its wholly owned subsidiaries, Duke Energy Progress and Duke Energy Florida. Progress Energy is subject to regulation by FERC and other regulatory agencies listed below.

Duke Energy Progress is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Progress is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC.

Duke Energy Florida is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Florida. Duke Energy Florida is subject to the regulatory provisions of the FPSC, NRC and FERC.

Duke Energy Ohio is a regulated public utility primarily engaged in the transmission and distribution of electricity in portions of Ohio and Kentucky, the generation and sale of electricity in portions of Kentucky and the transportation and sale of natural gas in portions of Ohio and Kentucky. Duke Energy Ohio conducts competitive auctions for retail electricity supply in Ohio whereby the energy price is recovered from retail customers and recorded in Operating Revenues on the Consolidated Statements of Operations and Comprehensive Income. Operations in Kentucky are conducted through its wholly owned subsidiary, Duke Energy Kentucky. References herein to Duke Energy Ohio collectively include Duke Energy Ohio and its subsidiaries, unless otherwise noted. Duke Energy Ohio is subject to the regulatory provisions of the PUCO, KPSC and FERC.

Duke Energy Indiana is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Indiana. Duke Energy Indiana is subject to the regulatory provisions of the IURC and FERC.

Piedmont is a regulated public utility primarily engaged in the distribution of natural gas in portions of North Carolina, South Carolina and Tennessee. Piedmont is subject to the regulatory provisions of the NCUC, PSCSC, TPUC and FERC.

Certain prior year amounts have been reclassified to conform to the current year presentation.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Other Current Assets and Liabilities

The following table provides a description of amounts included in Other within Current Assets or Current Liabilities that exceed 5% of total Current Assets or Current Liabilities on the Duke Energy Registrants' Consolidated Balance Sheets at either December 31, 2023, or 2022.

									December 31,
(in millions)			Location						2023						2022
Duke Energy Carolinas
Accrued compensation			Current Liabilities						$	224					$	247
Duke Energy Florida
Customer deposits/Collateral liabilities			Current Liabilities						$	168					$	200
Duke Energy Ohio
Gas Storage			Current Assets						$	23					$	57
Tax receivables			Current Assets						95						4
Duke Energy Indiana
Mark-to-market transactions			Current Assets						$	18					$	110
Customer advances			Current Liabilities						$	87					$	51

Discontinued Operations

Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented. For the years ended December 31, 2023, 2022 and 2021, the Loss From Discontinued Operations, net of tax on Duke Energy's Consolidated Statements of Operations includes amounts related to noncontrolling interests. A portion of Noncontrolling interests on Duke Energy's Consolidated Balance Sheets relates to discontinued operations for the periods presented. See Note 2 for discussion of discontinued operations related to the Commercial Renewables Disposal Groups.

Noncontrolling Interest

Duke Energy maintains a controlling financial interest in certain less than wholly owned subsidiaries. As a result, Duke Energy consolidates these subsidiaries and presents the third-party investors' portion of Duke Energy's net income (loss), net assets and comprehensive income (loss) as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Consolidated Balance Sheets. Operating agreements of Duke Energy's subsidiaries with noncontrolling interest allocate profit and loss based on their pro rata shares of the ownership interest in the respective subsidiary. Therefore, Duke Energy allocates net income or loss and other comprehensive income or loss of these subsidiaries to the owners based on their pro rata shares.

Significant Accounting Policies

Use of Estimates

In preparing financial statements that conform to GAAP, the Duke Energy Registrants must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Regulatory Accounting

The majority of the Duke Energy Registrants’ operations are subject to price regulation for the sale of electricity and natural gas by state utility commissions or FERC. When prices are set on the basis of specific costs of the regulated operations and an effective franchise is in place such that sufficient natural gas or electric services can be sold to recover those costs, the Duke Energy Registrants apply regulatory accounting. Regulatory accounting changes the timing of the recognition of costs or revenues relative to a company that does not apply regulatory accounting. As a result, regulatory assets and regulatory liabilities are recognized on the Consolidated Balance Sheets. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Regulatory assets are reviewed for recoverability each reporting period. If a regulatory asset is no longer deemed probable of recovery, the deferred cost is charged to earnings. See Note 4 for further information.

Regulatory accounting rules also require recognition of a disallowance (also called "impairment") loss if it becomes probable that part of the cost of a plant under construction (or a recently completed plant or an abandoned plant) will be disallowed for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. For example, if a cost cap is set for a plant still under construction, the amount of the disallowance is a result of a judgment as to the ultimate cost of the plant. These disallowances can require judgments on allowed future rate recovery.

When it becomes probable that regulated generation, transmission or distribution assets will be abandoned, the cost of the asset is removed from plant in service. The value that may be retained as a regulatory asset on the balance sheet for the abandoned property is dependent upon amounts that may be recovered through regulated rates, including any return. As such, an impairment charge could be partially or fully offset by the establishment of a regulatory asset if rate recovery is probable. The impairment charge for a disallowance of costs for regulated plants under construction, recently completed or abandoned is based on discounted cash flows.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Duke Energy Registrants utilize cost-tracking mechanisms, commonly referred to as fuel adjustment clauses or PGA clauses. These clauses allow for the recovery of fuel and fuel-related costs, portions of purchased power, natural gas costs and hedging costs through surcharges on customer rates. The difference between the costs incurred and the surcharge revenues is recorded either as an adjustment to Operating Revenues, Operating Expenses – Fuel used in electric generation or Operating Expenses – Cost of natural gas on the Consolidated Statements of Operations, with an off-setting impact on regulatory assets or liabilities.

Cash, Cash Equivalents and Restricted Cash

All highly liquid investments with maturities of three months or less at the date of acquisition are considered cash equivalents. Duke Energy, Progress Energy and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. Duke Energy Carolinas and Duke Energy Progress have restricted cash balances related to VIEs from storm recovery bonds issued. See Note 18 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included in the Consolidated Balance Sheets.

			December 31, 2023
									Duke												Duke						Duke
			Duke						Energy						Progress						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida
Current Assets
Cash and cash equivalents			$	253					$	9					$	59					$	18					$	24
Other			76						9						67						31						36
Other Noncurrent Assets
Other			16						1						9						2						7
Total cash, cash equivalents and restricted cash			$	345					$	19					$	135					$	51					$	67

			December 31, 2022
									Duke												Duke						Duke
			Duke						Energy						Progress						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida
Current Assets
Cash and cash equivalents			$	409					$	44					$	108					$	49					$	45
Other			82						8						74						28						41
Other Noncurrent Assets
Other			11						1						2						2						—
Total cash, cash equivalents and restricted cash			$	502					$	53					$	184					$	79					$	86

Inventory

Inventory related to regulated operations is valued at historical cost. Inventory is charged to expense or capitalized to property, plant and equipment when issued, primarily using the average cost method. Excess or obsolete inventory is written down to the lower of cost or net realizable value. Once inventory has been written down, it creates a new cost basis for the inventory that is not subsequently written up. Provisions for inventory write-offs were not material at December 31, 2023, and 2022, respectively. The components of inventory are presented in the tables below.

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Materials and supplies			$	3,086					$	1,075					$	1,465					$	963					$	502					$	139					$	361					$	12
Coal			842						364						231						154						77						28						219						—
Natural gas, oil and other			364						45						205						110						95						12						2						100
Total inventory			$	4,292					$	1,484					$	1,901					$	1,227					$	674					$	179					$	582					$	112

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Materials and supplies			$	2,604					$	876					$	1,232					$	819					$	413					$	105					$	342					$	12
Coal			620						253						190						99						91						34						144						—
Natural gas, oil and other			360						35						157						88						69						5						3						160
Total inventory			$	3,584					$	1,164					$	1,579					$	1,006					$	573					$	144					$	489					$	172

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investments in Debt and Equity Securities

The Duke Energy Registrants classify investments in equity securities as FV-NI and investments in debt securities as AFS. Both categories are recorded at fair value on the Consolidated Balance Sheets. Realized and unrealized gains and losses on securities classified as FV-NI are reported through net income. Unrealized gains and losses for debt securities classified as AFS are included in AOCI until realized, unless it is determined the carrying value of an investment has a credit loss. For certain investments of regulated operations, such as substantially all of the NDTF, realized and unrealized gains and losses (including any credit losses) on debt securities are recorded as a regulatory asset or liability. The credit loss portion of debt securities of nonregulated operations are included in earnings. Investments in debt and equity securities are classified as either current or noncurrent based on management’s intent and ability to sell these securities, taking into consideration current market liquidity. See Note 16 for further information.

Goodwill

Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont perform annual goodwill impairment tests as of August 31 each year at the reporting unit level, which is determined to be a business segment or one level below. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update these tests between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 12 for further information.

Intangible Assets

Intangible assets are included in Other in Other Noncurrent Assets on the Consolidated Balance Sheets. Generally, intangible assets are amortized using an amortization method that reflects the pattern in which the economic benefits of the intangible asset are consumed or on a straight-line basis if that pattern is not readily determinable. Amortization of intangibles is reflected in Depreciation and amortization on the Consolidated Statements of Operations. Intangible assets are subject to impairment testing and if impaired, the carrying value is accordingly reduced.

RECs are used to measure compliance with renewable energy standards and are held primarily for consumption. See Note 12 for further information.

Long-Lived Asset Impairments

The Duke Energy Registrants evaluate long-lived assets that are held and used, excluding goodwill, for impairment when circumstances indicate the carrying value of those assets may not be recoverable. An impairment exists when a long-lived asset’s carrying value exceeds the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. The estimated cash flows may be based on alternative expected outcomes that are probability weighted. If the carrying value of the long-lived asset is not recoverable based on these estimated future undiscounted cash flows, the carrying value of the asset is written down to its then current estimated fair value and an impairment charge is recognized.

The Duke Energy Registrants assess fair value of long-lived assets that are held and used using various methods, including recent comparable third-party sales, internally developed discounted cash flow analysis and analysis from outside advisors. Triggering events to reassess cash flows may include, but are not limited to, significant changes in commodity prices, the condition of an asset or management’s interest in selling the asset.

Property, Plant and Equipment

Property, plant and equipment are stated at the lower of depreciated historical cost net of any disallowances or fair value, if impaired. The Duke Energy Registrants capitalize all construction-related direct labor and material costs, as well as indirect construction costs such as general engineering, taxes and financing costs. See “Allowance for Funds Used During Construction and Interest Capitalized” section below for information on capitalized financing costs. Costs of renewals and betterments that extend the useful life of property, plant and equipment are also capitalized. The cost of repairs, replacements and major maintenance projects, which do not extend the useful life or increase the expected output of the asset, are expensed as incurred. Depreciation is generally computed over the estimated useful life of the asset using the composite straight-line method. Depreciation studies are conducted periodically to update composite rates and are approved by state utility commissions and/or the FERC when required. The composite weighted average depreciation rates, excluding nuclear fuel, are included in the table that follows.

			Years Ended December 31,
			2023						2022						2021
Duke Energy			2.9		%				3.0		%				2.9		%
Duke Energy Carolinas			2.7		%				2.7		%				2.7		%
Progress Energy			3.3		%				3.2		%				3.1		%
Duke Energy Progress			3.1		%				3.0		%				3.0		%
Duke Energy Florida			3.5		%				3.5		%				3.3		%
Duke Energy Ohio			2.8		%				2.9		%				2.9		%
Duke Energy Indiana			3.6		%				3.6		%				3.6		%
Piedmont			2.1		%				2.1		%				2.1		%

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In general, when the Duke Energy Registrants retire regulated property, plant and equipment, the original cost plus the cost of retirement, less salvage value and any depreciation already recognized, is charged to accumulated depreciation. However, when it becomes probable the asset will be retired substantially in advance of its original expected useful life or is abandoned, the cost of the asset and the corresponding accumulated depreciation is recognized as a separate asset. If the asset is still in operation, the net amount is classified as Facilities to be retired, net on the Consolidated Balance Sheets. If the asset is no longer operating, the net amount is classified in Regulatory assets on the Consolidated Balance Sheets if deemed recoverable (see discussion of long-lived asset impairments above). The carrying value of the asset is based on historical cost if the Duke Energy Registrants are allowed to recover the remaining net book value and a return equal to at least the incremental borrowing rate. If not, an impairment is recognized to the extent the net book value of the asset exceeds the present value of future revenues discounted at the incremental borrowing rate.

When the Duke Energy Registrants sell entire regulated operating units, the original cost and accumulated depreciation and amortization balances are removed from Property, Plant and Equipment on the Consolidated Balance Sheets. Any gain or loss is recorded in earnings, unless otherwise required by the applicable regulatory body. See Note 11 for additional information.

Other Noncurrent Assets

Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of $150 million related to the contract in Other within Other noncurrent assets on the Consolidated Balance Sheets as of December 31, 2023 and 2022. The asset is recorded at historical cost and is subject to impairment testing should circumstances indicate the carrying value may not be recoverable. In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the EU&I segment. See Notes 2 and 3 for further information.

Leases

Duke Energy determines if an arrangement is a lease at contract inception based on whether the arrangement involves the use of a physically distinct identified asset and whether Duke Energy has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period as well as the right to direct the use of the asset. As a policy election, Duke Energy does not evaluate arrangements with initial contract terms of less than one year as leases.

Operating leases are included in Operating lease ROU assets, net, Other current liabilities and Operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Current maturities of long-term debt and Long-Term Debt on the Consolidated Balance Sheets.

For lessee and lessor arrangements, Duke Energy has elected a policy to not separate lease and non-lease components for all asset classes. For lessor arrangements, lease and non-lease components are only combined under one arrangement and accounted for under the lease accounting framework if the non-lease components are not the predominant component of the arrangement and the lease component would be classified as an operating lease.

Nuclear Fuel

Nuclear fuel is classified as Property, Plant and Equipment on the Consolidated Balance Sheets.

Nuclear fuel in the front-end fuel processing phase is considered work in progress and not amortized until placed in service. Amortization of nuclear fuel is included within Fuel used in electric generation and purchased power on the Consolidated Statements of Operations. Amortization is recorded using the units-of-production method.

Allowance for Funds Used During Construction and Interest Capitalized

For regulated operations, the debt and equity costs of financing the construction of property, plant and equipment are reflected as AFUDC and capitalized as a component of the cost of property, plant and equipment. AFUDC equity is reported on the Consolidated Statements of Operations as non-cash income in Other income and expenses, net. AFUDC debt is reported as a non-cash offset to Interest Expense. After construction is completed, the Duke Energy Registrants are permitted to recover these costs through their inclusion in rate base and the corresponding subsequent depreciation or amortization of those regulated assets.

AFUDC equity, a permanent difference for income taxes, reduces the ETR when capitalized and increases the ETR when depreciated or amortized. See Note 24 for additional information.

Asset Retirement Obligations

AROs are recognized for legal obligations associated with the retirement of property, plant and equipment. When recording an ARO, the present value of the projected liability is recognized in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted over time. For operating plants, the present value of the liability is added to the cost of the associated asset and depreciated over the remaining life of the asset. For retired plants, the present value of the liability is recorded as a regulatory asset unless determined not to be probable of recovery.

The present value of the initial obligation and subsequent updates are based on discounted cash flows, which include estimates regarding timing of future cash flows, selection of discount rates and cost escalation rates, among other factors. These estimates are subject to change. Depreciation expense is adjusted prospectively for any changes to the carrying amount of the associated asset. The Duke Energy Registrants receive amounts to fund the cost of the ARO for regulated operations through a combination of regulated revenues and earnings on the NDTF. As a result, amounts recovered in regulated revenues, earnings on the NDTF, accretion expense and depreciation of the associated asset are netted and deferred as a regulatory asset or liability.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounts Payable

Duke Energy has a voluntary supply chain finance program (the “program”) that allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to a global financial institution at a rate that leverages Duke Energy’s credit rating and, which may result in favorable terms compared to the rate available to the supplier on their own credit rating. Suppliers participating in the program, determine at their sole discretion which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact Duke Energy’s payment terms, which are based on commercial terms negotiated between Duke Energy and the supplier regardless of program participation. The commercial terms negotiated between Duke Energy and its suppliers are consistent regardless of whether the supplier elects to participate in the program. Duke Energy does not issue any guarantees with respect to the program and does not participate in negotiations between suppliers and the financial institution. Duke Energy does not have an economic interest in the supplier’s decision to participate in the program and receives no interest, fees or other benefit from the financial institution based on supplier participation in the program.

The following table presents the outstanding accounts payable balance sold to the financial institution by our suppliers and the supplier invoices sold to the financial institution under the program included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows as of December 31, 2023, and December 31, 2022.

			For the Years Ended December 31, 2022 and 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Confirmed obligations outstanding at December 31, 2021			$	19		$	—		$	9		$	—		$	9		$	6		$	—		$	4
Invoices confirmed during the period			283			29			76			26			50			32			2			145
Confirmed invoices paid during the period			(215)			(23)			(66)			(18)			(48)			(33)			(2)			(92)
Confirmed obligations outstanding at December 31, 2022			$	87		$	6		$	19		$	8		$	11		$	5		$	—		$	57
Invoices confirmed during the period			228			24			58			22			36			7			—			139
Confirmed invoices paid during the period			(265)			(30)			(74)			(30)			(44)			(12)			—			(149)
Confirmed obligations outstanding at December 31, 2023			$	50		$	—		$	3		$	—		$	3		$	—		$	—		$	47

Revenue Recognition

Duke Energy recognizes revenue as customers obtain control of promised goods and services in an amount that reflects consideration expected in exchange for those goods or services. Generally, the delivery of electricity and natural gas results in the transfer of control to customers at the time the commodity is delivered and the amount of revenue recognized is equal to the amount billed to each customer, including estimated volumes delivered when billings have not yet occurred. See Note 19 for further information.

Alternative Revenue Programs

Duke Energy accounts for certain types of programs established by the regulators in the states in which it operates, including decoupling mechanisms, as alternative revenue programs. Alternative revenue programs are contracts between an entity and its regulator, not a contract between an entity and a customer. Revenue arising from alternative revenue programs is presented as Regulated electric revenues and Regulated natural gas revenues on the Consolidated Statements of Operations. Revenue from alternative revenue programs is recognized in the period they are earned (i.e. during the period of revenue shortfall or excess due to fluctuations in customer usage or when specific targets are met resulting in the achievement of performance incentives or penalties) and a regulatory asset or liability on the Consolidated Balance Sheets is established which is subsequently billed or refunded to customers. Duke Energy recognizes revenue as alternative revenue programs for programs that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. See Note 19 for disaggregated revenue information including revenue from contracts with customers and revenues recognized as alternative revenue programs.

Derivatives and Hedging

Derivative and non-derivative instruments may be used in connection with commodity price and interest rate activities, including swaps, futures, forwards and options. All derivative instruments, except those that qualify for the NPNS exception, are recorded on the Consolidated Balance Sheets at fair value. Qualifying derivative instruments may be designated as either cash flow hedges or fair value hedges. Other derivative instruments (undesignated contracts) either have not been designated or do not qualify as hedges. The effective portion of the change in the fair value of cash flow hedges is recorded in AOCI. The effective portion of the change in the fair value of a fair value hedge is offset in net income by changes in the hedged item. For activity subject to regulatory accounting, gains and losses on derivative contracts are reflected as regulatory assets or liabilities and not as other comprehensive income or current period income. As a result, changes in fair value of these derivatives have no immediate earnings impact.

Formal documentation, including transaction type and risk management strategy, is maintained for all contracts accounted for as a hedge. At inception and at least every three months thereafter, the hedge contract is assessed to see if it is highly effective in offsetting changes in cash flows or fair values of hedged items.

See Note 15 for further information.

Captive Insurance Reserves

Duke Energy has captive insurance subsidiaries that provide coverage, on an indemnity basis, to the Subsidiary Registrants as well as certain third parties, on a limited basis, for financial losses, primarily related to property, workers’ compensation and general liability. Liabilities include provisions for estimated losses incurred but not reported (IBNR), as well as estimated provisions for known claims. IBNR reserve estimates are primarily based upon historical loss experience, industry data and other actuarial assumptions. Reserve estimates are adjusted in future periods as actual losses differ from experience.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Duke Energy, through its captive insurance entities, also has reinsurance coverage with third parties for certain losses above a per occurrence and/or aggregate retention. Receivables for reinsurance coverage are recognized when realization is deemed probable.

Preferred Stock

Preferred stock is reviewed to determine the appropriate balance sheet classification and embedded features, such as call options, are evaluated to determine if they should be bifurcated and accounted for separately. Costs directly related to the issuance of preferred stock are recorded as a reduction of the proceeds received. The liability for the dividend is recognized when declared. The accumulated dividends on the cumulative preferred stock is recognized to net income available to Duke Energy Corporation in the EPS calculation. See Note 20 for further information.

Loss Contingencies and Environmental Liabilities

Contingent losses are recorded when it is probable a loss has occurred and the loss can be reasonably estimated. When a range of the probable loss exists and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. Unless otherwise required by GAAP, legal fees are expensed as incurred.

Environmental liabilities are recorded on an undiscounted basis when environmental remediation or other liabilities become probable and can be reasonably estimated. Environmental expenditures related to past operations that do not generate current or future revenues are expensed. Environmental expenditures related to operations that generate current or future revenues are expensed or capitalized, as appropriate. Certain environmental expenditures receive regulatory accounting treatment and are recorded as regulatory assets.

See Notes 4 and 5 for further information.

Severance and Special Termination Benefits

Duke Energy maintains severance plans for the general employee population under which, in general, the longer a terminated employee worked prior to termination the greater the amount of severance benefits provided. A liability for involuntary severance is recorded once an involuntary severance plan is committed to by management if involuntary severances are probable and can be reasonably estimated. For involuntary severance benefits incremental to its ongoing severance plan benefits, the fair value of the obligation is expensed at the communication date if there are no future service requirements or over the required future service period. Duke Energy also offers special termination benefits under voluntary severance programs. Special termination benefits are recorded immediately upon employee acceptance absent a significant retention period. Otherwise, the cost is recorded over the remaining service period. Employee acceptance of voluntary severance benefits is determined by management based on the facts and circumstances of the benefits being offered. See Note 21 for further information.

Guarantees

If necessary, liabilities are recognized at the time of issuance or material modification of a guarantee for the estimated fair value of the obligation it assumes. Fair value is estimated using a probability weighted approach. The obligation is reduced over the term of the guarantee or related contract in a systematic and rational method as risk is reduced. Duke Energy recognizes a liability for the best estimate of its loss due to the nonperformance of the guaranteed party. This liability is recognized at the inception of a guarantee and is updated periodically. See Note 8 for further information.

Income Taxes

Duke Energy and its subsidiaries file a consolidated federal income tax return and other state and foreign jurisdictional returns. The Subsidiary Registrants are parties to a tax-sharing agreement with Duke Energy. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. Deferred income taxes have been provided for temporary differences between GAAP and tax bases of assets and liabilities because the differences create taxable or tax-deductible amounts for future periods. ITCs associated with regulated operations are deferred and amortized as a reduction of income tax expense over the estimated useful lives of the related properties.

Accumulated deferred income taxes are valued using the enacted tax rate expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be settled or realized. In the event of a change in tax rates, deferred tax assets and liabilities are remeasured as of the enactment date of the new rate. To the extent that the change in the value of the deferred tax represents an obligation to customers, the impact of the remeasurement is deferred to a regulatory liability. Remaining impacts are recorded in income from continuing operations. Duke Energy's results of operations could be impacted if the estimate of the tax effect of reversing temporary differences is not reflective of actual outcomes, is modified to reflect new developments or interpretations of the tax law, revised to incorporate new accounting principles, or changes in the expected timing or manner of a reversal.

Tax-related interest and penalties are recorded in Interest Expense and Other income and expenses, net in the Consolidated Statements of Operations.

See Note 24 for further information.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Excise Taxes

Certain excise taxes levied by state or local governments are required to be paid even if not collected from the customer. These taxes are recognized on a gross basis. Taxes for which Duke Energy operates merely as a collection agent for the state and local government are accounted for on a net basis. Excise taxes accounted for on a gross basis within both Operating Revenues and Property and other taxes in the Consolidated Statements of Operations were as follows.

			Years Ended December 31,
(in millions)			2023						2022						2021
Duke Energy			$	458					$	449					$	420
Duke Energy Carolinas			27						47						44
Progress Energy			322						290						250
Duke Energy Progress			5						25						22
Duke Energy Florida			317						265						228
Duke Energy Ohio			106						104						102
Duke Energy Indiana			1						7						23
Piedmont			2						1						1

Dividend Restrictions and Unappropriated Retained Earnings

Duke Energy does not have any current legal, regulatory or other restrictions on paying common stock dividends to shareholders. However, if Duke Energy were to defer dividend payments on the preferred stock, the declaration of common stock dividends would be prohibited. See Note 20 for more information. Additionally, as further described in Note 4, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Indiana and Piedmont have restrictions on paying dividends or otherwise advancing funds to Duke Energy due to conditions established by regulators in conjunction with merger transaction approvals. At December 31, 2023, and 2022, an insignificant amount of Duke Energy’s consolidated Retained earnings balance represents undistributed earnings of equity method investments.

New Accounting Standards

The following accounting standard was adopted by the Duke Energy Registrants in 2021.

Leases with Variable Lease Payments. In July 2021, the Financial Accounting Standards Board issued new accounting guidance requiring lessors to classify a lease with variable lease payments that do not depend on a reference index or rate as an operating lease if both of the following are met: (1) the lease would have to be classified as a sales-type or direct financing lease under prior guidance, and (2) the lessor would have recognized a day-one loss. Duke Energy elected to adopt the guidance immediately upon issuance of the new standard and will be applying the new standard prospectively to new lease arrangements meeting the criteria. Duke Energy did not have any lease arrangements that this new accounting guidance materially impacted.

2. DISPOSITIONS

The following table summarizes the Loss from Discontinued Operations, net of tax recorded on Duke Energy's Consolidated Statements of Operations:

						Years Ended December 31,
(in millions)						2023			2022			2021
Commercial Renewables Disposal Groups						$	(1,457)		$	(1,349)		$	(151)
Other(a)						2			26			7
Loss from Discontinued Operations, net of tax						$	(1,455)		$	(1,323)		$	(144)

(a) Amounts primarily represent income tax adjustments for previously sold businesses not related to the Commercial Renewables Disposal Groups.

Sale of Commercial Renewables Segment

In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the EU&I segment. In June 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of Brookfield for the sale of the utility-scale solar and wind group. Duke Energy closed on this transaction on October 25, 2023, for proceeds of $1.1 billion, with approximately half of the proceeds received at closing and the remainder due 18 months after closing. The balance of the proceeds to be received is classified in Other, within Other Noncurrent Asset on Duke Energy's Consolidated Balance Sheets. In July 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of ArcLight for the distributed generation group. Duke Energy closed on this transaction on October 4, 2023, and received proceeds of $243 million. These proceeds amounts are gross of cash divested as part of the sales of the utility-scale wind and solar group and the distributed generation group, which totaled approximately $75 million. In March 2023, assets for certain projects were removed from the utility-scale solar and wind group and placed in a separate disposal group. The disposal process for the remaining assets is expected to be completed in the first half of 2024, with net proceeds from the dispositions not anticipated to be material.

FINANCIAL STATEMENTS			DISPOSITIONS

Assets Held For Sale and Discontinued Operations

The Commercial Renewables Disposal Groups were classified as held for sale and as discontinued operations in the fourth quarter of 2022. No interest from corporate level debt was allocated to discontinued operations and no adjustments were made to the historical activity within the Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or the Consolidated Statements of Changes in Equity. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented.

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

						December 31,
(in millions)						2023						2022
Current Assets Held for Sale
Cash and cash equivalents						$	—					$	10
Receivables, net						—						107
Inventory						—						88
Other						14						151
Total current assets held for sale						14						356
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost						247						6,444
Accumulated depreciation and amortization						(57)						(1,651)
Net property, plant and equipment						190						4,793
Operating lease right-of-use assets, net						4						140
Investments in equity method unconsolidated affiliates						—						522
Other						3						179
Total other noncurrent assets held for sale						7						841
Total Assets Held for Sale						$	211					$	5,990
Current Liabilities Associated with Assets Held for Sale
Accounts payable						$	9					$	122
Taxes accrued						3						17
Current maturities of long-term debt						5						276
Unrealized losses on commodity hedges						68						37
Other						37						83
Total current liabilities associated with assets held for sale						122						535
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt						39						1,188
Operating lease liabilities						5						150
Asset retirement obligations						8						190
Unrealized losses on commodity hedges						94						187
Other						11						212
Total other noncurrent liabilities associated with assets held for sale						157						1,927
Total Liabilities Associated with Assets Held for Sale						$	279					$	2,462

FINANCIAL STATEMENTS			DISPOSITIONS

As of December 31, 2023, and 2022, the noncontrolling interest balance is $66.3 million and $1.6 billion, respectively.

The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.

			Years Ended December 31,
(in millions)			2023						2022						2021
Operating revenues			$	330					$	465					$	476
Operation, maintenance and other			302						337						343
Depreciation and amortization(a)			—						201						227
Property and other taxes			45						36						34
Other income and expenses, net			(8)						2						(27)
Interest expense			65						10						72
Loss on disposal			1,725						1,748						—
Loss before income taxes			(1,815)						(1,865)						(227)
Income tax benefit			(358)						(516)						(76)
Loss from discontinued operations			$	(1,457)					$	(1,349)					$	(151)
Add: Net loss attributable to noncontrolling interest included in discontinued operations			64						108						344
Net (loss) income from discontinued operations attributable to Duke Energy Corporation			$	(1,393)					$	(1,241)					$	193

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

The Commercial Renewables Disposal Groups' assets held for sale amounts presented above reflect pretax impairments recorded against property, plant and equipment of approximately $278 million and $1.7 billion as of December 31, 2023, and 2022, respectively. In connection with the sales of the utility-scale solar and wind group and the distributed generation group, impairments were recorded based upon the purchase and sale agreements and the net assets were derecognized following the closing of the sales. For the remainder of the assets, impairments were recorded based upon fair value determined from a discounted cash flow analysis. The impairments were included in Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations and Comprehensive Income for the periods presented. The discounted cash flow model utilized Level 2 and Level 3 inputs. The fair value hierarchy levels are further discussed in Note 17. The impairments for the utility-scale and distributed generation assets were updated based on customary adjustments at closing, and will be updated, if necessary, for any post-closing adjustments. The carrying amounts for the remaining assets will be updated, if necessary, based on final disposition amounts.

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

			Years Ended December 31,
(in millions)			2023						2022						2021
Cash flows provided by (used in):
Operating activities			$	607					$	213					$	62
Investing activities			122						(802)						(542)

Other Sale Related Matters

Duke Energy (Parent) and several Duke Energy renewables project companies, located in the Electric Reliability Council of Texas (ERCOT) market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to all but one of the project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. See Note 5 for more information.

As part of the purchase and sale agreement for the distributed generation group, Duke Energy has agreed to retain certain guarantees, with expiration dates between 2029 through 2034, related to tax equity partners' assets and operations that will be disposed of via sale. Duke Energy has obtained certain guarantees from the buyers in regard to future performance obligations to assist in limiting Duke Energy's exposure under the retained guarantees. The fair value of the guarantees is immaterial as Duke Energy does not believe conditions are likely for performance under these guarantees.

Sale of Minority Interest in Duke Energy Indiana Holdco, LLC

On January 28, 2021, Duke Energy executed an agreement providing for an investment by an affiliate of GIC in Duke Energy Indiana in exchange for a 19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding company for Duke Energy Indiana. The transaction was completed following two closings for an aggregate purchase price of approximately $2.05 billion. The first closing, which occurred on September 8, 2021, resulted in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership interests in exchange for approximately $1.03 billion or 50% of the purchase price. The difference between the cash consideration received, net of transaction costs of approximately $27 million, and the carrying value of the noncontrolling interest is $545 million and was recorded as an increase to equity. The second closing was completed in December 2022 and resulted in Duke Energy Indiana Holdco, LLC issuing an additional 8.85% of its membership interests in exchange for approximately $1.03 billion. The difference between the cash consideration received, net of transaction costs of approximately $6 million, and the carrying value of the noncontrolling interest is $492 million and was recorded as an increase to equity. Duke Energy retained indirect control of these assets, and, therefore, no gain or loss was recognized on the Consolidated Statements of Operations for either transaction.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

3. BUSINESS SEGMENTS

Reportable segments are determined based on information used by the chief operating decision-maker in deciding how to allocate resources and evaluate the performance of the business. Duke Energy evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated on the Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income.

Products and services are sold between affiliate companies and reportable segments of Duke Energy at cost. Segment assets as presented in the tables that follow exclude all intercompany assets.

Duke Energy

Due to Duke Energy's commitment in the fourth quarter of 2022 to sell the Commercial Renewables business segment, Duke Energy's segment structure now includes the following two segments: EU&I and GU&I. Prior period information has been recast to conform to the current segment structure. See Note 2 for further information on the Commercial Renewables Disposal Groups.

The EU&I segment includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. The regulated electric utilities conduct operations through the Subsidiary Registrants that are substantially all regulated and, accordingly, qualify for regulatory accounting treatment. EU&I also includes Duke Energy's electric transmission infrastructure investments and the offshore wind contract for Carolina Long Bay. Refer to Note 2 for further information.

The GU&I segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky, and Duke Energy's natural gas storage, midstream pipeline, and renewable natural gas investments. GU&I's operations are substantially all regulated and, accordingly, qualify for regulatory accounting treatment.

The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs and Duke Energy’s wholly owned captive insurance company, Bison. Other also includes Duke Energy's interest in NMC. See Note 13 for additional information on the investment in NMC.

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

			Year Ended December 31, 2023
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated Revenues			$	26,846					$	2,177											$	29,023					$	37					$	—					$	29,060
Intersegment Revenues			75						89												164						97						(261)						—
Total Revenues			$	26,921					$	2,266											$	29,187					$	134					$	(261)					$	29,060
Interest Expense			$	1,850					$	217											$	2,067					$	1,097					$	(150)					$	3,014
Depreciation and amortization			4,684						349												5,033						248						(28)						5,253
Equity in earnings of unconsolidated affiliates			7						40												47						66						—						113
Income tax expense (benefit)			742						116												858						(420)						—						438
Segment income (loss)(a)(b)			4,223						519												4,742						(616)						—						4,126
Less noncontrolling interest																																							(33)
Add back preferred stock dividend																																							106
Discontinued operations																																							(1,391)
Net income																																							$	2,874
Capital investments expenditures and acquisitions(c)			$	10,135					$	1,492											$	11,627					$	995					$	—					$	12,622
Segment assets(d)			155,449						17,349												172,798						4,095						—						176,893

(a) EU&I includes $35 million recorded with Impairment of assets and other charges and $8 million within Operations, maintenance and other primarily related to the North Carolina rate case order on Duke Energy Carolinas' Consolidated Statements of Operations; it also includes $33 million within Impairment of assets and other charges and $8 million within Operations, maintenance and other primarily related to the North Carolina rate case order on Duke Energy Progress' Consolidated Statements of Operations. See Note 4 for additional information.

(b) Other includes $110 million recorded within Operations, maintenance and other and $14 million within Impairments of assets and other charges primarily related to strategic repositioning as the Company transitions to a fully regulated utility on the Consolidated Statements of Operations. See Note 21 for additional information.

(c) Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.

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

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2022
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated Revenues			$	25,990					$	2,748											$	28,738					$	30					$	—					$	28,768
Intersegment Revenues			34						92												126						92						(218)						—
Total Revenues			$	26,024					$	2,840											$	28,864					$	122					$	(218)					$	28,768
Interest Expense			$	1,565					$	182											$	1,747					$	778					$	(86)					$	2,439
Depreciation and amortization			4,550						327												4,877						236						(27)						5,086
Equity in earnings of unconsolidated affiliates			7						20												27						86						—						113
Income tax expense (benefit)			536						8												544						(244)						—						300
Segment income (loss)(a)(b)			3,929						468												4,397						(737)						(1)						3,659
Less noncontrolling interest																																							95
Add back preferred stock dividend																																							106
Discontinued operations																																							(1,215)
Net income																																							$	2,455
Capital investments expenditures and acquisitions(c)			$	8,985					$	1,295											$	10,280					$	1,139					$	—					$	11,419
Segment assets(d)			152,104						16,411												168,515						9,571						—						178,086

(a) EU&I includes $386 million recorded within Impairment of assets and other charges, $46 million within Regulated electric revenues and $34 million within Noncontrolling Interests related to the Duke Energy Indiana court rulings on coal ash on the Consolidated Statements of Operations. See Note 4 for additional information.

(b) Other includes $72 million recorded within Impairment of assets and other charges, $71 million within Operations, maintenance and other and a $7 million gain within Gains on sales of other assets related to costs attributable to business transformation, including long-term real estate strategy changes and workforce realignment on the Consolidated Statements of Operations; it also includes $25 million recorded within Operations, maintenance and other related to litigation on the Consolidated Statements of Operations.

(c) Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.

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

			Year Ended December 31, 2021
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated Revenues			$	22,570					$	2,022											$	24,592					$	29					$	—					$	24,621
Intersegment Revenues			33						90												123						84						(207)						—
Total Revenues			$	22,603					$	2,112											$	24,715					$	113					$	(207)					$	24,621
Interest Expense			$	1,432					$	142											$	1,574					$	643					$	(10)					$	2,207
Depreciation and amortization			4,251						303												4,554						236						(28)						4,762
Equity in earnings of unconsolidated affiliates			7						8												15						47						—						62
Income tax expense (benefit)			494						55												549						(281)						—						268
Segment income (loss)(a)(b)(c)			3,850						396												4,246						(641)						(3)						3,602
Less noncontrolling interest																																							329
Add back preferred stock dividend																																							106
Discontinued operations																																							200
Net income																																							$	3,579
Capital investments expenditures and acquisitions(d)			$	7,653					$	1,271											$	8,924					$	828					$	—					$	9,752
Segment assets(e)			143,841						15,179												159,020						10,567						—						169,587

(a) EU&I includes $160 million of expense recorded within Impairment of assets and other charges, $77 million of income within Other Income and expenses, $5 million of expense within Operations, maintenance and other, $13 million of income within regulated operating revenues, $3 million of expense within interest expense and $6 million of expense within Depreciation and amortization on the Duke Energy Carolinas' Consolidated Statement of Operations related to the South Carolina Supreme Court decision on coal ash and insurance proceeds; it also includes $42 million of expense recorded within Impairment of assets and other charges, $34 million of income within Other Income and expenses, $7 million of expense within Operations, maintenance, and other, $15 million of income within Regulated electric operating revenues, $5 million of expense within interest expense and $1 million of expense within Depreciation and amortization on the Duke Energy Progress' Consolidated Statement of Operations.

(b) GU&I includes $20 million, recorded within Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations, related to natural gas pipeline investments.

(c) Other includes $133 million recorded within Impairment of assets and other charges, $42 million within Operations, maintenance and other, and $17 million within Depreciation and amortization on the Consolidated Statements of Operations, related to the workplace and workforce realignment. See Note 11 for additional information.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

(d) Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.

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

Geographical Information

Substantially all assets and revenues from continuing operations are within the U.S.

Major Customers

No Subsidiary Registrant has an individual customer representing more than 10% of its revenues for the year ended December 31, 2023.

Products and Services

The following table summarizes revenues of the reportable segments by type.

			Retail						Wholesale						Retail																		Total
(in millions)			Electric						Electric						Natural Gas												Other						Revenues
2023
Electric Utilities and Infrastructure			$	23,484					$	2,193					$	—											$	1,244					$	26,921
Gas Utilities and Infrastructure			—						—						2,199												67						2,266
Total Reportable Segments			$	23,484					$	2,193					$	2,199											$	1,311					$	29,187
2022
Electric Utilities and Infrastructure			$	22,036					$	2,882					$	—											$	1,106					$	26,024
Gas Utilities and Infrastructure			—						—						2,535												305						2,840
Total Reportable Segments			$	22,036					$	2,882					$	2,535											$	1,411					$	28,864
2021
Electric Utilities and Infrastructure			$	19,410					$	2,216					$	—											$	977					$	22,603
Gas Utilities and Infrastructure			—						—						2,025												87						2,112
Total Reportable Segments			$	19,410					$	2,216					$	2,025											$	1,064					$	24,715

Duke Energy Ohio

Duke Energy Ohio has two reportable segments, EU&I and GU&I.

EU&I transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Northern Kentucky. GU&I transports and sells natural gas in portions of Ohio and Northern Kentucky. Both reportable segments conduct operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky. The remainder of Duke Energy Ohio's operations is presented as Other.

All Duke Energy Ohio assets and revenues from continuing operations are within the U.S.

			Year Ended December 31, 2023
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable
(in millions)			Infrastructure						Infrastructure						Segments						Other						Eliminations						Total
Total revenues			$	1,868					$	639					$	2,507					$	—					$	—					$	2,507
Interest expense			$	116					$	53					$	169					$	—					$	—					$	169
Depreciation and amortization			257						110						367						—						—						367
Income tax expense (benefit)			42						23						65						(2)						—						63
Segment income (loss)/Net income			227						116						343						(9)						—						334
Capital expenditures			$	520					$	419					$	939					$	—					$	—					$	939
Segment assets			7,978						4,346						12,324						13						(121)						12,216

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2022
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable
(in millions)			Infrastructure						Infrastructure						Segments						Other						Eliminations						Total
Total revenues			$	1,798					$	716					$	2,514					$	—					$	—					$	2,514
Interest expense			$	86					$	43					$	129					$	—					$	—					$	129
Depreciation and amortization			221						103						324						—						—						324
Income tax expense (benefit)			24						(43)						(19)						(2)						—						(21)
Segment income (loss)/Net Income			189						121						310						(8)						—						302
Capital expenditures			$	488					$	362					$	850					$	—					$	—					$	850
Segment assets			7,504						4,164						11,668						14						(176)						11,506

			Year Ended December 31, 2021
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable
(in millions)			Infrastructure						Infrastructure						Segments						Other						Eliminations						Total
Total revenues			$	1,493					$	544					$	2,037					$	—					$	—					$	2,037
Interest expense			$	87					$	24					$	111					$	—					$	—					$	111
Depreciation and amortization			217						90						307						—						—						307
Income tax expense (benefit)			15						19						34						(4)						—						30
Segment income (loss)/Net Income			141						78						219						(15)						—						204
Capital expenditures			$	486					$	362					$	848					$	—					$	—					$	848
Segment assets			6,882						3,892						10,774						29						(29)						10,774

4. REGULATORY MATTERS

REGULATORY ASSETS AND LIABILITIES

The Duke Energy Registrants record regulatory assets and liabilities that result from the ratemaking process. See Note 1 for further information.

FINANCIAL STATEMENTS			REGULATORY MATTERS

The following tables present the regulatory assets and liabilities recorded on the Consolidated Balance Sheets of Duke Energy and Progress Energy. See separate tables below for balances by individual registrant.

			Duke Energy												Progress Energy
			December 31,												December 31,
(in millions)			2023						2022						2023						2022
Regulatory Assets
AROs – coal ash			$	3,214					$	3,205					$	1,230					$	1,429
AROs – nuclear and other			1,179						945						1,127						884
Deferred fuel and purchased power			2,486						3,866						1,173						2,060
Accrued pension and OPEB			2,389						2,336						757						759
Storm cost securitized balance, net			890						940						682						720
Nuclear asset securitized balance, net			830						881						830						881
Debt fair value adjustment			774						829						—						—
Hedge costs deferrals			749						378						323						128
Storm cost deferrals			407						687						298						559
COR regulatory asset			371						221						337						221
Post-in-service carrying costs (PISCC) and deferred operating expenses			357						359						42						42
Retired generation facilities			275						316						220						243
Deferred asset – Lee and Harris COLA			252						288						15						21
Customer connect project			251						271						125						136
Advanced metering infrastructure (AMI)			243						283						92						111
Incremental COVID-19 expenses			237						210						80						78
Vacation accrual			228						222						43						43
Grid Deferral			210						136						51						40
Demand side management (DSM)/Energy efficiency (EE)			201						189						191						188
CEP deferral			193						190						—						—
NCEMPA deferrals			172						157						172						157
Derivatives – natural gas supply contracts			147						168						—						—
Deferred pipeline integrity costs			133						121						—						—
Nuclear deferral			131						154						42						64
COR settlement			115						120						30						32
Decoupling			115						42						15						—
Deferred coal ash handling system costs			86						92						21						25
Qualifying facility contract buyouts			68						81						68						81
Network Integration Transmission Services deferral			31						23						—						—
Transmission expansion obligation			30						31						—						—
East Bend deferrals			28						33						—						—
Propane caverns			26						26						—						—
Tennessee ARM Deferral			20						3						—						—
Other			428						327						127						77
Total regulatory assets			17,266						18,130						8,091						8,979
Less: Current portion			3,648						3,485						1,661						1,833
Total noncurrent regulatory assets			$	13,618					$	14,645					$	6,430					$	7,146
Regulatory Liabilities
Net regulatory liability related to income taxes			$	5,901					$	6,462					$	2,008					$	2,192
COR regulatory liability			5,497						5,151						2,805						2,269
AROs – nuclear and other			1,673						1,038						—						—
Hedge cost deferrals			443						683						208						252
Accrued pension and OPEB			266						211						—						—
Deferred fuel and purchased power			137						35						14						—
DSM/EE			89						88						—						—
DOE Settlement			32						154						32						154
Provision for rate refunds			15						78						4						28
Other			1,355						1,148						430						434
Total regulatory liabilities			15,408						15,048						5,501						5,329
Less: Current portion			1,369						1,466						418						576
Total noncurrent regulatory liabilities			$	14,039					$	13,582					$	5,083					$	4,753

FINANCIAL STATEMENTS			REGULATORY MATTERS

Descriptions of regulatory assets and liabilities summarized in the tables above and below follow. See tables below for recovery and amortization periods at the separate registrants.

AROs – coal ash. Represents deferred depreciation and accretion related to the legal obligation to close ash basins. The costs are deferred until recovery treatment has been determined. See Notes 1 and 10 for additional information.

AROs – nuclear and other. Represents regulatory assets or liabilities, including deferred depreciation and accretion, related to legal obligations associated with the future retirement of property, plant and equipment, excluding amounts related to coal ash. The AROs relate primarily to decommissioning nuclear power facilities. The amounts also include certain deferred gains and losses on NDTF investments. See Notes 1 and 10 for additional information.

Deferred fuel and purchased power. Represents certain energy-related costs that are recoverable or refundable as approved by the applicable regulatory body.

Accrued pension and OPEB. Accrued pension and OPEB represent regulatory assets and liabilities related to each of the Duke Energy Registrants’ respective shares of unrecognized actuarial gains and losses and unrecognized prior service cost and credit attributable to Duke Energy’s pension plans and OPEB plans. The regulatory asset or liability is amortized with the recognition of actuarial gains and losses and prior service cost and credit to net periodic benefit costs for pension and OPEB plans. The accrued pension and OPEB regulatory assets are expected to be recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

Storm cost securitized balance, net. Represents the North Carolina portion of storm restoration expenditures related to Hurricane Florence, Hurricane Michael, Hurricane Dorian and Winter Storm Diego (2018 and 2019 events).

Nuclear asset securitized balance, net. Represents the balance associated with Crystal River Unit 3 retirement approved for recovery by the FPSC on September 15, 2015, and the upfront financing costs securitized in 2016 with issuance of the associated bonds. The regulatory asset balance is net of the AFUDC equity portion.

Debt fair value adjustment. Purchase accounting adjustments recorded to state the carrying value of Progress Energy and Piedmont at fair value in connection with the 2012 and 2016 mergers, respectively. Amount is amortized over the life of the related debt.

Hedge costs deferrals. Amounts relate to unrealized gains and losses on derivatives recorded as a regulatory asset or liability, respectively, until the contracts are settled.

Storm cost deferrals. Represents deferred incremental costs incurred related to major weather-related events.

COR regulatory asset. Represents the excess of spend over funds received from customers to cover the future removal of property, plant and equipment from retired or abandoned sites as property is retired, net of certain deferred gains on NDTF investments.

Post-in-service carrying costs (PISCC) and deferred operating expenses. Represents deferred depreciation and operating expenses as well as carrying costs on the portion of capital expenditures placed in service but not yet reflected in retail rates as plant in service.

Retired generation facilities. Represents amounts to be recovered for facilities that have been retired and are probable of recovery.

Deferred asset – Lee and Harris COLA. Represents deferred costs incurred for the canceled Lee and Harris nuclear projects.

Customer connect project. Represents incremental operating expenses and carrying costs on deferred amounts related to the deployment of the new customer information system.

AMI. Represents deferred costs related to the installation of AMI meters and remaining net book value of non-AMI meters to be replaced at Duke Energy Carolinas, net book value of existing meters at Duke Energy Florida, Duke Energy Progress and Duke Energy Ohio and future recovery of net book value of electromechanical meters that have been replaced with AMI meters at Duke Energy Indiana.

Incremental COVID-19 expenses. Represents incremental costs related to ensuring continuity and quality of service in a safe manner during the COVID-19 pandemic.

Vacation accrual. Represents vacation entitlement, which is generally recovered in the following year.

Grid deferral. Represents deferred incremental operation and maintenance expense, depreciation and property taxes associated with grid improvement plans.

DSM/EE. Deferred costs related to various DSM and EE programs recoverable or refundable as approved by the applicable regulatory body.

CEP deferral. Represents deferred depreciation, PISCC and deferred property tax for Duke Energy Ohio Gas capital assets for the CEP.

NCEMPA deferrals. Represents retail allocated cost deferrals and returns associated with the additional ownership interest in assets acquired from NCEMPA in 2015.

Derivatives – natural gas supply contracts. Represents costs for certain long-dated, fixed quantity forward natural gas supply contracts, which are recoverable through PGA clauses.

Deferred pipeline integrity costs. Represents pipeline integrity management costs in compliance with federal regulations.

Nuclear deferral. Includes amounts related to nuclear plant outage and refueling costs, which are deferred and recovered over the nuclear fuel cycle.

FINANCIAL STATEMENTS			REGULATORY MATTERS

COR settlement. Represents approved COR settlements that are being amortized over the average remaining lives, at the time of approval, of the associated assets.

Decoupling. Relates primarily to margin and revenue decoupling.

Deferred coal ash handling system costs. Represents deferred depreciation and returns associated with capital assets related to converting the ash handling system from wet to dry.

Qualifying facility contract buyouts. Represents termination payments for regulatory recovery through the capacity clause.

Network Integration Transmission Services deferral. Represents a deferral of costs and return related transmission costs.

Transmission expansion obligation. Represents transmission expansion obligations related to Duke Energy Ohio's withdrawal from MISO.

East Bend deferrals. Represents amounts to be recovered for deferred costs and depreciation related to the East Bend station.

Propane Caverns. Represents amounts for costs related to propane inventory, the net book value of remaining assets and decommissioning costs at Duke Energy Ohio.

TN ARM Deferral. Represents amounts to be recovered for uncollected revenue for 2022 and deferred depreciation and carrying costs on the portion of capital expenditures placed in service but not yet reflected in rates.

Net regulatory liability related to income taxes. Amounts for all registrants include regulatory liabilities related primarily to impacts from the Tax Act. See Note 24 for additional information. Amounts have no immediate impact on rate base as regulatory assets are offset by deferred tax liabilities.

COR regulatory liability. Represents funds received from customers to cover the future removal of property, plant and equipment from retired or abandoned sites as property is retired. Also includes certain deferred gains on NDTF investments.

DOE Settlement. Represents litigation settlement funds received resulting from the DOE’s failure to accept spent nuclear fuel and other radioactive waste from the Crystal River Unit 3 during 2014-2018 as required under the Nuclear Waste Policy Act.

Provision for rate refunds. Represents estimated amounts due to customers based on recording interim rates subject to refund.

RESTRICTIONS ON THE ABILITY OF CERTAIN SUBSIDIARIES TO MAKE DIVIDENDS, ADVANCES AND LOANS TO DUKE ENERGY

As a condition to the approval of merger transactions, the NCUC, PSCSC, PUCO, KPSC and IURC imposed conditions on the ability of Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Kentucky, Duke Energy Indiana and Piedmont to transfer funds to Duke Energy through loans or advances, as well as restricted amounts available to pay dividends to Duke Energy. Certain subsidiaries may transfer funds to the Parent by obtaining approval of the respective state regulatory commissions. These conditions imposed restrictions on the ability of the public utility subsidiaries to pay cash dividends as discussed below.

Duke Energy Progress and Duke Energy Florida also have restrictions imposed by their first mortgage bond indentures, which in certain circumstances, limit their ability to make cash dividends or distributions on common stock. Amounts restricted as a result of these provisions were not material at December 31, 2023.

Additionally, certain other subsidiaries of Duke Energy have restrictions on their ability to dividend, loan or advance funds to Duke Energy due to specific legal or regulatory restrictions, including, but not limited to, minimum working capital and tangible net worth requirements.

The restrictions discussed below were not a material amount of Duke Energy's and Progress Energy's net assets at December 31, 2023.

Duke Energy Carolinas

Duke Energy Carolinas must limit cumulative distributions subsequent to mergers to (i) the amount of retained earnings on the day prior to the closing of the mergers, plus (ii) any future earnings recorded.

Duke Energy Progress

Duke Energy Progress must limit cumulative distributions subsequent to the mergers between Duke Energy and Progress Energy and Duke Energy and Piedmont to (i) the amount of retained earnings on the day prior to the closing of the respective mergers, plus (ii) any future earnings recorded.

Duke Energy Ohio

Duke Energy Ohio will not declare and pay dividends out of capital or unearned surplus without the prior authorization of the PUCO. Duke Energy Ohio received FERC and PUCO approval to pay dividends from its equity accounts that are reflective of the amount that it would have in its retained earnings account had push-down accounting for the Cinergy merger not been applied to Duke Energy Ohio’s balance sheet. The conditions include a commitment from Duke Energy Ohio that equity, adjusted to remove the impacts of push-down accounting, will not fall below 30% of total capital.

Duke Energy Kentucky is required to pay dividends solely out of retained earnings and to maintain a minimum of 35% equity in its capital structure.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Indiana

Duke Energy Indiana must limit cumulative distributions subsequent to the merger between Duke Energy and Cinergy to (i) the amount of retained earnings on the day prior to the closing of the merger, plus (ii) any future earnings recorded. In addition, Duke Energy Indiana will not declare and pay dividends out of capital or unearned surplus without prior authorization of the IURC.

Piedmont

Piedmont must limit cumulative distributions subsequent to the acquisition of Piedmont by Duke Energy to (i) the amount of retained earnings on the day prior to the closing of the merger, plus (ii) any future earnings recorded.

RATE-RELATED INFORMATION

The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. The FERC also regulates certification and siting of new interstate natural gas pipeline projects.

Duke Energy Carolinas and Duke Energy Progress

Hurricane Ian

In late September and early October 2022, Hurricane Ian inflicted severe damage to the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina. Approximately 950,000 customers were impacted. As of December 31, 2023, total estimated operation and maintenance expenses incurred for restoration efforts were approximately $95 million, with an additional $8 million in capital investments. Approximately $87 million of the operation and maintenance expenses are deferred in Regulatory assets within Other Noncurrent Assets on the Consolidated Balance Sheets as of December 31, 2023 ($32 million and $55 million for Duke Energy Carolinas and Duke Energy Progress, respectively), Duke Energy Carolinas and Duke Energy Progress have regulatory tools to recover storm costs including deferral and securitization. These estimates could change as Duke Energy Carolinas and Duke Energy Progress receive additional information on actual costs.

Nuclear Station Subsequent License Renewal

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

On February 24, 2022, the NRC issued a decision in the SLR appeal related to Florida Power and Light's Turkey Point nuclear generating station in Florida. The NRC ruled that the NRC’s license renewal Generic Environmental Impact Statement (GEIS) does not apply to SLR because the GEIS does not address SLR. The decision overturned a 2020 NRC decision that found the GEIS applies to SLR. Although Turkey Point is not owned or operated by a Duke Energy Registrant, the NRC’s order applies to all SLR applicants, including Oconee. The NRC order also indicated no subsequent renewed licenses will be issued until the NRC staff has completed an adequate NEPA review for each application. On April 5, 2022, the NRC approved a 24-month rulemaking plan that will enable the NRC staff to complete an adequate NEPA review. Although an SLR applicant may wait until the rulemaking is completed, the NRC also noted that an applicant may submit a supplement to its environmental report providing information on environmental impacts during the SLR period prior to the rulemaking being completed. On November 7, 2022, Duke Energy Carolinas submitted a supplement to its environmental report addressing environmental impacts during the SLR period. On September 14, 2023, the NRC posted on its website that the issuance of the GEIS will now be issued in August 2024 instead of May 2024 due to the volume and technical complexity of the comments received.

On December 19, 2022, the NRC published a notice in the Federal Register that the NRC will conduct a limited scoping process to gather additional information necessary to prepare an environmental impact statement (EIS) to evaluate the environmental impacts at Oconee during the SLR period. The NRC received comments from the EPA and the Petitioners and these comments identify 18 potential impacts that should be considered by the NRC in the EIS, which include, but are not limited to, climate change and flooding, environmental justice, severe accidents, and external events. On February 8, 2024, the NRC issued the Oconee site-specific draft EIS.

On December 19, 2022, the NRC issued the Safety Evaluation Report (SER) for the safety portion of the SLR application. The NRC determined Duke Energy Carolinas met the requirements of the applicable regulations and identified actions that have been taken or will be taken to manage the effects of aging and address time-limited analyses. Duke Energy Carolinas and the NRC met with the Advisory Committee on Reactor Safeguards (ACRS) on February 2, 2023, to discuss issues regarding the SER and SLR application. On February 25, 2023, the ACRS issued a report to the NRC on the safety aspects of the Oconee SLR application, which concluded that the established programs and commitments made by Duke Energy Carolinas to manage age-related degradation provide confidence that Oconee can be operated in accordance with its current licensing basis for the subsequent period of extended operation without undue risk to the health and safety of the public and the SLR application for Oconee should be approved.

Although the NRC’s GEIS applicability decision has delayed completion of the SLR proceeding, Duke Energy Carolinas does not believe it changes the probability that the Oconee subsequent renewed licenses will ultimately be issued, although Duke Energy Carolinas cannot guarantee the outcome of the license application process.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Carolinas and Duke Energy Progress intend to seek renewal of operating licenses and 20-year license extensions for all of their nuclear stations. Accordingly, new depreciation rates were implemented for all of the nuclear facilities during the second quarter of 2021. Duke Energy Carolinas and Duke Energy Progress cannot predict the outcome of these additional relicensing proceedings.

Duke Energy Carolinas

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Carolinas' Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	1,559		$	1,391					(g)			(b)
Deferred fuel and purchased power(i)			1,293			1,614						(e)			2025
Accrued pension and OPEB			671			614									(h)
Storm cost securitized balance, net			208			220						Yes			2041
Hedge costs deferrals			405			228									(b)
Storm cost deferrals			97			114						Yes			(b)
PISCC and deferred operating expenses			48			47						Yes			(b)
Retired generation facilities(c)			26			39						Yes			(b)
Deferred asset – Lee COLA			237			267									(b)
Customer connect project(c)			58			62						Yes			(b)
AMI(c)			125			139						Yes			(b)
Incremental COVID-19 expenses			152			127						Yes			(b)
Vacation accrual			87			84									2024
Grid Deferral(c)			159			96						Yes			(b)
Nuclear deferral			89			90									2025
COR settlement(c)			85			88						Yes			(b)
Deferred coal ash handling system costs(c)			65			67						Yes			(b)
Other			116			101									(b)
Total regulatory assets			5,480			5,388
Less: Current portion			1,564			1,095
Total noncurrent regulatory assets			$	3,916		$	4,293
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes(d)			$	2,200		$	2,475					Yes			(b)
COR regulatory liability(c)			1,641			1,769						Yes			(f)
AROs – nuclear and other			1,673			1,038									(b)
Hedge cost deferrals			158			350									(b)
Accrued pension and OPEB			106			44									(h)
Deferred fuel and purchased power(i)			85			—						(e)			2025
DSM/EE(c)			87			86						Yes			(j)
Provision for rate refunds(c)			11			50						Yes			(b)
Other			616			501									(b)
Total regulatory liabilities			6,577			6,313
Less: Current portion			587			530
Total noncurrent regulatory liabilities			$	5,990		$	5,783

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.

(e) Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally relates to North Carolina costs while the liability balance relates to South Carolina.

(f) Recovered over the life of the associated assets.

(g) Earns a debt and equity return on coal ash expenditures for North Carolina and South Carolina retail customers as permitted by various regulatory orders.

(h) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

(i) Duke Energy Carolinas submitted a fuel filing to the NCUC in February 2023 for recovery of $998 million, which included deferrals through December 2022. The NCUC approved recovery of this balance through December 2024. The next filing will be made in the first quarter of 2024. Duke Energy Carolinas submitted a fuel filing to the PSCSC in August 2023 for recovery of $310 million, which included deferrals through May 2023. The PSCSC approved recovery of this balance through October 2024. The next filing will be made in the third quarter of 2024.

(j) Includes incentives on DSM/EE investments and is recovered or refunded through an annual rider mechanism.

FINANCIAL STATEMENTS			REGULATORY MATTERS

2023 North Carolina Rate Case

On January 19, 2023, Duke Energy Carolinas filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR Application included an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR Application included an Earnings Sharing Mechanism, Residential Decoupling Mechanism and Performance Incentive Mechanisms (PIMS) as required by HB 951. The application as originally filed requested an overall retail revenue increase of $501 million in Year 1, $172 million in Year 2 and $150 million in Year 3, for a combined total of $823 million or 15.7% by early 2026. The rate increase is driven primarily by transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets included in the MYRP consistent with the Carbon Plan.

On August 22, 2023, Duke Energy Carolinas filed with the NCUC a partial settlement with the Public Staff in connection with its PBR application. The partial settlement included, among other things, agreement on a substantial portion of the North Carolina retail rate base for the historic base case of approximately $19.5 billion and all of the capital projects and related costs to be included in the three-year MYRP, including $4.6 billion (North Carolina retail allocation) projected to go in service over the MYRP period. Additionally, the partial settlement included agreement, with certain adjustments, on depreciation rates, the recovery of grid improvement plan costs and PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application. On August 28, 2023, Duke Energy Carolinas filed with the NCUC a second partial settlement with the Public Staff resolving additional issues, including the future treatment of nuclear production tax credits related to the Inflation Reduction Act, through a stand-alone rider that will provide the benefits to customers beginning January 1, 2025.

On December 15, 2023, the NCUC issued an order approving Duke Energy Carolinas' PBR Application, as modified by the partial settlements and the order, including an overall retail revenue increase of $436 million in Year 1, $174 million in Year 2 and $158 million in Year 3, for a combined total of $768 million. The order established an ROE of 10.1% based upon a capital structure of 53% equity and 47% debt and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR Application and revised by the partial settlements. As a result of the partial settlements and the order, Duke Energy Carolinas recognized pretax charges of $29 million within Impairment of assets and other charges, and $8 million within Operations, maintenance and other, for the year ended December 31, 2023, on the Consolidated Statements of Operations. Duke Energy Carolinas implemented interim rates, subject to refund, on September 1, 2023. New revised Year 1 rates and the residential decoupling were implemented on January 15, 2024. On February 13, 2024, a number of parties filed Notices of Appeal of the December 15, 2023 NCUC order. Appeals were filed by the Carolina Industrial Group for Fair Utility Rates (CIGFUR) III, a collection of various electric membership corporations (collectively, the EMCs), and the North Carolina Attorney General’s Office (the AGO). CIGFUR III and the EMCs appealed the interclass subsidy reduction percentage and the Transmission Cost Allocation stipulation. In addition, CIGFUR III appealed the NCUC’s elimination of the equal percentage fuel cost allocation methodology. The AGO appealed several issues including the authorized ROE and certain rate design and accounting matters. Duke Energy Carolinas cannot predict the outcome of this matter.

2024 South Carolina Rate Case

On January 4, 2024, Duke Energy Carolinas filed a rate case with the PSCSC to request an average effective net increase in annual retail revenues of 11.4%, or approximately $239 million, in the first two years, and an additional overall effective increase of about 4.1%, or approximately $84 million additional revenue, after the first two years. The requested increases, if approved, would result in an overall average 15.5% increase in annual retail revenues, or approximately $323 million, prior to mitigation efforts. To mitigate the rate increase, Duke Energy Carolinas has proposed to accelerate the return of remaining federal unprotected EDIT balances to customers over two years. This offset reduces the impact to customers in the first two years to the effective net increase of 11.4%, after which the credit for EDIT balances expire. Duke Energy Carolinas has requested the revised rates to be effective no later than August 1, 2024. The evidentiary hearing is scheduled to commence on May 20, 2024. Duke Energy Carolinas cannot predict the outcome of this matter.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Progress

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Progress' Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	1,218		$	1,418					(g)			(b)
AROs – nuclear and other			1,110			869									(c)
Deferred fuel and purchased power(l)			579			705						(e)			2025
Accrued pension and OPEB			408			417									(j)
Storm cost securitized balance, net			682			720						Yes			2041
Hedge costs deferrals			260			55									(b)
Storm cost deferrals			228			234						Yes			(b)
PISCC and deferred operating expenses			42			42						Yes			2054
Retired generation facilities(d)			126			149						Yes			(b)
Deferred asset – Harris COLA			15			21									(b)
Customer connect project(d)			49			54						Yes			(b)
AMI(d)			68			81						Yes			(b)
Incremental COVID-19 expenses			80			78									(b)
Vacation accrual			43			43									2024
Grid Deferral(d)			51			40						Yes			(b)
DSM/EE(d)			182			180						Yes			(h)
NCEMPA deferrals(d)			172			157						(f)			2042
Nuclear deferral			42			64									2025
COR settlement(d)			30			32						Yes			(b)
Decoupling			15			—						Yes			(b)
Deferred coal ash handling system costs(d)			21			25						Yes			(b)
Other			67			30									(b)
Total regulatory assets			5,488			5,414
Less: Current portion			942			690
Total noncurrent regulatory assets			$	4,546		$	4,724
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes(k)			$	1,420		$	1,559					Yes			(b)
COR regulatory liability			2,805			2,269									(i)
Hedge cost deferrals			87			252									(b)
Deferred fuel and purchased power(l)			14			—						(e)			2025
Provision for rate refunds(d)			4			28						Yes			(b)
Other			345			344									(b)
Total regulatory liabilities			4,675			4,452
Less: Current portion			300			332
Total noncurrent regulatory liabilities			$	4,375		$	4,120

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Recovery period for costs related to nuclear facilities runs through the decommissioning period of each unit.

(d) Included in rate base.

(e) Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally relates to North Carolina costs while the liability balance relates to South Carolina.

(f) South Carolina retail allocated costs are earning a return.

(g) Earns a debt and equity return on coal ash expenditures for North Carolina and South Carolina retail customers as permitted by various regulatory orders.

(h) Includes incentives on DSM/EE investments and is recovered through an annual rider mechanism.

(i) Recovered over the life of the associated assets.

(j) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

FINANCIAL STATEMENTS			REGULATORY MATTERS

(k) Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.

(l) Duke Energy Progress submitted a fuel filing to the NCUC in June 2023 for recovery of $445 million, which included deferrals through March 2023. The NCUC approved recovery of this balance through November 2024. The next filing will be made in the second quarter of 2024. Duke Energy Progress submitted a fuel filing to the PSCSC in May 2023 for recovery of $79 million, which included deferrals through February 2023. The PSCSC approved recovery of this balance through July 2024. The next filing will be made in the second quarter of 2024.

2022 North Carolina Rate Case

On October 6, 2022, Duke Energy Progress filed a PBR application with the NCUC to request an increase in base rate retail revenues. The rate request before the NCUC included an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR Application included an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMS as required by HB 951. The overall retail revenue increase as originally filed would have been $326 million in Year 1, $151 million in Year 2 and $138 million in Year 3, for a combined total of $615 million, by late 2025. The rate increase is driven primarily by transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets included in the MYRP consistent with the Carbon Plan.

On April 26, 2023, Duke Energy Progress filed with the NCUC a partial settlement with Public Staff, which included agreement on many aspects of Duke Energy Progress' three-year MYRP proposal. In May 2023, CIGFUR II joined this partial settlement and Public Staff and CIGFUR II filed a separate settlement reaching agreement on PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application.

On August 18, 2023, the NCUC issued an order approving Duke Energy Progress' PBR Application, as modified by the partial settlements and the order, including an overall retail revenue increase of $233 million in Year 1, $126 million in Year 2 and $135 million in Year 3, for a combined total of $494 million. Key aspects of the order include the approval of North Carolina retail rate base for the historic base case of approximately $12.2 billion and capital projects and related costs to be included in the three-year MYRP, including $3.5 billion (North Carolina retail allocation) projected to go in service over the MYRP period. The order established an ROE of 9.8% based upon a capital structure of 53% equity and 47% debt and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR Application and revised by the partial settlements. As a result of the order, Duke Energy Progress recognized pretax charges of $28 million within Impairment of assets and other charges, which primarily related to certain COVID-19 deferred costs, and $8 million within Operations, maintenance and other, for the year ended December 31, 2023, on the Consolidated Statements of Operations. Duke Energy Progress implemented interim rates, subject to refund, on June 1, 2023, and implemented revised Year 1 rates and the residential decoupling on October 1, 2023.

On October 17, 2023, CIGFUR II and Haywood Electric Membership Corporation each filed a Notice of Appeal and Exceptions to the Supreme Court of North Carolina. Both parties were appealing certain matters that do not impact the overall revenue requirement in the rate case. Specifically, they appealed the interclass subsidy reduction percentage, and CIGFUR II also appealed the Customer Assistance Program and the equal percentage fuel cost allocation methodology. On November 6, 2023, the AGO filed a Notice of Cross Appeal of the NCUC’s determination regarding the exclusion of electric vehicle revenue from the residential decoupling mechanism. On November 9, 2023, Duke Energy Progress, the Public Staff, CIGFUR II, and a number of other parties reached a settlement pursuant to which CIGFUR II agreed not to pursue its appeal of the Customer Assistance Program. Duke Energy Progress cannot predict the outcome of this matter.

2023 South Carolina Storm Securitization

On May 31, 2023, Duke Energy Progress filed a petition with the PSCSC requesting authorization for the financing of Duke Energy Progress' storm recovery costs in the amount of approximately $171 million, through securitization, due to storm recovery activities required as a result of the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. On September 8, 2023, Duke Energy Progress filed a comprehensive settlement agreement with all parties on all cost recovery issues raised in the storm securitization proceeding.

The evidentiary hearing occurred in early September 2023. On September 20, 2023, the PSCSC approved the comprehensive settlement agreement and on October 13, 2023, the PSCSC issued its financing order. Duke Energy Progress will proceed with structuring, marketing and pricing the storm recovery bonds and then seek PSCSC authorization to issue the bonds in the first half of 2024. Duke Energy Progress cannot predict the outcome of this matter.

2022 South Carolina Rate Case

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

• A $52 million annual customer rate increase prior to the reduction from the accelerated return to customers of federal unprotected Property, Plant and Equipment related EDIT. After extending the remaining EDIT giveback to customers to 33 months, the net annual retail rate increase is approximately $36 million.

• ROE of 9.6% based upon a capital structure of 52.43% equity and 47.57% debt.

• Continuation of deferral treatment of coal ash basin closure costs. Supports an amortization period for remaining coal ash closure costs in this rate case of seven years. Duke Energy Progress agreed not to seek recovery of approximately $50 million of deferred coal ash expenditures related to retired sites in this rate case (South Carolina retail allocation).

• Accepts the 2021 Depreciation Study as proposed in this case, as adjusted for certain recommendations from ORS and includes accelerated retirement dates for certain coal units as originally proposed.

• Establishment of a storm reserve to help offset the costs of major storms.

FINANCIAL STATEMENTS			REGULATORY MATTERS

The PSCSC held a hearing on January 17, 2023, to consider evidence supporting the stipulation and unanimously voted to approve the comprehensive agreement on February 9, 2023. A final written order was issued on March 8, 2023. New rates went into effect April 1, 2023.

Duke Energy Florida

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Florida's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	12		$	11								(b)
AROs – nuclear and other			17			15									(b)
Deferred fuel and purchased power(g)			594			1,355						(e)			2024
Accrued pension and OPEB(c)			349			342						Yes			(f)
Nuclear asset securitized balance, net			830			881									2036
Hedge costs deferrals(c)			63			73						Yes			2038
Storm cost deferrals(c)			70			325						(e)			(b)
COR regulatory asset			337			221						(d)			(b)
Retired generation facilities(c)			94			94						Yes			2044
Customer connect project(c)			76			82						Yes			2037
AMI(c)			24			30						Yes			2032
Qualifying facility contract buyouts(c)			68			81						Yes			2034
Other			69			55						(d)			(b)
Total regulatory assets			2,603			3,565
Less: Current portion			720			1,143
Total noncurrent regulatory assets			$	1,883		$	2,422
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes(c)			$	588		$	633								(b)
Hedge cost deferrals			121			—									(b)
DOE Settlement			32			154									2024
Other			85			90						(d)			(b)
Total regulatory liabilities			826			877
Less: Current portion			118			244
Total noncurrent regulatory liabilities			$	708		$	633

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Certain costs earn/pay a return.

(e) Earns commercial paper rate.

(f) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

(g) On March 6, 2023, the FPSC approved Duke Energy Florida's amended February 2023 fuel filing recovery of $469 million, which included the 2022 actual under-recovery of $1.2 billion, offset by projected declining fuel costs in 2023 due to lower natural gas prices. The approved 21-month recovery period for the actual 2022 under-recovery is April 2023 through December 2024; the reduction in 2023 fuel costs were approved to be returned over 9-months from April 2023 through December 2023. Duke Energy Florida made its most recent fuel filing in September 2023. On November 1, 2023, the FPSC approved Duke Energy Florida's September 2023 fuel filing, which included the proposed fuel factors for 2024. In addition to the under-recoveries approved above, that filing also included a re-projected 2023 over-recovery of approximately $120 million that will be returned to customers January 2024 through December 2024.

2021 Settlement Agreement

On January 14, 2021, Duke Energy Florida filed the 2021 Settlement with the FPSC. The parties to the 2021 Settlement include Duke Energy Florida, the Office of Public Counsel (OPC), the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate and NUCOR Steel Florida, Inc. (collectively, the Parties).

FINANCIAL STATEMENTS			REGULATORY MATTERS

Pursuant to the 2021 Settlement, the Parties agreed to a base rate stay-out provision that expires year-end 2024; however, Duke Energy Florida is allowed an increase to its base rates of an incremental $67 million in 2022, $49 million in 2023 and $79 million in 2024, subject to adjustment in the event of tax reform during the years 2021, 2022 and 2023. The Parties also agreed to an ROE band of 8.85% to 10.85% with a midpoint of 9.85% based on a capital structure of 53% equity and 47% debt. The ROE band can be increased by 25 basis points if the average 30-year U.S. Treasury rate increases 50 basis points or more over a six-month period in which case the midpoint ROE would rise from 9.85% to 10.10%. On July 25, 2022, this provision was triggered. Duke Energy Florida filed a petition with the FPSC on August 12, 2022, to increase the ROE effective August 2022 with a base rate increase effective January 1, 2023. The FPSC approved this request on October 4, 2022. The 2021 Settlement also provided that Duke Energy Florida will be able to retain $173 million of the expected DOE award from its lawsuit to recover spent nuclear fuel to mitigate customer rates over the term of the 2021 Settlement. In return, Duke Energy Florida is permitted to recognize the $173 million into earnings through the approved settlement period. Duke Energy Florida settled the DOE lawsuit and received payment of approximately $180 million on June 15, 2022, of which the retail portion was approximately $154 million. The 2021 Settlement authorizes Duke Energy Florida to collect the difference between $173 million and the $154 million retail portion of the amount received through the capacity cost recovery clause. As of December 31, 2023, Duke Energy Florida has recognized $141 million into earnings. The remaining $32 million is expected to be recognized in 2024, while also remaining within the approved return on equity band.

The 2021 Settlement also contained a provision to recover or flow-back the effects of tax law changes. As a result of the IRA enacted on August 16, 2022, Duke Energy Florida is eligible for PTCs associated with solar facilities placed in service beginning in January 2022. Duke Energy Florida filed a petition with the FPSC on October 17, 2022, to reduce base rates effective January 1, 2023, by $56 million to flow back the expected 2023 PTCs and to flow back the expected 2022 PTCs via an adjustment to the capacity cost recovery clause. On December 14, 2022, the FPSC issued an order approving Duke Energy Florida’s petition. See Note 24 for additional information on the IRA.

In addition to these terms, the 2021 Settlement contained provisions related to the accelerated depreciation of Crystal River Units 4-5, the approval of approximately $1 billion in future investments in new cost-effective solar power, the implementation of a new Electric Vehicle Charging Station Program and the deferral and recovery of costs in connection with the implementation of Duke Energy Florida’s Vision Florida program, which explores various emerging non-carbon emitting generation technology, distributed technologies and resiliency projects, among other things. The 2021 Settlement also resolved remaining unrecovered storm costs for Hurricane Michael and Hurricane Dorian.

The FPSC approved the 2021 Settlement on May 4, 2021, issuing an order on June 4, 2021. Revised customer rates became effective January 1, 2022, with subsequent base rate increases effective January 1, 2023, and January 1, 2024.

Clean Energy Connection

On July 1, 2020, Duke Energy Florida petitioned the FPSC for approval of a voluntary solar program consisting of 10 new solar generating facilities with combined capacity of approximately 750 MW. The program allows participants to support cost-effective solar development in Florida by paying a subscription fee based on per kilowatt subscriptions and receiving a credit on their bill based on the actual generation associated with their portion of the solar portfolio. The estimated cost of the 10 new solar generation facilities is approximately $1 billion and the projects are expected to be completed by the end of 2024. This investment will be included in base rates offset by the revenue from the subscription fees and the credits will be included for recovery in the fuel cost recovery clause. The FPSC approved the program in January 2021.

On February 24, 2021, the League of United Latin American Citizens (LULAC) filed a notice of appeal of the FPSC’s order approving the Clean Energy Connection to the Supreme Court of Florida. The Supreme Court of Florida heard oral arguments in the appeal on February 9, 2022. On May 27, 2022, the Supreme Court of Florida issued an order remanding the case back to the FPSC so that the FPSC can amend its order to better address some of the arguments raised by LULAC. On September 23, 2022, the FPSC issued a revised order and submitted it on September 26, 2022, to the Supreme Court of Florida. The Supreme Court of Florida requested that the parties file supplemental briefs regarding the revised order, which were filed February 6, 2023. LULAC has filed a request for Oral Argument on the issues discussed in the supplemental briefs, but the Court has yet to rule on that request. The FPSC approval order remains in effect pending the outcome of the appeal. Duke Energy Florida cannot predict the outcome of this matter.

Storm Protection Plan

On April 11, 2022, Duke Energy Florida filed a Storm Protection Plan for approval with the FPSC. The plan, which covers investments for the 2023-2032 time frame, reflects approximately $7 billion of capital investment in transmission and distribution meant to strengthen its infrastructure, reduce outage times associated with extreme weather events, reduce restoration costs and improve overall service reliability. The evidentiary hearing began on August 2, 2022. On October 4, 2022, the FPSC voted to approve Duke Energy Florida's plan with one modification to remove the transmission loop radially fed program, representing a reduction of approximately $80 million over the 10-year period starting in 2025. On December 9, 2022, the OPC filed a notice of appeal of this order to the Florida Supreme Court. The OPC's initial brief was filed on April 18, 2023. Duke Energy Florida filed its answer brief on July 17, 2023. The OPC's reply brief was filed on October 16, 2023. The Florida Supreme Court heard oral arguments on February 7, 2024. Duke Energy Florida cannot predict the outcome of this matter.

Hurricanes Ian and Idalia

On September 28, 2022, much of Duke Energy Florida’s service territory was impacted by Hurricane Ian, which caused significant damage resulting in more than 1.1 million outages. Duke Energy Florida's Consolidated Balance Sheets included an estimate of approximately $353 million as of December 31, 2022, related to deferred Hurricane Ian storm costs, consistent with the FPSC's storm rule, in Regulatory assets within Other Noncurrent Assets. After depleting any existing storm reserves, which were approximately $107 million before Hurricane Ian, Duke Energy Florida is permitted to petition the FPSC for recovery of additional incremental operation and maintenance costs resulting from the storm and to replenish the retail customer storm reserve to approximately $132 million. Duke Energy Florida filed its petition for cost recovery of various storms, including Hurricane Ian, and replenishment of the storm reserve on January 23, 2023, seeking recovery of $442 million, for recovery over 12 months beginning with the first billing cycle in April 2023. On March 7, 2023, the FPSC approved this request for interim recovery, subject to refund, and ordered Duke Energy Florida to file documentation of the total actual storm costs, once known. Duke Energy Florida filed documentation evidencing its total actual storm costs of $431 million on September 29, 2023. The FPSC will hold a final hearing to determine the prudence of these costs in May of 2024.

FINANCIAL STATEMENTS			REGULATORY MATTERS

On August 30, 2023, Hurricane Idalia made landfall on Florida’s gulf coast, causing damage and impacting more than 200,000 customers across Duke Energy Florida's service territory. Duke Energy Florida's December 31, 2023, Consolidated Balance Sheets includes an estimate of approximately $102 million in Regulatory Assets within Current Assets related to deferred Hurricane Idalia storm costs consistent with the FPSC's storm rule. On October 16, 2023, Duke Energy Florida requested to combine the $92 million retail portion of the deferred estimated Hurricane Idalia costs with $74 million of costs projected to be collected after December 31, 2023, under the existing approved storm cost recovery and storm surcharge. This $74 million of costs relates primarily to the approved ongoing replenishment of the storm reserves. At its December 5, 2023 Agenda Conference, the FPSC approved recovery of the total $166 million over 12 months beginning with its first billing cycle in January 2024, replacing the previously approved storm cost recovery and storm surcharge, and ordered Duke Energy Florida to file documentation of the total actual Idalia related storm costs, once known. Revised rates were effective January 1, 2024. Duke Energy Florida cannot predict the outcome of these matters.

2024 Florida Rate Case

In January 2024, Duke Energy Florida notified the FPSC that it expects to file a formal request for new base rates in April 2024. Duke Energy Florida intends to propose a three-year rate plan that would begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024. Duke Energy Florida will propose multiyear rate increases that use the projected 12-month periods ending December 31, 2025, 2026, and 2027 as the test years, with adjusted rates to be effective with the first billing period of January 2025, 2026, and 2027, respectively. Duke Energy Florida expects to request additional base rate revenue requirements of approximately $596 million in 2025, $95 million in 2026 and $127 million in 2027, representing an average annual increase in revenue requirements of approximately 4% over 2025 through 2027.

Duke Energy Ohio

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Ohio's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	17		$	—					Yes			(b)
Deferred fuel and purchased gas costs			20			54									2024
Accrued pension and OPEB			123			129									(e)
Storm cost deferrals			12			14									2024
COR regulatory asset			34			—									(b)
PISCC and deferred operating expenses(c)			15			15						Yes			2083
Customer connect project			49			54									(b)
AMI			13			18									(b)
CEP deferral			193			190						Yes			(b)
Deferred pipeline integrity costs			30			28						Yes			(b)
Decoupling			25			—									(b)
Network Integration Transmission Services deferral			31			23						Yes			(b)
Transmission expansion obligation			30			31									(b)
East Bend deferrals(c)			28			33						Yes			(b)
Propane caverns			26			26									(b)
Other			103			69									(b)
Total regulatory assets			749			684
Less: Current portion			73			103
Total noncurrent regulatory assets			$	676		$	581
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes			$	466		$	496								(b)
COR regulatory liability			—			9									(d)
Accrued pension and OPEB			17			21									(e)
Deferred fuel and purchased gas costs			15			35									2024
Other			55			72									(b)
Total regulatory liabilities			553			633
Less: Current portion			56			99
Total noncurrent regulatory liabilities			$	497		$	534

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Recovery over the life of the associated assets.

(e) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Ohio Electric Base Rate Case

Duke Energy Ohio filed with the PUCO an electric distribution base rate case application on October 1, 2021, with supporting testimony filed on October 15, 2021, requesting an increase in electric distribution base rates of approximately $55 million. On September 19, 2022, Duke Energy Ohio filed a Stipulation and Recommendation with the PUCO, which included an increase in overall electric distribution base rates of approximately $23 million with an equity ratio of 50.5% and an ROE of 9.5%. The stipulation was among all but one party to the proceeding. The PUCO issued an order on December 14, 2022, approving the Stipulation without modification. Rates went into effect on January 3, 2023. The Ohio Consumers' Counsel (OCC) filed an application for rehearing on January 13, 2023, arguing the Stipulation was unreasonable, discriminatory and denied OCC due process. On February 8, 2023, the Commission granted the OCC's application for rehearing for further consideration. Duke Energy Ohio cannot predict the outcome of this matter.

Energy Efficiency Cost Recovery

In response to changes in Ohio law that eliminated Ohio's energy efficiency mandates, the PUCO issued an order on February 26, 2020, directing utilities to wind down their demand-side management programs by September 30, 2020, and to terminate the programs by December 31, 2020.

• On March 27, 2020, Duke Energy Ohio filed an application for rehearing seeking clarification on the final true up and reconciliation process after 2020.

• Effective January 1, 2021, Duke Energy Ohio suspended its energy efficiency programs.

On August 9, 2023, the PUCO issued its decision approving the Company’s request for recovery and final true up of energy efficiency program costs, lost distribution revenues and performance incentives from calendar years 2018 through 2020, resulting in $14 million of Regulated electric revenue on the Consolidated Statements of Operations for the year ended December 31, 2023, and resolving all outstanding issues in these proceedings. Revised rates were effective September 1, 2023.

Duke Energy Ohio Natural Gas Base Rate Case

Duke Energy Ohio filed with the PUCO a natural gas base rate case application on June 30, 2022, with supporting testimony filed on July 14, 2022, requesting an increase in natural gas base rates of approximately $49 million. The drivers for this case are capital invested since Duke Energy Ohio's last natural gas base rate case in 2012. Duke Energy Ohio also sought to adjust the caps on its CEP Rider. On April 28, 2023, Duke Energy Ohio filed a stipulation with all parties to the case except the OCC. In the stipulation, the parties agreed to approximately $32 million in revenue increases with an equity ratio of 52.32% and an ROE of 9.6%, and adjustments to the CEP Rider caps. The stipulation was opposed by the OCC at an evidentiary hearing that concluded on May 24, 2023. On November 1, 2023, PUCO issued an order approving the stipulation as filed. New rates went into effect November 1, 2023. On December 1, 2023, the OCC filed an application for rehearing. On December 13, 2023, the PUCO granted OCC's application for rehearing for further consideration of issues raised. Duke Energy Ohio cannot predict the outcome of this matter.

MGP Cost Recovery

In an order issued in 2013, the PUCO approved Duke Energy Ohio's deferral and recovery of costs related to environmental remediation at two sites (East End and West End) that housed former MGP operations. Duke Energy Ohio made annual applications with the PUCO to recover its incremental remediation costs consistent with the PUCO’s directive in Duke Energy Ohio’s 2012 natural gas base rate case.

A Stipulation and Recommendation was filed jointly by Duke Energy Ohio, the Staff, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021, which was approved without modification by the PUCO on April 20, 2022. The Stipulation and Recommendation resolved all open issues regarding MGP remediation costs incurred between 2013 and 2019, Duke Energy Ohio’s request for additional deferral authority beyond 2019 and the pending issues related to the Tax Act described below as it related to Duke Energy Ohio’s natural gas operations. As a result of the approval of the Stipulation and Recommendation, Duke Energy Ohio recognized pretax charges of approximately $15 million to Operating revenues, regulated natural gas and $58 million to Operation, maintenance and other and a tax benefit of $72 million to Income Tax (Benefit) Expense in the Consolidated Statements of Operations for the year ended December 31, 2022. The Stipulation and Recommendation further acknowledged Duke Energy Ohio’s ability to file a request for additional deferral authority in the future related to environmental remediation of any MGP impacts in the Ohio River, if necessary, subject to specific conditions. On June 15, 2022, the PUCO granted the rehearing requests of Interstate Gas Supply, Inc. (IGS) and The Retail Energy Supply Association (RESA), which were filed on May 20, 2022, for further consideration. Duke Energy Ohio cannot predict the outcome of this matter.

Tax Act – Ohio

On December 21, 2018, Duke Energy Ohio filed an application to change its base rate tariffs and establish a rider to implement the benefits of the Tax Act for natural gas customers. The rider would flow through to customers the benefit of the reduction in the statutory federal tax rate from 35% to 21% since January 1, 2018, all future benefits of the lower tax rates and a full refund of deferred income taxes collected at the higher tax rates in prior years. Deferred income taxes subject to normalization rules would be refunded consistent with federal law and deferred income taxes not subject to normalization rules will be refunded over a 10-year period. An evidentiary hearing occurred on August 7, 2019. The Stipulation and Recommendation filed on August 31, 2021, and approved on April 20, 2022, disclosed in the MGP Cost Recovery matter above, resolved the outstanding issues in this proceeding by providing customers a one-time bill credit for the reduction in the statutory federal tax rate from 35% to 21% since January 1, 2018, through June 1, 2022, and reducing base rates going forward. Deferred income taxes not subject to normalization rules were written off. Deferred income taxes subject to normalization rules are refunded consistent with federal law through a rider. The commission granted the rehearing requests of IGS and RESA for further consideration. Duke Energy Ohio cannot predict the outcome of this matter.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Midwest Propane Caverns

Duke Energy Ohio used propane stored in caverns to meet peak demand during winter for several decades. Once the Central Corridor Project was complete and placed in service, the propane peaking facilities were no longer necessary and were retired. On October 7, 2021, Duke Energy Ohio requested deferral treatment of the property, plant and equipment as well as costs related to propane inventory and decommissioning costs. On January 6, 2022, the Staff issued a report recommending deferral authority for costs related to propane inventory and decommissioning costs, but not for the net book value of the remaining plant assets. As a result of the Staff's report, Duke Energy Ohio recorded a $19 million charge to Impairment of assets and other charges on the Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2021. A Stipulation and Recommendation was filed jointly by Duke Energy Ohio and the Staff on April 27, 2022, recommending, among other things, approval of deferral treatment of a portion of the net book value of the property, plant and equipment prior to the 2021 impairment at the time of the next natural gas base rate case, excluding operations and maintenance savings, decommissioning costs not to exceed $7 million and costs related to propane inventory. The Stipulation and Recommendation states that Duke Energy Ohio will seek recovery of the deferral through its next natural gas base rate case proceeding with a proposed amortization period of at least 10 years and include an independent engineering study analyzing the necessity and prudency of the incremental investments made at the facilities since March 31, 2012. Duke Energy Ohio will not seek a return on the deferred amounts. An evidentiary hearing was held on September 8, 2022. On October 5, 2022, the PUCO issued an order approving the Stipulation and Recommendation as filed. As a result of the order, Duke Energy Ohio recorded a reversal of $12 million to Impairment of assets and other charges on the Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2022.

Duke Energy Kentucky Electric Base Rate Case

On December 1, 2022, Duke Energy Kentucky filed a rate case with the KPSC requesting an annualized increase in electric base rates of approximately $75 million. The request for rate increase was driven by capital investments to strengthen the electricity generation and delivery systems along with adjusted depreciation rates for the East Bend and Woodsdale generation stations to support the energy transition. Duke Energy Kentucky also requested new programs and tariff updates, including a voluntary community-based renewable subscription program and two electric vehicle charging programs. The KPSC issued an order on October 12, 2023, including a $48 million increase in base revenues, an ROE of 9.75% for electric base rates and 9.65% for electric riders and an equity ratio of 52.145%. New rates went into effect October 13, 2023. The Company's request to align the depreciation rates of East Bend with a 2035 retirement date was denied and the KPSC ordered depreciation rates with a 2041 retirement date for the unit. The KPSC did approve the request to align the depreciation rates of Woodsdale CT with a 2040 retirement date and denied the voluntary community-based renewable subscription program and the two electric vehicle charging programs.

On November 1, 2023, Duke Energy Kentucky filed for rehearing requesting certain matters be reconsidered by the KPSC. On November 21, 2023, KPSC granted in part and denied in part the Company's request for rehearing. On February 15, 2024, the KPSC issued a briefing schedule for the rehearing process. Simultaneous briefs are due on March 18, 2024, simultaneous reply briefs are due on April 1, 2024 and the matter shall stand submitted on April 2, 2024. On December 14, 2023, Duke Energy Kentucky filed an appeal with the Franklin County Circuit Court on certain matters for which the KPSC denied rehearing, specifically as it relates to including decommissioning costs in depreciation rates for East Bend and Woodsdale. On January 8, 2024, answers to the appeal were filed by the KPSC, Kentucky Attorney General, and the Kentucky Broadband & Cable Association. Duke Energy Kentucky cannot predict the outcome of this matter.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Indiana

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Indiana's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	408		$	385					Yes			(b)
Deferred fuel and purchased power			—			138									2024
Accrued pension and OPEB			208			214									(e)
Hedge costs deferrals			19			20									(b)
PISCC and deferred operating expenses(c)			252			255						Yes			(b)
Retired generation facilities(c)			29			34						Yes			2030
Customer connect project			19			19									(b)
AMI			13			15									2031
Other			48			44									(b)
Total regulatory assets			996			1,124
Less: Current portion			102			249
Total noncurrent regulatory assets			$	894		$	875
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes			$	794		$	840								(b)
COR regulatory liability			496			531									(d)
Hedge cost deferrals			77			81									(b)
Accrued pension and OPEB			109			104									(e)
Deferred fuel and purchased power			23			—									2024
Other			169			85									(b)
Total regulatory liabilities			1,668			1,641
Less: Current portion			209			187
Total noncurrent regulatory liabilities			$	1,459		$	1,454

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Refunded over the life of the associated assets.

(e) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

2019 Indiana Rate Case

On July 2, 2019, Duke Energy Indiana filed a general rate case with the IURC for a rate increase for retail customers of approximately $395 million. The rebuttal case, filed on December 4, 2019, updated the requested revenue requirement to result in a 15.6% or $396 million average retail rate increase, including the impacts of the utility receipts tax. On June 29, 2020, the IURC issued an order in the rate case approving a revenue increase of $146 million before certain adjustments and ratemaking refinements. The order approved Duke Energy Indiana's requested forecasted rate base of $10.2 billion as of December 31, 2020, including the Edwardsport Integrated Gasification Combined Cycle (IGCC) Plant. The IURC reduced Duke Energy Indiana's request by slightly more than $200 million, when accounting for the utility receipts tax and other adjustments. Step one rates were estimated to be approximately 75% of the total rate increase and became effective on July 30, 2020. Step two rates estimated to be the remaining 25% of the total rate increase were approved on July 28, 2021, and implemented in August 2021.

Several groups appealed the IURC order to the Indiana Court of Appeals. The Indiana Court of Appeals affirmed the IURC decision on May 13, 2021. However, upon appeal by the Indiana Office of Utility Consumer Counselor (OUCC) and the Duke Industrial Group on March 10, 2022, the Indiana Supreme Court found that the IURC erred in allowing Duke Energy Indiana to recover coal ash costs incurred before the IURC’s rate case order in June 2020. The Indiana Supreme Court found that allowing Duke Energy Indiana to recover coal ash costs incurred between rate cases that exceeded the amount built into base rates violated the prohibition against retroactive ratemaking. The IURC’s order was remanded to the IURC for additional proceedings consistent with the Indiana Supreme Court’s opinion. As a result of the court's opinion, Duke Energy Indiana recognized pretax charges of approximately $211 million to Impairment of assets and other charges and $46 million to Operating revenues in the Consolidated Statements of Operations for the year ended December 31, 2022. Duke Energy Indiana filed a request for rehearing with the Supreme Court on April 11, 2022, which the court denied on May 26, 2022. Duke Energy Indiana filed its testimony in the remand proceeding on August 18, 2022. On February 3, 2023, Duke Energy Indiana filed a settlement agreement reached with the OUCC and Duke Industrial Group, which includes an agreed amount of approximately $70 million of refunds to be paid to customers. The IURC approved this settlement agreement in its entirety on April 12, 2023. In June of 2023, Duke Energy Indiana commenced refunding the approximate $70 million to customers in accordance with the settlement agreement.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Indiana Coal Ash Recovery

In Duke Energy Indiana’s 2019 rate case, the IURC also opened a subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana filed testimony on April 15, 2020, in the coal ash subdocket requesting recovery for the post-2018 coal ash basin closure costs for plans that have been approved by IDEM as well as continuing deferral, with carrying costs, on the balance. On November 3, 2021, the IURC issued an order allowing recovery for post-2018 coal ash basin closure costs for the plans that have been approved by IDEM, as well as continuing deferral, with carrying costs, on the balance. The OUCC and the Duke Industrial Group appealed. The Indiana Court of Appeals issued its opinion on February 21, 2023, reversing the IURC's order to the extent that it allowed Duke Energy Indiana to recover federally mandated costs incurred prior to the IURC's November 3, 2021, order. In addition, the court found that any costs incurred pre-petition to determine federally mandated compliance options were not specifically authorized by the statute and should also be disallowed. As a result of the Indiana Court of Appeals' opinion, Duke Energy Indiana recognized a pretax charge of approximately $175 million to Impairment of assets and other charges for the year ended December 31, 2022.

In the second quarter of 2023, Duke Energy Indiana filed its proposal to remove from rates certain costs incurred prior to the IURC's November 3, 2021, order date. On September 20, 2023, the commission approved the Company's proposal to remove the costs from its rates and assessed simple interest of the refunds of 4.71%, beginning from when the costs were initially recovered from customers. Duke Energy Indiana filed a new petition under the amended version of the federal mandate statute for post-2018 coal ash closure costs for the remaining basins not included in the 2020 Indiana Coal Ash Recovery Case. An evidentiary hearing was held on January 25, 2024. Duke Energy Indiana cannot predict the outcome of this matter.

TDSIC 2.0

On November 23, 2021, Duke Energy Indiana filed for approval of the Transmission, Distribution, Storage Improvement Charge 2.0 investment plan for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without modification, TDSIC 2.0, which includes approximately $2 billion in transmission and distribution investments selected to improve customer reliability, harden and improve resiliency of the grid, enable expansion of renewable and distributed energy projects and encourage economic development. In addition, the IURC set up a subdocket to consider a targeted economic development project, which the IURC approved on March 2, 2022. On July 15, 2022, the OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy Indiana’s TDSIC 2.0 proceeding. An appellant brief was filed on October 28, 2022, and Duke Energy Indiana filed its responsive brief on December 28, 2022. The Indiana Court of Appeals issued its opinion on March 9, 2023, affirming the IURC’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the Indiana Supreme Court. The Indiana Supreme Court granted transfer and held an oral argument on September 28, 2023. Duke Energy Indiana cannot predict the outcome of this matter.

Piedmont

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Piedmont's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2023			2022						a Return			Period Ends
Regulatory Assets**(a)**
AROs – nuclear and other			$	26		$	27								(d)
Accrued pension and OPEB(c)			129			119									(g)
Vacation accrual			13			12									2024
Derivatives – natural gas supply contracts(f)			147			168
Deferred pipeline integrity costs(c)			103			93									2025
Decoupling			75			42						(e)			(b)
Tennessee ARM Deferral			20			3						(e)			(b)
Other			58			47						(e)			(b)
Total regulatory assets			571			511
Less: Current portion			161			119
Total noncurrent regulatory assets			$	410		$	392
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes			$	433		$	459								(b)
COR regulatory liability(c)			555			573									(d)
Other			98			66						(e)			(b)
Total regulatory liabilities			1,086			1,098
Less: Current portion			98			74
Total noncurrent regulatory liabilities			$	988		$	1,024

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Recovery over the life of the associated assets.

(e) Certain costs earn/pay a return.

(f) Balance will fluctuate with changes in the market. Current contracts extend into 2031.

(g) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Tennessee Annual Review Mechanism

On October 10, 2022, the TPUC approved Piedmont’s petition to adopt an ARM as allowed by Tennessee law. Under the ARM, Piedmont will adjust rates annually to achieve its allowed 9.80% ROE over the upcoming year and to true up any variance between its allowed ROE and actual ROE from the prior calendar year. The initial year subject to the true up was 2022, and Piedmont filed the initial rate adjustments request on May 19, 2023, for a total increase of approximately $42 million. On September 11, 2023, the TPUC approved a settlement between Piedmont and the Consumer Advocate Division of the Tennessee Attorney General's Office, which provided for recovery of the Historic Base Period Reconciliation cost of service of $11 million through rider rates and an increase in Piedmont's base rates of $29 million for the Annual Base Rate Reset component of the ARM. These amounts result in a total increase of $40 million with adjusted rates effective October 1, 2023.

OTHER REGULATORY MATTERS

Potential Coal Plant Retirements

The Subsidiary Registrants periodically file IRPs with their state regulatory commissions. The IRPs provide a view of forecasted energy needs over a long term (10 to 20 years) and resources proposed to meet those needs.

IRPs filed by certain Subsidiary Registrants included planning assumptions around future retirement dates of aging coal-fired generating facilities in North Carolina (Duke Energy Carolinas and Duke Energy Progress) and Indiana (Duke Energy Indiana). In North Carolina, the NCUC concluded in its December 2022 Carbon Plan order that the projected retirement dates presented by Duke Energy Carolinas and Duke Energy Progress in their Carbon Plan for coal-fired generating facilities were reasonable for planning purposes and further directed that appropriate steps be taken to optimally retire the coal fleet according to such schedule. Duke Energy Carolinas and Duke Energy Progress filed updated Resource Plans (Carbon Plan and IRP) in August 2023, and a supplemental filing in January 2024. See the "Other Matters" section of Item 7 Management's Discussion and Analysis for further details on IRPs.

Duke Energy continues to evaluate the retirement date assumptions for coal-fired generating facilities as changes in energy usage and/or growth and availability of replacement generation could result in different retirement dates of units than their current estimated useful lives. Except as discussed above related to Duke Energy Kentucky's East Bend plant, rate cases recently filed or approved across all jurisdictions included proposed depreciation rates reflecting the earlier retirement dates as outlined in recent IRPs. Duke Energy plans to seek regulatory recovery for amounts that would not be otherwise recovered when any of these assets are retired.

5. COMMITMENTS AND CONTINGENCIES

INSURANCE

General Insurance

The Duke Energy Registrants have insurance and reinsurance coverage either directly or through indemnification from Duke Energy’s captive insurance company, Bison, and its affiliates, consistent with companies engaged in similar commercial operations with similar type properties. The Duke Energy Registrants’ coverage includes (i) commercial general liability coverage for liabilities arising to third parties for bodily injury and property damage; (ii) workers’ compensation; (iii) automobile liability coverage; and (iv) property coverage for all real and personal property damage. Real and personal property damage coverage excludes electric transmission and distribution lines, but includes damages arising from boiler and machinery breakdowns, earthquakes, flood damage and extra expense, but not outage or replacement power coverage. All coverage is subject to certain deductibles or retentions, sublimits, exclusions, terms and conditions common for companies with similar types of operations. The Duke Energy Registrants self-insure their electric transmission and distribution lines against loss due to storm damage and other natural disasters. As discussed further in Note 4, Duke Energy Florida maintains a storm damage reserve and has a regulatory mechanism to recover the cost of named storms on an expedited basis.

The cost of the Duke Energy Registrants’ coverage can fluctuate from year to year reflecting claims history and conditions of the insurance and reinsurance markets. In the event of a loss, terms and amounts of insurance and reinsurance available might not be adequate to cover claims and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered by other sources, could have a material effect on the Duke Energy Registrants’ results of operations, cash flows or financial position. Each company is responsible to the extent losses may be excluded or exceed limits of the coverage available.

Nuclear Insurance

Duke Energy Carolinas owns and operates McGuire and Oconee and operates and has a partial ownership interest in Catawba. McGuire and Catawba each have two reactors. Oconee has three reactors. The other joint owners of Catawba reimburse Duke Energy Carolinas for certain expenses associated with nuclear insurance per the Catawba joint owner agreements.

Duke Energy Progress owns and operates Robinson, Brunswick and Harris. Robinson and Harris each have one reactor. Brunswick has two reactors.

Duke Energy Florida owns Crystal River Unit 3, which permanently ceased operation in 2013 and achieved a SAFSTOR condition in July 2019. On October 1, 2020, Crystal River Unit 3 changed decommissioning strategies from SAFSTOR to DECON.

In the event of a loss, terms and amounts of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered by other sources, could have a material effect on Duke Energy Carolinas’, Duke Energy Progress’ and Duke Energy Florida’s results of operations, cash flows or financial position. Each company is responsible to the extent losses may be excluded or exceed limits of the coverage available.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

Nuclear Liability Coverage

The Price-Anderson Act requires owners of nuclear reactors to provide for public nuclear liability protection per nuclear incident up to a maximum total financial protection liability. The maximum total financial protection liability, which is approximately $16.2 billion, is subject to change every five years for inflation and for the number of licensed reactors. Total nuclear liability coverage consists of a combination of private primary nuclear liability insurance coverage and a mandatory industry risk-sharing program to provide for excess nuclear liability coverage above the maximum reasonably available private primary coverage. The U.S. Congress could impose revenue-raising measures on the nuclear industry to pay claims.

Primary Liability Insurance

Duke Energy Carolinas and Duke Energy Progress have purchased the maximum reasonably available private primary nuclear liability insurance as required by law, which is $450 million per station. Duke Energy Florida has purchased $100 million primary nuclear liability insurance for Crystal River in compliance with the law.

Excess Liability Program

This program provides $16.2 billion of coverage per incident through the Price-Anderson Act’s mandatory industrywide excess secondary financial protection program of risk pooling. This amount is the product of potential cumulative retrospective premium assessments of $166 million times the current 95 licensed commercial nuclear reactors in the U.S. Under this program, operating unit licensees could be assessed retrospective premiums to compensate for public nuclear liability damages in the event of a nuclear incident at any licensed facility in the U.S. Retrospective premiums may be assessed at a rate not to exceed $24.7 million per year per licensed reactor for each incident. The assessment may be subject to state premium taxes.

Nuclear Property and Accidental Outage Coverage

Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are members of Nuclear Electric Insurance Limited (NEIL), an industry mutual insurance company, which provides property damage, nuclear accident decontamination and premature decommissioning insurance for each station for losses resulting from damage to its nuclear plants, either due to accidents or acts of terrorism. Additionally, NEIL provides accidental outage coverage for losses in the event of a major accidental outage at an insured nuclear station.

Pursuant to regulations of the NRC, each company’s property damage insurance policies provide that all proceeds from such insurance be applied, first, to place the plant in a safe and stable condition after a qualifying accident and second, to decontaminate the plant before any proceeds can be used for decommissioning, plant repair or restoration.

Losses resulting from acts of terrorism are covered as common occurrences, such that if terrorist acts occur against one or more commercial nuclear power plants insured by NEIL within a 12-month period, they would be treated as one event and the owners of the plants where the act occurred would share one full limit of liability. The full limit of liability is currently $3.2 billion. NEIL sublimits the total aggregate for all of their policies for non-nuclear terrorist events to approximately $1.8 billion.

Each nuclear facility has accident property damage, nuclear accident decontamination and premature decommissioning liability insurance from NEIL with limits of $1.5 billion, except for Crystal River Unit 3. Crystal River Unit 3’s limit is $50 million and is on an actual cash value basis. All nuclear facilities except for Catawba and Crystal River Unit 3 also share an additional $1.25 billion nuclear accident insurance limit above their dedicated underlying limit. This shared additional excess limit is not subject to reinstatement in the event of a loss. Catawba has a dedicated $1.25 billion of additional nuclear accident insurance limit above its dedicated underlying limit. Catawba and Oconee also have an additional $750 million of non-nuclear accident property damage limit. All coverages are subject to sublimits and significant deductibles.

NEIL’s Accidental Outage policy provides some coverage, similar to business interruption, for losses in the event of a major accident property damage outage of a nuclear unit. Coverage is provided on a weekly limit basis after a significant waiting period deductible and at 100% of the applicable weekly limits for 52 weeks and 80% of the applicable weekly limits for up to the next 110 weeks. Coverage is provided until these applicable weekly periods are met, where the accidental outage policy limit will not exceed $490 million for Catawba, McGuire and Harris, $462 million for Brunswick and Oconee and $378 million for Robinson. NEIL sublimits the accidental outage recovery up to the first 104 weeks of coverage not to exceed $328 million from non-nuclear accidental property damage. Coverage amounts decrease in the event more than one unit at a station is out of service due to a common accident. All coverages are subject to sublimits and significant deductibles.

Potential Retroactive Premium Assessments

In the event of NEIL losses, NEIL’s board of directors may assess member companies' retroactive premiums of amounts up to 10 times their annual premiums for up to six years after a loss. NEIL has never exercised this assessment. The maximum aggregate annual retrospective premium obligations for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are $147 million, $90 million and $1 million, respectively. Duke Energy Carolinas' maximum assessment amount includes 100% of potential obligations to NEIL for jointly owned reactors. Duke Energy Carolinas would seek reimbursement from the joint owners for their portion of these assessment amounts.

ENVIRONMENTAL

The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all of the Duke Energy Registrants.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

Remediation Activities

In addition to AROs recorded as a result of various environmental regulations, discussed in Note 10, the Duke Energy Registrants are responsible for environmental remediation at various sites. These include certain properties that are part of ongoing operations and sites formerly owned or used by Duke Energy entities. These sites are in various stages of investigation, remediation and monitoring. Managed in conjunction with relevant federal, state and local agencies, remediation activities vary based upon site conditions and location, remediation requirements, complexity and sharing of responsibility. If remediation activities involve joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for environmental impacts caused by other potentially responsible parties and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. Liabilities are recorded when losses become probable and are reasonably estimable. The total costs that may be incurred cannot be estimated because the extent of environmental impact, allocation among potentially responsible parties, remediation alternatives and/or regulatory decisions have not yet been determined at all sites. Additional costs associated with remediation activities are likely to be incurred in the future and could be significant. Costs are typically expensed as Operation, maintenance and other in the Consolidated Statements of Operations unless regulatory recovery of the costs is deemed probable.

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

(in millions)			December 31, 2023						December 31, 2022
Reserves for Environmental Remediation
Duke Energy			$	88					$	84
Duke Energy Carolinas			23						22
Progress Energy			19						19
Duke Energy Progress			9						8
Duke Energy Florida			10						11
Duke Energy Ohio			36						33
Duke Energy Indiana			2						3
Piedmont			7						7

Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation and monitoring for environmental sites that have been evaluated at this time are not material.

LITIGATION

Duke Energy

Texas Storm Uri Tort Litigation

Duke Energy (Parent), several Duke Energy renewables project companies, and others in the ERCOT market were named in multiple lawsuits arising out of Texas Storm Uri, which occurred in February 2021. These lawsuits seek recovery for property damage, personal injury and wrongful death allegedly caused by the power outages that plaintiffs claim were the collective failure of generators including Duke Energy entities, transmission and distribution operators (TDUs), retail energy providers, and all others, including ERCOT. The cases were consolidated into a Texas state court multidistrict litigation (MDL) proceeding for discovery and pre-trial motions. Five MDL cases were designated as lead cases in which motions to dismiss were filed and all other cases were stayed. On January 28, 2023, the Court denied certain motions including those by the generator defendants and TDUs and granted others. The generators and TDUs filed separate petitions for Writ of Mandamus to the Texas Court of Appeals seeking to overturn the denials. The TDUs' petition, filed first, was accepted and oral argument was held on October 23, 2023. In the cases against the generators, Plaintiffs have dismissed the claims against Duke Energy (Parent). However, before Duke Energy (Parent) was dismissed from all cases, on December 14, 2023, without argument, the Court of Appeals accepted mandamus of the generator defendants’ appeal, which includes all Duke Energy entities, and directed the MDL court to dismiss all claims. Plaintiffs filed their Petition for Reconsideration on January 29, 2024. Regardless of the outcome of any motion for reconsideration or appeal, claims against Duke Energy (Parent) will remain dismissed. In October 2023, in conjunction with the closing of the sale of the utility-scale solar and wind group, all but one of the project company lawsuits transferred to Brookfield. Based on legal proceedings to date and applicable insurance and reinsurance coverage, Duke Energy (Parent) does not anticipate any material financial impacts with this remaining case. Duke Energy cannot predict the ultimate outcome of this matter. See Note 2 for more information related to the sale of the Commercial Renewables Disposal Groups.

Duke Energy Carolinas

Ruben Villano, et al. v. Duke Energy Carolinas, LLC

On June 16, 2021, a group of nine individuals went over a low-head dam adjacent to the Dan River Steam Station in Eden, North Carolina, while water tubing. Emergency personnel rescued four people and five others were confirmed deceased. On August 11, 2021, Duke Energy Carolinas was served with the complaint filed in Durham County Superior Court on behalf of four survivors, which was later amended to include all the decedents along with the survivors. The lawsuit alleges that Duke Energy Carolinas knew that the river was used for recreational purposes, did not adequately warn about the dam, and created a dangerous and hidden hazard on the Dan River in building and maintaining the low-head dam. In 2023, Duke Energy Carolinas reached an agreement that resolved this matter. The resolution, which did not have a material financial impact, was approved by the Durham County Superior Court. The case was dismissed on June 6, 2023.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

NTE Carolinas II, LLC Litigation

In November 2017, Duke Energy Carolinas entered into a standard FERC large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC (NTE), a company that proposed to build a combined-cycle natural gas plant in Rockingham County, North Carolina. On September 6, 2019, Duke Energy Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for breach of contract, alleging that NTE's failure to pay benchmark payments for Duke Energy Carolinas' transmission system upgrades required under the interconnection agreement constituted a termination of the interconnection agreement. Duke Energy Carolinas sought a monetary judgment against NTE because NTE failed to make multiple milestone payments. The lawsuit was moved to federal court in North Carolina. NTE filed a motion to dismiss Duke Energy Carolinas’ complaint and brought counterclaims alleging anti-competitive conduct and violations of state and federal statutes. Duke Energy Carolinas filed a motion to dismiss NTE's counterclaims. Both NTE's and Duke Energy Carolinas' motions to dismiss were subsequently denied by the court.

On May 21, 2020, in response to a NTE petition challenging Duke Energy Carolinas' termination of the LGIA, FERC issued a ruling that 1) it has exclusive jurisdiction to determine whether a transmission provider may terminate a LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected to by the interconnection customer; and 3) Duke Energy may not announce the termination of a conforming LGIA unless FERC has approved the termination. FERC's Office of Enforcement also initiated an investigation of Duke Energy Carolinas into matters pertaining to the LGIA. On April 6, 2023, Duke Energy Carolinas received notice from the FERC Office of Enforcement that they have closed their non-public investigation with no further action recommended.

Following completion of discovery, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the court issued an order partially granting Duke Energy Carolinas' motion by dismissing NTE's counterclaims that Duke Energy Carolinas engaged in anti-competitive behavior in violation of state and federal statutes. On October 12, 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation and a Stipulation of Dismissal was filed with the court on October 13, 2022. On November 11, 2022, NTE filed its Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit as to the District Court's summary judgment ruling in Duke Energy Carolinas' favor on NTE's antitrust and unfair competition claims. Briefing on NTE's appeal was completed on June 30, 2023. Oral Argument has been tentatively set for May 7-10, 2024. Duke Energy Carolinas cannot predict the outcome of this matter.

Asbestos-related Injuries and Damages Claims

Duke Energy Carolinas has experienced numerous claims for indemnification and medical cost reimbursement related to asbestos exposure. These claims relate to damages for bodily injuries alleged to have arisen from exposure to or use of asbestos in connection with construction and maintenance activities conducted on its electric generation plants prior to 1985.

Duke Energy Carolinas has recognized asbestos-related reserves of $423 million and $457 million at December 31, 2023, and 2022, respectively. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Consolidated Balance Sheets. These reserves are based upon Duke Energy Carolinas' best estimate for current and future asbestos claims through 2043 and are recorded on an undiscounted basis. In light of the uncertainties inherent in a longer-term forecast, management does not believe they can reasonably estimate the indemnity and medical costs that might be incurred after 2043 related to such potential claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in excess of the recorded reserves.

Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention. Receivables for insurance recoveries were $572 million and $595 million at December 31, 2023, and 2022, respectively. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.

The reserve for credit losses for insurance receivables for the asbestos-related injuries and damages is $9 million as of December 31, 2023, and $12 million as of December 31, 2022, for both Duke Energy and Duke Energy Carolinas. The insurance receivable is evaluated based on the risk of default and the historical losses, current conditions and expected conditions around collectability. Management evaluates the risk of default annually based on payment history, credit rating and changes in the risk of default from credit agencies.

Duke Energy Indiana

Coal Ash Insurance Coverage Litigation

In June 2022, Duke Energy Indiana filed a civil action in Indiana Superior Court against various insurance companies seeking declaratory relief with respect to insurance coverage for CCR-related expenses and liabilities covered by third-party liability insurance policies. The insurance policies cover the 1969-1972 and 1984-1985 periods and provide third-party liability insurance for claims and suits alleging property damage, bodily injury and personal injury (or a combination thereof). A trial date has not yet been set. On June 30, 2023, Duke Energy Indiana and Associated Electric and Gas Insurance Services (AEGIS) reached a confidential settlement, the results of which were not material to Duke Energy, and as a result, AEGIS was dismissed from the litigation on July 13, 2023. On December 11, 2023, Duke Energy Indiana and Munich Reinsurance America, Inc. (formerly known as American Re-Insurance Company) (AmRe) reached a confidential settlement, the results of which were not material, and AmRe was dismissed from the litigation on January 18, 2024. The lawsuit remains pending as to the other insurers, but is stayed until March 31, 2024, to allow for further settlement negotiations with other defendants. Duke Energy Indiana cannot predict the outcome of this matter.

Other Litigation and Legal Proceedings

The Duke Energy Registrants are involved in other legal, tax and regulatory proceedings arising in the ordinary course of business, some of which involve significant amounts. The Duke Energy Registrants believe the final disposition of these proceedings will not have a material effect on their results of operations, cash flows or financial position for the years presented. Reserves are classified on the Consolidated Balance Sheets in Other within Other Noncurrent Liabilities and Other within Current Liabilities.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

OTHER COMMITMENTS AND CONTINGENCIES

General

As part of their normal business, the Duke Energy Registrants are party to various financial guarantees, performance guarantees and other contractual commitments to extend guarantees of credit and other assistance to various subsidiaries, investees and other third parties. These guarantees involve elements of performance and credit risk, which are not fully recognized on the Consolidated Balance Sheets and have uncapped maximum potential payments. However, the Duke Energy Registrants do not believe these guarantees will have a material effect on their results of operations, cash flows or financial position. See Note 8 for more information.

Purchase Obligations

Purchased Power

Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana have ongoing purchased power contracts, including renewable energy contracts, with other utilities, wholesale marketers, co-generators and qualified facilities. These purchased power contracts generally provide for capacity and energy payments. In addition, Duke Energy Progress and Duke Energy Florida have various contracts to secure transmission rights.

The following table presents executory purchased power contracts with terms exceeding one year, excluding contracts classified as leases.

									Minimum Purchase Amount at December 31, 2023
			Contract
(in millions)			Expiration						2024						2025						2026						2027						2028						Thereafter						Total
Duke Energy Progress(a)			2028-2032						$	21					$	22					$	18					$	19					$	19					$	7					$	106
Duke Energy Florida(b)			2025						86						91						—						—						—						—						177
Duke Energy Ohio(c)			2025						153						98						—						—						—						—						251
Duke Energy Indiana(c)			2026						12						20						8						—						—						—						40

(a) Contracts represent between 18% and 100% of net plant output.

(b) Contracts represent 100% of net plant output.

(c) Share of net plant output varies. Duke Energy Ohio excludes PPA with OVEC.

Gas Supply and Capacity Contracts

Duke Energy Ohio and Piedmont routinely enter into long-term natural gas supply commodity and capacity commitments and other agreements that commit future cash flows to acquire services needed in their businesses. These commitments include pipeline and storage capacity contracts and natural gas supply contracts to provide service to customers. Costs arising from the natural gas supply commodity and capacity commitments, while significant, are pass-through costs to customers and are generally fully recoverable through specific fuel rate components operating in conjunction with PGA procedures, and subject to periodic prudence reviews in North Carolina and South Carolina and the Performance Incentive Plan in Tennessee. In the Midwest, these costs are recovered via the Gas Cost Recovery Rate in Ohio or the Gas Cost Adjustment Clause in Kentucky. The time periods for fixed payments under pipeline and storage capacity contracts are up to 19 years. The time periods for fixed payments under natural gas supply contracts is up to two years. The time period for the natural gas supply purchase commitments is up to seven years.

Certain storage and pipeline capacity contracts require the payment of demand charges that are based on rates approved by the FERC in order to maintain rights to access the natural gas storage or pipeline capacity on a firm basis during the contract term. The demand charges that are incurred in each period are recognized in the Consolidated Statements of Operations and Comprehensive Income as part of natural gas purchases and are included in Cost of natural gas.

The following table presents future unconditional purchase obligations under natural gas supply and capacity contracts as of December 31, 2023.

(in millions)			2024			2025			2026			2027			2028			Thereafter			Total
Duke Energy Ohio			$	103		$	87		$	57		$	53		$	51		$	574		$	925
Piedmont			295			287			268			209			186			373			1,618

6. LEASES

As part of its operations, Duke Energy leases certain aircraft, space on communication towers, industrial equipment, fleet vehicles, fuel transportation (barges and railcars), land and office space under various terms and expiration dates. Additionally, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana have finance leases related to firm natural gas pipeline transportation capacity. Duke Energy Progress and Duke Energy Florida have entered into certain PPAs, which are classified as finance and operating leases.

Duke Energy has certain lease agreements, which include variable lease payments that are based on the usage of an asset. These variable lease payments are not included in the measurement of the ROU assets or operating lease liabilities on the Consolidated Financial Statements.

Certain Duke Energy lease agreements include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in any of the lease measurements.

FINANCIAL STATEMENTS			LEASES

Duke Energy Carolinas entered into a sale-leaseback arrangement in December 2019, to construct and occupy an office tower. The lease agreement was evaluated as a sale-leaseback of real estate and it was determined that the transaction did not qualify for sale-leaseback accounting. As a result, the transaction is being accounted for as a financing. For this transaction, Duke Energy Carolinas will continue to record the real estate on the Consolidated Balance Sheets within Property, Plant and Equipment as if it were the legal owner and will continue to recognize depreciation expense over the estimated useful life. In addition, the failed sale-leaseback obligation is reported within Long-Term Debt on the Consolidated Balance Sheets, with the monthly lease payments commencing after the construction phase being split between interest expense and principal pay down of the debt.

Piedmont has certain agreements with Duke Energy Carolinas for the construction and transportation of natural gas pipelines to supply its natural gas plant needs. Piedmont accounts for these pipeline lateral contracts as sales-type leases since the present value of the sum of the lease payments equals the fair value of the assets. These pipeline lateral assets owned by Piedmont had a current net investment basis of $2 million as of December 31, 2023, and 2022, and a long-term net investment basis of $199 million and $201 million as of December 31, 2023, and 2022, respectively. These assets are classified in Other, within Current Assets and Other Noncurrent Assets, respectively, on Piedmont's Consolidated Balance Sheets. Duke Energy Carolinas accounts for the contracts as finance leases. The activity for these contracts is eliminated in consolidation at Duke Energy.

The following tables present the components of lease expense.

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Operating lease expense(a)			$	236					$	41					$	157					$	80					$	77					$	11					$	17					$	2
Short-term lease expense(a)			5						—						2						1						1						—						1						—
Variable lease expense(a)			27						2						22						11						11						—						—						1
Finance lease expense
Amortization of leased assets(b)			160						7						57						35						22						—						—						—
Interest on lease liabilities(c)			46						31						45						43						2						—						1						—
Total finance lease expense			206						38						102						78						24						—						1						—
Total lease expense			$	474					$	81					$	283					$	170					$	113					$	11					$	19					$	3

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Operating lease expense(a)			$	229					$	39					$	153					$	83					$	70					$	10					$	19					$	6
Short-term lease expense(a)			4						—						1						—						1						—						2						—
Variable lease expense(a)			61						(1)						60						37						23						—						—						1
Finance lease expense
Amortization of leased assets(b)			151						6						61						41						20						—						—						—
Interest on lease liabilities(c)			50						32						49						45						4						—						1						—
Total finance lease expense			201						38						110						86						24						—						1						—
Total lease expense			$	495					$	76					$	324					$	206					$	118					$	10					$	22					$	7

(a) Included in Operations, maintenance and other or, for barges and railcars, Fuel used in electric generation and purchased power on the Consolidated Statements of Operations.

(b) Included in Depreciation and amortization on the Consolidated Statements of Operations.

(c) Included in Interest Expense on the Consolidated Statements of Operations.

FINANCIAL STATEMENTS			LEASES

The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
2024			$	244					$	21					$	116					$	56					$	60					$	2					$	7					$	5
2025			214						16						102						42						60						2						7						4
2026			201						15						105						46						59						2						6						1
2027			170						9						79						47						32						2						5						—
2028			136						8						67						47						20						1						4						—
Thereafter			388						41						315						163						152						13						39						—
Total operating lease payments			1,353						110						784						401						383						22						68						10
Less: Present value discount			(248)						(20)						(146)						(63)						(83)						(5)						(16)						—
Total operating lease liabilities(a)			$	1,105					$	90					$	638					$	338					$	300					$	17					$	52					$	10

(a) Certain operating lease payments include renewal options that are reasonably certain to be exercised.

The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.

			December 31, 2023
									Duke												Duke						Duke												Duke
			Duke						Energy						Progress						Energy						Energy												Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida												Indiana
2024			$	157					$	38					$	88					$	79					$	9											$	1
2025			88						38						85						80						5												1
2026			83						38						86						81						5												1
2027			76						38						83						81						2												1
2028			74						38						81						81						—												1
Thereafter			511						389						474						474						—												21
Total finance lease payments			989						579						897						876						21												26
Less: Amounts representing interest			(350)						(302)						(326)						(324)						(2)												(17)
Total finance lease liabilities			$	639					$	277					$	571					$	552					$	19											$	9

The following tables contain additional information related to leases.

						December 31, 2023
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Classification			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Assets
Operating			Operating lease ROU assets, net			$	1,092					$	78					$	617					$	318					$	299					$	16					$	50					$	4
Finance			Net property, plant and equipment			687						268						615						552						63						—						6						—
Total lease assets						$	1,779					$	346					$	1,232					$	870					$	362					$	16					$	56					$	4
Liabilities
Current
Operating			Other current liabilities			$	188					$	15					$	94					$	45					$	49					$	1					$	6					$	—
Finance			Current maturities of long-term debt			115						8						46						38						8						—						—						—
Noncurrent
Operating			Operating lease liabilities			917						75						544						293						251						16						46						10
Finance			Long-Term Debt			524						269						525						514						11						—						9						—
Total lease liabilities						$	1,744					$	367					$	1,209					$	890					$	319					$	17					$	61					$	10

FINANCIAL STATEMENTS			LEASES

						December 31, 2022
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Classification			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Assets
Operating			Operating lease ROU assets, net			$	1,042					$	78					$	628					$	370					$	258					$	18					$	49					$	4
Finance			Net property, plant and equipment			810						284						674						590						84						—						6						—
Total lease assets						$	1,852					$	362					$	1,302					$	960					$	342					$	18					$	55					$	4
Liabilities
Current
Operating			Other current liabilities			$	179					$	14					$	96					$	51					$	45					$	1					$	4					$	—
Finance			Current maturities of long-term debt			153						7						57						35						22						—						—						—
Noncurrent
Operating			Operating lease liabilities			876						83						546						335						211						17						47						13
Finance			Long-Term Debt			611						277						571						552						19						—						9						—
Total lease liabilities						$	1,819					$	381					$	1,270					$	973					$	297					$	18					$	60					$	13

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Cash paid for amounts included in the measurement of lease liabilities**(a)**
Operating cash flows from operating leases			$	228					$	18					$	123					$	64					$	59					$	2					$	7					$	—
Operating cash flows from finance leases			46						31						45						43						2						—						1						—
Financing cash flows from finance leases			160						7						57						35						22						—						—						—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating			$	286					$	14					$	92					$	1					$	91					$	2					$	6					$	2
Finance			36						—						—						—						—						—						—						—

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Cash paid for amounts included in the measurement of lease liabilities**(a)**
Operating cash flows from operating leases			$	230					$	24					$	118					$	63					$	55					$	2					$	6					$	4
Operating cash flows from finance leases			50						32						49						45						4						—						1						—
Financing cash flows from finance leases			151						6						61						41						20						—						—						—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating			$	111					$	10					$	—					$	—					$	—					$	—					$	—					$	—
Finance			—						—						—						—						—						—						—						—

(a) No amounts were classified as investing cash flows from operating leases.

FINANCIAL STATEMENTS			LEASES

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Weighted average remaining lease term (years)
Operating leases			9						10						10						9						11						13						13						4
Finance leases			11						16						11						11						18						—						22						3
Weighted average discount rate**(a)**
Operating leases			3.1		%				4.0		%				3.8		%				3.6		%				4.0		%				4.2		%				3.9		%				2.4		%
Finance leases			8.5		%				11.5		%				9.1		%				9.2		%				7.6		%				—		%				11.9		%				5.4		%

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Weighted average remaining lease term (years)
Operating leases			8						10						8						9						6						15						15						1
Finance leases			10						17						12						12						12						—						23						—
Weighted average discount rate**(a)**
Operating leases			3.4		%				3.8		%				3.6		%				3.5		%				3.8		%				4.2		%				4.0		%				3.3		%
Finance leases			7.7		%				11.5		%				9.1		%				9.1		%				8.0		%				—		%				11.9		%				—		%

(a) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

7. DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize outstanding debt.

			December 31, 2023
			Weighted
			Average									Duke						Duke			Duke			Duke			Duke
			Interest						Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Rate						Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2024-2082			4.36		%				$	30,435		$	1,150		$	1,800		$	—		$	150		$	1,155		$	393		$	3,695
Secured debt, maturing 2024-2052			4.23		%				4,202			1,441			2,379			1,121			1,258			—			—			—
First mortgage bonds, maturing 2025-2073(a)			4.18		%				37,443			12,955			18,550			9,475			9,075			2,300			3,638			—
Finance leases, maturing 2024-2051(b)									639			277			571			552			19			—			9			—
Tax-exempt bonds, maturing 2027-2046(c)			3.89		%				1,331			—			500			500			—			77			352			—
Notes payable and commercial paper(d)			5.58		%				4,925			—			—			—			—			—			—			—
Money pool/intercompany borrowings									—			968			1,193			1,041			152			638			407			538
Fair value hedge carrying value adjustment									32			—			—			—			—			—			—			—
Unamortized debt discount and premium, net(e)									916			(29)			(46)			(24)			(20)			(24)			(16)			(8)
Unamortized debt issuance costs(f)									(383)			(82)			(145)			(60)			(81)			(15)			(25)			(19)
Total debt			4.35		%				$	79,540		$	16,680		$	24,802		$	12,605		$	10,553		$	4,131		$	4,758		$	4,206
Short-term notes payable and commercial paper									(4,288)			—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings									—			(668)			(1,043)			(891)			(152)			(613)			(256)			(538)
Current maturities of long-term debt(g)									(2,800)			(19)			(661)			(72)			(589)			—			(4)			(40)
Total long-term debt(g)									$	72,452		$	15,993		$	23,098		$	11,642		$	9,812		$	3,518		$	4,498		$	3,628

(a)Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b)Duke Energy includes $63 million of finance lease purchase accounting adjustments related to Duke Energy Florida related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c)Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d)Includes $625 million classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 23 days.

(e)Duke Energy includes $992 million and $69 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f)Duke Energy includes $25 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g)Refer to Note 18 for additional information on amounts from consolidated VIEs.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

			December 31, 2022
			Weighted
			Average									Duke						Duke			Duke			Duke			Duke
			Interest						Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Rate						Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2023-2082			4.20		%				$	29,585		$	1,150		$	2,600		$	—		$	950		$	1,330		$	697		$	3,390
Secured debt, maturing 2023-2052			3.70		%				4,116			1,317			2,383			1,155			1,228			—			—			—
First mortgage bonds, maturing 2023-2052(a)			3.89		%				32,645			11,306			16,350			8,776			7,576			1,850			3,138			—
Finance leases, maturing 2024-2051(b)									764			284			628			587			41			—			9			—
Tax-exempt bonds, maturing 2027-2046(c)			3.84		%				1,331			—			500			500			—			77			352			—
Notes payable and commercial paper(d)			4.50		%				4,582			—			—			—			—			—			—			—
Money pool/intercompany borrowings									—			1,533			993			389			605			522			585			514
Fair value hedge carrying value adjustment									(5)			—			—			—			—			—			—			—
Unamortized debt discount and premium, net(e)									1,016			(21)			(40)			(23)			(16)			(25)			(17)			(9)
Unamortized debt issuance costs(f)									(331)			(70)			(132)			(59)			(70)			(12)			(22)			(18)
Total debt			4.07		%				$	73,703		$	15,499		$	23,282		$	11,325		$	10,314		$	3,742		$	4,742		$	3,877
Short-term notes payable and commercial paper									(3,952)			—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings									—			(1,233)			(843)			(238)			(605)			(497)			(435)			(514)
Current maturities of long-term debt(g)									(3,878)			(1,018)			(697)			(369)			(328)			(475)			(303)			(45)
Total long-term debt(g)									$	65,873		$	13,248		$	21,742		$	10,718		$	9,381		$	2,770		$	4,004		$	3,318

(a) Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b) Duke Energy includes $164 million of finance lease purchase accounting adjustments related to Duke Energy Florida related to PPAs that are not accounted for as finance leases in their respective financial statements because of grandfathering provisions in GAAP.

(c) Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(d) Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper programs was 15 days.

(e) Duke Energy includes $1,057 million and $85 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(f) Duke Energy includes $27 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(g) Refer to Note 18 for additional information on amounts from consolidated VIEs.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.

(in millions)			Maturity Date						Interest Rate						December 31, 2023
Unsecured Debt
Duke Energy (Parent) Term Loan Facility(a)			March 2024						6.157		%				1,000
Duke Energy (Parent)			April 2024						3.750		%				1,000
First Mortgage Bonds
Duke Energy Florida(b)			October 2073						4.960		%				200
Other**(c)**															600
Current maturities of long-term debt															$	2,800

(a) Debt has a floating interest rate. In January 2024, Duke Energy (Parent) repaid the Term Loan Facility due March 2024.

(b) While final maturity is October 2073, these first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets beginning December 31, 2023, based on terms of the indenture, which could require repayment in less than 12 months if exercised by the bondholders.

(c) Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

Maturities and Call Options

The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable, commercial paper and money pool borrowings and debt issuance costs for the Subsidiary Registrants.

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy**(a)**						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
2024			$	2,800					$	19					$	664					$	72					$	592					$	—					$	4					$	40
2025			4,177						521						1,040						975						65						245						4						205
2026			4,280						623						345						279						66						45						4						40
2027			2,472						25						797						83						714						77						27						300
2028			4,593						1,276						1,551						737						815						65						157						—
Thereafter			56,375						13,659						19,543						9,652						8,239						3,125						4,347						3,110
Total long-term debt, including current maturities			$	74,697					$	16,123					$	23,940					$	11,798					$	10,491					$	3,557					$	4,543					$	3,695

(a) Excludes $1,086 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.

The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.

Short-Term Obligations Classified as Long-Term Debt

Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long-term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.

			December 31, 2023 and 2022
									Duke						Duke						Duke						Duke
			Duke						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Progress						Ohio						Indiana
Tax-exempt bonds			$	312					$	—					$	—					$	27					$	285
Commercial paper(a)			625						300						150						25						150
Total			$	937					$	300					$	150					$	52					$	435

(a) Progress Energy amounts are equal to Duke Energy Progress amounts.

Summary of Significant Debt Issuances

In January 2024, Duke Energy Corporation issued $1.25 billion of senior unsecured notes. The issuance was split between a $600 million, three-year tranche and a $650 million, five-year tranche, both at a fixed rate of 4.85%. The net proceeds were used to repay Duke Energy (Parent)'s $1 billion Term Loan Facility due March 2024, pay off short-term debt and for general corporate purposes.

In January 2024, Duke Energy Carolinas issued $1 billion of first mortgage bonds. The issuance consisted of a $575 million, 10-year tranche at 4.85% and a $425 million, 30-year tranche at 5.40%. The net proceeds were used to pay off short-term debt and for general company purposes.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

The following tables summarize significant debt issuances (in millions).

															Year Ended December 31, 2023
																					Duke						Duke						Duke						Duke						Duke						Duke
			Maturity						Interest						Duke						Energy						Energy						Energy						Energy						Energy						Energy
Issuance Date			Date						Rate						Energy						(Parent)						Carolinas						Progress						Florida						Ohio						Indiana						Piedmont
Unsecured Debt
April 2023(a)			April 2026						4.125		%				$	1,725					$	1,725					$	—					$	—					$	—					$	—					$	—					$	—
June 2023(b)			June 2033						5.400		%				350						—						—						—						—						—						—						350
September 2023(c)			September 2033						5.750		%				600						600						—						—						—						—						—						—
September 2023(c)			September 2053						6.100		%				750						750						—						—						—						—						—						—
First Mortgage Bonds
January 2023(d)			January 2033						4.950		%				900						—						900						—						—						—						—						—
January 2023(d)			January 2053						5.350		%				900						—						900						—						—						—						—						—
March 2023(e)			March 2033						5.250		%				500						—						—						500						—						—						—						—
March 2023(e)			March 2053						5.350		%				500						—						—						500						—						—						—						—
March 2023(f)			April 2033						5.250		%				375						—						—						—						—						375						—						—
March 2023(f)			April 2053						5.650		%				375						—						—						—						—						375						—						—
March 2023(g)			April 2053						5.400		%				500						—						—						—						—						—						500						—
June 2023(h)			January 2033						4.950		%				350						—						350						—						—						—						—						—
June 2023(h)			January 2054						5.400		%				500						—						500						—						—						—						—						—
September 2023(h)			October 2073						4.960		%				200						—						—						—						200						—						—						—
November 2023(i)			November 2033						5.875		%				600						—						—						—						600						—						—						—
November 2023(i)			November 2053						6.200		%				700						—						—						—						700						—						—						—
Total issuances															$	9,825					$	3,075					$	2,650					$	1,000					$	1,500					$	750					$	500					$	350

(a)See "Duke Energy (Parent) Convertible Senior Notes" below for additional information.

(b)Debt issued to repay $45 million of maturities due October 2023, to pay down a portion of short-term debt and for general corporate purposes.

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

(d)Debt issued to repay $1 billion of maturities due March 2023, to pay down a portion of short-term debt and for general company purposes.

(e)Debt issued to repay $300 million of maturities due September 2023, to pay down a portion of short-term debt and for general company purposes.

(f)Debt issued to repay $300 million of maturities due September 2023, to pay down a portion of the $100 million Duke Energy Ohio Term Loan due October 2023, to repay a portion of short-term debt and for general corporate purposes.

(g)Debt issued to repay the $300 million Duke Energy Indiana Term Loan due October 2023, to pay down a portion of short-term debt and for general company purposes.

(h)Debt issued to pay down a portion of short-term debt and for general company purposes.

(i)Debt issued to repay the $800 million Duke Energy Florida Term Loan due April 2024, to pay down a portion of short-term debt and for general company purposes.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

															Year Ended December 31, 2022
																					Duke						Duke						Duke						Duke
			Maturity						Interest						Duke						Energy						Energy						Energy						Energy
Issuance Date			Date						Rate						Energy						(Parent)						Carolinas						Progress						Florida																		Piedmont
Unsecured Debt
May 2022(a)			May 2052						5.050		%				$	400					$	—					$	—					$	—					$	—																	$	400
June 2022(b)			June 2028						4.750		%				645						645						—						—						—																		—
June 2022(b)			June 2034						5.306		%				537						537						—						—						—																		—
August 2022(c)			March 2028						4.300		%				900						900						—						—						—																		—
August 2022(c)			August 2032						4.500		%				1,150						1,150						—						—						—																		—
August 2022(c)			August 2052						5.000		%				1,150						1,150						—						—																								—
December 2022(c)			December 2025						5.000		%				500						500						—						—						—																		—
December 2022(c)			December 2027						5.000		%				500						500						—						—						—																		—
First Mortgage Bonds
March 2022(d)			March 2032						2.850		%				500						—						500						—						—																		—
March 2022(d)			March 2052						3.550		%				650						—						650						—						—																		—
March 2022(d)			April 2032						3.400		%				500						—						—						500						—																		—
March 2022(d)			April 2052						4.000		%				400						—						—						400						—																		—
November 2022(e)			November 2052						5.950		%				500						—						—						—						500																		—
Tax-exempt Bonds															—						—						—						—																								—
June 2022(f)			September 2030						4.000		%				168						168						—						—						—																		—
June 2022(f)			November 2039						4.250		%				234						234						—						—						—																		—
September 2022(g)			October 2046						3.300		%				200						—						—						200																								—
September 2022(h)			October 2046						3.700		%				210						—						—						210																								—
September 2022(h)			October 2046						4.000		%				42						—						—						42																								—
Total issuances															$	9,186					$	5,784					$	1,150					$	1,352					$	500																	$	400

(a)Debt issued to repay a portion of short-term debt and for general corporate purposes.

(b)Duke Energy (Parent) issued 600 million euros aggregate principal amount of 3.10% senior notes due June 2028 and 500 million euros aggregate principal amount of 3.85% senior notes due June 2034. Debt issued to repay a $500 million debt maturity, pay down a portion of short-term debt and for general corporate purposes. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. See Note 15 for additional information.

(c)Debt issued to repay a portion of short-term debt and for general corporate purposes.

(d)Debt issued to finance or refinance, in whole or in part, existing or new eligible projects under the sustainable financing framework.

(e)Debt issued to repay a portion of short-term debt and for general company purposes.

(f)Debt issued to refund the Ohio Air Quality Development Revenue Refunding bonds, previously held in treasury, which were used to finance or refinance portions of certain solid waste disposal facilities. The mandatory purchase date of these bonds is June 1, 2027.

(g)Debt issued to provide funds to refund the prior bonds, which were used to finance or refinance portions of certain air and water pollution control equipment and solid waste disposal equipment. The mandatory purchase date of these bonds is October 1, 2026.

(h)Debt issued to provide funds to refund the prior bonds, which were used to finance or refinance portions of certain air and water pollution control equipment and solid waste disposal equipment. The mandatory purchase date of these bonds is October 1, 2030.

Duke Energy (Parent) Convertible Senior Notes

In April 2023, Duke Energy (Parent) completed the sale of $1.7 billion 4.125% Convertible Senior Notes due April 2026 (convertible notes). The convertible notes are senior unsecured obligations of Duke Energy, and will mature on April 15, 2026, unless earlier converted or repurchased in accordance with their terms. The convertible notes bear interest at a fixed rate of 4.125% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2023. Proceeds were used to repay a portion of outstanding commercial paper and for general corporate purposes.

Prior to the close of business on the business day immediately preceding January 15, 2026, the convertible notes will be convertible at the option of the holders when the following conditions are met:

• during any calendar quarter commencing after the calendar quarter ending on June 30, 2023, (and only during such calendar quarter) if the last reported sale price of Duke Energy common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

• during the five consecutive business day period after any 10 consecutive trading day period (the measurement period) in which the trading price, as defined, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Duke Energy common stock and the conversion rate on each such trading day; or

• upon the occurrence of specified corporate events described in the indenture agreement.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

On or after January 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the convertible notes may convert all or any portion of their convertible notes at their option at any time at the conversion rate then in effect, irrespective of these conditions. Duke Energy will settle conversions of the convertible notes by paying cash up to the aggregate principal amount of the convertible notes to be converted and paying or delivering, as the case may be, cash, shares of Duke Energy's common stock, $0.001 par value per share, or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the convertible notes being converted.

The conversion rate for the convertible notes is initially 8.4131 shares of Duke Energy's common stock per $1,000 principal amount of convertible notes. The initial conversion price of the convertible notes represents a premium of approximately 25% over the last reported sale price of Duke Energy’s common stock on the NYSE on April 3, 2023. The conversion rate and the corresponding conversion price will not be adjusted for any accrued and unpaid interest but will be subject to adjustment in some instances, such as stock splits or share combinations, certain distributions to common stockholders, or tender offers at off-market rates. The changes in the conversion rates are intended to make convertible note holders whole for changes in the fair value of Duke Energy common stock resulting from such events. Duke Energy may not redeem the convertible notes prior to the maturity date.

Duke Energy issued the convertible notes pursuant to an indenture, dated as of April 6, 2023, by and between Duke Energy and The Bank of New York Mellon Trust Company, N.A., as trustee. The terms of the convertible notes include customary fundamental change provisions that require repayment of the notes with interest upon certain events, such as a stockholder approved plan of liquidation or if Duke Energy's common stock ceases to be listed on the NYSE.

AVAILABLE CREDIT FACILITIES

Master Credit Facility

In March 2023, Duke Energy amended its existing Master Credit Facility of $9 billion to extend the termination date to March 2028. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. An amendment in conjunction with the issuance of the Convertible Senior Notes due April 2026 clarifies that payments due as a result of a conversion of a convertible note would not constitute an event of default.

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

			December 31, 2023
									Duke						Duke						Duke						Duke						Duke						Duke
			Duke						Energy						Energy						Energy						Energy						Energy						Energy
(in millions)			Energy						(Parent)						Carolinas						Progress						Florida						Ohio						Indiana						Piedmont
Facility size(a)			$	9,000					$	2,275					$	1,575					$	1,400					$	950					$	1,050					$	950					$	800
Reduction to backstop issuances
Commercial paper(b)			(3,941)						(198)						(968)						(1,041)						(152)						(638)						(406)						(538)
Outstanding letters of credit			(39)						(27)						(4)						(1)						(7)						—						—						—
Tax-exempt bonds			(81)						—						—						—						—						—						(81)						—
Available capacity			$	4,939					$	2,050					$	603					$	358					$	791					$	412					$	463					$	262

(a) Represents the sublimit of each borrower.

(b) Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.

Duke Energy (Parent) Term Loan Facility

In March 2022, Duke Energy (Parent) entered into a Term Loan Credit Facility (facility) with commitments totaling $1.4 billion maturing March 2024. Borrowings under the facility were used to repay amounts drawn under the Three-Year Revolving Credit Facility and for general corporate purposes, including repayment of a portion of Duke Energy's outstanding commercial paper. The Three-Year Revolving Credit Facility was terminated in March 2022. In December 2022, Duke Energy (Parent) repaid $400 million of the facility. In January 2024, Duke Energy (Parent) repaid the remaining $1 billion outstanding on the facility, which was classified as Current maturities of long-term debt on Duke Energy's Consolidated Balance Sheets as of December 31, 2023.

Other Debt Matters

In September 2022, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities, including preferred stock, in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common and preferred stock by Duke Energy.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

Also in September 2022, to replace another similar prior filing, Duke Energy filed an effective Form S-3 with the SEC to sell up to $4 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $2 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2023, and 2022, was $985 million and $897 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets.

Money Pool and Intercompany Credit Agreements

The Subsidiary Registrants, excluding Progress Energy, are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy, separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent) 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 subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.

In March 2022, Progress Energy closed a revolving credit agreement with Duke Energy (Parent), which allowed up to $2.5 billion in intercompany borrowings.

Restrictive Debt Covenants

The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65% for each borrower, excluding Piedmont, and 70% for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2023, each of the Duke Energy Registrants were in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses.

Other Loans

As of December 31, 2023, and 2022, Duke Energy had loans outstanding of $873 million, including $32 million at Duke Energy Progress and $852 million, including $33 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

8. GUARANTEES AND INDEMNIFICATIONS

Duke Energy has various financial and performance guarantees and indemnifications with non-consolidated entities, which are issued in the normal course of business. As discussed below, these contracts include performance guarantees, standby letters of credit, debt guarantees and indemnifications and include guarantees and indemnifications related to Commercial Renewables Disposal Groups as described in Note 2. Duke Energy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. At December 31, 2023, Duke Energy does not believe conditions are likely for significant performance under these guarantees. To the extent liabilities are incurred as a result of the activities covered by the guarantees, such liabilities are included on the accompanying Consolidated Balance Sheets.

On January 2, 2007, Duke Energy completed the spin-off of its previously wholly owned natural gas businesses to shareholders. Guarantees issued by Duke Energy or its affiliates, or assigned to Duke Energy prior to the spin-off, remained with Duke Energy subsequent to the spin-off. Guarantees issued by Spectra Energy Capital, LLC (Spectra Capital) or its affiliates prior to the spin-off remained with Spectra Capital subsequent to the spin-off, except for guarantees that were later assigned to Duke Energy. Duke Energy has indemnified Spectra Capital against any losses incurred under certain of the guarantee obligations that remain with Spectra Capital. At December 31, 2023, the maximum potential amount of future payments associated with these guarantees were $33 million, the majority of which expire by 2028.

In October 2017, ACP executed a $3.4 billion revolving credit facility with a stated maturity date of October 2021. Duke Energy entered into a guarantee agreement to support its share of the ACP revolving credit facility. In July 2020, ACP reduced the size of the credit facility to $1.9 billion. Duke Energy's maximum exposure to loss under the terms of the guarantee was $860 million as of December 31, 2020. This amount represented 47% of the outstanding borrowings under the credit facility and was recognized within Other Current Liabilities on the Consolidated Balance Sheets at December 31, 2020, of which $95 million was previously recognized due the adoption of new guidance for credit losses effective January 1, 2020. In February 2021, Duke Energy paid approximately $855 million to fund ACP's outstanding debt, relieving Duke Energy of its guarantee.

In addition to the Spectra Capital and ACP revolving credit facility guarantees above, Duke Energy has issued performance guarantees to customers and other third parties that guarantee the payment and performance of other parties, including certain non-wholly owned entities, as well as guarantees of debt of certain non-consolidated entities. If such entities were to default on payments or performance, Duke Energy would be required under the guarantees to make payments on the obligations of these entities. The maximum potential amount of future payments required under these guarantees as of December 31, 2023, was $26 million of which all expire between 2024 and 2030, with the remaining performance guarantees having no contractual expiration. Additionally, certain guarantees have uncapped maximum potential payments; however, Duke Energy does not believe these guarantees will have a material effect on its results of operations, cash flows or financial position.

FINANCIAL STATEMENTS			GUARANTEES AND INDEMNIFICATIONS

Duke Energy uses bank-issued standby letters of credit to secure the performance of wholly owned and non-wholly owned entities to a third party or customer. Under these arrangements, Duke Energy has payment obligations to the issuing bank that are triggered by a draw by the third party or customer due to the failure of the wholly owned or non-wholly owned entity to perform according to the terms of its underlying contract. At December 31, 2023, Duke Energy had issued a total of $411 million in letters of credit, which expire between 2024 and 2026. There are no unused amounts under these letters of credit.

Duke Energy recognized $2 million as of both December 31, 2023, and 2022, in Other within Other Noncurrent Liabilities on the Consolidated Balance Sheets, for the guarantees discussed above. As current estimates change, additional losses related to guarantees and indemnifications to third parties, which could be material, may be recorded by the Duke Energy Registrants in the future.

9. JOINT OWNERSHIP OF GENERATING AND TRANSMISSION FACILITIES

The Duke Energy Registrants maintain ownership interests in certain jointly owned generating and transmission facilities and are entitled to a share of the generating capacity and output of each unit equal to their respective ownership interests. The Duke Energy Registrants pay their ownership share of additional construction costs, fuel inventory purchases and operating expenses. The Duke Energy Registrants share of revenues and operating costs of the jointly owned facilities is included within the corresponding line in the Consolidated Statements of Operations. Each participant in the jointly owned facilities must provide its own financing.

The following table presents the Duke Energy Registrants' interest of jointly owned plant or facilities and amounts included on the Consolidated Balance Sheets. All facilities are operated by the Duke Energy Registrants and are included in the EU&I segment.

			December 31, 2023
																					Construction
			Ownership						Property, Plant						Accumulated						Work in
(in millions except for ownership interest)			Interest						and Equipment						Depreciation						Progress
Duke Energy Carolinas
Catawba (units 1 and 2)(a)			19.25		%				$	976					$	559					$	42
W.S. Lee CC(b)			87.27		%				654						98						2
Duke Energy Indiana
Gibson (unit 5)(c)			50.05		%				460						263						4
Vermillion(d)			62.50		%				183						119						—
Transmission and local facilities(c)			Various						7,252						1,578						180

(a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.

(b) Jointly owned with NCEMC.

(c) Jointly owned with WVPA and IMPA.

(d) Jointly owned with WVPA.

10. ASSET RETIREMENT OBLIGATIONS

Duke Energy records an ARO when it has a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Certain assets of the Duke Energy Registrants have an indeterminate life, such as transmission and distribution facilities, and thus the fair value of the retirement obligation is not reasonably estimable. A liability for these AROs will be recorded when a fair value is determinable.

The Duke Energy Registrants’ regulated operations accrue costs of removal for property that does not have an associated legal retirement obligation based on regulatory orders from state commissions. These costs of removal are recorded as a regulatory liability in accordance with regulatory accounting treatment. The amount spent may be higher than the amount accrued and result in a net asset. See Note 4 for the estimated cost of removal for assets without an associated legal retirement obligation, which are included in Regulatory liabilities on the Consolidated Balance Sheets.

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

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Decommissioning of nuclear power facilities			$	4,576					$	1,949					$	2,601					$	2,410					$	191					$	—					$	—					$	—
Closure of ash impoundments			4,313						2,010						1,449						1,427						21						73						781						—
Other			267						54						95						33						63						63						28						26
Total asset retirement obligation			$	9,156					$	4,013					$	4,145					$	3,870					$	275					$	136					$	809					$	26
Less: Current portion			596						224						245						244						1						6						120						—
Total noncurrent asset retirement obligation			$	8,560					$	3,789					$	3,900					$	3,626					$	274					$	130					$	689					$	26

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

Nuclear Decommissioning Liability

AROs related to nuclear decommissioning are based on site-specific cost studies. The NCUC and the PSCSC require Duke Energy Carolinas and Duke Energy Progress update cost estimates for decommissioning their nuclear plants every five years. The nuclear decommissioning liabilities are assessed and updated based on changes in cash flows provided in new studies as well as annual assessments to evaluate whether any indicators suggest a change in the estimate of the ARO is necessary.

The following table summarizes information about the most recent site-specific nuclear decommissioning cost studies. Decommissioning costs are stated in 2023 or 2019 dollars, depending on the year of the cost study, and include costs to decommission plant components not subject to radioactive contamination.

			Annual Funding						Decommissioning
(in millions)			Requirement**(a)**						Costs**(a)**						Year of Cost Study
Duke Energy			$	4					$	8,814					2023 or 2019
Duke Energy Carolinas(b)(c)			—						4,439						2023
Duke Energy Progress(d)			4						4,181						2019
Duke Energy Florida(e)			—						194						N/A

(a) Amount represents annual funding requirement for the current fiscal year. Amounts for Progress Energy equal the sum of Duke Energy Progress and Duke Energy Florida.

(b) Decommissioning costs for Duke Energy Carolinas reflects its ownership interest in jointly owned reactors. Other joint owners are responsible for decommissioning costs related to their interest in the reactors.

(c) Duke Energy Carolinas' site-specific nuclear decommissioning cost study completed in 2023 was filed with the NCUC and PSCSC in 2024. A funding study was last completed and filed in 2019. An updated funding study will be completed and filed with the NCUC and PSCSC in 2024.

(d) Duke Energy Progress' site-specific nuclear decommissioning cost study completed in 2019 was filed with the NCUC and PSCSC in March 2020. Duke Energy Progress also completed a funding study, which was filed with the NCUC and PSCSC in July 2020. In October 2021, Duke Energy Progress filed the 2019 nuclear decommissioning cost study with the FERC, as well as a revised rate schedule for decommissioning expense to be collected from wholesale customers. The FERC accepted the filing, as filed on December 9, 2021.

(e) During 2019, Duke Energy Florida reached an agreement to transfer decommissioning work for Crystal River Unit 3 to a third party and decommissioning costs are based on the agreement with this third party rather than a cost study. Regulatory approval was received from the NRC and the FPSC in April 2020 and August 2020, respectively. Duke Energy Florida provides the FPSC periodic reports on the status and progress of decommissioning activities.

Nuclear Decommissioning Trust Funds

Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida each maintain NDTFs that are intended to pay for the decommissioning costs of their respective nuclear power plants. The NDTF investments are managed and invested in accordance with applicable requirements of various regulatory bodies including the NRC, FERC, NCUC, PSCSC, FPSC and the IRS.

Use of the NDTF investments is restricted to nuclear decommissioning activities including license termination, spent fuel and site restoration. The license termination and spent fuel obligations relate to contaminated decommissioning and are recorded as AROs. The site restoration obligation relates to non-contaminated decommissioning and is recorded to cost of removal within Regulatory liabilities on the Consolidated Balance Sheets.

The following table presents the fair value of NDTF assets legally restricted for purposes of settling AROs associated with nuclear decommissioning. Duke Energy Florida entered into an agreement with a third party to decommission Crystal River Unit 3 and was granted an exemption from the NRC, which allows for use of the NDTF for all aspects of nuclear decommissioning. The entire balance of Duke Energy Florida's NDTF may be applied toward license termination, spent fuel and site restoration costs incurred to decommission Crystal River Unit 3 and is excluded from the table below. See Note 17 for additional information related to the fair value of the Duke Energy Registrants' NDTFs.

			December 31,
(in millions)			2023						2022
Duke Energy			$	8,851					$	7,466
Duke Energy Carolinas			5,002						4,208
Duke Energy Progress			3,849						3,258

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

Nuclear Operating Licenses

As described in Note 4, Duke Energy Carolinas and Duke Energy Progress intend to seek renewal of operating licenses and 20-year license extensions for all of their nuclear stations. The following table includes the current expiration of nuclear operating licenses.

Unit			Year of Expiration
Duke Energy Carolinas
Catawba Units 1 and 2			2043
McGuire Unit 1			2041
McGuire Unit 2			2043
Oconee Units 1 and 2			2033
Oconee Unit 3			2034
Duke Energy Progress
Brunswick Unit 1			2036
Brunswick Unit 2			2034
Harris			2046
Robinson			2030

The NRC has acknowledged permanent cessation of operation and permanent removal of fuel from the reactor vessel at Crystal River Unit 3. Therefore, the license no longer authorizes operation of the reactor. During 2019, Duke Energy Florida entered into an agreement for the accelerated decommissioning of Crystal River Unit 3. Regulatory approval was received from the NRC and the FPSC in April 2020 and August 2020, respectively. See Note 4 for more information.

Closure of Ash Impoundments

The Duke Energy Registrants are subject to state and federal regulations covering the closure of coal ash impoundments, including the EPA CCR Rule and the Coal Ash Act, and other agreements. AROs recorded on the Duke Energy Registrants' Consolidated Balance Sheets include the legal obligation for closure of coal ash basins and the disposal of related ash as a result of these regulations and agreements.

The ARO amount recorded on the Consolidated Balance Sheets is based upon estimated closure costs for impacted ash impoundments. The amount recorded represents the discounted cash flows for estimated closure costs based upon specific closure plans. Actual costs to be incurred will be dependent upon factors that vary from site to site. The most significant factors are the method and time frame of closure at the individual sites. Closure methods considered include removing the water from ash basins, consolidating material as necessary and capping the ash with a synthetic barrier, excavating and relocating the ash to a lined structural fill or lined landfill or recycling the ash for concrete or some other beneficial use. The ultimate method and timetable for closure will be in compliance with standards set by federal and state regulations and other agreements. The ARO amount will be adjusted as additional information is gained through the closure and post-closure process, including acceptance and approval of compliance approaches, which may change management assumptions, and may result in a material change to the balance. See ARO Liability Rollforward section below for information on revisions made to the coal ash liability during 2023 and 2022.

Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets, respectively, on the Consolidated Balance Sheets. See Note 4 for additional information on Regulatory assets related to AROs and Note 5 for additional information on commitments and contingencies.

Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of necessary and prudently incurred costs associated with Duke Energy’s regulated operations. See Note 4 for additional information on recovery of coal ash costs.

ARO Liability Rollforward

The following tables present changes in the liability associated with AROs.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Balance at December 31, 2021			$	12,600					$	5,301					$	6,112					$	5,675					$	437					$	136					$	987					$	22
Accretion expense(a)			501						242						229						215						14						6						30						1
Liabilities settled(b)			(680)						(234)						(334)						(228)						(106)						(13)						(98)						—
Liabilities incurred in the current year			22						—						18						—						18						—						5						—
Revisions in estimates of cash flows(c)			285						73						156						161						(5)						25						27						3
Balance at December 31, 2022			12,728						5,382						6,181						5,823						358						154						951						26
Accretion expense(a)			523						254						237						225						12						7						33						1
Liabilities settled(b)			(758)						(256)						(379)						(292)						(87)						(15)						(108)						—
Liabilities incurred in the current year			29						3						21						6						15						1						4						—
Revisions in estimates of cash flows(c)			(3,366)						(1,370)						(1,915)						(1,892)						(23)						(11)						(71)						(1)
Balance at December 31, 2023			$	9,156					$	4,013					$	4,145					$	3,870					$	275					$	136					$	809					$	26

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

(a) Substantially all accretion expense for the years ended December 31, 2023, and 2022, relates to Duke Energy’s regulated operations and has been deferred in accordance with regulatory accounting treatment.

(b) Amounts primarily relate to ash impoundment closures and nuclear decommissioning.

(c) The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases in 2022 primarily relate to higher unit costs associated with basin closure and routine maintenance. The decreases in 2023 primarily relate to lower discounted cash flows for decommissioning the nuclear power facilities due to changes in estimates and economic assumptions including discount rates, cost escalation rates and cash flow timing, as well as lower unit costs associated with basin closure, routine maintenance and beneficiation activities, as well as reduction in monitoring wells needed.

11. PROPERTY, PLANT AND EQUIPMENT

The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.

			December 31, 2023
			Average
			Remaining												Duke												Duke						Duke						Duke						Duke
			Useful Life						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			(Years)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Land									$	2,345					$	581					$	1,012					$	502					$	510					$	242					$	133					$	352
Plant – Regulated
Electric generation, distribution and transmission			40						129,985						48,107						57,436						33,171						24,265						7,243						17,199						—
Natural gas transmission and distribution			57						14,130						—						—						—						—						3,993						—						10,137
Other buildings and improvements			42						2,887						1,213						677						377						300						421						355						221
Nuclear fuel									3,303						1,866						1,437						1,437						—						—						—						—
Equipment			14						3,409						870						1,104						654						450						474						442						143
Construction in process									8,372						2,578						3,941						1,661						2,280						427						427						690
Other			12						6,920						1,455						2,037						1,481						548						410						344						363
Total property, plant and equipment(a)									171,351						56,670						67,644						39,283						28,353						13,210						18,900						11,906
Total accumulated depreciation – regulated(b)(c)									(54,323)						(19,896)						(22,300)						(15,227)						(7,067)						(3,451)						(6,501)						(2,259)
Total accumulated depreciation – other(d)									(1,715)						—						—						—						—						—						—						—
Facilities to be retired, net									2						—						—						—						—						—						—						2
Total net property, plant and equipment									$	115,315					$	36,774					$	45,344					$	24,056					$	21,286					$	9,759					$	12,399					$	9,649

(a) Includes finance leases of $697 million, $335 million, $615 million, $552 million, $63 million and $10 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $292 million, $119 million and $173 million, respectively, of accumulated amortization of finance leases.

(b) Includes $1,793 million, $991 million, $802 million and $802 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(c) Includes accumulated amortization of finance leases of $3 million, $67 million and $4 million at Duke Energy, Duke Energy Carolinas and Duke Energy Indiana, respectively.

(d) Includes accumulated amortization of finance leases of $7 million at Duke Energy.

FINANCIAL STATEMENTS			PROPERTY, PLANT AND EQUIPMENT

			December 31, 2022
			Average
			Remaining												Duke												Duke						Duke						Duke						Duke
			Useful Life						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			(Years)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Land									$	2,232					$	565					$	993					$	496					$	497					$	230					$	124					$	295
Plant – Regulated
Electric generation, distribution and transmission			39						126,016						46,640						55,872						33,336						22,536						6,900						16,604						—
Natural gas transmission and distribution			56						13,174						—						—						—						—						3,773						—						9,401
Other buildings and improvements			40						2,537						973						647						341						306						398						336						183
Nuclear fuel									3,081						1,723						1,358						1,358						—						—						—						—
Equipment			13						2,959						710						936						567						369						441						356						125
Construction in process									7,381						2,671						3,073						1,317						1,756						375						381						478
Other			13						6,459						1,368						1,943						1,460						476						380						320						387
Total property, plant and equipment(a)									163,839						54,650						64,822						38,875						25,940						12,497						18,121						10,869
Total accumulated depreciation – regulated(b)(c)									(50,544)						(18,669)						(20,584)						(14,201)						(6,377)						(3,250)						(6,021)						(2,081)
Total accumulated depreciation – other(d)									(1,556)						—						—						—						—						—						—						—
Facilities to be retired, net									9						—						—						—						—						—						—						9
Total net property, plant and equipment									$	111,748					$	35,981					$	44,238					$	24,674					$	19,563					$	9,247					$	12,100					$	8,797

(a) Includes finance leases of $816 million, $335 million, $674 million, $590 million, $84 million, and $10 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $233 million, $81 million and $152 million, respectively, of accumulated amortization of finance leases.

(b) Includes $1,683 million, $934 million, $749 million and $749 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(c) Includes accumulated amortization of finance leases of $7 million, $51 million, and $4 million at Duke Energy, Duke Energy Carolinas and Duke Energy Indiana, respectively.

(d) Includes accumulated amortization of finance leases of ($1 million) at Duke Energy.

Duke Energy has continued to execute on its business transformation strategy, including the evaluation of in-office work policies considering the experience with the COVID-19 pandemic and also workforce realignment of roles and responsibilities. In May 2021, Duke Energy management approved the sale of certain properties and entered into an agreement to exit certain leased space on December 31, 2021. The sale of the properties was subject to abandonment accounting and resulted in an impairment charge. Additionally, the exit of the leased space resulted in the impairment of related furniture, fixtures and equipment. During the year ended December 31, 2021, Duke Energy recorded a pretax charge to earnings of $192 million on the Consolidated Statements of Operations, which includes $133 million within Impairment of assets and other charges, $42 million within Operations, maintenance and other and $17 million within Depreciation and amortization.

The following table presents capitalized interest, which includes the debt component of AFUDC.

			Years Ended December 31,
(in millions)			2023						2022						2021
Duke Energy			$	201					$	118					$	66
Duke Energy Carolinas			62						50						29
Progress Energy			41						26						20
Duke Energy Progress			35						19						14
Duke Energy Florida			6						7						6
Duke Energy Ohio			16						14						20
Duke Energy Indiana(a)			21						3						(17)
Piedmont			8						4						9

(a) In 2021, Duke Energy Indiana is primarily compromised of ($24 million) of PISCC amortization, which is partially offset by $7 million of the debt component of AFUDC.

FINANCIAL STATEMENTS			GOODWILL AND INTANGIBLE ASSETS

12. GOODWILL AND INTANGIBLE ASSETS

GOODWILL

Duke Energy

Duke Energy's Goodwill balance of $19.3 billion is allocated $17.4 billion to EU&I and $1.9 billion to GU&I on Duke Energy's Consolidated Balance Sheets at December 31, 2023, and 2022. There are no accumulated impairment charges.

Duke Energy Ohio

Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to EU&I and $324 million to GU&I, is presented net of accumulated impairment charges of $216 million on the Consolidated Balance Sheets at December 31, 2023, and 2022.

Progress Energy

Progress Energy's Goodwill is included in the EU&I segment and there are no accumulated impairment charges.

Piedmont

Piedmont's Goodwill is included in the GU&I segment and there are no accumulated impairment charges.

Goodwill Impairment Testing

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

INTANGIBLE ASSETS

The following tables show the carrying amount and accumulated amortization of intangible assets included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2023, and 2022.

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Emission allowances			$	8					$	—					$	5					$	2					$	3					$	—					$	2					$	—
Renewable energy certificates			232						97						133						133						—						2						—						—
Other			56						—						5						1						3						—						—						22
Total gross carrying amounts			296						97						143						136						6						2						2						22
Accumulated amortization – other			(14)						—						(3)						—						(3)						—						—						(6)
Total intangible assets, net			$	282					$	97					$	140					$	136					$	3					$	2					$	2					$	16

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Emission allowances			$	8					$	—					$	5					$	2					$	3					$	—					$	2					$	—
Renewable energy certificates			210						84						124						124						—						2						—						—
Other			55						—						4						1						3						—						—						22
Total gross carrying amounts			273						84						133						127						6						2						2						22
Accumulated amortization – other			(8)						—						(1)						—						(1)						—						—						(2)
Total intangible assets, net			$	265					$	84					$	132					$	127					$	5					$	2					$	2					$	20

Amortization Expense

Amortization expense amounts for other intangible assets are immaterial for the years ended December 31, 2023, 2022 and 2021, and are expected to be immaterial for the next five years as of December 31, 2023.

13. INVESTMENTS IN UNCONSOLIDATED AFFILIATES

EQUITY METHOD INVESTMENTS

Investments in affiliates that are not controlled by Duke Energy, but over which it has significant influence, are accounted for using the equity method.

FINANCIAL STATEMENTS			INVESTMENTS IN UNCONSOLIDATED AFFILIATES

The following table presents Duke Energy’s investments in unconsolidated affiliates accounted for under the equity method, as well as the respective equity in earnings, by segment, for periods presented in this filing.

			Years Ended December 31,
			2023												2022																		2021
									Equity in												Equity in												Equity in
(in millions)			Investments						earnings						Investments						earnings												earnings
Electric Utilities and Infrastructure			$	97					$	7					$	99					$	7											$	7
Gas Utilities and Infrastructure			259						40						240						21												8
Other			136						66						116						85												47
Total			$	492					$	113					$	455					$	113											$	62

During the years ended December 31, 2023, 2022 and 2021, Duke Energy received distributions from equity investments of $50 million, $111 million and $56 million, respectively, which are included in Other assets within Cash Flows from Operating Activities on the Consolidated Statements of Cash Flows. During the years ended December 31, 2023, 2022 and 2021, Duke Energy received distributions from equity investments of $16 million, $6 million and $14 million, respectively, which are included in Return of investment capital within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows.

During the years ended December 31, 2023, 2022 and 2021, Piedmont received distributions from equity investments of $9 million, $31 million and $8 million, respectively, which are included in Other assets within Cash Flows from Operating Activities. During the years ended December 31, 2023, and 2021, Piedmont received distributions from equity investments of $1 million and $2 million, respectively, which are included within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows. Amounts received during the year ended December 31, 2022, included in Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows were immaterial.

Significant investments in affiliates accounted for under the equity method are discussed below.

Electric Utilities and Infrastructure

Duke Energy owns 50% interests in both DATC and Pioneer, which build, own and operate electric transmission facilities in North America.

Gas Utilities and Infrastructure

Pipeline Investments

Piedmont owns a 21.49% investment in Cardinal, an intrastate pipeline located in North Carolina.

Duke Energy owns a 7.5% interest in Sabal Trail, a 517-mile interstate natural gas pipeline, which provides natural gas to Duke Energy Florida and Florida Power and Light.

Storage Facilities

Piedmont owns a 45% interest in Pine Needle, an interstate LNG storage facility located in North Carolina, and a 50% interest in Hardy Storage, an underground interstate natural gas storage facility located in West Virginia.

Renewable Natural Gas Investments

Duke Energy owns a 29.68% investment in SustainRNG, a developer of renewable natural gas projects, a 70% interest in Sustain T&W, SustainRNG's renewable natural gas project located in Georgia, and a 70% interest in Sustain Liberty, SustainRNG's renewable natural gas project located in North Carolina.

Other

Duke Energy has a 17.5% indirect economic ownership interest and a 25% board representation and voting rights interest in NMC, which owns and operates a methanol and MTBE business in Jubail, Saudi Arabia.

FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

14. RELATED PARTY TRANSACTIONS

The Subsidiary Registrants engage in related party transactions in accordance with the applicable state and federal commission regulations. Refer to the Consolidated Balance Sheets of the Subsidiary Registrants for balances due to or due from related parties. Material amounts related to transactions with related parties included in the Consolidated Statements of Operations and Comprehensive Income are presented in the following table.

			Years Ended December 31,
(in millions)			2023						2022						2021
Duke Energy Carolinas
Corporate governance and shared service expenses(a)			$	823					$	838					$	894
Indemnification coverages(b)			34						28						24
JDA revenue(c)			34						109						41
JDA expense(c)			177						600						207
Intercompany natural gas purchases(d)			11						12						11
Progress Energy
Corporate governance and shared service expenses(a)			$	736					$	818					$	856
Indemnification coverages(b)			47						43						41
JDA revenue(c)			177						600						207
JDA expense(c)			34						109						41
Intercompany natural gas purchases(d)			75						76						75
Duke Energy Progress
Corporate governance and shared service expenses(a)			$	434					$	469					$	504
Indemnification coverages(b)			20						20						19
JDA revenue(c)			177						600						207
JDA expense(c)			34						109						41
Intercompany natural gas purchases(d)			75						76						75
Duke Energy Florida
Corporate governance and shared service expenses(a)			$	302					$	349					$	352
Indemnification coverages(b)			27						23						22
Duke Energy Ohio
Corporate governance and shared service expenses(a)			$	294					$	334					$	329
Indemnification coverages(b)			5						5						4
Duke Energy Indiana
Corporate governance and shared service expenses(a)			$	365					$	447					$	409
Indemnification coverages(b)			8						8						8
Piedmont
Corporate governance and shared service expenses(a)			$	149					$	155					$	139
Indemnification coverages(b)			4						3						3
Intercompany natural gas sales(d)			86						88						86
Natural gas storage and transportation costs(e)			24						23						22

(a)The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Consolidated Statements of Operations and Comprehensive Income.

(b)The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Consolidated Statements of Operations and Comprehensive Income.

(c)Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Consolidated Statements of Operations and Comprehensive Income.

(d)Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating Revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Consolidated Statements of Operations and Comprehensive Income. These intercompany revenues and expenses are eliminated in consolidation.

(e)Piedmont has related party transactions as a customer of its equity method investments in Pine Needle, Hardy Storage, and Cardinal natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Consolidated Statements of Operations and Comprehensive Income.

FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions and their proportionate share of certain charged expenses. See Note 7 for more information regarding money pool. These transactions of the Subsidiary Registrants are incurred in the ordinary course of business and are eliminated in consolidation.

As discussed in Note 18, certain trade receivables have been sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price.

Intercompany Income Taxes

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

			Duke						Duke			Duke			Duke			Duke
			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
December 31, 2023
Intercompany income tax receivable			$	—		$	—		$	—		$	—		$	91		$	53		$	—
Intercompany income tax payable			81			92			94			114			—			—			57
December 31, 2022
Intercompany income tax receivable			$	—		$	95		$	36		$	17		$	—		$	—		$	—
Intercompany income tax payable			37			—			—			—			17			18			38

15. DERIVATIVES AND HEDGING

The Duke Energy Registrants use commodity, interest rate and foreign currency contracts to manage commodity price risk, interest rate risk and foreign currency exchange rate risk. The primary use of commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Piedmont enters into natural gas supply contracts to provide diversification, reliability and natural gas cost benefits to its customers. Interest rate derivatives are used to manage interest rate risk associated with borrowings. Foreign currency derivatives are used to manage risk related to foreign currency exchange rates on certain issuances of debt.

All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities or financing activities on the Consolidated Statements of Cash Flows.

INTEREST RATE RISK

The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward-starting interest rate swaps or Treasury locks may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt.

Cash Flow Hedges

For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of AOCI for the years ended December 31, 2023, 2022, and 2021, were not material. Duke Energy's interest rate derivatives designated as hedges include forward-starting interest rate swaps not accounted for under regulatory accounting.

Undesignated Contracts

Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.

Duke Energy’s interest rate swaps for its regulated operations employ regulatory accounting. With regulatory accounting, the mark-to-market gains or losses on the swaps are deferred as regulatory liabilities or regulatory assets, respectively. Regulatory assets and liabilities are amortized consistent with the treatment of the related costs in the ratemaking process. The accrual of interest on the swaps is recorded as Interest Expense on the Duke Energy Registrant's Consolidated Statements of Operations and Comprehensive Income.

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

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

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Indiana						Ohio
Cash flow hedges			$	2,300					$	—					$	—					$	—					$	—					$	—					$	—
Undesignated contracts			2,727						1,050						1,250						925						325						400						27
Total notional amount			$	5,027					$	1,050					$	1,250					$	925					$	325					$	400					$	27

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Indiana						Ohio
Cash flow hedges			$	500					$	—					$	—					$	—					$	—					$	—					$	—
Undesignated contracts			2,377						1,250						800						500						300						300						27
Total notional amount			$	2,877					$	1,250					$	800					$	500					$	300					$	300					$	27

COMMODITY PRICE RISK

The Duke Energy Registrants are exposed to the impact of changes in the prices of electricity purchased and sold in bulk power markets and natural gas purchases, including Piedmont's natural gas supply contracts. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets and delivery locations. To manage risk associated with commodity prices, the Duke Energy Registrants may enter into long-term power purchase or sales contracts and long-term natural gas supply agreements.

Undesignated Contracts

For the Subsidiary Registrants, bulk power electricity and natural gas purchases flow through fuel adjustment clauses, formula-based contracts or other cost sharing mechanisms. Differences between the costs included in rates and the incurred costs, including undesignated derivative contracts, are largely deferred as regulatory assets or regulatory liabilities. Piedmont policies allow for the use of financial instruments to hedge commodity price risks. The strategy and objective of these hedging programs are to use the financial instruments to reduce natural gas cost volatility for customers.

Volumes

The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.

			December 31, 2023
									Duke												Duke												Duke						Duke
			Duke						Energy						Progress						Energy												Energy						Energy
			Energy						Carolinas						Energy						Progress												Ohio						Indiana						Piedmont
Electricity (GWh)			13,608						—						—						—												1,616						11,992						—
Natural gas (millions of Dth)			846						279						274						274												—						30						263

			December 31, 2022
									Duke												Duke												Duke						Duke
			Duke						Energy						Progress						Energy												Energy						Energy
			Energy						Carolinas						Energy						Progress												Ohio						Indiana						Piedmont
Electricity (GWh)			14,086						—						—						—												1,820						12,266						—
Natural gas (millions of Dth)			909						307						292						292												—						11						299

FOREIGN CURRENCY RISK

Duke Energy may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars.

Fair Value Hedges

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

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

The following table shows Duke Energy's outstanding derivatives related to foreign currency risk. There were no fair value hedges in 2021.

																																										Fair Value Gain (Loss)****(a)
															Receive																					Hedge						(in millions)
			Pay Notional												Notional									Receive												Maturity						Years Ended December 31,
			(in millions)						Pay Rate						(in millions)									Rate												Date						2023			2022
Fair value hedges
			$	645					4.75		%				600			euros						3.10		%										June 2028						$	17		(3)
			537						5.31		%				500			euros						3.85		%										June 2034						15			(2)
Total notional amount			$	1,182											1,100			euros																								$	32		(5)

(a) Amounts are recorded in Other Income and expenses, net on the Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Consolidated Statements of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded.

LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS

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

Derivative Assets						December 31, 2023
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	25					$	1					$	3					$	1					$	2					$	1					$	18					$	1
Noncurrent						57						26						31						31						—						—						—						—
Total Derivative Assets – Commodity Contracts						$	82					$	27					$	34					$	32					$	2					$	1					$	18					$	1
Interest Rate Contracts
Designated as Hedging Instruments
Current						$	31					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						17						—						—						—						—						—						—						—
Not Designated as Hedging Instruments
Current						$	5					$	5					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						10						3						—						—						—						—						7						—
Total Derivative Assets – Interest Rate Contracts						$	63					$	8					$	—					$	—					$	—					$	—					$	7					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent						44						—						—						—						—						—						—						—
Total Derivative Assets – Foreign Currency Contracts						$	44					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Assets						$	189					$	35					$	34					$	32					$	2					$	1					$	25					$	1

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Liabilities						December 31, 2023
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	354					$	177					$	138					$	138					$	—					$	—					$	18					$	20
Noncurrent						255						67						61						61						—						—						—						127
Total Derivative Liabilities – Commodity Contracts						$	609					$	244					$	199					$	199					$	—					$	—					$	18					$	147
Interest Rate Contracts
Designated as Hedging Instruments
Current						$	25					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						26						—						—						—						—						—						—						—
Not Designated as Hedging Instruments
Current						13						2						11						11						—						—						—						—
Noncurrent						39						14						24						9						15						1						—						—
Total Derivative Liabilities – Interest Rate Contracts						$	103					$	16					$	35					$	20					$	15					$	1					$	—					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current						$	17					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities – Foreign Currency Contracts						$	17					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities						$	729					$	260					$	234					$	219					$	15					$	1					$	18					$	147

Derivative Assets						December 31, 2022
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	265					$	132					$	99					$	99					$	—					$	5					$	29					$	—
Noncurrent						213						104						108						108						—						—						—						—
Total Derivative Assets – Commodity Contracts						$	478					$	236					$	207					$	207					$	—					$	5					$	29					$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current						$	101					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Not Designated as Hedging Instruments
Current						$	216					$	94					$	41					$	23					$	17					$	—					$	81					$	—
Total Derivative Assets – Interest Rate Contracts						$	317					$	94					$	41					$	23					$	17					$	—					$	81					$	—
Total Derivative Assets						$	795					$	330					$	248					$	230					$	17					$	5					$	110					$	—

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Liabilities						December 31, 2022
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Not Designated as Hedging Instruments
Current						$	175					$	96					$	36					$	18					$	19					$	—					$	16					$	27
Noncurrent						202						31						30						30						—						—						—						141
Total Derivative Liabilities – Commodity Contracts						$	377					$	127					$	66					$	48					$	19					$	—					$	16					$	168
Interest Rate Contracts
Not Designated as Hedging Instruments
Noncurrent						2						—						—						—						—						2						—						—
Total Derivative Liabilities – Interest Rate Contracts						$	2					$	—					$	—					$	—					$	—					$	2					$	—					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current						$	18					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						40						—						—						—						—						—						—						—
Total Derivative Liabilities – Foreign Currency Contracts						$	58					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities						$	437					$	127					$	66					$	48					$	19					$	2					$	16					$	168

OFFSETTING ASSETS AND LIABILITIES

The following tables present the line items on the Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.

Derivative Assets						December 31, 2023
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	61					$	6					$	3					$	1					$	2					$	1					$	18					$	1
Offset						(2)						(1)						(1)						(1)						—						—						—						—
Net amounts presented in Current Assets: Other						$	59					$	5					$	2					$	—					$	2					$	1					$	18					$	1
Noncurrent
Gross amounts recognized						$	128					$	29					$	31					$	31					$	—					$	—					$	7					$	—
Offset						(37)						(14)						(22)						(22)						—						—						—						—
Net amounts presented in Other Noncurrent Assets: Other						$	91					$	15					$	9					$	9					$	—					$	—					$	7					$	—

Derivative Liabilities						December 31, 2023
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	409					$	179					$	149					$	149					$	—					$	—					$	18					$	20
Offset						(2)						(1)						(1)						(1)						—						—						—						—
Cash collateral posted						(96)						(48)						(30)						(30)						—						—						(18)						—
Net amounts presented in Current Liabilities: Other						$	311					$	130					$	118					$	118					$	—					$	—					$	—					$	20
Noncurrent
Gross amounts recognized						$	320					$	81					$	85					$	70					$	15					$	1					$	—					$	127
Offset						(37)						(14)						(22)						(22)						—						—						—						—
Cash collateral posted						(66)						(38)						(28)						(28)						—						—						—						—
Net amounts presented in Other Noncurrent Liabilities: Other						$	217					$	29					$	35					$	20					$	15					$	1					$	—					$	127

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Assets						December 31, 2022
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	582					$	226					$	140					$	122					$	17					$	5					$	110					$	—
Offset						(33)						(15)						(18)						(18)						—						—						—						—
Cash collateral received						(31)						(18)						(12)						(12)						—						—						—						—
Net amounts presented in Current Assets: Other						$	518					$	193					$	110					$	92					$	17					$	5					$	110					$	—
Noncurrent
Gross amounts recognized						$	213					$	104					$	108					$	108					$	—					$	—					$	—					$	—
Offset						(59)						(29)						(30)						(30)						—						—						—						—
Cash collateral received						(38)						(11)						(27)						(27)						—						—						—						—
Net amounts presented in Other Noncurrent Assets: Other						$	116					$	64					$	51					$	51					$	—					$	—					$	—					$	—

Derivative Liabilities						December 31, 2022
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	193					$	96					$	36					$	18					$	19					$	—					$	16					$	27
Offset						(33)						(15)						(18)						(18)						—						—						—						—
Cash collateral posted						(16)						—						—						—						—						—						(16)						—
Net amounts presented in Current Liabilities: Other						$	144					$	81					$	18					$	—					$	19					$	—					$	—					$	27
Noncurrent
Gross amounts recognized						$	244					$	31					$	30					$	30					$	—					$	2					$	—					$	141
Offset						(59)						(29)						(30)						(30)						—						—						—						—
Net amounts presented in Other Noncurrent Liabilities: Other						$	185					$	2					$	—					$	—					$	—					$	2					$	—					$	141

OBJECTIVE CREDIT CONTINGENT FEATURES

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

			December 31, 2023
									Duke												Duke
			Duke						Energy						Progress						Energy
(in millions)			Energy						Carolinas						Energy						Progress
Aggregate fair value of derivatives in a net liability position			$	342					$	175					$	166					$	166
Fair value of collateral already posted			144						86						58						58
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered			198						89						108						108

			December 31, 2022
									Duke												Duke						Duke
			Duke						Energy						Progress						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida
Aggregate fair value of derivatives in a net liability position			$	141					$	86					$	55					$	48					$	7
Fair value of collateral already posted			—						—						—						—						—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered			141						86						55						48						7

The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative and cash collateral must be executed with the same counterparty under the same master netting arrangement.

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

16. INVESTMENTS IN DEBT AND EQUITY SECURITIES

Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as AFS and investments in equity securities as FV-NI.

For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.

Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.

Investment Trusts

The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.

Other AFS Securities

Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of December 31, 2023, and 2022.

Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

DUKE ENERGY

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	133					$	—					$	—					$	215
Equity securities			4,942						22						7,278						3,658						105						5,871
Corporate debt securities			12						43						632						1						85						641
Municipal bonds			6						16						347						—						39						330
U.S. government bonds			24						65						1,575						2						112						1,423
Other debt securities			1						13						178						—						18						156
Total NDTF Investments			$	4,985					$	159					$	10,143					$	3,661					$	359					$	8,636
Other Investments
Cash and cash equivalents			$	—					$	—					$	31					$	—					$	—					$	22
Equity securities			33						—						158						21						16						128
Corporate debt securities			—						6						82						—						12						84
Municipal bonds			1						2						77						—						3						78
U.S. government bonds			—						2						65						—						2						62
Other debt securities			—						2						47						—						3						41
Total Other Investments			$	34					$	12					$	460					$	21					$	36					$	415
Total Investments			$	5,019					$	171					$	10,603					$	3,682					$	395					$	9,051

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were as follows.

			Years Ended December 31,
(in millions)			2023						2022						2021
FV-NI:
Realized gains			$	129					$	201					$	724
Realized losses			146						316						141
AFS:
Realized gains			44						28						56
Realized losses			140						151						54

DUKE ENERGY CAROLINAS

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	51					$	—					$	—					$	117
Equity securities			2,886						14						4,196						2,147						51						3,367
Corporate debt securities			4						35						390						1						62						401
Municipal bonds			—						4						50						—						10						64
U.S. government bonds			13						33						826						1						51						685
Other debt securities			1						13						172						—						18						148
Total NDTF Investments			$	2,904					$	99					$	5,685					$	2,149					$	192					$	4,782

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were as follows.

			Years Ended December 31,
(in millions)			2023						2022						2021
FV-NI:
Realized gains			$	82					$	124					$	440
Realized losses			79						177						96
AFS:
Realized gains			22						22						38
Realized losses			65						86						37

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

PROGRESS ENERGY

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	82					$	—					$	—					$	98
Equity securities			2,056						8						3,082						1,511						54						2,504
Corporate debt securities			8						8						242						—						23						240
Municipal bonds			6						12						297						—						29						266
U.S. government bonds			11						32						749						1						61						738
Other debt securities			—						—						6						—						—						8
Total NDTF Investments			$	2,081					$	60					$	4,458					$	1,512					$	167					$	3,854
Other Investments
Cash and cash equivalents			$	—					$	—					$	18					$	—					$	—					$	11
Municipal bonds			—						1						23						—						—						25
Total Other Investments			$	—					$	1					$	41					$	—					$	—					$	36
Total Investments			$	2,081					$	61					$	4,499					$	1,512					$	167					$	3,890

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were as follows.

			Years Ended December 31,
(in millions)			2023						2022						2021
FV-NI:
Realized gains			$	47					$	77					$	284
Realized losses			67						139						45
AFS:
Realized gains			22						6						16
Realized losses			75						48						14

DUKE ENERGY PROGRESS

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	55					$	—					$	—					$	56
Equity securities			1,956						8						2,970						1,431						54						2,411
Corporate debt securities			7						8						229						—						22						230
Municipal bonds			6						12						297						—						29						266
U.S. government bonds			10						18						518						1						37						460
Other debt securities			—						—						6						—						—						7
Total NDTF Investments			$	1,979					$	46					$	4,075					$	1,432					$	142					$	3,430
Other Investments
Cash and cash equivalents			$	—					$	—					$	14					$	—					$	—					$	9
Total Other Investments			$	—					$	—					$	14					$	—					$	—					$	9
Total Investments			$	1,979					$	46					$	4,089					$	1,432					$	142					$	3,439

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were as follows.

			Years Ended December 31,
(in millions)			2023						2022						2021
FV-NI:
Realized gains			$	44					$	76					$	283
Realized losses			66						136						44
AFS:
Realized gains			20						6						15
Realized losses			70						44						13

DUKE ENERGY FLORIDA

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	27					$	—					$	—					$	42
Equity securities			100						—						112						80						—						93
Corporate debt securities			1						—						13						—						1						10
U.S. government bonds			1						14						231						—						24						278
Other debt securities			—						—						—						—						—						1
Total NDTF Investments**(a)**			$	102					$	14					$	383					$	80					$	25					$	424
Other Investments
Cash and cash equivalents			$	—					$	—					$	3					$	—					$	—					$	1
Municipal bonds			—						1						23												—						25
Total Other Investments			$	—					$	1					$	26					$	—					$	—					$	26
Total Investments			$	102					$	15					$	409					$	80					$	25					$	450

(a) During the years ended December 31, 2023, and 2022, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were immaterial.

DUKE ENERGY INDIANA

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

			December 31, 2023																		December 31, 2022
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
Investments
Cash and cash equivalents			$	—					$	—					$	1					$	—					$	—					$	1
Equity securities			4						—						98						2						16						79
Corporate debt securities			—						—						8						—						1						8
Municipal bonds			1						1						46						—						3						45
U.S. government bonds			—						—						10						—						—						7
Total Investments			$	5					$	1					$	163					$	2					$	20					$	140

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2023, 2022 and 2021, were immaterial.

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.

			December 31, 2023
						Duke						Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Indiana
Due in one year or less			$	116		$	9		$	89		$	13		$	76		$	7
Due after one through five years			696			226			391			254			137			20
Due after five through 10 years			598			333			217			204			13			11
Due after 10 years			1,593			870			620			579			41			26
Total			$	3,003		$	1,438		$	1,317		$	1,050		$	267		$	64

17. FAIR VALUE MEASUREMENTS

Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.

Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value per share practical expedient. The net asset value is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.

Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the Company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.

Valuation methods of the primary fair value measurements disclosed below are as follows.

Investments in equity securities

The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the NYSE and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.

Investments in debt securities

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

Commodity derivatives

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

Interest rate derivatives

Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.

Foreign currency derivatives

Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.

Other fair value considerations

See Note 2 for further information on the valuation of the Commercial Renewables Disposal Groups. See Note 12 for a discussion of the valuation of goodwill and intangible assets.

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 15. See Note 16 for additional information related to investments by major security type for the Duke Energy Registrants.

			December 31, 2023
(in millions)			Total Fair Value			Level 1			Level 2			Level 3			Not Categorized
NDTF cash and cash equivalents			$	133		$	133		$	—		$	—		$	—
NDTF equity securities			7,278			7,241			—			—			37
NDTF debt securities			2,732			829			1,903			—			—
Other equity securities			158			158			—			—			—
Other debt securities			271			55			216			—			—
Other cash and cash equivalents			31			31			—			—			—
Derivative assets			189			37			137			15			—
Total assets			10,792			8,484			2,256			15			37
Derivative liabilities			(729)			(60)			(669)			—			—
Net assets			$	10,063		$	8,424		$	1,587		$	15		$	37

			December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2			Level 3			Not Categorized
NDTF cash and cash equivalents			$	215		$	215		$	—		$	—		$	—
NDTF equity securities			5,871			5,829			—			—			42
NDTF debt securities			2,550			780			1,770			—			—
Other equity securities			128			128			—			—			—
Other debt securities			265			55			210			—			—
Other cash and cash equivalents			22			22			—			—			—
Derivative assets			795			1			760			34			—
Total assets			9,846			7,030			2,740			34			42
Derivative liabilities			(437)			(16)			(421)			—			—
Net assets			$	9,409		$	7,014		$	2,319		$	34		$	42

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

									Derivatives (net)
									Years Ended December 31,
(in millions)									2023																		2022
Balance at beginning of period									$	34																	$	24
Purchases, sales, issuances and settlements:
Purchases									47																		78
Settlements									(72)																		(36)
Total gains (losses) included on the Consolidated Balance Sheet									6																		(32)
Balance at end of period									$	15																	$	34

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY CAROLINAS

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

			December 31, 2023
(in millions)			Total Fair Value			Level 1			Level 2						Not Categorized
NDTF cash and cash equivalents			$	51		$	51		$	—					$	—
NDTF equity securities			4,196			4,159			—						37
NDTF debt securities			1,438			375			1,063						—
Derivative assets			35			—			35						—
Total assets			5,720			4,585			1,098						37
Derivative liabilities			(260)			—			(260)						—
Net assets			$	5,460		$	4,585		$	838					$	37

			December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2						Not Categorized
NDTF cash and cash equivalents			$	117		$	117		$	—					$	—
NDTF equity securities			3,367			3,325			—						42
NDTF debt securities			1,298			323			975						—
Derivative assets			330			—			330						—
Total assets			5,112			3,765			1,305						42
Derivative liabilities			(127)			—			(127)						—
Net assets			$	4,985		$	3,765		$	1,178					$	42

PROGRESS ENERGY

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

			December 31, 2023												December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	82		$	82		$	—								$	98		$	98		$	—
NDTF equity securities			3,082			3,082			—									2,504			2,504			—
NDTF debt securities			1,294			454			840									1,252			457			795
Other debt securities			23			—			23									25			—			25
Other cash and cash equivalents			18			18			—									11			11			—
Derivative assets			34			—			34									248			—			248
Total assets			4,533			3,636			897									4,138			3,070			1,068
Derivative liabilities			(234)			—			(234)									(66)			—			(66)
Net assets			$	4,299		$	3,636		$	663								$	4,072		$	3,070		$	1,002

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY PROGRESS

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

			December 31, 2023												December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	55		$	55		$	—								$	56		$	56		$	—
NDTF equity securities			2,970			2,970			—									2,411			2,411			—
NDTF debt securities			1,050			266			784									963			225			738
Other cash and cash equivalents			14			14			—									9			9			—
Derivative assets			32			—			32									230			—			230
Total assets			4,121			3,305			816									3,669			2,701			968
Derivative liabilities			(219)			—			(219)									(48)			—			(48)
Net assets			$	3,902		$	3,305		$	597								$	3,621		$	2,701		$	920

DUKE ENERGY FLORIDA

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

			December 31, 2023												December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2						Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	27		$	27		$	—					$	42		$	42		$	—
NDTF equity securities			112			112			—						93			93			—
NDTF debt securities			244			188			56						289			232			57
Other debt securities			23			—			23						25			—			25
Other cash and cash equivalents			3			3			—						1			1			—
Derivative assets			2			—			2						17			—			17
Total assets			411			330			81						467			368			99
Derivative liabilities			(15)			—			(15)						(19)			—			(19)
Net assets			$	396		$	330		$	66					$	448		$	368		$	80

DUKE ENERGY OHIO

The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets were not material at December 31, 2023, and 2022.

DUKE ENERGY INDIANA

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

			December 31, 2023															December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2			Level 3						Total Fair Value			Level 1			Level 2			Level 3
Other equity securities			$	98		$	98		$	—		$	—					$	79		$	79		$	—		$	—
Other debt securities			64			—			64			—						60			—			60			—
Other cash equivalents			1			1			—			—						1			1			—			—
Derivative assets			25			5			7			13						110			—			81			29
Total assets			188			104			71			13						250			80			141			29
Derivative liabilities			(18)			(18)			—			—						(16)			(16)			—			—
Net assets			$	170		$	86		$	71		$	13					$	234		$	64		$	141		$	29

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

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

			Derivatives (net)
			Years Ended December 31,
(in millions)			2023						2022
Balance at beginning of period			$	29					$	22
Purchases, sales, issuances and settlements:
Purchases			42						74
Settlements			(68)						(32)
Total gains (losses) included on the Consolidated Balance Sheet			10						(35)
Balance at end of period			$	13					$	29

PIEDMONT

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

			December 31, 2023												December 31, 2022
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1						Level 2
Derivative assets			$	1		$	1		$	—								$	—		$	—					$	—
Derivative liabilities			(147)			—			(147)									(168)			—						(168)
Net (liabilities) assets			$	(146)		$	1		$	(147)								$	(168)		$	—					$	(168)

QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS

The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.

			December 31, 2023
																					Weighted
			Fair Value																		Average
Investment Type			(in millions)			Valuation Technique			Unobservable Input			Range									Range
Duke Energy Ohio
FTRs			$	2		RTO auction pricing			FTR price – per MWh			$	0.36		–			$	2.11		$	0.71
Duke Energy Indiana
FTRs			13			RTO auction pricing			FTR price – per MWh			(1.05)			–			9.64			1.26
Duke Energy
Total Level 3 derivatives			$	15

			December 31, 2022
																					Weighted
			Fair Value																		Average
Investment Type			(in millions)			Valuation Technique			Unobservable Input			Range									Range
Duke Energy Ohio
FTRs			$	5		RTO auction pricing			FTR price – per MWh			$	0.89		–			$	6.25		$	3.35
Duke Energy Indiana
FTRs			29			RTO auction pricing			FTR price – per MWh			0.09			–			21.79			2.74
Duke Energy
Total Level 3 derivatives			$	34

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

OTHER FAIR VALUE DISCLOSURES

The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.

			December 31, 2023												December 31, 2022
(in millions)			Book Value						Fair Value						Book Value						Fair Value
Duke Energy(a)			$	75,252					$	69,790					$	69,751					$	61,986
Duke Energy Carolinas			16,012						15,077						14,266						12,943
Progress Energy			23,759						22,553						22,439						20,467
Duke Energy Progress			11,714						10,595						11,087						9,689
Duke Energy Florida			10,401						10,123						9,709						8,991
Duke Energy Ohio			3,518						3,310						3,245						2,927
Duke Energy Indiana			4,502						4,230						4,307						3,913
Piedmont			3,668						3,336						3,363						2,940

(a) Book value of long-term debt includes $1.0 billion as of December 31, 2023, and $1.2 billion as of December 31, 2022, of unamortized debt discount and premium, net in purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.

At both December 31, 2023, and December 31, 2022, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper, and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.

18. VARIABLE INTEREST ENTITIES

A Variable Interest Entity (VIE) is an entity that is evaluated for consolidation using 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 entity’s assets or activities. A qualitative analysis of control determines the party that consolidates a VIE. This assessment is based on (i) what party has the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) what party has rights to receive benefits or is obligated to absorb losses that could potentially be significant to the VIE. The analysis of the party that consolidates a VIE is a continual reassessment.

CONSOLIDATED VIEs

The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.

No financial support was provided to any of the consolidated VIEs during the years ended December 31, 2023, 2022 and 2021, or is expected to be provided in the future, that was not previously contractually required.

Receivables Financing – DERF/DEPR/DEFR

DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies.

DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the DERF and DEPR credit facilities are reflected on the Consolidated Balance Sheets as Long-Term Debt. Amounts borrowed under the DEFR credit facility are reflected on the Consolidated Balance Sheets as Current maturities of long-term debt.

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

Receivables Financing – CRC

CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC buys certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC borrows amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility is limited to the amount of qualified receivables sold to CRC, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligation is cash collections from the receivables. Amounts borrowed under the credit facility are reflected on Duke Energy's Consolidated Balance Sheets as Long-Term Debt.

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

The proceeds Duke Energy Ohio and Duke Energy Indiana receive from the sale of receivables to CRC are approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note is a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC may be required by Duke Energy to maintain a minimum equity balance of $3 million.

CRC is considered a VIE because (i) equity capitalization is insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity is not held by the equity holder and (iii) deficiencies in net worth of CRC are funded by Duke Energy. The most significant activities that impact the economic performance of CRC are decisions made to manage delinquent receivables. Duke Energy is considered the primary beneficiary and consolidates CRC as it makes these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidate CRC.

Receivables Financing – Credit Facilities

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

			Duke Energy
									Duke Energy						Duke Energy						Duke Energy
									Carolinas						Progress						Florida
(in millions)			CRC						DERF						DEPR						DEFR
Expiration date			February 2025						January 2025						April 2025						April 2024
Credit facility amount			$	350					$	500					$	400					$	325
Amounts borrowed at December 31, 2023			312						500						400						325
Amounts borrowed at December 31, 2022			350						471						400						250
Restricted Receivables at December 31, 2023			663						991						833						532
Restricted Receivables at December 31, 2022			917						928						793						490

Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance

Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.

In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.

DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.

The following table summarizes the impact of DEFPF on Duke Energy Florida's Consolidated Balance Sheets.

			December 31,
(in millions)			2023			2022
Receivables of VIEs			$	—		$	6
Regulatory Assets: Current			59			55
Current Assets: Other			37			41
Other Noncurrent Assets: Regulatory assets			803			826
Current Liabilities: Other			8			9
Current maturities of long-term debt			59			56
Long-Term Debt			831			890

Storm Recovery Bonds – Duke Energy Carolinas NC Storm Funding and Duke Energy Progress NC Storm Funding

Duke Energy Carolinas NC Storm Funding, LLC. (DECNCSF) and Duke Energy Progress NC Storm Funding, LLC. (DEPNCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress, respectively. These entities were formed in 2021 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs.

In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress.

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

DECNCSF and DEPNCSF are considered VIEs primarily because the equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries and consolidate DECNCSF and DEPNCSF, respectively.

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

			Duke Energy Carolinas						Duke Energy Progress
			December 31,						December 31,
(in millions)			2023			2022			2023			2022
Regulatory Assets: Current			$	12		$	12		$	39		$	39
Current Assets: Other			9			8			31			29
Other Noncurrent Assets: Regulatory assets			196			208			643			681
Other Noncurrent Assets: Other			1			1			2			2
Current maturities of long-term debt			10			10			34			34
Current Liabilities: Other			3			3			8			8
Long-Term Debt			208			219			680			714

Purchasing Company – Duke Energy Florida

Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo was formed in 2023 as the primary procurement agent for equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with third party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset.

As of December 31, 2023, Duke Energy Florida’s Consolidated Balance Sheets included Inventory and Accounts Payable for DEF ProCo of $462 million and $188 million, respectively.

NON-CONSOLIDATED VIEs

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

			December 31, 2023
			Duke Energy									Duke						Duke
			Natural Gas																								Energy						Energy
(in millions)			Investments																								Ohio						Indiana
Receivables from affiliated companies			$	—																							$	150					$	208
Investments in equity method unconsolidated affiliates			67																								—						—
Other noncurrent assets			43																								—						—
Total assets			$	110																							$	150					$	208
Other current liabilities			4																								—						—
Other noncurrent liabilities			5																								—						—
Total liabilities			9																								$	—					$	—
Net assets			$	101																							$	150					$	208

			December 31, 2022
			Duke Energy									Duke						Duke
			Natural Gas																								Energy						Energy
(in millions)			Investments																								Ohio						Indiana
Receivables from affiliated companies			$	—																							$	198					$	317
Investments in equity method unconsolidated affiliates			43																								—						—
Other noncurrent assets			45																								—						—
Total assets			$	88																							$	198					$	317
Other current liabilities			59																								—						—
Other noncurrent liabilities			47																								—						—
Total liabilities			$	106																							$	—					$	—
Net (liabilities) assets			$	(18)																							$	198					$	317

The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above.

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

Natural Gas Investments

Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.

CRC

See discussion under Consolidated VIEs for additional information related to CRC.

Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC. These subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value. Carrying values of retained interests are determined by allocating carrying value of the receivables between assets sold and interests retained based on relative fair value. The allocated bases of the subordinated notes are not materially different than their face value because (i) the receivables generally turnover in less than two months, (ii) credit losses are reasonably predictable due to the broad customer base and lack of significant concentration and (iii) the equity in CRC is subordinate to all retained interests and thus would absorb losses first. The hypothetical effect on fair value of the retained interests assuming both a 10% and a 20% unfavorable variation in credit losses or discount rates is not material due to the short turnover of receivables and historically low credit loss history. Interest accrues to Duke Energy Ohio and Duke Energy Indiana on the retained interests using the acceptable yield method. This method generally approximates the stated rate on the notes since the allocated basis and the face value are nearly equivalent. An impairment charge is recorded against the carrying value of both retained interests and purchased beneficial interest whenever it is determined that an other-than-temporary impairment has occurred.

Key assumptions used in estimating fair value are detailed in the following table.

			Duke Energy Ohio												Duke Energy Indiana
			2023						2022						2023						2022
Anticipated credit loss ratio			0.6		%				0.5		%				0.4		%				0.3		%
Discount rate			6.1		%				2.7		%				6.1		%				2.7		%
Receivable turnover rate			13.9		%				13.5		%				12.0		%				11.3		%

The following table shows the gross and net receivables sold.

			Duke Energy Ohio												Duke Energy Indiana
			December 31,												December 31,
(in millions)			2023						2022						2023						2022
Receivables sold			$	361					$	423					$	351					$	508
Less: Retained interests			150						198						208						317
Net receivables sold			$	211					$	225					$	143					$	191

The following table shows sales and cash flows related to receivables sold.

			Duke Energy Ohio																		Duke Energy Indiana
			Years Ended December 31,																		Years Ended December 31,
(in millions)			2023						2022						2021						2023						2022						2021
Sales
Receivables sold			$	2,578					$	2,562					$	2,023					$	3,223					$	3,744					$	2,909
Loss recognized on sale			34						18						10						39						26						13
Cash flows
Cash proceeds from receivables sold			2,591						2,424						2,018						3,294						3,498						2,909
Collection fees received			1						1						1						2						2						1
Return received on retained interests			19						10						4						25						15						6

Cash flows from sales of receivables are reflected within Cash Flows From Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of Cash Flows.

Collection fees received in connection with servicing transferred accounts receivable are included in Operation, maintenance and other on Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of Operations and Comprehensive Income. The loss recognized on sales of receivables is calculated monthly by multiplying receivables sold during the month by the required discount. The required discount is derived monthly utilizing a three-year weighted average formula that considers charge-off history, late charge history and turnover history on the sold receivables, as well as a component for the time value of money. The discount rate, or component for the time value of money, is the prior month-end Daily Simple SOFR plus a fixed rate of 1%.

FINANCIAL STATEMENTS			REVENUE

19. REVENUE

Duke Energy recognizes revenue consistent with amounts billed under tariff offerings or at contractually agreed upon rates based on actual physical delivery of electric or natural gas service, including estimated volumes delivered when billings have not yet occurred. As such, the majority of Duke Energy’s revenues have fixed pricing based on the contractual terms of the published tariffs. Absent decoupling mechanisms, the variability in expected cash flows of the majority of Duke Energy's revenue is attributable to the customer’s volumetric demand and ultimate quantities of energy or natural gas supplied and used during the billing period. The stand-alone selling price of related sales are designed to support recovery of prudently incurred costs and an appropriate return on invested assets and are primarily governed by published tariff rates or contractual agreements approved by relevant regulatory bodies. As described in Note 1, certain excise taxes and franchise fees levied by state or local governments are required to be paid even if not collected from the customer. These taxes are recognized on a gross basis as part of revenues. Duke Energy elects to account for all other taxes net of revenues.

Performance obligations are satisfied over time as energy or natural gas is delivered and consumed with billings generally occurring monthly and related payments due within 30 days, depending on regulatory requirements. In no event does the timing between payment and delivery of the goods and services exceed one year. Using this output method for revenue recognition provides a faithful depiction of the transfer of electric and natural gas service as customers obtain control of the commodity and benefit from its use at delivery. Additionally, Duke Energy has an enforceable right to consideration for energy or natural gas delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which Duke Energy is entitled for the energy or natural gas delivered.

As described above, the majority of Duke Energy’s tariff revenues are at will and, as such, related contracts with customers have an expected duration of one year or less and will not have future performance obligations for disclosure. Additionally, other long-term revenue streams, including wholesale contracts, generally provide services that are part of a single performance obligation, the delivery of electricity or natural gas. As such, other than material fixed consideration under long-term contracts, related disclosures for future performance obligations are also not applicable.

Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.

Electric Utilities and Infrastructure

EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.

Retail electric service is generally marketed throughout Duke Energy’s electric service territory through standard service offers. The standard service offers are through tariffs determined by regulators in Duke Energy's regulated service territory. Each tariff, which is assigned to customers based on customer class, has multiple components such as an energy charge, a demand charge, a basic facilities charge and applicable riders. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing electric service, or in the case of distribution only customers in Duke Energy Ohio, for delivering electricity. Electricity is considered a single performance obligation satisfied over time consistent with the series guidance and is provided and consumed over the billing period, generally one month. Retail electric service is typically provided to at-will customers who can cancel service at any time, without a substantive penalty. Additionally, Duke Energy adheres to applicable regulatory requirements in each jurisdiction to ensure the collectability of amounts billed and appropriate mitigating procedures are followed when necessary. As such, revenue from contracts with customers for such contracts is equivalent to the electricity supplied and billed in that period (including unbilled estimates).

Wholesale electric service is generally provided under long-term contracts using cost-based pricing. FERC regulates costs that may be recovered from customers and the amount of return companies are permitted to earn. Wholesale contracts include both energy and demand charges. For full requirements contracts, Duke Energy considers both charges as a single performance obligation for providing integrated electric service. For contracts where energy and demand charges are considered separate performance obligations, energy and demand are each a distinct performance obligation under the series guidance and are satisfied as energy is delivered and stand-ready service is provided on a monthly basis. This service represents consumption over the billing period and revenue is recognized consistent with billings and unbilled estimates, which generally occur monthly. Contractual amounts owed are typically trued up annually based upon incurred costs in accordance with FERC published filings and the specific customer’s actual peak demand. Estimates of variable consideration related to potential additional billings or refunds owed are updated quarterly.

The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:

			Remaining Performance Obligations
(in millions)			2024			2025			2026			2027			2028			Thereafter			Total
Progress Energy			$	72		$	30		$	7		$	7		$	7		$	29		$	152
Duke Energy Progress			8			—			—			—			—			—			8
Duke Energy Florida			64			30			7			7			7			29			144
Duke Energy Indiana			16			17			17			15			5			—			70

Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.

FINANCIAL STATEMENTS			REVENUE

Gas Utilities and Infrastructure

GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.

Retail natural gas service is marketed throughout Duke Energy's natural gas service territory using published tariff rates. The tariff rates are established by regulators in Duke Energy's service territories. Each tariff, which is assigned to customers based on customer class, have multiple components, such as a commodity charge, demand charge, customer or monthly charge and transportation costs. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing natural gas service. For contracts where Duke Energy provides all of the customer’s natural gas needs, the delivery of natural gas is considered a single performance obligation satisfied over time, and revenue is recognized monthly based on billings and unbilled estimates as service is provided and the commodity is consumed over the billing period. Additionally, natural gas service is typically at will and customers can cancel service at any time, without a substantive penalty. Duke Energy also adheres to applicable regulatory requirements to ensure the collectability of amounts billed and receivable and appropriate mitigating procedures are followed when necessary.

Certain long-term individually negotiated contracts exist to provide natural gas service. These contracts are regulated and approved by state commissions. The negotiated contracts may have multiple components, including a natural gas and a demand charge, similar to retail natural gas contracts. Duke Energy considers each of these components to be a single performance obligation for providing natural gas service. This service represents consumption over the billing period, generally one month.

Fixed capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:

			Remaining Performance Obligations
(in millions)			2024			2025			2026			2027			2028			Thereafter			Total
Piedmont			$	66		$	61		$	51		$	49		$	46		$	195		$	468

Other

The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.

FINANCIAL STATEMENTS			REVENUE

Disaggregated Revenues

For the EU&I and GU&I segments, revenue by customer class is most meaningful to Duke Energy as each respective customer class collectively represents unique customer expectations of service, generally has different energy and demand requirements, and operates under tailored, regulatory approved pricing structures. Additionally, each customer class is impacted differently by weather and a variety of economic factors including the level of population growth, economic investment, employment levels, and regulatory activities in each of Duke Energy’s jurisdictions. As such, analyzing revenues disaggregated by customer class allows Duke Energy to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Disaggregated revenues are presented as follows:

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	12,098		$	3,409		$	6,510		$	2,540		$	3,970		$	947		$	1,233		$	—
General			7,895			2,670			3,762			1,588			2,174			552			911			—
Industrial			3,416			1,334			1,105			733			372			191			786			—
Wholesale			2,175			492			1,388			1,240			148			46			248			—
Other revenues			962			318			590			325			265			93			157			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	26,546		$	8,223		$	13,355		$	6,426		$	6,929		$	1,829		$	3,335		$	—
Gas Utilities and Infrastructure
Residential			$	1,226		$	—		$	—		$	—		$	—		$	435		$	—		$	792
Commercial			605			—			—			—			—			154			—			450
Industrial			141			—			—			—			—			26			—			115
Power Generation			—			—			—			—			—			—			—			31
Other revenues			119			—			—			—			—			24			—			95
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	2,091		$	—		$	—		$	—		$	—		$	639		$	—		$	1,483
Other
Revenue from contracts with customers			$	37		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	28,674		$	8,223		$	13,355		$	6,426		$	6,929		$	2,468		$	3,335		$	1,483
Other revenue sources(a)			$	386		$	65		$	189		$	62		$	107		$	39		$	64		$	145
Total revenues			$	29,060		$	8,288		$	13,544		$	6,488		$	7,036		$	2,507		$	3,399		$	1,628

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

FINANCIAL STATEMENTS			REVENUE

			Year Ended December 31, 2022
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	11,377		$	3,275		$	5,812		$	2,378		$	3,434		$	862		$	1,430		$	—
General			7,356			2,396			3,396			1,480			1,916			517			1,049			—
Industrial			3,504			1,251			1,095			770			325			202			956			—
Wholesale			2,856			561			1,785			1,346			439			127			383			—
Other revenues			795			372			994			768			226			61			19			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	25,888		$	7,855		$	13,082		$	6,742		$	6,340		$	1,769		$	3,837		$	—
Gas Utilities and Infrastructure
Residential			$	1,462		$	—		$	—		$	—		$	—		$	488		$	—		$	974
Commercial			765			—			—			—			—			180			—			585
Industrial			170			—			—			—			—			24			—			144
Power Generation			—			—			—			—			—			—			—			94
Other revenues			360			—			—			—			—			25			—			271
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	2,757		$	—		$	—		$	—		$	—		$	717		$	—		$	2,068
Other
Revenue from contracts with customers			$	30		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	28,675		$	7,855		$	13,082		$	6,742		$	6,340		$	2,486		$	3,837		$	2,068
Other revenue sources(a)			$	93		$	2		$	43		$	11		$	13		$	28		$	85		$	56
Total revenues			$	28,768		$	7,857		$	13,125		$	6,753		$	6,353		$	2,514		$	3,922		$	2,124

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

FINANCIAL STATEMENTS			REVENUE

			Year Ended December 31, 2021
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	10,097		$	3,054		$	5,084		$	2,156		$	2,928		$	767		$	1,188		$	—
General			6,375			2,210			2,883			1,378			1,505			440			825			—
Industrial			2,924			1,145			894			634			260			135			750			—
Wholesale			2,199			472			1,385			1,164			221			56			285			—
Other revenues			879			264			716			387			329			83			86			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	22,474		$	7,145		$	10,962		$	5,719		$	5,243		$	1,481		$	3,134		$	—
Gas Utilities and Infrastructure
Residential			$	1,131		$	—		$	—		$	—		$	—		$	354		$	—		$	777
Commercial			561			—			—			—			—			143			—			418
Industrial			158			—			—			—			—			20			—			137
Power Generation			—			—			—			—			—			—			—			92
Other revenues			133			—			—			—			—			28			—			45
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	1,983		$	—		$	—		$	—		$	—		$	545		$	—		$	1,469
Other
Revenue from contracts with customers			$	29		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	24,486		$	7,145		$	10,962		$	5,719		$	5,243		$	2,026		$	3,134		$	1,469
Other revenue sources(a)			$	135		$	(43)		$	95		$	61		$	16		$	11		$	40		$	100
Total revenues			$	24,621		$	7,102		$	11,057		$	5,780		$	5,259		$	2,037		$	3,174		$	1,569

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

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

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Balance at December 31, 2020			$	146		$	23		$	37		$	23		$	14		$	4		$	3		$	12
Write-Offs			(58)			(21)			(25)			(12)			(13)			—			—			(9)
Credit Loss Expense			53			27			25			11			14			—			—			7
Other Adjustments			(20)			13			(1)			(1)			1			—			—			5
Balance at December 31, 2021			$	121		$	42		$	36		$	21		$	16		$	4		$	3		$	15
Write-Offs			(158)			(73)			(70)			(36)			(34)			—			—			(12)
Credit Loss Expense			160			40			72			17			55			2			1			11
Other Adjustments			93			59			43			42			(1)			—			—			—
Balance at December 31, 2022			$	216		$	68		$	81		$	44		$	36		$	6		$	4		$	14
Write-Offs			(164)			(71)			(84)			(41)			(42)			—			—			(10)
Credit Loss Expense			101			35			48			12			37			3			1			7
Other Adjustments			52			24			29			29			—			—			—			—
Balance at December 31, 2023			$	205		$	56		$	74		$	44		$	31		$	9		$	5		$	11

Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables.

FINANCIAL STATEMENTS			REVENUE

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

			December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unbilled Receivables(a)(b)			$	1,273		$	399		$	401		$	280		$	121		$	4		$	22		$	108
Current			2,306			680			1,009			612			395			48			87			199
1-30 days past due			275			97			91			41			50			12			14			9
31-60 days past due			78			20			34			23			11			3			7			2
61-90 days past due			47			15			17			10			7			2			4			1
91+ days past due			253			67			69			24			45			46			27			3
Deferred Payment Arrangements(c)			104			34			43			26			17			6			—			—
Trade and Other Receivables			$	4,336		$	1,312		$	1,664		$	1,016		$	646		$	121		$	161		$	322

			December 31, 2022
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unbilled Receivables(a)(b)			$	1,457		$	486		$	355		$	232		$	123		$	20		$	28		$	160
Current			2,347			577			1,059			637			417			15			52			265
1-30 days past due			261			96			60			15			45			5			17			15
31-60 days past due			123			23			61			49			12			6			2			3
61-90 days past due			74			25			18			9			9			3			11			2
91+ days past due			209			70			74			27			47			26			6			4
Deferred Payment Arrangements(c)			160			57			62			35			27			4			—			1
Trade and Other Receivables			$	4,631		$	1,334		$	1,689		$	1,004		$	680		$	79		$	116		$	450

(a) Unbilled revenues are recognized by applying customer billing rates to the estimated volumes of energy or natural gas delivered but not yet billed and are included within Receivables and Receivables of VIEs on the Consolidated Balance Sheets.

(b) Duke Energy Ohio and Duke Energy Indiana sell, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reflected on the Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 18 for further information. These receivables for unbilled revenues are $141 million and $197 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2023, and $148 million and $260 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2022.

(c) Due to ongoing financial hardships impacting customers, Duke Energy has permitted customers to defer payment of past-due amounts through installment payment plans.

20. STOCKHOLDERS' EQUITY

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

FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

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

			Years Ended December 31,
(in millions, except per share amounts)			2023						2022						2021
Net Income available to Duke Energy common stockholders			$	2,735					$	2,444					$	3,802
Less: (Loss) Income from discontinued operations attributable to Duke Energy common stockholders			(1,391)						(1,215)						200
Accumulated preferred stock dividends adjustment			—						—						—
Less: Impact of participating securities			6						2						3
Income from continuing operations available to Duke Energy common stockholders			$	4,120					$	3,657					$	3,599
Loss from discontinued operations, net of tax			$	(1,455)					$	(1,323)					$	(144)
Add: Loss attributable to NCI			64						108						344
(Loss) Income from discontinued operations attributable to Duke Energy common stockholders			$	(1,391)					$	(1,215)					$	200
Weighted average common shares outstanding – basic and diluted			771						770						769
EPS from continuing operations available to Duke Energy common stockholders
Basic and Diluted(a)			$	5.35					$	4.74					$	4.68
(Loss) Earnings Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and Diluted(a)			$	(1.81)					$	(1.57)					$	0.26
Potentially dilutive items excluded from the calculation(b)			2						2						2
Dividends declared per common share			$	4.06					$	3.98					$	3.90
Dividends declared on Series A preferred stock per depositary share(c)			$	1.437					$	1.437					$	1.437
Dividends declared on Series B preferred stock per share(d)			$	48.750					$	48.750					$	48.750

(a) For the periods presented subsequent to issuance in April 2023, the convertible notes were excluded from the calculations of diluted

EPS because the effect was antidilutive.

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

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

(d) 4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends are payable semiannually in arrears on the 16th day of March and September. The preferred stock has a $1,000 liquidation preference per share. On September 16, 2024, the First Call Date, and any fifth anniversary of the First Call Date, the dividend rate will reset based on the then current five-year U.S. Treasury rate plus a spread of 3.388%.

Common Stock

In November 2022, Duke Energy filed a prospectus supplement and executed an Equity Distribution Agreement (EDA) under which it may sell up to $1.5 billion of its common stock through a new ATM offering program, including an equity forward sales component. Under the terms of the EDA, Duke Energy may issue and sell shares of common stock through September 2025.

Preferred Stock

The Series A Preferred Stock has no maturity or mandatory redemption date, is not redeemable at the option of the holders and includes separate call options. The first call option allows Duke Energy to call the Series A Preferred Stock at a redemption price of $25.50 per depositary share prior to June 15, 2024, in whole but not in part, at any time within 120 days after a ratings event where a rating agency amends, clarifies or changes the criteria it uses to assign equity credit for securities such as the preferred stock. The second call option allows Duke Energy to call the preferred stock, in whole or in part, at any time, on or after June 15, 2024, at a redemption price of $25 per depositary share. Duke Energy is also required to redeem all accumulated and unpaid dividends if either call option is exercised.

The Series B Preferred Stock has no maturity or mandatory redemption date, is not redeemable at the option of the holders and includes separate call options. The first call option allows Duke Energy to call the Series B Preferred Stock at a redemption price of $1,020 per share, in whole but not in part, at any time within 120 days after a ratings event. The second call option allows Duke Energy to call the preferred stock, in whole or in part, on the First Call Date or any subsequent Reset Date at a redemption price in cash equal to $1,000 per share. Duke Energy is also required to redeem all accumulated and unpaid dividends if either call option is exercised.

Dividends issued on its Series A and Series B Preferred Stock are subject to approval by the Board of Directors. However, the deferral of dividend payments on the preferred stock prohibits the declaration of common stock dividends.

The Series A and Series B Preferred Stock rank, with respect to dividends and distributions upon liquidation or dissolution:

• senior to Common Stock and to each other class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is expressly made subordinated to the Series A and Series B Preferred Stock;

• on a parity with any class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is not expressly made senior or subordinated to the Series A or Series B Preferred Stock;

FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

• junior to any class or series of capital stock established after the original issue date of the Series A and Series B Preferred Stock that is expressly made senior to the Series A or Series B Preferred Stock;

• junior to all existing and future indebtedness (including indebtedness outstanding under Duke Energy's credit facilities, unsecured senior notes, junior subordinated debentures and commercial paper) and other liabilities with respect to assets available to satisfy claims against Duke Energy; and

• structurally subordinated to existing and future indebtedness and other liabilities of Duke Energy's subsidiaries and future preferred stock of subsidiaries.

Holders of Series A and Series B Preferred Stock have no voting rights with respect to matters that generally require the approval of voting stockholders. The limited voting rights of holders of Series A and Series B Preferred Stock include the right to vote as a single class, respectively, on certain matters that may affect the preference or special rights of the preferred stock, except in the instance that Duke Energy elects to defer the payment of dividends for a total of six quarterly full dividend periods for Series A Preferred Stock or three semiannual full dividend periods for Series B Preferred Stock. If dividends are deferred for a cumulative total of six quarterly full dividend periods for Series A Preferred Stock or three semiannual full dividend periods for Series B Preferred Stock, whether or not for consecutive dividend periods, holders of the respective preferred stock have the right to elect two additional Board members to the Board of Directors.

21. SEVERANCE

During 2023, as Duke Energy transitions from the foundational work of clean energy strategy planning to the launch of the largest power generation build period in its history, it is streamlining certain functions and changing how it is structured and staffed to ensure the resulting organization reflects best-in-class standards, is optimally aligned with its jurisdictions, and is best positioned to serve its customers, stakeholders and investors. As a result, Duke Energy is extending involuntary severance benefits to certain employees in specific areas as a part of its organizational optimization. For the year ended December 31, 2023, Duke Energy recorded severance charges of approximately $97 million within Operations, maintenance and other on the Consolidated Statements of Income. These charges, along with amortization of severance regulatory deferrals and reversals of certain prior period severance costs, resulted in a total severance charge of $102 million in 2023.

During 2022, Duke Energy identified opportunities to eliminate work and create sustainable savings through a workload reduction initiative with a focus on process improvement through digital technology, governance simplification and elimination of low-value work. As a result, Duke Energy extended involuntary severance benefits to certain employees in specific areas as a part of this initiative.

During 2021, Duke Energy reviewed its operations and identified opportunities for improvement to better serve its customers. This operational review included workforce realignment to ensure the Company is staffed with the right skill sets and number of teammates to execute the long-term vision for Duke Energy. As such, Duke Energy extended involuntary severance benefits to certain employees in specific areas as a part of these workforce realignment efforts.

The following table presents the direct and allocated severance and related charges accrued for 682 employees in 2023, 233 employees in 2022 and 290 employees in 2021 by the Duke Energy Registrants within Operation, maintenance and other on the Consolidated Statements of Operations.

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Year Ended December 31, 2023**(a)(b)(c)**			$	102		$	53		$	33		$	21		$	12		$	3		$	6		$	4
Year Ended December 31, 2022(d)(e)			65			40			20			17			3			1			2			2
Year Ended December 31, 2021(f)(g)			69			33			26			20			6			2			3			2

(a) Includes amortization of deferred severance charges of approximately $22 million, $14 million, $8 million and $8 million for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(b) Includes adjustments associated with 2021 severance charges of approximately $(6) million, $(2) million, $(3) million, $(2) million, $(1) million and $(1) million for Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively.

(c) Includes adjustments associated with 2022 severance charges of approximately $(14) million, $(7) million, $(5) million, $(3) million, $(2) million, $(1) million and $(1) million for Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana, respectively.

(d) Includes amortization of deferred severance charges of approximately $33 million, $22 million, $11 million and $11 million for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(e) Includes adjustments associated with 2021 severance charges of approximately $(19) million, $(6) million, $(8) million, $(4) million, $(4) million, $(1) million, $(2) million and $(1) million for Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont, respectively.

(f) Includes amortization of deferred severance charges of approximately $33 million, $22 million, $11 million and $11 million for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(g) Includes adjustments associated with 2018 severance charges of approximately $(3) million, $(2) million and $(1) million for Duke Energy, Duke Energy Carolinas and Duke Energy Indiana, respectively.

FINANCIAL STATEMENTS			SEVERANCE

The table below presents the severance liability for past and ongoing severance plans including the plans described above.

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Balance at December 31, 2021			$	39		$	2		$	2		$	1		$	1		$	—		$	—		$	—
Provision/Adjustments			33			14			4			3			1			—			—			1
Cash Reductions			(8)			(1)			—			—			—			—			—			—
Balance at December 31, 2022			$	64		$	15		$	6		$	4		$	2		$	—		$	—		$	1
Provision/Adjustments			80			30			13			6			7			1			4			2
Cash Reductions			(42)			(10)			(3)			(2)			(1)			—			—			(1)
Balance at December 31, 2023			$	102		$	35		$	16		$	8		$	8		$	1		$	4		$	2

22. STOCK-BASED COMPENSATION

The Duke Energy Corporation 2023 Long-Term Incentive Plan (the 2023 Plan) provides for the grant of stock-based compensation awards to employees and outside directors. The 2023 Plan supersedes the Duke Energy Corporation 2015 Long-Term Incentive Plan (the 2015 Plan). No additional grants will be made from the 2015 Plan. The 2023 Plan reserved 15 million shares of common stock for issuance. Duke Energy has historically issued new shares upon exercising or vesting of share-based awards. However, Duke Energy may use a combination of new share issuances and open market repurchases for share-based awards that are exercised or vest in the future. Duke Energy has not determined with certainty the amount of such new share issuances or open market repurchases.

The following table summarizes the total expense recognized by the Duke Energy Registrants, net of tax, for stock-based compensation.

			Years Ended December 31,
(in millions)			2023						2022						2021
Duke Energy			$	71					$	74					$	64
Duke Energy Carolinas			25						27						23
Progress Energy			28						27						24
Duke Energy Progress			17						17						15
Duke Energy Florida			11						10						9
Duke Energy Ohio			5						5						5
Duke Energy Indiana			7						7						6
Piedmont			4						4						3

Duke Energy's pretax stock-based compensation costs, the tax benefit associated with stock-based compensation expense and stock-based compensation costs capitalized are included in the following table.

			Years Ended December 31,
(in millions)			2023						2022						2021
RSU awards			$	54					$	58					$	49
Performance awards			43						42						39
Pretax stock-based compensation cost			$	97					$	100					$	88
Stock-based compensation costs capitalized			6						5						5
Stock-based compensation expense			$	91					$	95					$	83
Tax benefit associated with stock-based compensation expense			$	20					$	21					$	19

RESTRICTED STOCK UNIT AWARDS

RSU awards generally vest over periods from immediate to three years. Fair value amounts are based on the market price of Duke Energy's common stock on the grant date. The following table includes information related to RSU awards.

			Years Ended December 31,
			2023						2022						2021
Shares granted (in thousands)			670						654						673
Fair value (in millions)			$	65					$	64					$	59

FINANCIAL STATEMENTS			STOCK-BASED COMPENSATION

The following table summarizes information about RSU awards outstanding.

									Weighted Average
			Shares						Grant Date Fair Value
			(in thousands)						(per share)
Outstanding at December 31, 2022			1,097						$	95
Granted			670						97
Vested			(548)						95
Forfeited			(104)						96
Outstanding at December 31, 2023			1,115						96
RSU awards expected to vest			1,064						96

The total grant date fair value of shares vested during the years ended December 31, 2023, 2022 and 2021, was $52 million, $49 million and $45 million, respectively. At December 31, 2023, Duke Energy had $33 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of 23 months.

PERFORMANCE AWARDS

Stock-based performance awards generally vest after three years to the extent performance targets are met. The actual number of shares issued will range from zero to 200% of target shares, depending on the level of performance achieved.

Performance awards contain performance conditions and a market condition. The performance conditions are based on Duke Energy's cumulative adjusted EPS and total incident case rate (total incident case rate is one of our key employee safety metrics). The market condition is based on TSR of Duke Energy relative to a predefined peer group.

Relative TSR is valued using a path-dependent model that incorporates expected relative TSR into the fair value determination of Duke Energy’s performance-based share awards. The model uses three-year historical volatilities and correlations for all companies in the predefined peer group, including Duke Energy, to simulate Duke Energy’s relative TSR as of the end of the performance period. For each simulation, Duke Energy’s relative TSR associated with the simulated stock price at the end of the performance period plus expected dividends within the period results in a value per share for the award portfolio. The average of these simulations is the expected portfolio value per share. Actual life to date results of Duke Energy’s relative TSR for each grant are incorporated within the model. For performance awards granted in 2023, the model used a risk-free interest rate of 4.43%, which reflects the yield on three-year Treasury bonds as of the grant date, and an expected volatility of 28.6% based on Duke Energy's historical volatility over three years using daily stock prices.

The following table includes information related to stock-based performance awards.

			Years Ended December 31,
			2023						2022						2021
Shares granted assuming target performance (in thousands)			422						408						380
Fair value (in millions)			$	42					$	40					$	33

The following table summarizes information about stock-based performance awards outstanding and assumes payout at the target level.

									Weighted Average
			Shares						Grant Date Fair Value
			(in thousands)						(per share)
Outstanding at December 31, 2022			1,033						$	97
Granted			422						100
Vested			(298)						105
Forfeited			(42)						98
Outstanding at December 31, 2023			1,115						96
Stock-based performance awards expected to vest			1,086						96

The total grant date fair value of shares vested during the years ended December 31, 2023, 2022 and 2021, was $31 million, $25 million and $25 million, respectively. At December 31, 2023, Duke Energy had $23 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of 22 months.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

23. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans, which consist of the Duke Energy Retirement Cash Balance Plan (RCBP) and the Duke Energy Legacy Pension Plan (DELPP) These plans cover most employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings, age or age and years of service and interest credits. Certain employees are eligible for benefits that use a final average earnings formula. Under these final average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-, four- or five-year average earnings, (ii) highest three-, four- or five-year average earnings in excess of covered compensation per year of participation (maximum of 35 years) or (iii) highest three-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans that cover certain executives. The qualified and non-qualified, non-contributory defined benefit plans are closed to new participants.

Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan assets on December 31, 2023, were primarily attributable to actual investment performance that exceeded expected investment performance. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2023 were primarily attributable to the decrease in the discount rate used to measure plan obligations. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan assets on December 31, 2022, were primarily attributable to actual investment performance that was less than expected investment performance. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2022, were primarily attributable to the increase in the discount rate used to measure plan obligations.

As a result of the application of settlement accounting due to total lump-sum benefit payments exceeding the settlement threshold (defined as the sum of service cost and interest cost on projected benefit obligation components of net periodic benefit costs) for one of its qualified pension plans, Duke Energy recognized settlement charges of $117 million, of which $95 million was recorded to Regulatory Assets within Other Noncurrent Assets on the Consolidated Balance Sheets and $22 million was recorded to Other income and expenses, net, within the Consolidated Statement of Operations as of December 31, 2022.

Settlement charges recognized by the Subsidiary Registrants as of December 31, 2022, which represent amounts allocated by Duke Energy for employees of the Subsidiary Registrants and allocated charges for their proportionate share of settlement charges for employees of Duke Energy's shared services affiliate, and recorded to Regulatory Assets within Other Noncurrent Assets on the Consolidated Balance Sheets were $35 million for Duke Energy Carolinas, $23 million for Progress Energy, $16 million for Duke Energy Progress, $7 million for Duke Energy Florida, $8 million for Duke Energy Indiana and $29 million for Piedmont. Settlement charges recognized by the Subsidiary Registrants as of December 31, 2022, recorded to Other income and expenses, net, within the Consolidated Statement of Operations were $3 million for Duke Energy Carolinas, $5 million for Progress Energy, $5 million for Duke Energy Progress, $1 million for Duke Energy Florida, $5 million for Duke Energy Ohio and $6 million for Piedmont.

The settlement charges reflect the recognition of a pro-rata portion of previously unrecognized actuarial losses, equal to the percentage of reduction in the projected benefit obligation resulting from total lump-sum benefit payments as of December 31, 2022. Settlement charges recognized as a regulatory asset within Other Noncurrent Assets on the Consolidated Balance Sheets are amortized over the average remaining service period for participants in the plan. Amortization of settlement charges is disclosed in the tables below as a component of net periodic pension costs.

Effective December 31, 2022, Duke Energy Florida changed its method for calculating the market related value of plan assets (MRVA) from the fair value method to a method that recognizes changes in fair value of its plan assets over a five-year period. This represents a change in regulatory treatment that will serve to mitigate the impact of market volatility on retail customer rates, resulting in the timing of net periodic pension cost recognition that is more consistent with treatment of the related cost in the ratemaking process. The three-year retrospective impact of this method change of $24 million was recognized by Duke Energy, Progress Energy and Duke Energy Florida, respectively, and was recorded to Other income and expenses, net, within the Consolidated Statement of Operations as of December 31, 2022, and has been disclosed in the tables below as a component of net periodic pension costs.

Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented prior to capitalization of amounts reflected as Net property, plant and equipment, on the Consolidated Balance Sheets. Only the service cost component of net periodic benefit costs is eligible to be capitalized. The remaining non-capitalized portions of net periodic benefit costs are classified as either: (1) service cost, which is recorded in Operations, maintenance and other on the Consolidated Statements of Operations; or as (2) components of non-service cost, which is recorded in Other income and expenses, net on the Consolidated Statements of Operations. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit cost allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Consolidated Statements of Operations of the Subsidiary Registrants also include allocated net periodic benefit costs for their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy’s shared services affiliate that provide support to the Subsidiary Registrants. However, in the tables below, these amounts are only presented within the Duke Energy column (except for amortization of settlement charges). These allocated amounts are included in the governance and shared service costs discussed in Note 14.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Duke Energy’s policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants’ contributions to its qualified defined benefit pension plans. There were no contributions made in the year ended December 31, 2021.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Contributions Made:
2023			$	100					$	26					$	22					$	13					$	9					$	5					$	8					$	3
2022			58						15						13						8						5						3						5						2

QUALIFIED PENSION PLANS

Components of Net Periodic Pension Costs

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	117					$	38					$	33					$	19					$	13					$	3					$	6					$	4
Interest cost on projected benefit obligation			344						84						107						49						57						18						27						9
Expected return on plan assets			(588)						(160)						(198)						(93)						(104)						(24)						(40)						(20)
Amortization of actuarial loss			10						2						4						2						2						—						2						—
Amortization of prior service credit			(14)						(1)						—						—						—						—						(2)						(7)
Amortization of settlement charges			19						9						5						3						1						—						1						4
Net periodic pension costs(a)(b)			$	(112)					$	(28)					$	(49)					$	(20)					$	(31)					$	(3)					$	(6)					$	(10)

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	152					$	48					$	43					$	25					$	17					$	4					$	9					$	5
Interest cost on projected benefit obligation			249						59						77						35						41						13						20						8
Expected return on plan assets			(558)						(152)						(183)						(88)						(94)						(23)						(37)						(24)
Amortization of actuarial loss			81						16						23						12						12						4						9						5
Amortization of prior service credit			(18)						(3)						—						—						—						—						(2)						(7)
Amortization of settlement charges(c)			32						9						8						7						1						5						1						7
MRVA method change			24						—						24						—						24						—						—						—
Net periodic pension costs(a)(b)			$	(38)					$	(23)					$	(8)					$	(9)					$	1					$	3					$	—					$	(6)

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

			Year Ended December 31, 2021
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	176					$	56					$	50					$	29					$	21					$	5					$	10					$	6
Interest cost on projected benefit obligation			220						51						70						30						39						13						18						7
Expected return on plan assets			(558)						(141)						(187)						(84)						(102)						(28)						(40)						(20)
Amortization of actuarial loss			133						29						38						18						20						7						13						10
Amortization of prior service credit			(29)						(8)						(2)						(1)						(1)						(1)						(2)						(9)
Amortization of settlement charges			9						5						2						2						1						—						—						1
Net periodic pension costs(a)(b)			$	(49)					$	(8)					$	(29)					$	(6)					$	(22)					$	(4)					$	(1)					$	(5)

(a) Duke Energy amounts exclude $3 million, $3 million and $3 million for the years ended December 2023, 2022 and 2021, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2023, 2022 and 2021, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(c) Includes settlement charges not deferred as a regulatory asset.

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net increase (decrease)			$	5					$	(14)					$	8					$	—					$	9					$	(3)					$	(2)					$	13
Accumulated other comprehensive loss (income)
Deferred income tax expense			$	—					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Amortization of prior year actuarial losses			(2)						—						—						—						—						—						—						—
Net amount recognized in accumulated other comprehensive income			$	(2)					$	—					$	—					$	—					$	—					$	—					$	—					$	—

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net increase (decrease)			$	367					$	221					$	107					$	101					$	5					$	(1)					$	(12)					$	9
Accumulated other comprehensive loss (income)
Deferred income tax expense			$	(7)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—
Amortization of prior year actuarial losses			37						—						2						—						—						—						—						—
Net amount recognized in accumulated other comprehensive income			$	30					$	—					$	1					$	—					$	—					$	—					$	—					$	—

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Reconciliation of Funded Status to Net Amount Recognized

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date			$	6,358					$	1,554					$	1,975					$	909					$	1,055					$	333					$	499					$	170
Service cost			110						36						30						18						12						3						6						3
Interest cost			344						84						107						49						57						18						27						9
Actuarial loss			94						11						47						18						29						2						4						9
Benefits paid			(607)						(177)						(159)						(80)						(78)						(31)						(40)						(16)
Transfers			—						6						(10)						(3)						(6)						—						—						—
Obligation at measurement date			$	6,299					$	1,514					$	1,990					$	911					$	1,069					$	325					$	496					$	175
Accumulated Benefit Obligation at measurement date			$	6,267					$	1,517					$	1,975					$	912					$	1,053					$	317					$	494					$	176
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	6,993					$	1,815					$	2,371					$	1,083					$	1,271					$	323					$	501					$	203
Employer contributions			100						26						22						13						9						5						8						3
Actual return on plan assets			676						183						229						107						120						29						45						23
Benefits paid			(607)						(177)						(159)						(80)						(78)						(31)						(40)						(16)
Transfers			—						6						(10)						(3)						(6)						—						—						—
Plan assets at measurement date			$	7,162					$	1,853					$	2,453					$	1,120					$	1,316					$	326					$	514					$	213
Funded status of plan			$	863					$	339					$	463					$	209					$	247					$	1					$	18					$	38

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date			$	8,207					$	1,903					$	2,560					$	1,153					$	1,392					$	450					$	680					$	273
Service cost			145						47						40						24						16						4						8						5
Interest cost			249						59						77						35						41						13						20						8
Actuarial gain			(1,490)						(301)						(513)						(197)						(312)						(84)						(143)						(47)
Benefits paid			(753)						(159)						(184)						(101)						(82)						(50)						(66)						(69)
Transfers			—						5						(5)						(5)						—						—						—						—
Obligation at measurement date			$	6,358					$	1,554					$	1,975					$	909					$	1,055					$	333					$	499					$	170
Accumulated Benefit Obligation at measurement date			$	6,324					$	1,556					$	1,959					$	910					$	1,038					$	327					$	495					$	170
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	9,235					$	2,365					$	3,053					$	1,421					$	1,610					$	438					$	669					$	334
Employer contributions			58						15						13						8						5						3						5						2
Actual return on plan assets			(1,547)						(411)						(506)						(240)						(262)						(68)						(107)						(64)
Benefits paid			(753)						(159)						(184)						(101)						(82)						(50)						(66)						(69)
Transfers			—						5						(5)						(5)						—						—						—						—
Plan assets at measurement date			$	6,993					$	1,815					$	2,371					$	1,083					$	1,271					$	323					$	501					$	203
Funded status of plan			$	635					$	261					$	396					$	174					$	216					$	(10)					$	2					$	33

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Amounts Recognized in the Consolidated Balance Sheets

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded pension(a)			$	863					$	339					$	463					$	209					$	247					$	74					$	105					$	38
Noncurrent pension liability(b)			$	—					$	—					$	—					$	—					$	—					$	73					$	87					$	—
Net asset (liability) recognized			$	863					$	339					$	463					$	209					$	247					$	1					$	18					$	38
Regulatory assets			$	2,021					$	531					$	678					$	353					$	325					$	89					$	176					$	97
Accumulated other comprehensive (income) loss
Deferred income tax benefit			$	(27)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—
Prior service credit			(1)						—						—						—						—						—						—						—
Net actuarial loss			127						—						3						—						—						—						2						—
Net amounts recognized in accumulated other comprehensive loss			$	99					$	—					$	2					$	—					$	—					$	—					$	2					$	—

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded pension(a)			$	885					$	261					$	396					$	174					$	216					$	62					$	90					$	33
Noncurrent pension liability(b)			$	250					$	—					$	—					$	—					$	—					$	72					$	88					$	—
Net asset (liability) recognized			$	635					$	261					$	396					$	174					$	216					$	(10)					$	2					$	33
Regulatory assets			$	2,016					$	545					$	670					$	353					$	316					$	92					$	178					$	84
Accumulated other comprehensive (income) loss
Deferred income tax benefit			$	(27)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—
Prior service credit			(1)						—						—						—						—						—						—						—
Net actuarial loss			129						—						3						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive loss			$	101					$	—					$	2					$	—					$	—					$	—					$	—					$	—

(a) Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets

																		December 31, 2023
																					Duke						Duke
																					Energy						Energy
(in millions)																					Ohio						Indiana
Projected benefit obligation																					$	105					$	208
Accumulated benefit obligation																					100						203
Fair value of plan assets																					31						121

			December 31, 2022
																					Duke						Duke
			Duke																		Energy						Energy
(in millions)			Energy																		Ohio						Indiana
Projected benefit obligation			$	3,323																	$	103					$	198
Accumulated benefit obligation			3,288																		99						193
Fair value of plan assets			3,073																		31						110

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Assumptions Used for Pension Benefits Accounting

The discount rate used to determine the current year pension obligation and following year’s pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The RCBP contains a mostly active participant population while the DELPP contains a mostly inactive participant population. The average remaining service period for RCBP participants is nine years and the average life expectancy of DELPP participants is 15 years. Unrecognized net actuarial gains/losses and prior service credit are amortized over 12 years for Duke Energy and Duke Energy Florida, 14 years for Duke Energy Ohio, 13 years for Duke Energy Indiana, 11 years for Duke Energy Carolinas, Progress Energy and Duke Energy Progress and nine years for Piedmont.

The following tables present the assumptions or range of assumptions used for pension benefit accounting.

						December 31,
						2023												2022												2021
Benefit Obligations
Discount rate												5.40%												5.60%												2.90%
Interest crediting rate												4.15%												4.35%												4.00%
Salary increase						3.50		%	–			4.00%						3.50		%	–			4.00%						3.50		%	–			4.00%
Net Periodic Benefit Cost
Discount rate												5.60%						2.90		%	–			5.70%												2.60%
Interest crediting rate												4.35%												4.00%												4.00%
Salary increase						3.50		%	–			4.00%						3.50		%	–			4.00%						3.50		%	–			4.00%
Expected long-term rate of return on plan assets						6.50		%	–			8.25		%										6.50%												6.50%

Expected Benefit Payments

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Years ending December 31,
2024			$	634		$	176		$	180		$	95		$	84		$	31		$	45		$	18
2025			624			171			182			97			84			30			44			16
2026			601			162			177			89			86			30			43			16
2027			582			153			175			87			86			29			42			15
2028			565			146			171			84			86			29			42			15
2029-2033			2,481			590			779			355			420			131			200			73

NON-QUALIFIED PENSION PLANS

The accumulated benefit obligation, which equals the projected benefit obligation for non-qualified pension plans, was $224 million for Duke Energy, $10 million for Duke Energy Carolinas, $78 million for Progress Energy, $23 million for Duke Energy Progress, $31 million for Duke Energy Florida, $2 million for Duke Energy Ohio, $2 million for Duke Energy Indiana and $2 million for Piedmont as of December 31, 2023.

Employer contributions, which equal benefits paid for non-qualified pension plans, were $24 million for Duke Energy, $1 million for Duke Energy Carolinas, $8 million for Progress Energy, $3 million for Duke Energy Progress and $3 million for Duke Energy Florida for the year ended December 31, 2023. Employer contributions were not material for Duke Energy Ohio, Duke Energy Indiana or Piedmont for the year ended December 31, 2023.

Net periodic pension costs for non-qualified pension plans were not material for the years ended December 31, 2023, 2022 or 2021.

OTHER POST-RETIREMENT BENEFIT PLANS

Duke Energy provides, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have satisfied the applicable eligibility requirements (e.g., age and service) at retirement, as defined in the plans. The health care benefits include medical, dental, vision and prescription drug coverage and are subject to certain limitations, such as deductibles and copayments.

Duke Energy did not make any pre-funding contributions to its other post-retirement benefit plans during the years ended December 31, 2023, 2022 or 2021.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Components of Net Periodic Other Post-Retirement Benefit Costs

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	2					$	1					$	—					$	—					$	—					$	—					$	—					$	—
Interest cost on accumulated post-retirement benefit obligation			22						5						9						5						4						1						1						1
Expected return on plan assets			(11)						(7)						—						—						—						—						—						(2)
Amortization of actuarial (gain) loss			(6)						(3)						8						5						2						(2)						(3)						—
Amortization of prior service credit			(23)						(5)						(11)						(6)						(5)						—						(5)						—
Net periodic post-retirement benefit costs (a)(b)			$	(16)					$	(9)					$	6					$	4					$	1					$	(1)					$	(7)					$	(1)

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	3					$	1					$	—					$	—					$	—					$	—					$	—					$	—
Interest cost on accumulated post-retirement benefit obligation			17						4						7						4						3						1						1						1
Expected return on plan assets			(10)						(6)						—						—						—						—						—						(2)
Amortization of actuarial loss			2						—						1						1						1						—						—						—
Amortization of prior service credit			(8)						(3)						(2)						(1)						(1)						—						—						(2)
Net periodic post-retirement benefit costs(a)(b)			$	4					$	(4)					$	6					$	4					$	3					$	1					$	1					$	(3)

			Year Ended December 31, 2021
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	4					$	1					$	1					$	—					$	—					$	—					$	1					$	—
Interest cost on accumulated post-retirement benefit obligation			18						4						7						4						3						1						1						1
Expected return on plan assets			(11)						(7)						—						—						—						—						—						(2)
Amortization of actuarial loss			2						—						1						—						1						—						4						—
Amortization of prior service credit			(13)						(4)						(2)						(1)						(1)						(1)						(1)						(2)
Net periodic post-retirement benefit costs(a)(b)			$	—					$	(6)					$	7					$	3					$	3					$	—					$	5					$	(3)

(a) Duke Energy amounts exclude $4 million, $4 million and $5 million for the years ended December 2023, 2022 and 2021, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2023, 2022 and 2021, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net increase (decrease)			$	73					$	79					$	(7)					$	(5)					$	—					$	(2)					$	(2)					$	1
Regulatory liabilities, net increase (decrease)			$	41					$	62					$	—					$	—					$	—					$	(4)					$	(8)					$	—
Accumulated other comprehensive (income) loss
Amortization of prior year service credit			$	1					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Amortization of prior year actuarial gain			—						—						(1)						—						—						—						—						—
Net amount recognized in accumulated other comprehensive income			$	1					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net (decrease) increase			$	(79)					$	—					$	(80)					$	(45)					$	(36)					$	—					$	(3)					$	—
Regulatory liabilities, net increase (decrease)			$	27					$	—					$	—					$	—					$	—					$	—					$	19					$	(5)
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain			$	1					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Net amount recognized in accumulated other comprehensive income			$	1					$	—					$	—					$	—					$	—					$	—					$	—					$	—

Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date			$	437					$	112					$	168					$	95					$	69					$	20					$	30					$	21
Service cost			2						1						—						—						—						—						—						—
Interest cost			22						5						9						5						4						1						1						1
Plan participants' contributions			4						1						1						1						1						—						—						—
Actuarial (gains) losses			(10)						(2)						(10)						(6)						(4)						1						(1)						1
Transfers			(50)						(34)						—						—						—						—						—						(6)
Benefits paid			(58)						(14)						(22)						(11)						(10)						(3)						(6)						(2)
Accumulated post-retirement benefit obligation at measurement date			$	347					$	69					$	146					$	84					$	60					$	19					$	24					$	15
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	162					$	105					$	—					$	(2)					$	(2)					$	7					$	3					$	31
401(h) asset transfers			—						(8)						—						—						—						—						—						—
Actual return on plan assets			19						8						—						—						—						1						—						4
Benefits paid			(58)						(14)						(22)						(11)						(10)						(3)						(6)						(2)
Transfers			(13)						4						—						—						—						—						—						(7)
Employer contributions			42						6						20						11						10						2						6						1
Plan participants' contributions			4						1						1						1						1						—						—						—
Plan assets at measurement date			$	156					$	102					$	(1)					$	(1)					$	(1)					$	7					$	3					$	27
Funded status of plan			$	(191)					$	33					$	(147)					$	(85)					$	(61)					$	(12)					$	(21)					$	12

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date			$	625					$	149					$	263					$	147					$	112					$	25					$	54					$	27
Service cost			3						1						—						—						—						—						—						—
Interest cost			17						4						7						4						3						1						1						1
Plan participants' contributions			11						2						4						2						2						1						1						—
Actuarial gains			(80)						(17)						(43)						(27)						(16)						(3)						(1)						(5)
Plan amendments			(71)						(11)						(37)						(18)						(19)						—						(17)						—
Benefits paid			(68)						(16)						(26)						(13)						(13)						(4)						(8)						(2)
Accumulated post-retirement benefit obligation at measurement date			$	437					$	112					$	168					$	95					$	69					$	20					$	30					$	21
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	211					$	135					$	(1)					$	(2)					$	(2)					$	9					$	6					$	39
Actual return on plan assets			(31)						(19)						—						—						—						(2)						—						(7)
Benefits paid			(68)						(16)						(26)						(13)						(13)						(4)						(8)						(2)
Employer contributions			39						3						23						11						11						3						4						1
Plan participants' contributions			11						2						4						2						2						1						1						—
Plan assets at measurement date			$	162					$	105					$	—					$	(2)					$	(2)					$	7					$	3					$	31
Funded status of plan			$	(275)					$	(7)					$	(168)					$	(97)					$	(71)					$	(13)					$	(27)					$	10

Amounts Recognized in the Consolidated Balance Sheets

			December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded post-retirement benefit			$	—					$	61					$	—					$	—					$	—					$	1					$	—					$	12
Current post-retirement liability(a)			12						3						5						3						2						1						—						—
Noncurrent post-retirement liability(b)			179						25						142						82						59						12						21						—
Net liability (asset) recognized			$	191					$	(33)					$	147					$	85					$	61					$	12					$	21					$	(12)
Regulatory assets			$	123					$	79					$	39					$	29					$	11					$	2					$	23					$	1
Regulatory liabilities			$	230					$	106					$	—					$	—					$	—					$	17					$	74					$	—
Accumulated other comprehensive (income) loss
Deferred income tax expense			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Net actuarial gain			(13)						—						(1)						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	(10)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

			December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded post-retirement benefit			$	—					$	—					$	—					$	—					$	—					$	1					$	—					$	10
Current post-retirement liability(a)			9						—						5						3						2						2						—						—
Noncurrent post-retirement liability(b)			266						7						163						94						69						12						27						—
Net liability (asset) recognized			$	275					$	7					$	168					$	97					$	71					$	13					$	27					$	(10)
Regulatory assets			$	50					$	—					$	46					$	34					$	11					$	4					$	25					$	—
Regulatory liabilities			$	189					$	44					$	—					$	—					$	—					$	21					$	82					$	—
Accumulated other comprehensive (income) loss
Deferred income tax expense			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Prior service credit			(1)						—						—						—						—						—						—						—
Net actuarial gain			(13)						—						—						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	(11)					$	—					$	—					$	—					$	—					$	—					$	—					$	—

(a) Included in Other within Current Liabilities on the Consolidated Balance Sheets.

(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

Assumptions Used for Other Post-Retirement Benefits Accounting

The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period of active covered employees is seven years for Duke Energy, Duke Energy Carolinas and Duke Energy Florida, six years for Duke Energy Ohio, Duke Energy Indiana and Piedmont and five years for Progress Energy and Duke Energy Progress.

The following tables present the assumptions used for other post-retirement benefits accounting.

						December 31,
						2023												2022						2021
Benefit Obligations
Discount rate												5.40		%				5.60		%				2.90		%
Net Periodic Benefit Cost
Discount rate												5.60		%				2.90		%				2.60		%
Expected long-term rate of return on plan assets						6.50		%	–			8.25		%				6.50		%				6.50		%

Assumed Health Care Cost Trend Rate

			December 31,
			2023						2022
Health care cost trend rate assumed for next year – pre-65 trend			6.50		%				6.50		%
Health care cost trend rate assumed for next year – post-65 trend			—		%				6.50		%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)			4.75		%				4.75		%
Year that rate reaches ultimate trend			2031-2032						2030-2032

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Expected Benefit Payments

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Years ending December 31,
2024			$	57		$	14		$	18		$	11		$	8		$	3		$	4		$	2
2025			47			11			17			10			7			3			3			2
2026			42			10			15			9			6			3			3			2
2027			37			8			14			8			6			2			3			2
2028			34			7			13			8			5			2			2			2
2029-2033			124			23			55			32			23			7			8			7

PLAN ASSETS

Description and Allocations

Duke Energy Corporation Master Retirement Trust

Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Corporation Master Retirement Trust. Approximately 98% of the Duke Energy Corporation Master Retirement Trust assets were allocated to qualified pension plans and approximately 2% were allocated to other post-retirement plans (comprised of 401(h) accounts), as of December 31, 2023, and 2022. The investment objective of the Duke Energy Corporation Master Retirement Trust is to invest in a diverse portfolio of assets that is expected to generate positive surplus return over time (i.e., asset growth greater than liability growth) subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.

As of December 31, 2023, Duke Energy assumes qualified pension and other post-retirement plan assets will generate a long-term rate of return of 8.50% for the RCBP pension and RCBP 401(h) account assets and 7.00% for the DELPP pension and DELPP 401(h) account assets. The expected long-term rate of return was developed using a weighted average calculation of expected returns based primarily on future expected returns across asset classes considering the use of active asset managers, where applicable. The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their higher expected returns. Debt securities are primarily held to hedge the qualified pension plan. Return seeking debt securities, hedge funds and other global securities are held for diversification. Investments within asset classes are diversified to achieve broad market participation and reduce the impact of individual managers or investments.

Effective January 1, 2024, the target asset allocation for the RCBP assets is 35% liability hedging and 65% return-seeking assets and the target asset allocation for the DELPP assets is 80% liability hedging assets and 20% return-seeking assets. Duke Energy periodically reviews its asset allocation targets, and over time, as the funded status of the benefit plans increase, the level of asset risk relative to plan liabilities may be reduced to better manage Duke Energy's benefit plan liabilities and reduce funded status volatility.

The Duke Energy Corporation Master Retirement Trust is authorized to engage in the lending of certain plan assets. Securities lending is an investment management enhancement that utilizes certain existing securities of the Duke Energy Corporation Master Retirement Trust to earn additional income. Securities lending involves the loaning of securities to approved parties. In return for the loaned securities, the Duke Energy Corporation Master Retirement Trust receives collateral in the form of cash and securities as a safeguard against possible default of any borrower on the return of the loan under terms that permit the Duke Energy Corporation Master Retirement Trust to sell the securities. The Duke Energy Corporation Master Retirement Trust mitigates credit risk associated with securities lending arrangements by monitoring the fair value of the securities loaned, with additional collateral obtained or refunded as necessary. Effective December 31, 2023, the Duke Energy Corporation Master Retirement Trust discontinued lending plan assets. The fair value of securities on loan was approximately $2 million and $390 million at December 31, 2023, and 2022, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned at December 31, 2023, and 2022, respectively. Securities lending income earned by the Duke Energy Corporation Master Retirement Trust was immaterial for the years ended December 31, 2023, 2022 and 2021, respectively.

Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Corporation Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.

The following table includes the target asset allocations by asset class at December 31, 2023, and the actual asset allocations for the RCBP assets.

									Actual Allocation at
			Target						December 31,
			Allocation						2023						2022
Global equity securities			45		%				45		%				49		%
Global private equity securities			2		%				2		%				2		%
Debt securities			35		%				35		%				30		%
Return seeking debt securities			7		%				6		%				7		%
Hedge funds			4		%				4		%				6		%
Real estate and cash			7		%				8		%				6		%
Total			100		%				100		%				100		%

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

The following table includes the target asset allocations by asset class at December 31, 2023, and the actual asset allocations for the DELPP assets.

									Actual Allocation at
			Target						December 31,
			Allocation						2023						2022
Global equity securities			14		%				14		%				14		%
Global private equity securities			1		%				—		%				—		%
Debt securities			80		%				79		%				80		%
Return seeking debt securities			2		%				2		%				2		%
Hedge funds			1		%				2		%				2		%
Real estate and cash			2		%				3		%				2		%
Total			100		%				100		%				100		%

Other post-retirement assets

Duke Energy's other post-retirement assets are comprised of Voluntary Employees' Beneficiary Association (VEBA) trusts and 401(h) accounts held within the Duke Energy Corporation Master Retirement Trust. Duke Energy's investment objective is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants.

The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2023.

									Actual Allocation at
			Target						December 31,
			Allocation						2023						2022
U.S. equity securities			29		%				30		%				12		%
Non-U.S. equity securities			15		%				15		%				5		%
Real estate			5		%				7		%				3		%
Debt securities			47		%				30		%				11		%
Cash			4		%				18		%				69		%
Total			100		%				100		%				100		%

Fair Value Measurements

Duke Energy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 17.

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 reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When the price of an institutional commingled fund is unpublished, it is not categorized in the fair value hierarchy, even though the funds are readily available at the fair value.

Investments in corporate debt securities and U.S. government securities

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

Investments in short-term investment funds

Investments in short-term investment funds are valued at the net asset value of units held at year end and are readily redeemable at the measurement date. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Duke Energy Corporation Master Retirement Trust

The following tables provide the fair value measurement amounts for the Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets.

			December 31, 2023
			Total Fair																								Not
(in millions)			Value						Level 1						Level 2						Level 3						Categorized**(b)**
Equity securities			$	2,221					$	1,995					$	211					$	—					$	15
Corporate debt securities			2,807						—						2,807						—						—
Short-term investment funds			233						—						233						—						—
Partnership interests			76						—						—						76						—
Hedge funds			164						—						—						—						164
U.S. government securities			1,571						—						1,571						—						—
Governments bonds – foreign			107						—						107						—						—
Cash			7						7						—						—						—
Government and commercial mortgage-backed securities			1						—						1						—						—
Net pending transactions and other investments			54						40						14						—						—
Total assets(a)			$	7,241					$	2,042					$	4,944					$	76					$	179

(a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%, respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2023. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

			December 31, 2022
			Total Fair																								Not
(in millions)			Value						Level 1						Level 2						Level 3						Categorized**(b)**
Equity securities			$	2,234					$	2,014					$	194					$	—					$	26
Corporate debt securities			2,944						—						2,944						—						—
Short-term investment funds			193						1						192						—						—
Partnership interests			62						—						—						62						—
Hedge funds			209						—						—						—						209
U.S. government securities			1,254						—						1,254						—						—
Governments bonds – foreign			112						—						112						—						—
Cash			45						45						—						—						—
Government and commercial mortgage-backed securities			6						—						6						—						—
Net pending transactions and other investments			14						5						9						—						—
Total assets(a)			$	7,073					$	2,065					$	4,711					$	62					$	235

(a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%, respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2022. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

The following table provides a reconciliation of beginning and ending balances of Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).

(in millions)			2023						2022
Balance at January 1			$	62					$	95
Sales			(8)						(18)
Total gains and other, net			22						(8)
Transfer of Level 3 assets from other classifications			—						(7)
Balance at December 31			$	76					$	62

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Other post-retirement assets

The following tables provide the fair value measurement amounts for VEBA trust assets.

			December 31, 2023
			Total Fair
(in millions)			Value												Level 2
Cash and cash equivalents			$	4											$	4
Real estate			1												1
Equity securities			9												9
Debt securities			6												6
Total assets			$	20											$	20

			December 31, 2022
			Total Fair
(in millions)			Value												Level 2
Cash and cash equivalents			$	11											$	11
Real estate			2												2
Equity securities			12												12
Debt securities			8												8
Total assets			$	33											$	33

EMPLOYEE SAVINGS PLANS

Retirement Savings Plan

Duke Energy Corporation sponsors, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100% of employee before-tax and Roth 401(k) contributions of up to 6% of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS. For new and rehired employees who are not eligible to participate in Duke Energy’s defined benefit plans, an additional employer contribution of 4% of eligible pay per pay period, which is subject to a three-year vesting schedule, is provided to the employee’s savings plan account.

The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Years ended December 31,
2023			$	238					$	75					$	62					$	40					$	22					$	6					$	13					$	13
2022			246						76						65						43						22						6						12						13
2021			229						70						60						39						21						5						12						11

24. INCOME TAXES

Inflation Reduction Act

On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions included, among other provisions, the extension and modification of existing investment and PTCs for projects placed in service through 2024 and introduced new technology-neutral clean energy related credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.

There were no material impacts on the results of operations, financial position, or cash flows in the periods presented for the Duke Energy Registrants as a result of the IRA being signed into law. Based on the review of the IRA provisions, future annual cash flow impacts related to the energy credits could be material to the Duke Energy Registrants. However, the majority of Duke Energy's operations are regulated and the FERC and state utility commissions will determine the regulatory treatment. We anticipate the Subsidiary Registrants will defer and expect to pass along the net financial impact associated with the IRA to customers over time. See Note 4 for further details on the IRA as it relates to Duke Energy Florida. Duke Energy will continue to assess the IRA as new information and anticipated guidance from the U.S. Department of the Treasury becomes available.

FINANCIAL STATEMENTS			INCOME TAXES

North Carolina's 2021 Appropriations Act

On November 18, 2021, North Carolina Senate Bill 105 (SB 105) was signed into law. Starting with tax year 2025, SB 105 begins phasing out the North Carolina corporate income tax rate over five years, from a statutory rate of 2.5% to zero. Duke Energy recorded a net reduction of approximately $490 million to its North Carolina deferred tax liability in the fourth quarter of 2021. The majority of this deferred tax liability reduction was offset by recording a regulatory liability pending NCUC determination of the disposition of the amounts related to Duke Energy Carolinas, Duke Energy Progress and Piedmont. In addition, Duke Energy recorded a net reduction of North Carolina consolidating deferred tax assets of approximately $25 million to deferred state income tax expense in the fourth quarter of 2021. North Carolina SB 105 did not have a significant impact on the financial position, results of operation, or cash flows of Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress or Piedmont.

Income Tax Expense

Components of Income Tax Expense

Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See Note 2 for further details.

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal(b)			$	71		$	173		$	459		$	198		$	279		$	(46)		$	10		$	44
State			1			22			38			4			71			(3)			9			3
Foreign			3			—			—			—			—			—			—			—
Total current income taxes			75			195			497			202			350			(49)			19			47
Deferred income taxes
Federal			319			(43)			(154)			(69)			(89)			111			77			25
State			53			(7)			38			19			—			1			14			12
Total deferred income taxes(a)			372			(50)			(116)			(50)			(89)			112			91			37
ITC amortization			(9)			(4)			(4)			(3)			—			—			—			—
Income tax expense from continuing operations			438			141			377			149			261			63			110			84
Tax benefit from discontinued operations			(359)			—			—			—			—			—			—			—
Total income tax expense included in Consolidated Statements of Operations			$	79		$	141		$	377		$	149		$	261		$	63		$	110		$	84

(a) Total deferred income taxes includes the utilization of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida, $22 million at Duke Energy Ohio, and $15 million at Piedmont.

(b) Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell $28 million of PTCs generated by Duke Energy Florida. Cash received and paid related to the transfer of tax credits is included in Cash paid for (received from) income taxes on the Consolidated Statements of Cash Flows.

FINANCIAL STATEMENTS			INCOME TAXES

			Year Ended December 31, 2022
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal			$	1		$	(71)		$	(13)		$	37		$	(37)		$	(2)		$	38		$	32
State			(8)			(13)			(3)			—			(23)			1			2			2
Foreign			4			—			—			—			—			—			—			—
Total current income taxes			(3)			(84)			(16)			37			(60)			(1)			40			34
Deferred income taxes
Federal			328			230			310			118			201			(22)			(63)			12
State			(14)			(16)			59			7			84			3			—			(7)
Total deferred income taxes(a)			314			214			369			125			285			(19)			(63)			5
ITC amortization			(11)			(4)			(5)			(4)			—			(1)			(1)			—
Income tax expense from continuing operations			300			126			348			158			225			(21)			(24)			39
Tax benefit from discontinued operations			(503)			—			—			—			—			—			—			—
Total income tax (benefit) expense included in Consolidated Statements of Operations			$	(203)		$	126		$	348		$	158		$	225		$	(21)		$	(24)		$	39

(a) Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $550 million at Duke Energy, $97 million at Duke Energy Carolinas, $128 million at Progress Energy, $9 million at Duke Energy Progress, $111 million at Duke Energy Florida, $7 million at Duke Energy Ohio, $13 million at Duke Energy Indiana, and $12 million at Piedmont.

			Year Ended December 31, 2021
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal			$	(2)		$	241		$	(15)		$	113		$	(75)		$	(8)		$	65		$	23
State			1			23			(4)			8			(17)			(2)			7			3
Foreign			2			—			—			—			—			—			—			—
Total current income taxes			1			264			(19)			121			(92)			(10)			72			26
Deferred income taxes
Federal			275			(130)			203			(16)			202			35			19			17
State			—			(79)			47			(26)			77			5			16			(13)
Total deferred income taxes(a)			275			(209)			250			(42)			279			40			35			4
ITC amortization			(8)			(4)			(4)			(4)			—			—			—			—
Income tax expense from continuing operations			268			51			227			75			187			30			107			30
Tax benefit from discontinued operations			(76)			—			—			—			—			—			—			—
Total income tax expense included in Consolidated Statements of Operations			$	192		$	51		$	227		$	75		$	187		$	30		$	107		$	30

(a) Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $32 million at Duke Energy Carolinas, $8 million at Duke Energy Indiana, and $3 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $250 million at Duke Energy, $95 million at Progress Energy, $14 million at Duke Energy Progress, $64 million at Duke Energy Florida and $2 million at Duke Energy Ohio.

Duke Energy Income from Continuing Operations before Income Taxes

			Years Ended December 31,
(in millions)			2023						2022						2021
Domestic			$	4,700					$	3,991					$	3,947
Foreign			67						87						44
Income from continuing operations before income taxes			$	4,767					$	4,078					$	3,991

FINANCIAL STATEMENTS			INCOME TAXES

Statutory Rate Reconciliation

The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Income tax expense, computed at the statutory rate of 21%			$	1,001		$	338		$	490		$	241		$	268		$	83		$	128		$	97
State income tax, net of federal income tax effect			43			12			60			18			56			(2)			18			12
Amortization of EDIT			(388)			(197)			(114)			(91)			(23)			(22)			(33)			(20)
AFUDC equity income			(41)			(19)			(14)			(11)			(3)			(2)			(2)			(4)
AFUDC equity depreciation			37			18			13			6			7			2			4			—
Tax credits(b)			(63)			(11)			(46)			(7)			(39)			(2)			(2)			(1)
Interest on company-owned life insurance(a)			(114)			—			—			—			—			—			—			—
Other items, net			(37)			—			(12)			(7)			(5)			6			(3)			—
Income tax expense from continuing operations			$	438		$	141		$	377		$	149		$	261		$	63		$	110		$	84
Effective tax rate			9.2		%	8.8		%	16.2		%	13.0		%	20.4		%	15.9		%	18.1		%	18.1		%

(a) During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income tax, net of federal income tax effect, in the above table.

(b) Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA. Cash received and paid related to the transfer of tax credits is included in Cash paid for (received from) income taxes on the Consolidated Statements of Cash Flows.

			Year Ended December 31, 2022
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Income tax expense, computed at the statutory rate of 21%			$	856		$	362		$	457		$	245		$	238		$	59		$	24		$	76
State income tax, net of federal income tax effect			(17)			(23)			44			6			48			3			2			(4)
Amortization of EDIT			(481)			(195)			(133)			(74)			(59)			(79)			(48)			(23)
AFUDC equity income			(41)			(20)			(14)			(11)			(3)			(1)			(2)			(2)
AFUDC equity depreciation			36			18			12			6			6			1			4			—
Other tax credits			(43)			(12)			(16)			(9)			(7)			(2)			(3)			(8)
Other items, net			(10)			(4)			(2)			(5)			2			(2)			(1)			—
Income tax expense (benefit) from continuing operations			$	300		$	126		$	348		$	158		$	225		$	(21)		$	(24)		$	39
Effective tax rate			7.4		%	7.3		%	16.0		%	13.6		%	19.8		%	(7.5)		%	(21.2)		%	10.8		%

FINANCIAL STATEMENTS			INCOME TAXES

			Year Ended December 31, 2021
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Income tax expense, computed at the statutory rate of 21%			$	838		$	291		$	384		$	224		$	194		$	49		$	123		$	71
State income tax, net of federal income tax effect			1			(44)			34			(14)			47			2			18			(8)
Amortization of EDIT			(438)			(184)			(174)			(120)			(54)			(22)			(34)			(25)
AFUDC equity income			(34)			(14)			(11)			(7)			(3)			(2)			(4)			(4)
AFUDC equity depreciation			35			18			10			5			5			2			5			—
Other tax credits			(30)			(12)			(11)			(8)			(3)			(1)			(2)			(4)
Valuation allowance(a)			(85)			—			—			—			—			—			—			—
Other items, net			(19)			(4)			(5)			(5)			1			2			1			—
Income tax expense from continuing operations			$	268		$	51		$	227		$	75		$	187		$	30		$	107		$	30
Effective tax rate			6.7		%	3.7		%	12.4		%	7.0		%	20.2		%	12.8		%	18.2		%	8.8		%

(a) In 2021, the Company recognized a federal capital gain in the amount of $426 million. As a result, a valuation allowance of $85 million related to a federal capital loss carryforward was released. This valuation allowance was originally recorded as a result of the 2019 sale of minority interest of certain renewable assets within the Commercial Renewables Disposal Groups.

Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in state income tax, net of federal income tax effect, in the above tables.

DEFERRED TAXES

Net Deferred Income Tax Liability Components

			December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Deferred credits and other liabilities			$	327		$	194		$	77		$	21		$	56		$	13		$	18		$	42
Lease obligations			418			86			256			179			77			4			15			3
Pension, post-retirement and other employee benefits			65			(41)			(22)			(1)			(25)			5			2			(5)
Progress Energy merger purchase accounting adjustments(a)			260			—			—			—			—			—			—			—
Tax credits and NOL carryforwards			4,489			445			686			230			425			44			154			50
Regulatory liabilities and deferred credits			—			—			—			—			—			—			47			—
Investments and other assets			—			—			—			—			—			—			1			—
Other			102			29			22			12			8			5			5			9
Valuation allowance			(544)			—			—			—			—			—			—			—
Total deferred income tax assets			5,117			713			1,019			441			541			71			242			99
Investments and other assets			(1,812)			(1,213)			(596)			(520)			(91)			—			—			(37)
Accelerated depreciation rates			(11,969)			(3,411)			(4,557)			(1,823)			(2,778)			(1,314)			(1,678)			(944)
Regulatory assets and deferred debits, net			(1,892)			(468)			(1,063)			(658)			(405)			(29)			—			(51)
Total deferred income tax liabilities			(15,673)			(5,092)			(6,216)			(3,001)			(3,274)			(1,343)			(1,678)			(1,032)
Net deferred income tax liabilities			$	(10,556)		$	(4,379)		$	(5,197)		$	(2,560)		$	(2,733)		$	(1,272)		$	(1,436)		$	(933)

(a) Primarily related to lease obligations and debt fair value adjustments.

FINANCIAL STATEMENTS			INCOME TAXES

The following table presents the expiration of tax credits and NOL carryforwards.

			December 31, 2023
(in millions)			Amount						Expiration Year
General Business Credits			$	2,388					2029						—						2043
Foreign Tax Credits(d)			1,155						2024						—						2028
State Carryforwards and Credits(b) (e)			390						2024						—						Indefinite
Corporate AMT Credits			278																		Indefinite
Federal Capital Loss(f)			73						2027						—						2028
Federal NOL carryforwards(a) (e)			193						2024						—						Indefinite
Foreign NOL carryforwards(c)			12						2027						—						2038
Total tax credits and NOL carryforwards			$	4,489

(a) A valuation allowance of $4 million has been recorded on the Federal NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.

(b) A valuation allowance of $110 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.

(c) A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.

(d) A valuation allowance of $389 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.

(e) Indefinite carryforward for Federal NOLs, and NOLs for states that have adopted the Tax Act's NOL provisions, generated in tax years beginning after December 31, 2017.

(f) A valuation allowance of $29 million has been recorded on the Federal Capital Loss, as presented in the Net Deferred Income Tax Liability Components table.

			December 31, 2022
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Deferred credits and other liabilities			$	348		$	170		$	117		$	33		$	83		$	12		$	23		$	24
Lease obligations			405			89			263			197			65			4			15			3
Pension, post-retirement and other employee benefits			192			(1)			12			18			(10)			9			10			(2)
Progress Energy merger purchase accounting adjustments(a)			301			—			—			—			—			—			—			—
Tax credits and NOL carryforwards			4,426			444			618			167			412			20			208			37
Regulatory liabilities and deferred credits			—			—			—			—			—			3			61			—
Investments and other assets			—			—			—			—			—			3			—			—
Other			106			18			22			12			10			5			2			9
Valuation allowance			(519)			—			—			—			—			—			—			—
Total deferred income tax assets			5,259			720			1,032			427			560			56			319			71
Investments and other assets			(1,671)			(983)			(521)			(432)			(102)			—			(12)			(28)
Accelerated depreciation rates			(11,478)			(3,410)			(4,358)			(1,844)			(2,576)			(1,192)			(1,606)			(892)
Regulatory assets and deferred debits, net			(2,074)			(480)			(1,300)			(628)			(671)			—			—			(21)
Total deferred income tax liabilities			(15,223)			(4,873)			(6,179)			(2,904)			(3,349)			(1,192)			(1,618)			(941)
Net deferred income tax liabilities			$	(9,964)		$	(4,153)		$	(5,147)		$	(2,477)		$	(2,789)		$	(1,136)		$	(1,299)		$	(870)

(a) Primarily related to lease obligations and debt fair value adjustments.

FINANCIAL STATEMENTS			INCOME TAXES

UNRECOGNIZED TAX BENEFITS

The following tables present changes to unrecognized tax benefits.

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	65		$	17		$	19		$	13		$	5		$	1		$	2		$	9
Gross decreases – tax positions in prior periods			(15)			—			—			—			—			—			—			—
Gross increases – current period tax positions			12			4			5			5			1			1			1			2
Total changes			(3)			4			5			5			1			1			1			2
Unrecognized tax benefits – December 31			$	62		$	21		$	24		$	18		$	6		$	2		$	3		$	11

			Year Ended December 31, 2022
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	51		$	13		$	15		$	10		$	4		$	1		$	2		$	4
Gross increases – current period tax positions			14			4			4			3			1			—			—			5
Total changes			14			4			4			3			1			—			—			5
Unrecognized tax benefits – December 31			$	65		$	17		$	19		$	13		$	5		$	1		$	2		$	9

			Year Ended December 31, 2021
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	125		$	10		$	10		$	6		$	3		$	1		$	1		$	1
Gross decreases – tax positions in prior periods(a)			(86)			—			—			—			—			—			—			—
Gross increases – current period tax positions			12			3			5			4			1			—			1			3
Total changes			(74)			3			5			4			1			—			1			3
Unrecognized tax benefits – December 31			$	51		$	13		$	15		$	10		$	4		$	1		$	2		$	4

(a) In 2021, the Company recognized a federal capital gain in the amount of $426 million. As a result of the capital gain, a previously recorded unrecognized tax benefit related to the character of a taxable loss has been reversed. See note (a) under the Statutory Rate Reconciliation table for more details.

The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2023. None of Duke Energy Registrants anticipates a material increase or decrease in unrecognized tax benefits within the next 12 months.

			December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Amount that if recognized, would affect the effective tax rate or regulatory liability(a)			$	57		$	20		$	22		$	16		$	6		$	2		$	3		$	10

(a) The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.

Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2018, aside from certain tax attributes carried forward for utilization in future years.

FINANCIAL STATEMENTS			OTHER INCOME AND EXPENSES, NET

25. OTHER INCOME AND EXPENSES, NET

The components of Other income and expenses, net on the Consolidated Statements of Operations are as follows.

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	29					$	10					$	14					$	9					$	7					$	25					$	25					$	19
AFUDC equity			198						91						67						52						15						9						10						21
Post-in-service equity returns			39						19						19						19						—						1						—						—
Nonoperating income, other			332						118						101						44						56						6						41						17
Other income and expense, net			$	598					$	238					$	201					$	124					$	78					$	41					$	76					$	57

			Year Ended December 31, 2022
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	27					$	2					$	24					$	4					$	20					$	11					$	15					$	19
AFUDC equity			197						98						68						52						16						7						13						11
Post-in-service equity returns			34						14						18						18						—						1						1						—
Nonoperating income, other			134						107						71						40						38						—						7						16
Other income and expense, net			$	392					$	221					$	181					$	114					$	74					$	19					$	36					$	46

			Year Ended December 31, 2021
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	13					$	4					$	8					$	6					$	2					$	4					$	6					$	19
AFUDC equity			171						65						51						34						16						7						27						20
Post-in-service equity returns			39						21						16						16						—						1						1						—
Nonoperating income, other			413						180						140						87						53						6						8						16
Other income and expense, net			$	636					$	270					$	215					$	143					$	71					$	18					$	42					$	55

26. SUBSEQUENT EVENTS

For information on subsequent events related to regulatory matters, commitments and contingencies, debt and credit facilities, and asset retirement obligations, see Notes 4, 5, 7 and 10, respectively.

FINANCIAL STATEMENTS			QUARTERLY FINANCIAL DATA (UNAUDITED)

27. QUARTERLY FINANCIAL DATA (UNAUDITED)

DUKE ENERGY

Quarterly EPS amounts may not sum to the full-year total due to changes in the weighted average number of common shares outstanding and rounding.

			First						Second						Third						Fourth
(in millions, except per share data)			Quarter						Quarter						Quarter						Quarter						Total
2023
Operating revenues			$	7,276					$	6,578					$	7,994					$	7,212					$	29,060
Operating income			1,674						1,430						2,111						1,855						7,070
Income from continuing operations			970						751						1,473						1,135						4,329
Loss from discontinued operations, net of tax			(209)						(955)						(152)						(139)						(1,455)
Net income (loss)			761						(204)						1,321						996						2,874
Net income (loss) available to Duke Energy Corporation common stockholders			765						(234)						1,213						991						2,735
Earnings per share:
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and diluted			$	1.20					$	0.91					$	1.83					$	1.41					$	5.35
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and diluted			$	(0.19)					$	(1.23)					$	(0.24)					$	(0.14)					$	(1.81)
Net income (loss) available to Duke Energy Corporation common stockholders
Basic and diluted			$	1.01					$	(0.32)					$	1.59					$	1.27					$	3.54
2022
Operating revenues			$	7,011					$	6,564					$	7,842					$	7,351					$	28,768
Operating income			1,314						1,448						2,056						1,194						6,012
Income from continuing operations			835						898						1,410						635						3,778
(Loss) Income from discontinued operations, net of tax			(15)						(18)						3						(1,293)						(1,323)
Net income (loss)			820						880						1,413						(658)						2,455
Net income (loss) available to Duke Energy Corporation common stockholders			818						893						1,383						(650)						2,444
Earnings per share:
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and diluted			$	1.06					$	1.11					$	1.78					$	0.80					$	4.74
Income (Loss) from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and diluted			$	0.02					$	0.03					$	0.03					$	(1.66)					$	(1.57)
Net income (loss) available to Duke Energy Corporation common stockholders
Basic and diluted			$	1.08					$	1.14					$	1.81					$	(0.86)					$	3.17

INDEPENDENT ACCOUNTANTS