Cover and table of contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2023

OR

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

For the transition period from to

Commission File Number			Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Zip Code and Telephone Number						IRS Employer Identification No.
1-32853			DUKE ENERGY CORPORATION						20-2777218

(a Delaware corporation)

526 South Church Street

Charlotte, North Carolina 28202-1803

704-382-3853

1-4928			DUKE ENERGY CAROLINAS, LLC						56-0205520

(a North Carolina limited liability company)

526 South Church Street

Charlotte, North Carolina 28202-1803

704-382-3853

1-15929			PROGRESS ENERGY, INC.						56-2155481

(a North Carolina corporation)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853

1-3382			DUKE ENERGY PROGRESS, LLC						56-0165465

(a North Carolina limited liability company)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853

1-3274			DUKE ENERGY FLORIDA, LLC						59-0247770

(a Florida limited liability company)

299 First Avenue North

St. Petersburg, Florida 33701

704-382-3853

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

(an Ohio corporation)

139 East Fourth Street

Cincinnati, Ohio 45202

704-382-3853

1-3543			DUKE ENERGY INDIANA, LLC						35-0594457

(an Indiana limited liability company)

1000 East Main Street

Plainfield, Indiana 46168

704-382-3853

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

(a North Carolina corporation)

4720 Piedmont Row Drive

Charlotte, North Carolina 28210

704-364-3120

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Name of each exchange on

Registrant Title of each class Trading symbols which registered

Duke Energy Common Stock, $0.001 par value DUK New York Stock Exchange LLC

Duke Energy 5.625% Junior Subordinated Debentures due DUKB New York Stock Exchange LLC

September 15, 2078

Duke Energy Depositary Shares, each representing a 1/1,000th DUK PR A New York Stock Exchange LLC

interest in a share of 5.75% Series A Cumulative

Redeemable Perpetual Preferred Stock, par value

$0.001 per share

Duke Energy 3.10% Senior Notes due 2028 DUK 28A New York Stock Exchange LLC

Duke Energy 3.85% Senior Notes due 2034 DUK 34 New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Duke Energy Corporation (Duke Energy)			Yes			☒			No			☐						Duke Energy Florida, LLC (Duke Energy Florida)			Yes			☒			No			☐
Duke Energy Carolinas, LLC (Duke Energy Carolinas)			Yes			☒			No			☐						Duke Energy Ohio, Inc. (Duke Energy Ohio)			Yes			☒			No			☐
Progress Energy, Inc. (Progress Energy)			Yes			☒			No			☐						Duke Energy Indiana, LLC (Duke Energy Indiana)			Yes			☒			No			☐
Duke Energy Progress, LLC (Duke Energy Progress)			Yes			☒			No			☐						Piedmont Natural Gas Company, Inc. (Piedmont)			Yes			☒			No			☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Duke Energy			Yes			☒			No			☐						Duke Energy Florida			Yes			☒			No			☐
Duke Energy Carolinas			Yes			☒			No			☐						Duke Energy Ohio			Yes			☒			No			☐
Progress Energy			Yes			☒			No			☐						Duke Energy Indiana			Yes			☒			No			☐
Duke Energy Progress			Yes			☒			No			☐						Piedmont			Yes			☒			No			☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Duke Energy			Large Accelerated Filer			☒			Accelerated filer			☐			Non-accelerated Filer			☐			Smaller reporting company			☐			Emerging growth company			☐
Duke Energy Carolinas			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Progress Energy			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Duke Energy Progress			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Duke Energy Florida			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Duke Energy Ohio			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Duke Energy Indiana			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐
Piedmont			Large Accelerated Filer			☐			Accelerated filer			☐			Non-accelerated Filer			☒			Smaller reporting company			☐			Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Duke Energy			Yes			☐			No			☒						Duke Energy Florida			Yes			☐			No			☒
Duke Energy Carolinas			Yes			☐			No			☒						Duke Energy Ohio			Yes			☐			No			☒
Progress Energy			Yes			☐			No			☒						Duke Energy Indiana			Yes			☐			No			☒
Duke Energy Progress			Yes			☐			No			☒						Piedmont			Yes			☐			No			☒

Number of shares of common stock outstanding at October 31, 2023:

Registrant			Description			Shares
Duke Energy			Common stock, $0.001 par value			770,711,728
Duke Energy Carolinas			All of the registrant's limited liability company member interests are directly owned by Duke Energy.			N/A
Progress Energy			All of the registrant's common stock is directly owned by Duke Energy.			100
Duke Energy Progress			All of the registrant's limited liability company member interests are indirectly owned by Duke Energy.			N/A
Duke Energy Florida			All of the registrant's limited liability company member interests are indirectly owned by Duke Energy.			N/A
Duke Energy Ohio			All of the registrant's common stock is indirectly owned by Duke Energy.			89,663,086
Duke Energy Indiana			All of the registrant's limited liability company member interests are owned by a Duke Energy subsidiary that is 80.1% indirectly owned by Duke Energy.			N/A
Piedmont			All of the registrant's common stock is directly owned by Duke Energy.			100

This combined Form 10-Q is filed separately by eight registrants: Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont (collectively the Duke Energy Registrants). Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.

Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and are therefore filing this form with the reduced disclosure format specified in General Instructions H(2) of Form 10-Q.

TABLE OF CONTENTS

			Cautionary Statement Regarding Forward-Looking Information
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements
			Duke Energy Corporation Financial Statements			9
			Duke Energy Carolinas, LLC Financial Statements			15
			Progress Energy, Inc. Financial Statements			19
			Duke Energy Progress, LLC Financial Statements			23
			Duke Energy Florida, LLC Financial Statements			27
			Duke Energy Ohio, Inc. Financial Statements			31
			Duke Energy Indiana, LLC Financial Statements			35
			Piedmont Natural Gas Company, Inc. Financial Statements			39
			Combined Notes to Condensed Consolidated Financial Statements
			Note 1 – Organization and Basis of Presentation			43
			Note 2 – Dispositions			45
			Note 3 – Business Segments			47
			Note 4 – Regulatory Matters			49
			Note 5 – Commitments and Contingencies			55
			Note 6 – Debt and Credit Facilities			57
			Note 7 – Asset Retirement Obligations			60
			Note 8 – Goodwill			61
			Note 9 – Related Party Transactions			62
			Note 10 – Derivatives and Hedging			63
			Note 11 – Investments in Debt and Equity Securities			69
			Note 12 – Fair Value Measurements			73
			Note 13 – Variable Interest Entities			78
			Note 14 – Revenue			81
			Note 15 – Stockholders' Equity			87
			Note 16 – Employee Benefit Plans			88
			Note 17 – Income Taxes			90
			Note 18 – Subsequent Events			90
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			91
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			109
Item 4.			Controls and Procedures			109
PART II. OTHER INFORMATION
Item 1.			Legal Proceedings			110
Item 1A.			Risk Factors			110
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			110
Item 5.			Other Information			110
Item 6.			Exhibits			111
			Signatures			114

GLOSSARY OF TERMS

Glossary of Terms

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

Term or Acronym			Definition
2021 Settlement			Settlement Agreement in 2021 among Duke Energy Florida, the Florida Office of Public Counsel, the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PSC Phosphate and NUCOR Steel Florida, Inc.
AFUDC			Allowance for funds used during construction
ArcLight			ArcLight Capital Partners, LLC
ARM			Annual Review Mechanism
ARO			Asset retirement obligations
Bison			Bison Insurance Company Limited
Brookfield			Brookfield Renewable Partners L.P.
CEP			Capital Expenditure Program
the Company			Duke Energy Corporation and its subsidiaries
Commercial Renewables Disposal Groups			Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, separated into the utility-scale solar and wind group, the distributed generation group and the remaining assets
COVID-19			Coronavirus Disease 2019
CRC			Cinergy Receivables Company, LLC
Crystal River Unit 3			Crystal River Unit 3 Nuclear Plant
DEFR			Duke Energy Florida Receivables, LLC
DEPR			Duke Energy Progress Receivables, LLC
DERF			Duke Energy Receivables Finance Company, LLC
Duke Energy			Duke Energy Corporation (collectively with its subsidiaries)
Duke Energy Ohio			Duke Energy Ohio, Inc.
Duke Energy Progress			Duke Energy Progress, LLC
Duke Energy Carolinas			Duke Energy Carolinas, LLC
Duke Energy Florida			Duke Energy Florida, LLC
Duke Energy Indiana			Duke Energy Indiana, LLC
Duke Energy Registrants			Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
EDIT			Excess deferred income tax
EPA			United States Environmental Protection Agency
EPS			Earnings (Loss) Per Share
ERCOT			Electric Reliability Council of Texas
ETR			Effective tax rate
EU&I			Electric Utilities and Infrastructure
Exchange Act			Securities Exchange Act of 1934
FERC			Federal Energy Regulatory Commission
FPSC			Florida Public Service Commission
FTR			Financial transmission rights
GAAP			Generally accepted accounting principles in the U.S.
GAAP Reported Earnings			Net Income Available to Duke Energy Corporation Common Stockholders
GAAP Reported EPS			Basic Earnings Per Share Available to Duke Energy Corporation common stockholders
GIC			GIC Private Limited, Singapore's sovereign wealth fund and an experienced investor in U.S. infrastructure
GU&I			Gas Utilities and Infrastructure

GLOSSARY OF TERMS

GWh			Gigawatt-hours
HB 951			The Energy Solutions for North Carolina, or House Bill 951, passed in October 2021
IMR			Integrity Management Rider
IRA			Inflation Reduction Act
IRS			Internal Revenue Service
IURC			Indiana Utility Regulatory Commission
KPSC			Kentucky Public Service Commission
LLC			Limited Liability Company
MGP			Manufactured gas plant
MGP Settlement			Stipulation and Recommendation filed jointly by Duke Energy Ohio the staff of the PUCO, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021
MW			Megawatt
MWh			Megawatt-hour
MYRP			Multiyear rate plan
NCUC			North Carolina Utilities Commission
NDTF			Nuclear decommissioning trust funds
NPNS			Normal purchase/normal sale
NYSE			The New York Stock Exchange
OCC			Ohio Consumers' Counsel
OPEB			Other Post-Retirement Benefit Obligations
the Parent			Duke Energy Corporation holding company
PBR			Performance-based regulation
Piedmont			Piedmont Natural Gas Company, Inc.
Progress Energy			Progress Energy, Inc.
PSCSC			Public Service Commission of South Carolina
PUCO			Public Utilities Commission of Ohio
RTO			Regional Transmission Organization
Subsidiary Registrants			Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont
TPUC			Tennessee Public Utility Commission
U.S.			United States
VIE			Variable Interest Entity

FORWARD-LOOKING STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

◦The ability to implement our business strategy, including our carbon emission reduction goals;

◦State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;

◦The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;

◦The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations, asset retirement and construction costs related to carbon emissions reductions, and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;

◦The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;

◦The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including the disruption of global supply chains or the economic activity in our service territories;

◦Costs and effects of legal and administrative proceedings, settlements, investigations and claims;

◦Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy, reduced customer usage due to cost pressures from inflation or fuel costs, and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts, natural gas building and appliance electrification, and use of alternative energy sources, such as self-generation and distributed generation technologies;

◦Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures, natural gas electrification, and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in a reduced number of customers, excess generation resources as well as stranded costs;

◦Advancements in technology;

◦Additional competition in electric and natural gas markets and continued industry consolidation;

◦The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;

◦Changing investor, customer and other stakeholder expectations and demands including heightened emphasis on environmental, social and governance concerns and costs related thereto;

◦The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the Company resulting from an incident that affects the United States electric grid or generating resources;

◦Operational interruptions to our natural gas distribution and transmission activities;

◦The availability of adequate interstate pipeline transportation capacity and natural gas supply;

◦The impact on facilities and business from a terrorist or other attack, war, vandalism, cybersecurity threats, data security breaches, operational events, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;

◦The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;

◦The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;

◦The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions, an individual utility’s generation mix, and general market and economic conditions;

◦Credit ratings of the Duke Energy Registrants may be different from what is expected;

◦Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;

FORWARD-LOOKING STATEMENTS

◦Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, timing and receipt of necessary regulatory approvals, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;

◦Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants;

◦The ability to control operation and maintenance costs;

◦The level of creditworthiness of counterparties to transactions;

◦The ability to obtain adequate insurance at acceptable costs;

◦Employee workforce factors, including the potential inability to attract and retain key personnel;

◦The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);

◦The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities, as well as the successful sale of the Commercial Renewables Disposal Groups;

◦The effect of accounting and reporting pronouncements issued periodically by accounting standard-setting bodies and the SEC;

◦The impact of United States tax legislation to our financial condition, results of operations or cash flows and our credit ratings;

◦The impacts from potential impairments of goodwill or equity method investment carrying values;

◦Asset or business acquisitions and dispositions may not yield the anticipated benefits; and

◦The actions of activist shareholders could disrupt our operations, impact our ability to execute on our business strategy, or cause fluctuations in the trading price of our common stock.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FINANCIAL STATEMENTS