Item 1. FINANCIAL STATEMENTS

510K characters. Original on sec.gov · Markdown

Item 1. FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share amounts)	2024		2023		2024		2023
Operating Revenues
Regulated electric	$	6,746	$	6,176	$	13,478	$	12,500
Regulated natural gas	347		331		1,213		1,213
Nonregulated electric and other	79		71		152		141
Total operating revenues	7,172		6,578		14,843		13,854
Operating Expenses
Fuel used in electric generation and purchased power	2,228		2,039		4,563		4,416
Cost of natural gas	78		79		310		377
Operation, maintenance and other	1,320		1,375		2,699		2,685
Depreciation and amortization	1,409		1,333		2,796		2,560
Property and other taxes	393		353		779		742
Impairment of assets and other charges	43		—		44		8
Total operating expenses	5,471		5,179		11,191		10,788
Gains on Sales of Other Assets and Other, net	6		31		18		38
Operating Income	1,707		1,430		3,670		3,104
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	21		20		38		40
Other income and expenses, net	167		147		336		298
Total other income and expenses	188		167		374		338
Interest Expense	824		727		1,641		1,447
Income From Continuing Operations Before Income Taxes	1,071		870		2,403		1,995
Income Tax Expense From Continuing Operations	140		119		318		274
Income From Continuing Operations	931		751		2,085		1,721
Loss From Discontinued Operations, net of tax	(10)		(955)		(13)		(1,164)
Net Income (Loss)	921		(204)		2,072		557
Less: Net Income (Loss) Attributable to Noncontrolling Interests	21		16		34		(27)
Net Income (Loss) Attributable to Duke Energy Corporation	900		(220)		2,038		584
Less: Preferred Dividends	14		14		53		53
Net Income (Loss) Available to Duke Energy Corporation Common Stockholders	$	886	$	(234)	$	1,985	$	531

Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted	$	1.14	$	0.91	$	2.59	$	2.10

Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted	$	(0.01)	$	(1.23)	$	(0.02)	$	(1.41)

Net income (loss) available to Duke Energy Corporation common stockholders
Basic and Diluted	$	1.13	$	(0.32)	$	2.57	$	0.69

Weighted Average Shares Outstanding
Basic and Diluted	772		771		771		770

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Net Income (Loss)	$	921	$	(204)	$	2,072	$	557
Other Comprehensive Income, net of tax(a)

Pension and OPEB adjustments	—		1		16		—
Net unrealized gains on cash flow hedges	26		26		117		6
Reclassification into earnings from cash flow hedges	(3)		4		(1)		4

Net unrealized (losses) gains on fair value hedges	(29)		26		(21)		15
Unrealized (losses) gains on available-for-sale securities	(1)		(2)		(3)		4

Other Comprehensive (Loss) Income, net of tax	(7)		55		108		29
Comprehensive Income (Loss)	914		(149)		2,180		586
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests	21		16		34		(27)
Comprehensive Income (Loss) Attributable to Duke Energy	893		(165)		2,146		613
Less: Preferred Dividends	14		14		53		53
Comprehensive Income (Loss) Available to Duke Energy Corporation Common Stockholders	$	879	$	(179)	$	2,093	$	560

(a)Net of income tax benefit of approximately $2 million and income tax expense of $16 million for the three months ended June 30, 2024, and 2023, respectively and approximately $32 million and $9 million of income tax expense for the six months ended June 30, 2024, and 2023, respectively.

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	390	$	253

Receivables (net of allowance for doubtful accounts of $119 at 2024 and $55 at 2023)	2,127		1,112
Receivables of VIEs (net of allowance for doubtful accounts of $88 at 2024 and $150 at 2023)	2,009		3,019
Receivable from sales of Commercial Renewables Disposal Groups	538		—
Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)	4,390		4,292
Regulatory assets (includes $119 at 2024 and $110 at 2023 related to VIEs)	2,663		3,648
Assets held for sale	4		14
Other (includes $81 at 2024 and $90 at 2023 related to VIEs)	436		431
Total current assets	12,557		12,769
Property, Plant and Equipment
Cost	177,974		171,353
Accumulated depreciation and amortization	(57,874)		(56,038)

Net property, plant and equipment	120,100		115,315
Other Noncurrent Assets
Goodwill	19,303		19,303
Regulatory assets (includes $1,754 at 2024 and $1,642 at 2023 related to VIEs)	13,446		13,618
Nuclear decommissioning trust funds	10,944		10,143
Operating lease right-of-use assets, net	1,108		1,092
Investments in equity method unconsolidated affiliates	483		492
Assets held for sale	78		197
Other	3,556		3,964
Total other noncurrent assets	48,918		48,809
Total Assets	$	181,575	$	176,893
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $224 at 2024 and $188 at 2023 related to VIEs)	$	3,777	$	4,228
Notes payable and commercial paper	3,670		4,288
Taxes accrued	748		816
Interest accrued	790		745
Current maturities of long-term debt (includes $1,008 at 2024 and $428 at 2023 related to VIEs)	2,340		2,800
Asset retirement obligations	636		596
Regulatory liabilities	1,228		1,369
Liabilities associated with assets held for sale	81		122
Other	2,212		2,319
Total current liabilities	15,482		17,283
Long-Term Debt (includes $1,897 at 2024 and $3,000 at 2023 related to VIEs)	76,439		72,452
Other Noncurrent Liabilities
Deferred income taxes	10,773		10,556
Asset retirement obligations	9,718		8,560
Regulatory liabilities	14,557		14,039
Operating lease liabilities	925		917
Accrued pension and other post-retirement benefit costs	437		485
Investment tax credits	860		864
Liabilities associated with assets held for sale	112		157
Other (includes $30 at 2024 and $35 at 2023 related to VIEs)	1,466		1,393
Total other noncurrent liabilities	38,848		36,971
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2024 and 2023	973		973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2024 and 2023	989		989
Common stock, $0.001 par value, 2 billion shares authorized; 772 million and 771 million shares outstanding at 2024 and 2023	1		1
Additional paid-in capital	45,007		44,920
Retained earnings	2,635		2,235
Accumulated other comprehensive income (loss)	102		(6)
Total Duke Energy Corporation stockholders' equity	49,707		49,112
Noncontrolling interests	1,099		1,075
Total equity	50,806		50,187
Total Liabilities and Equity	$	181,575	$	176,893

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,072	$	557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)	3,100		2,916
Equity component of AFUDC	(116)		(97)
Losses on sales of Commercial Renewables Disposal Groups	5		1,434
Gains on sales of other assets	(18)		(38)
Impairment of assets and other charges	44		8
Deferred income taxes	264		(52)
Equity in earnings of unconsolidated affiliates	(38)		(29)


Payments for asset retirement obligations	(262)		(261)
Provision for rate refunds	(7)		(57)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	(37)		93
Receivables	(19)		586

Inventory	(86)		(517)
Other current assets	502		(41)
Increase (decrease) in
Accounts payable	(215)		(1,245)

Taxes accrued	(68)		(8)
Other current liabilities	(252)		(154)
Other assets	331		608
Other liabilities	227		82
Net cash provided by operating activities	5,427		3,785
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(6,204)		(6,265)
Contributions to equity method investments	(8)		(22)


Purchases of debt and equity securities	(2,275)		(1,594)
Proceeds from sales and maturities of debt and equity securities	2,319		1,628

Net proceeds from the sales of other assets	1		111


Other	(408)		(366)
Net cash used in investing activities	(6,575)		(6,508)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
Issuance of long-term debt	6,372		7,094

Issuance of common stock	20		—

Payments for the redemption of long-term debt	(2,731)		(2,372)
Proceeds from the issuance of short-term debt with original maturities greater than 90 days	502		60
Payments for the redemption of short-term debt with original maturities greater than 90 days	(824)		(52)
Notes payable and commercial paper	(414)		(590)

Contributions from noncontrolling interests	47		248
Dividends paid	(1,590)		(1,606)

Other	(108)		(95)
Net cash provided by financing activities	1,274		2,687

Net increase (decrease) in cash, cash equivalents and restricted cash	126		(36)
Cash, cash equivalents and restricted cash at beginning of period	357		603
Cash, cash equivalents and restricted cash at end of period	$	483	$	567
Supplemental Disclosures:






Significant non-cash transactions:
Accrued capital expenditures	$	1,721	$	1,398

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
										Accumulated Other Comprehensive
										(Loss) Income
										Net		Net Unrealized				Total
										Gains		(Losses) Gains				Duke Energy
			Common			Additional				(Losses)		on Available-		Pension and		Corporation		Non-
	Preferred		Stock	Common		Paid-in		Retained		on		for-Sale-		OPEB		Stockholders'		controlling		Total
(in millions)	Stock		Shares	Stock		Capital		Earnings		Hedges(b)		Securities		Adjustments		Equity		Interests		Equity
Balance at March 31, 2023	$	1,962	771	$	1	$	44,837	$	2,626	$	(60)	$	(17)	$	(89)	$	49,260	$	2,691	$	51,951
Net income (loss)	—		—	—		—		(234)		—		—		—		(234)		16		(218)
Other comprehensive income (loss)	—		—	—		—		—		56		(2)		1		55		—		55


Common stock issuances, including dividend reinvestment and employee benefits	—		—	—		31		—		—		—		—		31		—		31

Common stock dividends	—		—	—		—		(777)		—		—		—		(777)		—		(777)


Contribution from noncontrolling interests, net of transaction costs	—		—	—		—		—		—		—		—		—		42		42
Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(12)		(12)
Other	—		—	—		(2)		—		—		—		—		(2)		1		(1)
Balance at June 30, 2023	$	1,962	771	$	1	$	44,866	$	1,615	$	(4)	$	(19)	$	(88)	$	48,333	$	2,738	$	51,071

Balance at March 31, 2024	$	1,962	772	$	1	$	44,937	$	2,542	$	199	$	(17)	$	(73)	$	49,551	$	1,087	$	50,638
Net income	—		—	—		—		886		—		—		—		886		21		907
Other comprehensive income (loss)	—		—	—		—		—		(6)		(1)		—		(7)		—		(7)

Common stock issuances, including dividend reinvestment and employee benefits	—		—	—		70		—		—		—		—		70		—		70

Common stock dividends	—		—	—		—		(794)		—		—		—		(794)		—		(794)
Sale of Commercial Renewables Disposal Groups(c)	—		—	—		—		—		—		—		—		—		(51)		(51)
Contribution from noncontrolling interests, net of transaction costs	—		—	—		—		—		—		—		—		—		47		47
Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(5)		(5)
Other	—		—	—				1		—		—		—		1		—		1
Balance at June 30, 2024	$	1,962	772	$	1	$	45,007	$	2,635	$	193	$	(18)	$	(73)	$	49,707	$	1,099	$	50,806

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Six Months Ended June 30, 2023 and 2024
										Accumulated Other Comprehensive
										(Loss) Income
										Net		Net Unrealized				Total
										Gains		Gains (Losses)				Duke Energy
			Common			Additional				(Losses)		on Available-		Pension and		Corporation		Non-
	Preferred		Stock	Common		Paid-in		Retained		on		for-Sale-		OPEB		Stockholders'		controlling		Total
(in millions)	Stock		Shares	Stock		Capital		Earnings		Hedges(b)		Securities		Adjustments		Equity		Interests		Equity
Balance at December 31, 2022	$	1,962	770	$	1	$	44,862	$	2,637	$	(29)	$	(23)	$	(88)	$	49,322	$	2,531	$	51,853
Net income (loss)	—		—	—		—		531		—		—		—		531		(27)		504
Other comprehensive income (loss)	—		—	—		—		—		25		4		—		29		—		29


Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		21		—		—		—		—		21		—		21

Common stock dividends	—		—	—		—		(1,553)		—		—		—		(1,553)		—		(1,553)

Sale of noncontrolling interest	—		—	—		(13)		—		—		—		—		(13)		10		(3)
Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		—		—		—		—		—		—		248		248
Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(25)		(25)
Other	—		—	—		(4)		—		—		—		—		(4)		1		(3)
Balance at June 30, 2023	$	1,962	771	$	1	$	44,866	$	1,615	$	(4)	$	(19)	$	(88)	$	48,333	$	2,738	$	51,071

Balance at December 31, 2023	$	1,962	771	$	1	$	44,920	$	2,235	$	98	$	(15)	$	(89)	$	49,112	$	1,075	$	50,187
Net income	—		—	—		—		1,985		—		—		—		1,985		34		2,019
Other comprehensive income (loss)	—		—	—		—		—		95		(3)		16		108		—		108


Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		86		—		—		—		—		86		—		86

Common stock dividends	—		—	—		—		(1,586)		—		—		—		(1,586)		—		(1,586)
Sale of Commercial Renewables Disposal Groups(c)	—		—	—				—		—		—		—		—		(51)		(51)
Contributions from noncontrolling interests, net of transaction costs	—		—	—		—		—		—		—		—		—		47		47
Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(5)		(5)
Other	—		—	—		1		1		—		—		—		2		(1)		1
Balance at June 30, 2024	$	1,962	772	$	1	$	45,007	$	2,635	$	193	$	(18)	$	(73)	$	49,707	$	1,099	$	50,806

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

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

(c)See Note 2 for additional information.

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues	$	2,297	$	1,828	$	4,704	$	3,762
Operating Expenses
Fuel used in electric generation and purchased power	749		510		1,609		1,133
Operation, maintenance and other	444		421		895		861
Depreciation and amortization	437		413		834		779
Property and other taxes	89		91		183		186
Impairment of assets and other charges	33		4		34		6
Total operating expenses	1,752		1,439		3,555		2,965
Gains on Sales of Other Assets and Other, net	—		26		1		26
Operating Income	545		415		1,150		823
Other Income and Expenses, net	62		59		123		118
Interest Expense	168		172		348		332
Income Before Income Taxes	439		302		925		609
Income Tax Expense	48		32		104		67
Net Income and Comprehensive Income	$	391	$	270	$	821	$	542

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	9	$	9
Receivables (net of allowance for doubtful accounts of $15 at 2024 and $11 at 2023)	193		265
Receivables of VIEs (net of allowance for doubtful accounts of $50 at 2024 and $45 at 2023)	1,128		991
Receivables from affiliated companies	192		203

Inventory	1,509		1,484
Regulatory assets (includes $12 at 2024 and 2023 related to VIEs)	1,122		1,564
Other (includes $10 at 2024 and $9 at 2023 related to VIEs)	56		31
Total current assets	4,209		4,547
Property, Plant and Equipment
Cost	58,433		56,670
Accumulated depreciation and amortization	(20,396)		(19,896)

Net property, plant and equipment	38,037		36,774
Other Noncurrent Assets
Regulatory assets (includes $191 at 2024 and $196 at 2023 related to VIEs)	3,711		3,916
Nuclear decommissioning trust funds	6,170		5,686
Operating lease right-of-use assets, net	89		78
Other	1,158		1,109
Total other noncurrent assets	11,128		10,789
Total Assets	$	53,374	$	52,110
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,125	$	1,183
Accounts payable to affiliated companies	198		195
Notes payable to affiliated companies	7		668
Taxes accrued	284		281
Interest accrued	202		179
Current maturities of long-term debt (includes $510 at 2024 and $10 at 2023 related to VIEs)	520		19
Asset retirement obligations	252		224
Regulatory liabilities	550		587
Other	635		702
Total current liabilities	3,773		4,038
Long-Term Debt (includes $203 at 2024 and $708 at 2023 related to VIEs)	16,206		15,693
Long-Term Debt Payable to Affiliated Companies	300		300
Other Noncurrent Liabilities
Deferred income taxes	4,217		4,379
Asset retirement obligations	3,860		3,789
Regulatory liabilities	6,303		5,990
Operating lease liabilities	80		75
Accrued pension and other post-retirement benefit costs	47		57
Investment tax credits	299		301
Other (includes $18 at 2024 and $17 at 2023 related to VIEs)	581		581
Total other noncurrent liabilities	15,387		15,172
Commitments and Contingencies
Equity
Member's equity	17,714		16,913
Accumulated other comprehensive loss	(6)		(6)
Total equity	17,708		16,907
Total Liabilities and Equity	$	53,374	$	52,110

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	821	$	542
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)	966		906
Equity component of AFUDC	(58)		(48)
Gains on sales of other assets	(1)		(26)
Impairment of assets and other charges	34		6
Deferred income taxes	(38)		(5)



Payments for asset retirement obligations	(80)		(87)
Provision for rate refunds	(6)		(33)
(Increase) decrease in

Receivables	(61)		91
Receivables from affiliated companies	11		234
Inventory	(25)		(239)
Other current assets	9		(482)
Increase (decrease) in
Accounts payable	(28)		(652)
Accounts payable to affiliated companies	3		(70)
Taxes accrued	3		48
Other current liabilities	(140)		6
Other assets	410		542
Other liabilities	(40)		97
Net cash provided by operating activities	1,780		830
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,949)		(1,795)


Purchases of debt and equity securities	(1,211)		(936)
Proceeds from sales and maturities of debt and equity securities	1,211		936
Net proceeds from the sales of other assets	—		30

Other	(178)		(129)
Net cash used in investing activities	(2,127)		(1,894)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	1,018		2,729
Payments for the redemption of long-term debt	(9)		(1,033)
Notes payable to affiliated companies	(660)		(655)

Other	(1)		(1)
Net cash provided by financing activities	348		1,040
Net increase (decrease) in cash, cash equivalents and restricted cash	1		(24)
Cash, cash equivalents and restricted cash at beginning of period	19		53
Cash, cash equivalents and restricted cash at end of period	$	20	$	29
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	597	$	456

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
			Accumulated Other
			Comprehensive
			Loss
	Member's		Net Losses on		Total
(in millions)	Equity		Cash Flow Hedges		Equity
Balance at March 31, 2023	$	15,720	$	(6)	$	15,714
Net income	270		—		270



Balance at June 30, 2023	$	15,990	$	(6)	$	15,984

Balance at March 31, 2024	$	17,343	$	(6)	$	17,337
Net income	391		—		391


Other	(20)		—		(20)
Balance at June 30, 2024	$	17,714	$	(6)	$	17,708

	Six Months Ended June 30, 2023 and 2024
			Accumulated Other
			Comprehensive
			Loss
	Member's		Net Losses on		Total
(in millions)	Equity		Cash Flow Hedges		Equity
Balance at December 31, 2022	$	15,448	$	(6)	$	15,442
Net income	542		—		542



Balance at June 30, 2023	$	15,990	$	(6)	$	15,984

Balance at December 31, 2023	$	16,913	$	(6)	$	16,907
Net income	821				821


Other	(20)		—		(20)
Balance at June 30, 2024	$	17,714	$	(6)	$	17,708

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues	$	3,357	$	3,212	$	6,585	$	6,260
Operating Expenses
Fuel used in electric generation and purchased power	1,202		1,176		2,345		2,367
Operation, maintenance and other	588		684		1,216		1,252
Depreciation and amortization	568		542		1,155		1,046
Property and other taxes	166		173		324		341
Impairment of assets and other charges	9		—		9		5
Total operating expenses	2,533		2,575		5,049		5,011
Gains on Sales of Other Assets and Other, net	6		6		13		12
Operating Income	830		643		1,549		1,261
Other Income and Expenses, net	60		38		122		97
Interest Expense	265		219		525		465
Income Before Income Taxes	625		462		1,146		893
Income Tax Expense	104		77		190		149
Net Income	$	521	$	385	$	956	$	744
Other Comprehensive Income, net of tax



Unrealized gains on available-for-sale securities	—		—		—		2

Other Comprehensive Income, net of tax	—		—		—		2
Comprehensive Income	$	521	$	385	$	956	$	746

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	85	$	59
Receivables (net of allowance for doubtful accounts of $35 at 2024 and $18 at 2023)	924		225
Receivables of VIEs (net of allowance for doubtful accounts of $38 at 2024 and $56 at 2023)	881		1,365
Receivables from affiliated companies	5		90
Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)	2,019		1,901
Regulatory assets (includes $107 at 2024 and $98 at 2023 related to VIEs)	1,151		1,661
Other (includes $66 at 2024 and $68 at 2023 related to VIEs)	135		134
Total current assets	5,200		5,435
Property, Plant and Equipment
Cost	70,694		67,644
Accumulated depreciation and amortization	(23,080)		(22,300)

Net property, plant and equipment	47,614		45,344
Other Noncurrent Assets
Goodwill	3,655		3,655
Regulatory assets (includes $1,563 at 2024 and $1,446 at 2023 related to VIEs)	6,426		6,430
Nuclear decommissioning trust funds	4,774		4,457
Operating lease right-of-use assets, net	588		617
Other	1,207		1,156
Total other noncurrent assets	16,650		16,315
Total Assets	$	69,464	$	67,094
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $213 at 2024 and $188 at 2023 related to VIEs)	$	1,259	$	1,374
Accounts payable to affiliated companies	488		464
Notes payable to affiliated companies	976		1,043
Taxes accrued	428		259
Interest accrued	232		224
Current maturities of long-term debt (includes $499 at 2024 and $418 at 2023 related to VIEs)	914		661
Asset retirement obligations	215		245
Regulatory liabilities	368		418
Other	842		860
Total current liabilities	5,722		5,548
Long-Term Debt (includes $1,630 at 2024 and $1,910 at 2023 related to VIEs)	23,195		22,948
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	5,173		5,197
Asset retirement obligations	4,576		3,900
Regulatory liabilities	5,353		5,083
Operating lease liabilities	525		544
Accrued pension and other post-retirement benefit costs	254		266
Investment tax credits	369		371
Other (includes $12 at 2024 and $19 at 2023 related to VIEs)	312		227
Total other noncurrent liabilities	16,562		15,588
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2024 and 2023	—		—
Additional paid-in capital	11,849		11,830
Retained earnings	11,996		11,040
Accumulated other comprehensive loss	(10)		(10)


Total equity	23,835		22,860
Total Liabilities and Equity	$	69,464	$	67,094

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	956	$	744
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)	1,330		1,265
Equity component of AFUDC	(36)		(33)

Impairment of assets and other charges	9		5
Deferred income taxes	(61)		27



Payments for asset retirement obligations	(144)		(131)
Provision for rate refunds	(1)		(24)
(Increase) decrease in

Receivables	(223)		6
Receivables from affiliated companies	85		(1)
Inventory	(106)		(238)
Other current assets	494		332
Increase (decrease) in
Accounts payable	(34)		(293)
Accounts payable to affiliated companies	24		(274)
Taxes accrued	169		153
Other current liabilities	28		(62)
Other assets	(149)		85
Other liabilities	80		14
Net cash provided by operating activities	2,421		1,575
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(2,623)		(2,425)


Purchases of debt and equity securities	(989)		(574)
Proceeds from sales and maturities of debt and equity securities	1,039		608
Notes receivable from affiliated companies	—		(25)
Other	(192)		(163)
Net cash used in investing activities	(2,765)		(2,579)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	844		1,073
Payments for the redemption of long-term debt	(407)		(79)
Notes payable to affiliated companies	(67)		(27)




Other	(1)		(1)
Net cash provided by financing activities	369		966
Net increase (decrease) in cash, cash equivalents and restricted cash	25		(38)
Cash, cash equivalents and restricted cash at beginning of period	135		184
Cash, cash equivalents and restricted cash at end of period	$	160	$	146
Supplemental Disclosures:






Significant non-cash transactions:
Accrued capital expenditures	$	729	$	544

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
					Accumulated Other Comprehensive Loss
					Net Gains		Net Unrealized
	Additional				on		Losses on		Pension and
	Paid-in		Retained		Cash Flow		Available-for-		OPEB		Total
(in millions)	Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity
Balance at March 31, 2023	$	11,830	$	9,944	$	(1)	$	(6)	$	(2)	$	21,765
Net income	—		385		—		—		—		385





Balance at June 30, 2023	$	11,830	$	10,329	$	(1)	$	(6)	$	(2)	$	22,150

Balance at March 31, 2024	$	11,830	$	11,475	$	(1)	$	(5)	$	(4)	$	23,295
Net income	—		521		—		—		—		521




Other	19		—		—		—		—		19
Balance at June 30, 2024	$	11,849	$	11,996	$	(1)	$	(5)	$	(4)	$	23,835

	Six Months Ended June 30, 2023 and 2024
					Accumulated Other Comprehensive Loss
					Net Gains		Net Unrealized
	Additional				(Losses) on		Gains (Losses) on		Pension and
	Paid-in		Retained		Cash Flow		Available-for-		OPEB		Total
	Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity
Balance at December 31, 2022	$	11,832	$	9,585	$	(1)	$	(8)	$	(2)	$	21,406
Net income	—		744		—		—		—		744
Other comprehensive income	—		—		—		2		—		2



Other	(2)		—		—		—		—		(2)
Balance at June 30, 2023	$	11,830	$	10,329	$	(1)	$	(6)	$	(2)	$	22,150

Balance at December 31, 2023	$	11,830	$	11,040	$	(1)	$	(5)	$	(4)	$	22,860
Net income	—		956		—		—		—		956




Other	19		—		—		—		—		19
Balance at June 30, 2024	$	11,849	$	11,996	$	(1)	$	(5)	$	(4)	$	23,835

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues	$	1,636	$	1,425	$	3,424	$	2,958
Operating Expenses
Fuel used in electric generation and purchased power	597		489		1,217		1,034
Operation, maintenance and other	326		356		701		706
Depreciation and amortization	306		296		645		611
Property and other taxes	50		47		101		95
Impairment of assets and other charges	9		3		9		7
Total operating expenses	1,288		1,191		2,673		2,453
Gains on Sales of Other Assets and Other, net	—		1		1		1
Operating Income	348		235		752		506
Other Income and Expenses, net	37		32		73		61
Interest Expense	123		104		243		206
Income Before Income Taxes	262		163		582		361
Income Tax Expense	39		23		87		52
Net Income and Comprehensive Income	$	223	$	140	$	495	$	309

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	33	$	18
Receivables (net of allowance for doubtful accounts of $9 at 2024 and $8 at 2023)	189		139
Receivables of VIEs (net of allowance for doubtful accounts of $38 at 2024 and $36 at 2023)	881		833
Receivables from affiliated companies	4		16
Inventory	1,303		1,227
Regulatory assets (includes $47 at 2024 and $39 at 2023 related to VIEs)	785		942
Other (includes $32 at 2024 and $31 at 2023 related to VIEs)	73		72
Total current assets	3,268		3,247
Property, Plant and Equipment
Cost	41,226		39,283
Accumulated depreciation and amortization	(15,730)		(15,227)

Net property, plant and equipment	25,496		24,056
Other Noncurrent Assets
Regulatory assets (includes $788 at 2024 and $643 at 2023 related to VIEs)	4,487		4,546
Nuclear decommissioning trust funds	4,425		4,075
Operating lease right-of-use assets, net	291		318
Other	694		682
Total other noncurrent assets	9,897		9,621
Total Assets	$	38,661	$	36,924
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	523	$	634
Accounts payable to affiliated companies	285		332
Notes payable to affiliated companies	727		891
Taxes accrued	150		176
Interest accrued	123		114
Current maturities of long-term debt (includes $440 at 2024 and $34 at 2023 related to VIEs)	479		72
Asset retirement obligations	214		244
Regulatory liabilities	285		300
Other	493		481
Total current liabilities	3,279		3,244
Long-Term Debt (includes $829 at 2024 and $1,079 at 2023 related to VIEs)	11,714		11,492
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	2,551		2,560
Asset retirement obligations	4,342		3,626
Regulatory liabilities	4,612		4,375
Operating lease liabilities	280		293
Accrued pension and other post-retirement benefit costs	139		146
Investment tax credits	127		129
Other (includes $12 at 2024 and 2023 related to VIEs)	165		102
Total other noncurrent liabilities	12,216		11,231
Commitments and Contingencies
Equity
Member's Equity	11,302		10,807


Total Liabilities and Equity	$	38,661	$	36,924

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	495	$	309
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)	738		708
Equity component of AFUDC	(27)		(27)

Impairment of assets and other charges	9		7
Deferred income taxes	(33)		32



Payments for asset retirement obligations	(102)		(106)
Provision for rate refunds	(1)		(24)
(Increase) decrease in

Receivables	(99)		108
Receivables from affiliated companies	12		(5)
Inventory	(76)		(158)
Other current assets	185		(146)
Increase (decrease) in
Accounts payable	(70)		(33)
Accounts payable to affiliated companies	(47)		(258)
Taxes accrued	(27)		44
Other current liabilities	79		(21)
Other assets	(86)		107
Other liabilities	35		37
Net cash provided by operating activities	985		574
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,373)		(1,193)


Purchases of debt and equity securities	(922)		(490)
Proceeds from sales and maturities of debt and equity securities	921		486
Notes receivable from affiliated companies	—		(37)
Other	(54)		(81)
Net cash used in investing activities	(1,428)		(1,315)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	667		991

Payments for the redemption of long-term debt	(41)		(39)
Notes payable to affiliated companies	(164)		(239)


Other	—		(1)
Net cash provided by financing activities	462		712
Net increase (decrease) in cash, cash equivalents and restricted cash	19		(29)
Cash, cash equivalents and restricted cash at beginning of period	51		79
Cash, cash equivalents and restricted cash at end of period	$	70	$	50
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	274	$	198

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended
	June 30, 2023 and 2024
(in millions)	Member's Equity
Balance at March 31, 2023	$	10,478
Net income	140



Balance at June 30, 2023	$	10,618

Balance at March 31, 2024	$	11,079
Net income	223



Balance at June 30, 2024	$	11,302

	Six Months Ended
	June 30, 2023 and 2024
(in millions)	Member's Equity
Balance at December 31, 2022	$	10,309
Net income	309



Balance at June 30, 2023	$	10,618

Balance at December 31, 2023	$	10,807
Net income	495



Balance at June 30, 2024	$	11,302

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues	$	1,716	$	1,782	$	3,152	$	3,292
Operating Expenses
Fuel used in electric generation and purchased power	605		687		1,128		1,333
Operation, maintenance and other	256		324		507		537
Depreciation and amortization	262		245		510		435
Property and other taxes	117		126		223		246
Impairment of assets and other charges	—		(2)		—		(1)
Total operating expenses	1,240		1,380		2,368		2,550
Gains on Sales of Other Assets and Other, net	—		—		1		1
Operating Income	476		402		785		743
Other Income and Expenses, net	22		7		46		37
Interest Expense	114		87		225		202
Income Before Income Taxes	384		322		606		578
Income Tax Expense	75		64		118		115
Net Income	$	309	$	258	$	488	$	463

Other Comprehensive Income, net of tax
Unrealized gains on available-for-sale securities	—		—		—		2
Other Comprehensive Income, net of tax	$	—	$	—	$	—	$	2
Comprehensive Income	$	309	$	258	$	488	$	465

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	35	$	24
Receivables (net of allowance for doubtful accounts of $26 at 2024 and $11 at 2023)	732		83
Receivables of VIEs (net of allowance for doubtful accounts of $0 at 2024 and $20 at 2023)	—		532
Receivables from affiliated companies	4		238

Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)	716		674
Regulatory assets (includes $60 at 2024 and $59 at 2023 related to VIEs)	367		720
Other (includes $35 at 2024 and $37 at 2023 related to VIEs)	61		51
Total current assets	1,915		2,322
Property, Plant and Equipment
Cost	29,459		28,353
Accumulated depreciation and amortization	(7,343)		(7,067)
Net property, plant and equipment	22,116		21,286
Other Noncurrent Assets
Regulatory assets (includes $775 at 2024 and $803 at 2023 related to VIEs)	1,939		1,883
Nuclear decommissioning trust funds	350		382
Operating lease right-of-use assets, net	297		299
Other	461		429
Total other noncurrent assets	3,047		2,993
Total Assets	$	27,078	$	26,601
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes 213 at 2024 and $188 at 2023 related to VIEs)	$	735	$	738
Accounts payable to affiliated companies	113		135
Notes payable to affiliated companies	249		152
Taxes accrued	284		185
Interest accrued	84		86
Current maturities of long-term debt (includes $59 at 2024 and $384 at 2023 related to VIEs)	435		589
Asset retirement obligations	1		1
Regulatory liabilities	83		118
Other	323		350
Total current liabilities	2,307		2,354
Long-Term Debt (includes $801 at 2024 and $831 at 2023 related to VIEs)	9,838		9,812
Other Noncurrent Liabilities
Deferred income taxes	2,710		2,733
Asset retirement obligations	234		274
Regulatory liabilities	741		708
Operating lease liabilities	245		251
Accrued pension and other post-retirement benefit costs	93		98
Investment tax credits	242		242
Other (includes $0 at 2024 and $6 at 2023 related to VIEs)	118		86
Total other noncurrent liabilities	4,383		4,392
Commitments and Contingencies
Equity
Member's equity	10,555		10,048
Accumulated other comprehensive loss	(5)		(5)
Total equity	10,550		10,043
Total Liabilities and Equity	$	27,078	$	26,601

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	488	$	463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	592		556
Equity component of AFUDC	(8)		(6)

Impairment of assets and other charges	—		(1)
Deferred income taxes	(37)		(16)



Payments for asset retirement obligations	(42)		(25)

(Increase) decrease in

Receivables	(125)		(103)
Receivables from affiliated companies	234		(3)
Inventory	(30)		(80)
Other current assets	298		403
Increase (decrease) in
Accounts payable	36		(261)
Accounts payable to affiliated companies	(22)		(65)
Taxes accrued	99		208
Other current liabilities	(49)		(41)
Other assets	(44)		(23)
Other liabilities	47		(9)
Net cash provided by operating activities	1,437		997
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,251)		(1,232)


Purchases of debt and equity securities	(67)		(83)
Proceeds from sales and maturities of debt and equity securities	117		121

Other	(138)		(81)
Net cash used in investing activities	(1,339)		(1,275)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	177		82
Payments for the redemption of long-term debt	(365)		(40)
Notes payable to affiliated companies	97		224

Other	(1)		(1)
Net cash (used in) provided by financing activities	(92)		265
Net increase (decrease) in cash, cash equivalents and restricted cash	6		(13)
Cash, cash equivalents and restricted cash at beginning of period	67		86
Cash, cash equivalents and restricted cash at end of period	$	73	$	73
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	455	$	346

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
			Accumulated
			Other
			Comprehensive
			Loss
			Net Unrealized
			Losses on
	Member's		Available-for-Sale		Total
(in millions)	Equity		Securities		Equity
Balance at March 31, 2023	$	9,237	$	(6)	$	9,231
Net income	258		—		258



Other	(1)		—		(1)
Balance at June 30, 2023	$	9,494	$	(6)	$	9,488

Balance at March 31, 2024	$	10,227	$	(5)	$	10,222
Net income	309		—		309



Other	19		—		19
Balance at June 30, 2024	$	10,555	$	(5)	$	10,550

	Six Months Ended June 30, 2023 and 2024
			Accumulated
			Other
			Comprehensive
			Loss
			Net Unrealized
			Gains (Losses) on
	Member's		Available-for-Sale		Total
(in millions)	Equity		Securities		Equity
Balance at December 31, 2022	$	9,031	$	(8)	$	9,023
Net income	463		—		463
Other comprehensive income	—		2		2



Balance at June 30, 2023	$	9,494	$	(6)	$	9,488

Balance at December 31, 2023	$	10,048	$	(5)	$	10,043
Net income	488		—		488



Other	19		—		19
Balance at June 30, 2024	$	10,555	$	(5)	$	10,550

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues
Regulated electric	$	476	$	465	$	934	$	939
Regulated natural gas	132		124		352		359

Total operating revenues	608		589		1,286		1,298
Operating Expenses
Fuel used in electric generation and purchased power	132		164		270		340
Cost of natural gas	21		20		82		112
Operation, maintenance and other	121		121		247		244
Depreciation and amortization	96		86		195		176
Property and other taxes	102		84		204		164

Total operating expenses	472		475		998		1,036

Operating Income	136		114		288		262
Other Income and Expenses, net	4		13		10		21
Interest Expense	47		43		92		79
Income Before Income Taxes	93		84		206		204
Income Tax Expense	16		13		35		33


Net Income and Comprehensive Income	$	77	$	71	$	171	$	171

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	11	$	24
Receivables (net of allowance for doubtful accounts of $42 at 2024 and $9 at 2023)	417		112

Receivables from affiliated companies	10		239
Notes receivable from affiliated companies	153		—
Inventory	191		179

Regulatory assets	83		73
Other	29		134
Total current assets	894		761
Property, Plant and Equipment
Cost	13,596		13,210
Accumulated depreciation and amortization	(3,597)		(3,451)

Net property, plant and equipment	9,999		9,759
Other Noncurrent Assets
Goodwill	920		920
Regulatory assets	689		676

Operating lease right-of-use assets, net	11		16


Other	88		84
Total other noncurrent assets	1,708		1,696
Total Assets	$	12,601	$	12,216
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	294	$	338
Accounts payable to affiliated companies	55		71

Notes payable to affiliated companies	329		613
Taxes accrued	205		316
Interest accrued	43		35
Current maturities of long-term debt	150		—

Asset retirement obligations	7		6
Regulatory liabilities	43		56
Other	65		65
Total current liabilities	1,191		1,500
Long-Term Debt	3,988		3,493
Long-Term Debt Payable to Affiliated Companies	25		25
Other Noncurrent Liabilities
Deferred income taxes	1,304		1,272
Asset retirement obligations	129		130
Regulatory liabilities	476		497
Operating lease liabilities	11		16
Accrued pension and other post-retirement benefit costs	93		97


Other	94		86
Total other noncurrent liabilities	2,107		2,098
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2024 and 2023	762		762
Additional paid-in capital	3,119		3,100
Retained earnings	1,409		1,238

Total equity	5,290		5,100
Total Liabilities and Equity	$	12,601	$	12,216

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	171	$	171
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	197		178
Equity component of AFUDC	(2)		(3)




Deferred income taxes	17		12



Payments for asset retirement obligations	(3)		(5)

(Increase) decrease in

Receivables	31		(14)
Receivables from affiliated companies	58		—
Inventory	(11)		(33)
Other current assets	82		105
Increase (decrease) in
Accounts payable	(21)		(30)
Accounts payable to affiliated companies	(16)		(12)
Taxes accrued	(111)		(135)
Other current liabilities	(6)		(48)
Other assets	34		(19)
Other liabilities	(38)		(44)
Net cash provided by operating activities	382		123
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(417)		(435)




Net proceeds from the sales of other assets	—		75
Notes receivable from affiliated companies	(319)		(93)
Other	(19)		(34)
Net cash used in investing activities	(755)		(487)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	648		749

Notes payable to affiliated companies	(284)		(388)




Other	(4)		(5)
Net cash provided by financing activities	360		356
Net decrease in cash and cash equivalents	(13)		(8)
Cash and cash equivalents at beginning of period	24		16
Cash and cash equivalents at end of period	$	11	$	8
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	93	$	120

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
			Additional
	Common		Paid-in		Retained		Total
(in millions)	Stock		Capital		Earnings		Equity
Balance at March 31, 2023	$	762	$	3,100	$	1,004	$	4,866
Net income	—		—		71		71



Balance at June 30, 2023	$	762	$	3,100	$	1,075	$	4,937

Balance at March 31, 2024	$	762	$	3,100	$	1,332	$	5,194
Net income	—		—		77		77


Other	—		19		—		19
Balance at June 30, 2024	$	762	$	3,119	$	1,409	$	5,290

	Six Months Ended June 30, 2023 and 2024
			Additional
	Common		Paid-in		Retained		Total
(in millions)	Stock		Capital		Earnings		Equity
Balance at December 31, 2022	$	762	$	3,100	$	904	$	4,766
Net income	—		—		171		171



Balance at June 30, 2023	$	762	$	3,100	$	1,075	$	4,937

Balance at December 31, 2023	$	762	$	3,100	$	1,238	$	5,100
Net income	—		—		171		171


Other	—		19		—		19
Balance at June 30, 2024	$	762	$	3,119	$	1,409	$	5,290

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating Revenues	$	747	$	780	$	1,506	$	1,755
Operating Expenses
Fuel used in electric generation and purchased power	223		248		494		697
Operation, maintenance and other	161		180		341		364
Depreciation and amortization	172		169		341		327
Property and other taxes	16		7		30		25

Total operating expenses	572		604		1,206		1,413

Operating Income	175		176		300		342
Other Income and Expenses, net	15		14		28		28
Interest Expense	58		52		115		104
Income Before Income Taxes	132		138		213		266
Income Tax Expense	22		24		36		46
Net Income	$	110	$	114	$	177	$	220
Other Comprehensive Loss, net of tax
Pension and OPEB adjustments	—		—		(1)		—
Comprehensive Income	$	110	$	114	$	176	$	220

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	13	$	8
Receivables (net of allowance for doubtful accounts of $16 at 2024 and $5 at 2023)	422		156

Receivables from affiliated companies	11		197
Notes receivable from affiliated companies	43		—
Inventory	587		582

Regulatory assets	107		102
Other	86		98
Total current assets	1,269		1,143
Property, Plant and Equipment
Cost	19,707		18,900
Accumulated depreciation and amortization	(6,681)		(6,501)

Net property, plant and equipment	13,026		12,399
Other Noncurrent Assets

Regulatory assets	942		894

Operating lease right-of-use assets, net	46		50


Other	366		325
Total other noncurrent assets	1,354		1,269
Total Assets	$	15,649	$	14,811
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	284	$	300
Accounts payable to affiliated companies	76		176

Notes payable to affiliated companies	—		256
Taxes accrued	86		66
Interest accrued	61		54
Current maturities of long-term debt	4		4

Asset retirement obligations	162		120
Regulatory liabilities	181		209
Other	213		184
Total current liabilities	1,067		1,369
Long-Term Debt	4,646		4,348
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	1,491		1,436
Asset retirement obligations	1,120		689
Regulatory liabilities	1,435		1,459
Operating lease liabilities	42		46
Accrued pension and other post-retirement benefit costs	98		115
Investment tax credits	186		186

Other	13		—
Total other noncurrent liabilities	4,385		3,931
Commitments and Contingencies
Equity
Member's equity	5,401		5,012
Accumulated other comprehensive income	—		1
Total equity	5,401		5,013
Total Liabilities and Equity	$	15,649	$	14,811

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	177	$	220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	343		328
Equity component of AFUDC	(7)		(3)


Deferred income taxes	22		—



Payments for asset retirement obligations	(34)		(38)

(Increase) decrease in

Receivables	29		(81)
Receivables from affiliated companies	(5)		—
Inventory	(5)		(104)
Other current assets	38		185
Increase (decrease) in
Accounts payable	(10)		(94)
Accounts payable to affiliated companies	(59)		(17)
Taxes accrued	20		(12)
Other current liabilities	(13)		124
Other assets	(44)		(26)
Other liabilities	(4)		78
Net cash provided by operating activities	448		560
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(489)		(450)


Purchases of debt and equity securities	(22)		(44)
Proceeds from sales and maturities of debt and equity securities	18		38
Notes receivable from affiliated companies	(160)		134
Other	(4)		(39)
Net cash used in investing activities	(657)		(361)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	298		495
Payments for the redemption of long-term debt	—		(300)
Notes payable to affiliated companies	(256)		(225)
Capital contribution from parent	235		—
Distributions to parent	(62)		(188)
Other	(1)		(1)
Net cash provided by (used in) financing activities	214		(219)
Net increase (decrease) in cash and cash equivalents	5		(20)
Cash and cash equivalents at beginning of period	8		31
Cash and cash equivalents at end of period	$	13	$	11
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	108	$	116

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
			Accumulated Other
			Comprehensive Income
	Member's		Pension and		Total
(in millions)	Equity		OPEB Adjustments		Equity
Balance at March 31, 2023	$	4,733	$	1	$	4,734
Net income	114		—		114


Distributions to parent	(21)		—		(21)

Balance at June 30, 2023	$	4,826	$	1	$	4,827

Balance at March 31, 2024	$	5,078	$	—	$	5,078
Net income	110		—		110

Contributions from parent	235		—		235
Distributions to parent	(20)		—		(20)
Other	(2)		—		(2)
Balance at June 30, 2024	$	5,401	$	—	$	5,401

	Six Months Ended June 30, 2023 and 2024
			Accumulated Other
			Comprehensive Income (Loss)
	Member's		Pension and		Total
(in millions)	Equity		OPEB Adjustments		Equity
Balance at December 31, 2022	$	4,702	$	1	$	4,703
Net income	220		—		220


Distributions to parent	(96)		—		(96)

Balance at June 30, 2023	$	4,826	$	1	$	4,827

Balance at December 31, 2023	$	5,012	$	1	$	5,013
Net income	177		—		177

Contributions from parent	235		—		235
Distributions to parent	(20)		—		(20)
Other	(3)		(1)		(4)
Balance at June 30, 2024	$	5,401	$	—	$	5,401

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023



Operating Revenues	$	244	$	236	$	920	$	911
Operating Expenses
Cost of natural gas	58		59		228		265
Operation, maintenance and other	85		82		180		171
Depreciation and amortization	64		59		126		116
Property and other taxes	16		14		31		30
Impairment of assets and other charges	—		(5)		—		(4)
Total operating expenses	223		209		565		578

Operating Income	21		27		355		333
Other Income and Expenses, net	17		16		34		32
Interest Expense	43		39		88		79
(Loss) Income Before Income Taxes	(5)		4		301		286
Income Tax (Benefit) Expense	(1)		1		59		51
Net (Loss) Income and Comprehensive (Loss) Income	$	(4)	$	3	$	242	$	235

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 30, 2024		December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$	3	$	—
Receivables (net of allowance for doubtful accounts of $11 at 2024 and 2023)	148		311

Receivables from affiliated companies	12		10

Inventory	47		112

Regulatory assets	135		161
Other	67		7
Total current assets	412		601
Property, Plant and Equipment
Cost	12,409		11,908
Accumulated depreciation and amortization	(2,353)		(2,259)

Net property, plant and equipment	10,056		9,649
Other Noncurrent Assets
Goodwill	49		49
Regulatory assets	416		410

Operating lease right-of-use assets, net	4		4
Investments in equity method unconsolidated affiliates	78		78

Other	286		276
Total other noncurrent assets	833		817
Total Assets	$	11,301	$	11,067
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	208	$	315
Accounts payable to affiliated companies	58		54

Notes payable to affiliated companies	684		538
Taxes accrued	37		89
Interest accrued	39		39
Current maturities of long-term debt	40		40


Regulatory liabilities	85		98
Other	72		77
Total current liabilities	1,223		1,250
Long-Term Debt	3,629		3,628

Other Noncurrent Liabilities
Deferred income taxes	972		933
Asset retirement obligations	27		26
Regulatory liabilities	970		988
Operating lease liabilities	9		10
Accrued pension and other post-retirement benefit costs	6		8


Other	171		172
Total other noncurrent liabilities	2,155		2,137
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2024 and 2023	1,635		1,635

Retained earnings	2,658		2,416

Total Piedmont Natural Gas Company, Inc. stockholder's equity	4,293		4,051
Noncontrolling interests	1		1
Total equity	4,294		4,052
Total Liabilities and Equity	$	11,301	$	11,067

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	June 30,
(in millions)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	242	$	235
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	127		117
Equity component of AFUDC	(13)		(10)

Impairment of assets and other charges	—		(4)
Deferred income taxes	21		33
Equity in earnings from unconsolidated affiliates	(4)		(4)




(Increase) decrease in

Receivables	162		317
Receivables from affiliated companies	(2)		(2)
Inventory	65		98
Other current assets	(38)		(57)
Increase (decrease) in
Accounts payable	(44)		(84)
Accounts payable to affiliated companies	4		(7)
Taxes accrued	(53)		(44)
Other current liabilities	(8)		27
Other assets	(10)		(7)
Other liabilities	8		4
Net cash provided by operating activities	457		612
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(571)		(535)







Other	(29)		(15)
Net cash used in investing activities	(600)		(550)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	—		348

Notes payable to affiliated companies	146		(410)





Net cash provided by (used in) financing activities	146		(62)
Net increase in cash and cash equivalents	3		—
Cash and cash equivalents at beginning of period	—		—
Cash and cash equivalents at end of period	$	3	$	—
Supplemental Disclosures:


Significant non-cash transactions:
Accrued capital expenditures	$	159	$	126

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended June 30, 2023 and 2024
					Total
					Piedmont
					Natural Gas
	Common		Retained		Company, Inc.		Noncontrolling		Total
(in millions)	Stock		Earnings		Equity		Interests		Equity
Balance at March 31, 2023	$	1,635	$	2,269	$	3,904	$	1	$	3,905
Net income	—		3		3		—		3




Balance at June 30, 2023	$	1,635	$	2,272	$	3,907	$	1	$	3,908

Balance at March 31, 2024	$	1,635	$	2,662	$	4,297	$	1	$	4,298
Net loss	—		(4)		(4)		—		(4)




Balance at June 30, 2024	$	1,635	$	2,658	$	4,293	$	1	$	4,294

	Six Months Ended June 30, 2023 and 2024
					Total
					Piedmont
					Natural Gas
	Common		Retained		Company, Inc.		Noncontrolling		Total
(in millions)	Stock		Earnings		Equity		Interests		Equity
Balance at December 31, 2022	$	1,635	$	2,037	$	3,672	$	1	$	3,673
Net income	—		235		235		—		235




Balance at June 30, 2023	$	1,635	$	2,272	$	3,907	$	1	$	3,908

Balance at December 31, 2023	$	1,635	$	2,416	$	4,051	$	1	$	4,052
Net income	—		242		242		—		242




Balance at June 30, 2024	$	1,635	$	2,658	$	4,293	$	1	$	4,294

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

Index to Combined Notes to Condensed Consolidated Financial Statements

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


	Applicable Notes
Registrant	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18
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. ORGANIZATION AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and notes required by GAAP for annual financial statements and should be read in conjunction with the Consolidated Financial Statements in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023.

The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Condensed Consolidated Financial Statements. However, none of the registrants make any representations as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself.

These Condensed Consolidated Financial Statements, in the opinion of the respective companies’ management, reflect all normal recurring adjustments necessary to fairly present the financial position and results of operations of each of the Duke Energy Registrants. Amounts reported in Duke Energy’s interim Condensed Consolidated Statements of Operations and each of the Subsidiary Registrants’ interim Condensed Consolidated Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to effects of seasonal temperature variations on energy consumption, regulatory rulings, timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors.

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

BASIS OF CONSOLIDATION

These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 13 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities.

Discontinued Operations

Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. Unless otherwise noted, the notes to these condensed consolidated financial statements exclude amounts related to discontinued operations for all periods presented. For the six months ended June 30, 2024, and 2023, the Loss From Discontinued Operations, net of tax on Duke Energy's Condensed Consolidated Statements of Operations includes amounts related to noncontrolling interests. A portion of Noncontrolling interests on Duke Energy's Condensed Consolidated Balance Sheets relates to discontinued operations for the periods presented. See Note 2 for discussion of discontinued operations related to the Commercial Renewables Disposal Groups.

NONCONTROLLING INTEREST

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


FINANCIAL STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 11 and 13 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included in the Condensed Consolidated Balance Sheets.


	June 30, 2024										December 31, 2023
			Duke				Duke		Duke				Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Duke		Energy		Progress		Energy		Energy
	Energy		Carolinas		Energy		Progress		Florida		Energy		Carolinas		Energy		Progress		Florida
Current Assets
Cash and cash equivalents	$	390	$	9	$	85	$	33	$	35	$	253	$	9	$	59	$	18	$	24
Other	74		10		64		32		32		76		9		67		31		36
Other Noncurrent Assets
Other	18		1		11		5		6		16		1		9		2		7
Total cash, cash equivalents and restricted cash	$	482	$	20	$	160	$	70	$	73	$	345	$	19	$	135	$	51	$	67

INVENTORY

Provisions for inventory write-offs were not material at June 30, 2024, and December 31, 2023. The components of inventory are presented in the tables below.


	June 30, 2024
			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	$	3,254	$	1,094	$	1,588	$	1,051	$	537	$	150	$	373	$	12
Coal	846		372		233		146		87		29		212		—
Natural gas, oil and other fuel	290		43		198		106		92		12		2		35
Total inventory	$	4,390	$	1,509	$	2,019	$	1,303	$	716	$	191	$	587	$	47


	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 fuel	364		45		205		110		95		12		2		100
Total inventory	$	4,292	$	1,484	$	1,901	$	1,227	$	674	$	179	$	582	$	112

OTHER NONCURRENT ASSETS

Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of $150 million related to the arrangement in Other within Other noncurrent assets on the Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023. The asset is recorded in the EU&I segment at historical cost and is subject to impairment testing should circumstances indicate the carrying value may not be recoverable.

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.


FINANCIAL STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

The following table represents the changes in confirmed obligations outstanding for the six months ended June 30, 2024, and 2023.


	Three months ended June 30, 2023 and 2024
			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 March 31, 2023	$	52	$	7	$	15	$	6	$	9	$	—	$	—	$	29
Invoices confirmed during the period	55		10		20		12		8		2		—		24
Confirmed invoices paid during the period	(67)		(12)		(21)		(6)		(15)		—		—		(34)
Confirmed obligations outstanding at June 30, 2023	$	40	$	5	$	14	$	12	$	2	$	2	$	—	$	19

Confirmed obligations outstanding at the March 31, 2024	$	76	$	—	$	2	$	—	$	2	$	—	$	—	$	74
Invoices confirmed during the period	63		—		—		—		—		—		—		63
Confirmed invoices paid during the period	(111)		—		(2)		—		(2)		—		—		(109)
Confirmed obligations outstanding at June 30, 2024	$	28	$	—	$	—	$	—	$	—	$	—	$	—	$	28

	Six Months Ended June 30, 2023 and 2024
			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, 2022	$	87	$	6	$	19	$	8	$	11	$	5	$	—	$	57
Invoices confirmed during the period	114		20		42		23		19		3		—		49
Confirmed invoices paid during the period	(161)		(21)		(47)		(19)		(28)		(6)		—		(87)
Confirmed obligations outstanding at June 30, 2023	$	40	$	5	$	14	$	12	$	2	$	2	$	—	$	19

Confirmed obligations outstanding at December 31, 2023	$	50	$	—	$	3	$	—	$	3	$	—	$	—	$	47
Invoices confirmed during the period	120		—		1		—		1		—		—		119
Confirmed invoices paid during the period	(142)		—		(4)		—		(4)		—		—		(138)
Confirmed obligations outstanding at June 30, 2024	$	28	$	—	$	—	$	—	$	—	$	—	$	—	$	28

NEW ACCOUNTING STANDARDS

No new accounting standards were adopted by the Duke Energy Registrants in 2024.

2. DISPOSITIONS

Sale of Commercial Renewables Segment

In 2023, Duke Energy completed the sale of substantially all the assets in the Commercial Renewables business segment. Duke Energy closed on the transaction with Brookfield 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 remaining proceeds to be received of $538 million is included in Receivable from sales of Commercial Renewables Disposal Groups, as of June 30, 2024, and $531 million is included in Other, within Other Noncurrent Assets, as of December 31, 2023, on Duke Energy's Consolidated Balance Sheets. The disposal process for the remaining assets is expected to be completed in 2024, with net proceeds from the dispositions not anticipated to be material.

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.


FINANCIAL STATEMENTS			DISPOSITIONS

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


(in millions)	June 30, 2024		December 31, 2023
Current Assets Held for Sale



Other	$	4	$	14
Total current assets held for sale	4		14
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost	98		247
Accumulated depreciation and amortization	(24)		(57)
Net property, plant and equipment	74		190
Operating lease right-of-use assets, net	4		4

Other	—		3
Total other noncurrent assets held for sale	4		7
Total Assets Held for Sale	$	82	$	211
Current Liabilities Associated with Assets Held for Sale
Accounts payable	$	19	$	9
Taxes accrued	1		3
Current maturities of long-term debt	43		5
Unrealized losses on commodity hedges	16		68
Other	2		37
Total current liabilities associated with assets held for sale	81		122
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt	—		39

Operating lease liabilities	5		5
Asset retirement obligations	8		8
Unrealized losses on commodity hedges	88		94
Other	11		11
Total other noncurrent liabilities associated with assets held for sale	112		157
Total Liabilities Associated with Assets Held for Sale	$	193	$	279

As of June 30, 2024, and December 31, 2023, the noncontrolling interest balance is $13 million and $66 million, 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.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Operating revenues	$	13	$	110	$	7	$	190


Operation, maintenance and other	12		88		16		177

Property and other taxes	1		9		1		19


Other income and expenses, net	—		(3)		—		(7)
Interest expense	—		12		2		43
Loss on disposal	15		1,214		5		1,434
Loss before income taxes	(15)		(1,216)		(17)		(1,490)
Income tax benefit	(5)		(261)		(4)		(326)
Loss from discontinued operations	$	(10)	$	(955)	$	(13)	$	(1,164)
Add: Net loss attributable to noncontrolling interest included in discontinued operations	—		7		—		71
Net loss from discontinued operations attributable to Duke Energy Corporation	$	(10)	$	(948)	$	(13)	$	(1,093)

The Commercial Renewables Disposal Groups' assets held for sale amounts presented above reflect pretax impairments recorded against property, plant and equipment of approximately $169 million and $278 million as of June 30, 2024, and December 31, 2023, respectively. The carrying amounts for the remaining assets will be updated, if necessary, based on final disposition amounts.


FINANCIAL STATEMENTS			DISPOSITIONS

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


	Six Months Ended
	June 30,
(in millions)	2024		2023
Cash flows provided by (used in):
Operating activities	$	7	$	274
Investing activities	(13)		(417)

Other Sale-Related Matters

Duke Energy (Parent) and several Duke Energy renewables project companies, located in the ERCOT market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to all but one of the project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. In May 2024, the remaining claim in the lawsuit was transferred to the buyer in connection with the sale of a portion of the remaining Commercial Renewables assets. See Note 5 for more information.

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

3. BUSINESS SEGMENTS

Duke Energy

Duke Energy's segment structure includes the following two segments: EU&I and GU&I.

The EU&I segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. EU&I also includes Duke Energy's electric transmission infrastructure investments and the offshore wind contract for Carolina Long Bay.

The GU&I segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky and Duke Energy's natural gas storage, midstream pipeline and renewable natural gas investments.

The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's ownership interest in National Methanol Company.

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


	Three Months Ended June 30, 2024
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	6,802	$	359	$	7,161	$	11	$	—	$	7,172
Intersegment revenues	18		22		40		29		(69)		—
Total revenues	$	6,820	$	381	$	7,201	$	40	$	(69)	$	7,172
Segment income (loss)(a)	$	1,090	$	6	$	1,096	$	(200)	$	—	$	896
Add: Noncontrolling interests											21
Add: Preferred stock dividend											14
Discontinued operations											(10)
Net Income											$	921
Segment assets(b)	$	159,770	$	17,600	$	177,370	$	4,205	$	—	$	181,575


FINANCIAL STATEMENTS			BUSINESS SEGMENTS


	Three Months Ended June 30, 2023
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	6,232	$	337	$	6,569	$	9	$	—	$	6,578
Intersegment revenues	18		22		40		25		(65)		—
Total revenues	$	6,250	$	359	$	6,609	$	34	$	(65)	$	6,578
Segment income (loss)	$	850	$	25	$	875	$	(161)	$	—	$	714
Add: Noncontrolling interests											16
Add: Preferred stock dividend											14
Discontinued operations											(948)
Net Loss											$	(204)

(a)EU&I includes $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense on Duke Energy Carolinas' and Duke Energy Progress' Condensed Consolidated Statement of Operations, related to the South Carolina rate case order.

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


	Six Months Ended June 30, 2024
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	13,587	$	1,238	$	14,825	$	18	$	—	$	14,843
Intersegment revenues	36		45		81		60		(141)		—
Total revenues	$	13,623	$	1,283	$	14,906	$	78	$	(141)	$	14,843
Segment income (loss)(a)	$	2,111	$	290	$	2,401	$	(403)	$	—	$	1,998
Add: Noncontrolling interests											34
Add: Preferred stock dividend											53
Discontinued operations											(13)
Net Income											$	2,072


	Six Months Ended June 30, 2023
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	12,613	$	1,225	$	13,838	$	16	$	—	$	13,854
Intersegment revenues	35		45		80		49		(129)		—
Total revenues	$	12,648	$	1,270	$	13,918	$	65	$	(129)	$	13,854
Segment income (loss)	$	1,641	$	312	$	1,953	$	(329)	$	—	$	1,624
Add: Noncontrolling interests											(27)
Add: Preferred stock dividend											53
Discontinued operations											(1,093)
Net Income											$	557

Duke Energy Ohio

Duke Energy Ohio has two reportable segments, EU&I and GU&I. The remainder of Duke Energy Ohio's operations is presented as Other.


	Three Months Ended June 30, 2024
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total


Total revenues	$	476	$	132	$	608	$	—	$	—	$	608
Segment income (loss)/Net income	$	69	$	9	$	78	$	(1)	$	—	$	77

Segment assets	$	8,034	$	4,389	$	12,423	$	13	$	165	$	12,601


FINANCIAL STATEMENTS			BUSINESS SEGMENTS


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


Total revenues	$	465	$	124	$	589	$	—	$	589
Segment income (loss)/Net income	$	54	$	18	$	72	$	(1)	$	71


	Six Months Ended June 30, 2024
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Total


Total revenues	$	934	$	352	$	1,286	$	—	$	1,286
Segment income (loss)/Net income	$	124	$	50	$	174	$	(3)	$	171


	Six Months Ended June 30, 2023
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Total


Total revenues	$	939	$	359	$	1,298	$	—	$	1,298
Segment income (loss)/Net income	$	103	$	70	$	173	$	(2)	$	171

4. REGULATORY MATTERS

RATE-RELATED INFORMATION

The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. The FERC also regulates certification and siting of new interstate natural gas pipeline projects. For open regulatory matters, unless otherwise noted, the Subsidiary Registrants and Duke Energy Kentucky cannot predict the outcome or ultimate resolution of their respective matters.

Duke Energy Carolinas and Duke Energy Progress

Nuclear Statio****n 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 Hearing Request 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 ONS. The NRC order also indicated no subsequent renewed licenses will be issued until the NRC staff has completed an adequate NEPA review for each application. On April 5, 2022, the NRC approved a 24-month rulemaking plan that will enable the NRC staff to complete an adequate NEPA review. Although an SLR applicant may wait until the rulemaking is completed, the NRC also noted that an applicant may submit a supplement to its environmental report providing information on environmental impacts during the SLR period prior to the rulemaking being completed. On November 7, 2022, Duke Energy Carolinas submitted a supplement to its environmental report addressing environmental impacts during the SLR period. On March 6, 2024, the NRC staff submitted the rulemaking, which included the updated GEIS, to the NRC. The NRC approved the publication of the final rule on May 16, 2024. The updated GEIS was finalized and published on August 1, 2024 and the final rule is expected to be issued in early August 2024.

On December 19, 2022, the NRC published a notice in the Federal Register that the NRC will conduct a limited scoping process to gather additional information necessary to prepare an environmental impact statement (EIS) to evaluate the environmental impacts at ONS during the SLR period. The NRC received comments from the EPA and the Petitioners and these comments identify 18 potential impacts that should be considered by the NRC in the EIS, which include, but are not limited to, climate change and flooding, environmental justice, severe accidents, and external events. On February 8, 2024, the NRC issued the Oconee site-specific draft EIS. The NRC and EPA published the notice for the public to submit comments on the ONS site-specific draft EIS. On April 29, 2024, the petitioners filed a Hearing Request. The request proposed three contentions and claimed that the ONS site-specific draft EIS is inadequate to satisfy the requirements of NEPA and the NRC’s NEPA-implementing regulations. Duke Energy Carolinas provided responses to the proposed contentions by May 31, 2024 as ordered by the ASLB. On June 24, 2024, the ASLB convened a pre-hearing conference to obtain information and ask questions concerning the admissibility of the Petitioners' contentions. The ASLB's decision is expected to be issued in August 2024.


FINANCIAL STATEMENTS			REGULATORY MATTERS

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

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

Duke Energy Carolinas and Duke Energy Progress intend to seek renewal of operating licenses and 20-year license extensions for all of their nuclear stations.

Duke Energy Carolinas

2023 North Carolina Rate Case

On January 19, 2023, Duke Energy Carolinas filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR application included a multiyear rate plan (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 Carolinas Carbon Plan (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 an equity ratio of 53% 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. Duke Energy Carolinas implemented interim rates, subject to refund, on September 1, 2023. New revised Year 1 rates and the residential decoupling were implemented on January 15, 2024.

On February 13, 2024, a number of parties filed Notices of Appeal of the December 15, 2023, NCUC order. Notices of Appeal were filed by the Carolina Industrial Group for Fair Utility Rates (CIGFUR) III, a collection of various electric membership corporations (collectively, the EMCs), and the North Carolina Attorney General’s Office (the AGO). CIGFUR III and the EMCs appealed the interclass subsidy reduction percentage and the Transmission Cost Allocation stipulation. In addition, CIGFUR III appealed the NCUC’s elimination of the equal percentage fuel cost allocation methodology. The AGO appealed several issues including the authorized ROE and certain rate design and accounting matters. On March 1, 2024, Carolina Utility Customers Association, Inc. appealed several issues, including the authorized ROE and certain rate design and accounting matters. In July 2024, the Supreme Court of North Carolina consolidated the appeal with the parallel appeal of the NCUC's order regarding the Duke Energy Progress PBR application. The briefing is scheduled to be completed by November 22, 2024. Duke Energy Carolinas anticipates a decision to be issued by the third quarter of 2025.

2024 South Carolina Rate Case

On January 4, 2024, Duke Energy Carolinas filed a rate case with the PSCSC to request an increase in base rate retail revenues. On May 17, 2024, Duke Energy Carolinas and the Office of Regulatory Staff, as well as other consumer, environmental, and industrial intervening parties, filed an Agreement and Stipulation of Settlement resolving all issues in the base rate proceeding. The major components of the settlement include a $240 million annual customer rate increase, prior to a reduction from the accelerated return to customers of federal unprotected Property, Plant and Equipment related EDIT of $84 million annually over the first two years. The stipulation includes an ROE of 9.94% with an equity ratio of 51.21% and resolves recovery of the Company's continued investments in the grid, its new corporate headquarters and environmental compliance costs. The PSCSC held a hearing on May 20, 2024, to consider evidence supporting the stipulation. On July 3, 2024, the PSCSC issued its final order approving an increase in base rates, and approving nearly all components of the Agreement and Stipulation of Settlement. The order revised recovery of certain environmental compliance costs, the only provision of the settlement agreement not fully approved by the PSCSC. As a result, Duke Energy Carolinas recognized pretax charges of $33 million within Impairment of assets and other charges, $2 million within Operations, maintenance and other, partially offset by an $11 million reduction in Interest expense, for the three and six months ended June 30, 2024, on the Condensed Consolidated Statements of Operations. Based upon the order, after accelerating the EDIT giveback to customers, the net rate increase is $150 million annually for the first two years. Revised customer rates were effective August 1, 2024, and are based upon a South Carolina retail rate base of $7.4 billion.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Marshall Combustion Turbines CPCN

On March 14, 2024, Duke Energy Carolinas filed with the NCUC an application to construct and operate two hydrogen-capable advanced-class simple-cycle combustion turbines (CTs) at the site of the existing Marshall Steam Station. The two new CTs – totaling approximately 850 MW – will enable the retirement of Marshall coal units 1 and 2 and provide incremental capacity to support system capacity needs and expanded flexibility to support integration of renewables. Pending regulatory approvals, construction is planned to start in 2026, and the CTs are targeted to be placed into service by the end of 2028. As part of the application, Duke Energy Carolinas noted that Construction Work in Progress for the proposed facility will accrue AFUDC and will not be in rate base, resulting in no impact on Duke Energy Carolinas' North Carolina retail revenue requirement during the construction period. The 2029 North Carolina retail revenue requirement for the proposed facility is estimated to be $104 million, representing an approximate average retail rate increase of 2.2% across all classes.

Duke Energy Progress

2022 North Carolina Rate Case

On October 6, 2022, Duke Energy Progress filed a PBR application with the NCUC to request an increase in base rate retail revenues. The rate request before the NCUC included an MYRP to recover projected capital investments during the three-year 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 an equity ratio of 53% 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. 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 of the August 18, 2023 NCUC order. Both parties are appealing certain matters that do not impact the overall revenue requirement in the rate case. Specifically, they 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. In July 2024, the Supreme Court of North Carolina consolidated the appeal with the parallel appeal of the NCUC's order regarding the Duke Energy Carolinas PBR application. The briefing is scheduled to be completed by November 22, 2024. Duke Energy Progress anticipates a decision to be issued by the third quarter of 2025.

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 through securitization due to storm recovery activities required as a result of the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. On September 8, 2023, Duke Energy Progress filed a comprehensive settlement agreement with all parties on all cost recovery issues raised in the storm securitization proceeding.

The evidentiary hearing occurred in early September 2023. On September 20, 2023, the PSCSC approved the comprehensive settlement agreement and on October 13, 2023, the PSCSC issued its financing order. The storm recovery bonds of $177 million were issued by Duke Energy Progress on April 25, 2024. Duke Energy Progress implemented storm recovery charges effective May 1, 2024. See Notes 6 and 13 for more information.

Person County Combined Cycle CPCN

On March 28, 2024, Duke Energy Progress filed with the NCUC its application to construct and operate a 1,360-MW hydrogen-capable, advanced-class combined-cycle generating facility (CC) in Person County at the site of the existing Roxboro Plant. Subject to negotiation of final contractual terms, the new Roxboro CC will be co-owned with the North Carolina Electric Membership Corporation (NCEMC), with Duke Energy Progress owning approximately 1,135 MW and NCEMC owning the remaining 225 MW. Pending regulatory approvals, construction is planned to start in 2026, with the CC targeted to be placed in service by the end of 2028. The CC will allow for the retirement of Roxboro’s coal-fired units 1 and 4. As part of the application, Duke Energy Progress noted that the recovery of Construction Work in Progress during the construction period for the proposed facility may be pursued in a future rate case. The 2029 North Carolina retail revenue requirement for the proposed facility is estimated to be $98 million, representing an approximate average retail rate increase of 2.6% across all classes.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Florida

2021 Settlement Agreement

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

Pursuant to the 2021 Settlement, the Parties agreed to a base rate stay-out provision that expires year-end 2024; however, Duke Energy Florida is allowed an increase to its base rates of an incremental $67 million in 2022, $49 million in 2023 and $79 million in 2024, subject to adjustment in the event of tax reform during the years 2021, 2022 and 2023. The Parties also agreed to an ROE band of 8.85% to 10.85% with a midpoint of 9.85% based upon an equity ratio of 53%. The ROE band can be increased by 25 basis points if the average 30-year U.S. Treasury rate increases 50 basis points or more over a six-month period in which case the midpoint ROE would rise from 9.85% to 10.10%. On July 25, 2022, this provision was triggered. Duke Energy Florida filed a petition with the FPSC on August 12, 2022, to increase the ROE effective August 2022 with a base rate increase effective January 1, 2023. The FPSC approved this request on October 4, 2022. The 2021 Settlement Agreement also provided that Duke Energy Florida will be able to retain $173 million of the expected Department of Energy (DOE) award from its lawsuit to recover spent nuclear fuel to mitigate customer rates over the term of the 2021 Settlement. In return, Duke Energy Florida is permitted to recognize the $173 million into earnings through the approved settlement period. Duke Energy Florida settled the DOE lawsuit and received payment of approximately $180 million on June 15, 2022, of which the retail portion was approximately $154 million. The 2021 Settlement authorizes Duke Energy Florida to collect the difference between $173 million and the $154 million retail portion of the amount received through the capacity cost recovery clause. As of June 30, 2024, Duke Energy Florida has recognized $157 million (pretax) into earnings, including $8 million and $9 million recognized during the three months ended June 30, 2024, and 2023, respectively, and $16 million and $63 million recognized during the six months ended June 30, 2024, and 2023, respectively. The remaining $16 million is expected to be recognized in 2024.

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

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

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

Clean Energy Connection

On July 1, 2020, Duke Energy Florida petitioned the FPSC for approval of a voluntary solar program 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 is included in base rates offset by the revenue from the subscription fees and the credits will be included for recovery in the fuel cost recovery clause. The FPSC approved the program in January 2021.

On February 24, 2021, the League of United Latin American Citizens (LULAC) filed a notice of appeal of the FPSC’s order approving the Clean Energy Connection to the Supreme Court of Florida. The Supreme Court of Florida heard oral arguments in the appeal on February 9, 2022. On May 27, 2022, the Supreme Court of Florida issued an order remanding the case back to the FPSC so that the FPSC can amend its order to better address some of the arguments raised by LULAC. On September 23, 2022, the FPSC issued a revised order and submitted it on September 26, 2022, to the Supreme Court of Florida. The Supreme Court of Florida requested that the parties file supplemental briefs regarding the revised order, which were filed February 6, 2023. LULAC has filed a request for Oral Argument on the issues discussed in the supplemental briefs, but the court has yet to rule on that request. The FPSC approval order remains in effect pending the outcome of the appeal.

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.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Hurricanes Ian and Idalia

On September 28, 2022, much of Duke Energy Florida’s service territory was impacted by Hurricane Ian, which caused significant damage resulting in more than 1.1 million outages. 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 approved the prudence of these costs at a final hearing on May 21, 2024.

On August 30, 2023, Hurricane Idalia made landfall on Florida’s gulf coast, causing damage and impacting more than 200,000 customers across Duke Energy Florida's service territory. 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.

2024 Florida Rate Case

On April 2, 2024, Duke Energy Florida filed a formal request for new base rates with the FPSC. Duke Energy Florida has proposed a three-year rate plan that would begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024. Duke Energy Florida proposed multiyear rate increases that use the projected 12-month periods ending December 31, 2025, 2026, and 2027 as the test years, with adjusted rates to be effective with the first billing period of January 2025, 2026, and 2027, respectively. Duke Energy Florida requested additional base rate revenue requirements of approximately $593 million in 2025, $98 million in 2026 and $129 million in 2027, representing an average annual increase in revenue requirements of approximately 4% over 2025 through 2027. Duke Energy Florida requested an ROE midpoint at 11.15% and an equity ratio of 53%.

On July 15, 2024, Duke Energy Florida filed a settlement agreement with the FPSC. The parties to the settlement include Duke Energy Florida, the Office of Public Counsel and other intervening parties. Pursuant to the settlement, the parties agreed to a base rate stay-out provision that expires year-end 2027; however, Duke Energy Florida is allowed an increase to its base rates in 2025 and 2026, as well as utilization of certain tax benefits in lieu of a revenue increase in 2027. Additionally, revenue increases related to solar investments will be recovered via the Solar Base Rate Adjustment mechanism. The parties also agreed to an ROE band of 9.3% to 11.3% with a midpoint of 10.3% with an equity ratio of 53%. If approved, the agreement will provide $203 million and $59 million in base rate increases in 2025 and 2026, respectively, as well as increases associated with investments in 12 new solar facilities as they come online, estimated at $12 million, $71 million and $58 million in 2025, 2026 and 2027, respectively. The settlement is subject to the review and approval of the FPSC and a hearing has been scheduled to begin on August 21, 2024.

Duke Energy Ohio

Duke Energy Ohio Electric Base Rate Case

Duke Energy Ohio filed with the PUCO an electric distribution base rate case application on October 1, 2021, with supporting testimony filed on October 15, 2021, requesting an increase in electric distribution base rates of approximately $55 million. On September 19, 2022, Duke Energy Ohio filed a Stipulation and Recommendation with the PUCO, which includes an increase in overall electric distribution base rates of approximately $23 million with an equity ratio of 50.5% and an ROE of 9.5%. The stipulation is among all but one party to the proceeding. The PUCO issued an order on December 14, 2022, approving the Stipulation without material modification. Rates went into effect on January 3, 2023. The Ohio Consumers' Counsel filed an application for rehearing on January 13, 2023, arguing the Stipulation was unreasonable, discriminatory, and denied OCC due process. On March 20, 2024, the PUCO issued its Second Entry on Rehearing, denying OCC's rehearing application. The deadline for OCC to seek an appeal has expired and the matter is now closed.

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 Electric Security Plan

On April 1, 2024, Duke Energy Ohio filed with the PUCO a request for an Electric Security Plan (ESP). The ESP application proposes a three-year term from June 1, 2025 through May 31, 2028 and includes continuation of market-based customer rates through competitive procurement processes for generation and continuation and expansion of existing rider mechanisms. Duke Energy Ohio is proposing a new rider mechanism relating to electric distribution infrastructure modernization programs, which may be enabled by and partially funded through federal or state funding opportunities, future battery storage projects, and two proposed electric vehicle programs. Additional proposed new rider mechanisms are related to solar for all investments for low-income and disadvantaged communities, low-income senior citizen bill assistance, and energy efficiency and demand-side management programs. An evidentiary hearing is scheduled to commence on October 22, 2024.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Kentucky Electric Base Rate Case

On December 1, 2022, Duke Energy Kentucky filed a rate case with the KPSC requesting an annualized increase in electric base rates of approximately $75 million. 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 Combustion Turbine (CT) generation stations. Duke Energy Kentucky also requested approval for 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. The briefing concluded on April 1, 2024, and the matter was submitted for decision on April 2, 2024. On July 1, 2024, the KPSC issued its final order on rehearing, ruling in Duke Energy Kentucky's favor on nearly all issues. However, the KPSC ordered Duke Energy Kentucky to refund alleged over collections since the KPSC's October 12, 2023 order. On July 10, 2024, the KPSC issued an order correcting the base fuel rate used to calculate new base rates in its July 1, 2024 order and its calculation of Duke Energy Kentucky's Street Lighting Rate. New rates were implemented in August 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. Duke Energy Kentucky filed its initial brief in June 2024. Appellee briefs are due September 24, 2024, and Duke Energy Kentucky's reply brief is due November 8, 2024.

Duke Energy Indiana

Indiana Coal Ash Recovery

In Duke Energy Indiana’s 2019 rate case, the IURC opened a subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana filed testimony on April 15, 2020, in the coal ash subdocket requesting recovery for the post-2018 coal ash basin closure costs for plans that have been approved by the Indiana Department of Environmental Management (IDEM) as well as continuing deferral, with carrying costs, on the balance. 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.

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 IURC 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 seeks to recover the pre-order costs denied by the Indiana Court of Appeals and certain future coal ash closure costs as part of depreciation costs in the 2024 Indiana Rate Case.

Duke Energy Indiana filed a new petition under the amended version of the federal mandate statute for additional post-2018 coal ash closure costs for the remaining basins not included in the Indiana coal ash recovery case from 2020. An evidentiary hearing was held on January 25, 2024. On May 8, 2024, the IURC issued a CPCN and approved these coal ash related compliance projects as federally mandated compliance projects. On June 7, 2024, the Citizens Action Coalition of Indiana (CAC) filed a motion to appeal the IURC order for the coal ash CPCN proceeding.

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 and the parties await the court's decision.

2024 Indiana Rate Case

On April 4, 2024, Duke Energy Indiana filed an application with the IURC for a rate increase of $492 million, representing an overall average bill increase of approximately 16.2%, which, if approved, would be added to retail customer bills in two steps, approximately 11.7% in 2025 and approximately 4.5% in 2026. Duke Energy Indiana requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by $1.6 billion in investments made since the last general rate case filed in 2019 in order to reliably serve customers, improve resiliency of the system, and advance environmental sustainability. An evidentiary hearing is scheduled to begin August 29, 2024.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Piedmont

2024 North Carolina Rate Case

On April 1, 2024, Piedmont filed an application with the NCUC for a rate increase for retail customers of approximately $159 million, which represents a 12.5% increase in retail revenues. Piedmont requested an ROE of 10.5% with an equity ratio of 53%. The rate increase is driven by significant infrastructure upgrade investments since the last general rate case, offset by lower fixed natural gas costs and remaining federal and state tax reform savings to be received by customers. Approximately 40% of the plant additions being rolled into rate base are categories of plant investment that are covered under the IMR mechanism, which was originally approved as part of the 2013 North Carolina Rate Case. Piedmont plans to implement revised interim rates by November 1, 2024. An evidentiary hearing is scheduled to begin September 17, 2024.

5. COMMITMENTS AND CONTINGENCIES

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 Duke Energy Registrants.

Remediation Activities

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

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


(in millions)	June 30, 2024		December 31, 2023
Reserves for Environmental Remediation
Duke Energy	$	82	$	88
Duke Energy Carolinas	23		23
Progress Energy	20		19
Duke Energy Progress	9		9
Duke Energy Florida	10		10
Duke Energy Ohio	31		36
Duke Energy Indiana	2		2
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

For open litigation, unless otherwise noted, Duke Energy and the Subsidiary Registrants cannot predict the outcome or ultimate resolution of their respective matters.

D****uke 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.


FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

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, and the generator defendants responded on May 6, 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. In May 2024, the remaining claim in the lawsuit was transferred to the buyer in connection with the sale of a portion of the remaining Commercial Renewables assets. See Note 2 for more information related to the sale of the Commercial Renewables Disposal Groups.

Duke Energy Carolinas

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 an 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 took place on May 7, 2024. On August 5, 2024, the U.S. Court of Appeals for the Fourth Circuit reversed the district court's grant of summary judgment and remanded the case back to the district court for further proceedings.

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 $410 million at June 30, 2024, and $423 million at December 31, 2023. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Condensed Consolidated Balance Sheets. These reserves are based on Duke Energy Carolinas' best estimate for current and future asbestos claims through 2043 and are recorded on an undiscounted basis. In light of the uncertainties inherent in a longer-term forecast, management does not believe they can reasonably estimate the indemnity and medical costs that might be incurred after 2043 related to such potential claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in excess of the recorded reserves.

Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention. Receivables for insurance recoveries were $572 million at June 30, 2024, and December 31, 2023. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Condensed Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.

The reserve for credit losses for insurance receivables is $9 million as of June 30, 2024, and December 31, 2023, 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 coal combustion residuals-related expenses and liabilities covered by third-party liability insurance policies. The insurance policies cover the 1969-1972 and 1984-1985 periods and provide third-party liability insurance for claims and suits alleging property damage, bodily injury and personal injury (or a combination thereof). A trial date has not yet been set.


FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

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. Duke Energy Indiana has also reached confidential settlements with other various insurance companies, the results of which were not material. In June 2024, Duke Energy Indiana filed an amended complaint adding several additional insurance companies as defendants to the litigation and the court entered an order staying the litigation until October 24, 2024.

Other Litigation and Legal Proceedings

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

OTHER COMMITMENTS AND CONTINGENCIES

General

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

In addition, the Duke Energy Registrants enter into various fixed-price, noncancelable commitments to purchase or sell power or natural gas, take-or-pay arrangements, transportation, or throughput agreements and other contracts that may or may not be recognized on their respective Condensed Consolidated Balance Sheets. Some of these arrangements may be recognized at fair value on their respective Condensed Consolidated Balance Sheets if such contracts meet the definition of a derivative and the NPNS exception does not apply. In most cases, the Duke Energy Registrants’ purchase obligation contracts contain provisions for price adjustments, minimum purchase levels and other financial commitments.

6. DEBT AND CREDIT FACILITIES

SUMMARY OF SIGNIFICANT DEBT ISSUANCES

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


				Six Months Ended June 30, 2024
						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
Unsecured Debt
January 2024(a)	January 2027	4.850	%	$	600	$	600	$	—	$	—	$	—	$	—	$	—
January 2024(a)	January 2029	4.850	%	650		650		—		—		—		—		—
April 2024(e)	April 2031	5.648	%	815		815		—		—		—		—		—
June 2024(d)	June 2034	5.450	%	750		750		—		—		—		—		—
June 2024(d)	June 2054	5.800	%	750		750		—		—		—		—		—
June 2024(h)	July 2031	5.900	%	80		—		—		—		—		80		—
June 2024(h)	July 2034	6.000	%	95		—		—		—		—		95		—
June 2024(h)	July 2039	6.170	%	50		—		—		—		—		50		—
Secured Debt
April 2024(f)	March 2044	5.404	%	177		—		—		177		—		—		—
First Mortgage Bonds
January 2024(b)	January 2034	4.850	%	$	575	$	—	$	575	$	—	—		$	—	$	—
January 2024(b)	January 2054	5.400	%	425		—		425		—		—		—		—
March 2024(b)	March 2034	5.250	%	300		—		—		—		—		—		300
March 2024(c)	March 2034	5.100	%	500		—		—		500		—		—		—
March 2024(d)	March 2054	5.550	%	425		—		—		—		—		425		—
April 2024(g)	April 2074	4.970	%	173		—		—		—		173		—		—



Total issuances				$	6,365	$	3,565	$	1,000	$	677	$	173	$	650	$	300

(a)Proceeds were used to repay the remaining $1 billion outstanding on Duke Energy (Parent)'s variable rate Term Loan Facility due March 2024, pay down a portion of short-term debt and for general corporate purposes. Duke Energy (Parent)'s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.

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

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


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

(d)Proceeds were used to pay down a portion of short-term debt and for general corporate purposes.

(e)In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 10 for additional information.

(f)Proceeds were used to finance the South Carolina portion of restoration expenditures related to the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. See Notes 4 and 13 for more information.

(g)Debt has a floating interest rate. Proceeds were used to pay down a portion of the DEFR accounts receivable securitization facility due in April 2024, and for general company purposes. See Note 13 for more information.

(h)Debt issued by Duke Energy Kentucky with proceeds used to pay down a portion of short-term debt and for general corporate purposes.

CURRENT MATURITIES OF LONG-TERM DEBT

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


(in millions)	Maturity Date	Interest Rate		June 30, 2024
Unsecured Debt
Duke Energy (Parent)	April 2025	3.364	%	$	420
Duke Energy (Parent)	April 2025	3.950	%	250
Duke Energy Ohio	June 2025	6.900	%	150



Secured Debt
Duke Energy Carolinas(a)	January 2025	6.177	%	305
Duke Energy Carolinas(a)	January 2025	5.973	%	195
Duke Energy Progress(a)	April 2025	6.199	%	240
Duke Energy Progress(a)	April 2025	6.177	%	160
First Mortgage Bonds
Duke Energy Florida(a)(b)	October 2073	4.998	%	200
Duke Energy Florida(a)(b)	April 2074	4.970	%	173
Other(c)				247
Current maturities of long-term debt				$	2,340

(a)Debt has a floating interest rate.

(b)These first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets based on terms of the indentures, which could require repayment in less than 12 months if exercised by the bondholders.

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

AVAILABLE CREDIT FACILITIES

Master Credit Facility

In March 2024, Duke Energy extended the termination date of its existing $9 billion Master Credit Facility to March 2029. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. An amendment in conjunction with the issuance of the Convertible Senior Notes due April 2026 clarifies that payments due as a result of a conversion of a convertible note would not constitute an event of default.


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

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


	June 30, 2024
			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	$	1,400	$	1,500	$	875	$	1,050	$	950	$	950
Reduction to backstop issuances
Commercial paper(b)	(3,271)		(803)		(307)		(813)		(227)		(348)		(150)		(623)
Outstanding letters of credit	(38)		(26)		(4)		(1)		(7)		—		—		—
Tax-exempt bonds	(81)		—		—		—		—		—		(81)		—

Available capacity under the Master Credit Facility	$	5,610	$	1,446	$	1,089	$	686	$	641	$	702	$	719	$	327

(a)Represents the sublimit of each borrower.

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

Duke Energy Term Loan Facility

On March 26, 2024, Duke Energy (Parent) entered into a 364-day term loan facility with commitments totaling $700 million. Any undrawn commitments could be drawn up until April 25, 2024 (30 days after the effective date of the agreement) or are otherwise ineligible to be drawn. On April 24, 2024, $500 million was drawn under the facility with borrowings used for general corporate purposes. Borrowings could be prepaid at any time throughout the term of the facility and the terms and conditions of the facility were generally consistent with those governing Duke Energy's Master Credit Facility. During the second quarter of 2024, Duke Energy (Parent) terminated the facility and repaid the $500 million in outstanding borrowings.

7. ASSET RETIREMENT OBLIGATIONS

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

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


	June 30, 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Decommissioning of nuclear power facilities(a)	$	4,608	$	1,999	$	2,603	$	2,455	$	148	$	—	$	—	$	—
Closure of ash impoundments	5,473		2,058		2,091		2,067		24		71		1,253		—
Other	273		55		97		34		63		65		29		27
Total ARO	$	10,354	$	4,112	$	4,791	$	4,556	$	235	$	136	$	1,282	$	27
Less: Current portion	636		252		215		214		1		7		162		—
Total noncurrent ARO	$	9,718	$	3,860	$	4,576	$	4,342	$	234	$	129	$	1,120	$	27


FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

ARO Liability Rollforward

In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities.

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


			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at December 31, 2023(a)	$	9,156	$	4,013	$	4,145	$	3,870	$	275	$	136	$	809	$	26

Accretion expense(b)	204		90		96		91		5		3		17		1
Liabilities settled(c)	(306)		(95)		(167)		(120)		(47)		(3)		(40)		—

Revisions in estimates of cash flows(d)	1,300		104		717		715		2		—		496		—
Balance at June 30, 2024	$	10,354	$	4,112	$	4,791	$	4,556	$	235	$	136	$	1,282	$	27

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

(b)For the six months ended June 30, 2024, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.

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

(d)The revision amounts represent the change in discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases primarily relate to additional scope requirements to regulate the disposal of CCR in landfills and surface impoundments as a result of the 2024 CCR Rule, including an increase in groundwater monitoring wells.

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

8. GOODWILL

Duke Energy

Duke Energy's Goodwill balance of $19.3 billion is allocated $17.4 billion to EU&I and $1.9 billion to GU&I on Duke Energy's Condensed Consolidated Balance Sheets at June 30, 2024, and December 31, 2023. There are no accumulated impairment charges.

Duke Energy Ohio

Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to EU&I and $324 million to GU&I, is presented net of accumulated impairment charges of $216 million on the Condensed Consolidated Balance Sheets at June 30, 2024, and December 31, 2023.

Progress Energy

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

Piedmont

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


FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

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


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Duke Energy Carolinas
Corporate governance and shared service expenses(a)	$	189	$	192	$	403	$	388
Indemnification coverages(b)	11		8		22		17
JDA revenue(c)	6		8		22		21
JDA expense(c)	53		34		93		63
Intercompany natural gas purchases(d)	5		4		9		9
Progress Energy
Corporate governance and shared service expenses(a)	$	171	$	172	$	359	$	350
Indemnification coverages(b)	15		12		29		24
JDA revenue(c)	53		34		93		63
JDA expense(c)	6		8		22		21
Intercompany natural gas purchases(d)	18		18		37		37
Duke Energy Progress
Corporate governance and shared service expenses(a)	$	100	$	104	$	214	$	211
Indemnification coverages(b)	6		5		12		10
JDA revenue(c)	53		34		93		63
JDA expense(c)	6		8		22		21
Intercompany natural gas purchases(d)	18		18		37		37
Duke Energy Florida
Corporate governance and shared service expenses(a)	$	71	$	68	$	145	$	139
Indemnification coverages(b)	9		7		17		14
Duke Energy Ohio
Corporate governance and shared service expenses(a)	$	77	$	76	$	154	$	149
Indemnification coverages(b)	1		2		3		3
Duke Energy Indiana
Corporate governance and shared service expenses(a)	$	83	$	84	$	185	$	183
Indemnification coverages(b)	3		2		5		4
Piedmont
Corporate governance and shared service expenses(a)	$	40	$	37	$	81	$	75
Indemnification coverages(b)	1		1		2		2
Intercompany natural gas sales(d)	23		22		46		46
Natural gas storage and transportation costs(e)	6		6		12		12

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

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

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

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

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


FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

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

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

Intercompany Income Taxes

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


	Duke				Duke		Duke		Duke		Duke
	Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2024
Intercompany income tax receivable	$	—	$	—	$	—	$	—	$	2	$	—	$	39
Intercompany income tax payable	98		167		53		120		—		29		—

December 31, 2023
Intercompany income tax receivable	$	—	$	—	$	—	$	—	$	91	$	53	$	—
Intercompany income tax payable	81		92		94		114		—		—		57

10. 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 Condensed Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Condensed Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities or financing activities on the Condensed Consolidated Statements of Cash Flows consistent with the classification of the hedged transaction.

INTEREST RATE RISK

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

Cash Flow Hedges

For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2024, and 2023, were not material. Duke Energy's interest rate derivatives designated as hedges include forward-starting interest rate swaps not accounted for under regulatory accounting.

Undesignated Contracts

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

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


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

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


	June 30, 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana		Ohio
Cash flow hedges	$	1,700	$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	3,052		1,150		1,675		1,125		550		200		27
Total notional amount	$	4,752	$	1,150	$	1,675	$	1,125	$	550	$	200	$	27


	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

COMMODITY PRICE RISK

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

Undesignated Contracts

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

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

Volumes

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


	June 30, 2024
		Duke		Duke	Duke	Duke
	Duke	Energy	Progress	Energy	Energy	Energy
	Energy	Carolinas	Energy	Progress	Ohio	Indiana	Piedmont
Electricity (GWh)	27,518	—	—	—	2,966	24,552	—
Natural gas (millions of dekatherms)	781	249	241	241	—	38	253


	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 dekatherms)	846	279	274	274	—	30	263

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.


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Fair Value Hedges

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

The following table shows Duke Energy's outstanding derivatives related to foreign currency risk at June 30, 2024.


										Fair Value Gain (Loss)(a)
										(in millions)
	Pay Notional				Receive Notional		Receive		Hedge	Three Months Ended June 30,				Six Months Ended June 30,
	(in millions)		Pay Rate		(in millions)		Rate		Maturity Date	2024		2023		2024		2023
Fair value hedges
	$	645	4.75	%	600	euros	3.10	%	June 2028	$	(2)	$	5	$	—	$	10
	537		5.31	%	500	euros	3.85	%	June 2034	(2)		3		—		8
	815		5.648	%	750	euros	3.75	%	April 2031	(9)		—		(9)		—
Total notional amount	$	1,997			1,850	euros				$	(13)	$	8	$	(9)	$	18

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

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

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


Derivative Assets	June 30, 2024
			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	$	48	$	5	$	5	$	4	$	—	$	2	$	36	$	1
Noncurrent	53		23		29		29		—		—		—		—
Total Derivative Assets – Commodity Contracts	$	101	$	28	$	34	$	33	$	—	$	2	$	36	$	1
Interest Rate Contracts
Designated as Hedging Instruments

Noncurrent	60		—		—		—		—		—		—		—
Not Designated as Hedging Instruments

Noncurrent	70		18		30		30		1		—		22		—
Total Derivative Assets – Interest Rate Contracts	$	130	$	18	$	30	$	30	$	1	$	—	$	22	$	—
Foreign Currency Contracts
Designated as Hedging Instruments

Noncurrent	16		—		—		—		—		—		—		—



Total Derivative Assets – Foreign Currency Contracts	$	16	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Assets	$	247	$	46	$	64	$	63	$	1	$	2	$	58	$	1


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	June 30, 2024
			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	$	218	$	114	$	77	$	77	$	—	$	—	$	8	$	19
Noncurrent	195		45		36		36		—		—		—		113
Total Derivative Liabilities – Commodity Contracts	$	413	$	159	$	113	$	113	$	—	$	—	$	8	$	132
Interest Rate Contracts
Designated as Hedging Instruments

Noncurrent	5		—		—		—		—		—		—		—
Not Designated as Hedging Instruments

Noncurrent	9		2		6		5		2		1		—		—
Total Derivative Liabilities – Interest Rate Contracts	$	14	$	2	$	6	$	5	$	2	$	1	$	—	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current	31		—		—		—		—		—		—		—
Noncurrent	15		—		—		—		—		—		—		—



Total Derivative Liabilities – Foreign Currency Contracts	$	46	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities	$	473	$	161	$	119	$	118	$	2	$	1	$	8	$	132


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

OFFSETTING ASSETS AND LIABILITIES

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


Derivative Assets	June 30, 2024
			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	$	48	$	5	$	5	$	4	$	—	$	2	$	36	$	1
Offset	(8)		(4)		(4)		(4)		—		—		—		—

Net amounts presented in Current Assets: Other	$	40	$	1	$	1	$	—	$	—	$	2	$	36	$	1
Noncurrent
Gross amounts recognized	$	199	$	41	$	59	$	59	$	1	$	—	$	22	$	—
Offset	(36)		(17)		(19)		(19)		—		—		—		—

Net amounts presented in Other Noncurrent Assets: Other	$	163	$	24	$	40	$	40	$	1	$	—	$	22	$	—


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	June 30, 2024
			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	$	249	$	114	$	77	$	77	$	—	$	—	$	8	$	19
Offset	(8)		(4)		(4)		(4)		—		—		—		—
Cash collateral posted	(16)		(7)		(1)		(1)		—		—		(8)		—
Net amounts presented in Current Liabilities: Other	$	225	$	103	$	72	$	72	$	—	$	—	$	—	$	19
Noncurrent
Gross amounts recognized	$	224	$	47	$	42	$	41	$	2	$	1	$	—	$	113
Offset	(35)		(17)		(19)		(19)		—		—		—		—
Cash collateral posted	(9)		(8)		(1)		(1)		—		—		—		—
Net amounts presented in Other Noncurrent Liabilities: Other	$	180	$	22	$	22	$	21	$	2	$	1	$	—	$	113


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

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.


	June 30, 2024
			Duke				Duke
	Duke		Energy		Progress		Energy
(in millions)	Energy		Carolinas		Energy		Progress
Aggregate fair value of derivatives in a net liability position	$	242	$	134	$	108	$	108
Fair value of collateral already posted	17		15		2		2
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered	$	225	$	119	$	106	$	106


	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

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

11. INVESTMENTS IN DEBT AND EQUITY SECURITIES

Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as Available for Sale (AFS) and investments in equity securities as fair value through net income (FV-NI).

For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.

Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.

Investment Trusts

The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the guidelines set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.

Other AFS Securities

Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of June 30, 2024, and December 31, 2023.

Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY

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


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	151	$	—	$	—	$	133
Equity securities	5,612		23		7,859		4,942		22		7,278
Corporate debt securities	7		44		691		12		43		632
Municipal bonds	3		15		330		6		16		347
U.S. government bonds	6		79		1,668		24		65		1,575

Other debt securities	1		10		244		1		13		178
Total NDTF Investments	$	5,629	$	171	$	10,943	$	4,985	$	159	$	10,143
Other Investments
Cash and cash equivalents	$	—	$	—	$	124	$	—	$	—	$	31
Equity securities	51		—		177		33		—		158
Corporate debt securities	—		6		91		—		6		82
Municipal bonds	—		2		81		1		2		77
U.S. government bonds	—		4		50		—		2		65
Other debt securities	—		4		47		—		2		47
Total Other Investments	$	51	$	16	$	570	$	34	$	12	$	460
Total Investments	$	5,680	$	187	$	11,513	$	5,019	$	171	$	10,603

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and six months ended June 30, 2024, and 2023, were as follows.


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
FV-NI:
Realized gains	$	127	$	20	$	195	$	46
Realized losses	27		36		45		82
AFS:
Realized gains	2		13		12		21
Realized losses	22		27		36		59

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.


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	57	$	—	$	—	$	51
Equity securities	3,254		16		4,527		2,886		14		4,196
Corporate debt securities	2		37		424		4		35		390
Municipal bonds	—		4		41		—		4		50
U.S. government bonds	2		44		894		13		33		826
Other debt securities	1		10		225		1		13		172
Total NDTF Investments	$	3,259	$	111	$	6,168	$	2,904	$	99	$	5,685


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
FV-NI:
Realized gains	$	72	$	9	$	125	$	27
Realized losses	15		18		21		47
AFS:
Realized gains	1		4		5		9
Realized losses	11		8		17		28

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.


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	94	$	—	$	—	$	82
Equity securities	2,358		7		3,332		2,056		8		3,082
Corporate debt securities	5		7		267		8		8		242
Municipal bonds	3		11		289		6		12		297
U.S. government bonds	4		35		774		11		32		749

Other debt securities	—		—		19		—		—		6
Total NDTF Investments	$	2,370	$	60	$	4,775	$	2,081	$	60	$	4,458
Other Investments
Cash and cash equivalents	$	—	$	—	$	25	$	—	$	—	$	18

Municipal bonds	—		1		23		—		1		23
Total Other Investments	$	—	$	1	$	48	$	—	$	1	$	41
Total Investments	$	2,370	$	61	$	4,823	$	2,081	$	61	$	4,499


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
FV-NI:
Realized gains	$	55	$	11	$	70	$	19
Realized losses	12		18		24		35
AFS:
Realized gains	1		9		7		12
Realized losses	11		19		19		31


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY PROGRESS

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


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	77	$	—	$	—	$	55
Equity securities	2,243		7		3,205		1,956		8		2,970
Corporate debt securities	4		7		254		7		8		229
Municipal bonds	3		11		289		6		12		297
U.S. government bonds	4		23		583		10		18		518
Other debt securities	—		—		17		—		—		6
Total NDTF Investments	$	2,254	$	48	$	4,425	$	1,979	$	46	$	4,075
Other Investments
Cash and cash equivalents	$	—	$	—	$	18	$	—	$	—	$	14
Total Other Investments	$	—	$	—	$	18	$	—	$	—	$	14
Total Investments	$	2,254	$	48	$	4,443	$	1,979	$	46	$	4,089


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
FV-NI:
Realized gains	$	55	$	11	$	70	$	19
Realized losses	12		17		24		34
AFS:
Realized gains	1		8		7		11
Realized losses	10		17		18		29

DUKE ENERGY FLORIDA

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


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	17	$	—	$	—	$	27
Equity securities	115		—		127		100		—		112
Corporate debt securities	1		—		13		1		—		13

U.S. government bonds	—		12		191		1		14		231

Other debt securities	—		—		2		—		—		—
Total NDTF Investments(a)	$	116	$	12	$	350	$	102	$	14	$	383
Other Investments
Cash and cash equivalents	$	—	$	—	$	3	$	—	$	—	$	3

Municipal bonds	—		1		23		—		1		23
Total Other Investments	$	—	$	1	$	26	$	—	$	1	$	26
Total Investments	$	116	$	13	$	376	$	102	$	15	$	409

(a)During the six months ended June 30, 2024, and the year ended December 31, 2023, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY INDIANA

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


	June 30, 2024						December 31, 2023
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
Investments
Cash and cash equivalents	$	—	$	—	$	2	$	—	$	—	$	1
Equity securities	15		—		110		4		—		98
Corporate debt securities	—		—		7		—		—		8
Municipal bonds	—		1		47		1		1		46
U.S. government bonds	—		—		8		—		—		10

Total Investments	$	15	$	1	$	174	$	5	$	1	$	163

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.


	June 30, 2024
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	115	$	11	$	81	$	18	$	63	$	8
Due after one through five years	785		297		403		289		114		21
Due after five through 10 years	664		411		209		197		12		9
Due after 10 years	1,638		865		679		639		40		24
Total	$	3,202	$	1,584	$	1,372	$	1,143	$	229	$	62

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


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

Investments in debt securities

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

Commodity derivatives

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

Interest rate derivatives

Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.

Foreign currency derivatives

Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.

Other fair value considerations

See Note 12 in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of the valuation of goodwill and intangible assets.

DUKE ENERGY

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 10. See Note 11 for additional information related to investments by major security type for the Duke Energy Registrants.


	June 30, 2024
(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized
NDTF cash and cash equivalents	$	151	$	151	$	—	$	—	$	—
NDTF equity securities	7,859		7,827		—		—		32
NDTF debt securities	2,933		917		2,016		—		—
Other equity securities	177		177		—		—		—
Other debt securities	269		47		222		—		—
Other cash and cash equivalents	124		124		—		—		—

Derivative assets	247		3		209		35		—
Total assets	11,760		9,246		2,447		35		32

Derivative liabilities	(473)		(39)		(434)		—		—
Net assets	$	11,287	$	9,207	$	2,013	$	35	$	32


	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


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

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


	Derivatives (net)
	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	6	$	12	$	15	$	34


Purchases, sales, issuances and settlements:
Purchases	29		47		29		47


Settlements	(10)		(38)		(23)		(58)

Total gains included on the Condensed Consolidated Balance Sheet	10		20		14		18
Balance at end of period	$	35	$	41	$	35	$	41

DUKE ENERGY CAROLINAS

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


	June 30, 2024
(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized
NDTF cash and cash equivalents	$	57	$	57	$	—	$	—
NDTF equity securities	4,527		4,495		—		32
NDTF debt securities	1,584		455		1,129		—

Derivative assets	46		—		46		—
Total assets	6,214		5,007		1,175		32
Derivative liabilities	(161)		—		(161)		—
Net assets	$	6,053	$	5,007	$	1,014	$	32


	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

PROGRESS ENERGY

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


	June 30, 2024						December 31, 2023
(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	$	94	$	94	$	—	$	82	$	82	$	—
NDTF equity securities	3,332		3,332		—		3,082		3,082		—
NDTF debt securities	1,349		462		887		1,294		454		840
Other debt securities	23		—		23		23		—		23
Other cash and cash equivalents	25		25		—		18		18		—
Derivative assets	64		—		64		34		—		34
Total assets	4,887		3,913		974		4,533		3,636		897

Derivative liabilities	(119)		—		(119)		(234)		—		(234)
Net assets	$	4,768	$	3,913	$	855	$	4,299	$	3,636	$	663


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY PROGRESS

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


	June 30, 2024						December 31, 2023
(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	$	77	$	77	$	—	$	55	$	55	$	—
NDTF equity securities	3,205		3,205		—		2,970		2,970		—
NDTF debt securities	1,143		305		838		1,050		266		784

Other cash and cash equivalents	18		18		—		14		14		—
Derivative assets	63		—		63		32		—		32
Total assets	4,506		3,605		901		4,121		3,305		816
Derivative liabilities	(118)		—		(118)		(219)		—		(219)
Net assets	$	4,388	$	3,605	$	783	$	3,902	$	3,305	$	597

DUKE ENERGY FLORIDA

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


	June 30, 2024						December 31, 2023
(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	$	17	$	17	$	—	$	27	$	27	$	—
NDTF equity securities	127		127		—		112		112		—
NDTF debt securities	206		157		49		244		188		56
Other debt securities	23		—		23		23		—		23
Other cash and cash equivalents	3		3		—		3		3		—
Derivative assets	1		—		1		2		—		2
Total assets	377		304		73		411		330		81

Derivative liabilities	(2)		—		(2)		(15)		—		(15)
Net assets	$	375	$	304	$	71	$	396	$	330	$	66

DUKE ENERGY OHIO

The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Condensed Consolidated Balance Sheets were not material at June 30, 2024, and December 31, 2023.

DUKE ENERGY INDIANA

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


	June 30, 2024								December 31, 2023
(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3
Other equity securities	$	110	$	110	$	—	$	—	$	98	$	98	$	—	$	—
Other debt securities	62		—		62		—		64		—		64		—
Other cash and cash equivalents	2		2		—		—		1		1		—		—
Derivative assets	58		3		22		33		25		5		7		13
Total assets	232		115		84		33		188		104		71		13
Derivative liabilities	(8)		(8)		—		—		(18)		(18)		—		—
Net assets	$	224	$	107	$	84	$	33	$	170	$	86	$	71	$	13


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

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


	Derivatives (net)
	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	5	$	11	$	13	$	29


Purchases, sales, issuances and settlements:
Purchases	27		42		27		42


Settlements	(9)		(37)		(20)		(56)

Total gains included on the Condensed Consolidated Balance Sheet	10		21		13		22
Balance at end of period	$	33	$	37	$	33	$	37

PIEDMONT

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


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


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

Derivative liabilities	(132)		—		(132)			(147)		—		(147)
Net (liabilities) assets	$	(131)	$	1	$	(132)		$	(146)	$	1	$	(147)

QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS

The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.


	June 30, 2024
										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	$	0.22	-	$	1.78	$	0.52
Duke Energy Indiana
FTRs	33		RTO auction pricing	FTR price – per MWh	(0.31)		-	14.00		1.82


Duke Energy
Total Level 3 derivatives	$	35


	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


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.


	June 30, 2024				December 31, 2023
(in millions)	Book Value		Fair Value		Book Value		Fair Value
Duke Energy(a)	$	78,779	$	70,796	$	75,252	$	69,790
Duke Energy Carolinas	17,026		15,409		16,012		15,077
Progress Energy	24,259		22,144		23,759		22,553
Duke Energy Progress	12,343		10,785		11,714		10,595
Duke Energy Florida	10,273		9,594		10,401		10,123
Duke Energy Ohio	4,163		3,829		3,518		3,310
Duke Energy Indiana	4,800		4,317		4,502		4,230
Piedmont	3,669		3,221		3,668		3,336

(a)Book value of long-term debt includes $1.1 billion and $1.0 billion at June 30, 2024, and December 31, 2023, respectively, of net unamortized debt discount and premium of purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.

At both June 30, 2024, and December 31, 2023, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.

13. VARIABLE INTEREST ENTITIES

CONSOLIDATED VIEs

The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.

No financial support was provided to any of the consolidated VIEs during the six months ended June 30, 2024, and the year ended December 31, 2023, or is expected to be provided in the future that was not previously contractually required.

Receivables Financing – DERF/DEPR/DEFR

DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies.

DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the DERF, DEPR and DEFR credit facilities are reflected on the Condensed Consolidated Balance Sheets as Current maturities of long-term debt.

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

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

Receivables Financing – CRC

CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC bought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC then borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility was limited to the amount of qualified receivables sold to CRC, which generally excluded receivables past due more than a predetermined number of days and reserved for expected past-due balances. The sole source of funds to satisfy the related debt obligation was cash collections from the receivables.

The proceeds Duke Energy Ohio and Duke Energy Indiana received from the sale of receivables to CRC were approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note was a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC would be required by Duke Energy to maintain a minimum equity balance of $3 million.


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

CRC was considered a VIE because (i) equity capitalization was insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity was not held by the equity holder and (iii) deficiencies in net worth of CRC were funded by Duke Energy. The most significant activities that impacted the economic performance of CRC were decisions made to manage delinquent receivables. Duke Energy was considered the primary beneficiary and consolidated CRC as it made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidated CRC.

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

Receivables Financing – Credit Facilities

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


	Duke Energy
		Duke Energy		Duke Energy		Duke Energy
		Carolinas		Progress		Florida
(in millions)	CRC	DERF		DEPR		DEFR
Expiration date	(a)	January 2025		April 2025		(b)
Credit facility amount	(a)	$	500	$	400	(b)
Amounts borrowed at June 30, 2024	—	500		400		—
Amounts borrowed at December 31, 2023	312	500		400		325
Restricted Receivables at June 30, 2024	—	1,128		881		—
Restricted Receivables at December 31, 2023	663	991		833		532

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

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

Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance

Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.

In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.

DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.

The following table summarizes the impact of DEFPF on Duke Energy Florida's Condensed Consolidated Balance Sheets.


(in millions)	June 30, 2024	December 31, 2023

Regulatory Assets: Current	60	59
Current Assets: Other	32	37
Other Noncurrent Assets: Regulatory assets	775	803
Current Liabilities: Other	8	8
Current maturities of long-term debt	59	59
Long-Term Debt	801	831

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 incurred in North Carolina.

In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ North Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress.


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

DECNCSF and DEPNCSF are considered VIEs primarily because the equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries and consolidate DECNCSF and DEPNCSF, respectively.

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


	June 30, 2024				December 31, 2023
	Duke Energy		Duke Energy		Duke Energy		Duke Energy
(in millions)	Carolinas		Progress		Carolinas		Progress
Regulatory Assets: Current	$	12	$	39	$	12	$	39
Current Assets: Other	10		31		9		31
Other Noncurrent Assets: Regulatory assets	191		626		196		643
Other Noncurrent Assets: Other	1		4		1		2

Current Liabilities: Other	2		10		10		34
Current maturities of long-term debt	10		34		3		8
Long-Term Debt	203		663		208		680

Storm Recovery Bonds – Duke Energy Progress SC Storm Funding

Duke Energy Progress SC Storm Funding, LLC (DEPSCSF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Progress. This entity was formed in 2023 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in South Carolina.

In April 2024, DEPSCSF issued $177 million of senior secured bonds and used the proceeds to acquire storm recovery property from Duke Energy Progress. The storm recovery property was created by state legislation and a PSCSC financing order for the purpose of financing storm costs incurred from 2014 through 2022. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Progress’ South Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Progress.

DEPSCSF is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Progress has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Progress is considered the primary beneficiary and consolidates DEPSCSF.

The following table summarizes the impact of this VIE on Duke Energy Progress' Consolidated Balance Sheets.


(in millions)	June 30, 2024
Regulatory Assets: Current	$	9

Other Noncurrent Assets: Regulatory assets	162



Current maturities of long-term debt	6
Long-Term Debt	166

Procurement Company – Duke Energy Florida

Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo

was formed in 2023 as the primary procurer of equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with

third-party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified

reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset.

This entity is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Florida has the power to direct the significant activities of this VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates the procurement company.

The following table summarizes the impact of this VIE on Duke Energy Florida's Consolidated Balance Sheets.


(in millions)	June 30, 2024		December 31, 2023
Inventory	$	494	$	462
Accounts Payable	213		188


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

NON-CONSOLIDATED VIEs

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


	June 30, 2024
	Duke Energy		Duke		Duke
	Natural Gas		Energy		Energy
(in millions)	Investments		Ohio		Indiana
Receivables from affiliated companies	$	—	$	—	$	—

Investments in equity method unconsolidated affiliates	58		—		—
Other noncurrent assets	29		—		—
Total assets	$	87	$	—	$	—

Other current liabilities	4		—		—

Other noncurrent liabilities	2		—		—
Total liabilities	$	6	$	—	$	—
Net assets	$	81	$	—	$	—


	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

The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above.

Natural Gas Investments

Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.

CRC

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 as of December 31, 2023. The subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value as of December 31, 2023.

The following table shows the gross and net receivables sold. See discussion under Consolidated VIEs for additional information related to CRC's termination in March 2024.


	Duke Energy Ohio				Duke Energy Indiana
(in millions)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Receivables sold	$	—	$	361	$	—	$	351
Less: Retained interests	—		150		—		208
Net receivables sold	$	—	$	211	$	—	$	143


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

The following table shows sales and cash flows related to receivables sold and reflects CRC activity prior to its termination in March 2024.


		Duke Energy Ohio					Duke Energy Indiana
	Six Months Ended					Six Months Ended
	June 30,					June 30,
(in millions)		2024		2023				2024		2023
Sales
Receivables sold		$	474	$	1,381			$	473	$	1,665
Loss recognized on sale		7		17				6		19
Cash flows
Cash proceeds from receivables sold		$	478	$	1,445			$	523	$	1,793
Collection fees received		—		1				—		1
Return received on retained interests		4		10				4		13

Cash flows from sales of receivables are reflected within Cash Flows From Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Condensed Consolidated Statements of Cash Flows.

14. REVENUE

Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.

Electric Utilities and Infrastructure

EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.

The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:


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

Progress Energy	$	35	$	30	$	7	$	7	$	7	$	29	$	115
Duke Energy Progress	4		—		—		—		—		—		4
Duke Energy Florida	31		30		7		7		7		29		111

Duke Energy Indiana	8		17		17		15		5		—		62

Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.

Gas Utilities and Infrastructure

GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.

Fixed-capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:


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

Piedmont	$	33	$	61	$	51	$	49	$	46	$	195	$	435

Other

The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.


FINANCIAL STATEMENTS			REVENUE

Disaggregated Revenues

Disaggregated revenues are presented as follows:


	Three Months Ended June 30, 2024
			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	$	3,092	$	959	$	1,625	$	661	$	964	$	240	$	269	$	—
General	2,013		755		933		427		506		144		180		—
Industrial	869		374		267		183		84		39		190		—
Wholesale	524		127		337		298		39		10		49		—
Other revenues	293		99		187		91		96		18		39		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,791	$	2,314	$	3,349	$	1,660	$	1,689	$	451	$	727	$	—

Gas Utilities and Infrastructure
Residential	$	182	$	—	$	—	$	—	$	—	$	86	$	—	$	96
Commercial	103		—		—		—		—		31		—		72
Industrial	32		—		—		—		—		6		—		24
Power Generation	—		—		—		—		—		—		—		8
Other revenues	32		—		—		—		—		9		—		23
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	349	$	—	$	—	$	—	$	—	$	132	$	—	$	223

Other
Revenue from contracts with customers	$	11	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	7,151	$	2,314	$	3,349	$	1,660	$	1,689	$	583	$	727	$	223

Other revenue sources(a)	$	21	$	(17)	$	8	$	(24)	$	27	$	25	$	20	$	21
Total revenues	$	7,172	$	2,297	$	3,357	$	1,636	$	1,716	$	608	$	747	$	244


FINANCIAL STATEMENTS			REVENUE


	Three Months Ended June 30, 2023
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,740	$	715	$	1,555	$	539	$	1,016	$	208	$	262	$	—
General	1,876		607		914		369		545		141		212		—
Industrial	827		320		274		180		94		56		177		—
Wholesale	498		126		294		259		35		12		66		—
Other revenues	189		49		144		70		74		22		32		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,130	$	1,817	$	3,181	$	1,417	$	1,764	$	439	$	749	$	—

Gas Utilities and Infrastructure
Residential	$	179	$	—	$	—	$	—	$	—	$	82	$	—	$	97
Commercial	100		—		—		—		—		31		—		69
Industrial	30		—		—		—		—		6		—		24
Power Generation	—		—		—		—		—		—		—		23
Other revenues	25		—		—		—		—		5		—		5
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	334	$	—	$	—	$	—	$	—	$	124	$	—	$	218

Other
Revenue from contracts with customers	$	9	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	6,473	$	1,817	$	3,181	$	1,417	$	1,764	$	563	$	749	$	218

Other revenue sources(a)	$	105	$	11	$	31	$	8	$	18	$	26	$	31	$	18
Total revenues	$	6,578	$	1,828	$	3,212	$	1,425	$	1,782	$	589	$	780	$	236

(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


	Six Months Ended June 30, 2024
			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	$	6,207	$	2,017	$	3,142	$	1,403	$	1,739	$	493	$	556	$	—
General	3,947		1,472		1,799		849		950		296		381		—
Industrial	1,691		714		533		360		173		71		373		—
Wholesale	1,078		265		692		624		68		24		97		—
Other revenues	546		198		336		169		167		40		73		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	13,469	$	4,666	$	6,502	$	3,405	$	3,097	$	924	$	1,480	$	—

Gas Utilities and Infrastructure
Residential	$	702	$	—	$	—	$	—	$	—	$	233	$	—	$	469
Commercial	343		—		—		—		—		88		—		255
Industrial	79		—		—		—		—		17		—		62
Power Generation	—		—		—		—		—		—		—		16
Other revenues	72		—		—		—		—		14		—		58
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,196	$	—	$	—	$	—	$	—	$	352	$	—	$	860

Other
Revenue from contracts with customers	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Revenue from contracts with customers	$	14,683	$	4,666	$	6,502	$	3,405	$	3,097	$	1,276	$	1,480	$	860

Other revenue sources(a)	$	160	$	38	$	83	$	19	$	55	$	10	$	26	$	60
Total revenues	$	14,843	$	4,704	$	6,585	$	3,424	$	3,152	$	1,286	$	1,506	$	920


FINANCIAL STATEMENTS			REVENUE


	Six Months Ended June 30, 2023
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	5,591	$	1,539	$	2,976	$	1,146	$	1,830	$	442	$	634	$	—
General	3,707		1,195		1,755		727		1,028		276		482		—
Industrial	1,718		616		546		357		189		127		428		—
Wholesale	1,048		261		642		578		64		21		124		—
Other revenues	333		127		265		138		127		49		47		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	12,397	$	3,738	$	6,184	$	2,946	$	3,238	$	915	$	1,715	$	—

Gas Utilities and Infrastructure
Residential	$	686	$	—	$	—	$	—	$	—	$	244	$	—	$	442
Commercial	333		—		—		—		—		89		—		244
Industrial	77		—		—		—		—		15		—		61
Power Generation	—		—		—		—		—		—		—		46
Other revenues	65		—		—		—		—		11		—		24
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,161	$	—	$	—	$	—	$	—	$	359	$	—	$	817

Other
Revenue from contracts with customers	$	16	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Revenue from contracts with customers	$	13,574	$	3,738	$	6,184	$	2,946	$	3,238	$	1,274	$	1,715	$	817

Other revenue sources(a)	$	280	$	24	$	76	$	12	$	54	$	24	$	40	$	94
Total revenues	$	13,854	$	3,762	$	6,260	$	2,958	$	3,292	$	1,298	$	1,755	$	911


FINANCIAL STATEMENTS			REVENUE

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


	Three Months Ended June 30, 2023 and 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at March 31, 2023	$	214	$	70	$	75	$	45	$	30	$	7	$	4	$	14
Write-Offs	(43)		(20)		(18)		(10)		(8)		—		—		(5)
Credit Loss Expense	23		6		12		4		8		1		—		4
Other Adjustments	5		1		4		4		—		—		—		—
Balance at June 30, 2023	$	199	$	57	$	73	$	43	$	30	$	8	$	4	$	13

Balance at March 31, 2024	$	204	$	62	$	73	$	47	$	27	$	41	$	16	$	12
Write-Offs	(36)		(16)		(17)		(12)		(5)		—		—		(3)
Credit Loss Expense	35		10		11		6		5		1		—		2
Other Adjustments	4		9		6		6		(1)		—		—		—
Balance at June 30, 2024	$	207	$	65	$	73	$	47	$	26	$	42	$	16	$	11

	Six Months Ended June 30, 2023 and 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at December 31, 2022	$	216	$	68	$	81	$	44	$	36	$	6	$	4	$	14

Write-Offs	(85)		(40)		(40)		(19)		(20)		—		—		(6)
Credit Loss Expense	39		13		18		5		13		2		—		5
Other Adjustments	29		16		14		13		1		—		—		—
Balance at June 30, 2023	$	199	$	57	$	73	$	43	$	30	$	8	$	4	$	13

Balance at December 31, 2023	$	205	$	56	$	74	$	44	$	31	$	9	$	5	$	11
Write-Offs	(68)		(28)		(33)		(19)		(14)		—		—		(4)
Credit Loss Expense	45		17		20		10		10		2		2		4
Other Adjustments	25		20		12		12		(1)		31		9		—
Balance at June 30, 2024	$	207	$	65	$	73	$	47	$	26	$	42	$	16	$	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.

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


	June 30, 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unbilled Revenue(a)(b)	$	1,155	$	414	$	426	$	278	$	148	$	127	$	177	$	11
Current	2,503		772		1,210		727		480		182		205		112
1-31 days past due	202		60		79		35		44		26		17		19
31-61 days past due	75		25		22		15		7		12		11		5
61-91 days past due	80		19		40		10		30		10		5		6
91+ days past due	229		60		61		26		35		84		18		6
Deferred Payment Arrangements(c)	99		36		40		26		14		18		5		—
Trade and Other Receivables(e)	$	4,343	$	1,386	$	1,878	$	1,117	$	758	$	459	$	438	$	159


FINANCIAL STATEMENTS			REVENUE


	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 Revenue(a)(d)	$	1,273	$	399	$	401	$	280	$	121	$	4	$	22	$	108
Current	2,306		680		1,009		612		395		48		87		199
1-31 days past due	275		97		91		41		50		12		14		9
31-61 days past due	78		20		34		23		11		3		7		2
61-91 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

(a)Unbilled revenues are recognized by applying customer billing rates to the estimated volumes of energy or natural gas delivered but not yet billed and are included within Receivables and Receivables of VIEs on the Condensed Consolidated Balance Sheets.

(b)In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility. Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets. See Note 13 for further information.

(c)Due to ongoing financial hardships impacting customers, Duke Energy has permitted customers to defer payment of past-due amounts through installment payment plans.

(d)Duke Energy Ohio and Duke Energy Indiana sold, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and accounted for the transfers of receivables as sales. Accordingly, the receivables sold were not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. These receivables for unbilled revenues are $141 million and $197 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, 2023.

(e)The balance of the remaining proceeds from the sale of certain Commercial Renewables assets to Brookfield is not presented in the aging of trade and other receivables above. Refer to Note 2 for further information.

15. STOCKHOLDERS' EQUITY

Basic EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as equity forward sale agreements or convertible debt, were exercised or settled. Duke Energy applies the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted EPS, if applicable. Duke Energy’s participating securities are restricted stock units that are entitled to dividends declared on Duke Energy common stock during the restricted stock unit’s vesting periods. Dividends declared on preferred stock are recorded on the Condensed Consolidated Statements of Operations as a reduction of net income to arrive at net income available to Duke Energy common stockholders. Dividends accumulated on preferred stock are an adjustment to net income used in the calculation of basic and diluted EPS.


FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

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


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	2024		2023		2024		2023
Net Income (Loss) available to Duke Energy common stockholders	$	886	$	(234)	$	1,985	$	531
Less: Loss from discontinued operations attributable to Duke Energy common stockholders	(10)		(948)		(13)		(1,093)
Accumulated preferred stock dividends adjustment	(12)		(12)		—		—
Less: Impact of participating securities	1		1		2		2
Income from continuing operations available to Duke Energy common stockholders	$	883	$	701	$	1,996	$	1,622

Loss from discontinued operations, net of tax	$	(10)	$	(955)	$	(13)	$	(1,164)
Add: Loss attributable to NCI	—		7		—		71
Loss from discontinued operations attributable to Duke Energy common stockholders	$	(10)	$	(948)	$	(13)	$	(1,093)

Weighted average common shares outstanding – basic and diluted	772		771		771		770


EPS from continuing operations available to Duke Energy common stockholders
Basic and diluted(a)	$	1.14	$	0.91	$	2.59	$	2.10

Loss Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and diluted(a)	$	(0.01)	$	(1.23)	$	(0.02)	$	(1.41)
Potentially dilutive items excluded from the calculation(b)	2		2		2		2
Dividends declared per common share	$	1.025	$	1.005	$	2.050	$	2.010
Dividends declared on Series A preferred stock per depositary share(c)	$	0.359	$	0.359	$	0.719	$	0.719
Dividends declared on Series B preferred stock per share(d)	$	—	$	—	$	24.375	$	24.375

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

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

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

(d)4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends are payable semiannually in arrears on the 16th day of March and September. The preferred stock has a $1,000 liquidation preference per share.

Common Stock

In November 2022, Duke Energy filed a prospectus supplement and executed an Equity Distribution Agreement (EDA) under which it may sell up to $1.5 billion of its common stock through an at-the-market (ATM) offering program, including an equity forward sales component. Under the terms of the EDA, Duke Energy may issue and sell shares of common stock through September 2025.

In March 2024, Duke Energy marketed its first tranche, issuing 0.8 million shares of common stock through an equity forward transaction under the ATM program with an initial forward price of $92.77 per share. In May 2024, Duke Energy marketed its second and third tranches, issuing 0.7 million shares at an initial forward price of $101.10 per share and another 0.7 million shares with an initial forward price of $100.99 per share. The equity forwards require Duke Energy to either physically settle the transactions by issuing shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or net settle in whole or in part through the delivery or receipt of cash or shares. The settlement alternatives are at Duke Energy's election. No amounts have or will be recorded in Duke Energy's Condensed Consolidated Financial Statements with respect to the ATM offering until settlement of the equity forwards occurs, which is expected by December 31, 2024. The initial forward sale prices will be subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the relevant forward sale agreements. Until settlement of the equity forwards, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method.

16. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified and non-qualified, non-contributory defined benefit retirement plans. Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants.


FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

QUALIFIED PENSION PLANS

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


	Three Months Ended June 30, 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	$	29	$	10	$	8	$	5	$	4	$	—	$	1	$	1
Interest cost on projected benefit obligation	83		20		26		12		14		4		7		3
Expected return on plan assets	(154)		(40)		(54)		(25)		(29)		(7)		(11)		(5)
Amortization of actuarial loss	8		2		3		2		1		1		1		—
Amortization of prior service credit	(4)		—		—		—		—		—		(1)		(2)
Amortization of settlement charges	4		2		1		1		1		—		1		1
Net periodic pension costs	$	(34)	$	(6)	$	(16)	$	(5)	$	(9)	$	(2)	$	(2)	$	(2)


	Three Months Ended June 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	$	29	$	9	$	7	$	5	$	4	$	—	$	2	$	1
Interest cost on projected benefit obligation	86		21		27		13		15		5		7		3
Expected return on plan assets	(147)		(40)		(49)		(23)		(26)		(6)		(10)		(5)
Amortization of actuarial loss	3		1		1		1		—		—		—		—
Amortization of prior service credit	(4)		—		—		—		—		—		(1)		(2)
Amortization of settlement charges	4		2		1		1		1		—		1		1
Net periodic pension costs	$	(29)	$	(7)	$	(13)	$	(3)	$	(6)	$	(1)	$	(1)	$	(2)


	Six Months Ended June 30, 2024
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	$	57	$	19	$	16	$	10	$	7	$	1	$	3	$	2
Interest cost on projected benefit obligation	165		40		52		24		28		8		13		5
Expected return on plan assets	(308)		(81)		(108)		(50)		(58)		(13)		(21)		(10)
Amortization of actuarial loss	16		4		5		3		2		1		2		1
Amortization of prior service credit	(7)		—		—		—		—		—		(1)		(4)
Amortization of settlement charges	9		4		2		2		1		—		1		2
Net periodic pension costs	$	(68)	$	(14)	$	(33)	$	(11)	$	(20)	$	(3)	$	(3)	$	(4)


	Six Months Ended June 30, 2023
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	$	59	$	19	$	16	$	10	$	7	$	1	$	3	$	2
Interest cost on projected benefit obligation	172		42		54		25		29		9		14		5
Expected return on plan assets	(294)		(80)		(99)		(46)		(52)		(12)		(20)		(10)
Amortization of actuarial loss	5		1		2		1		1		—		1		—
Amortization of prior service credit	(7)		—		—		—		—		—		(1)		(4)
Amortization of settlement charges	9		4		2		2		1		—		1		2
Net periodic pension costs	$	(56)	$	(14)	$	(25)	$	(8)	$	(14)	$	(2)	$	(2)	$	(5)

NON-QUALIFIED PENSION PLANS

Net periodic pension costs for non-qualified pension plans were not material for the three and six months ended June 30, 2024, and 2023.

OTHER POST-RETIREMENT BENEFIT PLANS

Net periodic costs for OPEB plans were not material for the three and six months ended June 30, 2024, and 2023.


FINANCIAL STATEMENTS			INCOME TAXES

17. INCOME TAXES

On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA created a new, zero-emission nuclear power PTC available for taxpayers beginning January 1, 2024. In 2024, Duke Energy Carolinas and Duke Energy Progress recorded a PTC deferred tax asset of approximately $209 million and $34 million, respectively. These amounts represent the net realizable value of the PTCs, which were deferred to a regulatory liability. The Subsidiary Registrants will work with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 4 for additional information on Duke Energy Carolinas' approval for a stand-alone rider starting January 1, 2025. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.

EFFECTIVE TAX RATES

The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Duke Energy	13.1	%	13.7	%	13.2	%	13.7	%
Duke Energy Carolinas	10.9	%	10.6	%	11.2	%	11.0	%
Progress Energy	16.6	%	16.7	%	16.6	%	16.7	%
Duke Energy Progress	14.9	%	14.1	%	14.9	%	14.4	%
Duke Energy Florida	19.5	%	19.9	%	19.5	%	19.9	%
Duke Energy Ohio	17.2	%	15.5	%	17.0	%	16.2	%
Duke Energy Indiana	16.7	%	17.4	%	16.9	%	17.3	%
Piedmont	20.0	%	25.0	%	19.6	%	17.8	%

The increase in the ETR for Duke Energy Ohio for the three months ending June 30, 2024, was primarily due to the amortization of EDIT in relation to pretax income.

The decrease in the ETR for Piedmont for the three months ending June 30, 2024, was primarily due to the amortization of EDIT in relation to pretax losses.

The increase in the ETR for Piedmont for the six months ending June 30, 2024, was primarily due to a decrease in amortization of EDIT.

18. SUBSEQUENT EVENTS

For information on subsequent events related to regulatory matters and commitments and contingencies, see Notes 4 and 5, respectively.


MD&A			DUKE ENERGY

Previous: Cover and table of contents · Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS