0001326160us-gaap:~~NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-31~~FairValueInputsLevel2Memberduk:NdtfMemberduk:DukeEnergyFloridaMember2022-12-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended ~~June 30, 2022~~March 31, 2023


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

For the transition period from _________to_________


Commission ~~file number~~File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Zip Code and Telephone Number	IRS Employer Identification ~~Number~~No.

1-32853	DUKE ENERGY CORPORATION	20-2777218

(a Delaware corporation)

526 South Church Street

Charlotte, North Carolina 28202-1803

704-382-3853


1-4928			DUKE ENERGY CAROLINAS, LLC						56-0205520

(a North Carolina limited liability company)

526 South Church Street

Charlotte, North Carolina 28202-1803

704-382-3853


1-15929			PROGRESS ENERGY, INC.						56-2155481

(a North Carolina corporation)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853


1-3382			DUKE ENERGY PROGRESS, LLC						56-0165465

(a North Carolina limited liability company)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853


1-3274			DUKE ENERGY FLORIDA, LLC						59-0247770

(a Florida limited liability company)

299 First Avenue North

St. Petersburg, Florida 33701

704-382-3853


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

(an Ohio corporation)

139 East Fourth Street

Cincinnati, Ohio 45202

704-382-3853


1-3543			DUKE ENERGY INDIANA, LLC						35-0594457

(an Indiana limited liability company)

1000 East Main Street

Plainfield, Indiana 46168

704-382-3853


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

(a North Carolina corporation)

4720 Piedmont Row Drive

Charlotte, North Carolina 28210

704-364-3120

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

Name of each exchange on

Registrant Title of each class Trading symbols which registered

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

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

September 15, 2078

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

interest in a share of 5.75% Series A Cumulative

Redeemable Perpetual Preferred Stock, par value

$0.001 per share

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

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

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

Duke Energy Corporation (Duke Energy)

Yes

☒

☐

Duke Energy Florida, LLC (Duke Energy Florida)

Yes

☒

☐

Duke Energy Carolinas, LLC (Duke Energy Carolinas)

Yes

☒

☐

Duke Energy Ohio, Inc. (Duke Energy Ohio)

Yes

☒

☐

Progress Energy, Inc. (Progress Energy)

Yes

☒

☐

Duke Energy Indiana, LLC (Duke Energy Indiana)

Yes

☒

☐

Duke Energy Progress, LLC (Duke Energy Progress)

Yes

☒

☐

Piedmont Natural Gas Company, Inc. (Piedmont)

Yes

☒

☐

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

Duke Energy

Yes

☒

☐

Duke Energy Florida

Yes

☒

☐

Duke Energy Carolinas

Yes

☒

☐

Duke Energy Ohio

Yes

☒

☐

Progress Energy

Yes

☒

☐

Duke Energy Indiana

Yes

☒

☐

Duke Energy Progress

Yes

☒

☐

Piedmont

Yes

☒

☐

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

Duke Energy

Large Accelerated Filer

☒

Accelerated filer

☐

Non-accelerated Filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Carolinas

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Progress Energy

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Progress

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Florida

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Ohio

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Duke Energy Indiana

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Piedmont

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☐

Emerging growth company

☐

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

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

Duke Energy

Yes

☐

☒

Duke Energy Florida

Yes

☐

☒

Duke Energy Carolinas

Yes

☐

☒

Duke Energy Ohio

Yes

☐

☒

Progress Energy

Yes

☐

☒

Duke Energy Indiana

Yes

☐

☒

Duke Energy Progress

Yes

☐

☒

Piedmont

Yes

☐

☒

Number of shares of common stock outstanding at ~~July 31, 2022:~~April 30, 2023:


Registrant	Description	Shares
Duke Energy	Common stock, $0.001 par value	~~769,968,724~~770,651,719

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

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

TABLE OF CONTENTS


	Cautionary Statement Regarding Forward-Looking Information

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements

	Duke Energy Corporation Financial Statements	9

	Duke Energy Carolinas, LLC Financial Statements	1514

	Progress Energy, Inc. Financial Statements	1918

	Duke Energy Progress, LLC Financial Statements	2322

	Duke Energy Florida, LLC Financial Statements	2726

	Duke Energy Ohio, Inc. Financial Statements	3130

	Duke Energy Indiana, LLC Financial Statements	3534

	Piedmont Natural Gas Company, Inc. Financial Statements	3938

	Combined Notes to Condensed Consolidated Financial Statements
	Note 1 – Organization and Basis of Presentation	4342

	Note 2 – ~~Business Segments~~Dispositions	4544
	Note 3 – Business Segments	46
	Note 4 – Regulatory Matters	47
	Note 45 – Commitments and Contingencies	52

	Note 56 – Debt and Credit Facilities	5655

	Note 67 – Goodwill	57
	Note 78 – Related Party Transactions	57
	Note 9 – Derivatives and Hedging	58
	Note ~~8 – Derivatives and Hedging~~	59
	~~Note 9~~10 – Investments in Debt and Equity Securities	65
	~~Note 10 – Fair Value Measurements~~	6964
	Note 11 – ~~Variable Interest Entities~~Fair Value Measurements	7468
	Note 12 – ~~Revenue~~Variable Interest Entities	7873
	Note 13 – ~~Stockholders' Equity~~Revenue	8476
	Note 14 – ~~Employee Benefit Plans~~Stockholders' Equity	8579
	Note 15 – ~~Income Taxes~~Employee Benefit Plans	8680
	Note 16 – Income Taxes	81
	Note 17 – Subsequent Events	8681

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	8782

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	~~103~~95

Item 4.	Controls and Procedures	~~104~~95

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	~~105~~96

Item 1A.	Risk Factors	~~105~~96

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~105~~96

Item 6.	Exhibits	~~106~~97

	Signatures	~~109~~100


GLOSSARY OF TERMS

Glossary of Terms

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


Term or Acronym			Definition

2021 Settlement			Settlement Agreement in 2021 among Duke Energy Florida, the Florida Office of Public Counsel, the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PSC Phosphate and NUCOR Steel Florida, Inc.

~~ACP~~			~~Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy, Inc. and Duke Energy~~

AFUDC			Allowance for funds used during construction

ARO			Asset retirement obligations

Bison			Bison Insurance Company Limited

~~CCR~~Board			~~Coal Combustion Residuals~~Duke Energy Board of Directors

CEP			Capital Expenditure Program

the company			Duke Energy Corporation and its subsidiaries

Commercial Renewables Disposal Groups			Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, marketed as three separate disposal groups

COVID-19			Coronavirus Disease 2019

CRC			Cinergy Receivables Company, LLC

Crystal River Unit 3			Crystal River Unit 3 Nuclear Plant

DEFPF			Duke Energy Florida Project Finance, LLC

DEFR			Duke Energy Florida Receivables, LLC

DEPR			Duke Energy Progress Receivables, LLC

DERF			Duke Energy Receivables Finance Company, LLC

~~DOE~~			~~Department of Energy~~

Duke Energy			Duke Energy Corporation (collectively with its subsidiaries)

Duke Energy Ohio			Duke Energy Ohio, Inc.

Duke Energy Progress			Duke Energy Progress, LLC

Duke Energy Carolinas			Duke Energy Carolinas, LLC

Duke Energy Florida			Duke Energy Florida, LLC

Duke Energy Indiana			Duke Energy Indiana, LLC

Duke Energy Registrants			Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont

EDIT			Excess deferred income tax

EPS			Earnings Per Share

ERCOT			Electric Reliability Council of Texas

ETR			Effective tax rate

EU&I			Electric Utilities and Infrastructure

Exchange Act			Securities Exchange Act of 1934

FERC			Federal Energy Regulatory Commission

FPSC			Florida Public Service Commission

FTR			Financial transmission rights

GAAP			Generally accepted accounting principles in the U.S.

GAAP Reported Earnings			Net Income Available to Duke Energy Corporation Common Stockholders

GAAP Reported EPS			Basic Earnings Per Share Available to Duke Energy Corporation common stockholders



~~GIC~~GU&I			~~GIC Private Limited, Singapore's sovereign wealth fund~~Gas Utilities and ~~an experienced investor in U.S. infrastructure~~Infrastructure

GWh			Gigawatt-hours

~~IRS~~HB 951			~~Internal Revenue Service~~The Energy Solutions for North Carolina, or House Bill 951, passed in October 2021

~~Investment Trusts~~IMR			~~NDTF investments and grantor trusts of Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana~~

~~IURC~~			~~Indiana Utility Regulatory Commission~~Integrity Management Rider


GLOSSARY OF TERMS


IRA			Inflation Reduction Act

IRS			Internal Revenue Service

IURC			Indiana Utility Regulatory Commission

KPSC			Kentucky Public Service Commission

LLC			Limited Liability Company

MGP			Manufactured gas plant

MGP Settlement			Stipulation and Recommendation filed jointly by Duke Energy Ohio the staff of the PUCO, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021

MW			Megawatt

MWh			Megawatt-hour

MYRP			Multiyear rate plans

NCUC			North Carolina Utilities Commission

NDTF			Nuclear decommissioning trust funds

NPNS			Normal purchase/normal sale

OPEB			Other Post-Retirement Benefit Obligations

~~ORS~~the Parent			Duke Energy Corporation holding company

~~OVEC~~PBR			~~Ohio Valley Electric Corporation~~Performance-based regulation

Piedmont			Piedmont Natural Gas Company, Inc.

~~PJM~~			~~Pennsylvania-New Jersey-Maryland Interconnection~~

~~PPA~~			~~Purchase Power Agreement~~

Progress Energy			Progress Energy, Inc.

PSCSC			Public Service Commission of South Carolina

PTC			Production Tax Credits

PUCO			Public Utilities Commission of Ohio

RTO			Regional Transmission Organization

Subsidiary Registrants			Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont

~~the Tax Act~~			~~Tax Cuts and Jobs Act~~

TPUC			Tennessee Public Utility Commission

U.S.			United States

VIE			Variable Interest Entity


FORWARD-LOOKING STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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

◦The ~~impact of the COVID-19 pandemic;~~ability to implement our business strategy, including our carbon emission reduction goals;

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

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

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

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

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

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

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

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

◦Advancements in technology;

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

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

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

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

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

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

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

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

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

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

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

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


FORWARD-LOOKING STATEMENTS

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

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


~~FORWARD-LOOKING STATEMENTS~~

◦The ability to control operation and maintenance costs;

◦The level of creditworthiness of counterparties to transactions;

◦The ability to obtain adequate insurance at acceptable costs;

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

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

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

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

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

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

◦Asset or business acquisitions and dispositions ~~including our ability to successfully consummate the second closing of the minority investment in Duke Energy Indiana,~~ may not yield the anticipated benefits; and

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

◦~~The ability to implement our business strategy, including its carbon emission reduction goals.~~stock.

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


FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions, except per share amounts)	(in millions, except per share amounts)	2022		2021		2022		2021		(in millions, except per share amounts)		2023		2022
Operating Revenues	Operating Revenues									Operating Revenues
Regulated electric	Regulated electric	$	6,074	$	5,258	$	12,007	$	10,477	Regulated electric		$	6,324	$	5,933
Regulated natural gas	Regulated natural gas	425		302		1,427		1,051		Regulated natural gas		882		1,002
Nonregulated electric and other	Nonregulated electric and other	186		198		383		380		Nonregulated electric and other		70		76
Total operating revenues	Total operating revenues	6,685		5,758		13,817		11,908		Total operating revenues		7,276		7,011
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,972		1,415		3,789		2,858		Fuel used in electric generation and purchased power		2,377		1,817
Cost of natural gas	Cost of natural gas	189		79		670		355		Cost of natural gas		298		481
Operation, maintenance and other	Operation, maintenance and other	1,447		1,410		3,077		2,812		Operation, maintenance and other		1,310		1,548
Depreciation and amortization	Depreciation and amortization	1,302		1,207		2,622		2,433		Depreciation and amortization		1,227		1,257
Property and other taxes	Property and other taxes	379		349		771		702		Property and other taxes		389		382
Impairment of assets and other charges	Impairment of assets and other charges	(9)		131		206		131		Impairment of assets and other charges		8		215
Total operating expenses	Total operating expenses	5,280		4,591		11,135		9,291		Total operating expenses		5,609		5,700
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	8		2		10		2		Gains on Sales of Other Assets and Other, net		7		3
Operating Income	Operating Income	1,413		1,169		2,692		2,619		Operating Income		1,674		1,314
Other Income and Expenses	Other Income and Expenses									Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates		36		9		61		(8)
Equity in earnings of unconsolidated affiliates										Equity in earnings of unconsolidated affiliates		20		26
Other income and expenses, net	Other income and expenses, net	115		128		204		255		Other income and expenses, net		151		89
Total other income and expenses	Total other income and expenses	151		137		265		247		Total other income and expenses		171		115
Interest Expense	Interest Expense	607		572		1,194		1,107		Interest Expense		720		569
Income Before Income Taxes		957		734		1,763		1,759
Income Tax Expense		77		36		63		120

Income From Continuing Operations Before Income Taxes										Income From Continuing Operations Before Income Taxes		1,125		860
Income Tax Expense From Continuing Operations										Income Tax Expense From Continuing Operations		155		25
Income From Continuing Operations										Income From Continuing Operations		970		835
Loss From Discontinued Operations, net of tax										Loss From Discontinued Operations, net of tax		(209)		(15)
Net Income	Net Income	880		698		1,700		1,639		Net Income		761		820
Add: Net Loss Attributable to Noncontrolling Interests	Add: Net Loss Attributable to Noncontrolling Interests	27		67		64		118		Add: Net Loss Attributable to Noncontrolling Interests		43		37
Net Income Attributable to Duke Energy Corporation	Net Income Attributable to Duke Energy Corporation	907		765		1,764		1,757		Net Income Attributable to Duke Energy Corporation		804		857
Less: Preferred Dividends	Less: Preferred Dividends	14		14		53		53		Less: Preferred Dividends		39		39
Net Income Available to Duke Energy Corporation Common Stockholders	Net Income Available to Duke Energy Corporation Common Stockholders	$	893	$	751	$	1,711	$	1,704	Net Income Available to Duke Energy Corporation Common Stockholders		$	765	$	818

Earnings Per Share – Basic and Diluted	Earnings Per Share – Basic and Diluted									Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders										Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted										Basic and Diluted		$	1.20	$	1.06

(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders										(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted										Basic and Diluted		$	(0.19)	$	0.02

Net income available to Duke Energy Corporation common stockholders	Net income available to Duke Energy Corporation common stockholders									Net income available to Duke Energy Corporation common stockholders
Basic and Diluted	Basic and Diluted	$	1.14	$	0.96	$	2.22	$	2.21	Basic and Diluted		$	1.01	$	1.08

Weighted Average Shares Outstanding	Weighted Average Shares Outstanding									Weighted Average Shares Outstanding
Basic and Diluted	Basic and Diluted	770		769		770		769		Basic and Diluted		770		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					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Net Income	Net Income	$	880	$	698	$	1,700	$	1,639	Net Income		$	761	$	820
Other Comprehensive Income (Loss), net of tax(a)	Other Comprehensive Income (Loss), net of tax(a)									Other Comprehensive Income (Loss), net of tax(a)

Pension and OPEB adjustments	Pension and OPEB adjustments	2		—		4		2		Pension and OPEB adjustments		(1)		2
Net unrealized gains (losses) on cash flow hedges		149		(97)		262		(68)
Net unrealized (losses) gains on cash flow hedges										Net unrealized (losses) gains on cash flow hedges		(20)		113
Reclassification into earnings from cash flow hedges	Reclassification into earnings from cash flow hedges	4		4		9		7		Reclassification into earnings from cash flow hedges		—		5

Net unrealized losses on fair value hedges	Net unrealized losses on fair value hedges	(12)		—		(12)		—		Net unrealized losses on fair value hedges		(11)		—
Unrealized (losses) gains on available-for-sale securities		(8)		4		(21)		(4)
Unrealized gains (losses) on available-for-sale securities										Unrealized gains (losses) on available-for-sale securities		6		(13)

Other Comprehensive Income (Loss), net of tax		135		(89)		242		(63)
Other Comprehensive (Loss) Income, net of tax										Other Comprehensive (Loss) Income, net of tax		(26)		107
Comprehensive Income	Comprehensive Income	1,015		609		1,942		1,576		Comprehensive Income		735		927
Add: Comprehensive Loss Attributable to Noncontrolling Interests	Add: Comprehensive Loss Attributable to Noncontrolling Interests	23		68		52		112		Add: Comprehensive Loss Attributable to Noncontrolling Interests		43		29
Comprehensive Income Attributable to Duke Energy	Comprehensive Income Attributable to Duke Energy	1,038		677		1,994		1,688		Comprehensive Income Attributable to Duke Energy		778		956
Less: Preferred Dividends	Less: Preferred Dividends	14		14		53		53		Less: Preferred Dividends		39		39
Comprehensive Income Available to Duke Energy Corporation Common Stockholders	Comprehensive Income Available to Duke Energy Corporation Common Stockholders	$	1,024	$	663	$	1,941	$	1,635	Comprehensive Income Available to Duke Energy Corporation Common Stockholders		$	739	$	917

(a)Net of income tax ~~impacts~~benefit of approximately ~~$40~~$8 million and ~~$27~~income tax expense of approximately $32 million for the three months ended ~~June 30,~~March 31, 2023, and 2022, ~~and 2021, respectively, and $72 million and $19 million for the six months ended June 30, 2022, and 2021, respectively.~~respectfully.

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 428 $ 343
Receivables (net of allowance for doubtful accounts of $44 at 2022 and $46 at 2021) 907 1,173
Receivables of VIEs (net of allowance for doubtful accounts of $92 at 2022 and $76 at 2021) 3,021 2,437
Inventory 3,208 3,199
Regulatory assets (includes $105 at 2022 and 2021 related to VIEs) 2,834 2,150
Other (includes $284 at 2022 and $256 at 2021 related to VIEs) 1,163 638
Total current assets 11,561 9,940
Property, Plant and Equipment
Cost 166,004 161,819
Accumulated depreciation and amortization (52,252) (50,555)
Facilities to be retired, net 99 144
Net property, plant and equipment 113,851 111,408
Other Noncurrent Assets
Goodwill 19,303 19,303
Regulatory assets (includes $1,774 at 2022 and $1,823 at 2021 related to VIEs) 12,863 12,487
Nuclear decommissioning trust funds 8,574 10,401
Operating lease right-of-use assets, net 1,222 1,266
Investments in equity method unconsolidated affiliates 983 970
Other (includes $120 at 2022 and $92 at 2021 related to VIEs) 4,026 3,812
Total other noncurrent assets 46,971 48,239
Total Assets $ 172,383 $ 169,587
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 3,971 $ 3,629
Notes payable and commercial paper 3,875 3,304
Taxes accrued 682 749
Interest accrued 554 533
Current maturities of long-term debt (includes $633 at 2022 and $243 at 2021 related to VIEs) 3,171 3,387
Asset retirement obligations 649 647
Regulatory liabilities 1,383 1,211
Other 2,259 2,471
Total current liabilities 16,544 15,931
Long-Term Debt (includes $4,435 at 2022 and $4,854 at 2021 related to VIEs) 63,147 60,448
Other Noncurrent Liabilities
Deferred income taxes 9,948 9,379
Asset retirement obligations 12,080 12,129
Regulatory liabilities 14,519 16,152
Operating lease liabilities 1,039 1,074
Accrued pension and other post-retirement benefit costs 799 855
Investment tax credits 855 833
Other (includes $213 at 2022 and $319 at 2021 related to VIEs) 1,868 1,650
Total other noncurrent liabilities 41,108 42,072
Commitments and Contingencies 0 0
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2022 and 2021 973 973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2022 and 2021 989 989
Common stock, $0.001 par value, 2 billion shares authorized; 770 million shares outstanding at 2022 and 769 million shares outstanding at 2021 1 1
Additional paid-in capital 44,373 44,371
Retained earnings 3,457 3,265
Accumulated other comprehensive loss (73) (303)
Total Duke Energy Corporation stockholders' equity 49,720 49,296
Noncontrolling interests 1,864 1,840
Total equity 51,584 51,136
Total Liabilities and Equity $ 172,383 $ 169,587


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	451	$	409

Receivables (net of allowance for doubtful accounts of $45 at 2023 and $40 at 2022)	1,035		1,309
Receivables of VIEs (net of allowance for doubtful accounts of $169 at 2023 and $176 at 2022)	2,635		3,106
Inventory	3,865		3,584
Regulatory assets (includes $106 at 2023 and 2022 related to VIEs)	3,502		3,485
Assets held for sale	374		356
Other (includes $42 at 2023 and $116 at 2022 related to VIEs)	452		973
Total current assets	12,314		13,222
Property, Plant and Equipment
Cost	166,096		163,839
Accumulated depreciation and amortization	(53,162)		(52,100)
Facilities to be retired, net	8		9
Net property, plant and equipment	112,942		111,748
Other Noncurrent Assets
Goodwill	19,303		19,303
Regulatory assets (includes $1,691 at 2023 and $1,715 at 2022 related to VIEs)	14,702		14,645
Nuclear decommissioning trust funds	9,124		8,637
Operating lease right-of-use assets, net	1,019		1,042
Investments in equity method unconsolidated affiliates	465		455
Assets held for sale	5,538		5,634
Other (includes $50 at 2023 and $52 at 2022 related to VIEs)	3,426		3,400
Total other noncurrent assets	53,577		53,116
Total Assets	$	178,833	$	178,086
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	3,214	$	4,754
Notes payable and commercial paper	3,731		3,952
Taxes accrued	586		722
Interest accrued	693		626
Current maturities of long-term debt (includes $101 at 2023 and $350 at 2022 related to VIEs)	3,330		3,878
Asset retirement obligations	732		773
Regulatory liabilities	1,283		1,466
Liabilities associated with assets held for sale	476		535
Other	1,970		2,167
Total current liabilities	16,015		18,873
Long-Term Debt (includes $3,334 at 2023 and $3,108 at 2022 related to VIEs)	69,107		65,873
Other Noncurrent Liabilities
Deferred income taxes	10,188		9,964
Asset retirement obligations	11,987		11,955
Regulatory liabilities	13,714		13,582
Operating lease liabilities	851		876
Accrued pension and other post-retirement benefit costs	820		832
Investment tax credits	852		849
Liabilities associated with assets held for sale	1,931		1,927
Other	1,417		1,502
Total other noncurrent liabilities	41,760		41,487
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2023 and 2022	973		973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2023 and 2022	989		989
Common stock, $0.001 par value, 2 billion shares authorized; 771 million and 770 million shares outstanding at 2023 and 2022	1		1
Additional paid-in capital	44,837		44,862
Retained earnings	2,626		2,637
Accumulated other comprehensive loss	(166)		(140)
Total Duke Energy Corporation stockholders' equity	49,260		49,322
Noncontrolling interests	2,691		2,531
Total equity	51,951		51,853
Total Liabilities and Equity	$	178,833	$	178,086

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Six Months Ended					Three Months Ended
		June 30,					March 31,
(in millions)	(in millions)	2022		2021		(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES	CASH FLOWS FROM OPERATING ACTIVITIES					CASH FLOWS FROM OPERATING ACTIVITIES
Net income	Net income	$	1,700	$	1,639	Net income	$	761	$	820
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)	Depreciation, amortization and accretion (including amortization of nuclear fuel)	2,923		2,753		Depreciation, amortization and accretion (including amortization of nuclear fuel)	1,344		1,480
Equity in (earnings) losses of unconsolidated affiliates		(61)		8
Equity component of AFUDC	Equity component of AFUDC	(99)		(83)		Equity component of AFUDC	(46)		(46)

Impairment of assets and other charges	Impairment of assets and other charges	206		131		Impairment of assets and other charges	228		215
Deferred income taxes	Deferred income taxes	67		119		Deferred income taxes	90		(11)

Equity in earnings of unconsolidated affiliates						Equity in earnings of unconsolidated affiliates	(20)		(25)

Payments for asset retirement obligations	Payments for asset retirement obligations	(255)		(263)		Payments for asset retirement obligations	(117)		(119)

Provision for rate refunds	Provision for rate refunds	(65)		(13)		Provision for rate refunds	(33)		(31)

(Increase) decrease in	(Increase) decrease in					(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	Net realized and unrealized mark-to-market and hedging transactions	351		15		Net realized and unrealized mark-to-market and hedging transactions	5		215
Receivables	Receivables	(180)		85		Receivables	754		5

Inventory	Inventory	(12)		153		Inventory	(275)		28
Other current assets		(1,144)		(297)
Other current assets(a)						Other current assets(a)	262		(327)
Increase (decrease) in	Increase (decrease) in					Increase (decrease) in
Accounts payable	Accounts payable	408		(297)		Accounts payable	(1,193)		(160)

Taxes accrued	Taxes accrued	(49)		219		Taxes accrued	(148)		(90)
Other current liabilities	Other current liabilities	99		(326)		Other current liabilities	(266)		(269)
Other assets		55		77
Other assets(a)						Other assets(a)	(20)		(26)
Other liabilities	Other liabilities	91		(47)		Other liabilities	157		136
Net cash provided by operating activities	Net cash provided by operating activities	4,035		3,873		Net cash provided by operating activities	1,483		1,795
CASH FLOWS FROM INVESTING ACTIVITIES	CASH FLOWS FROM INVESTING ACTIVITIES					CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	Capital expenditures	(5,117)		(4,636)		Capital expenditures	(3,146)		(2,551)

Contributions to equity method investments	Contributions to equity method investments	(32)		(21)		Contributions to equity method investments	(6)		(17)

Purchases of debt and equity securities	Purchases of debt and equity securities	(2,184)		(3,182)		Purchases of debt and equity securities	(866)		(1,516)
Proceeds from sales and maturities of debt and equity securities	Proceeds from sales and maturities of debt and equity securities	2,225		3,217		Proceeds from sales and maturities of debt and equity securities	882		1,530

Net proceeds from the sales of other assets						Net proceeds from the sales of other assets	76		—

Disbursements to canceled equity method investments		—		(855)
Other	Other	(384)		(137)		Other	(149)		(145)
Net cash used in investing activities	Net cash used in investing activities	(5,492)		(5,614)		Net cash used in investing activities	(3,209)		(2,699)
CASH FLOWS FROM FINANCING ACTIVITIES	CASH FLOWS FROM FINANCING ACTIVITIES					CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:	Proceeds from the:					Proceeds from the:
Issuance of long-term debt	Issuance of long-term debt	5,714		4,627		Issuance of long-term debt	4,085		3,506

Issuance of common stock		—		5

Payments for the redemption of long-term debt	Payments for the redemption of long-term debt	(3,147)		(2,002)		Payments for the redemption of long-term debt	(1,380)		(1,215)

Proceeds from the issuance of short-term debt with original maturities greater than 90 days	Proceeds from the issuance of short-term debt with original maturities greater than 90 days	30		75		Proceeds from the issuance of short-term debt with original maturities greater than 90 days	2		—
Payments for the redemption of short-term debt with original maturities greater than 90 days	Payments for the redemption of short-term debt with original maturities greater than 90 days	(257)		(959)		Payments for the redemption of short-term debt with original maturities greater than 90 days	(50)		(257)
Notes payable and commercial paper	Notes payable and commercial paper	785		1,299		Notes payable and commercial paper	(217)		213

Contributions from noncontrolling interests	Contributions from noncontrolling interests	126		318		Contributions from noncontrolling interests	206		23
Dividends paid	Dividends paid	(1,574)		(1,541)		Dividends paid	(815)		(799)

Other	Other	(101)		(72)		Other	(84)		(67)
Net cash provided by financing activities	Net cash provided by financing activities	1,576		1,750		Net cash provided by financing activities	1,747		1,404

Net increase in cash, cash equivalents and restricted cash	Net increase in cash, cash equivalents and restricted cash	119		9		Net increase in cash, cash equivalents and restricted cash	21		500
Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period	520		556		Cash, cash equivalents and restricted cash at beginning of period	603		520
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	639	$	565	Cash, cash equivalents and restricted cash at end of period	$	624	$	1,020
Supplemental Disclosures:	Supplemental Disclosures:					Supplemental Disclosures:

Significant non-cash transactions:	Significant non-cash transactions:					Significant non-cash transactions:
Accrued capital expenditures	Accrued capital expenditures	$	1,264	$	990	Accrued capital expenditures	$	1,366	$	1,028

(a) Includes approximately $346 million of net collections of deferred fuel regulatory assets for the three months ended March 31, 2023.

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, 2021 and 2022
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, 2021 $ 1,962 769 $ 1 $ 43,761 $ 2,680 $ (142) $ (2) $ (74) $ 48,186 $ 1,472 $ 49,658
Net income (loss) — — — — 751 — — — 751 (67) 684
Other comprehensive (loss) income — — — — — (92) 4 — (88) (1) (89)
Common stock issuances, including dividend reinvestment and employee benefits — — — 26 — — — — 26 — 26
Common stock dividends — — — — (744) — — — (744) — (744)
Contribution from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 15 15
Distributions to noncontrolling interest in subsidiaries — — — — — — — — — (5) (5)
Other — — — 1 — — — — 1 (1) —
Balance at June 30, 2021 $ 1,962 $ 769 $ 1 $ 43,788 $ 2,687 $ (234) $ 2 $ (74) $ 48,132 $ 1,413 $ 49,545
Balance at March 31, 2022 $ 1,962 770 $ 1 $ 44,364 $ 3,323 $ (122) $ (15) $ (67) $ 49,446 $ 1,806 $ 51,252
Net income (loss) — — — — 893 — — — 893 (27) 866
Other comprehensive income (loss) — — — — — 137 (8) 2 131 4 135
Common stock issuances, including dividend reinvestment and employee benefits — — — 27 — — — — 27 — 27
Common stock dividends — — — — (761) — — — (761) — (761)
Sale of noncontrolling interest — — — (17) — — — — (17) 38 21
Contribution from noncontrolling interests, net of transaction costs(a)
— — — — — — — — — 65 65
Distributions to noncontrolling interest in subsidiaries — — — — — — — — — (22) (22)
Other — — — (1) 2 — — — 1 — 1
Balance at June 30, 2022 $ 1,962 $ 770 $ 1 $ 44,373 $ 3,457 $ 15 $ (23) $ (65) $ 49,720 $ 1,864 $ 51,584

~~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, 2021 and 2022
											Accumulated Other Comprehensive																						Accumulated Other Comprehensive
											(Loss) Income																						(Loss) Income
											Net		Net Unrealized				Total																	Net		Net Unrealized				Total
											Gains		Gains (Losses)				Duke Energy																	Gains		Gains (Losses)				Duke Energy
				Common			Additional				(Losses)		on Available-		Pension and		Corporation		Non-							Common			Additional					(Losses)		on Available-		Pension and		Corporation		Non-
		Preferred		Stock	Common		Paid-in		Retained		on		for-Sale-		OPEB		Stockholders'		controlling		Total			Preferred		Stock	Common		Paid-in		Retained			on		for-Sale-		OPEB		Stockholders'		controlling		Total
(in millions)	(in millions)	Stock		Shares	Stock		Capital		Earnings		Hedges(b)		Securities		Adjustments		Equity		Interests		Equity		(in millions)	Stock		Shares	Stock		Capital		Earnings			Hedges(b)		Securities		Adjustments		Equity		Interests		Equity
Balance at December 31, 2020		$	1,962	769	$	1	$	43,767	$	2,471	$	(167)	$	6	$	(76)	$	47,964	$	1,220	$	49,184
Balance at December 31, 2021																							Balance at December 31, 2021	$	1,962	769	$	1	$	44,371	$	3,265		$	(232)	$	(2)	$	(69)	$	49,296	$	1,840	$	51,136
Net income (loss)	Net income (loss)	—		—	—		—		1,704		—		—		—		1,704		(118)		1,586		Net income (loss)	—		—	—		—		818			—		—		—		818		(37)		781
Other comprehensive (loss) income		—		—	—		—		—		(67)		(4)		2		(69)		6		(63)
Other comprehensive income (loss)																							Other comprehensive income (loss)	—		—	—		—		—			110		(13)		2		99		8		107

Common stock issuances, including dividend reinvestment and employee benefits	Common stock issuances, including dividend reinvestment and employee benefits	—		—	—		23		—		—		—		—		23		—		23		Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		(7)		—			—		—		—		(7)		—		(7)

Common stock dividends	Common stock dividends	—		—	—		—		(1,488)		—		—		—		(1,488)		—		(1,488)		Common stock dividends	—		—	—		—		(760)			—		—		—		(760)		—		(760)

Contributions from noncontrolling interests, net of transaction costs(a)	Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		(3)		—		—		—		—		(3)		318		315		Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		—		—			—		—		—		—		23		23
Distributions to noncontrolling interest in subsidiaries	Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(12)		(12)		Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—			—		—		—		—		(28)		(28)
Other(b)		—		—	—		1		—		—		—		—		1		(1)		—
Balance at June 30, 2021		$	1,962	769	$	1	$	43,788	$	2,687	$	(234)	$	2	$	(74)	$	48,132	$	1,413	$	49,545

Balance at December 31, 2021		$	1,962	769	$	1	$	44,371	$	3,265	$	(232)	$	(2)	$	(69)	$	49,296	$	1,840	$	51,136
Balance at March 31, 2022																							Balance at March 31, 2022	$	1,962	770	$	1	$	44,364	$	3,323		$	(122)	$	(15)	$	(67)	$	49,446	$	1,806	$	51,252

Balance at December 31, 2022																							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)	Net income (loss)	—		—	—		—		1,711		—		—		—		1,711		(64)		1,647		Net income (loss)	—		—	—		—		765			—		—		—		765		(43)		722
Other comprehensive income (loss)	Other comprehensive income (loss)	—		—	—		—		—		247		(21)		4		230		12		242		Other comprehensive income (loss)	—		—	—		—		—			(31)		6		(1)		(26)		—		(26)

Common stock issuances, including dividend reinvestment and employee benefits	Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		20		—		—		—		—		20		—		20		Common stock issuances, including dividend reinvestment and employee benefits	—		1	—		(10)		—			—		—		—		(10)		—		(10)

Common stock dividends	Common stock dividends	—		—	—		—		(1,521)		—		—		—		(1,521)		—		(1,521)		Common stock dividends	—		—	—		—		(776)			—		—		—		(776)		—		(776)
Sale of noncontrolling interest	Sale of noncontrolling interest	—		—	—		(17)		—		—		—		—		(17)		38		21		Sale of noncontrolling interest	—		—	—		(13)		—			—		—		—		(13)		10		(3)
Contributions from noncontrolling interests, net of transaction costs(a)	Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		—		—		—		—		—		—		88		88		Contributions from noncontrolling interests, net of transaction costs(a)	—		—	—		—		—			—		—		—		—		206		206
Distributions to noncontrolling interest in subsidiaries	Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—		—		—		—		—		(50)		(50)		Distributions to noncontrolling interest in subsidiaries	—		—	—		—		—			—		—		—		—		(13)		(13)
Other	Other	—		—	—		(1)		2		—		—		—		1		—		1		Other	—		—	—		(2)		—			—		—		—		(2)		—		(2)
Balance at June 30, 2022		$	1,962	770	$	1	$	44,373	$	3,457	$	15	$	(23)	$	(65)	$	49,720	$	1,864	$	51,584
Balance at March 31, 2023																							Balance at March 31, 2023	$	1,962	771	$	1	$	44,837	$	2,626		$	(60)	$	(17)	$	(89)	$	49,260	$	2,691	$	51,951

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

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

See Notes to Condensed Consolidated Financial Statements

1413


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues	$	1,781	$	1,610	$	3,669	$	3,326	Operating Revenues		$	1,934	$	1,888
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	431		344		879		766		Fuel used in electric generation and purchased power		623		448
Operation, maintenance and other	Operation, maintenance and other	462		435		974		876		Operation, maintenance and other		440		512
Depreciation and amortization	Depreciation and amortization	384		363		763		722		Depreciation and amortization		366		379
Property and other taxes	Property and other taxes	77		74		170		157		Property and other taxes		95		93
Impairment of assets and other charges	Impairment of assets and other charges	(12)		75		(9)		75		Impairment of assets and other charges		2		3
Total operating expenses	Total operating expenses	1,342		1,291		2,777		2,596		Total operating expenses		1,526		1,435
Gains on Sales of Other Assets and Other, net		—		2		—		2

Operating Income	Operating Income	439		321		892		732		Operating Income		408		453
Other Income and Expenses, net	Other Income and Expenses, net	58		44		113		92		Other Income and Expenses, net		59		55
Interest Expense	Interest Expense	143		139		284		263		Interest Expense		160		141
Income Before Income Taxes	Income Before Income Taxes	354		226		721		561		Income Before Income Taxes		307		367
Income Tax Expense	Income Tax Expense	26		1		53		24		Income Tax Expense		35		27
Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	328	$	225	$	668	$	537	Net Income and Comprehensive Income		$	272	$	340

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	24	$	44
Receivables (net of allowance for doubtful accounts of $5 at 2023 and $3 at 2022)	286		338
Receivables of VIEs (net of allowance for doubtful accounts of $65 at 2023 and 2022)	782		928
Receivables from affiliated companies	181		390

Inventory	1,303		1,164
Regulatory assets (includes $12 at 2023 and 2022 related to VIEs)	1,311		1,095
Other (includes $5 at 2023 and $8 at 2022 related to VIEs)	62		216
Total current assets	3,949		4,175
Property, Plant and Equipment
Cost	55,422		54,650
Accumulated depreciation and amortization	(19,082)		(18,669)

Net property, plant and equipment	36,340		35,981
Other Noncurrent Assets
Regulatory assets (includes $205 at 2023 and $208 at 2022 related to VIEs)	4,309		4,293
Nuclear decommissioning trust funds	5,076		4,783
Operating lease right-of-use assets, net	75		78
Other	998		1,036
Total other noncurrent assets	10,458		10,190
Total Assets	$	50,747	$	50,346
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	872	$	1,472
Accounts payable to affiliated companies	236		209
Notes payable to affiliated companies	1,153		1,233
Taxes accrued	110		228
Interest accrued	142		120
Current maturities of long-term debt (includes $10 at 2023 and 2022 related to VIEs)	18		1,018
Asset retirement obligations	249		261
Regulatory liabilities	418		530
Other	572		580
Total current liabilities	3,770		5,651
Long-Term Debt (includes $713 at 2023 and $689 at 2022 related to VIEs)	14,787		12,948
Long-Term Debt Payable to Affiliated Companies	300		300
Other Noncurrent Liabilities
Deferred income taxes	4,263		4,153
Asset retirement obligations	5,148		5,121
Regulatory liabilities	5,817		5,783
Operating lease liabilities	80		83
Accrued pension and other post-retirement benefit costs	35		38
Investment tax credits	299		300
Other	534		527
Total other noncurrent liabilities	16,176		16,005
Commitments and Contingencies
Equity
Member's equity	15,720		15,448
Accumulated other comprehensive loss	(6)		(6)
Total equity	15,714		15,442
Total Liabilities and Equity	$	50,747	$	50,346

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 37 $ 7
Receivables (net of allowance for doubtful accounts of $2 at 2022 and $1 at 2021) 269 300
Receivables of VIEs (net of allowance for doubtful accounts of $50 at 2022 and $41 at 2021) 893 844
Receivables from affiliated companies 241 190
Inventory 1,033 1,026
Regulatory assets (includes $12 at 2022 and 2021 related to VIEs) 757 544
Other (includes $8 at 2022 and $0 at 2021 related to VIEs) 128 95
Total current assets 3,358 3,006
Property, Plant and Equipment
Cost 53,074 51,874
Accumulated depreciation and amortization (18,205) (17,854)
Facilities to be retired, net 90 102
Net property, plant and equipment 34,959 34,122
Other Noncurrent Assets
Regulatory assets (includes $214 at 2022 and $220 at 2021 related to VIEs) 3,339 2,935
Nuclear decommissioning trust funds 4,729 5,759
Operating lease right-of-use assets, net 84 92
Other 1,305 1,248
Total other noncurrent assets 9,457 10,034
Total Assets $ 47,774 $ 47,162
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 1,158 $ 988
Accounts payable to affiliated companies 189 266
Notes payable to affiliated companies 29 226
Taxes accrued 177 274
Interest accrued 135 125
Current maturities of long-term debt (includes $10 at 2022 and $5 at 2021 related to VIEs) 1,018 362
Asset retirement obligations 254 249
Regulatory liabilities 460 487
Other 470 546
Total current liabilities 3,890 3,523
Long-Term Debt (includes $721 at 2022 and $703 at 2021 related to VIEs) 12,844 12,595
Long-Term Debt Payable to Affiliated Companies 300 318
Other Noncurrent Liabilities
Deferred income taxes 3,911 3,634
Asset retirement obligations 5,065 5,052
Regulatory liabilities 6,300 7,198
Operating lease liabilities 70 78
Accrued pension and other post-retirement benefit costs 42 50
Investment tax credits 285 287
Other 558 536
Total other noncurrent liabilities 16,231 16,835
Commitments and Contingencies 0 0
Equity
Member's equity 14,515 13,897
Accumulated other comprehensive loss (6) (6)
Total equity 14,509 13,891
Total Liabilities and Equity $ 47,774 $ 47,162


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	272	$	340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)	426		447
Equity component of AFUDC	(24)		(22)

Impairment of assets and other charges	2		3
Deferred income taxes	32		44



Payments for asset retirement obligations	(39)		(35)
Provision for rate refunds	(19)		(18)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	—		50
Receivables	199		77
Receivables from affiliated companies	209		56
Inventory	(139)		(13)
Other current assets(a)	(293)		(230)
Increase (decrease) in
Accounts payable	(594)		(225)
Accounts payable to affiliated companies	27		(17)
Taxes accrued	(119)		(150)
Other current liabilities	(78)		56
Other assets(a)	206		6
Other liabilities	76		(44)
Net cash provided by operating activities	144		325
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(866)		(717)


Purchases of debt and equity securities	(556)		(1,008)
Proceeds from sales and maturities of debt and equity securities	556		1,008
Notes receivable from affiliated companies	—		(492)
Other	(59)		(54)
Net cash used in investing activities	(925)		(1,263)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	1,845		1,217
Payments for the redemption of long-term debt	(1,007)		(1)
Notes payable to affiliated companies	(79)		(226)
Distributions to parent	—		(50)
Other	(1)		(1)
Net cash provided by financing activities	758		939
Net (decrease) increase in cash, cash equivalents and restricted cash	(23)		1
Cash, cash equivalents and restricted cash at beginning of period	53		8
Cash, cash equivalents and restricted cash at end of period	$	30	$	9
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	449	$	352

(a) Includes approximately $14 million of under-collected deferred fuel regulatory assets for the three months ended March 31, 2023.

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Six Months Ended
June 30,
(in millions) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 668 $ 537
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel) 892 861
Equity component of AFUDC (47) (30)
Impairment of assets and other charges (9) 75
Deferred income taxes 95 (41)
Payments for asset retirement obligations (87) (93)
Provision for rate refunds (36) (11)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 55 4
Receivables 23 —
Receivables from affiliated companies (51) 13
Inventory (7) (3)
Other current assets (514) (45)
Increase (decrease) in
Accounts payable 124 (266)
Accounts payable to affiliated companies (95) (4)
Taxes accrued (97) 127
Other current liabilities 151 (152)
Other assets (9) 8
Other liabilities (33) 18
Net cash provided by operating activities 1,023 998
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,523) (1,251)
Purchases of debt and equity securities (1,073) (1,847)
Proceeds from sales and maturities of debt and equity securities 1,073 1,847
Other (118) (80)
Net cash used in investing activities (1,641) (1,331)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 1,287 1,298
Payments for the redemption of long-term debt (382) (614)
Notes payable to affiliated companies (197) (35)
Distributions to parent (50) (300)
Other (1) (1)
Net cash provided by financing activities 657 348
Net increase in cash, cash equivalents and restricted cash 39 15
Cash, cash equivalents and restricted cash at beginning of period 8 21
Cash, cash equivalents and restricted cash at end of period $ 47 $ 36
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 413 $ 315























			Accumulated Other
			Comprehensive
			Loss
	Member's		Net Losses on		Total
(in millions)	Equity		Cash Flow Hedges		Equity
Balance at December 31, 2021	$	13,897	$	(6)	$	13,891
Net income	340		—		340

Distributions to parent	(50)		—		(50)
Other	1		—		1
Balance at March 31, 2022	$	14,188	$	(6)	$	14,182

Balance at December 31, 2022	$	15,448	$	(6)	$	15,442
Net income	272		—		272



Balance at March 31, 2023	$	15,720	$	(6)	$	15,714

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, 2021 and 2022
Accumulated Other
Comprehensive
Loss
Member's Net Losses on Total
(in millions) Equity Cash Flow Hedges Equity
Balance at March 31, 2021 $ 13,473 $ (7) $ 13,466
Net income 225 — 225
Distributions to parent (300) — (300)
Other 1 — 1
Balance at June 30, 2021 $ 13,399 $ (7) $ 13,392
Balance at March 31, 2022 $ 14,188 $ (6) $ 14,182
Net income 328 — 328
Other (1) — (1)
Balance at June 30, 2022 $ 14,515 $ (6) $ 14,509
Six Months Ended June 30, 2021 and 2022
Accumulated Other
Comprehensive
Loss
Member's Net Losses on Total
(in millions) Equity Cash Flow Hedges Equity
Balance at December 31, 2020 $ 13,161 $ (7) $ 13,154
Net income 537 — 537
Distributions to parent (300) — (300)
Other 1 — 1
Balance at June 30, 2021 $ 13,399 $ (7) $ 13,392
Balance at December 31, 2021 $ 13,897 $ (6) $ 13,891
Net income 668 — 668
Distributions to parent (50) — (50)
Balance at June 30, 2022 $ 14,515 $ (6) $ 14,509

~~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					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues	$	3,214	$	2,679	$	6,206	$	5,184	Operating Revenues		$	3,048	$	2,992
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,258		833		2,322		1,628		Fuel used in electric generation and purchased power		1,191		1,064
Operation, maintenance and other	Operation, maintenance and other	603		626		1,248		1,227		Operation, maintenance and other		568		645
Depreciation and amortization	Depreciation and amortization	509		441		1,045		926		Depreciation and amortization		504		536
Property and other taxes	Property and other taxes	151		133		303		275		Property and other taxes		168		152
Impairment of assets and other charges	Impairment of assets and other charges	4		37		4		37		Impairment of assets and other charges		5		—
Total operating expenses	Total operating expenses	2,525		2,070		4,922		4,093		Total operating expenses		2,436		2,397
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	1		1		3		1		Gains on Sales of Other Assets and Other, net		6		2
Operating Income	Operating Income	690		610		1,287		1,092		Operating Income		618		597
Other Income and Expenses, net	Other Income and Expenses, net	70		38		105		81		Other Income and Expenses, net		59		35
Interest Expense	Interest Expense	208		200		419		392		Interest Expense		246		211
Income Before Income Taxes	Income Before Income Taxes	552		448		973		781		Income Before Income Taxes		431		421
Income Tax Expense	Income Tax Expense	93		37		160		80		Income Tax Expense		72		67

Net Income		459		411		813		701
Less: Net Income Attributable to Noncontrolling Interests		1		—		1		—
Net Income Attributable to Parent		$	458	$	411	$	812	$	701

Net Income	Net Income	$	459	$	411	$	813	$	701	Net Income		$	359	$	354
Other Comprehensive Income, net of tax	Other Comprehensive Income, net of tax									Other Comprehensive Income, net of tax
Pension and OPEB adjustments		—		1		—		1

Net unrealized gains on cash flow hedges	Net unrealized gains on cash flow hedges	—		—		1		1		Net unrealized gains on cash flow hedges		—		1

Unrealized (losses) gains on available-for-sale securities		(1)		1		(3)		—
Unrealized gains (losses) on available-for-sale securities										Unrealized gains (losses) on available-for-sale securities		2		(2)

Other Comprehensive (Loss) Income, net of tax		(1)		2		(2)		2
Other Comprehensive Income (Loss), net of tax										Other Comprehensive Income (Loss), net of tax		2		(1)
Comprehensive Income	Comprehensive Income	$	458	$	413	$	811	$	703	Comprehensive Income		$	361	$	353

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	93	$	108
Receivables (net of allowance for doubtful accounts of $14 at 2023 and $13 at 2022)	315		318
Receivables of VIEs (net of allowance for doubtful accounts of $61 at 2023 and $68 at 2022)	1,101		1,289
Receivables from affiliated companies	24		22
Notes receivable from affiliated companies	118		—
Inventory	1,712		1,579
Regulatory assets (includes $94 at 2023 and 2022 related to VIEs)	1,548		1,833
Other (includes $33 at 2023 and $88 at 2022 related to VIEs)	166		342
Total current assets	5,077		5,491
Property, Plant and Equipment
Cost	65,852		64,822
Accumulated depreciation and amortization	(21,011)		(20,584)

Net property, plant and equipment	44,841		44,238
Other Noncurrent Assets
Goodwill	3,655		3,655
Regulatory assets (includes $1,486 at 2023 and $1,507 at 2022 related to VIEs)	7,422		7,146
Nuclear decommissioning trust funds	4,048		3,855
Operating lease right-of-use assets, net	604		628
Other	1,097		1,066
Total other noncurrent assets	16,826		16,350
Total Assets	$	66,744	$	66,079
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	1,127	$	1,481
Accounts payable to affiliated companies	410		712
Notes payable to affiliated companies	845		843
Taxes accrued	172		135
Interest accrued	224		206
Current maturities of long-term debt (includes $341 at 2023 and $340 at 2022 related to VIEs)	699		697
Asset retirement obligations	272		289
Regulatory liabilities	473		576
Other	771		782
Total current liabilities	4,993		5,721
Long-Term Debt (includes $1,955 at 2023 and $2,003 at 2022 related to VIEs)	22,522		21,592
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	5,226		5,147
Asset retirement obligations	5,898		5,892
Regulatory liabilities	4,796		4,753
Operating lease liabilities	521		546
Accrued pension and other post-retirement benefit costs	289		292
Investment tax credits	362		358
Other	222		222
Total other noncurrent liabilities	17,314		17,210
Commitments and Contingencies
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2023 and 2022	—		—
Additional paid-in capital	11,830		11,832
Retained earnings	9,944		9,585
Accumulated other comprehensive loss	(9)		(11)


Total equity	21,765		21,406
Total Liabilities and Equity	$	66,744	$	66,079

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 129 $ 70
Receivables (net of allowance for doubtful accounts of $12 at 2022 and $11 at 2021) 192 247
Receivables of VIEs (net of allowance for doubtful accounts of $40 at 2022 and $25 at 2021) 1,352 1,006
Receivables from affiliated companies 22 121
Notes receivable from affiliated companies 108 —
Inventory 1,426 1,398
Regulatory assets (includes $93 at 2022 and 2021 related to VIEs) 1,406 1,030
Other (includes $59 at 2022 and $39 at 2021 related to VIEs) 170 125
Total current assets 4,805 3,997
Property, Plant and Equipment
Cost 62,609 60,894
Accumulated depreciation and amortization (20,082) (19,214)
Facilities to be retired, net — 26
Net property, plant and equipment 42,527 41,706
Other Noncurrent Assets
Goodwill 3,655 3,655
Regulatory assets (includes $1,560 at 2022 and $1,603 at 2021 related to VIEs) 6,081 5,909
Nuclear decommissioning trust funds 3,845 4,642
Operating lease right-of-use assets, net 677 691
Other 1,241 1,242
Total other noncurrent assets 15,499 16,139
Total Assets $ 62,831 $ 61,842
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 1,219 $ 1,099
Accounts payable to affiliated companies 965 506
Notes payable to affiliated companies 458 2,809
Taxes accrued 221 128
Interest accrued 197 192
Current maturities of long-term debt (includes $338 at 2022 and $71 at 2021 related to VIEs) 393 1,082
Asset retirement obligations 262 275
Regulatory liabilities 580 478
Other 830 868
Total current liabilities 5,125 7,437
Long-Term Debt (includes $2,047 at 2022 and $2,293 at 2021 related to VIEs) 20,208 19,591
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 4,748 4,564
Asset retirement obligations 5,806 5,837
Regulatory liabilities 5,094 5,566
Operating lease liabilities 600 606
Accrued pension and other post-retirement benefit costs 399 417
Other 561 526
Total other noncurrent liabilities 17,208 17,516
Commitments and Contingencies 0 0
Equity
Common Stock, $0.01 par value, 100 shares authorized and outstanding at 2022 and 2021 — —
Additional paid-in capital 9,149 9,149
Retained earnings 11,001 8,007
Accumulated other comprehensive loss (13) (11)
Total Progress Energy, Inc. stockholders' equity 20,137 17,145
Noncontrolling interests 3 3
Total equity 20,140 17,148
Total Liabilities and Equity $ 62,831 $ 61,842


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	359	$	354
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)	554		625
Equity component of AFUDC	(16)		(12)

Impairment of assets and other charges	5		—
Deferred income taxes	51		72



Payments for asset retirement obligations	(58)		(68)
Provision for rate refunds	(14)		(16)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	—		164
Receivables	188		(123)
Receivables from affiliated companies	(2)		102
Inventory	(133)		(5)
Other current assets(a)	319		(224)
Increase (decrease) in
Accounts payable	(214)		26
Accounts payable to affiliated companies	(302)		(142)
Taxes accrued	36		30
Other current liabilities	(107)		(113)
Other assets(a)	(212)		(80)
Other liabilities	4		40
Net cash provided by operating activities	458		630
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,275)		(981)


Purchases of debt and equity securities	(279)		(531)
Proceeds from sales and maturities of debt and equity securities	304		548
Notes receivable from affiliated companies	(118)		(237)
Other	(71)		(28)
Net cash used in investing activities	(1,439)		(1,229)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	996		889
Payments for the redemption of long-term debt	(66)		(54)
Notes payable to affiliated companies	2		(1)



Dividends to parent	—		(250)
Other	(1)		(3)
Net cash provided by financing activities	931		581
Net decrease in cash, cash equivalents and restricted cash	(50)		(18)
Cash, cash equivalents and restricted cash at beginning of period	184		113
Cash, cash equivalents and restricted cash at end of period	$	134	$	95
Supplemental Disclosures:






Significant non-cash transactions:
Accrued capital expenditures	$	516	$	349

(a) Includes approximately $139 million of net collections of deferred fuel regulatory assets for the three months ended March 31, 2023.

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) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 813 $ 701
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel) 1,209 1,104
Equity component of AFUDC (33) (23)
Impairment of assets and other charges 4 37
Deferred income taxes 95 163
Payments for asset retirement obligations (137) (139)
Provision for rate refunds (30) (7)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 314 16
Receivables (246) (12)
Receivables from affiliated companies 117 88
Inventory (30) 76
Other current assets (417) (247)
Increase (decrease) in
Accounts payable 161 44
Accounts payable to affiliated companies 459 42
Taxes accrued 93 97
Other current liabilities 74 (79)
Other assets (76) (33)
Other liabilities (2) (156)
Net cash provided by operating activities 2,368 1,672
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,944) (1,745)
Purchases of debt and equity securities (996) (1,160)
Proceeds from sales and maturities of debt and equity securities 1,032 1,201
Notes receivable from affiliated companies (108) —
Other (21) (69)
Net cash used in investing activities (2,037) (1,773)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 940 19
Payments for the redemption of long-term debt (1,019) (41)
Notes payable to affiliated companies 80 34
Dividends to parent (250) —
Other (3) (3)
Net cash (used in) provided by financing activities (252) 9
Net increase (decrease) in cash, cash equivalents and restricted cash 79 (92)
Cash, cash equivalents and restricted cash at beginning of period 113 200
Cash, cash equivalents and restricted cash at end of period $ 192 $ 108
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 455 $ 329

~~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, 2021 and 2022
						Accumulated Other Comprehensive Loss
						Net Gains		Net Unrealized				Total Progress
		Additional				(Losses) on		Gains (Losses) on		Pension and		Energy, Inc.
		Paid-in		Retained		Cash Flow		Available-for-		OPEB		Stockholders'		Noncontrolling		Total
(in millions)		Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity		Interests		Equity
Balance at March 31, 2021		$	9,143	$	7,400	$	(4)	$	(3)	$	(8)	$	16,528	$	2	$	16,530
Net income		—		411		—		—		—		411		—		411
Other comprehensive income		—		—		—		1		1		2		—		2

Other		—		(2)		—		—		—		(2)		1		(1)
Balance at June 30, 2021		$	9,143	$	7,809	$	(4)	$	(2)	$	(7)	$	16,939	$	3	$	16,942

Balance at March 31, 2022		$	9,149	$	10,543	$	(1)	$	(4)	$	(7)	$	19,680	$	2	$	19,682
Net income		—		458		—		—		—		458		1		459
Other comprehensive loss		—		—		—		(1)		—		(1)		—		(1)

Balance at June 30, 2022		$	9,149	$	11,001	$	(1)	$	(5)	$	(7)	$	20,137	$	3	$	20,140

		Six Months Ended June 30, 2021 and 2022
						Accumulated Other Comprehensive Loss
						Net Gains		Net Unrealized				Total Progress
		Additional				(Losses) on		Gains (Losses) on		Pension and		Energy, Inc.
		Paid-in		Retained		Cash Flow		Available-for-		OPEB		Stockholders'		Noncontrolling		Total
		Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity		Interests		Equity
Balance at December 31, 2020		$	9,143	$	7,109	$	(5)	$	(2)	$	(8)	$	16,237	$	4	$	16,241

																							Accumulated Other Comprehensive Loss
																							Net Gains		Net Unrealized				Total Progress
																			Additional				(Losses) on		Gains (Losses) on		Pension and		Energy, Inc.
																			Paid-in		Retained		Cash Flow		Available-for-		OPEB		Stockholders'		Noncontrolling		Total
																			Capital		Earnings		Hedges		Sale Securities		Adjustments		Equity		Interests		Equity
Balance at December 31, 2021																		Balance at December 31, 2021	$	9,149	$	8,007	$	(2)	$	(2)	$	(7)	$	17,145	$	3	$	17,148
Net income	Net income	—		701		—		—		—		701		—		701		Net income	—		354		—		—		—		354		—		354
Other comprehensive income		—		—		1		—		1		2		—		2
Other comprehensive income (loss)																		Other comprehensive income (loss)	—		—		1		(2)		—		(1)		—		(1)

Distributions to noncontrolling interests	Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)		Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)
Dividends to parent																		Dividends to parent	—		(250)		—		—		—		(250)		—		(250)
Equitization of certain notes payable to affiliates																		Equitization of certain notes payable to affiliates	—		2,431		—		—		—		2,431		—		2,431

Other																		Other	—		1		—		—		—		1		—		1
Balance at March 31, 2022																		Balance at March 31, 2022	$	9,149	$	10,543	$	(1)	$	(4)	$	(7)	$	19,680	$	2	$	19,682

Balance at December 31, 2022																		Balance at December 31, 2022	$	11,832	$	9,585	$	(1)	$	(8)	$	(2)	$	21,406	$	—	$	21,406
Net income																		Net income	—		359		—		—		—		359		—		359
Other comprehensive income (loss)																		Other comprehensive income (loss)	—		—		—		2		—		2		—		2

Other	Other	—		(1)		—		—		—		(1)		—		(1)		Other	(2)		—		—		—		—		(2)		—		(2)
Balance at June 30, 2021		$	9,143	$	7,809	$	(4)	$	(2)	$	(7)	$	16,939	$	3	$	16,942

Balance at December 31, 2021		$	9,149	$	8,007	$	(2)	$	(2)	$	(7)	$	17,145	$	3	$	17,148
Net income		—		812		—		—		—		812		1		813
Other comprehensive income (loss)		—		—		1		(3)		—		(2)		—		(2)
Distributions to noncontrolling interests		—		—		—		—		—		—		(1)		(1)
Dividends to parent		—		(250)		—		—		—		(250)		—		(250)
Equitization of certain notes payable to affiliates		—		2,431		—		—		—		2,431		—		2,431
Other		—		1		—		—		—		1		—		1
Balance at June 30, 2022		$	9,149	$	11,001	$	(1)	$	(5)	$	(7)	$	20,137	$	3	$	20,140
Balance at March 31, 2023																		Balance at March 31, 2023	$	11,830	$	9,944	$	(1)	$	(6)	$	(2)	$	21,765	$	—	$	21,765

See Notes to Condensed Consolidated Financial Statements

2221


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues	$	1,581	$	1,349	$	3,213	$	2,750	Operating Revenues		$	1,533	$	1,632
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	593		409		1,167		845		Fuel used in electric generation and purchased power		545		574
Operation, maintenance and other	Operation, maintenance and other	360		367		751		724		Operation, maintenance and other		350		391
Depreciation and amortization	Depreciation and amortization	271		236		577		521		Depreciation and amortization		315		306
Property and other taxes	Property and other taxes	41		41		90		90		Property and other taxes		48		49
Impairment of assets and other charges	Impairment of assets and other charges	4		18		4		18		Impairment of assets and other charges		4		—
Total operating expenses	Total operating expenses	1,269		1,071		2,589		2,198		Total operating expenses		1,262		1,320
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	—		1		1		1		Gains on Sales of Other Assets and Other, net		—		1
Operating Income	Operating Income	312		279		625		553		Operating Income		271		313
Other Income and Expenses, net	Other Income and Expenses, net	32		20		54		44		Other Income and Expenses, net		29		22
Interest Expense	Interest Expense	90		78		175		147		Interest Expense		102		85
Income Before Income Taxes	Income Before Income Taxes	254		221		504		450		Income Before Income Taxes		198		250
Income Tax Expense	Income Tax Expense	35		6		70		25		Income Tax Expense		29		35
Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	219	$	215	$	434	$	425	Net Income and Comprehensive Income		$	169	$	215

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	50	$	49
Receivables (net of allowance for doubtful accounts of $5 at 2023 and $4 at 2022)	159		167
Receivables of VIEs (net of allowance for doubtful accounts of $40 at 2023 and 2022)	654		793
Receivables from affiliated companies	26		25
Notes receivable from affiliated companies	160		—
Inventory	1,082		1,006
Regulatory assets (includes $39 at 2023 and 2022 related to VIEs)	764		690
Other (includes $15 at 2023 and $42 at 2022 related to VIEs)	57		174
Total current assets	2,952		2,904
Property, Plant and Equipment
Cost	39,396		38,875
Accumulated depreciation and amortization	(14,452)		(14,201)

Net property, plant and equipment	24,944		24,674
Other Noncurrent Assets
Regulatory assets (includes $672 at 2023 and $681 at 2022 related to VIEs)	4,817		4,724
Nuclear decommissioning trust funds	3,640		3,430
Operating lease right-of-use assets, net	356		370
Other	659		650
Total other noncurrent assets	9,472		9,174
Total Assets	$	37,368	$	36,752
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	511	$	601
Accounts payable to affiliated companies	252		508
Notes payable to affiliated companies	—		238
Taxes accrued	56		77
Interest accrued	90		101
Current maturities of long-term debt (includes $34 at 2023 and 2022 related to VIEs)	370		369
Asset retirement obligations	272		288
Regulatory liabilities	293		332
Other	412		384
Total current liabilities	2,256		2,898
Long-Term Debt (includes $1,096 at 2023 and $1,114 at 2022 related to VIEs)	11,527		10,568
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	2,531		2,477
Asset retirement obligations	5,552		5,535
Regulatory liabilities	4,178		4,120
Operating lease liabilities	320		335
Accrued pension and other post-retirement benefit costs	158		160
Investment tax credits	129		124
Other	89		76
Total other noncurrent liabilities	12,957		12,827
Commitments and Contingencies
Equity
Member's Equity	10,478		10,309


Total Liabilities and Equity	$	37,368	$	36,752

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 75 $ 35
Receivables (net of allowance for doubtful accounts of $4 at 2022 and 2021) 63 127
Receivables of VIEs (net of allowance for doubtful accounts of $27 at 2022 and $17 at 2021) 705 574
Receivables from affiliated companies 20 65
Notes receivable from affiliated companies 154 —
Inventory 948 921
Regulatory assets (includes $39 at 2022 and 2021 related to VIEs) 621 533
Other (includes $26 in 2022 related to VIEs) 123 83
Total current assets 2,709 2,338
Property, Plant and Equipment
Cost 37,885 37,018
Accumulated depreciation and amortization (13,977) (13,387)
Facilities to be retired, net — 26
Net property, plant and equipment 23,908 23,657
Other Noncurrent Assets
Regulatory assets (includes $701 at 2022 and $720 at 2021 related to VIEs) 4,161 4,118
Nuclear decommissioning trust funds 3,374 4,089
Operating lease right-of-use assets, net 397 389
Other 787 792
Total other noncurrent assets 8,719 9,388
Total Assets $ 35,336 $ 35,383
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 469 $ 476
Accounts payable to affiliated companies 342 310
Notes payable to affiliated companies — 172
Taxes accrued 114 163
Interest accrued 101 96
Current maturities of long-term debt (includes $32 at 2022 and $15 at 2021 related to VIEs) 66 556
Asset retirement obligations 261 274
Regulatory liabilities 342 381
Other 425 448
Total current liabilities 2,120 2,876
Long-Term Debt (includes $1,130 at 2022 and $1,097 at 2021 related to VIEs) 10,446 9,543
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 2,323 2,208
Asset retirement obligations 5,414 5,401
Regulatory liabilities 4,342 4,868
Operating lease liabilities 365 350
Accrued pension and other post-retirement benefit costs 215 221
Investment tax credits 126 128
Other 100 87
Total other noncurrent liabilities 12,885 13,263
Commitments and Contingencies 0 0
Equity
Member's Equity 9,735 9,551
Total Liabilities and Equity $ 35,336 $ 35,383


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	169	$	215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)	360		350
Equity component of AFUDC	(13)		(7)

Impairment of assets and other charges	4		—
Deferred income taxes	27		19



Payments for asset retirement obligations	(46)		(41)
Provision for rate refunds	(14)		(16)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions	—		164
Receivables	144		(70)
Receivables from affiliated companies	(1)		63
Inventory	(76)		(19)
Other current assets	(61)		(75)
Increase (decrease) in
Accounts payable	(3)		18
Accounts payable to affiliated companies	(256)		(50)
Taxes accrued	(21)		(85)
Other current liabilities	(86)		(67)
Other assets(a)	(16)		(56)
Other liabilities	21		47
Net cash provided by operating activities	132		390
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(666)		(467)


Purchases of debt and equity securities	(239)		(481)
Proceeds from sales and maturities of debt and equity securities	236		480
Notes receivable from affiliated companies	(160)		(328)
Other	(33)		(19)
Net cash used in investing activities	(862)		(815)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	991		889

Payments for the redemption of long-term debt	(32)		(21)
Notes payable to affiliated companies	(239)		(172)

Distributions to parent	—		(250)
Other	(1)		(1)
Net cash provided by financing activities	719		445
Net (decrease) increase in cash, cash equivalents and restricted cash	(11)		20
Cash, cash equivalents and restricted cash at beginning of period	79		39
Cash, cash equivalents and restricted cash at end of period	$	68	$	59
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	176	$	111

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) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 434 $ 425
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel) 672 610
Equity component of AFUDC (22) (15)
Impairment of assets and other charges 4 18
Deferred income taxes 32 28
Payments for asset retirement obligations (90) (88)
Provision for rate refunds (30) (7)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions 314 9
Receivables (25) 31
Receivables from affiliated companies 63 (13)
Inventory (27) 52
Other current assets (83) (52)
Increase (decrease) in
Accounts payable (7) 28
Accounts payable to affiliated companies 32 (1)
Taxes accrued (49) 2
Other current liabilities (9) (45)
Other assets (75) (40)
Other liabilities 9 (43)
Net cash provided by operating activities 1,143 899
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (926) (869)
Purchases of debt and equity securities (887) (926)
Proceeds from sales and maturities of debt and equity securities 882 915
Notes receivable from affiliated companies (154) —
Other 22 (2)
Net cash used in investing activities (1,063) (882)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 939 19
Payments for the redemption of long-term debt (530) (3)
Notes payable to affiliated companies (172) (25)
Distributions to parent (250) —
Other (1) (1)
Net cash used in financing activities (14) (10)
Net increase in cash, cash equivalents and restricted cash 66 7
Cash, cash equivalents and restricted cash at beginning of period 39 39
Cash, cash equivalents and restricted cash at end of period $ 105 $ 46
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 158 $ 97

~~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, 2021 and 2022~~

(in millions)

Member's Equity

Balance at ~~March~~December 31, 2021

~~9,470~~9,551

Net income

215

Distributions to parent

(250)

Other

Balance at March 31, 2022

9,517

Balance at December 31, 2022

10,309

Net income

169

Balance at ~~June 30, 2021~~March 31, 2023

~~9,685~~

~~Balance at March 31, 2022~~

~~9,517~~

~~Net income~~

~~219~~

~~Other~~

~~(1)~~

~~Balance at June 30, 2022~~

~~9,735~~

~~Six Months Ended~~

~~June 30, 2021 and 2022~~

~~Member's~~

~~(in millions)~~

~~Member's Equity~~

~~Balance at December 31, 2020~~

~~9,260~~

~~Net income~~

~~425~~

~~Balance at June 30, 2021~~

~~9,685~~

~~Balance at December 31, 2021~~

~~9,551~~

~~Net income~~

~~434~~

~~Distributions to parent~~

~~(250)~~

~~Balance at June 30, 2022~~

~~9,735~~10,478

See Notes to Condensed Consolidated Financial Statements

2625


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues	$	1,628	$	1,325	$	2,983	$	2,426	Operating Revenues		$	1,510	$	1,355
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	665		424		1,155		783		Fuel used in electric generation and purchased power		646		490
Operation, maintenance and other	Operation, maintenance and other	241		255		490		497		Operation, maintenance and other		213		249
Depreciation and amortization	Depreciation and amortization	237		205		468		405		Depreciation and amortization		190		231
Property and other taxes	Property and other taxes	109		92		212		185		Property and other taxes		120		103
Impairment of assets and other charges	Impairment of assets and other charges	—		19		—		19		Impairment of assets and other charges		1		—
Total operating expenses	Total operating expenses	1,252		995		2,325		1,889		Total operating expenses		1,170		1,073
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	1		—		2		—		Gains on Sales of Other Assets and Other, net		1		1
Operating Income	Operating Income	377		330		660		537		Operating Income		341		283
Other Income and Expenses, net	Other Income and Expenses, net	40		18		55		36		Other Income and Expenses, net		30		15
Interest Expense	Interest Expense	90		80		174		160		Interest Expense		115		84
Income Before Income Taxes	Income Before Income Taxes	327		268		541		413		Income Before Income Taxes		256		214
Income Tax Expense	Income Tax Expense	66		51		109		79		Income Tax Expense		51		43
Net Income	Net Income	$	261	$	217	$	432	$	334	Net Income		$	205	$	171

Other Comprehensive Income (Loss), net of tax
Other Comprehensive Loss, net of tax										Other Comprehensive Loss, net of tax

Unrealized (losses) gains on available-for-sale securities		(1)		1		(2)		—
Unrealized gains (losses) on available-for-sale securities										Unrealized gains (losses) on available-for-sale securities		2		(1)

Comprehensive Income	Comprehensive Income	$	260	$	218	$	430	$	334	Comprehensive Income		$	207	$	170

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	26	$	45
Receivables (net of allowance for doubtful accounts of $9 at 2023 and $8 at 2022)	154		148
Receivables of VIEs (net of allowance for doubtful accounts of $21 at 2023 and $28 at 2022)	447		496
Receivables from affiliated companies	3		2

Inventory	630		573
Regulatory assets (includes $55 at 2023 and 2022 related to VIEs)	784		1,143
Other (includes $18 at 2023 and $46 at 2022 related to VIEs)	67		108
Total current assets	2,111		2,515
Property, Plant and Equipment
Cost	26,448		25,940
Accumulated depreciation and amortization	(6,552)		(6,377)
Net property, plant and equipment	19,896		19,563
Other Noncurrent Assets
Regulatory assets (includes $814 at 2023 and $826 at 2022 related to VIEs)	2,605		2,422
Nuclear decommissioning trust funds	408		424
Operating lease right-of-use assets, net	247		258
Other	393		372
Total other noncurrent assets	3,653		3,476
Total Assets	$	25,660	$	25,554
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	616	$	880
Accounts payable to affiliated companies	110		177
Notes payable to affiliated companies	886		605
Taxes accrued	131		53
Interest accrued	106		80
Current maturities of long-term debt (includes $307 at 2023 and $306 at 2022 related to VIEs)	330		328
Asset retirement obligations	1		1
Regulatory liabilities	180		244
Other	320		363
Total current liabilities	2,680		2,731
Long-Term Debt (includes $859 at 2023 and $890 at 2022 related to VIEs)	9,353		9,381
Other Noncurrent Liabilities
Deferred income taxes	2,811		2,789
Asset retirement obligations	346		357
Regulatory liabilities	618		633
Operating lease liabilities	201		211
Accrued pension and other post-retirement benefit costs	110		111
Investment tax credits	233		234
Other	77		84
Total other noncurrent liabilities	4,396		4,419
Commitments and Contingencies
Equity
Member's equity	9,237		9,031
Accumulated other comprehensive loss	(6)		(8)
Total equity	9,231		9,023
Total Liabilities and Equity	$	25,660	$	25,554

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 44 $ 23
Receivables (net of allowance for doubtful accounts of $8 at 2022 and 2021) 126 117
Receivables of VIEs (net of allowance for doubtful accounts of $13 at 2022 and $8 at 2021) 647 432
Receivables from affiliated companies 5 16
Inventory 478 477
Regulatory assets (includes $54 at 2022 and 2021 related to VIEs) 785 497
Other (includes $33 at 2022 and $39 at 2021 related to VIEs) 58 80
Total current assets 2,143 1,642
Property, Plant and Equipment
Cost 24,714 23,865
Accumulated depreciation and amortization (6,097) (5,819)
Net property, plant and equipment 18,617 18,046
Other Noncurrent Assets
Regulatory assets (includes $859 at 2022 and $883 at 2021 related to VIEs) 1,920 1,791
Nuclear decommissioning trust funds 470 553
Operating lease right-of-use assets, net 280 302
Other 407 399
Total other noncurrent assets 3,077 3,045
Total Assets $ 23,837 $ 22,733
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 750 $ 623
Accounts payable to affiliated companies 147 209
Notes payable to affiliated companies 504 199
Taxes accrued 186 51
Interest accrued 72 68
Current maturities of long-term debt (includes $306 at 2022 and $56 at 2021 related to VIEs) 327 76
Asset retirement obligations 1 1
Regulatory liabilities 238 98
Other 394 408
Total current liabilities 2,619 1,733
Long-Term Debt (includes $916 at 2022 and $1,196 at 2021 related to VIEs) 8,120 8,406
Other Noncurrent Liabilities
Deferred income taxes 2,506 2,434
Asset retirement obligations 392 436
Regulatory liabilities 752 698
Operating lease liabilities 235 256
Accrued pension and other post-retirement benefit costs 155 166
Other 333 309
Total other noncurrent liabilities 4,373 4,299
Commitments and Contingencies 0 0
Equity
Member's equity 8,730 8,298
Accumulated other comprehensive loss (5) (3)
Total equity 8,725 8,295
Total Liabilities and Equity $ 23,837 $ 22,733


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	205	$	171
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	194		273
Equity component of AFUDC	(3)		(5)

Impairment of assets and other charges	1		—
Deferred income taxes	21		52



Payments for asset retirement obligations	(12)		(28)

(Increase) decrease in

Receivables	42		(54)
Receivables from affiliated companies	(1)		—
Inventory	(57)		14
Other current assets(a)	363		(72)
Increase (decrease) in
Accounts payable	(211)		9
Accounts payable to affiliated companies	(67)		(89)
Taxes accrued	79		45
Other current liabilities	(27)		(52)
Other assets(a)	(193)		(24)
Other liabilities	(8)		(6)
Net cash provided by operating activities	326		234
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(609)		(514)


Purchases of debt and equity securities	(40)		(49)
Proceeds from sales and maturities of debt and equity securities	68		69

Other	(38)		(10)
Net cash used in investing activities	(619)		(504)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	5		—
Payments for the redemption of long-term debt	(34)		(34)
Notes payable to affiliated companies	281		269

Other	(1)		(1)
Net cash provided by financing activities	251		234
Net decrease in cash, cash equivalents and restricted cash	(42)		(36)
Cash, cash equivalents and restricted cash at beginning of period	86		62
Cash, cash equivalents and restricted cash at end of period	$	44	$	26
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	340	$	237

(a) Includes approximately $162 million of net collections of deferred fuel regulatory assets for the three months ended March 31, 2023.

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) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 432 $ 334
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 535 491
Equity component of AFUDC (10) (8)
Impairment of assets and other charges — 19
Deferred income taxes 66 130
Payments for asset retirement obligations (47) (52)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions — 5
Receivables (222) (42)
Receivables from affiliated companies 11 (5)
Inventory (4) 24
Other current assets (307) (132)
Increase (decrease) in
Accounts payable 168 15
Accounts payable to affiliated companies (62) 44
Taxes accrued 134 62
Other current liabilities 87 (35)
Other assets (3) 11
Other liabilities (11) (94)
Net cash provided by operating activities 767 767
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (1,018) (876)
Purchases of debt and equity securities (109) (234)
Proceeds from sales and maturities of debt and equity securities 151 286
Other (43) (67)
Net cash used in investing activities (1,019) (891)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for the redemption of long-term debt (39) (38)
Notes payable to affiliated companies 306 167
Net cash provided by financing activities 267 129
Net increase in cash, cash equivalents and restricted cash 15 5
Cash, cash equivalents and restricted cash at beginning of period 62 50
Cash, cash equivalents and restricted cash at end of period $ 77 $ 55
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 297 $ 232

~~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, 2021 and 2022
				Accumulated							Accumulated
				Other							Other
				Comprehensive							Comprehensive
				Income (Loss)							Loss
				Net Unrealized							Net Unrealized
				Losses on							Gains (Losses) on
		Member's		Available-for-Sale		Total			Member's		Available-for-Sale		Total
(in millions)	(in millions)	Equity		Securities		Equity		(in millions)	Equity		Securities		Equity
Balance at March 31, 2021		$	7,677	$	(3)	$	7,674
Net income		217		—		217
Other comprehensive income		—		1		1

Other		(1)		—		(1)
Balance at June 30, 2021		$	7,893	$	(2)	$	7,891

Balance at March 31, 2022		$	8,469	$	(4)	$	8,465
Net income		261		—		261
Other comprehensive loss		—		(1)		(1)

Balance at June 30, 2022		$	8,730	$	(5)	$	8,725

		Six Months Ended June 30, 2021 and 2022
				Accumulated
				Other
				Comprehensive
				Loss
				Net Unrealized
				Losses on
		Member's		Available-for-Sale		Total
(in millions)		Equity		Securities		Equity
Balance at December 31, 2020		$	7,560	$	(2)	$	7,558
Net income		334		—		334

Other		(1)		—		(1)
Balance at June 30, 2021		$	7,893	$	(2)	$	7,891

Balance at December 31, 2021	Balance at December 31, 2021	$	8,298	$	(3)	$	8,295	Balance at December 31, 2021	$	8,298	$	(3)	$	8,295
Net income	Net income	432		—		432		Net income	171		—		171
Other comprehensive loss	Other comprehensive loss	—		(2)		(2)		Other comprehensive loss	—		(1)		(1)

Balance at June 30, 2022		$	8,730	$	(5)	$	8,725

Balance at March 31, 2022								Balance at March 31, 2022	$	8,469	$	(4)	$	8,465

Balance at December 31, 2022								Balance at December 31, 2022	$	9,031	$	(8)	$	9,023
Net income								Net income	205		—		205
Other comprehensive income								Other comprehensive income	—		2		2

Other								Other	1		—		1
Balance at March 31, 2023								Balance at March 31, 2023	$	9,237	$	(6)	$	9,231

See Notes to Condensed Consolidated Financial Statements

3029


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues									Operating Revenues
Regulated electric	Regulated electric	$	401	$	343	$	813	$	706	Regulated electric		$	474	$	412
Regulated natural gas	Regulated natural gas	144		113		370		282		Regulated natural gas		235		226

Total operating revenues	Total operating revenues	545		456		1,183		988		Total operating revenues		709		638
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	127		93		254		175		Fuel used in electric generation and purchased power		176		127

Cost of natural gas	Cost of natural gas	46		16		153		67		Cost of natural gas		92		107
Operation, maintenance and other	Operation, maintenance and other	109		111		287		219		Operation, maintenance and other		123		178
Depreciation and amortization	Depreciation and amortization	83		75		163		149		Depreciation and amortization		90		80
Property and other taxes	Property and other taxes	92		83		193		175		Property and other taxes		80		101
Impairment of assets and other charges		—		5		—		5

Total operating expenses	Total operating expenses	457		383		1,050		790		Total operating expenses		561		593
Gains on Sales of Other Assets and Other, net		1		—		1		—

Operating Income	Operating Income	89		73		134		198		Operating Income		148		45
Other Income and Expenses, net	Other Income and Expenses, net	6		5		12		10		Other Income and Expenses, net		8		6
Interest Expense	Interest Expense	30		28		60		53		Interest Expense		36		30
Income Before Income Taxes	Income Before Income Taxes	65		50		86		155		Income Before Income Taxes		120		21
Income Tax Expense (Benefit)	Income Tax Expense (Benefit)	9		11		(47)		25		Income Tax Expense (Benefit)		20		(56)

Net Income and Comprehensive Income	Net Income and Comprehensive Income	$	56	$	39	$	133	$	130	Net Income and Comprehensive Income		$	100	$	77

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	26	$	16
Receivables (net of allowance for doubtful accounts of $7 at 2023 and $6 at 2022)	74		73
Receivables from affiliated companies	196		247
Notes receivable from affiliated companies	258		—
Inventory	157		144

Regulatory assets	54		103
Other	33		86
Total current assets	798		669
Property, Plant and Equipment
Cost	12,543		12,497
Accumulated depreciation and amortization	(3,282)		(3,250)

Net property, plant and equipment	9,261		9,247
Other Noncurrent Assets
Goodwill	920		920
Regulatory assets	623		581

Operating lease right-of-use assets, net	17		18

Other	74		71
Total other noncurrent assets	1,634		1,590
Total Assets	$	11,693	$	11,506
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	284	$	380
Accounts payable to affiliated companies	65		72
Notes payable to affiliated companies	72		497
Taxes accrued	227		317
Interest accrued	31		29
Current maturities of long-term debt	475		475

Asset retirement obligations	14		17
Regulatory liabilities	62		99
Other	66		74
Total current liabilities	1,296		1,960
Long-Term Debt	3,491		2,745
Long-Term Debt Payable to Affiliated Companies	25		25
Other Noncurrent Liabilities
Deferred income taxes	1,142		1,136
Asset retirement obligations	140		137
Regulatory liabilities	530		534
Operating lease liabilities	17		17
Accrued pension and other post-retirement benefit costs	91		90

Other	95		96
Total other noncurrent liabilities	2,015		2,010
Commitments and Contingencies
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2023 and 2022	762		762
Additional paid-in capital	3,100		3,100
Retained earnings	1,004		904

Total equity	4,866		4,766
Total Liabilities and Equity	$	11,693	$	11,506

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 15 $ 13
Receivables (net of allowance for doubtful accounts of $4 at 2022 and 2021) 83 96
Receivables from affiliated companies 177 122
Notes receivable from affiliated companies — 15
Inventory 112 116
Regulatory assets 59 72
Other 64 57
Total current assets 510 491
Property, Plant and Equipment
Cost 12,033 11,725
Accumulated depreciation and amortization (3,167) (3,106)
Generation facilities to be retired, net — 6
Net property, plant and equipment 8,866 8,625
Other Noncurrent Assets
Goodwill 920 920
Regulatory assets 613 635
Operating lease right-of-use assets, net 18 19
Other 88 84
Total other noncurrent assets 1,639 1,658
Total Assets $ 11,015 $ 10,774
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 379 $ 348
Accounts payable to affiliated companies 58 64
Notes payable to affiliated companies 301 103
Taxes accrued 180 275
Interest accrued 31 30
Asset retirement obligations 12 13
Regulatory liabilities 76 62
Other 112 82
Total current liabilities 1,149 977
Long-Term Debt 3,218 3,168
Long-Term Debt Payable to Affiliated Companies 25 25
Other Noncurrent Liabilities
Deferred income taxes 1,095 1,050
Asset retirement obligations 125 123
Regulatory liabilities 580 739
Operating lease liabilities 18 18
Accrued pension and other post-retirement benefit costs 108 109
Other 100 101
Total other noncurrent liabilities 2,026 2,140
Commitments and Contingencies 0 0
Equity
Common Stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2022 and 2021 762 762
Additional paid-in capital 3,100 3,100
Retained earnings 735 602
Total equity 4,597 4,464
Total Liabilities and Equity $ 11,015 $ 10,774


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	100	$	77
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	91		81
Equity component of AFUDC	—		(3)


Deferred income taxes	(3)		(51)



Payments for asset retirement obligations	(1)		—
Provision for rate refunds	—		5
(Increase) decrease in

Receivables	—		(5)
Receivables from affiliated companies	17		15
Inventory	(11)		2
Other current assets	94		48
Increase (decrease) in
Accounts payable	(60)		88
Accounts payable to affiliated companies	(7)		—
Taxes accrued	(90)		(56)
Other current liabilities	(42)		(89)
Other assets	1		(17)
Other liabilities	(1)		74
Net cash provided by operating activities	88		169
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(232)		(210)




Net proceeds from the sales of other assets	75		—
Notes receivable from affiliated companies	(224)		29
Other	(16)		(6)
Net cash used in investing activities	(397)		(187)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	749		—

Notes payable to affiliated companies	(425)		21

Other	(5)		(1)
Net cash provided by financing activities	319		20
Net increase in cash and cash equivalents	10		2
Cash and cash equivalents at beginning of period	16		13
Cash and cash equivalents at end of period	$	26	$	15
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	87	$	82

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) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 133 $ 130
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 165 151
Equity component of AFUDC (6) (4)
Impairment of assets and other charges — 5
Deferred income taxes (41) 17
Payments for asset retirement obligations (1) (1)
Provision for rate refunds 5 8
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions — (1)
Receivables 13 2
Receivables from affiliated companies (3) (11)
Inventory 3 (1)
Other current assets 13 (12)
Increase (decrease) in
Accounts payable 57 (8)
Accounts payable to affiliated companies — 4
Taxes accrued (95) (58)
Other current liabilities (47) (7)
Other assets (46) (33)
Other liabilities 72 4
Net cash provided by operating activities 222 185
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (406) (415)
Notes receivable from affiliated companies (37) 30
Other (25) (23)
Net cash used in investing activities (468) (408)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 50 —
Notes payable to affiliated companies 199 221
Other (1) —
Net cash provided by financing activities 248 221
Net increase (decrease) in cash and cash equivalents 2 (2)
Cash and cash equivalents at beginning of period 13 14
Cash and cash equivalents at end of period $ 15 $ 12
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 102 $ 88

~~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, 2021 and 2022
				Additional									Additional
		Common		Paid-in		Retained		Total			Common		Paid-in		Retained		Total
(in millions)	(in millions)	Stock		Capital		Earnings		Equity		(in millions)	Stock		Capital		Earnings		Equity
Balance at March 31, 2021		$	762	$	2,776	$	488	$	4,026
Net income		—		—		39		39

Balance at June 30, 2021		$	762	$	2,776	$	527	$	4,065

Balance at March 31, 2022		$	762	$	3,100	$	680	$	4,542
Balance at December 31, 2021										Balance at December 31, 2021	$	762	$	3,100	$	602	$	4,464
Net income	Net income	—		—		56		56		Net income	—		—		77		77

Other	Other	—		—		(1)		(1)		Other	—		—		1		1
Balance at June 30, 2022		$	762	$	3,100	$	735	$	4,597
Balance at March 31, 2022										Balance at March 31, 2022	$	762	$	3,100	$	680	$	4,542

		Six Months Ended June 30, 2021 and 2022
				Additional
		Common		Paid-in		Retained		Total
(in millions)		Stock		Capital		Earnings		Equity
Balance at December 31, 2020		$	762	$	2,776	$	397	$	3,935
Net income		—		—		130		130

Balance at June 30, 2021		$	762	$	2,776	$	527	$	4,065

Balance at December 31, 2021		$	762	$	3,100	$	602	$	4,464
Balance at December 31, 2022										Balance at December 31, 2022	$	762	$	3,100	$	904	$	4,766
Net income	Net income	—		—		133		133		Net income	—		—		100		100

Balance at June 30, 2022		$	762	$	3,100	$	735	$	4,597
Balance at March 31, 2023										Balance at March 31, 2023	$	762	$	3,100	$	1,004	$	4,866

See Notes to Condensed Consolidated Financial Statements

3433


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating Revenues	Operating Revenues	$	918	$	735	$	1,740	$	1,480	Operating Revenues		$	975	$	822
Operating Expenses	Operating Expenses									Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	359		201		678		418		Fuel used in electric generation and purchased power		449		319
Operation, maintenance and other	Operation, maintenance and other	182		192		374		370		Operation, maintenance and other		184		192
Depreciation and amortization	Depreciation and amortization	155		152		311		304		Depreciation and amortization		158		156
Property and other taxes	Property and other taxes	22		20		47		41		Property and other taxes		18		25
Impairment of assets and other charges	Impairment of assets and other charges	—		8		211		8		Impairment of assets and other charges		—		211
Total operating expenses	Total operating expenses	718		573		1,621		1,141		Total operating expenses		809		903
Losses on Sales of Other Assets and Other, net		—		(1)		—		(1)
Operating Income		200		161		119		338

Operating Income (Loss)										Operating Income (Loss)		166		(81)
Other Income and Expenses, net	Other Income and Expenses, net	8		10		18		19		Other Income and Expenses, net		14		10
Interest Expense	Interest Expense	45		49		90		99		Interest Expense		52		45
Income Before Income Taxes		163		122		47		258
Income (Loss) Before Income Taxes										Income (Loss) Before Income Taxes		128		(116)
Income Tax Expense (Benefit)	Income Tax Expense (Benefit)	14		19		(23)		43		Income Tax Expense (Benefit)		22		(37)
Net Income and Comprehensive Income		$	149	$	103	$	70	$	215
Net Income (Loss) and Comprehensive Income (Loss)										Net Income (Loss) and Comprehensive Income (Loss)		$	106	$	(79)

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	11	$	31
Receivables (net of allowance for doubtful accounts of $4 at 2023 and $4 at 2022)	90		112
Receivables from affiliated companies	228		298

Inventory	560		489
Regulatory assets	91		249
Other	64		197
Total current assets	1,044		1,376
Property, Plant and Equipment
Cost	18,295		18,121
Accumulated depreciation and amortization	(6,136)		(6,021)

Net property, plant and equipment	12,159		12,100
Other Noncurrent Assets
Regulatory assets	903		875

Operating lease right-of-use assets, net	48		49
Other	265		254
Total other noncurrent assets	1,216		1,178
Total Assets	$	14,419	$	14,654
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	247	$	391
Accounts payable to affiliated companies	60		206
Notes payable to affiliated companies	204		435
Taxes accrued	106		92
Interest accrued	59		48
Current maturities of long-term debt	3		303
Asset retirement obligations	197		207
Regulatory liabilities	207		187
Other	145		161
Total current liabilities	1,228		2,030
Long-Term Debt	4,350		3,854
Long-Term Debt Payable to Affiliated Companies	150		150
Other Noncurrent Liabilities
Deferred income taxes	1,313		1,299
Asset retirement obligations	741		744
Regulatory liabilities	1,517		1,454
Operating lease liabilities	46		47
Accrued pension and other post-retirement benefit costs	123		122
Investment tax credits	186		186
Other	31		65
Total other noncurrent liabilities	3,957		3,917
Commitments and Contingencies
Equity
Member's equity	4,733		4,702
Accumulated other comprehensive income	1		1
Total equity	4,734		4,703
Total Liabilities and Equity	$	14,419	$	14,654

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents $ 26 $ 6
Receivables (net of allowance for doubtful accounts of $3 at 2022 and 2021) 85 100
Receivables from affiliated companies 221 98
Notes receivable from affiliated companies — 134
Inventory 441 418
Regulatory assets 373 277
Other 237 68
Total current assets 1,383 1,101
Property, Plant and Equipment
Cost 17,709 17,343
Accumulated depreciation and amortization (5,824) (5,583)
Net property, plant and equipment 11,885 11,760
Other Noncurrent Assets
Regulatory assets 1,092 1,278
Operating lease right-of-use assets, net 50 53
Other 265 296
Total other noncurrent assets 1,407 1,627
Total Assets $ 14,675 $ 14,488
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 317 $ 282
Accounts payable to affiliated companies 216 221
Notes payable to affiliated companies 275 —
Taxes accrued 76 73
Interest accrued 48 49
Current maturities of long-term debt 31 84
Asset retirement obligations 122 110
Regulatory liabilities 178 127
Other 179 105
Total current liabilities 1,442 1,051
Long-Term Debt 4,156 4,089
Long-Term Debt Payable to Affiliated Companies 150 150
Other Noncurrent Liabilities
Deferred income taxes 1,270 1,303
Asset retirement obligations 845 877
Regulatory liabilities 1,485 1,565
Operating lease liabilities 48 50
Accrued pension and other post-retirement benefit costs 167 167
Investment tax credits 176 177
Other 75 44
Total other noncurrent liabilities 4,066 4,183
Commitments and Contingencies 0 0
Equity
Member's Equity 4,861 5,015
Total Liabilities and Equity $ 14,675 $ 14,488


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	106	$	(79)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	158		157
Equity component of AFUDC	(1)		(7)

Impairment of assets and other charges	—		211
Deferred income taxes	2		(81)



Payments for asset retirement obligations	(19)		(15)

(Increase) decrease in

Receivables	20		4
Receivables from affiliated companies	(26)		12
Inventory	(71)		(12)
Other current assets	174		(22)
Increase (decrease) in
Accounts payable	(107)		19
Accounts payable to affiliated companies	(33)		(22)
Taxes accrued	14		74
Other current liabilities	112		14
Other assets	(12)		(10)
Other liabilities	35		50
Net cash provided by operating activities	352		293
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(226)		(212)


Purchases of debt and equity securities	(23)		(16)
Proceeds from sales and maturities of debt and equity securities	16		13
Notes receivable from affiliated companies	96		131
Other	(10)		(17)
Net cash used in investing activities	(147)		(101)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	495		—
Payments for the redemption of long-term debt	(300)		(53)
Notes payable to affiliated companies	(231)		—
Distributions to parent	(188)		(125)
Other	(1)		(1)
Net cash used in financing activities	(225)		(179)
Net (decrease) increase in cash and cash equivalents	(20)		13
Cash and cash equivalents at beginning of period	31		6
Cash and cash equivalents at end of period	$	11	$	19
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures	$	85	$	82

(a) Includes approximately $175 million of net collections of deferred fuel regulatory assets for the three months ended March 31, 2023.

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) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ 70 $ 215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 312 306
Equity component of AFUDC (10) (12)
Impairment of assets and other charges 212 8
Deferred income taxes (80) 1
Payments for asset retirement obligations (31) (30)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions (53) —
Receivables 21 (15)
Receivables from affiliated companies 2 (8)
Inventory (23) 61
Other current assets (166) (31)
Increase (decrease) in
Accounts payable 59 35
Accounts payable to affiliated companies 7 (29)
Taxes accrued 19 10
Other current liabilities 52 20
Other assets (20) (3)
Other liabilities 50 6
Net cash provided by operating activities 421 534
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (433) (394)
Purchases of debt and equity securities (26) (9)
Proceeds from sales and maturities of debt and equity securities 21 6
Notes receivable from affiliated companies 9 7
Other (23) (8)
Net cash used in investing activities (452) (398)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 67 —
Payments for the redemption of long-term debt (53) —
Notes payable to affiliated companies 275 (131)
Distributions to parent (237) —
Other (1) —
Net cash provided by (used in) financing activities 51 (131)
Net increase in cash and cash equivalents 20 5
Cash and cash equivalents at beginning of period 6 7
Cash and cash equivalents at end of period $ 26 $ 12
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 94 $ 85

~~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, 2021 and 2022~~

~~Member's~~

~~(in millions)~~

~~Member's Equity~~

~~Balance at March 31, 2021~~

~~4,896~~

~~Net income~~

~~103~~

~~Balance at June 30, 2021~~

~~4,999~~

~~Balance at March 31, 2022~~

~~4,824~~

~~Net income~~

~~149~~

~~Distributions to parent~~

~~(112)~~

~~Balance at June 30, 2022~~

~~4,861~~

~~Six Months Ended~~

~~June 30, 2021 and 2022~~

~~Member's~~

~~(in millions)~~

~~Member's Equity~~

~~Balance at December 31, 2020~~

~~4,783~~

~~Net income~~

~~215~~

~~Other~~

~~Balance at June 30, 2021~~

~~4,999~~

~~Balance at December 31, 2021~~

~~5,015~~

~~Net income~~

~~Distributions to parent~~

~~(225)~~

~~Other~~

~~Balance at June 30, 2022~~

~~4,861~~


















			Accumulated Other
			Comprehensive Income
	Member's		Pension and		Total
(in millions)	Equity		OPEB Adjustments		Equity
Balance at December 31, 2021	$	5,015	$	—	$	5,015
Net loss	(79)		—		(79)

Distributions to parent	(113)		—		(113)
Other	1		—		1
Balance at March 31, 2022	$	4,824	$	—	$	4,824

Balance at December 31, 2022	$	4,702	$	1	$	4,703
Net income	106		—		106

Distributions to parent	(75)		—		(75)


Balance at March 31, 2023	$	4,733	$	1	$	4,734

See Notes to Condensed Consolidated Financial Statements

3837


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)


		Three Months Ended				Six Months Ended					Three Months Ended
		June 30,				June 30,					March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022

Operating Revenues	Operating Revenues	$	310	$	215	$	1,115	$	821	Operating Revenues		$	675	$	805
Operating Expenses	Operating Expenses									Operating Expenses
Cost of natural gas	Cost of natural gas	143		63		517		288		Cost of natural gas		206		374
Operation, maintenance and other	Operation, maintenance and other	88		76		183		154		Operation, maintenance and other		89		95
Depreciation and amortization	Depreciation and amortization	56		51		110		99		Depreciation and amortization		57		54
Property and other taxes	Property and other taxes	15		14		31		28		Property and other taxes		16		16
Impairment of assets and other charges	Impairment of assets and other charges	—		5		—		5		Impairment of assets and other charges		1		—
Total operating expenses	Total operating expenses	302		209		841		574		Total operating expenses		369		539
Gains on Sales of Other Assets and Other, net		4		—		4		—

Operating Income	Operating Income	12		6		278		247		Operating Income		306		266

Other Income and Expenses, net	Other Income and Expenses, net	15		18		28		35		Other Income and Expenses, net		16		13

Interest Expense	Interest Expense	34		30		66		59		Interest Expense		40		32
(Loss) Income Before Income Taxes		(7)		(6)		240		223
Income Tax (Benefit) Expense		(6)		(2)		27		24
Net (Loss) Income and Comprehensive (Loss) Income		$	(1)	$	(4)	$	213	$	199
Income Before Income Taxes										Income Before Income Taxes		282		247
Income Tax Expense										Income Tax Expense		50		33
Net Income and Comprehensive Income										Net Income and Comprehensive Income		$	232	$	214

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	March 31, 2023		December 31, 2022
ASSETS
Current Assets

Receivables (net of allowance for doubtful accounts of $14 at 2023 and 2022)	$	245	$	436
Receivables from affiliated companies	11		11

Inventory	99		172
Regulatory assets	121		119

Other	9		4
Total current assets	485		742
Property, Plant and Equipment
Cost	11,101		10,869
Accumulated depreciation and amortization	(2,136)		(2,081)
Facilities to be retired, net	8		9
Net property, plant and equipment	8,973		8,797
Other Noncurrent Assets
Goodwill	49		49
Regulatory assets	389		392
Operating lease right-of-use assets, net	3		4
Investments in equity method unconsolidated affiliates	78		79
Other	278		272
Total other noncurrent assets	797		796
Total Assets	$	10,255	$	10,335
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	191	$	345
Accounts payable to affiliated companies	39		51

Notes payable to affiliated companies	343		514
Taxes accrued	61		74
Interest accrued	43		40
Current maturities of long-term debt	45		45
Regulatory liabilities	122		74
Other	58		81
Total current liabilities	902		1,224
Long-Term Debt	3,319		3,318

Other Noncurrent Liabilities
Deferred income taxes	897		870
Asset retirement obligations	27		26
Regulatory liabilities	1,016		1,024
Operating lease liabilities	12		13
Accrued pension and other post-retirement benefit costs	7		7

Other	170		180
Total other noncurrent liabilities	2,129		2,120
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2023 and 2022	1,635		1,635

Retained earnings	2,269		2,037

Total Piedmont Natural Gas Company, Inc. stockholder's equity	3,904		3,672
Noncontrolling interests	1		1
Total equity	3,905		3,673
Total Liabilities and Equity	$	10,255	$	10,335

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated ~~Balance Sheets~~Statements of Cash Flows

(Unaudited)

(in millions) June 30, 2022 December 31, 2021
ASSETS
Current Assets
Receivables (net of allowance for doubtful accounts of $15 at 2022 and 2021) $ 150 $ 318
Receivables from affiliated companies 11 11
Inventory 68 109
Regulatory assets 154 141
Other 61 9
Total current assets 444 588
Property, Plant and Equipment
Cost 10,317 9,918
Accumulated depreciation and amortization (1,987) (1,899)
Facilities to be retired, net 10 11
Net property, plant and equipment 8,340 8,030
Other Noncurrent Assets
Goodwill 49 49
Regulatory assets 373 316
Operating lease right-of-use assets, net 14 16
Investments in equity method unconsolidated affiliates 79 95
Other 324 288
Total other noncurrent assets 839 764
Total Assets $ 9,623 $ 9,382
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 254 $ 196
Accounts payable to affiliated companies 44 40
Notes payable to affiliated companies 33 518
Taxes accrued 31 63
Interest accrued 39 37
Regulatory liabilities 89 56
Other 77 81
Total current liabilities 567 991
Long-Term Debt 3,363 2,968
Other Noncurrent Liabilities
Deferred income taxes 846 815
Asset retirement obligations 23 22
Regulatory liabilities 1,038 1,058
Operating lease liabilities 12 14
Accrued pension and other post-retirement benefit costs 7 7
Other 205 158
Total other noncurrent liabilities 2,131 2,074
Commitments and Contingencies 0 0
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2022 and 2021 1,635 1,635
Retained earnings 1,927 1,714
Total equity 3,562 3,349
Total Liabilities and Equity $ 9,623 $ 9,382


	Three Months Ended
	March 31,
(in millions)	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	232	$	214
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	58		55
Equity component of AFUDC	(5)		(1)

Impairment of assets and other charges	1		—
Deferred income taxes	14		(11)
Equity in earnings from unconsolidated affiliates	(2)		(2)



Provision for rate refunds	—		(2)
(Increase) decrease in

Receivables	189		15
Receivables from affiliated companies	—		(2)
Inventory	73		58
Other current assets	(19)		7
Increase (decrease) in
Accounts payable	(107)		(16)
Accounts payable to affiliated companies	(12)		12
Taxes accrued	(13)		16
Other current liabilities	42		36
Other assets	(2)		(13)
Other liabilities	(1)		—
Net cash provided by operating activities	448		366
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(271)		(199)







Other	(6)		(8)
Net cash used in investing activities	(277)		(207)
CASH FLOWS FROM FINANCING ACTIVITIES


Notes payable to affiliated companies	(171)		(158)




Other	—		(1)
Net cash used in financing activities	(171)		(159)
Net increase in cash and cash equivalents	—		—
Cash and cash equivalents at beginning of period	—		—
Cash and cash equivalents at end of period	$	—	$	—
Supplemental Disclosures:


Significant non-cash transactions:
Accrued capital expenditures	$	160	$	87

See Notes to Condensed Consolidated Financial Statements


FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

Condensed Consolidated Statements of ~~Cash Flows~~Changes in Equity

(Unaudited)

Six Months Ended
June 30,
(in millions) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 213 $ 199
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 111 101
Equity component of AFUDC (4) (14)
Losses (gains) on sales of other assets (4) —
Impairment of assets and other charges — 5
Deferred income taxes (4) 3
Equity in earnings from unconsolidated affiliates (4) (4)
Provision for rate refunds (3) (3)
(Increase) decrease in
Receivables 168 137
Inventory 40 26
Other current assets (63) 30
Increase (decrease) in
Accounts payable 31 (70)
Accounts payable to affiliated companies 4 (35)
Taxes accrued (32) 3
Other current liabilities 44 (30)
Other assets (2) 6
Other liabilities (1) (2)
Net cash provided by operating activities 494 352
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (385) (411)
Contributions to equity method investments (8) —
Return of investment capital — 1
Other (9) (17)
Net cash used in investing activities (402) (427)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 394 347
Payments for the redemption of long-term debt — (160)
Notes payable to affiliated companies (485) (437)
Capital contributions from parent — 325
Other (1) —
Net cash (used in) provided by financing activities (92) 75
Net increase in cash and cash equivalents — —
Cash and cash equivalents at beginning of period — —
Cash and cash equivalents at end of period $ — $ —
Supplemental Disclosures:
Significant non-cash transactions:
Accrued capital expenditures $ 124 $ 111























					Total
					Piedmont
					Natural Gas
	Common		Retained		Company, Inc.		Noncontrolling		Total
(in millions)	Stock		Earnings		Equity		Interests		Equity
Balance at December 31, 2021	$	1,635	$	1,714	$	3,349	$	—	$	3,349
Net income	—		214		214		—		214







Balance at March 31, 2022	$	1,635	$	1,928	$	3,563	$	—	$	3,563

Balance at December 31, 2022	$	1,635	$	2,037	$	3,672	$	1	$	3,673
Net income	—		232		232		—		232




Balance at March 31, 2023	$	1,635	$	2,269	$	3,904	$	1	$	3,905

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, 2021 and 2022
Common Retained Total
(in millions) Stock Earnings Equity
Balance at March 31, 2021 $ 1,635 $ 1,608 $ 3,243
Net loss — (4) (4)
Balance at June 30, 2021 $ 1,635 $ 1,604 $ 3,239
Balance at March 31, 2022 $ 1,635 $ 1,928 $ 3,563
Net loss — (1) (1)
Balance at June 30, 2022 $ 1,635 $ 1,927 $ 3,562
Six Months Ended June 30, 2021 and 2022
Common Retained Total
(in millions) Stock Earnings Equity
Balance at December 31, 2020 $ 1,310 $ 1,405 $ 2,715
Net income — 199 199
Contribution from parent 325 — 325
Balance at June 30, 2021 $ 1,635 $ 1,604 $ 3,239
Balance at December 31, 2021 $ 1,635 $ 1,714 $ 3,349
Net income — 213 213
Balance at June 30, 2022 $ 1,635 $ 1,927 $ 3,562

~~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

Duke Energy

•

Duke Energy

•

Duke Energy Carolinas

•

Duke Energy Carolinas

•

Progress Energy

•

Progress Energy

•

Duke Energy Progress

•

Duke Energy Progress

•

Duke Energy Florida

•

Duke Energy Florida

•

Duke Energy Ohio

•

Duke Energy Ohio

•

Duke Energy Indiana

•

Duke Energy Indiana

•

Piedmont

•

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 the Duke ~~Energy Registrants’ combined~~Energy's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

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 1112 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 three months ended March 31, 2023, and 2022, 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 nonregulated 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.

Several operating agreements of Duke Energy's subsidiaries with noncontrolling interest are subject to allocations of earnings, tax attributes and cash flows in accordance with contractual agreements that vary throughout the lives of the subsidiaries. Therefore, Duke Energy and the other investors' (the owners) interests in the subsidiaries are not fixed, and the subsidiaries apply the Hypothetical Liquidation at Book Value (HLBV) method in allocating income or loss and other comprehensive income or loss (all measured on a pretax basis) to the owners. The HLBV method measures the amounts that each owner would hypothetically claim at each balance sheet reporting date, including tax benefits realized by the owners over the IRS recapture period, upon a hypothetical liquidation of the subsidiary at the net book value of its underlying assets. The change in the amount that each owner would hypothetically receive at the reporting date compared to the amount it would have received on the previous reporting date represents the amount of income or loss allocated to each owner for the reporting period.

During September 2021, Duke Energy completed the initial minority interest investment in a portion of Duke Energy Indiana to an affiliate of GIC. GIC's ownership interest in Duke Energy Indiana represents a noncontrolling interest. See Note 2 for additional information on the sale.

~~Other operating~~ 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~~.shares.

4342


FINANCIAL STATEMENTS			ORGANIZATION AND BASIS OF PRESENTATION

~~The following table presents allocated losses to noncontrolling interest for the three and six months ended June 30, 2022, and 2021.~~

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2022 2021 2022 2021
Noncontrolling Interest Allocation of Income
Allocated losses to noncontrolling tax equity members utilizing the HLBV method $ 44 $ 55 $ 68 $ 98
Allocated (income) losses to noncontrolling members based on pro rata shares of ownership (17) 12 (4) 20
Total Noncontrolling Interest Allocated Losses $ 27 $ 67 $ 64 $ 118

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 910 and 1112 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, 2022										December 31, 2021											March 31, 2023										December 31, 2022
				Duke				Duke						Duke				Duke							Duke				Duke						Duke				Duke
		Duke		Energy		Progress		Energy				Duke		Energy		Progress		Energy					Duke		Energy		Progress		Energy				Duke		Energy		Progress		Energy
		Energy		Carolinas		Energy		Progress		Florida		Energy		Carolinas		Energy		Progress		Florida			Energy		Carolinas		Energy		Progress		Florida		Energy(a)		Carolinas		Energy		Progress		Florida
Current Assets	Current Assets																					Current Assets
Cash and cash equivalents	Cash and cash equivalents	$	428	$	37	$	129	$	75	$	44	$	343	$	7	$	70	$	35	$	23	Cash and cash equivalents	$	451	$	24	$	93	$	50	$	26	$	409	$	44	$	108	$	49	$	45
Other	Other	193		9		59		26		33		170		—		39		—		39		Other	42		5		37		14		18		82		8		74		28		41
Other Noncurrent Assets	Other Noncurrent Assets																					Other Noncurrent Assets
Other	Other	18		1		4		4		—		7		1		4		4		—		Other	11		1		4		4		—		11		1		2		2		—
Total cash, cash equivalents and restricted cash	Total cash, cash equivalents and restricted cash	$	639	$	47	$	192	$	105	$	77	$	520	$	8	$	113	$	39	$	62	Total cash, cash equivalents and restricted cash	$	504	$	30	$	134	$	68	$	44	$	502	$	53	$	184	$	79	$	86

(a) Certain prior year balances have been adjusted for held for sale presentation. See Note 2 for additional information.

INVENTORY

Provisions for inventory write-offs were not material at ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021.~~2022. The components of inventory are presented in the tables below.


		June 30, 2022																	March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Materials and supplies	Materials and supplies	$	2,490	$	817	$	1,124	$	769	$	355	$	88	$	321	$	13	Materials and supplies	$	2,739	$	948	$	1,273	$	842	$	431	$	116	$	355	$	12
Coal	Coal	446		182		132		79		53		14		117		—		Coal	772		309		233		128		105		29		202		—
Natural gas, oil and other fuel	Natural gas, oil and other fuel	272		34		170		100		70		10		3		55		Natural gas, oil and other fuel	354		46		206		112		94		12		3		87
Total inventory	Total inventory	$	3,208	$	1,033	$	1,426	$	948	$	478	$	112	$	441	$	68	Total inventory	$	3,865	$	1,303	$	1,712	$	1,082	$	630	$	157	$	560	$	99


		December 31, 2021																	December 31, 2022
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Materials and supplies	Materials and supplies	$	2,397	$	793	$	1,067	$	729	$	338	$	80	$	311	$	14	Materials and supplies	$	2,604	$	876	$	1,232	$	819	$	413	$	105	$	342	$	12
Coal	Coal	486		195		167		94		73		19		105		—		Coal	620		253		190		99		91		34		144		—
Natural gas, oil and other fuel	Natural gas, oil and other fuel	316		38		164		98		66		17		2		95		Natural gas, oil and other fuel	360		35		157		88		69		5		3		160
Total inventory	Total inventory	$	3,199	$	1,026	$	1,398	$	921	$	477	$	116	$	418	$	109	Total inventory	$	3,584	$	1,164	$	1,579	$	1,006	$	573	$	144	$	489	$	172

OTHER NONCURRENT ASSETS

Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind ~~auction. As a result,~~auction in May 2022 and recorded an asset of $150 million related to the arrangement ~~was recorded~~ in Other within Other noncurrent ~~assets as~~assets. In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the Electric Utilities and Infrastructure (EU&I) segment. See Notes 2 and 3 for further information.

ACCOUNTS PAYABLE

Duke Energy maintains a supply chain finance program (the “program”) with a global financial institution. The program is voluntary and allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to the 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. Duke Energy confirms invoices sold by suppliers under the program to the financial institution and pays the financial institution based on commercial terms negotiated between Duke Energy and the supplier regardless of ~~June 30,~~program participation. Suppliers’ decisions on which invoices are sold do not impact Duke Energy’s payment terms. 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 three months ended March 31, 2023, and 2022.



			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 the December 31, 2021	$	19	$	—	$	9	$	—	$	9	$	6	$	—	$	4
Invoices confirmed during the period	31		2		11		2		9		6		2		11
Confirmed invoices paid during the period	(31)		(1)		(11)		(1)		(10)		(8)		(1)		(10)
Confirmed obligations outstanding at March 31, 2022	$	19	$	1	$	9	$	1	$	8	$	4	$	1	$	5

Confirmed obligations outstanding at the December 31, 2022	$	87	$	6	$	19	$	8	$	11	$	5	$	—	$	57
Invoices confirmed during the period	59		10		22		11		11		1		—		25
Confirmed invoices paid during the period	(94)		(9)		(26)		(13)		(13)		(6)		—		(53)
Confirmed obligations outstanding at March 31, 2023	$	52	$	7	$	15	$	6	$	9	$	—	$	—	$	29

NEW ACCOUNTING STANDARDS

No new accounting standards were adopted by the Duke Energy Registrants in 2023.

2. DISPOSITIONS

Sale of Commercial Renewables Segment

In August 2022, Duke Energy announced a strategic review of its commercial renewables business. Since 2007, Duke Energy has built a portfolio of commercial wind, solar and battery projects across the U.S., and established a development pipeline. Duke Energy has developed a strategy to focus on renewables, grid and other investment opportunities within its regulated operations. In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the EU&I segment. Prior to March 2023, Duke Energy was actively marketing the Commercial Renewables business as two separate disposal groups, the utility-scale solar and wind group and the distributed generation group. In March 2023, assets for certain projects were removed from the utility-scale solar and wind group and placed in a separate disposal group (collectively, Commercial Renewables Disposal Groups) and a pretax impairment of approximately $220 million was recorded for the three months ended March 31, 2023. The sales processes for the Commercial Renewables Disposal Groups are ongoing and Duke Energy expects to dispose of these groups in the second half of 2023.

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. Originally debt and the related restricted cash and interest rate swaps were not expected to transfer to a buyer but during the marketing process it was determined they would be included with the sale and were classified as held for sale in March 2023. As a result, adjustments were made to the December 31, 2022, Consolidated Balance Sheet to present debt and the related restricted cash and interest rate swaps as held for sale. 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.

No interest from corporate level debt was allocated to discontinued operations.


FINANCIAL STATEMENTS			~~BUSINESS SEGMENTS~~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)	March 31, 2023		December 31, 2022
Current Assets Held for Sale
Cash and cash equivalents	$	12	$	10
Receivables, net	114		107
Inventory	81		88
Other	167		151
Total current assets held for sale	374		356
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost	6,334		6,444
Accumulated depreciation and amortization	(1,651)		(1,651)
Net property, plant and equipment	4,683		4,793
Operating lease right-of-use assets, net	142		140
Investments in equity method unconsolidated affiliates	512		522
Other	201		179
Total other noncurrent assets held for sale	855		841
Total Assets Held for Sale	$	5,912	$	5,990
Current Liabilities Associated with Assets Held for Sale
Accounts payable	$	80	$	122
Taxes accrued	9		17
Current maturities of long-term debt	275		276
Other	112		120
Total current liabilities associated with assets held for sale	476		535
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt	1,184		1,188

Operating lease liabilities	150		150
Asset retirement obligations	196		190
Other	401		399
Total other noncurrent liabilities associated with assets held for sale	1,931		1,927
Total Liabilities Associated with Assets Held for Sale	$	2,407	$	2,462

As of March 31, 2023, and December 31, 2022, the noncontrolling interest balance is $1.7 billion and $1.6 billion, respectively.

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


	Three Months Ended
	March 31,
(in millions)	2023		2022
Operating revenues	$	80	$	121


Operation, maintenance and other	89		81
Depreciation and amortization(a)	—		64
Property and other taxes	10		10


Other income and expenses, net	(4)		—
Interest expense	31		19
Loss on disposal	220		—
Loss before income taxes	(274)		(53)
Income tax benefit	(65)		(38)
Loss from discontinued operations	$	(209)	$	(15)
Add: Net loss attributable to noncontrolling interest included in discontinued operations	64		27
Net income from discontinued operations attributable to Duke Energy Corporation	$	(145)	$	12

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


FINANCIAL STATEMENTS			DISPOSITIONS

The Commercial Renewables Disposal Groups' held for sale assets included pretax impairments of approximately $1.7 billion at December 31, 2022. In the first quarter of 2023, a pretax impairment of approximately $220 million was recorded to write-down the carrying amount of property, plant and equipment assets to the estimated fair value of the business, based on the expected selling price less estimated costs to sell. The first quarter impairment was included in Loss from Discontinued Operations, net of tax, in Duke Energy's Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2023. The fair value was primarily determined from market information obtained through the bidding process and discounted cash flow analysis. The discounted cash flow model utilized Level 2 and Level 3 inputs. The fair value hierarchy levels are further discussed in Note 11. The impairment will be updated, if necessary, based on market changes or the final sales price, including all closing adjustments.

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.


	Three Months Ended
	March 31,
(in millions)	2023		2022
Cash flows provided by (used in):
Operating activities	$	(54)	$	64
Investing activities	(151)		(88)

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 Duke Energy (Parent) from these lawsuits will remain with Duke Energy (Parent) and any future activity related to Duke Energy (Parent) as a defendant in these lawsuits will be presented in discontinued operations. See Note 4 for more information.

3. BUSINESS SEGMENTS

Duke Energy

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

The ~~Electric Utilities and Infrastructure~~EU&I segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. ~~On January 28, 2021,~~EU&I also includes Duke ~~Energy executed an agreement providing~~Energy's electric transmission infrastructure investments and the offshore wind contract for ~~an investment by an affiliate of GIC in Duke Energy Indiana in exchange~~Carolina Long Bay. Refer to Note 2 for a 19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding company for Duke Energy Indiana. The transaction will be completed following 2 closings for an aggregate purchase price of approximately $2 billion. The first closing, which occurred on September 8, 2021, resulted in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership interests in exchange for approximately $1,025 million or 50% of the purchase price. Duke Energy retained indirect control of these assets, and, therefore, no gain or loss was recognized on the Condensed Consolidated Statements of Operations. Duke Energy has the discretion to determine the timing of the second closing, but it will occur no later than January 2023. At the second closing, Duke Energy will issue and sell additional membership interests such that GIC will own 19.9% of the membership interests for the remaining 50% of the purchase price.further information.

The ~~Gas Utilities and Infrastructure~~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 Commercial Renewables segment is primarily comprised of nonregulated utility-scale wind and solar generation assets located throughout the U.S. On August 4, 2022 Duke Energy announced a strategic review of the Commercial Renewables business segment. The review remains in the preliminary stage and there have been no binding or non-binding offers requested or submitted. Duke Energy can provide no assurance that this process will result in a transaction and there is no specific timeline for execution of a potential transaction. If the potential sale were to progress it could result in classification of the Commercial Renewables segment as assets held for sale and as discontinued operations. If Duke Energy is unable to recover its book value of these assets through a sale, it could result in an impairment.

Duke Energy continues to monitor recoverability of its renewable merchant plants located in the ERCOT West market and in the PJM West market due to fluctuating market pricing and long-term forecasted energy prices. The assets were not impaired as of June 30, 2022, because the carrying value of approximately $195 million continues to be supported by the expected cash flows. Duke Energy has a 51% ownership interest in these assets. A decline in energy market pricing or other factors unfavorably impacting the economics would likely result in a future impairment.

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, 2022
Electric Gas Total
Utilities and Utilities and Commercial Reportable
(in millions) Infrastructure Infrastructure Renewables Segments Other Eliminations Total
Unaffiliated revenues $ 6,126 $ 430 $ 121 $ 6,677 $ 8 $ — $ 6,685
Intersegment revenues 9 23 — 32 22 (54) —
Total revenues $ 6,135 $ 453 $ 121 $ 6,709 $ 30 $ (54) $ 6,685
Segment income (loss)(a)
$ 974 $ 19 $ 30 $ 1,023 $ (130) $ — $ 893
Less: Noncontrolling interests 27
Add: Preferred stock dividend 14
Net Income $ 880
Segment assets $ 145,874 $ 15,420 $ 7,276 $ 168,570 $ 3,821 $ (8) $ 172,383


		Three Months Ended June 30, 2021															Three Months Ended March 31, 2023
		Electric		Gas				Total									Electric		Gas		Total
		Utilities and		Utilities and		Commercial		Reportable									Utilities and		Utilities and		Reportable
(in millions)	(in millions)	Infrastructure		Infrastructure		Renewables		Segments		Other		Eliminations		Total		(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	Unaffiliated revenues	$	5,328	$	305	$	119	$	5,752	$	6	$	—	$	5,758	Unaffiliated revenues	$	6,381	$	888	$	7,269	$	7	$	—	$	7,276
Intersegment revenues	Intersegment revenues	7		22		—		29		21		(50)		—		Intersegment revenues	17		23		40		24		(64)		—
Total revenues	Total revenues	$	5,335	$	327	$	119	$	5,781	$	27	$	(50)	$	5,758	Total revenues	$	6,398	$	911	$	7,309	$	31	$	(64)	$	7,276
Segment income (loss)~~(b)~~	Segment income (loss)~~(b)~~	$	935	$	17	$	47	$	999	$	(248)	$	—	$	751	Segment income (loss)~~(b)~~	$	791	$	287	$	1,078	$	(168)	$	—	$	910
Less: Noncontrolling interests	Less: Noncontrolling interests													67		Less: Noncontrolling interests											43
Add: Preferred stock dividend	Add: Preferred stock dividend													14		Add: Preferred stock dividend											39

Discontinued operations																Discontinued operations											(145)
Net Income	Net Income													$	698	Net Income											$	761
Segment assets(a)																Segment assets(a)	$	152,989	$	16,217	$	169,206	$	9,627	$	—	$	178,833

4546


FINANCIAL STATEMENTS			BUSINESS SEGMENTS


	Three Months Ended March 31, 2022
	Electric		Gas		Total
	Utilities and		Utilities and		Reportable
(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	5,995	$	1,009	$	7,004	$	7	$	—	$	7,011
Intersegment revenues	7		23		30		23		(53)		—
Total revenues	$	6,002	$	1,032	$	7,034	$	30	$	(53)	$	7,011
Segment income (loss)(b)	$	723	$	254	$	977	$	(171)	$	—	$	806
Less: Noncontrolling interests											37
Add: Preferred stock dividend											39
Discontinued operations											12
Net Income											$	820

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

(b)EU&I includes $211 million recorded within Impairment of assets and ~~Infrastructure includes $2~~other charges, $46 million within Operating revenues and $22 million within Noncontrolling Interests related to the Duke Energy Indiana Supreme Court ruling on the Condensed Consolidated Statements of Operations. See Note 34 for additional information. Commercial Renewables includes a $21 million loss recorded within Nonregulated electric and other revenues related to mark-to-market derivative contracts on the Condensed Consolidated Statements of Operations.

~~(b)~~Gas Utilities and Infrastructure includes $16 million, recorded within Equity in earnings (losses) of unconsolidated affiliates on the Condensed Consolidated Statements of Operations, related to gas pipeline investments. Other includes $131 million recorded within Impairment of assets and other charges, $27 million within Operations, maintenance and other, and $17 million within Depreciation and amortization on the Condensed Consolidated Statements of Operations, related to the workplace and workplace realignment.

Six Months Ended June 30, 2022
Electric Gas Total
Utilities and Utilities and Commercial Reportable
(in millions) Infrastructure Infrastructure Renewables Segments Other Eliminations Total
Unaffiliated revenues $ 12,121 $ 1,439 $ 242 $ 13,802 $ 15 $ — $ 13,817
Intersegment revenues 16 46 — 62 45 (107) —
Total revenues $ 12,137 $ 1,485 $ 242 $ 13,864 $ 60 $ (107) $ 13,817
Segment income (loss)(a)
$ 1,697 $ 273 $ 41 $ 2,011 $ (300) $ — $ 1,711
Less: Noncontrolling interests 64
Add: Preferred stock dividend 53
Net Income $ 1,700

Six Months Ended June 30, 2021
Electric Gas Total
Utilities and Utilities and Commercial Reportable
(in millions) Infrastructure Infrastructure Renewables Segments Other Eliminations Total
Unaffiliated revenues $ 10,601 $ 1,057 $ 238 $ 11,896 $ 12 $ — $ 11,908
Intersegment revenues 15 45 — 60 41 (101) —
Total revenues $ 10,616 $ 1,102 $ 238 $ 11,956 $ 53 $ (101) $ 11,908
Segment income (loss)(b)
$ 1,755 $ 262 $ 74 $ 2,091 $ (387) $ — $ 1,704
Less: Noncontrolling interests 118
Add: Preferred stock dividend 53
Net Income $ 1,639

~~(a)~~Electric Utilities and Infrastructure includes $211 million recorded within Impairment of assets and other charges, $46 million within Regulated electric revenues and $20 million within Noncontrolling Interests related to the Duke Energy Indiana Supreme Court ruling on the Condensed Consolidated Statements of Operations. See Note 3 for additional information. Commercial Renewables includes a $21 million loss recorded within Nonregulated electric and other revenues related to mark-to-market derivative contracts on the Condensed Consolidated Statements of Operations.

~~(b)~~Gas Utilities and Infrastructure includes $22 million, recorded within Equity in earnings (losses) of unconsolidated affiliates on the Condensed Consolidated Statements of Operations, related to gas pipeline investments. Commercial Renewables includes a $35 million loss related to Texas Storm Uri, of which ($8 million) is recorded within Nonregulated electric and other revenues, $2 million within Operations, maintenance and other, $29 million within Equity in earnings (losses) of unconsolidated affiliates and $12 million within Loss Attributable to Noncontrolling Interests on the Condensed Consolidated Statements of Operations. See Note 4 for additional information. Other includes $131 million recorded within Impairment of assets and other charges, $27 million within Operations, maintenance and other, and $17 million within Depreciation and amortization on the Condensed Consolidated Statements of Operations, related to the workplace and workplace realignment.

Duke Energy Ohio

Duke Energy Ohio has 2two reportable segments, ~~Electric Utilities~~EU&I and ~~Infrastructure and Gas Utilities and Infrastructure.~~GU&I. The remainder of Duke Energy Ohio's operations is presented as Other.


		Three Months Ended June 30, 2022													Three Months Ended March 31, 2023
		Electric		Gas		Total									Electric		Gas		Total
		Utilities and		Utilities and		Reportable									Utilities and		Utilities and		Reportable
(in millions)	(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total		(in millions)	Infrastructure		Infrastructure		Segments		Other		Eliminations		Total

Total revenues	Total revenues	$	401	$	144	$	545	$	—	$	—	$	545	Total revenues	$	474	$	235	$	709	$	—	$	—	$	709
Segment income/Net (loss) income		$	37	$	19	$	56	$	—	$	—	$	56
Segment income (loss)/Net income														Segment income (loss)/Net income	$	49	$	52	$	101	$	(1)	$	—	$	100

Segment assets	Segment assets	$	7,237	$	3,899	$	11,136	$	14	$	(135)	$	11,015	Segment assets	$	7,553	$	4,041	$	11,594	$	10	$	89	$	11,693


~~FINANCIAL STATEMENTS~~			~~BUSINESS SEGMENTS~~


		Three Months Ended June 30, 2021								Three Months Ended March 31, 2022
		Electric		Gas		Total								Electric		Gas		Total
		Utilities and		Utilities and		Reportable								Utilities and		Utilities and		Reportable
(in millions)	(in millions)	Infrastructure		Infrastructure		Segments		Other			Total		(in millions)	Infrastructure		Infrastructure		Segments		Other		Total

Total revenues	Total revenues	$	343	$	113	$	456	$	—		$	456	Total revenues	$	412	$	226	$	638	$	—	$	638
Segment income/Net (loss) income		$	24	$	23	$	47	$	(8)		$	39
Segment income (loss)/Net income													Segment income (loss)/Net income	$	41	$	38	$	79	$	(2)	$	77

Six Months Ended June 30, 2022
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Total
Total revenues $ 813 $ 370 $ 1,183 $ — $ 1,183
Segment income/Net (loss) income $ 78 $ 57 $ 135 $ (2) $ 133

Six Months Ended June 30, 2021
Electric Gas Total
Utilities and Utilities and Reportable
(in millions) Infrastructure Infrastructure Segments Other Total
Total revenues $ 706 $ 282 $ 988 $ — $ 988
Segment income/Net (loss) income $ 74 $ 66 $ 140 $ (10) $ 130

3.4. 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.

Duke Energy Carolinas and Duke Energy Progress

~~Carbon Plan Proceeding~~

The NCUC is required by North Carolina House Bill 951 (HB 951) to adopt an initial Carbon Plan on or before December 31, 2022. Duke Energy Carolinas and Duke Energy Progress filed their proposed Carbon Plan on May 16, 2022. The NCUC Public Staff and other parties filed their reply comments on July 15, 2022, including alternative Carbon Plans filed by some of the other partiesNuclear Statio. The NCUC is conducting public hearings across North Carolina in July 2022 and August 2022. On July 29, 2022, the NCUC issued a procedural order setting forth the issues to be addressed in expert witness hearing scheduled to begin on September 13, 2022, and the issues to be addressed by written comments. Duke Energy Carolinas and Duke Energy Progress cannot predict the outcome of this matter.

~~Storm Cost Securitization Legislation~~

On June 15, 2022, the South Carolina General Assembly unanimously adopted S. 1077 (Act 227) in both the House and Senate and the bill was signed into law by Governor Henry McMaster on June 17, 2022. The legislation enables the PSCSC to permit the issuance of bonds for the payment of storm costs and the creation of a storm charge for repayment.

~~Duke Energy Carolinas~~

~~Oconee Nuclear Station~~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 3three contentions ~~purporting to challenge~~and claimed that Duke Energy Carolinas’ environmental report (ER). In general, the proposed contentions claimed that the ER did not consider certain information regarding the environmental aspects of severe accidents caused by a hypothetical failure of the Jocassee Dam in South Carolina and, therefore,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 filed its~~Carolinas' answer ~~to the proposed contentions on October 22, 2021,~~ and the ~~Petitioners filed their~~Petitioners' reply, ~~to Duke Energy Carolinas’ answer~~ on ~~November 5, 2021. On~~ February 11, 2022, the Atomic Safety and Licensing Board (ASLB) issued its decision on the Hearing Request and found that the Petitioners failed to establish that the proposed contentions are litigable. The ASLB also denied the Petitioners' Petition for Waiver and terminated the proceeding.


FINANCIAL STATEMENTS			REGULATORY MATTERS

On February 24, 2022, the NRC issued a decision in the SLR appeal related to ~~the~~Florida Power and Light's Turkey Point nuclear generating station in ~~Florida and~~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. ~~While~~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 ~~revised ER~~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 ~~is evaluating~~submitted a supplement to its environmental report addressing environmental impacts during the ~~two options~~SLR period. On December 19, 2022, the NRC published a notice in the Federal Register that the NRC will conduct a limited scoping process to ~~determine~~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 ~~is preferable~~include, but are not limited to, climate change and flooding, environmental justice, severe accidents, and external events. Currently, the NRC expects to publish a draft EIS in October 2023.

On December 19, 2022, the NRC issued the Safety Evaluation Report (SER) for ~~ONS.~~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 will delay 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. New depreciation rates were implemented for all of the nuclear facilities during the second quarter of 2021. Duke Energy Carolinas and Duke Energy Progress cannot predict the outcome of these additional relicensing proceedings.

Storm Cost Securitization

On June 15, 2022, the South Carolina General Assembly unanimously adopted S. 1077 (Act 227) in both the House and Senate and the bill was signed into law on June 17, 2022. The legislation enables the PSCSC to permit the issuance of bonds for the payment of storm costs and the creation of a storm charge for repayment.

On August 5, 2022, Duke Energy Progress filed a petition with the PSCSC for review and approval of deferred storm costs to be securitized of approximately $223 million. On February 7, 2023, a stipulation was reached with all parties in the proceeding regarding certain items identified through the Office of Regulatory Staff (ORS) audit of storm costs. The evidentiary hearing was held on March 1, 2023. On April 20, 2023, the PSCSC issued its order, approving the stipulation and determining unresolved issues in the case, resulting in approximately $171 million in projected deferred storm costs eligible to be securitized. The difference in the original filed amount and the approved amount is primarily related to the stipulation with the ORS in which Duke Energy Progress agreed to apply a debt-only rate of return for the calculation of carrying costs during the deferral period for the deferred storm costs.

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 includes an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR Application includes an Earnings Sharing Mechanism, Residential Decoupling Mechanism and Performance Incentive Mechanisms as required by HB 951. If approved, the overall retail revenue increase would be $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 major 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. Duke Energy Carolinas plans to implement interim rates, subject to refund, on September 1, 2023, and has requested permanent rates be effective by January 1, 2024. The evidentiary hearing has been scheduled to begin on August 21, 2023. Duke Energy Carolinas cannot predict the outcome of this matter.

Duke Energy Progress

2022 North Carolina Rate Case

On ~~June 8,~~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 includes an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR Application includes an Earnings Sharing Mechanism, Residential Decoupling Mechanism and Performance Incentive Mechanisms (PIMs) as required by HB 951. The overall retail revenue increase as originally filed would be $326 million in Year 1, $151 million in Year 2 and $138 million in Year 3, for a combined total of $615 million or 16% by late 2025. The rate increase is driven primarily by major 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. Duke Energy Progress plans to implement interim rates, subject to refund, in June 2023, and has requested ~~initiation~~permanent rates be effective by October 1, 2023.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Testimony was filed by various parties on March 27, 2023, and Duke Energy Progress rebuttal testimony was filed on April 14, 2023. On April 26, 2023, Duke Energy Progress filed a partial settlement with Public Staff, which includes agreement on many aspects of Duke Energy Progress' three-year MYRP proposal. In May 2023, the Carolina Industrial Group for Fair Utility Rates II joined this partial settlement and the parties filed a separate settlement reaching agreement on PIMs, Tracking Metrics and the residential decoupling mechanism under the PBR Application. The settlement agreements are subject to the review and approval of the ~~process necessary~~NCUC. Evidentiary hearings began on May 4, 2023. The key unsettled issues to ~~file~~be litigated in the hearing include the return on equity, capital structure, recovery of the COVID-19 cost deferral and treatment of certain regulatory asset and liability amortizations. Duke Energy Progress' proposed revenue requirement in the case as adjusted for supplemental updates and the partial settlement is $320 million in Year 1, $127 million in Year 2 and $140 million in Year 3, for a ~~performance-based regulation application (PBR Application). The request notified~~combined total of $587 million or 15% by late 2025. Duke Energy Progress cannot predict the ~~NCUC that such PBR Application would be targeted for filing no earlier than October 6, 2022.~~outcome of this matter.

2022 South Carolina Rate Case

On ~~August~~September 1, 2022, DDuke Ener~~uke Energy~~gy Progress filed ~~a notice~~an application with the PSCSC ~~of the company's intent~~ to ~~file a~~request an increase in base rate ~~adjustment application no earlier than 30 days from the date of notice.~~retail revenues.

~~FERC Return on Equity Complaint~~

On ~~October 16, 2020, North Carolina Electric Membership Corporation (NCEMC) filed a complaint at the FERC against~~January 12, 2023, Duke Energy Progress ~~pursuant to Section 206~~and the ORS, as well as other consumer, environmental, and industrial intervening parties, filed a comprehensive Agreement and Stipulation of Settlement resolving all issues in the base rate proceeding. The major components of the ~~Federal Power Act (FPA), alleging that~~stipulation include:

•A $52 million annual customer rate increase prior to the ~~11% stated~~reduction from the accelerated return to customers of federal unprotected Property, Plant and Equipment related EDIT. After extending the remaining EDIT giveback to customers to 33 months, the net annual retail rate increase is approximately $36 million.

•ROE of 9.6% based on a capital structure of 52.43% equity ~~(ROE) component~~and 47.57% debt.

•Continuation of deferral treatment of coal ash basin closure costs. Supports an amortization period for remaining coal ash closure costs in ~~the demand formula~~this rate ~~in the Power Supply and Coordination Agreement between NCEMC and~~case of seven years. Duke Energy Progress ~~is unjust~~agreed not to seek recovery of approximately $50 million of deferred coal ash expenditures related to retired sites in this rate case (South Carolina retail allocation).

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

•~~On June 16, 2022, Duke Energy Progress submitted~~Establishment of a storm reserve to help offset the ~~FERC an Offer~~costs of ~~Settlement~~major storms.

The PSCSC held a hearing on January 17, 2023, to consider evidence supporting the stipulation and ~~Settlement Agreement (Settlement Agreement) between NCEMC and Duke Energy Progress. The Settlement Agreement provides for an ROE of 10%, effective January~~unanimously voted to approve the comprehensive agreement on February 9, 2023. A final written order was issued on March 8, 2023. New rates went into effect April 1, ~~2022, among other contract modifications. On July 5, 2022, NCEMC filed comments in support of the Settlement Agreement. The parties are awaiting FERC approval of the Settlement Agreement. The final disposition of these proceedings is not expected to have a material effect on the results of operations, cash flows or financial position of Duke Energy Progress.~~2023.

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 on a capital structure of 53% equity and 47% debt. The ROE band can be increased by 25 basis points if the average 30-year U.S. Treasury rate increases 50 basis points or more over a six-month period in which case the midpoint ROE would rise from 9.85% to 10.10%. On July 25, 2022, this provision was triggered. Duke Energy Florida ~~has not yet made~~filed a ~~filing~~petition with the FPSC on August 12, 2022, to increase the ROE ~~but upon filing, the~~effective August 2022 with a base rate increase effective January 1, 2023. The FPSC ~~must rule~~approved this request on ~~this matter within 60 days of the filing per the terms of the 2021 Settlement.~~October 4, 2022. The 2021 Settlement Agreement also ~~provides~~provided that Duke Energy Florida will be able to retain ~~the~~ $173 million ~~retail portion~~ of the expected ~~DOE~~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 ~~will be able~~is permitted to recognize the $173 million into earnings ~~from 2022~~ through ~~2024.~~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 March 31, 2023, Duke Energy Florida has recognized $54 million into earnings. The remaining $119 million is expected to be recognized over the remainder of 2023 and 2024, while also remaining within the approved return on equity band.

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

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.


FINANCIAL STATEMENTS			REGULATORY MATTERS

Clean Energy Connection

On July 1, 2020, Duke Energy Florida petitioned the FPSC for approval of a voluntary solar program. The program consists 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 ~~over~~and the ~~next three years, and this~~projects are expected to be completed by the end of 2024. This investment will be included in base rates offset by the revenue from the subscription ~~fees. The~~fees and the credits will be included for recovery in the fuel cost recovery clause. The FPSC approved the program in January 2021.


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

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 ~~oral argument~~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 ~~FPSC~~Supreme Court of Florida requested that the parties file supplemental briefs regarding the revised order, which were filed February 6, 2023. LULAC has ~~not indicated~~filed a ~~time frame~~request for Oral Argument on the issues discussed in ~~which it intends~~the supplemental briefs, but the Court has yet to ~~act~~rule on ~~revising its order.~~that request. The FPSC approval order remains in effect pending the outcome of the appeal. Duke Energy Florida cannot predict the outcome of this matter.

Storm Protection Plan

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

Hurricane Ian

On September 28, 2022, much of Duke Energy Florida’s service territory was impacted by Hurricane Ian, which caused significant damage resulting in more than 1.1 million outages. Duke Energy Florida's March 31, 2023 Condensed Consolidated Balance Sheets includes an estimate of approximately $357 million in regulatory assets related to deferred Hurricane Ian storm costs consistent with the FPSC's storm rule. 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 Commission 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 cannot predict the outcome of this matter.

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 and an ROE of 10.3%. This is an approximate 3.3% average increase in the customer's total bill across all customer classes. The drivers for this case are capital invested since Duke Energy Ohio's last electric distribution base rate case in 2017.On September 19, 2022, Duke Energy Ohio ~~is also seeking to adjust the caps on its Distribution Capital Investment Rider (DCI Rider). The Staff of~~filed a Stipulation and Recommendation with the PUCO, ~~(Staff) report was issued on May 19, 2022, recommending~~which includes an increase in overall electric distribution base rates of $2approximately $23 million ~~to $15 million with~~and an ROE ~~range~~ of ~~8.84% to 9.85%~~9.5%. The ~~procedural schedule was set with supplemental testimony~~stipulation is among all but one party to bethe 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 (OCC) filed ~~August 18, 2022, and rebuttal testimony to be filed September 1, 2022. An evidentiary hearing is scheduled to begin~~an application for rehearing on ~~September 19, 2022. Depending on~~January 13, 2023. On February 8, 2023, the ~~matters submitted~~Commission granted the OCC's application for ~~hearing, a PUCO decision could be issued by the end of 2022.~~rehearing for further consideration. Duke Energy Ohio cannot predict the outcome of this matter.

Energy Efficiency Cost Recovery

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

•On March 27, 2020, Duke Energy Ohio filed an application for rehearing seeking clarification on the final true up and reconciliation process after 2020. On November 18, 2020, the PUCO issued an order replacing the cost cap previously imposed upon Duke Energy Ohio with a cap on shared savings recovery. On December 18, 2020, Duke Energy Ohio filed an additional application for rehearing challenging, among other things, the imposition of the cap on shared savings. On January 13, 2021, the application for rehearing was granted for further consideration.

•On October 9, 2020, Duke Energy Ohio filed an application to implement a voluntary energy efficiency program portfolio to commence on January 1, 2021. The application proposed a mechanism for recovery of program costs and a benefit associated with avoided transmission and distribution costs. ~~The~~This application remains under review.

•On November 18, 2020, the PUCO issued an order directing all utilities to set their energy efficiency riders to zero effective January 1, 2021, and to file a separate application for final reconciliation of all energy efficiency costs prior to December 31, 2020. Effective January 1, 2021, Duke Energy Ohio suspended its energy efficiency programs.


FINANCIAL STATEMENTS			REGULATORY MATTERS

•On June 14, 2021, the PUCO requested each utility to file by July 15, 2021, a proposal to reestablish low-income programs through December 31, 2021. Duke Energy Ohio filed its application on July 14, 2021.

•On February 23, 2022, the PUCO issued its Fifth Entry on Rehearing that 1) affirmed its reduction in Duke Energy Ohio's shared savings cap; 2) denied rehearing/clarification regarding lost distribution revenues and shared savings recovery for periods after December 31, 2020; and 3) directed Duke Energy Ohio to submit an updated application with exhibits.

•On March 25, 2022, Duke Energy Ohio filed its Amended Application consistent with the PUCO's order.

•On March 17, 2023, the Staff of the Public Utilities Commission of Ohio submitted its Staff Review and Recommendation. This Staff Report, like prior such reports, recommends certain disallowances related to incentives.

•On March 27, 2023, the Commission established a procedural schedule. Intervention/comments were filed on April 26, 2023, and reply comments are due by May 11, 2023.

Duke Energy Ohio cannot predict the outcome of this matter.

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 and an ROE of 10.3%. This is an approximate 5.6% average increase in the customer's total bill across all customer classes. The drivers for this case are capital invested since Duke Energy Ohio's last natural gas base rate case in 2012. Duke Energy Ohio is also seeking to adjust the caps on its ~~Capital Expenditure Program~~CEP Rider. The Staff of the PUCO (Staff) report was issued on December 21, 2022, recommending an increase in natural gas base rates of $24 million to $36 million, with an equity ratio of 52.32% and an ROE range of 9.03% to 10.04%. 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 ~~(CEP Rider).~~caps. The evidentiary hearing is scheduled to begin on May 23, 2023. Duke Energy Ohio cannot predict the outcome of this matter.

~~Natural Gas Pipeline Extension~~

Duke Energy Ohio installed a new natural gas pipeline (the Central Corridor Project) in its Ohio service territory to increase system reliability and enable the retirement of older infrastructure. Construction of the pipeline extension was completed and placed in service on March 14, 2022.Kentucky Electric Base Rate Case

On December 1, 2022, Duke Energy ~~Ohio expects~~Kentucky filed a rate case with the ~~final cost~~KPSC requesting an annualized increase in electric base rates of approximately $75 million and an ROE of 10.35%. This is an overall increase in rates of approximately 17.8%. The request for rate increase is driven by capital investments to strengthen the electricity generation and delivery systems along with adjusted depreciation rates for the ~~pipeline development~~East Bend and ~~construction activities~~Woodsdale generation stations to ~~be approximately $185 million (excluding overheads and AFUDC).~~


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

~~MGP Cost Recovery~~

~~In an order issued in 2013,~~support the ~~PUCO approved~~energy transition. Duke Energy ~~Ohio's deferral~~Kentucky is also requesting new programs and ~~recovery~~tariff updates, including a voluntary community-based renewable subscription program and two EV charging programs. Intervenor testimony was filed March 10, 2023, and rebuttal testimony was filed April 14, 2023. The Kentucky Attorney General recommended an increase of ~~costs related to environmental remediation at 2 sites (East End~~$31 million and West End) that housed former MGP operations. Duke Energy Ohio made annual applications with the PUCO to recover its incremental remediation costs consistent with the PUCO’s directive in Duke Energy Ohio’s 2012 natural gas base rate case. The Staff issued reports recommending a disallowancean ROE of MGP remediation costs incurred that the Staff believes are not eligible for recovery. The Staff interprets the PUCO’s 2013 order granting Duke Energy Ohio recovery of MGP remediation as limiting the recovery to work directly on the East End and West End sites. Duke Energy Ohio filed reply comments objecting to the Staff’s recommendations and explaining, among other things, the obligation Duke Energy Ohio has under Ohio law to remediate all areas impacted by the former MGPs and not just physical property that housed the former plants and equipment. Additionally, the Staff recommended that any discussion pertaining to Duke Energy Ohio's recovery of ongoing MGP costs should be directly tied to or netted against insurance proceeds collected by Duke Energy Ohio.9.55%. An evidentiary hearing ~~concluded on November 21, 2019. Initial briefs were filed on January 17, 2020, and reply briefs were filed on February 14, 2020.~~

~~The 2013 PUCO order also contained conditional deadlines for completing the MGP environmental remediation and the deferral of related remediation costs. Subsequent~~will begin May 9, 2023. New rates are anticipated to ~~the order, the deadline was extended to December 31, 2019. On May 10, 2019,~~go into effect around July 15, 2023. Duke Energy Ohio filed an application requesting a continuation of its existing deferral authority for MGP remediation that must occur after December 31, 2019. On July 12, 2019, the Staff recommended the commission deny the deferral authority request. On September 13, 2019, intervenor comments were filed opposing Duke Energy Ohio's request for continuation of existing deferral authority and on October 2, 2019, Duke Energy Ohio filed reply comments.

A Stipulation and Recommendation was filed jointly by Duke Energy Ohio, the Staff, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021, which was approved without modification by the PUCO on April 20, 2022. The Stipulation and Recommendation resolved all open issues regarding MGP remediation costs incurred between 2013 and 2019, Duke Energy Ohio’s request for additional deferral authority beyond 2019 and the pending issues related to the Tax Act described below as it related to Duke Energy Ohio’s natural gas operations. As a result of the approval of the Stipulation and Recommendation, Duke Energy Ohio recognized pretax charges of approximately $15 million to Operating revenues, regulated natural gas and $58 million to Operation, maintenance and other and a tax benefit of $72 million to Income Tax (Benefit) Expense in the Condensed Consolidated Statements of Operations for the six months ended June 30, 2022. ~~The~~ ~~Stipulation and Recommendation~~ further acknowledged Duke Energy Ohio’s ability to file a request for additional deferral authority in the future related to environmental remediation of any MGP impacts in the Ohio River, if necessary, subject to specific conditions. On June 15, 2022, the PUCO granted the rehearing requests of Interstate Gas Supply, Inc. (IGS) and The Retail Energy Supply Association (RESA), which were filed on May 20, 2022, for further consideration. ~~Duke Energy Ohio cannot predict the outcome of this matter.~~

~~Tax Act – Ohio~~

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

~~Midwest Propane Caverns~~

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


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

Duke Energy Indiana

2019 Indiana Rate Case

On July 2, 2019, Duke Energy Indiana filed a general rate case with the IURC for a rate increase for retail customers of approximately $395 million. The rebuttal case, filed on December 4, 2019, updated the requested revenue requirement to result in a 15.6% or $396 million average retail rate increase, including the impacts of the ~~Utility Receipts Tax. Hearings concluded on February 7, 2020.~~utility receipts tax. On June 29, 2020, the IURC issued an order in the rate case approving a revenue increase of $146 million before certain adjustments and ratemaking refinements. The order approved Duke Energy Indiana’s requested forecasted rate base of $10.2 billion as of December 31, 2020, including the Edwardsport Integrated Gasification Combined Cycle (IGCC) Plant. The IURC reduced Duke Energy Indiana’s request by slightly more than $200 million, when accounting for the utility receipts tax and other adjustments. Approximately 50% of the reduction was due to a prospective change in depreciation and use of regulatory asset for the end-of-life inventory at retired generating plants, approximately 20% was due to the approved ROE of 9.7% versus the requested ROE of 10.4% and approximately 20% was related to miscellaneous earnings neutral adjustments. Step one rates were estimated to be approximately 75% of the total and became effective on July 30, 2020. Step two rates estimated to be the remaining 25% of the total rate increase were approved on July 28, 2021, and implemented in August 2021.

Several groups appealed the IURC order to the Indiana Court of Appeals. Appellate briefs were filed on October 14, 2020, focusing on three issues: wholesale sales allocations, coal ash basin cost recovery and the Edwardsport IGCC operating and maintenance expense level approved. The Indiana Court of Appeals affirmed the IURC decision on May 13, 2021. ~~The~~However, upon appeal by the Indiana Office of Utility Consumer Counselor (OUCC) and the Duke Industrial Group ~~filed a joint petition to transfer the rate case appeal to~~on March 10, 2022, the Indiana Supreme Court ~~on June 28, 2021. The Indiana Supreme Court issued its opinion on March 10, 2022, finding~~found that the IURC erred in allowing Duke Energy Indiana to recover coal ash costs incurred before the IURC’s rate case order in June 2020. The Indiana Supreme Court found that allowing Duke Energy Indiana to recover coal ash costs incurred between rate cases that exceeded the amount built into base rates violated the prohibition against retroactive ratemaking. The IURC’s order has been remanded to the IURC for additional proceedings consistent with the Indiana Supreme Court’s opinion. As a result of the court's opinion, Duke Energy Indiana recognized pretax charges of approximately $211 million to Impairment of assets and other charges and $46 million to Operating revenues in the Condensed Consolidated Statements of Operations for the ~~six~~ three months ended ~~June 30, 2022.~~ March 31, 2022. Duke Energy Indiana filed a request for rehearing with the Supreme Court on April 11, 2022, which the court denied on May 26, 2022. Duke Energy Indiana ~~expects to file~~filed its testimony in the remand proceeding on August 18, 2022. On February 3, 2023, Duke Energy Indiana ~~cannot predict~~filed a settlement agreement reached with the ~~outcome~~OUCC and Duke Industrial Group, which includes an agreed amount of approximately $70 million of refunds to be paid to customers. The IURC approved this ~~matter.~~settlement agreement in its entirety on April 12, 2023.


FINANCIAL STATEMENTS			REGULATORY MATTERS

2020 Indiana Coal Ash Recovery Case

In Duke Energy Indiana’s 2019 rate case, the IURC also opened a subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana filed testimony on April 15, 2020, in the coal ash subdocket requesting recovery for the post-2018 coal ash basin closure costs for plans that have been approved by the Indiana Department of Environmental Management (IDEM) as well as continuing deferral, with carrying costs, on the balance. An evidentiary hearing was held on September 14, 2020. Briefing was completed by mid-September 2021. On November 3, 2021, the IURC issued an order allowing recovery for post-2018 coal ash basin closure costs for the plans that have been approved by IDEM, as well as continuing deferral, with carrying costs, on the balance. The OUCC and the Duke Industrial Group appealed. The Indiana Court of Appeals issued its opinion on February 21, 2023, reversing the IURC's order to the extent that it allowed Duke Energy Indiana to recover federally mandated costs incurred prior to the IURC's November 3, 2021 order. In addition, the court found that any costs incurred pre-petition to determine federally mandated compliance options were not specifically authorized by the statute and should also be disallowed. As a result of the Court's opinion, Duke Energy Indiana recognized a pretax charge of approximately $175 million to Impairment of assets and other charges for the year ended December 31, 2022. After the passage of Senate Enrolled Act 9, which amended the federal mandate statute to make clear that costs incurred pre-order are recoverable, Duke Energy Indiana filed a ~~notice of appeal to~~petition for rehearing with the Indiana Court of Appeals, which was denied on ~~December 3, 2021.~~ ~~The OUCC also argued in~~April 27, 2023. Duke Energy ~~Indiana’s Environmental Compliance Rider proceeding, which was filed on March 31, 2022, that coal ash related expenditures incurred prior~~Indiana is evaluating whether to file a petition to transfer the case to the ~~subdocket order date should be disallowed and likely intends to make similar arguments in its appeal of this subdocket.~~ Indiana Supreme Court. Duke Energy Indiana cannot predict the outcome of this matter.

TDSIC 2.0

On November 23, 2021, Duke Energy Indiana filed for approval of the Transmission, Distribution, Storage Improvement Charge 2.0 investment plan for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without modification, TDSIC 2.0, which includes approximately $2 billion in transmission and distribution investments selected to improve customer reliability, ~~to our customers,~~ 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 the 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. ~~Other parties are currently intervening~~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 Commission’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the ~~appeal and briefing schedule has not yet been set.~~Indiana Supreme Court. Duke Energy Indiana filed its opposition to transfer on April 11, 2023. Duke Energy Indiana cannot predict the outcome of this matter.

Piedmont

~~2022 South Carolina Rate Case~~Tennessee Annual Review Mechanism

On ~~April 1,~~October 10, 2022, the TPUC approved Piedmont’s petition to adopt an Annual Review Mechanism (ARM) as allowed by Tennessee law. Under the ARM, Piedmont ~~filed an application with~~will adjust rates annually to achieve its allowed 9.80% ROE over the ~~PSCSC for a rate increase for retail customers of approximately $7 million, which represents an approximate 3.4% increase in retail revenues.~~upcoming year and to true up any variance between its allowed ROE and actual ROE from the prior calendar year. The rate increase is driven by customer growth and infrastructure upgrade investments (plant additions) since Piedmont’s last proceeding in 2021 under South Carolina’s Rate Stabilization Act. In addition, Piedmont agreed with the South Carolina Office of Regulatory Staff in 2019 to file a general rate case no later than April 1, 2022, to conduct a more comprehensive review of rates including the allocation of costs to residential, commercial and industrial customers. In additioninitial year subject to the ~~South Carolina Office of Regulatory Staff, the South Carolina Department of Consumer Affairs~~true up is 2022, and the ~~South Carolina Energy Users Committee intervened~~initial rate adjustments request will be filed in the case and filed testimony on July 12, 2022, each recommending downward adjustments relating to several issues, including return on equity, capital structure, depreciation and employee compensation. Piedmont filed rebuttal testimony on July 26, 2022. The PSCSC has scheduled an evidentiary hearingMay 2023 for ~~the week of August 15, 2022. Piedmont cannot predict the outcome of this matter.~~


~~FINANCIAL STATEMENTS~~			~~REGULATORY MATTERS~~

~~OTHER REGULATORY MATTERS~~

~~Potential Coal Plant Retirements~~

The Subsidiary Registrants periodically file integrated resource plans (IRPs) with their state regulatory commissions. The IRPs provide a view of forecasted energy needs over a long term (10 to 20 years) and options being considered to meet those needs. IRPs filed by the Subsidiary Registrants included planning assumptions to potentially retire certain coal-fired generating facilities in North Carolina and Indiana earlier than their current estimated useful lives. Duke Energy continues to evaluate the potential need to retire these coal-fired generating facilities earlier than the current estimated useful lives and plans to seek regulatory recovery for amounts that would not be otherwise recovered when any of these assets are retired.

The table below contains the net carrying value of generating facilities planned for retirement or included in recent IRPs as evaluated for potential retirement. Dollar amounts in the table below are included in Net property, plant and equipment on the Condensed Consolidated Balance Sheets as of June 30, 2022, and exclude capitalized asset retirement costs.

Remaining Net
Capacity Book Value
(in MW) (in millions)
Duke Energy Carolinas
Allen Steam Station Unit 1(a)
167 $ 12
Allen Steam Station Unit 5(b)
259 265
Cliffside Unit 5(b)
546 362
Duke Energy Progress
Mayo Unit 1(b)
713 634
Roxboro Units 3-4(b)
1,409 443
Duke Energy Florida
Crystal River Units 4-5(c)
1,442 1,615
Duke Energy Indiana
Gibson Units 1-5(d)
2,845 2,058
Cayuga Units 1-2(d)
1,005 660
Total Duke Energy 8,386 $ 6,049

~~(a)As part of the 2015 resolution of a lawsuit involving alleged New Source Review violations, Duke Energy Carolinas must retire Allen Steam Station Unit~~rates effective October 1, ~~by December 31, 2024. The long-term energy options considered in the IRP could result in retirement of this unit earlier than its current estimated useful life.~~

~~(b)These units were included in the IRP filed by Duke Energy Carolinas and Duke Energy Progress in North Carolina and South Carolina on September 1, 2020.~~ ~~The long-term energy options considered in the IRP could result in retirement of these units earlier than their current estimated useful lives.~~

~~(c)~~On January 14, 2021, Duke Energy Florida filed the 2021 Settlement agreement with the FPSC, which proposed depreciation rates reflecting retirement dates for Duke Energy Florida's last 2 coal-fired generating facilities, Crystal River Units 4-5, eight years ahead of schedule in 2034 rather than in 2042. The FPSC approved the 2021 Settlement on May 4, 2021.

~~(d)~~The rate case filed July 2, 2019, included proposed depreciation rates reflecting retirement dates from 2026 to 2038. The depreciation rates reflecting these updated retirement dates were approved by the IURC as part of the rate case order issued on June 29, 2020.2023.

4.5. COMMITMENTS AND CONTINGENCIES

ENVIRONMENTAL

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 ~~upon~~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.


FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

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


(in millions)	(in millions)	June 30, 2022		December 31, 2021		(in millions)	March 31, 2023		December 31, 2022
Reserves for Environmental Remediation	Reserves for Environmental Remediation					Reserves for Environmental Remediation
Duke Energy	Duke Energy	$	90	$	88	Duke Energy	$	86	$	84
Duke Energy Carolinas	Duke Energy Carolinas	24		19		Duke Energy Carolinas	23		22
Progress Energy	Progress Energy	23		23		Progress Energy	20		19
Duke Energy Progress	Duke Energy Progress	12		11		Duke Energy Progress	9		8
Duke Energy Florida	Duke Energy Florida	10		11		Duke Energy Florida	11		11
Duke Energy Ohio	Duke Energy Ohio	33		34		Duke Energy Ohio	33		33
Duke Energy Indiana	Duke Energy Indiana	3		4		Duke Energy Indiana	3		3
Piedmont	Piedmont	7		9		Piedmont	7		7

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

LITIGATION

Duke Energy

~~Michael Johnson et al. v. Duke Energy Corporation et al.~~

On September 23, 2020, plaintiff Michael Johnson, a former Duke Energy employee and participant in the Duke Energy Retirement Savings Plan (Plan) brought suit on his own behalf and on behalf of other participants and beneficiaries similarly situated against Duke Energy Corporation, the Duke Energy Benefits Committee, and other unnamed individual defendants. The complaint, which was subsequently amended to add a current participant as a plaintiff on November 23, 2020, alleges that the defendants breached their fiduciary duties with respect to certain fees associated with the Plan in violation of the Employee Retirement Income Security Act of 1974 and seeks certification of a class of all individuals who were participants or beneficiaries of the Plan at any time on or after September 23, 2014. The defendants filed a motion to dismiss the plaintiffs’ amended complaint on December 18, 2020. On January 31, 2022, the court denied the defendants' motion to dismiss. On February 28, 2022, Duke Energy responded to the amended complaint. Discovery commenced and the parties exchanged preliminary disclosures. After review of these disclosures, the plaintiff agreed to voluntarily dismiss its suit and the parties subsequently filed a joint stipulation of voluntary dismissal with prejudice on April 29, 2022, ending this litigation.

Texas Storm Uri Tort Litigation

~~Several~~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 ~~mid-February~~February 2021. Duke Energy ~~Corporation, which had originally been named in several suits,~~(Parent) was dismissed from the ~~lawsuits. The~~suits, leaving two suits in which individual wind and solar projects are named. These lawsuits ~~against the Duke Energy renewables project companies~~ seek recovery for property damages, personal injury and ~~for~~ wrongful death allegedly caused by the power outages ~~which the~~that plaintiffs claim ~~was~~were the ~~result of~~ collective ~~failures~~failure of generators, transmission and distribution operators, retail energy providers, and all others, including ERCOT. The cases ~~have been~~were consolidated into a Texas state court multidistrict litigation (MDL) proceeding for discovery and ~~pre-litigation purposes. NaN~~pre-trial motions. Five MDL cases ~~have been~~were designated ~~for~~as lead cases in which motions to dismiss ~~while~~were filed and all other cases ~~are~~were stayed. On January 28, 2023, the Court denied certain motions including those by the generator defendants and granted others. Defendants filed a petition for Writ of Mandamus to the Texas Court of Appeals seeking to overturn the denials, which is fully briefed and pending a decision from the Texas Court of Appeals. Since the ruling on the motion to dismiss, plaintiffs have served a number of new lawsuits on Duke Energy ~~renewables projects~~(Parent), Duke Energy Renewables, LLC, and several Duke Energy renewable entities. These new lawsuits are ~~named as defendants~~being included in ~~3 of these 5 cases. Plaintiffs in these five cases have filed amended petitions, which~~the MDL proceeding and are subject to renewed omnibus motions to dismiss. The parties' briefing on omnibus motions to dismiss should be completed by September 2022 and will focus on lack of duty, tariff defenses and sovereign immunity. Decisions on these motions will be applicable to all of the stayed cases.currently stayed. Duke Energy cannot predict the outcomes of these matters. See Note 2 for more information related to the sale of the Commercial Renewables Disposal Groups.

Duke Energy Carolinas

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

On June 16, 2021, a group of 9nine individuals went over a low head dam adjacent to the Dan River Steam Station in Eden, North Carolina, while water tubing. Emergency personnel rescued 4four people and 5five others were confirmed deceased. On August 11, 2021, Duke Energy Carolinas was served with the complaint filed in Durham County Superior Court on behalf of 4four survivors, which was later amended to include all the decedents along with the ~~survivors, except for one minor.~~survivors. The lawsuit alleges that Duke Energy Carolinas knew that the river was used for recreational purposes, ~~and that Duke Energy~~ did not adequately warn about the dam, and ~~that Duke Energy Carolinas~~ created a dangerous and hidden hazard on the Dan River inby building and maintaining the ~~low head~~low-head dam. On September 30, 2021, Duke Energy Carolinas filed its motion to dismiss and motion for transfer of venue from Durham County to Rockingham County, both of which were denied on November 15, 2021. On November 15, 2021, Duke Energy Carolinas was also served with Plaintiffs Second Amended Complaint, which added the final minor plaintiff and consolidated all the actions into 1 lawsuit. Duke Energy Carolinas has ~~filed its Answer and Affirmative Defenses~~reached an agreement in principle that will resolve this matter to the ~~Second Amended Complaint. Mediation~~parties' mutual satisfaction. The resolution, which is ~~scheduled for December 2022. Discovery has commenced and~~not expected to have a material financial impact, is ~~scheduled~~subject to ~~be completed on or before February 28, 2023. The case is scheduled to be trial-ready~~court approval by ~~April 24, 2023.~~the Durham County Superior Court. Duke Energy Carolinas cannot predict the outcome of this matter.


~~FINANCIAL STATEMENTS~~			~~COMMITMENTS AND CONTINGENCIES~~

NTE Carolinas II, LLC Litigation

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

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

On August 17, 2020, the court denied both NTE’s and Duke Energy Carolinas’ motions to dismiss. In October 2021, NTE filed a Second Amended Counterclaim and Complaint, and in January 2022, NTE filed a Third Amended Counterclaim and Complaint. Duke Energy Carolinas has responded to these pleadings. On December 6, 2021, Duke Energy Carolinas filed an Amended Complaint.


FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

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 ~~that violated various~~in violation of state and federal ~~and state antitrust and deceptive trade practices~~ statutes. ~~The~~On October 12, 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation ~~are~~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' ~~original claims against NTE~~favor on NTE's antitrust and unfair competition claims. Briefing on NTE's ~~claims for declaratory judgment and breach of contract. Trial~~appeal will be completed on ~~these remaining claims is scheduled to begin on October 11, 2022.~~June 2, 2023. Duke Energy Carolinas cannot predict the outcome of this matter.

Asbestos-related Injuries and Damages Claims

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

Duke Energy Carolinas has recognized asbestos-related reserves of ~~$488~~$451 million at ~~June 30, 2022,~~March 31, 2023, and ~~$501~~$457 million at December 31, ~~2021.~~2022. 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 ~~upon~~on Duke Energy Carolinas' best estimate for current and future asbestos claims through ~~2041~~2042 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 ~~2041~~2042 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 ~~$644~~$595 million at ~~June 30, 2022,~~March 31, 2023, and ~~$644 million~~ at December 31, ~~2021.~~2022. 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 $12 million for Duke Energy and Duke Energy Carolinas as of ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021.~~2022. 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 ~~Progress and Duke Energy Florida~~

~~Spent Nuclear Fuel Matters~~

On June 18, 2018, Duke Energy Progress and Duke Energy Florida sued the U.S. in the U.S. Court of Federal Claims for damages incurred for the period 2014 through 2018. The lawsuit claimed the DOE breached a contract in failing to accept spent nuclear fuel under the Nuclear Waste Policy Act of 1982 and asserted damages for the cost of on-site storage in the amount of $100 million and $200 million for Duke Energy Progress and Duke Energy Florida, respectively.

On March 30, 2022, the DOE and Duke Energy Progress executed a settlement agreement, pursuant to which Duke Energy Progress will receive damages for costs incurred between 2014 and 2018, and will be able to submit future costs on a defined schedule. In April 2022, Duke Energy Progress received $87 million in proceeds that related to damages incurred in 2014 through 2018.

On May 2, 2022, the DOE and Duke Energy Florida executed a settlement agreement, pursuant to which Duke Energy Florida will receive damages for costs incurred between 2014 and 2018, and will be able to submit costs incurred in 2019 and 2020 pursuant to an audit process. In June 2022, Duke Energy Florida received $180 million in proceeds that related to damages incurred in 2014 through 2018.


~~FINANCIAL STATEMENTS~~			~~COMMITMENTS AND CONTINGENCIES~~

~~Duke Energy~~ Indiana

~~Coal Ash Basin Closure Plan Appeal~~

On January 27, 2020, Hoosier Environmental Council (HEC) filed a Petition for Administrative Review with the Indiana Office of Environmental Adjudication challenging the Indiana Department of Environmental Management’s (IDEM's) December 10, 2019, partial approval of Duke Energy Indiana’s ash pond closure plan at Duke Energy's Gallagher power station. After hearing oral arguments in early April 2021 on Duke Energy Indiana's and HEC's competing Motions for Summary Judgment, on May 4, 2021, the administrative court rejected all of HEC’s claims and issued a ruling in favor of Duke Energy Indiana. On June 3, 2021, HEC filed an appeal in Superior Court to seek judicial review of the order. On June 25, 2021, Duke Energy Indiana filed its response to the Petition to Review. On August 30, 2021, HEC served Duke Energy Indiana with its Brief in Support of Petition for Judicial Review. On October 29, 2021, Duke Energy Indiana and IDEM filed their response briefs. On December 13, 2021, HEC filed and served its Reply Brief.

On January 11, 2022, Duke Energy Indiana received a compliance obligation letter from the Environmental Protection Agency (EPA) notifying the company that the two basins at issue in the litigation are subject to requirements of the CCR Rule. The letter does not provide a deadline for compliance. Duke Energy Indiana is evaluating the EPA letter, its potential impacts on the litigation and the extent to which this letter could apply to CCR surface impoundments at its other Indiana sites.

Following the January 11, 2022 EPA notice of compliance letter, the parties filed a joint motion to stay the litigation for 45 days, which was approved by the court. As a result, the oral argument scheduled for February 1, 2022, was postponed. Duke Energy Indiana and HEC engaged in settlement discussions, but the parties were unable to reach resolution. On April 21, 2022, HEC filed a Motion to Lift Stay and Motion for Judicial Notice. HEC also requested that the court hold a hearing within 45 days and also take judicial notice of the EPA's January 11, 2022 letter. On April 22, 2022, Duke Energy Indiana sent IDEM a letter withdrawing the closure plans for the Gallagher North Ash Pond and Primary Pond Ash Fill. After acknowledgment by IDEM of withdrawal of these closure plans, Duke Energy Indiana filed a Motion to Dismiss the litigation as moot on April 28, 2022, which IDEM supported, and the court granted the Motion to Dismiss on July 8, 2022.

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. Duke Energy Indiana cannot predict the outcome of this matter.

Other Litigation and Legal Proceedings

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

5554


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

5.6. DEBT AND CREDIT FACILITIES

Debt related to the Commercial Renewables Disposal Groups is now classified as held for sale and is excluded from the following disclosures. See Note 2 for further information.

SUMMARY OF SIGNIFICANT DEBT ISSUANCES

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

Six Months Ended June 30, 2022
Duke Duke Duke
Maturity Interest Duke Energy Energy Energy
Issuance Date Date Rate Energy (Parent) Carolinas Progress Piedmont
Unsecured Debt
May 2022(a)
May 2052 5.050 % $ 400 $ — $ — $ — $ 400
June 2022(b)
June 2028 4.750 % 645 645 — — —
June 2022(b)
June 2034 5.306 % 537 537 — — —
First Mortgage Bonds
March 2022(c)
March 2032 2.850 % 500 — 500 — —
March 2022(c)
March 2052 3.550 % 650 — 650 — —
March 2022(c)
April 2032 3.400 % 500 — — 500 —
March 2022(c)
April 2052 4.000 % 400 — — 400 —
Tax-exempt Bonds
June 2022(d)
September 2030 4.000 % 168 168 — — —
June 2022(d)
November 2039 4.250 % 234 234 — — —
Total issuances $ 4,034 $ 1,584 $ 1,150 $ 900 $ 400


				Three Months Ended March 31, 2023
						Duke		Duke		Duke		Duke
	Maturity	Interest		Duke		Energy		Energy		Energy		Energy
Issuance Date	Date	Rate		Energy		Carolinas		Progress		Ohio		Indiana








First Mortgage Bonds




January 2023(a)	January 2033	4.95	%	$	900	$	900	$	—	$	—	$	—
January 2023(a)	January 2053	5.35	%	900		900		—		—		—
March 2023(b)	March 2033	5.25	%	500		—		500		—		—
March 2023(b)	March 2053	5.35	%	500		—		500		—		—
March 2023(c)	April 2033	5.25	%	375		—		—		375		—
March 2023(c)	April 2053	5.65	%	375		—		—		375		—
March 2023(d)	April 2053	5.40	%	500		—		—		—		500







Total issuances				$	4,050	$	1,800	$	1,000	$	750	$	500

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

(b)Proceeds will be used to repay $300 million of maturities due September 2023, to pay down a portion of ~~outstanding intercompany~~ short-term debt and for general ~~corporate purposes~~

~~(b)~~Duke Energy (Parent) issued 600 million euros aggregate principal amount of 3.10% senior notes due June 2028 and 500 million euros aggregate principal amount of 3.85% senior notes due June 2034. Proceeds will be used to repay a $500 million debt maturity, pay down short-term debt and for general corporatecompany purposes. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. See Note 8 for additional information.

(c)Proceeds will be used to ~~finance or refinance, in whole or in part, existing or new eligible projects under~~repay $300 million of maturities due September 2023 and a portion of the ~~sustainable financing framework.~~$100 million term loan due October 2023. Remaining proceeds will be used to repay a portion of short-term debt and for general corporate purposes.

(d)Proceeds were used to ~~refund~~repay the ~~Ohio Air Quality Development Revenue Refunding bonds, previously held in treasury, which were~~$300 million term loan due October 2023. Remaining proceeds will be used to ~~finance~~repay a portion of short-term debt and for general company purposes.

Duke Energy (Parent) Convertible Senior Notes

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

Prior to the close of business on the business day immediately preceding January 15, 2026, the convertible notes will be convertible at the option of the holders only under certain ~~solid waste disposal facilities. The mandatory purchase~~conditions. On or after January 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the convertible notes may convert all or any portion of their convertible notes at their option at any time at the conversion rate then in effect, irrespective of these ~~bonds is June 1, 2027.~~conditions. Duke Energy will settle conversions of the convertible notes by paying cash up to the aggregate principal amount of the convertible notes to be converted and paying or delivering, as the case may be, cash, shares of Duke Energy's common stock, $0.001 par value per share, or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the convertible notes being converted.

The conversion rate for the convertible notes will initially be 8.4131 shares of Duke Energy's common stock per $1,000 principal amount of convertible notes. The initial conversion price of the convertible notes represents a premium of approximately 25% over the last reported sale price of Duke Energy’s common stock on the NYSE on April 3, 2023. The conversion rate and the corresponding conversion price will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. Duke Energy may not redeem the convertible notes prior to the maturity date.

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


FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

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)	(in millions)	Maturity Date	Interest Rate		June 30, 2022		(in millions)	Maturity Date	Interest Rate		March 31, 2023
Unsecured Debt~~(a)~~	Unsecured Debt~~(a)~~						Unsecured Debt~~(a)~~
Duke Energy (Parent)	Duke Energy (Parent)	August 2022	2.400	%	500		Duke Energy (Parent)	April 2023	2.875	%	$	350
Duke Energy (Parent)(a)	Duke Energy (Parent)(a)	April 2023	2.875	%	350		Duke Energy (Parent)(a)	June 2023	4.631	%	500
Duke Energy (Parent)(b)		June 2023	1.938	%	500
Duke Energy (Parent)							Duke Energy (Parent)	October 2023	3.950	%	400
Duke Energy (Parent) Term Loan Facility(a)							Duke Energy (Parent) Term Loan Facility(a)	March 2024	5.385	%	1,000
Duke Energy Ohio(a)							Duke Energy Ohio(a)	October 2023	4.879	%	150

First Mortgage Bonds	First Mortgage Bonds						First Mortgage Bonds
Duke Energy Carolinas		March 2023	2.500	%	500
Duke Energy Carolinas		March 2023	3.050	%	500
Other(c)					821
Duke Energy Progress							Duke Energy Progress	September 2023	3.375	%	300
Duke Energy Ohio							Duke Energy Ohio	September 2023	3.800	%	300
Other(b)							Other(b)				330
Current maturities of long-term debt	Current maturities of long-term debt				$	3,171	Current maturities of long-term debt				$	3,330

(a)~~In May 2022, Duke Energy (Parent) early retired $500 million of unsecured debt with an original maturity date of August 2022.~~

~~(b)~~Debt has a floating interest rate.

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


~~FINANCIAL STATEMENTS~~			~~DEBT AND CREDIT FACILITIES~~

AVAILABLE CREDIT FACILITIES

Master Credit Facility

In March ~~2022,~~2023, Duke Energy amended its existing Master Credit Facility ~~to increase the amount~~ of ~~the facility from $8 billion to~~ $9 billion ~~and~~ to extend the termination date to March ~~2027.~~2028. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. An amendment in conjunction with the issuance of the Convertible Senior Notes due April 2026 clarifies that payments due as a result of a conversion of a convertible note would not constitute an event of default.

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


		June 30, 2022																	March 31, 2023
				Duke		Duke		Duke		Duke		Duke		Duke							Duke		Duke		Duke		Duke		Duke		Duke
		Duke		Energy		Energy		Energy		Energy		Energy		Energy					Duke		Energy		Energy		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		(Parent)		Carolinas		Progress		Florida		Ohio		Indiana		Piedmont
Facility size(a)	Facility size(a)	$	9,000	$	3,150	$	1,225	$	1,200	$	1,100	$	775	$	750	$	800	Facility size(a)	$	9,000	$	2,275	$	2,025	$	900	$	1,350	$	700	$	950	$	800
Reduction to backstop issuances	Reduction to backstop issuances																	Reduction to backstop issuances
Commercial paper(b)	Commercial paper(b)	(3,516)		(1,853)		(326)		(150)		(458)		(299)		(400)		(30)		Commercial paper(b)	(3,452)		(494)		(1,310)		(150)		(776)		(93)		(328)		(301)
Outstanding letters of credit	Outstanding letters of credit	(38)		(25)		(4)		(2)		(7)		—		—		—		Outstanding letters of credit	(39)		(27)		(4)		(1)		(7)		—		—		—
Tax-exempt bonds	Tax-exempt bonds	(81)		—		—		—		—		—		(81)		—		Tax-exempt bonds	(81)		—		—		—		—		—		(81)		—

Available capacity under the Master Credit Facility	Available capacity under the Master Credit Facility	$	5,365	$	1,272	$	895	$	1,048	$	635	$	476	$	269	$	770	Available capacity under the Master Credit Facility	$	5,428	$	1,754	$	711	$	749	$	567	$	607	$	541	$	499

(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.

Other Credit Facilities

Duke Energy (Parent) Term Loan Facility

OnIn March 9, 2022, Duke Energy (Parent) entered into a Term Loan Credit Agreement (Credit Agreement) with commitments totaling $1.4 billion maturing March 9, 2024. The maturity date of the Credit Agreement may be extended for up to two years by request of Duke Energy (Parent), upon satisfaction of certain conditions contained in the Credit Agreement. Borrowings under the facility were used to repay amounts drawn under the Three-Year Revolving Credit Facility and for general corporate purposes, including repayment of a portion of Duke Energy's outstanding commercial paper. The balance is classified as ~~Long-Term Debt~~Current maturities of long-term debt on Duke Energy's Condensed Consolidated Balance Sheets. ~~The Three-Year Revolving Credit Facility was terminated in March 2022.~~

~~Intercompany Credit Agreements~~

In March ~~2022, Progress Energy closed a revolving credit agreement with~~2023, Duke Energy ~~(Parent), which allowed up~~amended its existing Credit Agreement in conjunction with the issuance of the Convertible Senior Notes due April 2026 to ~~$2.5 billion in intercompany borrowings.~~

~~6. GOODWILL~~

~~Duke Energy~~

~~The following table presents the goodwill by reportable segment included on Duke Energy's Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021.~~

Electric Utilities Gas Utilities Commercial
(in millions) and Infrastructure and Infrastructure Renewables Total
Goodwill balance $ 17,379 $ 1,924 $ 122 $ 19,425
Accumulated impairment charges — — (122) (122)
Goodwill, adjusted for accumulated impairment charges $ 17,379 $ 1,924 $ — $ 19,303

~~Duke Energy Ohio~~

~~Duke Energy Ohio's Goodwill balance~~clarify that payments due as a result of ~~$920 million, allocated $596 million to Electric Utilities and Infrastructure and $324 million to Gas Utilities and Infrastructure, is presented net~~a conversion of ~~accumulated impairment charges~~a convertible note would not constitute an event of ~~$216 million on the Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021.~~

~~Progress Energy~~

~~Progress Energy's Goodwill is included in the Electric Utilities and Infrastructure segment and there are no accumulated impairment charges.~~default.

5756


FINANCIAL STATEMENTS			GOODWILL

7. 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 March 31, 2023, and December 31, 2022. There are no accumulated impairment charges.

Duke Energy Ohio

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

Progress Energy

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

Piedmont

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

7.8. 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. Material amounts related to 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,					Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Duke Energy Carolinas	Duke Energy Carolinas									Duke Energy Carolinas
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	191	$	243	$	397	$	446	Corporate governance and shared service expenses(a)		$	196	$	206
Indemnification coverages(b)	Indemnification coverages(b)	7		6		14		12		Indemnification coverages(b)		9		7
Joint Dispatch Agreement (JDA) revenue(c)	Joint Dispatch Agreement (JDA) revenue(c)	12		13		38		26		Joint Dispatch Agreement (JDA) revenue(c)		13		26
JDA expense(c)	JDA expense(c)	173		25		267		65		JDA expense(c)		29		94
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	5		15		9		29		Intercompany natural gas purchases(d)		5		13
Progress Energy	Progress Energy									Progress Energy
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	184	$	233	$	380	$	414	Corporate governance and shared service expenses(a)		$	178	$	196
Indemnification coverages(b)	Indemnification coverages(b)	11		11		22		21		Indemnification coverages(b)		12		11
JDA revenue(c)	JDA revenue(c)	173		25		267		65		JDA revenue(c)		29		94
JDA expense(c)	JDA expense(c)	12		13		38		26		JDA expense(c)		13		26
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	19		18		38		37		Intercompany natural gas purchases(d)		19		19
Duke Energy Progress	Duke Energy Progress									Duke Energy Progress
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	108	$	141	$	227	$	246	Corporate governance and shared service expenses(a)		$	107	$	119
Indemnification coverages(b)	Indemnification coverages(b)	5		5		10		10		Indemnification coverages(b)		5		5
JDA revenue(c)	JDA revenue(c)	173		25		267		65		JDA revenue(c)		29		94
JDA expense(c)	JDA expense(c)	12		13		38		26		JDA expense(c)		13		26
Intercompany natural gas purchases(d)	Intercompany natural gas purchases(d)	19		18		38		37		Intercompany natural gas purchases(d)		19		19
Duke Energy Florida	Duke Energy Florida									Duke Energy Florida
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	76	$	92	$	153	$	168	Corporate governance and shared service expenses(a)		$	71	$	77
Indemnification coverages(b)	Indemnification coverages(b)	6		6		12		11		Indemnification coverages(b)		7		6
Duke Energy Ohio	Duke Energy Ohio									Duke Energy Ohio
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	82	$	79	$	164	$	158	Corporate governance and shared service expenses(a)		$	73	$	82
Indemnification coverages(b)	Indemnification coverages(b)	1		1		2		2		Indemnification coverages(b)		1		1
Duke Energy Indiana	Duke Energy Indiana									Duke Energy Indiana
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	91	$	93	$	215	$	206	Corporate governance and shared service expenses(a)		$	99	$	124
Indemnification coverages(b)	Indemnification coverages(b)	2		2		4		4		Indemnification coverages(b)		2		2
Piedmont	Piedmont									Piedmont
Corporate governance and shared service expenses(a)	Corporate governance and shared service expenses(a)	$	37	$	36	$	72	$	69	Corporate governance and shared service expenses(a)		$	38	$	35
Indemnification coverages(b)	Indemnification coverages(b)	2		1		3		2		Indemnification coverages(b)		1		1
Intercompany natural gas sales(d)	Intercompany natural gas sales(d)	24		33		47		66		Intercompany natural gas sales(d)		24		32
Natural gas storage and transportation costs(e)	Natural gas storage and transportation costs(e)	5		5		11		11		Natural gas storage and transportation costs(e)		6		6


FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

(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 ~~11,~~12, certain trade receivables have been sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but do include a subordinated note from CRC for a portion of the purchase price.

Intercompany Income Taxes

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


		Duke				Duke											Duke				Duke
		Energy		Progress		Energy											Energy		Progress		Energy
(in millions)	(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
June 30, 2022
March 31, 2023																March 31, 2023
Intercompany income tax receivable	Intercompany income tax receivable	$	17	$	—	$	—	$	—	$	2	$	—	$	19	Intercompany income tax receivable	$	—	$	21	$	—	$	—	$	—	$	—	$	—
Intercompany income tax payable	Intercompany income tax payable	—		22		29		54		—		17		—		Intercompany income tax payable	—		—		2		30		15		24		38

December 31, 2021
December 31, 2022																December 31, 2022
Intercompany income tax receivable	Intercompany income tax receivable	$	—	$	—	$	—	$	40	$	19	$	—	$	—	Intercompany income tax receivable	$	—	$	95	$	36	$	17	$	—	$	—	$	—
Intercompany income tax payable	Intercompany income tax payable	62		—		84		—		—		10		27		Intercompany income tax payable	37		—		—		—		17		18		38

8.9. 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. Derivatives related to interest rate risk for the Commercial Renewables Disposal Groups are now classified as held for sale and are excluded from the following disclosures. See Note 2 for further information.

All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities onon 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.


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

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 ~~loss~~income (loss) for the three ~~and six~~ months ended ~~June 30,~~March 31, 2023, and 2022, ~~and 2021,~~ were not material. Duke Energy's interest rate derivatives designated as hedges include ~~interest rate swaps used to hedge existing debt within the Commercial Renewables segment and~~ 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 ~~table shows~~tables show notional amounts of outstanding derivatives related to interest rate risk.


		June 30, 2022				March 31, 2023
				Duke			Duke		Duke					Duke				Duke		Duke		Duke		Duke
		Duke		Energy			Energy		Energy			Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas			Indiana		Ohio		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana		Ohio
Cash flow hedges	Cash flow hedges	$	2,877	$	—		$	—	$	—	Cash flow hedges	$	1,300	$	—	$	—	$	—	$	—	$	—	$	—
Undesignated contracts	Undesignated contracts	577		250			300		27		Undesignated contracts	2,077		800		1,050		250		800		200		27
Total notional amount~~(a)~~	Total notional amount~~(a)~~	$	3,454	$	250		$	300	$	27	Total notional amount~~(a)~~	$	3,377	$	800	$	1,050	$	250	$	800	$	200	$	27

December 31, 2021
Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Indiana Ohio
Cash flow hedges $ 2,415 $ — $ — $ — $ — $ —
Undesignated contracts 1,177 350 500 500 300 27
Total notional amount(a)
$ 3,592 $ 350 $ 500 $ 500 $ 300 $ 27

~~(a)Duke Energy includes amounts related to consolidated VIEs of $627 million and $665 million in cash flow hedges as of June 30, 2022, and December 31, 2021, respectively.~~


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

COMMODITY PRICE RISK

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

~~Cash Flow Hedges~~

For derivatives designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, 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. Gains and losses reclassified out of accumulated other comprehensive loss for the three and six months ended June 30, 2022, and 2021, were not material. Duke Energy’s commodity derivatives designated as hedges include long-term electricity sales in the Commercial Renewables segment.

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 ~~costs~~cost volatility for customers.

~~Duke Energy’s undesignated contracts include long-term electricity sales in the Commercial Renewables segment.~~

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, 2022						March 31, 2023
			Duke		Duke	Duke	Duke					Duke		Duke	Duke	Duke
		Duke	Energy	Progress	Energy	Energy	Energy				Duke	Energy	Progress	Energy	Energy	Energy
		Energy	Carolinas	Energy	Progress	Ohio	Indiana		Piedmont		Energy	Carolinas	Energy	Progress	Ohio	Indiana	Piedmont
Electricity (GWh)~~(a)~~	Electricity (GWh)~~(a)~~	39,032	—	—	—	4,002	24,241		—	Electricity (GWh)~~(a)~~	5,984	—	—	—	720	5,264	—
Natural gas (millions of dekatherms)	Natural gas (millions of dekatherms)	873	283	259	259	—	13		318	Natural gas (millions of dekatherms)	903	311	294	294	—	8	290

6059


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

December 31, 2021
Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy
Energy Carolinas Energy Progress Ohio Indiana Piedmont
Electricity (GWh)(a)
22,344 — — — 1,681 10,688 —
Natural gas (millions of dekatherms) 823 264 215 215 — 8 336

~~(a)Duke Energy includes 4,477 GWh and 9,975 GWh related to cash flow hedges as of June 30, 2022, and December 31, 2021, respectively.~~


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

FOREIGN CURRENCY RISK

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

Fair Value Hedges

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

The following table shows Duke Energy's outstanding derivatives related to foreign currency ~~risk. There were no fair value hedges in 2021.~~risk at March 31, 2023.


		June 30, 2022
						Receive					Fair Value												Fair Value Gain (Loss)(a)
		Pay Notional				Notional		Receive		Hedge	Gain (Loss)(a)			Pay Notional				Receive Notional		Receive		Hedge	(in millions)
		(in millions)		Pay Rate		(in millions)		Rate		Maturity Date	(in millions)			(in millions)		Pay Rate		(in millions)		Rate		Maturity Date	Three months ended March 31, 2023
Fair value hedges	Fair value hedges												Fair value hedges
		$	645	4.75	%	600	euros	3.10	%	June 2028	$	(16)		$	645	4.75	%	600	euros	3.10	%	June 2028	$	5
		537		5.31	%	500	euros	3.85	%	June 2034	(13)			537		5.31	%	500	euros	3.85	%	June 2034	5
Total notional amount	Total notional amount	$	1,182			1,100	euros				$	(29)	Total notional amount	$	1,182			1,100	euros				$	10

(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.


~~FINANCIAL STATEMENTS~~			~~DERIVATIVES AND HEDGING~~

LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED ONIN THE CONDENSED 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, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current $ 571 $ 268 $ 203 $ 203 $ — $ 5 $ 86 $ —
Noncurrent 350 186 165 165 — — — —
Total Derivative Assets – Commodity Contracts $ 921 $ 454 $ 368 $ 368 $ — $ 5 $ 86 $ —
Interest Rate Contracts
Designated as Hedging Instruments
Current $ 242 $ — $ — $ — $ — $ — $ — $ —
Noncurrent 88 — — — — — — —
Not Designated as Hedging Instruments
Current 55 — — — — — 55 —
Noncurrent 30 30 — — — — — —
Total Derivative Assets – Interest Rate Contracts $ 415 $ 30 $ — $ — $ — $ — $ 55 $ —
Total Derivative Assets $ 1,336 $ 484 $ 368 $ 368 $ — $ 5 $ 141 $ —


Derivative Liabilities		June 30, 2022
Derivative Assets																		Derivative Assets	March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts	Commodity Contracts																	Commodity Contracts
Designated as Hedging Instruments
Current		$	35	$	—	$	—	$	—	$	—	$	—	$	—	—
Noncurrent		114		—		—		—		—		—		—		—

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments																	Not Designated as Hedging Instruments
Current	Current	135		32		33		1		33		—		21		25		Current	$	35	$	12	$	9	$	9	$	—	$	1	$	11	$	1
Noncurrent	Noncurrent	259		9		10		10		—		—		—		168		Noncurrent	140		67		73		73		—		—		—		—
Total Derivative Liabilities – Commodity Contracts		$	543	$	41	$	43	$	11	$	33	$	—	$	21	$	193
Total Derivative Assets – Commodity Contracts																		Total Derivative Assets – Commodity Contracts	$	175	$	79	$	82	$	82	$	—	$	1	$	11	$	1
Interest Rate Contracts	Interest Rate Contracts																	Interest Rate Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments																	Designated as Hedging Instruments
Current	Current	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Current	$	86	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		2		—		—		—		—		—		—		—

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments																	Not Designated as Hedging Instruments
Current	Current	1		—		—		—		—		1		—		—		Current	7		1		6		—		6		—		—		—
Noncurrent		2		—		—		—		—		2		—		—
Total Derivative Liabilities – Interest Rate Contracts		$	6	$	—	$	—	$	—	$	—	$	3	$	—	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current		$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		26		—		—		—		—		—		—		—

Total Derivative Assets – Interest Rate Contracts																		Total Derivative Assets – Interest Rate Contracts	$	93	$	1	$	6	$	—	$	6	$	—	$	—	$	—

Total Derivative Liabilities – Foreign Currency Contracts		$	44	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities		$	593	$	41	$	43	$	11	$	33	$	3	$	21	$	193

Total Derivative Assets																		Total Derivative Assets	$	268	$	80	$	88	$	82	$	6	$	1	$	11	$	1

6260


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Assets		December 31, 2021
Derivative Liabilities																		Derivative Liabilities	March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts	Commodity Contracts																	Commodity Contracts

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments																	Not Designated as Hedging Instruments
Current	Current	$	199	$	99	$	72	$	72	$	—	$	2	$	23	$	3	Current	$	264	$	143	$	90	$	90	$	—	$	—	$	19	$	12
Noncurrent	Noncurrent	113		63		50		50		—		—		—		—		Noncurrent	237		54		51		51		—		—		—		132
Total Derivative Assets – Commodity Contracts		$	312	$	162	$	122	$	122	$	—	$	2	$	23	$	3
Total Derivative Liabilities – Commodity Contracts																		Total Derivative Liabilities – Commodity Contracts	$	501	$	197	$	141	$	141	$	—	$	—	$	19	$	144
Interest Rate Contracts	Interest Rate Contracts																	Interest Rate Contracts
Designated as Hedging Instruments																		Designated as Hedging Instruments

Noncurrent																		Noncurrent	14		—		—		—		—		—		—		—
Not Designated as Hedging Instruments																		Not Designated as Hedging Instruments

Noncurrent																		Noncurrent	26		4		12		8		3		1		9		—
Total Derivative Liabilities – Interest Rate Contracts																		Total Derivative Liabilities – Interest Rate Contracts	$	40	$	4	$	12	$	8	$	3	$	1	$	9	$	—
Foreign Currency Contracts																		Foreign Currency Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments																	Designated as Hedging Instruments
Current	Current	$	3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Current	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	Noncurrent	3		—		—		—		—		—		—		—		Noncurrent	44		—		—		—		—		—		—		—
Not Designated as Hedging Instruments
Current		2		—		2		2		—		—		—		—

Total Derivative Assets – Interest Rate Contracts		$	8	$	—	$	2	$	2	$	—	$	—	$	—	$	—

Total Derivative Assets		$	320	$	162	$	124	$	124	$	—	$	2	$	23	$	3
Total Derivative Liabilities – Foreign Currency Contracts																		Total Derivative Liabilities – Foreign Currency Contracts	$	62	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities																		Total Derivative Liabilities	$	603	$	201	$	153	$	149	$	3	$	1	$	28	$	144


Derivative Liabilities		December 31, 2021
Derivative Assets																		Derivative Assets	December 31, 2022
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts	Commodity Contracts																	Commodity Contracts
Designated as Hedging Instruments
Current		$	27	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		117		—		—		—		—		—		—		—

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments																	Not Designated as Hedging Instruments
Current	Current	72		18		19		5		14		—		13		21		Current	$	265	$	132	$	99	$	99	$	—	$	5	$	29	$	—
Noncurrent	Noncurrent	132		9		5		5		—		—		—		118		Noncurrent	213		104		108		108		—		—		—		—
Total Derivative Liabilities – Commodity Contracts		$	348	$	27	$	24	$	10	$	14	$	—	$	13	$	139
Total Derivative Assets – Commodity Contracts																		Total Derivative Assets – Commodity Contracts	$	478	$	236	$	207	$	207	$	—	$	5	$	29	$	—
Interest Rate Contracts	Interest Rate Contracts																	Interest Rate Contracts
Designated as Hedging Instruments	Designated as Hedging Instruments																	Designated as Hedging Instruments
Current	Current	$	75	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Current	$	101	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent		21		—		—		—		—		—		—		—

Not Designated as Hedging Instruments	Not Designated as Hedging Instruments																	Not Designated as Hedging Instruments
Current	Current	10		8		—		—		—		1		—		—		Current	$	216	$	94	$	41	$	23	$	17	$	—	$	81	$	—
Noncurrent		18		—		—		—		—		4		14		—
Total Derivative Liabilities – Interest Rate Contracts		$	124	$	8	$	—	$	—	$	—	$	5	$	14	$	—

Total Derivative Assets – Interest Rate Contracts																		Total Derivative Assets – Interest Rate Contracts	$	317	$	94	$	41	$	23	$	17	$	—	$	81	$	—

Total Derivative Liabilities		$	472	$	35	$	24	$	10	$	14	$	5	$	27	$	139
Total Derivative Assets																		Total Derivative Assets	$	795	$	330	$	248	$	230	$	17	$	5	$	110	$	—

6361


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Commodity Contracts



Not Designated as Hedging Instruments
Current	$	175	$	96	$	36	$	18	$	19	$	—	$	16	$	27
Noncurrent	202		31		30		30		—		—		—		141
Total Derivative Liabilities – Commodity Contracts	$	377	$	127	$	66	$	48	$	19	$	—	$	16	$	168
Interest Rate Contracts



Not Designated as Hedging Instruments

Noncurrent	$	2	$	—	$	—	$	—	$	—	$	2	$	—	$	—
Total Derivative Liabilities – Interest Rate Contracts	$	2	$	—	$	—	$	—	$	—	$	2	$	—	$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Noncurrent	40		—		—		—		—		—		—		—



Total Derivative Liabilities – Equity Securities Contracts	$	58	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Derivative Liabilities	$	437	$	127	$	66	$	48	$	19	$	2	$	16	$	168

OFFSETTING ASSETS AND LIABILITIES

The following tables present the line items on the 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 gross amounts offset in the tables below show the effect of these netting arrangements on financial position and include ~~cash~~ collateral posted to offset the net position. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable ~~and letters of credit~~ 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, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Current
Gross amounts recognized $ 868 $ 268 $ 203 $ 203 $ — $ 5 $ 141 $ —
Gross amounts offset (331) (193) (137) (137) — — — —
Net amounts presented in Current Assets: Other $ 537 $ 75 $ 66 $ 66 $ — $ 5 $ 141 $ —
Noncurrent
Gross amounts recognized $ 468 $ 216 $ 165 $ 165 $ — $ — $ — $ —
Gross amounts offset (242) (125) (117) (117) — — — —
Net amounts presented in Other Noncurrent Assets: Other $ 226 $ 91 $ 48 $ 48 $ — $ — $ — $ —

Derivative Liabilities June 30, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Current
Gross amounts recognized $ 190 $ 32 $ 33 $ 1 $ 33 $ 1 $ 21 $ 25
Gross amounts offset (19) (1) (1) (1) — — (17) —
Net amounts presented in Current Liabilities: Other $ 171 $ 31 $ 32 $ — $ 33 $ 1 $ 4 $ 25
Noncurrent
Gross amounts recognized $ 403 $ 9 $ 10 $ 10 $ — $ 2 $ — $ 168
Gross amounts offset (19) (9) (10) (10) — — — —
Net amounts presented in Other Noncurrent Liabilities: Other $ 384 $ — $ — $ — $ — $ 2 $ — $ 168


Derivative Assets	Derivative Assets	December 31, 2021																Derivative Assets	March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current	Current																	Current
Gross amounts recognized	Gross amounts recognized	$	204	$	99	$	74	$	74	$	—	$	2	$	23	$	3	Gross amounts recognized	$	128	$	13	$	15	$	9	$	6	$	1	$	11	$	1
Gross amounts offset	Gross amounts offset	(25)		(16)		(9)		(9)		—		—		—		—		Gross amounts offset	(19)		(11)		(8)		(8)		—		—		—		—
Net amounts presented in Current Assets: Other	Net amounts presented in Current Assets: Other	$	179	$	83	$	65	$	65	$	—	$	2	$	23	$	3	Net amounts presented in Current Assets: Other	$	109	$	2	$	7	$	1	$	6	$	1	$	11	$	1
Noncurrent	Noncurrent																	Noncurrent
Gross amounts recognized	Gross amounts recognized	$	116	$	63	$	50	$	50	$	—	$	—	$	—	$	—	Gross amounts recognized	$	140	$	67	$	73	$	73	$	—	$	—	$	—	$	—
Gross amounts offset	Gross amounts offset	(23)		(15)		(8)		(8)		—		—		—		—		Gross amounts offset	(78)		(38)		(40)		(40)		—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	Net amounts presented in Other Noncurrent Assets: Other	$	93	$	48	$	42	$	42	$	—	$	—	$	—	$	—	Net amounts presented in Other Noncurrent Assets: Other	$	62	$	29	$	33	$	33	$	—	$	—	$	—	$	—

6462


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


Derivative Liabilities	Derivative Liabilities	December 31, 2021																Derivative Liabilities	March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current	Current																	Current
Gross amounts recognized	Gross amounts recognized	$	184	$	26	$	19	$	5	$	14	$	1	$	13	$	21	Gross amounts recognized	$	282	$	143	$	90	$	90	$	—	$	—	$	19	$	12
Gross amounts offset	Gross amounts offset	(11)		(6)		(5)		(5)		—		—		—		—		Gross amounts offset	(47)		(20)		(8)		(8)		—		—		(19)		—
Net amounts presented in Current Liabilities: Other	Net amounts presented in Current Liabilities: Other	$	173	$	20	$	14	$	—	$	14	$	1	$	13	$	21	Net amounts presented in Current Liabilities: Other	$	235	$	123	$	82	$	82	$	—	$	—	$	—	$	12
Noncurrent	Noncurrent																	Noncurrent
Gross amounts recognized	Gross amounts recognized	$	288	$	9	$	5	$	5	$	—	$	4	$	14	$	118	Gross amounts recognized	$	321	$	58	$	63	$	59	$	3	$	1	$	9	$	132
Gross amounts offset	Gross amounts offset	(12)		(8)		(5)		(5)		—		—		—		—		Gross amounts offset	(83)		(43)		(40)		(40)		—		—		—		—
Net amounts presented in Other Noncurrent Liabilities: Other	Net amounts presented in Other Noncurrent Liabilities: Other	$	276	$	1	$	—	$	—	$	—	$	4	$	14	$	118	Net amounts presented in Other Noncurrent Liabilities: Other	$	238	$	15	$	23	$	19	$	3	$	1	$	9	$	132


Derivative Assets	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	582	$	226	$	140	$	122	$	17	$	5	$	110	$	—
Gross amounts offset	(64)		(33)		(30)		(30)		—		—		—		—
Net amounts presented in Current Assets: Other	$	518	$	193	$	110	$	92	$	17	$	5	$	110	$	—
Noncurrent
Gross amounts recognized	$	213	$	104	$	108	$	108	$	—	$	—	$	—	$	—
Gross amounts offset	(97)		(40)		(57)		(57)		—		—		—		—
Net amounts presented in Other Noncurrent Assets: Other	$	116	$	64	$	51	$	51	$	—	$	—	$	—	$	—


Derivative Liabilities	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Current
Gross amounts recognized	$	193	$	96	$	36	$	18	$	19	$	—	$	16	$	27
Gross amounts offset	(49)		(15)		(18)		(18)		—		—		(16)		—
Net amounts presented in Current Liabilities: Other	$	144	$	81	$	18	$	—	$	19	$	—	$	—	$	27
Noncurrent
Gross amounts recognized	$	244	$	31	$	30	$	30	$	—	$	2	$	—	$	141
Gross amounts offset	(59)		(29)		(30)		(30)		—		—		—		—
Net amounts presented in Other Noncurrent Liabilities: Other	$	185	$	2	$	—	$	—	$	—	$	2	$	—	$	141

OBJECTIVE CREDIT CONTINGENT FEATURES

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


	March 31, 2023
			Duke				Duke
	Duke		Energy		Progress		Energy
(in millions)	Energy		Carolinas		Energy		Progress
Aggregate fair value of derivatives in a net liability position	$	106	$	54	$	52	$	52
Fair value of collateral already posted	10		10		—		—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered	$	96	$	44	$	52	$	52


FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING


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

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

9.10. 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, 2022,~~March 31, 2023, and December 31, ~~2021.~~2022.

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

6564


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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF	NDTF													NDTF
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	134	$	—	$	—	$	160	Cash and cash equivalents	$	—	$	—	$	161	$	—	$	—	$	215
Equity securities	Equity securities	3,500		141		5,751		4,905		43		7,350		Equity securities	4,048		60		6,367		3,658		105		5,871
Corporate debt securities	Corporate debt securities	—		81		728		39		6		829		Corporate debt securities	3		65		616		1		85		641
Municipal bonds	Municipal bonds	—		32		334		14		1		314		Municipal bonds	1		27		337		—		39		330
U.S. government bonds	U.S. government bonds	2		89		1,462		31		12		1,568		U.S. government bonds	9		85		1,495		2		112		1,423

Other debt securities	Other debt securities	—		14		170		3		1		180		Other debt securities	—		15		147		—		18		156
Total NDTF Investments	Total NDTF Investments	$	3,502	$	357	$	8,579	$	4,992	$	63	$	10,401	Total NDTF Investments	$	4,061	$	252	$	9,123	$	3,661	$	359	$	8,636
Other Investments	Other Investments													Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	51	$	—	$	—	$	36	Cash and cash equivalents	$	—	$	—	$	134	$	—	$	—	$	22
Equity securities	Equity securities	20		17		124		36		—		156		Equity securities	25		11		137		21		16		128
Corporate debt securities	Corporate debt securities	—		13		108		2		1		119		Corporate debt securities	—		10		87		—		12		84
Municipal bonds	Municipal bonds	—		3		82		3		1		80		Municipal bonds	—		2		80		—		3		78
U.S. government bonds	U.S. government bonds	—		5		49		—		—		56		U.S. government bonds	—		—		69		—		2		62
Other debt securities	Other debt securities	—		2		35		—		1		45		Other debt securities	—		2		42		—		3		41
Total Other Investments	Total Other Investments	$	20	$	40	$	449	$	41	$	3	$	492	Total Other Investments	$	25	$	25	$	549	$	21	$	36	$	415
Total Investments	Total Investments	$	3,522	$	397	$	9,028	$	5,033	$	66	$	10,893	Total Investments	$	4,086	$	277	$	9,672	$	3,682	$	395	$	9,051

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,~~March 31, 2023, and 2022, ~~and 2021,~~ were as follows.


		Three Months Ended				Six Months Ended					Three Months Ended
(in millions)	(in millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		(in millions)		March 31, 2023		March 31, 2022
FV-NI:	FV-NI:									FV-NI:
Realized gains	Realized gains	$	34	$	146	$	145	$	286	Realized gains		$	26	$	111
Realized losses	Realized losses	101		37		186		60		Realized losses		46		85
AFS:	AFS:									AFS:
Realized gains	Realized gains	11		16		15		34		Realized gains		8		4
Realized losses	Realized losses	42		18		65		31		Realized losses		32		23

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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF	NDTF													NDTF
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	58	$	—	$	—	$	53	Cash and cash equivalents	$	—	$	—	$	69	$	—	$	—	$	117
Equity securities	Equity securities	2,058		69		3,327		2,887		19		4,265		Equity securities	2,375		29		3,677		2,147		51		3,367
Corporate debt securities	Corporate debt securities	—		63		470		24		4		506		Corporate debt securities	2		47		384		1		62		401
Municipal bonds	Municipal bonds	—		9		63		2		—		48		Municipal bonds	—		5		56		—		10		64
U.S. government bonds	U.S. government bonds	1		37		645		16		3		712		U.S. government bonds	5		38		746		1		51		685
Other debt securities	Other debt securities	—		13		165		3		1		175		Other debt securities	—		15		143		—		18		148
Total NDTF Investments	Total NDTF Investments	$	2,059	$	191	$	4,728	$	2,932	$	27	$	5,759	Total NDTF Investments	$	2,382	$	134	$	5,075	$	2,149	$	192	$	4,782

6665


FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES


		Three Months Ended				Six Months Ended					Three Months Ended
(in millions)	(in millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		(in millions)		March 31, 2023		March 31, 2022
FV-NI:	FV-NI:									FV-NI:
Realized gains	Realized gains	$	18	$	90	$	93	$	218	Realized gains		$	18	$	75
Realized losses	Realized losses	55		23		104		39		Realized losses		29		49
AFS:	AFS:									AFS:
Realized gains	Realized gains	9		12		12		25		Realized gains		5		3
Realized losses	Realized losses	21		13		37		22		Realized losses		20		16

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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF	NDTF													NDTF
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	76	$	—	$	—	$	107	Cash and cash equivalents	$	—	$	—	$	92	$	—	$	—	$	98
Equity securities	Equity securities	1,442		72		2,424		2,018		24		3,085		Equity securities	1,673		31		2,690		1,511		54		2,504
Corporate debt securities	Corporate debt securities	—		18		258		15		2		323		Corporate debt securities	1		18		232		—		23		240
Municipal bonds	Municipal bonds	—		23		271		12		1		266		Municipal bonds	1		22		281		—		29		266
U.S. government bonds	U.S. government bonds	1		52		817		15		9		856		U.S. government bonds	4		47		749		1		61		738

Other debt securities	Other debt securities	—		1		5		—		—		5		Other debt securities	—		—		4		—		—		8
Total NDTF Investments	Total NDTF Investments	$	1,443	$	166	$	3,851	$	2,060	$	36	$	4,642	Total NDTF Investments	$	1,679	$	118	$	4,048	$	1,512	$	167	$	3,854
Other Investments	Other Investments													Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	15	$	—	$	—	$	20	Cash and cash equivalents	$	—	$	—	$	8	$	—	$	—	$	11

Municipal bonds	Municipal bonds	—		—		25		2		—		26		Municipal bonds	—		—		25		—		—		25
Total Other Investments	Total Other Investments	$	—	$	—	$	40	$	2	$	—	$	46	Total Other Investments	$	—	$	—	$	33	$	—	$	—	$	36
Total Investments	Total Investments	$	1,443	$	166	$	3,891	$	2,062	$	36	$	4,688	Total Investments	$	1,679	$	118	$	4,081	$	1,512	$	167	$	3,890


		Three Months Ended				Six Months Ended					Three Months Ended
(in millions)	(in millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		(in millions)		March 31, 2023		March 31, 2022
FV-NI:	FV-NI:									FV-NI:
Realized gains	Realized gains	$	16	$	56	$	52	$	68	Realized gains		$	8	$	36
Realized losses	Realized losses	46		14		82		21		Realized losses		17		36
AFS:	AFS:									AFS:
Realized gains	Realized gains	2		3		3		7		Realized gains		3		1
Realized losses	Realized losses	17		3		23		6		Realized losses		12		6

6766


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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF	NDTF													NDTF
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	46	$	—	$	—	$	94	Cash and cash equivalents	$	—	$	—	$	72	$	—	$	—	$	56
Equity securities	Equity securities	1,363		72		2,333		1,915		23		2,970		Equity securities	1,586		31		2,590		1,431		54		2,411
Corporate debt securities	Corporate debt securities	—		17		241		15		2		282		Corporate debt securities	1		17		222		—		22		230
Municipal bonds	Municipal bonds	—		23		271		12		1		266		Municipal bonds	1		22		281		—		29		266
U.S. government bonds	U.S. government bonds	1		31		477		15		3		472		U.S. government bonds	4		28		470		1		37		460
Other debt securities	Other debt securities	—		1		5		—		—		5		Other debt securities	—		—		4		—		—		7
Total NDTF Investments	Total NDTF Investments	$	1,364	$	144	$	3,373	$	1,957	$	29	$	4,089	Total NDTF Investments	$	1,592	$	98	$	3,639	$	1,432	$	142	$	3,430
Other Investments	Other Investments													Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	12	$	—	$	—	$	16	Cash and cash equivalents	$	—	$	—	$	7	$	—	$	—	$	9
Total Other Investments	Total Other Investments	$	—	$	—	$	12	$	—	$	—	$	16	Total Other Investments	$	—	$	—	$	7	$	—	$	—	$	9
Total Investments	Total Investments	$	1,364	$	144	$	3,385	$	1,957	$	29	$	4,105	Total Investments	$	1,592	$	98	$	3,646	$	1,432	$	142	$	3,439


		Three Months Ended				Six Months Ended					Three Months Ended
(in millions)	(in millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		(in millions)		March 31, 2023		March 31, 2022
FV-NI:	FV-NI:									FV-NI:
Realized gains	Realized gains	$	15	$	55	$	51	$	67	Realized gains		$	8	$	36
Realized losses	Realized losses	45		13		80		20		Realized losses		17		35
AFS:	AFS:									AFS:
Realized gains	Realized gains	2		3		3		7		Realized gains		3		1
Realized losses	Realized losses	15		3		20		6		Realized losses		12		5

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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF	NDTF													NDTF
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	30	$	—	$	—	$	13	Cash and cash equivalents	$	—	$	—	$	20	$	—	$	—	$	42
Equity securities	Equity securities	79		—		91		103		1		115		Equity securities	87		—		100		80		—		93
Corporate debt securities	Corporate debt securities	—		1		17		—		—		41		Corporate debt securities	—		1		10		—		1		10

U.S. government bonds	U.S. government bonds	—		21		340		—		6		384		U.S. government bonds	—		19		279		—		24		278

Other debt securities														Other debt securities	—		—		—		—		—		1
Total NDTF Investments(a)	Total NDTF Investments(a)	$	79	$	22	$	478	$	103	$	7	$	553	Total NDTF Investments(a)	$	87	$	20	$	409	$	80	$	25	$	424
Other Investments	Other Investments													Other Investments
Cash and cash equivalents	Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	3	Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—	$	1

Municipal bonds	Municipal bonds	—		—		25		2		—		26		Municipal bonds	—		—		25		—		—		25
Total Other Investments	Total Other Investments	$	—	$	—	$	26	$	2	$	—	$	29	Total Other Investments	$	—	$	—	$	25	$	—	$	—	$	26
Total Investments	Total Investments	$	79	$	22	$	504	$	105	$	7	$	582	Total Investments	$	87	$	20	$	434	$	80	$	25	$	450

(a)During the ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, and the year ended December 31, ~~2021,~~2022, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.

6867


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, 2022						December 31, 2021							March 31, 2023						December 31, 2022
		Gross		Gross				Gross		Gross					Gross		Gross				Gross		Gross
		Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated			Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
		Holding		Holding		Fair		Holding		Holding		Fair			Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	(in millions)	Gains		Losses		Value		Gains		Losses		Value		(in millions)	Gains		Losses		Value		Gains		Losses		Value
Investments	Investments													Investments

Cash and cash equivalents														Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	1
Equity securities	Equity securities	$	2	$	17	$	77	$	6	$	—	$	97	Equity securities	3		11		85		2		16		79
Corporate debt securities	Corporate debt securities	—		—		8		—		—		6		Corporate debt securities	—		—		9		—		1		8
Municipal bonds	Municipal bonds	—		3		48		1		1		46		Municipal bonds	—		2		46		—		3		45
U.S. government bonds	U.S. government bonds	—		—		5		—		—		12		U.S. government bonds	—		—		9		—		—		7

Total Investments	Total Investments	$	2	$	20	$	138	$	7	$	1	$	161	Total Investments	$	3	$	13	$	150	$	2	$	20	$	140

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.


		June 30, 2022													March 31, 2023
				Duke				Duke		Duke		Duke					Duke				Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy			Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	Due in one year or less	$	137	$	7	$	118	$	24	$	94	$	9	Due in one year or less	$	115	$	5	$	96	$	19	$	77	$	6
Due after one through five years	Due after one through five years	930		350		501		266		235		23		Due after one through five years	793		277		424		238		186		23
Due after five through 10 years	Due after five through 10 years	484		209		204		189		15		6		Due after five through 10 years	522		262		207		194		13		11
Due after 10 years	Due after 10 years	1,417		777		553		515		38		23		Due after 10 years	1,443		785		564		526		38		24
Total	Total	$	2,968	$	1,343	$	1,376	$	994	$	382	$	61	Total	$	2,873	$	1,329	$	1,291	$	977	$	314	$	64

~~10.~~11. 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 ~~(NAV)~~ per share practical expedient. The ~~NAV~~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~~NYSE and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.

6968


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 natural gas 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. Derivatives related to interest rate risk for the Commercial Renewables Disposal Groups are now classified as held for sale and are excluded from the following disclosures. See Note 2 for further information.

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, rates and credit quality of the counterparties.

Other fair value considerations

See Note 1112 in Duke Energy's Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, 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 8.9. See Note 910 for additional information related to investments by major security type for the Duke Energy Registrants.


		June 30, 2022											March 31, 2023
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized		(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	134	$	134	$	—	$	—	$	—	NDTF cash and cash equivalents	$	161	$	161	$	—	$	—	$	—
NDTF equity securities	NDTF equity securities	5,751		5,704		—		—		47		NDTF equity securities	6,367		6,326		—		—		41
NDTF debt securities	NDTF debt securities	2,694		849		1,845		—		—		NDTF debt securities	2,595		822		1,773		—		—
Other equity securities	Other equity securities	124		124		—		—		—		Other equity securities	137		137		—		—		—
Other debt securities	Other debt securities	274		44		230		—		—		Other debt securities	278		60		218		—		—
Other cash and cash equivalents	Other cash and cash equivalents	51		51		—		—		—		Other cash and cash equivalents	134		134		—		—		—

Derivative assets	Derivative assets	1,336		2		1,245		89		—		Derivative assets	268		1		255		12		—
Total assets	Total assets	10,364		6,908		3,320		89		47		Total assets	9,940		7,641		2,246		12		41

Derivative liabilities	Derivative liabilities	(593)		(21)		(327)		(245)		—		Derivative liabilities	(603)		(19)		(584)		—		—
Net assets (liabilities)	Net assets (liabilities)	$	9,771	$	6,887	$	2,993	$	(156)	$	47	Net assets (liabilities)	$	9,337	$	7,622	$	1,662	$	12	$	41


		December 31, 2021											December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized		(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	160	$	160	$	—	$	—	$	—	NDTF cash and cash equivalents	$	215	$	215	$	—	$	—	$	—
NDTF equity securities	NDTF equity securities	7,350		7,300		—		—		50		NDTF equity securities	5,871		5,829		—		—		42
NDTF debt securities	NDTF debt securities	2,891		967		1,924		—		—		NDTF debt securities	2,550		780		1,770		—		—
Other equity securities	Other equity securities	156		156		—		—		—		Other equity securities	128		128		—		—		—
Other debt securities	Other debt securities	300		45		255		—		—		Other debt securities	265		55		210		—		—
Other cash and cash equivalents	Other cash and cash equivalents	36		36		—		—		—		Other cash and cash equivalents	22		22		—		—		—
Derivative assets	Derivative assets	320		3		293		24		—		Derivative assets	795		1		760		34		—
Total assets	Total assets	11,213		8,667		2,472		24		50		Total assets	9,846		7,030		2,740		34		42

Derivative liabilities	Derivative liabilities	(472)		(13)		(314)		(145)		—		Derivative liabilities	(437)		(16)		(421)		—		—
Net assets (liabilities)	Net assets (liabilities)	$	10,741	$	8,654	$	2,158	$	(121)	$	50	Net assets (liabilities)	$	9,409	$	7,014	$	2,319	$	34	$	42

7069


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

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


		Derivatives (net)										Derivatives (net)
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Balance at beginning of period	Balance at beginning of period	$	(199)	$	(126)	$	(121)	$	(77)	Balance at beginning of period		$	34	$	24

Total pretax realized or unrealized losses included in comprehensive income		(42)		(31)		(110)		(75)

Purchases, sales, issuances and settlements:	Purchases, sales, issuances and settlements:									Purchases, sales, issuances and settlements:
Purchases		77		21		77		21

Settlements	Settlements	21		(1)		18		(8)		Settlements		(20)		(7)

Total (losses) gains included on the Condensed Consolidated Balance Sheet		(13)		6		(20)		8
Total losses included on the Condensed Consolidated Balance Sheet										Total losses included on the Condensed Consolidated Balance Sheet		(2)		(7)
Balance at end of period	Balance at end of period	$	(156)	$	(131)	$	(156)	$	(131)	Balance at end of period		$	12	$	10

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, 2022								March 31, 2023
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized			(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	58	$	58	$	—	$	—		NDTF cash and cash equivalents	$	69	$	69	$	—	$	—
NDTF equity securities	NDTF equity securities	3,327		3,280		—		47			NDTF equity securities	3,677		3,636		—		41
NDTF debt securities	NDTF debt securities	1,343		304		1,039		—			NDTF debt securities	1,329		372		957		—

Derivative assets	Derivative assets	484		—		484		—			Derivative assets	80		—		80		—
Total assets	Total assets	5,212		3,642		1,523		47			Total assets	5,155		4,077		1,037		41
Derivative liabilities	Derivative liabilities	(41)		—		(41)		—			Derivative liabilities	(201)		—		(201)		—
Net assets	Net assets	$	5,171	$	3,642	$	1,482	$	47		Net assets	$	4,954	$	4,077	$	836	$	41


		December 31, 2021								December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized			(in millions)	Total Fair Value		Level 1		Level 2		Not Categorized
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	53	$	53	$	—	$	—		NDTF cash and cash equivalents	$	117	$	117	$	—	$	—
NDTF equity securities	NDTF equity securities	4,265		4,215		—		50			NDTF equity securities	3,367		3,325		—		42
NDTF debt securities	NDTF debt securities	1,441		339		1,102		—			NDTF debt securities	1,298		323		975		—

Derivative assets	Derivative assets	162		—		162		—			Derivative assets	330		—		330		—
Total assets	Total assets	5,921		4,607		1,264		50			Total assets	5,112		3,765		1,305		42
Derivative liabilities	Derivative liabilities	(35)		—		(35)		—			Derivative liabilities	(127)		—		(127)		—
Net assets	Net assets	$	5,886	$	4,607	$	1,229	$	50		Net assets	$	4,985	$	3,765	$	1,178	$	42

PROGRESS ENERGY

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


		June 30, 2022						December 31, 2021						March 31, 2023		December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2			(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	76	$	76	$	—	$	107	$	107	$	—		NDTF cash and cash equivalents	$	92	$	92	$	—	$	98	$	98	$	—
NDTF equity securities	NDTF equity securities	2,424		2,424		—		3,085		3,085		—			NDTF equity securities	2,690		2,690		—		2,504		2,504		—
NDTF debt securities	NDTF debt securities	1,351		545		806		1,450		628		822			NDTF debt securities	1,266		450		816		1,252		457		795
Other debt securities	Other debt securities	25		—		25		26		—		26			Other debt securities	25		—		25		25		—		25
Other cash and cash equivalents	Other cash and cash equivalents	15		15		—		20		20		—			Other cash and cash equivalents	8		8		—		11		11		—

Derivative assets	Derivative assets	368		—		368		124		—		124			Derivative assets	88		—		88		248		—		248
Total assets	Total assets	4,259		3,060		1,199		4,812		3,840		972			Total assets	4,169		3,240		929		4,138		3,070		1,068

Derivative liabilities	Derivative liabilities	(43)		—		(43)		(24)		—		(24)			Derivative liabilities	(153)		—		(153)		(66)		—		(66)
Net assets	Net assets	$	4,216	$	3,060	$	1,156	$	4,788	$	3,840	$	948		Net assets	$	4,016	$	3,240	$	776	$	4,072	$	3,070	$	1,002

7170


FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY PROGRESS

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


		June 30, 2022						December 31, 2021						March 31, 2023		December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2			(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	46	$	46	$	—	$	94	$	94	$	—		NDTF cash and cash equivalents	$	72	$	72	$	—	$	56	$	56	$	—
NDTF equity securities	NDTF equity securities	2,333		2,333		—		2,970		2,970		—			NDTF equity securities	2,590		2,590		—		2,411		2,411		—
NDTF debt securities	NDTF debt securities	994		253		741		1,025		289		736			NDTF debt securities	977		219		758		963		225		738

Other cash and cash equivalents	Other cash and cash equivalents	12		12		—		16		16		—			Other cash and cash equivalents	7		7		—		9		9		—
Derivative assets	Derivative assets	368		—		368		124		—		124			Derivative assets	82		—		82		230		—		230
Total assets	Total assets	3,753		2,644		1,109		4,229		3,369		860			Total assets	3,728		2,888		840		3,669		2,701		968
Derivative liabilities	Derivative liabilities	(11)		—		(11)		(10)		—		(10)			Derivative liabilities	(149)		—		(149)		(48)		—		(48)
Net assets	Net assets	$	3,742	$	2,644	$	1,098	$	4,219	$	3,369	$	850		Net assets	$	3,579	$	2,888	$	691	$	3,621	$	2,701	$	920

DUKE ENERGY FLORIDA

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


		June 30, 2022						December 31, 2021						March 31, 2023		December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2			(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2
NDTF cash and cash equivalents	NDTF cash and cash equivalents	$	30	$	30	$	—	$	13	$	13	$	—		NDTF cash and cash equivalents	$	20	$	20	$	—	$	42	$	42	$	—
NDTF equity securities	NDTF equity securities	91		91		—		115		115		—			NDTF equity securities	100		100		—		93		93		—
NDTF debt securities	NDTF debt securities	357		292		65		425		339		86			NDTF debt securities	289		231		58		289		232		57
Other debt securities	Other debt securities	25		—		25		26		—		26			Other debt securities	25		—		25		25		—		25
Other cash and cash equivalents	Other cash and cash equivalents	1		1		—		3		3		—			Other cash and cash equivalents	—		—		—		1		1		—

Derivative assets															Derivative assets	6		—		6		17		—		17
Total assets	Total assets	504		414		90		582		470		112			Total assets	440		351		89		467		368		99

Derivative liabilities	Derivative liabilities	(33)		—		(33)		(14)		—		(14)			Derivative liabilities	(3)		—		(3)		(19)		—		(19)
Net assets	Net assets	$	471	$	414	$	57	$	568	$	470	$	98		Net assets	$	437	$	351	$	86	$	448	$	368	$	80

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, 2022,~~March 31, 2023, and December 31, ~~2021.~~2022.

DUKE ENERGY INDIANA

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


		June 30, 2022								December 31, 2021								March 31, 2023						December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3			(in millions)	Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3
Other equity securities	Other equity securities	$	77	$	77	$	—	$	—	$	97	$	97	$	—	$	—		Other equity securities	$	85	$	85	$	—	$	—	$	79	$	79	$	—	$	—
Other debt securities	Other debt securities	61		—		61		—		64		—		64		—			Other debt securities	64		—		64		—		60		—		60		—

Other cash and cash equivalents																			Other cash and cash equivalents	1		1		—		—		1		1		—		—
Derivative assets	Derivative assets	141		2		55		84		23		1		—		22			Derivative assets	11		—		—		11		110		—		81		29
Total assets	Total assets	279		79		116		84		184		98		64		22			Total assets	161		86		64		11		250		80		141		29
Derivative liabilities	Derivative liabilities	(21)		(21)		—		—		(27)		(13)		(14)		—			Derivative liabilities	(28)		(19)		(9)		—		(16)		(16)		—		—
Net assets	Net assets	$	258	$	58	$	116	$	84	$	157	$	85	$	50	$	22		Net assets	$	133	$	67	$	55	$	11	$	234	$	64	$	141	$	29

7271


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)										Derivatives (net)
		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Balance at beginning of period	Balance at beginning of period	$	10	$	2	$	22	$	6	Balance at beginning of period		$	29	$	22

Purchases, sales, issuances and settlements:	Purchases, sales, issuances and settlements:									Purchases, sales, issuances and settlements:
Purchases		74		18		74		18

Settlements	Settlements	16		(3)		10		(9)		Settlements		(19)		(6)

Total (losses) gains included on the Condensed Consolidated Balance Sheet		(16)		5		(22)		7
Total gains (losses) included on the Condensed Consolidated Balance Sheet										Total gains (losses) included on the Condensed Consolidated Balance Sheet		1		(6)
Balance at end of period	Balance at end of period	$	84	$	22	$	84	$	22	Balance at end of period		$	11	$	10

PIEDMONT

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


		June 30, 2022						December 31, 2021							March 31, 2023						December 31, 2022
(in millions)	(in millions)	Total Fair Value		Level 1		Level 2			Total Fair Value		Level 1		Level 2			(in millions)	Total Fair Value		Level 1		Level 2		Total Fair Value		Level 1		Level 2

Derivative assets	Derivative assets	$	—	$	—	$	—		$	3	$	3	$	—		Derivative assets	$	1	$	1	$	—	$	—	$	—	$	—

Derivative liabilities	Derivative liabilities	(193)		—		(193)			(139)		—		(139)			Derivative liabilities	(144)		—		(144)		(168)		—		(168)
Net (liabilities) assets	Net (liabilities) assets	$	(193)	$	—	$	(193)		$	(136)	$	3	$	(139)		Net (liabilities) assets	$	(143)	$	1	$	(144)	$	(168)	$	—	$	(168)

QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS

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

June 30, 2022

March 31, 2023

Weighted

Fair Value

Average

Fair Value

Average

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Investment Type

(in millions)

Valuation Technique

Unobservable Input

Range

Duke Energy

Electricity contracts

(245)

RTO forward pricing

Forward electricity curves – price per MWh

23.35

243.21

53.28

Duke Energy Ohio

FTRs

RTO auction pricing

FTR price – per MWh

(0.29)

2.30

0.89

FTRs

RTO auction pricing

FTR price – per MWh

(0.19)

2.71

1.08

Duke Energy Indiana

FTRs

RTO auction pricing

FTR price – per MWh

(0.61)

24.34

3.69

FTRs

RTO auction pricing

FTR price – per MWh

0.03

14.88

2.63

Duke Energy

Total Level 3 derivatives

(156)

Total Level 3 derivatives


		December 31, 2021										December 31, 2022
										Weighted											Weighted
		Fair Value								Average		Fair Value									Average
Investment Type	Investment Type	(in millions)		Valuation Technique	Unobservable Input	Range				Range	Investment Type	(in millions)		Valuation Technique	Unobservable Input	Range					Range
Duke Energy

Electricity contracts		$	(145)	RTO forward pricing	Forward electricity curves – price per MWh	$	19.04	-	$139.11	$37.57

Duke Energy Ohio	Duke Energy Ohio										Duke Energy Ohio

FTRs	FTRs	2		RTO auction pricing	FTR price – per MWh	0.06		-	1.79	0.96	FTRs	$	5	RTO auction pricing	FTR price – per MWh	$	0.89	-	$	6.25	$	3.35

Duke Energy Indiana	Duke Energy Indiana										Duke Energy Indiana
FTRs	FTRs	22		RTO auction pricing	FTR price – per MWh	(1.18)		-	13.11	2.68	FTRs	29		RTO auction pricing	FTR price – per MWh	0.09		-	21.79		2.74

Duke Energy	Duke Energy										Duke Energy
Total Level 3 derivatives	Total Level 3 derivatives	$	(121)								Total Level 3 derivatives	$	34

7372


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. Debt related to the Commercial Renewables Disposal Groups is now classified as held for sale and is excluded from the following disclosures. See Note 2 for further information. 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, 2022				December 31, 2021					March 31, 2023				December 31, 2022
(in millions)	(in millions)	Book Value		Fair Value		Book Value		Fair Value		(in millions)	Book Value		Fair Value		Book Value		Fair Value
Duke Energy(a)	Duke Energy(a)	$	66,318	$	61,451	$	63,835	$	69,683	Duke Energy(a)	$	72,437	$	66,455	$	69,751	$	61,986
Duke Energy Carolinas	Duke Energy Carolinas	14,162		13,501		13,275		15,101		Duke Energy Carolinas	15,105		14,176		14,266		12,943
Progress Energy	Progress Energy	20,751		19,830		20,823		23,751		Progress Energy	23,371		21,974		22,439		20,467
Duke Energy Progress	Duke Energy Progress	10,662		9,829		10,249		11,252		Duke Energy Progress	12,047		10,911		11,087		9,689
Duke Energy Florida	Duke Energy Florida	8,447		8,150		8,482		9,772		Duke Energy Florida	9,683		9,242		9,709		8,991
Duke Energy Ohio	Duke Energy Ohio	3,243		3,071		3,193		3,570		Duke Energy Ohio	3,991		3,768		3,245		2,927
Duke Energy Indiana	Duke Energy Indiana	4,337		4,168		4,323		5,067		Duke Energy Indiana	4,503		4,265		4,307		3,913
Piedmont	Piedmont	3,363		3,086		2,968		3,278		Piedmont	3,364		3,014		3,363		2,940

(a)Book value of long-term debt includes ~~$1.21~~$1.15 billion and ~~$1.25~~$1.17 billion at ~~June 30, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, 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, 2022,~~March 31, 2023, and December 31, ~~2021,~~2022, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.

~~11.~~12. 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~~three months ended ~~June 30, 2022,~~March 31, 2023, and the year ended December 31, ~~2021,~~2022, 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 credit facilities are reflected on the Condensed Consolidated Balance Sheets as Long-Term Debt.~~

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

Receivables Financing – CRC

CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC buys certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC borrows amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility is limited to the amount of qualified receivables sold to CRC, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligation is cash collections from the receivables. Amounts borrowed under the credit facility are reflected on Duke Energy's Condensed Consolidated Balance Sheets as Long-Term Debt.

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

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

7473


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

Receivables Financing – Credit Facilities

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

Duke Energy
Duke Energy Duke Energy Duke Energy
Carolinas Progress Florida
(in millions) CRC DERF DEPR DEFR
Expiration date February 2025 January 2025 April 2025 April 2023
Credit facility amount $ 350 $ 500 $ 400 $ 250
Amounts borrowed at June 30, 2022 350 498 400 250
Amounts borrowed at December 31, 2021 350 475 350 250
Restricted Receivables at June 30, 2022 776 893 705 640
Restricted Receivables at December 31, 2021 587 844 574 427


	Duke Energy
			Duke Energy		Duke Energy		Duke Energy
			Carolinas		Progress		Florida
(in millions)	CRC		DERF		DEPR		DEFR
Expiration date	February 2025		January 2025		April 2025		April 2024
Credit facility amount	$	350	$	500	$	400	$	325
Amounts borrowed at March 31, 2023	350		500		400		250
Amounts borrowed at December 31, 2022	350		471		400		250
Restricted Receivables at March 31, 2023	784		782		654		443
Restricted Receivables at December 31, 2022	917		928		793		490

Nuclear Asset-Recovery Bonds – DEFPF

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)	(in millions)	June 30, 2022		December 31, 2021		(in millions)	March 31, 2023		December 31, 2022
Receivables of VIEs	Receivables of VIEs	$	7	$	5	Receivables of VIEs	$	4	$	6
Regulatory Assets: Current	Regulatory Assets: Current	54		54		Regulatory Assets: Current	55		55
Current Assets: Other	Current Assets: Other	33		39		Current Assets: Other	18		41
Other Noncurrent Assets: Regulatory assets	Other Noncurrent Assets: Regulatory assets	859		883		Other Noncurrent Assets: Regulatory assets	814		826
Current Liabilities: Other	Current Liabilities: Other	9		9		Current Liabilities: Other	2		9
Current maturities of long-term debt	Current maturities of long-term debt	56		56		Current maturities of long-term debt	57		56
Long-Term Debt	Long-Term Debt	916		946		Long-Term Debt	859		890

Storm Recovery Bonds – Duke Energy Carolinas NC Storm Funding and Duke Energy Progress NC Storm Funding

Duke Energy Carolinas NC Storm Funding, LLC (DECNCSF) and Duke Energy Progress NC Storm Funding, LLC (DEPNCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress, respectively. These entities were formed in 2021 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs.

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

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.

7574


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

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

June 30, 2022 December 31, 2021
Duke Energy Duke Energy Duke Energy Duke Energy
(in millions) Carolinas Progress Carolinas Progress
Regulatory Assets: Current $ 12 $ 39 $ 12 $ 39
Current Assets: Other 8 26 — —
Other Noncurrent Assets: Regulatory assets 214 701 220 720
Other Noncurrent Assets: Other 1 4 1 4
Current Liabilities: Other 3 10 1 2
Current maturities of long-term debt 10 32 5 15
Long-Term Debt 224 731 228 747

~~Commercial Renewables~~

Certain of Duke Energy’s renewable energy facilities are VIEs due to Duke Energy issuing guarantees for debt service and operations and maintenance reserves in support of debt financings. Assets are restricted and cannot be pledged as collateral or sold to third parties without prior approval of debt holders. Additionally, Duke Energy has VIEs associated with tax equity arrangements entered into with third-party investors in order to finance the cost of renewable assets eligible for tax credits. The activities that most significantly impacted the economic performance of these renewable energy facilities were decisions associated with siting, negotiating PPAs and Engineering, Procurement and Construction agreements, and decisions associated with ongoing operations and maintenance-related activities. Duke Energy is considered the primary beneficiary and consolidates the entities as it is responsible for all of these decisions.

~~The table below presents material balances reported on Duke Energy's Condensed Consolidated Balance Sheets related to Commercial Renewables VIEs.~~


							March 31, 2023				December 31, 2022
							Duke Energy				Duke Energy
(in millions)	(in millions)	June 30, 2022		December 31, 2021		(in millions)	Carolinas		Progress		Carolinas		Progress
Regulatory Assets: Current						Regulatory Assets: Current	$	12	$	39	$	12	$	39
Current Assets: Other	Current Assets: Other	$	215	$	215	Current Assets: Other	5		15		8		29
Property, Plant and Equipment: Cost		7,552		7,339
Accumulated depreciation and amortization		(1,646)		(1,474)
Other Noncurrent Assets: Regulatory assets						Other Noncurrent Assets: Regulatory assets	205		672		208		681
Other Noncurrent Assets: Other	Other Noncurrent Assets: Other	75		62		Other Noncurrent Assets: Other	1		4		1		2

Current Liabilities: Other						Current Liabilities: Other	1		4		3		8
Current maturities of long-term debt	Current maturities of long-term debt	285		167		Current maturities of long-term debt	10		34		10		34
Long-Term Debt	Long-Term Debt	1,255		1,475		Long-Term Debt	213		697		219		714
Other Noncurrent Liabilities: AROs		176		173
Other Noncurrent Liabilities: Other		213		319

NON-CONSOLIDATED VIEs

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


		June 30, 2022								March 31, 2023
		Duke Energy				Duke		Duke		Duke Energy						Duke	Duke
		Pipeline		Commercial				Energy			Energy			Natural Gas			Energy		Energy
(in millions)	(in millions)	Investments		Renewables		Total		Ohio			Indiana		(in millions)	Investments			Ohio		Indiana
Receivables from affiliated companies	Receivables from affiliated companies	$	—	$	—	$	—	$	131		$	222	Receivables from affiliated companies	$	—		$	164	$	221

Investments in equity method unconsolidated affiliates	Investments in equity method unconsolidated affiliates	29		507		536		—			—		Investments in equity method unconsolidated affiliates	49			—		—
Deferred tax asset		62		—		62		—			—
Other noncurrent assets													Other noncurrent assets	46			—		—
Total assets	Total assets	$	91	$	507	$	598	$	131		$	222	Total assets	$	95		$	164	$	221

Other current liabilities	Other current liabilities	53		4		57		—			—		Other current liabilities	52			—		—

Other noncurrent liabilities	Other noncurrent liabilities	51		3		54		—			—		Other noncurrent liabilities	49			—		—
Total liabilities	Total liabilities	$	104	$	7	$	111	$	—		$	—	Total liabilities	$	101		$	—	$	—
Net (liabilities) assets	Net (liabilities) assets	$	(13)	$	500	$	487	$	131		$	222	Net (liabilities) assets	$	(6)		$	164	$	221


~~FINANCIAL STATEMENTS~~			~~VARIABLE INTEREST ENTITIES~~


		December 31, 2021								December 31, 2022
		Duke Energy				Duke		Duke		Duke Energy						Duke	Duke
		Pipeline		Commercial				Energy			Energy			Natural Gas			Energy		Energy
(in millions)	(in millions)	Investments		Renewables		Total		Ohio			Indiana		(in millions)	Investments			Ohio		Indiana
Receivables from affiliated companies	Receivables from affiliated companies	$	—	$	—	$	—	$	79		$	97	Receivables from affiliated companies	$	—		$	198	$	317

Investments in equity method unconsolidated affiliates	Investments in equity method unconsolidated affiliates	15		508		523		—			—		Investments in equity method unconsolidated affiliates	43			—		—
Other noncurrent assets	Other noncurrent assets	61		—		61		—			—		Other noncurrent assets	45			—		—
Total assets	Total assets	$	76	$	508	$	584	$	79		$	97	Total assets	$	88		$	198	$	317

Other current liabilities	Other current liabilities	47		4		51		—			—		Other current liabilities	59			—		—

Other noncurrent liabilities	Other noncurrent liabilities	54		3		57		—			—		Other noncurrent liabilities	47			—		—
Total liabilities	Total liabilities	$	101	$	7	$	108	$	—		$	—	Total liabilities	$	106		$	—	$	—
Net (liabilities) assets	Net (liabilities) assets	$	(25)	$	501	$	476	$	79		$	97	Net (liabilities) assets	$	(18)		$	198	$	317

The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown ~~above except for certain renewable energy project entities guarantees for debt services and operations and maintenance, as discussed below.~~above.

Natural Gas Investments

Duke Energy has investments in various joint ventures ~~to construct and operate~~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.

~~Commercial Renewables~~

Duke Energy has investments in various renewable energy project entities. Duke Energy has a 50% ownership in a VIE, which owns a portfolio of wind projects. This entity is a VIE as a result of Duke Energy issuing guarantees for debt service and operations and maintenance reserves in support of debt financings. Duke Energy does not consolidate this VIE because power to direct and control key activities is shared jointly by Duke Energy and the other owner. Duke Energy also has equity ownership in an entity, which owns a portfolio of fuel cell projects. Duke Energy does not consolidate the fuel cell portfolio as it does not have the power to direct the activities that most significantly impact the economic performance of the entity.

~~OVEC~~

Duke Energy Ohio’s 9% ownership interest in OVEC is considered a non-consolidated VIE due to OVEC having insufficient equity to finance its activities without subordinated financial support. The activities that most significantly impact OVEC's economic performance include fuel strategy and supply activities and decisions associated with ongoing operations and maintenance-related activities. Duke Energy Ohio does not have the unilateral power to direct these activities, and therefore, does not consolidate OVEC.

As a counterparty to an Inter-Company Power Agreement (ICPA), Duke Energy Ohio has a contractual arrangement to receive entitlements to capacity and energy from OVEC’s power plants through June 2040 commensurate with its power participation ratio, which is equivalent to Duke Energy Ohio's ownership interest. Costs, including fuel, operating expenses, fixed costs, debt amortization and interest expense, are allocated to counterparties to the ICPA based on their power participation ratio. The value of the ICPA is subject to variability due to fluctuation in power prices and changes in OVEC's cost of business.

CRC

See discussion under Consolidated VIEs for additional information related to CRC.

Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC. These subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value.

~~The following table shows the gross and net receivables sold.~~

Duke Energy Ohio Duke Energy Indiana
(in millions) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021
Receivables sold $ 313 $ 269 $ 466 $ 328
Less: Retained interests 131 79 222 97
Net receivables sold $ 182 $ 190 $ 244 $ 231

7775


FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

The following table shows the gross and net receivables sold.


	Duke Energy Ohio				Duke Energy Indiana
(in millions)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Receivables sold	$	369	$	423	$	426	$	508
Less: Retained interests	164		198		221		317
Net receivables sold	$	205	$	225	$	205	$	191

The following table shows sales and cash flows related to receivables sold.


			Duke Energy Ohio						Duke Energy Indiana							Duke Energy Ohio					Duke Energy Indiana
		Six Months Ended						Six Months Ended				Three Months Ended					Three Months Ended
		June 30,						June 30,				March 31,					March 31,
(in millions)	(in millions)			2022		2021				2022			2021		(in millions)		2023		2022			2023		2022
Sales	Sales														Sales
Receivables sold	Receivables sold			$	1,247	$	1,004			$	1,617		$	1,382	Receivables sold		$	725	$	663		$	942	$	782
Loss recognized on sale	Loss recognized on sale			7		5				8			6		Loss recognized on sale		9		3			10		4
Cash flows	Cash flows														Cash flows
Cash proceeds from receivables sold	Cash proceeds from receivables sold			$	1,188	$	1,029			$	1,484		$	1,401	Cash proceeds from receivables sold		$	750	$	674		$	1,028	$	795
Collection fees received				1		—				1			—

Return received on retained interests	Return received on retained interests			3		2				4			3		Return received on retained interests		6		1			8		2

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.

~~12.~~13. REVENUE

Duke Energy earns substantially all of its revenues through its reportable segments, ~~Electric Utilities~~EU&I and ~~Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.~~GU&I.

Electric Utilities and Infrastructure

~~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															Remaining Performance Obligations
(in millions)	(in millions)	2022		2023		2024		2025		2026		Thereafter		Total		(in millions)	2023		2024		2025		2026		2027		Thereafter		Total

Progress Energy	Progress Energy	$	54	$	53	$	45	$	7	$	7	$	43	$	209	Progress Energy	$	43	$	66	$	7	$	7	$	7	$	36	$	166
Duke Energy Progress	Duke Energy Progress	4		8		8		—		—		—		20		Duke Energy Progress	6		8		—		—		—		—		14
Duke Energy Florida	Duke Energy Florida	50		45		37		7		7		43		189		Duke Energy Florida	37		58		7		7		7		36		152

Duke Energy Indiana	Duke Energy Indiana	2		11		16		17		15		12		73		Duke Energy Indiana	10		16		17		15		7		5		70

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

Gas Utilities and Infrastructure

~~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 ~~Gas Utilities and Infrastructure~~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) 2022 2023 2024 2025 2026 Thereafter Total
Piedmont $ 32 $ 64 $ 61 $ 60 $ 50 $ 286 $ 553

~~Commercial Renewables~~

Commercial Renewables earns the majority of its revenues through long-term PPAs and generally sells all of its wind and solar facility output, electricity and Renewable Energy Certificates (RECs) to customers. Some of these PPAs have been accounted for as leases. For PPAs that are not accounted for as leases, the delivery of electricity and the delivery of RECs are considered separate performance obligations.


	Remaining Performance Obligations
(in millions)	2023		2024		2025		2026		2027		Thereafter		Total

Piedmont	$	51	$	62	$	61	$	51	$	49	$	241	$	515

Other

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

7876


FINANCIAL STATEMENTS			REVENUE

Disaggregated Revenues

Disaggregated revenues are presented as follows:


		Three Months Ended June 30, 2022																	Three Months Ended March 31, 2023
				Duke				Duke													Duke				Duke
(in millions)	(in millions)	Duke		Energy		Progress		Energy										(in millions)	Duke		Energy		Progress		Energy
By market or type of customer	By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure	Electric Utilities and Infrastructure																	Electric Utilities and Infrastructure
Residential	Residential	$	2,625	$	736	$	1,400	$	530	$	870	$	196	$	296	$	—	Residential	$	2,851	$	824	$	1,421	$	607	$	814	$	234	$	372	$	—
General	General	1,817		566		889		370		519		111		251		—		General	1,831		588		841		358		483		135		270		—
Industrial	Industrial	824		296		274		184		90		33		220		—		Industrial	891		296		272		177		95		71		251		—
Wholesale	Wholesale	629		103		389		281		108		35		102		—		Wholesale	550		135		348		319		29		9		58		—
Other revenues	Other revenues	202		92		247		210		37		20		23		—		Other revenues	144		78		121		68		53		27		15		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,097	$	1,793	$	3,199	$	1,575	$	1,624	$	395	$	892	$	—	Total Electric Utilities and Infrastructure revenue from contracts with customers	$	6,267	$	1,921	$	3,003	$	1,529	$	1,474	$	476	$	966	$	—

Gas Utilities and Infrastructure	Gas Utilities and Infrastructure																	Gas Utilities and Infrastructure
Residential	Residential	$	197	$	—	$	—	$	—	$	—	$	94	$	—	$	103	Residential	$	507	$	—	$	—	$	—	$	—	$	162	$	—	$	345
Commercial	Commercial	127		—		—		—		—		38		—		90		Commercial	233		—		—		—		—		58		—		175
Industrial	Industrial	34		—		—		—		—		6		—		28		Industrial	47		—		—		—		—		9		—		37
Power Generation	Power Generation	—		—		—		—		—		—		—		23		Power Generation	—		—		—		—		—		—		—		23
Other revenues	Other revenues	66		—		—		—		—		6		—		44		Other revenues	40		—		—		—		—		6		—		19
Total Gas Utilities and Infrastructure revenue from contracts with customers	Total Gas Utilities and Infrastructure revenue from contracts with customers	$	424	$	—	$	—	$	—	$	—	$	144	$	—	$	288	Total Gas Utilities and Infrastructure revenue from contracts with customers	$	827	$	—	$	—	$	—	$	—	$	235	$	—	$	599

Commercial Renewables
Revenue from contracts with customers		$	77	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other	Other																	Other
Revenue from contracts with customers	Revenue from contracts with customers	$	8	$	—	$	—	$	—	$	—	$	—	$	—	$	—	Revenue from contracts with customers	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	Total revenue from contracts with customers	$	6,606	$	1,793	$	3,199	$	1,575	$	1,624	$	539	$	892	$	288	Total revenue from contracts with customers	$	7,101	$	1,921	$	3,003	$	1,529	$	1,474	$	711	$	966	$	599

Other revenue sources(a)	Other revenue sources(a)	$	79	$	(12)	$	15	$	6	$	4	$	6	$	26	$	22	Other revenue sources(a)	$	175	$	13	$	45	$	4	$	36	$	(2)	$	9	$	76
Total revenues	Total revenues	$	6,685	$	1,781	$	3,214	$	1,581	$	1,628	$	545	$	918	$	310	Total revenues	$	7,276	$	1,934	$	3,048	$	1,533	$	1,510	$	709	$	975	$	675


FINANCIAL STATEMENTS			REVENUE


	Three Months Ended March 31, 2022
			Duke				Duke		Duke		Duke		Duke
(in millions)	Duke		Energy		Progress		Energy		Energy		Energy		Energy
By market or type of customer	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Electric Utilities and Infrastructure
Residential	$	2,767	$	831	$	1,368	$	624	$	744	$	211	$	354	$	—
General	1,604		544		726		325		401		116		218		—
Industrial	772		276		270		194		76		35		192		—
Wholesale	626		113		411		349		62		23		79		—
Other revenues	202		111		211		139		72		21		(36)		—
Total Electric Utilities and Infrastructure revenue from contracts with customers	$	5,971	$	1,875	$	2,986	$	1,631	$	1,355	$	406	$	807	$	—

Gas Utilities and Infrastructure
Residential	$	572	$	—	$	—	$	—	$	—	$	149	$	—	$	423
Commercial	269		—		—		—		—		64		—		204
Industrial	57		—		—		—		—		7		—		50
Power Generation	—		—		—		—		—		—		—		24
Other revenues	115		—		—		—		—		6		—		93
Total Gas Utilities and Infrastructure revenue from contracts with customers	$	1,013	$	—	$	—	$	—	$	—	$	226	$	—	$	794

Other
Revenue from contracts with customers	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total revenue from contracts with customers	$	6,991	$	1,875	$	2,986	$	1,631	$	1,355	$	632	$	807	$	794

Other revenue sources(a)	$	20	$	13	$	6	$	1	$	—	$	6	$	15	$	11
Total revenues	$	7,011	$	1,888	$	2,992	$	1,632	$	1,355	$	638	$	822	$	805

(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~~

Three Months Ended June 30, 2021
Duke Duke Duke Duke Duke
(in millions) Duke Energy Progress Energy Energy Energy Energy
By market or type of customer Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Electric Utilities and Infrastructure
   Residential $ 2,336 $ 683 $ 1,216 $ 478 $ 738 $ 171 $ 265 $ —
   General 1,513 498 720 330 390 106 190 —
   Industrial 705 256 229 160 69 33 189 —
   Wholesale 521 116 331 285 46 13 63 —
   Other revenues 234 62 151 71 80 22 23 —
Total Electric Utilities and Infrastructure revenue from contracts with customers $ 5,309 $ 1,615 $ 2,647 $ 1,324 $ 1,323 $ 345 $ 730 $ —
Gas Utilities and Infrastructure
   Residential $ 158 $ — $ — $ — $ — $ 69 $ — $ 88
   Commercial 91 — — — — 27 — 59
   Industrial 30 — — — — 4 — 27
   Power Generation — — — — — — — 24
   Other revenues 20 — — — — 12 — (1)
Total Gas Utilities and Infrastructure revenue from contracts with customers $ 299 $ — $ — $ — $ — $ 112 $ — $ 197
Commercial Renewables
Revenue from contracts with customers $ 53 $ — $ — $ — $ — $ — $ — $ —
Other
Revenue from contracts with customers $ 6 $ — $ — $ — $ — $ — $ — $ —
Total revenue from contracts with customers $ 5,667 $ 1,615 $ 2,647 $ 1,324 $ 1,323 $ 457 $ 730 $ 197
Other revenue sources(a)
$ 91 $ (5) $ 32 $ 25 $ 2 $ (1) $ 5 $ 18
Total revenues $ 5,758 $ 1,610 $ 2,679 $ 1,349 $ 1,325 $ 456 $ 735 $ 215

~~(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, 2022
Duke Duke Duke Duke Duke
(in millions) Duke Energy Progress Energy Energy Energy Energy
By market or type of customer Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Electric Utilities and Infrastructure
   Residential $ 5,392 $ 1,567 $ 2,768 $ 1,154 $ 1,614 $ 407 $ 650 $ —
   General 3,421 1,110 1,615 695 920 227 469 —
   Industrial 1,596 572 544 378 166 68 412 —
   Wholesale 1,255 216 800 630 170 58 181 —
   Other revenues 404 203 458 349 109 41 (13) —
Total Electric Utilities and Infrastructure revenue from contracts with customers $ 12,068 $ 3,668 $ 6,185 $ 3,206 $ 2,979 $ 801 $ 1,699 $ —
Gas Utilities and Infrastructure
   Residential $ 769 $ — $ — $ — $ — $ 243 $ — $ 526
   Commercial 396 — — — — 102 — 294
   Industrial 91 — — — — 13 — 78
   Power Generation — — — — — — — 47
   Other revenues 181 — — — — 12 — 137
Total Gas Utilities and Infrastructure revenue from contracts with customers $ 1,437 $ — $ — $ — $ — $ 370 $ — $ 1,082
Commercial Renewables
Revenue from contracts with customers $ 128 $ — $ — $ — $ — $ — $ — $ —
Other
Revenue from contracts with customers $ 15 $ — $ — $ — $ — $ — $ — $ —
Total Revenue from contracts with customers $ 13,648 $ 3,668 $ 6,185 $ 3,206 $ 2,979 $ 1,171 $ 1,699 $ 1,082
Other revenue sources(a)
$ 169 $ 1 $ 21 $ 7 $ 4 $ 12 $ 41 $ 33
Total revenues $ 13,817 $ 3,669 $ 6,206 $ 3,213 $ 2,983 $ 1,183 $ 1,740 $ 1,115


~~FINANCIAL STATEMENTS~~			~~REVENUE~~

Six Months Ended June 30, 2021
Duke Duke Duke Duke Duke
(in millions) Duke Energy Progress Energy Energy Energy Energy
By market or type of customer Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Electric Utilities and Infrastructure
   Residential $ 4,798 $ 1,476 $ 2,378 $ 1,038 $ 1,340 $ 366 $ 578 $ —
   General 2,932 1,000 1,344 636 708 210 379 —
   Industrial 1,367 512 436 305 131 64 356 —
   Wholesale 1,025 230 657 577 80 26 113 —
   Other revenues 460 136 311 154 157 44 41 —
Total Electric Utilities and Infrastructure revenue from contracts with customers $ 10,582 $ 3,354 $ 5,126 $ 2,710 $ 2,416 $ 710 $ 1,467 $ —
Gas Utilities and Infrastructure
   Residential $ 618 $ — $ — $ — $ — $ 179 $ — $ 439
   Commercial 295 — — — — 75 — 215
   Industrial 80 — — — — 11 — 70
   Power Generation — — — — — — — 46
   Other revenues 67 — — — — 17 — 25
Total Gas Utilities and Infrastructure revenue from contracts with customers $ 1,060 $ — $ — $ — $ — $ 282 $ — $ 795
Commercial Renewables
Revenue from contracts with customers $ 107 $ — $ — $ — $ — $ — $ — $ —
Other
Revenue from contracts with customers $ 12 $ — $ — $ — $ — $ — $ — $ —
Total Revenue from contracts with customers $ 11,761 $ 3,354 $ 5,126 $ 2,710 $ 2,416 $ 992 $ 1,467 $ 795
Other revenue sources(a)
$ 147 $ (28) $ 58 $ 40 $ 10 $ (4) $ 13 $ 26
Total revenues $ 11,908 $ 3,326 $ 5,184 $ 2,750 $ 2,426 $ 988 $ 1,480 $ 821


~~FINANCIAL STATEMENTS~~			~~REVENUE~~

Duke Energy adopted the new guidance for credit losses effective January 1, 2020, using the modified retrospective method of adoption, which does not require restatement of prior year reported results. The following table presents the reserve for credit losses for trade and other receivables based on adoption of the new standard.


		Three Months Ended June 30, 2021 and 2022																	Three Months Ended March 31, 2022 and 2023
				Duke				Duke													Duke				Duke
		Duke		Energy		Progress		Energy											Duke		Energy		Progress		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at March 31, 2021		$	147	$	34	$	37	$	23	$	15	$	4	$	3	$	14
Write-Offs		(5)		1		(4)		(3)		(1)		—		—		(2)
Credit Loss Expense		12		6		6		4		2		—		—		1
Other Adjustments		(31)		1		(3)		(3)		—		—		—		—
Balance at June 30, 2021		$	123	$	42	$	36	$	21	$	16	$	4	$	3	$	13

Balance at March 31, 2022		$	140	$	52	$	51	$	31	$	21	$	4	$	3	$	17
Write-Offs		(31)		(16)		(9)		(5)		(5)		—		—		(5)
Credit Loss Expense		20		8		7		2		5		—		—		3
Other Adjustments		7		8		3		3		—		—		—		—
Balance at June 30, 2022		$	136	$	52	$	52	$	31	$	21	$	4	$	3	$	15

		Six Months Ended June 30, 2021 and 2022
				Duke				Duke
		Duke		Energy		Progress		Energy
(in millions)		Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Balance at December 31, 2020		$	146	$	23	$	37	$	23	$	14	$	4	$	3	$	12
Balance at December 31, 2021																		Balance at December 31, 2021	$	121	$	42	$	36	$	21	$	16	$	4	$	3	$	15

Write-Offs	Write-Offs	(26)		(7)		(14)		(8)		(6)		—		—		(3)		Write-Offs	(23)		(9)		(10)		(2)		(8)		—		—		(1)
Credit Loss Expense	Credit Loss Expense	29		16		13		6		7		—		—		4		Credit Loss Expense	24		5		12		4		8		—		—		3
Other Adjustments	Other Adjustments	(26)		10		—		—		1		—		—		—		Other Adjustments	17		14		13		8		5		—		—		—
Balance at June 30, 2021		$	123	$	42	$	36	$	21	$	16	$	4	$	3	$	13
Balance at March 31, 2022																		Balance at March 31, 2022	$	139	$	52	$	51	$	31	$	21	$	4	$	3	$	17

Balance at December 31, 2021		$	122	$	42	$	36	$	21	$	16	$	4	$	3	$	15
Balance at December 31, 2022																		Balance at December 31, 2022	$	216	$	68	$	81	$	44	$	36	$	6	$	4	$	14
Write-Offs	Write-Offs	(54)		(25)		(19)		(7)		(13)		—		—		(6)		Write-Offs	(42)		(20)		(22)		(9)		(12)		—		—		(1)
Credit Loss Expense	Credit Loss Expense	44		13		19		6		13		—		—		6		Credit Loss Expense	16		7		6		1		5		1		—		1
Other Adjustments	Other Adjustments	24		22		16		11		5		—		—		—		Other Adjustments	24		15		10		9		1		—		—		—
Balance at June 30, 2022		$	136	$	52	$	52	$	31	$	21	$	4	$	3	$	15
Balance at March 31, 2023																		Balance at March 31, 2023	$	214	$	70	$	75	$	45	$	30	$	7	$	4	$	14

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. Duke Energy considers receivables greater than 30 days outstanding past due.~~

June 30, 2022
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)
$ 1,175 $ 412 $ 359 $ 205 $ 154 $ 8 $ 24 $ 10
0-30 days 2,202 592 946 451 492 32 41 127
30-60 days 177 52 90 41 49 2 3 8
60-90 days 88 16 44 20 24 1 6 5
90+ days 274 80 96 46 50 43 14 11
Deferred Payment Arrangements(c)
148 62 61 36 25 1 — 4
Trade and Other Receivables $ 4,064 $ 1,214 $ 1,596 $ 799 $ 794 $ 87 $ 88 $ 165

8378


FINANCIAL STATEMENTS			REVENUE

December 31, 2021
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Unbilled Revenue(a)(b)
$ 964 $ 316 $ 266 $ 193 $ 73 $ 4 $ 27 $ 106
0-30 days 2,104 595 800 405 393 42 51 202
30-60 days 212 77 72 44 28 4 13 12
60-90 days 88 37 41 21 20 1 1 2
90+ days 249 106 65 37 28 47 11 7
Deferred Payment Arrangements(c)
115 55 45 22 23 2 — 4
Trade and Other Receivables $ 3,732 $ 1,186 $ 1,289 $ 722 $ 565 $ 100 $ 103 $ 333
The aging of trade receivables is presented in the table below.


	March 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)(b)	$	1,070	$	408	$	284	$	178	$	106	$	3	$	20	$	57
Current	2,018		519		892		476		414		14		46		168
1-31 days past due	254		64		103		68		35		5		9		18
31-61 days past due	148		32		83		72		11		5		2		10
61-91 days past due	33		9		13		8		5		2		1		2
91+ days past due	217		60		65		24		41		48		16		3
Deferred Payment Arrangements(c)	144		46		51		32		19		4		—		1
Trade and Other Receivables	$	3,884	$	1,138	$	1,491	$	858	$	631	$	81	$	94	$	259


	December 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Unbilled Revenue(a)(b)	$	1,457	$	486	$	355	$	232	$	123	$	20	$	28	$	160
Current	2,347		577		1,059		637		417		15		52		265
1-31 days past due	261		96		60		15		45		5		17		15
31-61 days past due	123		23		61		49		12		6		2		3
61-91 days past due	74		25		18		9		9		3		11		2
91+ days past due	209		70		74		27		47		26		6		4
Deferred Payment Arrangements(c)	160		57		62		35		27		4		—		1
Trade and Other Receivables	$	4,631	$	1,334	$	1,689	$	1,004	$	680	$	79	$	116	$	450

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

(b)Duke Energy Ohio and Duke Energy Indiana sell, on a revolving basis, nearly all of their retail accounts receivable, including receivables for unbilled revenues, to an affiliate, CRC, and account for the transfers of receivables as sales. Accordingly, the receivables sold are not reflected on the Condensed Consolidated Balance Sheets of Duke Energy Ohio and Duke Energy Indiana. See Note 1112 for further information. These receivables for unbilled revenues are ~~$102~~$103 million and ~~$199~~$195 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of ~~June 30, 2022,~~March 31, 2023, and ~~$82~~$148 million and ~~$121~~$260 million for Duke Energy Ohio and Duke Energy Indiana, respectively, as of December 31, ~~2021.~~2022.

(c)Due to ~~certain customer~~ongoing financial hardships ~~created by the COVID-19 pandemic and resulting stay-at-home orders,~~impacting customers, Duke Energy has permitted customers to defer payment of past-due amounts through an installment payment ~~plan over a period of several months.~~plans.

~~13.~~14. 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, were exercised or settled. 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,					Three Months Ended March 31,
(in millions, except per share amounts)	(in millions, except per share amounts)	2022		2021		2022		2021		(in millions, except per share amounts)		2023		2022
Net income available to Duke Energy common stockholders	Net income available to Duke Energy common stockholders	$	893	$	751	$	1,711	$	1,704	Net income available to Duke Energy common stockholders		$	765	$	818
Less: (Loss) Income from discontinued operations attributable to Duke Energy common stockholders										Less: (Loss) Income from discontinued operations attributable to Duke Energy common stockholders		(145)		12
Accumulated preferred stock dividends adjustment	Accumulated preferred stock dividends adjustment	(12)		(12)		—		—		Accumulated preferred stock dividends adjustment		12		12
Less: Impact of participating securities	Less: Impact of participating securities	—		1		1		1		Less: Impact of participating securities		1		1
Income from continuing operations available to Duke Energy common stockholders	Income from continuing operations available to Duke Energy common stockholders	$	881	$	738	$	1,710	$	1,703	Income from continuing operations available to Duke Energy common stockholders		$	921	$	817

Loss from discontinued operations, net of tax										Loss from discontinued operations, net of tax		$	(209)	$	(15)
Add: Loss attributable to NCI										Add: Loss attributable to NCI		64		27
(Loss) Income from discontinued operations attributable to Duke Energy common stockholders										(Loss) Income from discontinued operations attributable to Duke Energy common stockholders		$	(145)	$	12

Weighted average common shares outstanding – basic and diluted	Weighted average common shares outstanding – basic and diluted	770		769		770		769		Weighted average common shares outstanding – basic and diluted		770		770

EPS available to Duke Energy common stockholders
EPS from continuing operations available to Duke Energy common stockholders										EPS from continuing operations available to Duke Energy common stockholders
Basic and diluted	Basic and diluted	$	1.14	$	0.96	$	2.22	$	2.21	Basic and diluted		$	1.20	$	1.06

(Loss) Earnings Per Share from discontinued operations attributable to Duke Energy common stockholders										(Loss) Earnings Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and diluted										Basic and diluted		$	(0.19)	$	0.02
Potentially dilutive items excluded from the calculation(a)	Potentially dilutive items excluded from the calculation(a)	2		2		2		2		Potentially dilutive items excluded from the calculation(a)		2		2
Dividends declared per common share	Dividends declared per common share	$	0.985	$	0.965	$	1.970	$	1.930	Dividends declared per common share		$	1.005	$	0.985
Dividends declared on Series A preferred stock per depositary share(b)	Dividends declared on Series A preferred stock per depositary share(b)	$	0.359	$	0.359	$	0.719	$	0.719	Dividends declared on Series A preferred stock per depositary share(b)		$	0.359	$	0.359
Dividends declared on Series B preferred stock per share(c)	Dividends declared on Series B preferred stock per share(c)	$	—	$	—	$	24.375	$	24.375	Dividends declared on Series B preferred stock per share(c)		$	24.375	$	24.375

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

(b)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.

(c)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.


~~FINANCIAL STATEMENTS~~			~~EMPLOYEE BENEFIT PLANS~~

~~14.~~15. 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.

QUALIFIED PENSION PLANS

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

Three Months Ended June 30, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Service cost $ 41 $ 14 $ 11 $ 7 $ 6 $ 1 $ 2 $ 2
Interest cost on projected benefit obligation 59 13 18 8 10 3 5 2
Expected return on plan assets (141) (38) (47) (22) (24) (6) (10) (6)
Amortization of actuarial loss 23 5 7 4 3 1 3 1
Amortization of prior service credit (4) (1) — — — — (1) (2)
Amortization of settlement charges 2 2 — 1 — — — —
Net periodic pension costs $ (20) $ (5) $ (11) $ (2) $ (5) $ (1) $ (1) $ (3)

Three Months Ended June 30, 2021
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Service cost $ 44 $ 14 $ 12 $ 8 $ 6 $ 1 $ 3 $ 2
Interest cost on projected benefit obligation 55 12 18 8 9 4 4 2
Expected return on plan assets (140) (35) (47) (21) (25) (7) (10) (5)
Amortization of actuarial loss 34 8 9 4 5 1 4 3
Amortization of prior service credit (8) (2) — (1) — — (1) (4)
Amortization of settlement charges 2 2 — 1 — — — —
Net periodic pension costs $ (13) $ (1) $ (8) $ (1) $ (5) $ (1) $ — $ (2)

Six Months Ended June 30, 2022
Duke Duke Duke Duke Duke
Duke Energy Progress Energy Energy Energy Energy
(in millions) Energy Carolinas Energy Progress Florida Ohio Indiana Piedmont
Service cost $ 81 $ 26 $ 23 $ 14 $ 10 $ 2 $ 4 $ 3
Interest cost on projected benefit obligation 117 27 36 16 20 6 10 4
Expected return on plan assets (281) (76) (93) (44) (48) (11) (19) (12)
Amortization of actuarial loss 47 10 13 7 6 2 5 3
Amortization of prior service credit (9) (2) — — — — (1) (4)
Amortization of settlement charges 4 3 1 1 — — — —
Net periodic pension costs $ (41) $ (12) $ (20) $ (6) $ (12) $ (1) $ (1) $ (6)


		Six Months Ended June 30, 2021																	Three Months Ended March 31, 2023
				Duke				Duke		Duke		Duke		Duke							Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy					Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont		(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	Service cost	$	88	$	28	$	25	$	15	$	11	$	2	$	5	$	3	Service cost	$	30	$	10	$	9	$	5	$	3	$	1	$	1	$	1
Interest cost on projected benefit obligation	Interest cost on projected benefit obligation	110		25		35		15		19		7		9		4		Interest cost on projected benefit obligation	86		21		27		12		14		4		7		2
Expected return on plan assets	Expected return on plan assets	(279)		(70)		(94)		(42)		(51)		(14)		(20)		(10)		Expected return on plan assets	(147)		(40)		(50)		(23)		(26)		(6)		(10)		(5)
Amortization of actuarial loss	Amortization of actuarial loss	67		15		19		9		10		3		7		5		Amortization of actuarial loss	2		—		1		—		1		—		1		—
Amortization of prior service credit	Amortization of prior service credit	(15)		(4)		(1)		(1)		—		—		(1)		(5)		Amortization of prior service credit	(3)		—		—		—		—		—		—		(2)
Amortization of settlement charges	Amortization of settlement charges	4		3		1		1		—		—		—		—		Amortization of settlement charges	5		2		1		1		—		—		—		1
Net periodic pension costs	Net periodic pension costs	$	(25)	$	(3)	$	(15)	$	(3)	$	(11)	$	(2)	$	—	$	(3)	Net periodic pension costs	$	(27)	$	(7)	$	(12)	$	(5)	$	(8)	$	(1)	$	(1)	$	(3)

8580


FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS


	Three Months Ended March 31, 2022
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Service cost	$	40	$	12	$	12	$	7	$	4	$	1	$	2	$	1
Interest cost on projected benefit obligation	58		14		18		8		10		3		5		2
Expected return on plan assets	(140)		(38)		(46)		(22)		(24)		(5)		(9)		(6)
Amortization of actuarial loss	24		5		6		3		3		1		2		2
Amortization of prior service credit	(5)		(1)		—		—		—		—		—		(2)
Amortization of settlement charges	2		1		1		—		—		—		—		—
Net periodic pension costs	$	(21)	$	(7)	$	(9)	$	(4)	$	(7)	$	—	$	—	$	(3)

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, 2022,~~March 31, 2023, and ~~2021.~~2022.

OTHER POST-RETIREMENT BENEFIT PLANS

Net periodic costs for OPEB plans were not material for the three ~~and six~~ months ended ~~June 30, 2022,~~March 31, 2023, and ~~2021.~~2022.

~~15.~~16. INCOME TAXES

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					Three Months Ended
		June 30,				June 30,					March 31,
		2022		2021		2022		2021				2023		2022
Duke Energy	Duke Energy	8.0	%	4.9	%	3.6	%	6.8	%	Duke Energy		13.8	%	2.9	%
Duke Energy Carolinas	Duke Energy Carolinas	7.3	%	0.4	%	7.4	%	4.3	%	Duke Energy Carolinas		11.4	%	7.4	%
Progress Energy	Progress Energy	16.8	%	8.3	%	16.4	%	10.2	%	Progress Energy		16.7	%	15.9	%
Duke Energy Progress	Duke Energy Progress	13.8	%	2.7	%	13.9	%	5.6	%	Duke Energy Progress		14.6	%	14.0	%
Duke Energy Florida	Duke Energy Florida	20.2	%	19.0	%	20.1	%	19.1	%	Duke Energy Florida		19.9	%	20.1	%
Duke Energy Ohio	Duke Energy Ohio	13.8	%	22.0	%	(54.7)	%	16.1	%	Duke Energy Ohio		16.7	%	(266.7)	%
Duke Energy Indiana	Duke Energy Indiana	8.6	%	15.6	%	(48.9)	%	16.7	%	Duke Energy Indiana		17.2	%	31.9	%
Piedmont	Piedmont	85.7	%	33.3	%	11.4	%	10.8	%	Piedmont		17.7	%	13.4	%

The increase in the ETR for Duke Energy for the three months ended ~~June 30, 2022, was primarily due to the amortization of excess deferred taxes in relation to higher pretax income.~~

The decrease in the ETR for Duke Energy for the six months ended June 30, 2022, was primarily due to an increase in the amortization of excess deferred taxes related to the Duke Energy Ohio MGP Settlement.

~~The increase in the ETR for Duke Energy Carolinas for the three and six months ended June 30, 2022, was primarily due to the amortization of excess deferred taxes in relation to higher pretax income.~~

~~The increase in the ETR for Progress Energy for the three and six months ended June 30, 2022,~~March 31, 2023, was primarily due to a decrease in the amortization of excess deferred taxes.

The increase in the ETR for Duke Energy ~~Progress~~Carolinas for the three ~~and six~~ months ended ~~June 30, 2022,~~March 31, 2023, was primarily due to a decrease in the amortization of excess deferred taxes.

The increase in the ETR for Duke Energy ~~Florida for the three months ended June 30, 2022, was primarily due to the amortization of excess deferred taxes in relation to higher pretax income.~~

~~The decrease in the ETR for Duke Energy~~ Ohio for the three months ended ~~June 30, 2022,~~March 31, 2023, was primarily due to ~~an increase in the amortization of excess deferred taxes.~~

~~The~~a decrease ~~in the ETR for Duke Energy Ohio for the six months ended June 30, 2022, was primarily due to an increase~~ in the amortization of excess deferred taxes related to the MGP ~~Settlement.~~Settlement recorded in the prior year.

The decrease in the ETR for Duke Energy Indiana for the three months ended ~~June 30, 2022, was primarily due to an increase in the amortization of excess deferred taxes from the coal ash impairment based on the Indiana Supreme Court Opinion.~~

~~The decrease in the ETR for Duke Energy Indiana for the six months ended June 30, 2022,~~March 31, 2023, was primarily due to the coal ash impairment in the prior year, based on the Indiana Supreme Court ~~Opinion and the associated amortization of excess deferred taxes.~~Opinion.

The increase in the ETR for Piedmont for the three months ended ~~June 30, 2022,~~March 31, 2023, was primarily due to ~~certain favorable tax credits,~~a decrease in ~~relation to pretax losses.~~the amortization of excess deferred taxes.

~~16.~~17. SUBSEQUENT EVENTS

For information on subsequent events related to ~~business segments,~~ regulatory matters, ~~and~~ commitments and contingencies, and debt and credit facilities, see Notes ~~2, 3~~4, 5 and 4.6, respectively.

8681


MD&A			DUKE ENERGY

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

DUKE ENERGY

Duke Energy is an energy company headquartered in Charlotte, North Carolina. Duke Energy operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated financial information, it necessarily includes the results of the Subsidiary Registrants, which along with Duke Energy are collectively referred to as the Duke Energy Registrants.

Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the ~~six~~three months ended ~~June 30, 2022,~~March 31, 2023, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Executive Overview

Advancing Our Clean Energy Transformation

During the ~~second~~first quarter of ~~2022,~~2023, we continued to execute on our clean energy transformation, delivering strong, sustainable value for shareholders, customers, communities and employees.

•In ~~June~~November 2022, ~~Duke Energy Florida completed The Fort Green Renewable Energy Center,~~ the ~~first of 10 solar sites, totaling 750 MW, that are part~~Board approved pursuing the sale of the ~~Duke Energy Florida's new community solar program, Clean Energy Connection. Through~~Commercial Renewables business, excluding the ~~program, Duke Energy Florida customers can subscribe~~offshore wind contract for Carolina Long Bay. We are continuing to ~~solar power~~market the business through three disposal groups. As we look forward to the remainder of this decade and ~~earn credits toward their electricity bills without having~~beyond, we have line of sight to ~~install or maintain their own equipment.~~significant renewable, grid and other investment opportunities within our faster-growing regulated operations. We expect to dispose of these groups in the second half of 2023. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for additional information.

•In ~~May 2022,~~March 2023, we ~~were awarded one of two~~began operating the largest battery system in North Carolina, ~~offshore wind lease sites held by~~an 11-MW project in Onslow County, which will operate in conjunction with an adjacent 13-MW solar facility located on a leased site within Marine Corps Base (MCB) Camp Lejeune. Both projects are connected to a Duke Energy substation and will be used to serve all Duke Energy Progress customers. As part of an ongoing collaboration with the ~~Bureau~~Department of ~~Ocean~~Defense, further work could enable the solar and battery systems to improve the resiliency of MCB Camp Lejeune against outages.

•In March 2023, Duke Energy ~~Management. The approximately 55,000-acre site in~~Florida announced two new solar projects as part of Clean Energy Connection, the ~~Atlantic Ocean east of Wilmington could support up to 1.6 gigawatts of potential offshore wind energy,~~company's community solar program. Once complete, each 74.9-MW solar facility will generate enough carbon-free electricity to power ~~nearly 375,000~~what would be the equivalent to around 23,000 homes. ~~Securing this lease creates optionality for future offshore wind if~~Additionally, in March 2023, Duke Energy Florida announced its first floating solar array pilot. The project will feature more than 1,800 floating solar modules and occupy approximately 2 acres of water surface on an existing cooling pond at the ~~NCUC determines it's~~Duke Energy Hines Energy Complex in Bartow. The pilot is part of Duke Energy's Vision Florida program, which is designed to test innovative projects such as microgrids and battery energy storage, among others, to prepare the ~~least cost path~~power grid for a clean energy future. We now operate 1,200 MW of solar in Florida, with plans to ~~achieve North Carolina's interim and long-term carbon reduction goals.~~continue adding approximately 300 MW a year going forward.

Regulatory Activity. During the ~~second~~first quarter of ~~2022,~~2023, we continued to monitor developments while moving our regulatory strategy forward. See Note 34 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.

•In ~~June 2022,~~February 2023, the PSCSC approved a constructive comprehensive settlement with all parties in the Duke Energy ~~Ohio filed an application with the PUCO for a regulatory review of our natural gas base rates. Since our last Ohio natural gas~~Progress South Carolina rate ~~case, which we filed in 2012,~~case. Duke Energy ~~Ohio has invested $1.4 billion in a variety of capital investments, including the installation of~~Progress implemented new ~~infrastructure to enable a robust system for customers.~~customer rates effective April 1, 2023.

•In ~~June 2022, bipartisan legislation was signed into law that gives~~February 2023, the ~~PSCSC authority~~Indiana Court of Appeals issued an opinion finding certain coal ash related expenditures should be disallowed under a statute specific to ~~approve securitization of storm costs in South Carolina. This~~federally mandated projects and also denied a petition for rehearing on the matter. Duke Energy Indiana is ~~an important tool~~evaluating whether to ~~provide our customers significant savings while helping our company recover storm restoration costs.~~file a petition to transfer the case to the Indiana Supreme Court.

•In June 2022, the IURC approved Duke Energy Indiana's TDSIC 2.0 plan in its entirety, with no modifications. This six-year plan will continue to build upon electric grid modernization efforts to improve the reliability and resilience of the statewide network of power lines and infrastructure to improve service to more than 870,000 customers.

•~~In May 2022,~~January 2023, Duke Energy Carolinas filed a rate case in North Carolina, which incorporates elements of PBR and MYRP as allowed under HB 951. HB 951 provides the framework for many of the benefits of modernized regulatory constructs in North Carolina under the direction of the NCUC. Duke Energy Progress filed ~~a proposed Carbon Plan with the NCUC. In keeping with the framework of HB 951, the proposed plan presents two pathways consisting of several different portfolios~~its first rate case utilizing these benefits, including both PBR and ~~includes a path to achieve 70% carbon dioxide emissions reduction by 2030, while offering regulators multiple options that balance affordability~~MYRP, in North Carolina in October 2022, and ~~reliability for customers. All portfolios plan for the retirement of all remaining coal generation resources by the end of 2035~~reached partial settlements on key matters in April and include significant expansion of zero-carbon resources, such as renewable technologies including solar, onshore and offshore wind, greater integration of battery and pumped-hydro energy storage, expanded energy efficiency and demand response and the deployment of new zero-emitting load-following resources such as new small modular nuclear resources as well as hydrogen solutions in later years to achieve carbon neutrality from electric generating facilities by 2050.May 2023.

Matters Impacting Future Results

The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.

Regulatory Matters

Coal Ash Costs

Future spending of coal ash costs, including amounts recorded for depreciation and liability accretion, is expected to ~~continue to~~ be ~~deferred and~~ recovered in future rate cases or rider filings. The majority of spend is expected to occur over the next ~~15-20~~10 to 15 years.

8782


MD&A			MATTERS IMPACTING FUTURE RESULTS

Duke Energy Indiana has interpreted the CCR (Coal Combustion Residuals) rule to identify the coal ash basin sites impacted and has assessed the amounts of coal ash subject to the rule and a method of compliance. In 2020, the Hoosier Environmental Council filed a petition challenging the Indiana Department of Environmental Management's (IDEM) partial approval of five of Duke Energy Indiana’s ash pond site closure plans at Gallagher Station. The petition does not challenge the other basin closures approved by IDEM at other Indiana stations. Interpretation of the requirements of the CCR rule is subject to further legal challenges and regulatory approvals, which could result in additional coal ash basin closure requirements, higher costs of compliance and greater AROs. Additionally, Duke Energy Indiana has retired facilities that are not subject to the CCR rule. Duke Energy Indiana may incur costs at these facilities to comply with environmental regulations or to mitigate risks associated with on-site storage of coal ash. In January 2022, Duke Energy Indiana received a letter from the EPA regarding application and interpretation of the CCR ~~rule.~~rule for some of the ash basins at its Gallagher Station. In response to the letter, Duke Energy Indiana has submitted revised closure plans for those basins to the Indiana Department of Environmental Management (IDEM). Those closure plans are pending review by IDEM. See ~~Note~~Notes 4 and 5 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Commitments and ~~Contingencies"~~Contingencies," respectively, for more information.

Fuel Cost Recovery

As a result of rapidly rising commodity costs during 2022, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues has led to an increase in the under collection of fuel costs from customers at certain jurisdictions including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. These amounts have been deferred in regulatory assets and have impacted the cash flows of the registrants, including increased borrowings to temporarily finance related expenditures until recovery. The Duke Energy Registrants are working with various state commissions on the timing of recovery of these amounts.

Commercial Renewables

~~On August 4,~~In November 2022, Duke Energy ~~announced~~committed to a ~~strategic review of~~plan to sell the Commercial Renewables ~~business segment.~~Disposal Groups. The review remains in the preliminary stage and there have been no binding or non-binding offers requested or submitted. Duke Energy can provide no assurance that this process will result in a transaction and there is no specific timeline for execution of a potential transaction. If the potential sale were to progress it could result in classification of the Commercial Renewables ~~segment~~Disposal Groups were classified as ~~assets~~ held for sale and as discontinued ~~operations. If~~operations in the fourth quarter of 2022. Marketing of the disposal groups continues and Duke Energy ~~is unable~~expects to ~~recover its book value~~complete the sales of ~~these assets through a sale, it could result in an impairment.~~

~~Duke Energy continues to monitor recoverability of renewable merchant plants located~~the disposal groups in the ~~ERCOT West~~second half of 2023. If necessary, the loss on the sale of the assets will be updated based on market changes or the final sales price, including all closing adjustments, and could be materially different than the estimated loss. Additionally, certain other costs resulting from the transactions may be recognized in the ~~PJM West market, due to fluctuating market pricing and long-term forecasted energy prices. Based on~~period incurred. Proceeds from the ~~most recent recoverability test, the carrying value for the assets under review continues~~sales are expected to be supported by the expected cash flows. A decline in energy market pricing or other factors unfavorably impacting the economics would likely result in a future impairment. Impairment of these assets could result in adverse impacts.used for debt avoidance. For ~~additional~~more information, see Note 2 to the ~~Condensed~~ Consolidated Financial Statements, ~~"Business Segments.~~"Dispositions."

In February 2021, a severe winter storm impacted certain Commercial Renewables assets in Texas. Extreme weather conditions limited the ability for these solar and wind facilities to generate and sell electricity into the ERCOT market. Duke Energy (Parent) has been named in multiple lawsuits arising out of this winter storm. The legal actions against Duke Energy (Parent) related to these lawsuits will remain with Duke Energy (Parent) and any future activity related to Duke Energy (Parent) as a defendant in these lawsuits will be presented in discontinued operations. For more information, see Note 45 to the Condensed Consolidated Financial Statements, "Commitments and Contingencies."

Supply Chain

Duke Energy is monitoring supply chain disruptions, which could impact the timing of ~~in service or economics of projects~~in-service dates and may result in adverse impacts on operating results.

The company is also monitoring the potential impacts on future financial results and clean energy goals due to supply chain challenges regarding the availability of transformers and renewable components like solar panels ~~as a result~~and batteries.

Other

Duke Energy is monitoring general market conditions, including rising interest rates, and evaluating the impact to its results of operations, financial position and cash flows in the U.S. Department of Commerce investigation into the potential circumvention of anti-dumping and countervailing duties by certain Chinese companies. In June 2022, in response to the uncertainty of solar supplies resulting from the investigation, a 24-month tariff exemption for solar panels from four Southeast Asian nations was declared.future.

Results of Operations

Non-GAAP Measures

Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures, ~~such as~~ adjusted earnings and adjusted EPS, discussed below. ~~Generally, a non-GAAP~~Non-GAAP financial ~~measure is a~~measures are numerical ~~measure~~measures of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. As discussed below, special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Earnings (Loss) Per Share, respectively.

Special items included in the periods presented below include the following, which management believes do not reflect ongoing costs:

•Regulatory Matters represents the net impact of charges related to the 2022 Indiana Supreme Court ruling on coal ash.

•~~Mark-to-Market represents~~Discontinued operations includes an estimated impairment on the ~~income statement impact~~sale of ~~derivative instruments that do not qualify for hedge accounting or regulatory accounting.~~

•~~Workplace~~the Commercial Renewables business in the current year and ~~workforce realignment represents costs attributable to business transformation, including long-term real estate strategy changes and workforce realignment.~~

•~~Gas Pipeline Investments represents additional exit obligations related to ACP.~~results from Duke Energy's Commercial Renewables Disposal Groups.

Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

GAAP reported EPS was ~~$1.14~~$1.01 for the ~~second~~first quarter of ~~2022~~2023 compared to ~~$0.96~~$1.08 in the ~~second~~first quarter of ~~2021. In addition to the drivers below,~~2022. GAAP reported EPS ~~increased~~decreased primarily due to ~~workplace~~unfavorable weather, the estimated impairment on the sale of the Commercial Renewables business, higher interest expense and ~~workforce realignment costs~~lower volumes, partially offset by charges from the Indiana Supreme Court ruling on coal ash in the prior year,. growth from riders and other margin, lower storm costs and favorable rate case impacts.

8883


MD&A			DUKE ENERGY

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s ~~second~~first quarter ~~2022~~2023 adjusted EPS was ~~$1.14~~$1.20 compared to ~~$1.15~~$1.29 for the ~~second~~first quarter of ~~2021.~~2022. The decrease in adjusted EPS was primarily due to ~~higher operation and maintenance expense due to plant outage timing,~~unfavorable weather, higher interest expense and ~~the impact of GIC minority interest,~~lower volumes, partially offset by ~~favorable weather, volumes~~growth from riders and ~~positive~~other margin, lower storm costs and favorable rate case ~~contributions.~~impacts.

The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.

Three Months Ended June 30,
2022 2021
(in millions, except per share amounts) Earnings EPS Earnings EPS
GAAP Reported Earnings/GAAP Reported EPS $ 893 $ 1.14 $ 751 $ 0.96
Adjustments:
Regulatory Matters(a)
(16) (0.02) — —
Mark-to-Market(b)
16 0.02 — —
Workplace and Workforce Realignment(c)
— — 135 0.18
Gas Pipeline Investments(d)
— — 12 0.01
Adjusted Earnings/Adjusted EPS $ 893 $ 1.14 $ 898 $ 1.15

~~(a)Net of $2 million in noncontrolling interests.~~

~~(b)Net of tax benefit of $5 million.~~

~~(c)Net of tax benefit of $40 million.~~

~~(d)Net of tax benefit of $4 million.~~

~~Six Months Ended June 30, 2022, as compared to June 30, 2021~~

GAAP Reported EPS was $2.22 for the six months ended June 30, 2022, compared to $2.21 for the six months ended June 30, 2021. In addition to the drivers below, GAAP reported EPS increased due to workplace and workforce realignment costs in the prior year, partially offset by ~~the net impact of~~ ~~charges related to the 2022 Indiana Supreme Court ruling on coal ash.~~

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $2.45 for the six months ended June 30, 2022, compared to $2.41 for the six months ended June 30, 2021. The increase in adjusted EPS was primarily due to higher volumes, positive rate case contributions and favorable weather, partially offset by higher operations and maintenance expense, including storm costs, higher interest expense, the impact of GIC minority interest sale and lower returns on investments.

~~The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.~~


		Six Months Ended June 30,									Three Months Ended March 31,
		2022				2021					2023				2022
(in millions, except per share amounts)	(in millions, except per share amounts)	Earnings		EPS		Earnings		EPS		(in millions, except per share amounts)	Earnings		EPS		Earnings		EPS

GAAP Reported Earnings/GAAP Reported EPS	GAAP Reported Earnings/GAAP Reported EPS	$	1,711	$	2.22	$	1,704	$	2.21	GAAP Reported Earnings/GAAP Reported EPS	$	765	$	1.01	$	818	$	1.08
Adjustments:	Adjustments:									Adjustments:

Regulatory Matters(a)	Regulatory Matters(a)	157		0.21		—		—		Regulatory Matters(a)	—		—		173		0.23
Mark-to-Market(b)		16		0.02		—		—
Workplace and Workforce Realignment(c)		—		—		135		0.18
Gas Pipeline Investments(d)		—		—		17		0.02

Discontinued Operations(b)										Discontinued Operations(b)	145		0.19		(12)		(0.02)
Adjusted Earnings/Adjusted EPS	Adjusted Earnings/Adjusted EPS	$	1,884	$	2.45	$	1,856	$	2.41	Adjusted Earnings/Adjusted EPS	$	910	$	1.20	$	979	$	1.29

(a)Net of tax benefit of ~~$80~~$62 million. $211 million recorded within Impairment of assets and ~~$20~~other charges, $46 million ~~in noncontrolling interests.~~within Regulated electric (Operating revenues) and $22 million within Net Loss Attributable to Noncontrolling Interests.

(b)~~Net~~Recorded in Loss from Discontinued Operations, net of tax, ~~benefit of $5 million.~~

~~(c)~~and Net ~~of tax benefit of $40 million.~~

~~(d)Net of tax benefit of $5 million.~~Loss Attributable to Noncontrolling Interests.

SEGMENT RESULTS

The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.

Duke Energy's segment structure includes the following segments: ~~Electric Utilities~~EU&I and ~~Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.~~GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 23 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.

Electric Utilities and Infrastructure


	Three Months Ended March 31,
(in millions)		2023		2022		Variance
Operating Revenues		$	6,398	$	6,002	$	396
Operating Expenses
Fuel used in electric generation and purchased power		2,396		1,837		559
Operation, maintenance and other		1,269		1,426		(157)
Depreciation and amortization		1,096		1,131		(35)
Property and other taxes		348		337		11
Impairment of assets and other charges		7		214		(207)
Total operating expenses		5,116		4,945		171
Gains on Sales of Other Assets and Other, net		1		2		(1)
Operating Income		1,283		1,059		224
Other Income and Expenses, net		130		114		16
Interest Expense		452		376		76
Income Before Income Taxes		961		797		164
Income Tax Expense		149		83		66
Less: Income (Loss) Attributable to Noncontrolling Interest		21		(9)		30
Segment Income		$	791	$	723	$	68

Duke Energy Carolinas GWh sales		20,919		22,549		(1,630)
Duke Energy Progress GWh sales		15,345		17,969		(2,624)
Duke Energy Florida GWh sales		8,990		9,902		(912)
Duke Energy Ohio GWh sales		5,642		5,997		(355)
Duke Energy Indiana GWh sales		7,350		7,950		(600)
Total Electric Utilities and Infrastructure GWh sales		58,246		64,367		(6,121)
Net proportional MW capacity in operation		49,784		49,340		444

Three Months Ended March 31, 2023, as compared to March 31, 2022

EU&I’s higher segment income is due to the prior year Indiana Supreme Court ruling on recovery of certain coal ash costs and lower storm costs, partially offset by higher interest expense. The following is a detailed discussion of the variance drivers by line item.


MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

~~Electric Utilities and Infrastructure~~

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2022 2021 Variance 2022 2021 Variance
Operating Revenues $ 6,135 $ 5,335 $ 800 $ 12,137 $ 10,616 $ 1,521
Operating Expenses
Fuel used in electric generation and purchased power 1,991 1,434 557 3,828 2,896 932
Operation, maintenance and other 1,328 1,262 66 2,754 2,544 210
Depreciation and amortization 1,110 1,013 97 2,241 2,070 171
Property and other taxes 331 308 23 668 619 49
Impairment of assets and other charges (8) 1 (9) 206 1 205
Total operating expenses 4,752 4,018 734 9,697 8,130 1,567
Gains on Sales of Other Assets and Other, net 3 2 1 5 2 3
Operating Income 1,386 1,319 67 2,445 2,488 (43)
Other Income and Expenses, net 153 97 56 267 201 66
Interest Expense 391 361 30 767 701 66
Income Before Income Taxes 1,148 1,055 93 1,945 1,988 (43)
Income Tax Expense 158 120 38 241 233 8
Less: Income Attributable to Noncontrolling Interest 16 — 16 7 — 7
Segment Income $ 974 $ 935 $ 39 $ 1,697 $ 1,755 $ (58)
Duke Energy Carolinas GWh sales 22,022 20,362 1,660 44,571 42,324 2,247
Duke Energy Progress GWh sales 16,915 15,799 1,116 34,884 32,336 2,548
Duke Energy Florida GWh sales 12,340 11,194 1,146 22,242 19,748 2,494
Duke Energy Ohio GWh sales 5,564 5,738 (174) 11,561 11,742 (181)
Duke Energy Indiana GWh sales 7,644 7,366 278 15,594 15,092 502
Total Electric Utilities and Infrastructure GWh sales 64,485 60,459 4,026 128,852 121,242 7,610
Net proportional MW capacity in operation 49,459 49,749 (290)

~~Three Months Ended June 30, 2022, as compared to June 30, 2021~~

Electric Utilities and Infrastructure’s higher segment income is due to favorable weather, favorable retail sales volumes, and a favorable spent nuclear fuel storage settlement with the Department of Energy, partially offset by higher depreciation. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

•a ~~$459~~$606 million increase in fuel revenues primarily due to higher fuel prices and ~~retail sales volumes;~~

•~~a $108 million increase in retail base rate pricing due to general rate cases in North Carolina, net of rider impacts as well as multiyear rate adjustments in Florida;~~

•~~a $91 million increase in retail sales due to favorable weather~~cost recovery in the current year;

•a ~~$47~~$43 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers compared to the prior year at Duke Energy Carolinas and increased Storm Protection Plan rider revenue driven by higher debt and equity returns from increased capital expenditures in the current year at Duke Energy Florida;

•a $37 million increase due to the provision for rate refund recognized in the prior year related to the Indiana Supreme Court ruling; and

•a $33 million increase in price due to 2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in prior year.

Partially offset by:

•a $191 million decrease in retail sales due to unfavorable weather compared to prior year;

•a $99 million decrease in weather-normal retail sales volumes; and

•a $61 million decrease in wholesale revenues primarily due to ~~higher~~lower capacity ~~volumes; and~~

•~~a $28 million increase in weather-normal retail sales volumes.~~revenues.

Operating Expenses. The variance was driven primarily by:

•a ~~$557~~$559 million increase in fuel used in electric generation and purchased power due to higher fuel prices and ~~volumes from customer demand;~~higher amortizations of deferred fuel.

Partially offset by:

•a $207 million decrease in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs in the prior year;

•a ~~$97~~$157 million ~~increase in depreciation and amortization primarily due to higher plant in service and resolution of prior year rate cases;~~

•~~a $66 million increase~~decrease in operation, maintenance and other primarily driven by ~~higher outage and maintenance costs;~~lower storm costs in the current year; and

•a ~~$23~~$35 million ~~increase~~decrease in ~~property~~depreciation and ~~other taxes~~amortization primarily due to ~~higher property taxes as well as higher revenue related taxes.~~the amortization of the Department of Energy settlement regulatory liability at Duke Energy Florida.

Other Income and Expenses, net. The increase is primarily due to ~~a 2022 settlement with the Department of Energy over spent nuclear fuel storage and~~ higher ~~AFUDC equity.~~returns on deferred costs.

Interest Expense. The variance was primarily driven by higher interest ~~expense on excess deferred tax liabilities~~rates and ~~higher~~ outstanding ~~debt.~~debt balances.


~~MD&A~~			~~SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE~~

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes. The ETRs for the three months ended ~~June 30,~~March 31, 2023, and 2022, were 15.5% and ~~2021, were 13.8% and 11.4~~10.4%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of excess deferred taxes.

~~Six~~Gas Utilities and Infrastructure


	Three Months Ended March 31,
(in millions)		2023		2022		Variance
Operating Revenues		$	911	$	1,032	$	(121)
Operating Expenses
Cost of natural gas		298		481		(183)
Operation, maintenance and other		119		182		(63)
Depreciation and amortization		85		79		6
Property and other taxes		31		41		(10)
Impairment of assets and other charges		1		—		1
Total operating expenses		534		783		(249)

Operating Income		377		249		128



Other Income and Expenses, Net		23		17		6
Interest Expense		50		40		10
Income Before Income Taxes		350		226		124
Income Tax Expense (Benefit)		63		(28)		91

Segment Income		$	287	$	254	$	33

Piedmont LDC throughput (dekatherms)		161,463,793		180,187,101		(18,723,308)
Duke Energy Midwest LDC throughput (Mcf)		32,001,725		37,246,072		(5,244,347)

Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

~~Electric Utilities and Infrastructure’s lower segment income is due to the Indiana Supreme Court ruling on recovery of certain coal ash costs and higher storm costs, partially offset~~GU&I’s results were impacted primarily by ~~higher retail sales volumes.~~margin growth. The following is a detailed discussion of the variance drivers by line item.

~~Operating Revenues.~~ ~~The variance was driven primarily by:~~

•~~a $759 million increase in fuel revenues primarily due to higher fuel prices and retail sales volumes;~~

•~~a $271 million increase in weather-normal retail sales volumes;~~

•~~a $234 million increase in retail base rate pricing due to general rate cases in North Carolina, net of rider impacts as well as multiyear rate adjustments in Florida;~~

•~~an $82 million increase in retail sales due to favorable weather compared to prior year;~~

•~~an $81 million increase in rider revenues primarily due to higher sales volumes; and~~

•~~a $77 million increase in wholesale revenues primarily due to higher capacity volumes.~~

~~Partially offset by~~

•~~a $53 million decrease due to the Indiana Supreme Court ruling on recovery of certain coal ash costs.~~

~~Operating Expenses.~~ ~~The variance was driven primarily by:~~

•~~a $932 million increase in fuel used in electric generation and purchased power due to higher fuel prices and volumes from customer demand;~~

•~~a $210 million increase in operation, maintenance and other primarily driven by higher storm costs and higher outage and maintenance costs;~~

•~~a $205 million increase in impairment of assets and other charges primarily due~~ ~~to the Indiana Supreme Court ruling on recovery of certain coal ash costs~~;

•a $171 million increase in depreciation and amortization primarily due to higher plant in service and resolution of prior year rate cases, partially offset by lower depreciation related to the extension of the lives of nuclear facilities; and

•~~a $49 million increase in property and other taxes primarily due to higher property taxes as well as higher revenue related taxes.~~

~~Other Income and Expenses, net.~~ ~~The increase is primarily due to a 2022 settlement with the Department of Energy over spent nuclear fuel storage and higher AFUDC equity.~~

~~Interest Expense.~~ ~~The variance was primarily driven by interest expense on excess deferred tax liabilities and higher outstanding debt.~~

~~Income Tax Expense.~~ The increase in tax expense was primarily due to a decrease in the amortization of excess deferred taxes, partially offset by a decrease in pretax income. The ETRs for the six months ended June 30, 2022, and 2021, were 12.4% and 11.7%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of excess deferred taxes.


~~MD&A~~			~~SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE~~

~~Gas Utilities and Infrastructure~~

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2022 2021 Variance 2022 2021 Variance
Operating Revenues $ 453 $ 327 $ 126 $ 1,485 $ 1,102 $ 383
Operating Expenses
Cost of natural gas 189 79 110 670 355 315
Operation, maintenance and other 113 98 15 295 200 95
Depreciation and amortization 82 74 8 161 142 19
Property and other taxes 33 27 6 74 62 12
Total operating expenses 417 278 139 1,200 759 441
Gains on Sales of Other Assets and Other, net 4 — 4 4 — 4
Operating Income 40 49 (9) 289 343 (54)
Other Income and Expenses, Net 19 10 9 36 27 9
Interest Expense 42 35 7 82 68 14
Income Before Income Taxes 17 24 (7) 243 302 (59)
Income Tax (Benefit) Expense (2) 7 (9) (30) 40 (70)
Segment Income $ 19 $ 17 $ 2 $ 273 $ 262 $ 11
Piedmont LDC throughput (dekatherms) 126,530,274 106,034,615 20,495,659 306,717,375 255,661,197 51,056,178
Duke Energy Midwest LDC throughput (Mcf) 16,531,986 14,842,906 1,689,080 53,762,623 51,951,909 1,810,714

~~Three Months Ended June 30, 2022, as compared to June 30, 2021~~

Gas Utilities and Infrastructure’s results were impacted primarily by margin growth and certain favorable tax credits, partially offset by higher operation and maintenance costs. The following is a detailed discussion of the variance drivers by line item.

~~Operating Revenues.The variance was driven primarily by:~~

•~~a $110 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs; and~~

•~~a $7 million increase due to base rate increases.~~

~~Operating Expenses.The variance was driven primarily by:~~

•~~a $110 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs; and~~

•a $15 million increase in operations, maintenance and other primarily due to higher costs for natural gas pipeline safety and integrity work, labor and benefits, customer repair plan program, and material and security purchases.

~~Income Tax Benefit.~~ ~~The decrease in tax expense was primarily due to certain favorable tax credits and an increase in the amortization of excess deferred taxes.~~The ETRs for the three months ended June 30, 2022, and 2021, were (11.8)% and 29.2%, respectively. The decrease in the ETR was primarily due to certain favorable tax credits and an increase in the amortization of excess deferred taxes.

~~Six Months Ended June 30, 2022, as compared to June 30, 2021~~

Gas Utilities and Infrastructure’s results were impacted primarily by margin growth partially offset by higher operation and maintenance costs. The following is a detailed discussion of the variance drivers by line item.

~~Operating Revenues.The variance was driven primarily by:~~

•~~a $315 million increase due to higher natural gas costs passed through to customers and increased off-system sales natural gas costs, partially offset by lower residential volumes;~~

•~~a $41 million increase due to base rate increases;~~

•~~a $15 million increase due to rider revenues related to Ohio Capital Expenditure Program (CEP); and~~

•~~a $7 million increase due to customer growth.~~

~~Partially offset by:~~

•~~a $15 million decrease due to the MGP settlement.~~

9285


MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Operating Revenues.The variance was driven primarily by:

•a $183 million decrease due to lower natural gas costs passed through to customers, lower volumes, and decreased off-system sales natural gas costs.

Partially offset by:

•a $15 million increase due to the MGP Settlement in prior year;

•a $13 million increase due to secondary marketing sales;

•a $13 million increase due to rider revenues related to Ohio CEP;

•a $6 million increase due to North Carolina IMR; and

•a $5 million increase due to customer growth.

Operating Expenses. The variance was driven primarily by:

•a ~~$315~~$183 million ~~increase~~decrease in cost of natural gas due to ~~higher~~lower natural gas costs passed through to customers, lower volumes, and ~~increased~~decreased off-system sales natural gas ~~costs, partially offset by lower residential volumes;~~costs;

•a ~~$95~~$63 million ~~increase~~decrease in operations, maintenance and other primarily due to the MGP ~~settlement and higher costs for natural gas pipeline safety and integrity work, labor and benefits, customer repair plan program, and material and security purchases;~~

•~~a $19 million increase~~Settlement in ~~depreciation and amortization due to additional plant in service and lower CEP deferrals; and~~

•~~a $12 million increase in property and other taxes due to lower CEP deferrals.~~prior year.

Interest Expense. The increase was primarily due to ~~lower AFUDC~~higher interest rates and outstanding debt ~~income and higher outstanding debt.~~balances.

Income Tax ~~Benefit.~~Expense. The ~~decrease~~increase in tax expense was primarily due to ~~an increase~~a decrease in the amortization of excess deferred taxes related to the ~~Ohio~~ MGP Settlement recorded in the prior year and ~~a decrease~~an increase in pretax income. The ETRs for the ~~six~~three months ended ~~June 30,~~March 31, 2023, and 2022, were 18.0% and ~~2021, were (12.3)% and 13.2%~~-12.4%, respectively. The ~~decrease~~increase in the ETR was primarily due ~~to an increase~~a decrease in the amortization of excess deferred taxes related to the ~~Ohio~~ MGP ~~Settlement.~~Settlement recorded in the prior year.

~~Commercial Renewables~~Other

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2022 2021 Variance 2022 2021 Variance
Operating Revenues $ 121 $ 119 $ 2 $ 242 $ 238 $ 4
Operating Expenses
Operation, maintenance and other 82 78 4 164 150 14
Depreciation and amortization 60 56 4 120 109 11
Property and other taxes 10 9 1 20 18 2
Total operating expenses 152 143 9 304 277 27
Losses on Sales of Other Assets and Other, net — — — (1) — (1)
Operating Loss (31) (24) (7) (63) (39) (24)
Other Income and Expenses, net — 3 (3) — (22) 22
Interest Expense 19 20 (1) 37 33 4
Loss Before Income Taxes (50) (41) (9) (100) (94) (6)
Income Tax Benefit (36) (21) (15) (69) (50) (19)
Add: Loss Attributable to Noncontrolling Interests 44 67 (23) 72 118 (46)
Segment Income $ 30 $ 47 $ (17) $ 41 $ 74 $ (33)
Renewable plant production, GWh 3,430 2,787 643 6,418 5,375 1,043
Net proportional MW capacity in operation(a)
4,759 4,474 285

~~(a)~~Certain projects are included in tax equity structures where investors have differing interests in the project's economic attributes. One hundred percent of the tax equity project's capacity is included in the table above.


	Three Months Ended March 31,
(in millions)		2023		2022		Variance
Operating Revenues		$	31	$	30	$	1






Operating Expenses		29		30		(1)
Gains on Sales of Other Assets and Other, net		6		1		5
Operating Income		8		1		7
Other Income and Expenses, net		62		(5)		67
Interest Expense		256		158		98
Loss Before Income Taxes		(186)		(162)		(24)
Income Tax Benefit		(57)		(30)		(27)

Less: Preferred Dividends		39		39		—
Net Loss		$	(168)	$	(171)	$	3

Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~

Commercial Renewables' results were unfavorable to prior year primarily driven by fewer project investments financed by tax equity being placed into service in the current year and higher operating expenses from projects placed in service since the prior year.

~~Operating Expenses.~~The variance was primarily driven by an $11 million increase for higher operating expenses, depreciation, property tax expense, and other development costs from the growth of new projects, partially offset by $2 million decrease for lower operating expenses attributed to maintenance and other operating expenses.

~~Income Tax Benefit.~~ ~~The increase in the tax benefit was primarily due to an increase in production tax credits generated and a decrease in taxes associated with tax equity investments.~~

~~Loss Attributable to Noncontrolling Interests.~~ The variance was driven by a decrease for fewer projects placed in service financed with tax equity in the current year and a net decrease in losses allocated to tax equity members from existing tax equity structures.

~~Six Months Ended June 30,~~March 31, 2022 ~~as compared to June 30, 2021~~

Commercial Renewables' results were unfavorable primarily driven by fewer project investments financed by tax equity being placed into service in the current year and higher operating expenses from projects placed in service since the prior year offset by the impacts for losses experienced in the prior year from Texas Storm Uri.

~~Operating Expenses.~~ ~~The variance was primarily driven by an increase for higher operating expenses, depreciation, property tax expense and other development costs from the growth of new projects.~~

~~PART I~~

~~Other Income and Expenses, net.~~ ~~The increase was primarily due to $29 million of losses experienced in the prior year from Texas Storm Uri offset by a decrease in equity earnings.~~

~~Income Tax Benefit.~~ ~~The increase in the tax benefit was primarily due to a decrease in taxes associated with tax equity investments and an increase in production tax credits generated.~~

~~Loss Attributable to Noncontrolling Interests.~~ The variance was driven by a $34 million decrease for fewer projects placed in service financed with tax equity in the current year and a $12 million net decrease in losses allocated to tax equity members from existing tax equity structures offset by losses experienced in the prior year from Texas Storm Uri.

~~Other~~

Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2022 2021 Variance 2022 2021 Variance
Operating Revenues $ 30 $ 27 $ 3 $ 60 $ 53 $ 7
Operating Expenses 16 208 (192) 49 236 (187)
Gains on Sales of Other Assets and Other, net — — — 1 — 1
Operating Income (Loss) 14 (181) 195 12 (183) 195
Other Income and Expenses, net (7) 32 (39) (13) 53 (66)
Interest Expense 165 156 9 324 307 17
Loss Before Income Taxes (158) (305) 147 (325) (437) 112
Income Tax Benefit (43) (71) 28 (79) (103) 24
Less: Income Attributable to Noncontrolling Interests 1 — 1 1 — 1
Less: Preferred Dividends 14 14 — 53 53 —
Net Loss $ (130) $ (248) $ 118 $ (300) $ (387) $ 87

~~Three Months Ended June 30, 2022, as compared to June 30, 2021~~

The lower net loss was driven by ~~prior year asset impairments~~higher return on investments, lower loss experience related to ~~optimize~~captive insurance claims and an increase in the ~~company's real estate portfolio and reduce office space as parts of the business move to a hybrid and remote workforce strategy and by higher equity earnings from the NMC investment,~~tax benefit, partially offset by ~~lower return on investments that fund certain employee benefit obligations.~~

~~Operating Expenses.~~ The decrease was primarily driven by prior year asset impairments to optimize the company's real estate portfolio and reduce office space as parts of the business move to a hybrid and remote workforce strategy.higher interest expense.

Other Income and Expenses, net. The variance was primarily due to ~~lower~~higher return on investments that fund certain employee benefit obligations ~~partially offset by~~and higher ~~equity earnings from the NMC investment.~~yields on captive insurance investments.

Interest Expense. The variance was primarily due to higher interest rates on long-term debt and commercial paper and higher outstanding long-term debt.

Income Tax Benefit. The ~~decrease~~increase in the tax benefit was primarily due to ~~a decrease~~higher state tax benefits, favorable tax impacts related to higher investment returns on certain employee benefit obligations and an increase in pretax losses. The ETRs for the three months ended ~~June 30,~~March 31, 2023, and 2022, were 30.6% and ~~2021, were 27.2% and 23.3%~~18.5%, respectively. The increase in the ETR was primarily due to higher ~~equity earnings from the NMC investment.~~state tax benefits and favorable tax impacts related to higher investment returns on certain employee benefit obligations.

~~Six~~

PART I

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX


	Three Months Ended March 31,
(in millions)		2023		2022		Variance
Loss From Discontinued Operations, net of tax		$	(209)	$	(15)	$	(194)

Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

The lower net loss was driven by prior year asset impairments to optimize the company's real estate portfolio and reduce office space as parts of the business move to a hybrid and remote workforce strategy, partially offset by lower return on investments that fund certain employee benefit obligations.

~~Operating Expenses.~~ ~~The decrease~~variance was primarily driven by ~~prior year asset impairments to optimize~~ the ~~company's real estate portfolio and reduce office space as parts~~estimated impairment on the sale of the Commercial Renewables business ~~move to a hybrid and remote workforce strategy.~~recorded in 2023.

~~Other Income and Expenses, net.~~ ~~The variance was primarily due to lower return on investments that fund certain employee benefit obligations partially offset by higher equity earnings from the NMC investment.~~

~~Interest Expense.~~ ~~The variance was primarily due to higher outstanding long-term debt and higher interest rates on commercial paper.~~

~~Income Tax Benefit.~~ ~~The decrease in the tax benefit was primarily due to a decrease in pretax losses.~~


~~MD&A~~			~~DUKE ENERGY CAROLINAS~~

DUKE ENERGY CAROLINAS

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues	$	3,669	$	3,326	$	343	Operating Revenues	$	1,934	$	1,888	$	46
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	879		766		113		Fuel used in electric generation and purchased power	623		448		175
Operation, maintenance and other	Operation, maintenance and other	974		876		98		Operation, maintenance and other	440		512		(72)
Depreciation and amortization	Depreciation and amortization	763		722		41		Depreciation and amortization	366		379		(13)
Property and other taxes	Property and other taxes	170		157		13		Property and other taxes	95		93		2
Impairment of assets and other charges	Impairment of assets and other charges	(9)		75		(84)		Impairment of assets and other charges	2		3		(1)
Total operating expenses	Total operating expenses	2,777		2,596		181		Total operating expenses	1,526		1,435		91
Gains on Sales of Other Assets and Other, net		—		2		(2)

Operating Income	Operating Income	892		732		160		Operating Income	408		453		(45)
Other Income and Expenses, net	Other Income and Expenses, net	113		92		21		Other Income and Expenses, net	59		55		4
Interest Expense	Interest Expense	284		263		21		Interest Expense	160		141		19
Income Before Income Taxes	Income Before Income Taxes	721		561		160		Income Before Income Taxes	307		367		(60)
Income Tax Expense	Income Tax Expense	53		24		29		Income Tax Expense	35		27		8
Net Income	Net Income	$	668	$	537	$	131	Net Income	$	272	$	340	$	(68)

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.


Increase (Decrease) over prior year	~~2022~~2023
Residential sales	~~(0.4)~~(4.3)	%
General service sales	~~7.1~~0.8	%
Industrial sales	~~8.1~~(5.5)	%
Wholesale power sales	~~(1.8)~~(0.5)	%
Joint dispatch sales	~~(50.6)~~39.2	%
Total sales	~~5.3~~(7.2)	%
Average number of customers	~~1.9~~1.6	%

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$150 million increase in weather-normal retail sales volumes;~~

•~~an $85~~$153 million increase in fuel revenues due to higher fuel ~~prices and weather-normal retail sales volumes in the current year;~~

•~~a $36 million increase due to higher pricing from the North Carolina retail rate case, net of a return of EDIT to customers;~~prices; and

•a ~~$32~~$29 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers compared to the prior year and increases in energy efficiency ~~storm securitization,~~ and competitive procurement of renewable energy ~~programs.~~program riders.

Partially offset by:

•a $93 million decrease in retail sales due to unfavorable weather compared to prior year; and

•a $49 million decrease in weather-normal retail sales volumes.

Operating Expenses. The variance was driven primarily by:

•a ~~$113~~$175 million increase in fuel used in electric generation and purchased power primarily due to higher natural gas prices and changes in the generation mix, partially offset by the recovery of fuel expenses and lower coal ~~prices;~~

•~~a $98 million increase in operation, maintenance and other expense primarily due to higher storm restoration costs and higher outage and maintenance costs; and~~

•a $41 million increase in depreciation and amortization primarily due to an increase in assets placed into service, and new depreciation rates associated with the North Carolina rate case, partially offset by the extension of the lives of nuclear facilities.

~~Partially offset by:~~

•~~an $84~~ million decrease in impairment of assets and other charges due to the prior year optimization of the company's real estate portfolio and reduction of office space as parts of the business move to a hybrid and remote workforce strategy and an adjustment to the South Carolina Supreme Court decision on coal ash.

~~Other Income and Expenses.~~ ~~The variance was driven by an increase in AFUDC equity due to higher AFUDC base.~~

~~Interest Expense.~~ ~~The variance was driven by interest expense on excess deferred tax liabilities.~~prices.

9587


MD&A			DUKE ENERGY CAROLINAS

Partially offset by:

•a $72 million decrease in operation, maintenance and other expense primarily due to lower storm restoration costs and a decrease in spend on outside services; and

•a $13 million decrease in depreciation and amortization primarily due to the prior year South Carolina Supreme Court decision on coal ash and an increase in Grid Improvement Plan deferrals.

Interest Expense. The variance was driven by higher interest rates and outstanding debt balances.

Income Tax Expense. The increase in tax expense was primarily due to ~~an increase~~a decrease in ~~pretax income, partially offset by~~the amortization of excess deferred ~~taxes.~~taxes, partially offset by a decrease in pretax income.

PROGRESS ENERGY

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues	$	6,206	$	5,184	$	1,022	Operating Revenues	$	3,048	$	2,992	$	56
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	2,322		1,628		694		Fuel used in electric generation and purchased power	1,191		1,064		127
Operation, maintenance and other	Operation, maintenance and other	1,248		1,227		21		Operation, maintenance and other	568		645		(77)
Depreciation and amortization	Depreciation and amortization	1,045		926		119		Depreciation and amortization	504		536		(32)
Property and other taxes	Property and other taxes	303		275		28		Property and other taxes	168		152		16
Impairment of assets and other charges	Impairment of assets and other charges	4		37		(33)		Impairment of assets and other charges	5		—		5
Total operating expenses	Total operating expenses	4,922		4,093		829		Total operating expenses	2,436		2,397		39
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	3		1		2		Gains on Sales of Other Assets and Other, net	6		2		4
Operating Income	Operating Income	1,287		1,092		195		Operating Income	618		597		21
Other Income and Expenses, net	Other Income and Expenses, net	105		81		24		Other Income and Expenses, net	59		35		24
Interest Expense	Interest Expense	419		392		27		Interest Expense	246		211		35
Income Before Income Taxes	Income Before Income Taxes	973		781		192		Income Before Income Taxes	431		421		10
Income Tax Expense	Income Tax Expense	160		80		80		Income Tax Expense	72		67		5
Net Income	Net Income	813		701		112		Net Income	359		354		5

Less: Net Income Attributable to Noncontrolling Interests		1		—		1
Net Income Attributable to Parent		$	812	$	701	$	111

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$610~~$183 million increase in fuel cost recovery at Duke Energy Florida driven by higher fuel ~~prices and volumes~~rates in the current year;

•a $198 million increase in retail pricing due to the North Carolina rate case and base rate adjustments at Duke Energy Florida related to annual increases from the 2021 Settlement Agreement and the solar base rate adjustment;

•~~a $97 million increase in weather-normal retail sales volumes;~~

•~~a $36 million increase in retail sales due to favorable weather;~~ and

•a $23 million increase in ~~wholesale~~rider revenues ~~net of fuel, due to higher capacity volumes~~ at Duke Energy ~~Florida.~~Florida primarily due to increased Storm Protection Plan rider revenue driven by higher debt and equity returns from increased capital expenditures in the current year.

Partially offset by:

•a ~~$43~~$54 million decrease in ~~capacity revenue primarily~~retail sales due to ~~accelerated recovery~~unfavorable weather compared to prior year;

•a $54 million decrease in weather-normal retail sales volumes; and

•a $45 million decrease in wholesale revenues, net of ~~retired Crystal River coal units in 2021.~~fuel, due to lower capacity volumes.

Operating Expenses. The variance was driven primarily by:

•a ~~$694~~$127 million increase in fuel used in electric generation and purchased power primarily due to higher ~~demand~~amortization of deferred fuel balances at Duke Energy Florida; and ~~higher natural gas prices;~~

•a $119 million increase in depreciation and amortization primarily due to increased rates at Duke Energy Florida and higher amortization of deferred coal ash and storm costs at Duke Energy Progress, partially offset by the extension of the lives at nuclear facilities at Duke Energy Progress;

•~~a $28~~$16 million increase in property and other taxes primarily due to ~~an increase~~higher property tax valuation adjustments at Duke Energy Florida.

Partially offset by:

•a $77 million decrease in ~~gross receipts taxes~~operation, maintenance and other expense due to lower storm costs at Duke Energy Progress and lower storm amortization at Duke Energy Florida; and

•a ~~$21~~$32 million ~~increase~~decrease in ~~operation, maintenance~~depreciation and ~~other expense~~amortization primarily due to ~~higher storm costs~~the amortization of Department of Energy settlement regulatory liability at Duke Energy ~~Progress.~~

~~Partially offset by:~~

•a $33 million decrease in impairment of assets and other charges due to the prior year optimization of the company's real estate portfolio and reduction of office space as parts of the business moved to hybrid and remote workforce strategy.Florida.

Other Income and Expenses, net. The increase is primarily due to ~~a 2022 settlement with the Department of Energy over spent nuclear fuel storage.~~

~~Interest Expense.~~ ~~The variance was driven primarily by interest expense on excess deferred tax liabilities~~higher debt returns at Duke Energy ~~Progress and higher outstanding debt.~~Florida.

9688


MD&A			PROGRESS ENERGY

~~Income Tax Expense~~.Interest Expense. The ~~increase in tax expense~~variance was driven primarily ~~due to an increase in pretax income~~by higher outstanding debt balances and ~~a decrease in the amortization of excess deferred taxes.~~interest rates at Duke Energy Florida and Duke Energy Progress.

DUKE ENERGY PROGRESS

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues	$	3,213	$	2,750	$	463	Operating Revenues	$	1,533	$	1,632	$	(99)
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,167		845		322		Fuel used in electric generation and purchased power	545		574		(29)
Operation, maintenance and other	Operation, maintenance and other	751		724		27		Operation, maintenance and other	350		391		(41)
Depreciation and amortization	Depreciation and amortization	577		521		56		Depreciation and amortization	315		306		9
Property and other taxes	Property and other taxes	90		90		—		Property and other taxes	48		49		(1)
Impairment of assets and other charges	Impairment of assets and other charges	4		18		(14)		Impairment of assets and other charges	4		—		4
Total operating expenses	Total operating expenses	2,589		2,198		391		Total operating expenses	1,262		1,320		(58)
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	1		1		—		Gains on Sales of Other Assets and Other, net	—		1		(1)
Operating Income	Operating Income	625		553		72		Operating Income	271		313		(42)
Other Income and Expenses, net	Other Income and Expenses, net	54		44		10		Other Income and Expenses, net	29		22		7
Interest Expense	Interest Expense	175		147		28		Interest Expense	102		85		17
Income Before Income Taxes	Income Before Income Taxes	504		450		54		Income Before Income Taxes	198		250		(52)
Income Tax Expense	Income Tax Expense	70		25		45		Income Tax Expense	29		35		(6)
Net Income	Net Income	$	434	$	425	$	9	Net Income	$	169	$	215	$	(46)


Increase (Decrease) over prior period	~~2022~~2023
Residential sales	~~(0.9)~~(7.4)	%
General service sales	~~8.4~~(9.4)	%
Industrial sales	~~16.3~~(25.0)	%
Wholesale power sales	~~2.8~~(10.1)	%
Joint dispatch sales	~~61.4~~(28.5)	%
Total sales	~~7.9~~(14.6)	%
Average number of customers	~~2.0~~1.6	%

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$291~~$54 million ~~increase~~decrease in ~~fuel revenues~~retail sales due to ~~higher fuel prices and retail sales volumes in the current~~unfavorable weather compared to prior year;

•a ~~$111~~$26 million ~~increase~~decrease in wholesale revenues, net of fuel, due to ~~higher pricing from the North Carolina retail rate case, net of a return of EDIT to customers;~~

•~~a $19 million increase in weather-normal retail sales~~lower capacity volumes; and

•a ~~$10~~$16 million ~~increase~~decrease in weather-normal retail sales ~~due to favorable weather compared to prior year.~~volumes.

Operating Expenses. The variance was driven primarily by:

•a ~~$322~~$41 million ~~increase~~decrease in operation, maintenance and other expense primarily due to lower storm costs; and

•a $29 million decrease in fuel used in electric generation and purchased power primarily due to ~~higher natural gas prices and changes in the generation mix,~~lower volumes, partially offset by the recovery of fuel expenses and ~~lower coal prices;~~higher natural gas prices.

Partially offset by:

•a ~~$56~~$9 million increase in depreciation and amortization due to higher ~~amortization of deferred coal ash costs and amortization related to deferred storm costs, partially offset by lower depreciation related to the extension of the lives of nuclear facilities; and~~

•~~a $27 million increase in operation, maintenance and other expense primarily due to higher storm costs.~~

~~Partially offset by:~~

•a $14 million decrease in impairment of assets and other charges due to the prior year optimization of the company's real estate portfolio and reduction of office space as parts of the business moved to hybrid and remote workforce strategy.depreciable base.

Interest Expense. The variance was driven primarily by ~~interest expense on excess deferred tax liabilities and~~ higher outstanding ~~debt.~~

~~Income Tax Expense.~~ ~~The increase in tax expense was primarily due to an increase in pretax income~~debt balances and ~~a decrease in the amortization of excess deferred taxes.~~interest rates.

9789


MD&A			DUKE ENERGY FLORIDA

DUKE ENERGY FLORIDA

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues	$	2,983	$	2,426	$	557	Operating Revenues	$	1,510	$	1,355	$	155
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	1,155		783		372		Fuel used in electric generation and purchased power	646		490		156
Operation, maintenance and other	Operation, maintenance and other	490		497		(7)		Operation, maintenance and other	213		249		(36)
Depreciation and amortization	Depreciation and amortization	468		405		63		Depreciation and amortization	190		231		(41)
Property and other taxes	Property and other taxes	212		185		27		Property and other taxes	120		103		17
Impairment of assets and other charges	Impairment of assets and other charges	—		19		(19)		Impairment of assets and other charges	1		—		1
Total operating expenses	Total operating expenses	2,325		1,889		436		Total operating expenses	1,170		1,073		97
Gains on Sales of Other Assets and Other, net	Gains on Sales of Other Assets and Other, net	2		—		2		Gains on Sales of Other Assets and Other, net	1		1		—
Operating Income	Operating Income	660		537		123		Operating Income	341		283		58
Other Income and Expenses, net	Other Income and Expenses, net	55		36		19		Other Income and Expenses, net	30		15		15
Interest Expense	Interest Expense	174		160		14		Interest Expense	115		84		31
Income Before Income Taxes	Income Before Income Taxes	541		413		128		Income Before Income Taxes	256		214		42
Income Tax Expense	Income Tax Expense	109		79		30		Income Tax Expense	51		43		8
Net Income	Net Income	$	432	$	334	$	98	Net Income	$	205	$	171	$	34

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.


Increase (Decrease) over prior period	~~2022~~2023
Residential sales	~~2.1~~(0.8)	%
General service sales	~~4.0~~1.9	%
Industrial sales	~~6.2~~1.9	%
Wholesale and other	~~63.3~~(47.9)	%
Total sales	~~12.6~~(9.2)	%
Average number of customers	~~1.8~~1.6	%

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$319~~$183 million increase in fuel ~~revenue~~and capacity revenues primarily due ~~to higher retail sales volumes and a higher fuel rate in the current year in response~~ to an increase in ~~natural gas prices;~~

•~~an $87 million increase in~~fuel and capacity rates billed to retail ~~pricing due to base rate adjustments related to annual increases from the 2021 Settlement Agreement~~customers; and ~~the solar base rate adjustment;~~

•a ~~$78 million increase in weather-normal retail sales volumes;~~

•~~a $37~~$23 million increase in rider revenues primarily due to increased Storm Protection Plan rider revenue driven by higher debt and equity returns from increased capital expenditures in the current ~~year;~~year.

Partially offset by:

•a ~~$26~~$38 million ~~increase~~decrease in weather-normal retail sales ~~due to favorable weather in the current year;~~volumes; and

•a ~~$23~~$19 million ~~increase~~decrease in wholesale power revenues, net of fuel, primarily due to ~~higher~~lower capacity ~~revenues~~revenue and bulk power sales.

~~Partially offset by:~~

•~~a $43 million decrease in capacity revenue primarily due to accelerated recovery of the retired coal units Crystal River 1 and 2 in 2021.~~

Operating Expenses. The variance was driven primarily by:

•a ~~$372~~$156 million increase in fuel used in electric generation and purchased power primarily due to higher ~~natural gas prices;~~

•~~a $63 million increase in depreciation~~amortization of deferred fuel and ~~amortization primarily due to an increase in depreciation rates starting in January 2022;~~capacity expense; and

•a ~~$27~~$17 million increase in property and other taxes primarily due to ~~an increase in gross receipts taxes.~~property tax valuation adjustments.

Partially offset by:

•a ~~$19~~$41 million decrease in ~~impairment of assets~~depreciation and ~~other charges~~amortization primarily due to the ~~prior year optimization~~amortization of ~~the company's real estate portfolio~~Department of Energy settlement regulatory liability; and ~~reduction of office space as parts of the business moved~~

•a $36 million decrease in operation, maintenance and other primarily due to ~~hybrid~~reduced storm amortization.

Other Income and ~~remote workforce strategy.~~Expenses, net. The increase is primarily due to an increase in clause recovery interest income.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.

9890


MD&A			DUKE ENERGY FLORIDA

~~Other Income and Expense, net.~~ ~~The increase is primarily due to a 2022 settlement with the Department of Energy over spent nuclear fuel storage.~~

~~Interest Expense.~~ ~~The increase in interest expense was primarily due to higher outstanding debt.~~

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax ~~income.~~income and EDIT amortization, partially offset by new PTCs.

DUKE ENERGY OHIO

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues							Operating Revenues
Regulated electric	Regulated electric	$	813	$	706	$	107	Regulated electric	$	474	$	412	$	62
Regulated natural gas	Regulated natural gas	370		282		88		Regulated natural gas	235		226		9

Total operating revenues	Total operating revenues	1,183		988		195		Total operating revenues	709		638		71
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	254		175		79		Fuel used in electric generation and purchased power	176		127		49

Cost of natural gas	Cost of natural gas	153		67		86		Cost of natural gas	92		107		(15)
Operation, maintenance and other	Operation, maintenance and other	287		219		68		Operation, maintenance and other	123		178		(55)
Depreciation and amortization	Depreciation and amortization	163		149		14		Depreciation and amortization	90		80		10
Property and other taxes	Property and other taxes	193		175		18		Property and other taxes	80		101		(21)
Impairment of assets and other charges		—		5		(5)

Total operating expenses	Total operating expenses	1,050		790		260		Total operating expenses	561		593		(32)
Gains on Sales of Other Assets and Other, net		1		—		1

Operating Income	Operating Income	134		198		(64)		Operating Income	148		45		103
Other Income and Expenses, net	Other Income and Expenses, net	12		10		2		Other Income and Expenses, net	8		6		2
Interest Expense	Interest Expense	60		53		7		Interest Expense	36		30		6
Income Before Income Taxes	Income Before Income Taxes	86		155		(69)		Income Before Income Taxes	120		21		99
Income Tax (Benefit) Expense		(47)		25		(72)
Income Tax Expense (Benefit)								Income Tax Expense (Benefit)	20		(56)		76

Net Income	Net Income	$	133	$	130	$	3	Net Income	$	100	$	77	$	23

The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.


		Electric		Natural Gas			Electric		Natural Gas
Increase (Decrease) over prior year	Increase (Decrease) over prior year	2022				Increase (Decrease) over prior year	2023		2023
Residential sales	Residential sales	0.2	%	5.4	%	Residential sales	(5.4)	%	(12.6)	%
General service sales	General service sales	(9.7)	%	6.0	%	General service sales	(1.9)	%	(26.6)	%
Industrial sales	Industrial sales	(16.5)	%	5.7	%	Industrial sales	6.8	%	7.7	%
Wholesale electric power sales	Wholesale electric power sales	(18.5)	%	n/a		Wholesale electric power sales	(78.9)	%	n/a
Other natural gas sales	Other natural gas sales	n/a		(4.6)	%	Other natural gas sales	n/a		(3.7)	%
Total sales	Total sales	(1.5)	%	3.5	%	Total sales	(5.9)	%	(14.1)	%
Average number of customers	Average number of customers	1.2	%	1.7	%	Average number of customers	1.3	%	0.8	%

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$139~~$51 million increase in ~~fuel related~~fuel-related revenues primarily due to higher ~~natural gas prices~~retail sales volumes and ~~increased natural gas volumes;~~higher fuel rates in the current year;

•a ~~$21~~$33 million increase in ~~other electric revenues primarily~~price due to ~~Distribution Decoupling rider adjustments recorded~~2022 Duke Energy Ohio Electric retail rate case and Ohio tax reform deferrals in ~~2021;~~prior year; and

•~~an $18~~a $15 million increase due to the MGP settlement in the prior year.

Partially offset by:

•a $14 million decrease due to unfavorable weather compared to prior year; and

•a $9 million decrease in retail revenue riders primarily due to the ~~Ohio CEP,~~decrease in Distribution Capital Investment Rider (DCI); partially offset by increase in the Ohio CEP rider.

Operating Expenses. The variance was driven primarily by:

•a ~~$13~~$55 million ~~increase~~decrease in ~~revenues related~~operation, maintenance and other expense primarily due to ~~OVEC collections and OVEC sales into PJM;~~the MGP settlement in the prior year; and

•~~an $8 million increase in PJM transmission revenues as~~ a ~~result of increased capital spend.~~

~~Partially offset by:~~

•~~a $15~~$21 million decrease in property and other taxes primarily due to ~~the MGP settlement.~~an Ohio property tax true up partially offset by franchise taxes.

9991


MD&A			DUKE ENERGY OHIO

~~Operating Expenses.~~ ~~The variance was driven primarily~~Partially offset by:

•a ~~$165~~$34 million increase in fuel expense primarily driven by higher retail prices and increased volumes for natural gas and purchased power;

•~~a $68 million increase in operation, maintenance and other expense primarily due to the MGP settlement and higher storm costs;~~

•an $18 million increase in property and other taxes primarily due to increased plant in service, higher kilowatt and natural gas distribution taxes due to increased usage and a lower Network Integration Transmission Service tax deferral partially offset by Sales and Use Tax and the Ohio Kilowatt Tax; and

•a ~~$14~~$10 million increase in depreciation and amortization primarily driven by ~~lower CEP deferrals and~~ an increase in distribution plant in ~~service.~~service and depreciation rates resulting from the 2022 Duke Energy Ohio Electric retail rate case implemented in 2023.

Income Tax ~~Benefit.~~Expense (Benefit). The ~~decrease~~increase in tax expense was primarily due to ~~an increase~~a decrease in the amortization of excess deferred taxes related to the MGP Settlement recorded in the prior year and ~~a decrease~~an increase in pretax income.

DUKE ENERGY INDIANA

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Operating Revenues	Operating Revenues	$	1,740	$	1,480	$	260	Operating Revenues	$	975	$	822	$	153
Operating Expenses	Operating Expenses							Operating Expenses
Fuel used in electric generation and purchased power	Fuel used in electric generation and purchased power	678		418		260		Fuel used in electric generation and purchased power	449		319		130
Operation, maintenance and other	Operation, maintenance and other	374		370		4		Operation, maintenance and other	184		192		(8)
Depreciation and amortization	Depreciation and amortization	311		304		7		Depreciation and amortization	158		156		2
Property and other taxes	Property and other taxes	47		41		6		Property and other taxes	18		25		(7)
Impairment of assets and other charges	Impairment of assets and other charges	211		8		203		Impairment of assets and other charges	—		211		(211)
Total operating expenses	Total operating expenses	1,621		1,141		480		Total operating expenses	809		903		(94)
Losses on Sales of Other Assets and Other, net		—		(1)		1
Operating Income		119		338		(219)

Operating Income (Loss)								Operating Income (Loss)	166		(81)		247
Other Income and Expenses, net	Other Income and Expenses, net	18		19		(1)		Other Income and Expenses, net	14		10		4
Interest Expense	Interest Expense	90		99		(9)		Interest Expense	52		45		7
Income Before Income Taxes		47		258		(211)
Income Tax (Benefit) Expense		(23)		43		(66)
Net Income		$	70	$	215	$	(145)
Income (Loss) Before Income Taxes								Income (Loss) Before Income Taxes	128		(116)		244
Income Tax Expense (Benefit)								Income Tax Expense (Benefit)	22		(37)		59
Net Income (Loss)								Net Income (Loss)	$	106	$	(79)	$	185


Increase (Decrease) over prior year	~~2022~~2023
Residential sales	~~0.8~~(9.3)	%
General service sales	~~4.4~~(0.3)	%
Industrial sales	~~(14.6)~~13.1	%
Wholesale power sales	~~16.6~~(21.2)	%
Total sales	~~3.3~~(7.5)	%
Average number of customers	~~1.4~~1.2	%

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$221~~$152 million increase in retail fuel revenues primarily due to higher fuel cost recovery driven by ~~retail sales volumes and~~higher fuel prices; and

•a ~~$54 million increase in wholesale revenues primarily driven by higher fuel rates and BPM sharing provision;~~

•~~an $18 million increase in weather-normal retail sales volumes driven by higher nonresidential customer demand;~~

•~~a $12~~$37 million increase primarily due to ~~Energy Efficiency and Renewables riders; and~~the provision for rate refund recognized in the prior year related to the Indiana Supreme Court ruling.

Partially offset by:

•~~an $11~~a $21 million ~~increase~~decrease in retail sales due to ~~favorable weather~~unfavorable weather; and

•a $16 million decrease in wholesale revenues, including fuel revenues, driven by lower rates and sales as well as lower bulk power marketing price and sharing.

Operating Expenses.The variance was driven primarily by:

•a $211 million decrease in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs in the ~~current~~prior year.

Partially offset by:

•a $130 million increase in fuel used in electric generation and purchased power primarily due to higher deferred fuel amortization, partially offset by lower purchased power expense and natural gas costs.

~~100~~


MD&A			DUKE ENERGY INDIANA

~~Partially offset by:~~

•~~a $53 million decrease due to the Indiana Supreme Court ruling on recovery of certain coal ash costs.~~

~~Operating Expenses.The variance was driven primarily by:~~

•~~a $260 million increase in fuel used in electric generation and purchased power expense primarily due to higher purchased power expense and higher coal and natural gas costs; and~~

•~~a $203 million increase in impairment of assets and other charges primarily due to the Indiana Supreme Court ruling on recovery of certain coal ash costs.~~

Income Tax ~~Benefit.~~Expense (Benefit). The ~~decrease~~increase in tax expense was primarily due ~~the change~~to a decrease in pretax ~~income and excess deferred income taxes from the coal ash impairment.~~income.

PIEDMONT

Results of Operations


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance

Operating Revenues	Operating Revenues	$	1,115	$	821	$	294	Operating Revenues	$	675	$	805	$	(130)
Operating Expenses	Operating Expenses							Operating Expenses
Cost of natural gas	Cost of natural gas	517		288		229		Cost of natural gas	206		374		(168)
Operation, maintenance and other	Operation, maintenance and other	183		154		29		Operation, maintenance and other	89		95		(6)
Depreciation and amortization	Depreciation and amortization	110		99		11		Depreciation and amortization	57		54		3
Property and other taxes	Property and other taxes	31		28		3		Property and other taxes	16		16		—
Impairment of assets and other charges	Impairment of assets and other charges	—		5		(5)		Impairment of assets and other charges	1		—		1
Total operating expenses	Total operating expenses	841		574		267		Total operating expenses	369		539		(170)
Gains on Sales of Other Assets and Other, net		4		—		4

Operating Income	Operating Income	278		247		31		Operating Income	306		266		40
Other Income and Expenses, net	Other Income and Expenses, net	28		35		(7)		Other Income and Expenses, net	16		13		3
Interest Expense	Interest Expense	66		59		7		Interest Expense	40		32		8
Income Before Income Taxes	Income Before Income Taxes	240		223		17		Income Before Income Taxes	282		247		35
Income Tax Expense	Income Tax Expense	27		24		3		Income Tax Expense	50		33		17
Net Income	Net Income	$	213	$	199	$	14	Net Income	$	232	$	214	$	18

The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.


Increase (Decrease) over prior year	~~2022~~2023
Residential deliveries	~~(5.0)~~(22.5)	%
Commercial deliveries	~~0.7~~(19.2)	%
Industrial deliveries	~~0.8~~(4.5)	%
Power generation deliveries	~~38.2~~(6.1)	%
For resale	~~(3.9)~~(25.5)	%
Total throughput deliveries	~~20.0~~(10.4)	%
Secondary market volumes	~~28.8~~(26.8)	%
Average number of customers	1.5	%

The margin decoupling mechanism adjusts for variations in residential and commercial use per customer, including those due to weather and conservation. The weather normalization adjustment mechanisms mostly offset the impact of weather on bills rendered, but do not ensure full recovery of approved margin during periods when winter weather is significantly warmer or colder than normal.

~~Six~~Three Months Ended ~~June 30, 2022,~~March 31, 2023, as compared to ~~June 30, 2021~~March 31, 2022

Operating Revenues. The variance was driven primarily by:

•a ~~$229~~$168 million ~~increase~~decrease due to ~~higher~~lower natural gas costs passed through to customers, ~~and increased off-system natural sales gas costs, partially offset by~~ lower volumes, ~~billed;~~and decreased off-system sales natural gas costs.

Partially offset by:

•a $13 million increase due to secondary marketing sales;

•a ~~$41~~$6 million increase due to ~~base rate increases;~~North Carolina IMR; and

•a $7$5 million increase due to customer growth.

~~101~~


~~MD&A~~			~~PIEDMONT~~

Operating Expenses. The variance was driven primarily by:

•a ~~$229~~$168 million ~~increase~~decrease in cost of natural gas due to ~~higher~~lower natural gas costs passed through to customers, lower volumes, and ~~increased~~decreased off-system sales natural gas ~~costs, partially offset by lower volumes billed;~~

•a $29 million increase in operation, maintenance and other due higher costs for natural gas pipeline safety and integrity work, labor and benefits, customer repair plan program, and material and security purchases; and

•~~an $11 million increase in depreciation and amortization due to additional plant in service.~~

~~Other Income and Expenses, net.~~ ~~The decrease was primarily due to lower AFUDC equity income.~~costs.

Interest Expense. The increase was primarily due to ~~lower AFUDC debt income and~~ higher outstanding ~~debt.~~debt balances and interest rates.

Income Tax ~~Expense.~~ Expense.The increase in tax expense was primarily due to a decrease in the amortization of excess deferred taxes and an increase in pretax income.


MD&A			LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of Cash

Duke Energy relies primarily upon cash flows from operations, debt and equity issuances and its existing cash and cash equivalents to fund its liquidity and capital requirements. Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes and projected tax credits to be generated relating to the IRA, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, included a summary and detailed discussion of projected primary sources and uses of cash for ~~2022~~2023 to ~~2024.~~2025.

As of ~~June 30, 2022,~~March 31, 2023, Duke Energy had approximately ~~$428~~$451 million of cash on hand and $5.4 billion available under its $9 billion Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs. Refer to Note 56 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding Duke Energy's debt issuances and maturities, and available credit facilities including the Master Credit Facility.

In April 2023, Moody’s Investors Service, Inc. (Moody's) maintained the credit ratings and affirmed the ratings outlook for all of the Duke Energy Registrants, including Duke Energy Ohio. Operations in Kentucky are conducted through Duke Energy Ohio's wholly owned subsidiary, Duke Energy Kentucky. Moody's lowered Duke Energy Kentucky's ratings outlook from stable to negative while maintaining Duke Energy Kentucky's credit rating of Baa1 for senior unsecured debt.

Cash Flow Information

The following table summarizes Duke Energy’s cash flows.


		Six Months Ended					Three Months Ended
		June 30,					March 31,
(in millions)	(in millions)	2022		2021		(in millions)	2023		2022
Cash flows provided by (used in):	Cash flows provided by (used in):					Cash flows provided by (used in):
Operating activities	Operating activities	$	4,035	$	3,873	Operating activities	$	1,483	$	1,795
Investing activities	Investing activities	(5,492)		(5,614)		Investing activities	(3,209)		(2,699)
Financing activities	Financing activities	1,576		1,750		Financing activities	1,747		1,404

Net increase in cash, cash equivalents and restricted cash	Net increase in cash, cash equivalents and restricted cash	119		9		Net increase in cash, cash equivalents and restricted cash	21		500
Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period	520		556		Cash, cash equivalents and restricted cash at beginning of period	603		520
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period	$	639	$	565	Cash, cash equivalents and restricted cash at end of period	$	624	$	1,020

OPERATING CASH FLOWS

The following table summarizes key components of Duke Energy’s operating cash flows.


		Six Months Ended							Three Months Ended
		June 30,							March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Net income	Net income	$	1,700	$	1,639	$	61	Net income	$	761	$	820	$	(59)
Non-cash adjustments to net income	Non-cash adjustments to net income	2,971		2,915		56		Non-cash adjustments to net income	1,563		1,582		(19)

Payments for asset retirement obligations	Payments for asset retirement obligations	(255)		(263)		8		Payments for asset retirement obligations	(117)		(119)		2

Working capital	Working capital	(381)		(418)		37		Working capital	(724)		(488)		(236)
Net cash provided by operating activities	Net cash provided by operating activities	$	4,035	$	3,873	$	162	Net cash provided by operating activities	$	1,483	$	1,795	$	(312)

The variance is primarily due to ~~a 2022 settlement with~~ the ~~Department of Energy over spent nuclear fuel storage as well as~~ timing of accruals and payments in working capital accounts.

INVESTING CASH FLOWS

The following table summarizes key components of Duke Energy’s investing cash flows.


	Three Months Ended
	March 31,
(in millions)	2023		2022		Variance
Capital, investment and acquisition expenditures	$	(3,152)	$	(2,568)	$	(584)

Other investing items	(57)		(131)		74
Net cash used in investing activities	$	(3,209)	$	(2,699)	$	(510)

The variance is primarily due to higher overall investments in the EU&I segment.

~~102~~


MD&A			LIQUIDITY AND CAPITAL RESOURCES

~~INVESTING CASH FLOWS~~

~~The following table summarizes key components of Duke Energy’s investing cash flows.~~

Six Months Ended
June 30,
(in millions) 2022 2021 Variance
Capital, investment and acquisition expenditures $ (5,149) $ (4,657) $ (492)
Other investing items (343) (957) 614
Net cash used in investing activities $ (5,492) $ (5,614) $ 122

The variance relates primarily to payment made in 2021 to fund ACP's outstanding debt and lower overall investments in the Gas Utilities and Infrastructure and Commercial Renewables segments, partially offset by increases in capital expenditures due to higher overall investments in the Electric Utilities and Infrastructure segment.

FINANCING CASH FLOWS

The following table summarizes key components of Duke Energy’s financing cash flows.


		Six Months Ended							Three Months Ended
		June 30,							March 31,
(in millions)	(in millions)	2022		2021		Variance		(in millions)	2023		2022		Variance
Issuances of long-term debt, net	Issuances of long-term debt, net	$	2,567	$	2,625	$	(58)	Issuances of long-term debt, net	$	2,705	$	2,291	$	414
Issuances of common stock		—		5		(5)

Notes payable, commercial paper and other short-term borrowings	Notes payable, commercial paper and other short-term borrowings	558		415		143		Notes payable, commercial paper and other short-term borrowings	(265)		(44)		(221)
Dividends paid	Dividends paid	(1,574)		(1,541)		(33)		Dividends paid	(815)		(799)		(16)
Contributions from noncontrolling interests	Contributions from noncontrolling interests	126		318		(192)		Contributions from noncontrolling interests	206		23		183

Other financing items	Other financing items	(101)		(72)		(29)		Other financing items	(84)		(67)		(17)
Net cash provided by financing activities	Net cash provided by financing activities	$	1,576	$	1,750	$	(174)	Net cash provided by financing activities	$	1,747	$	1,404	$	343

The variance was primarily due to:

•a ~~$192~~$414 million ~~decrease in contributions from noncontrolling interests due to fewer project investments financed by tax equity being placed into service in the current year; and~~

•~~a $58 million decrease~~increase in net proceeds from issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term ~~debt.~~debt; and

•a $183 million increase in contributions from noncontrolling interests.

Partially offset by:

•a ~~$143~~$221 million ~~increase~~decrease in net borrowings from notes payable and commercial paper.

OTHER MATTERS

Environmental Regulations

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 and result in new obligations of the Duke Energy Registrants. Refer to Note 34, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2022, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, ~~"Regulatory Matters,"~~ for further information regarding ~~potential plant retirements and~~ regulatory filings related to the Duke Energy Registrants.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For an in-depth discussion of the Duke Energy Registrants' market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7 of ~~the~~Duke Energy's Annual Report on Form 10-K for the ~~Duke Energy Registrants~~.year ended December 31, 2022.

~~Foreign Currency Exchange Risk~~

Duke Energy is exposed to risk resulting from changes in the foreign currency exchange rates as a result of its issuances of long-term debt denominated in a foreign currency. Duke Energy manages foreign currency exchange risk exposure by entering into cross-currency swaps, a type of financial derivative instrument, which mitigate foreign currency exchange exposure. See Notes 5, 8 and 10 to the Condensed Consolidated Financial Statements, “Debt and Credit Facilities,” “Derivatives and Hedging” and “Fair Value Measurements," respectively.

~~Credit Risk~~

Duke Energy is subject to credit risk from transactions with counterparties to cross-currency swaps related to future interest and principal payments. The credit exposure to such counterparties may take the form of higher costs to meet Duke Energy's future Euro-denominated interest and principal payments in the event of counterparty default. Duke Energy selects highly-rated banks as counterparties and allocates the hedge for each debt issuance across multiple counterparties. The master agreements with the counterparties impose collateral requirements on the parties in certain circumstances indicative of material deterioration in a party's creditworthiness.

~~103~~


~~ITEM 4.~~			~~CONTROLS AND PROCEDURES~~

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified by the SEC rules and forms.

Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by the Duke Energy Registrants in the reports they file or submit under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated the effectiveness of their disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of ~~June 30, 2022,~~March 31, 2023, and, based ~~upon~~on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in providing reasonable assurance of compliance.

Changes in Internal Control over Financial Reporting

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the fiscal quarter ended ~~June 30, 2022,~~March 31, 2023, and have concluded no change has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

~~104~~95


OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Duke Energy Registrants are, from time to time, parties to various lawsuits and regulatory proceedings in the ordinary course of their business. For information regarding ~~material~~ legal proceedings, including regulatory and environmental matters, see Note 3,4, "Regulatory Matters," and Note 4,5, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements. For additional information, see Item 3, "Legal Proceedings," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Part I, “Item 1A. Risk Factors” in the Duke ~~Energy Registrants'~~Energy's Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, which could materially affect the Duke Energy Registrants’ financial condition or future results. ~~The information presented below updates, and should be read in conjunction with, the risk factors and information disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021.~~

The Duke Energy Registrants rely on access to short-term borrowings and longer-term debt and equity markets to finance their capital requirements and support their liquidity needs. Access to those markets can be adversely affected by a number of conditions, many of which are beyond the Duke Energy Registrants’ control.

The Duke Energy Registrants’ businesses are significantly financed through issuances of debt and equity. The maturity and repayment profile of debt used to finance investments often does not correlate to cash flows from their assets. Accordingly, as a source of liquidity for capital requirements not satisfied by the cash flows from their operations and to fund investments originally financed through debt instruments with disparate maturities, the Duke Energy Registrants rely on access to short-term money markets as well as longer-term capital markets. The Subsidiary Registrants also rely on access to short-term intercompany borrowings. If the Duke Energy Registrants are not able to access debt or equity at competitive rates or at all, the ability to finance their operations and implement their strategy and business plan as scheduled could be adversely affected. An inability to access debt and equity may limit the Duke Energy Registrants’ ability to pursue improvements or acquisitions that they may otherwise rely on for future growth.

Market disruptions may increase the cost of borrowing or adversely affect the ability to access one or more financial markets. Such disruptions could include: economic downturns, unfavorable capital market conditions, market prices for natural gas and coal, geopolitical risks, actual or threatened terrorist attacks, or the overall health of the energy industry. Additionally, rapidly rising interest rates could impact the ability to affordably finance the capital plan or increase rates to customers and could have an impact on our ability to execute on our clean energy strategy. The availability of credit under Duke Energy’s Master Credit Facility depends upon the ability of the banks providing commitments under the facility to provide funds when their obligations to do so arise. Systemic risk of the banking system and the financial markets could prevent a bank from meeting its obligations under the facility agreement.

Duke Energy maintains a revolving credit facility to provide backup for its commercial paper program and letters of credit to support variable rate demand tax-exempt bonds that may be put to the Duke Energy Registrant issuer at the option of the holder. The facility includes borrowing sublimits for the Duke Energy Registrants, each of whom is a party to the credit facility, and financial covenants that limit the amount of debt that can be outstanding as a percentage of the total capital for the specific entity. Failure to maintain these covenants at a particular entity could preclude Duke Energy from issuing commercial paper or the Duke Energy Registrants from issuing letters of credit or borrowing under the Master Credit Facility.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

~~105~~96


EXHIBITS

ITEM 6. EXHIBITS

Exhibits filed herein are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Items constituting management contracts or compensatory plans or arrangements are designated by a double asterisk (**). The company agrees to furnish upon request to the commission a copy of any omitted schedules or exhibits upon request on all items designated by a triple asterisk (***).

Duke

Exhibit

Duke

Energy

Progress

Energy

Number

Energy

Carolinas

Energy

Progress

Florida

Ohio

Indiana

Piedmont

4.1

~~Twenty-seventh~~Ninety-fourth Supplemental Indenture, dated as of ~~June 15, 2022,~~March 1, 2023 (incorporated by reference to ~~the indenture,~~Exhibit 4.1 to registrant's Current Report on Form 8-K filed on March 9, 2023, File No. 1-3382).

4.2

Forty-eighth Supplemental Indenture, dated as of ~~June 3, 2008,~~March 22, 2023 (incorporated by reference to Exhibit 4.1 to registrant's Current Report on Form 8-K filed on March 22, 2023, File No. 1-1232).

4.3

Seventy-first Supplemental Indenture, dated as of March 23, 2023 (incorporated by reference to Exhibit 4.1 to registrant's Current Report on Form 8-K filed on March 23, 2023, File No. 1-3543).

4.4

Indenture, dated as of April 6, 2023, by and between Duke Energy Corporation and The Bank of New York Mellon Trust Company, N.A., as Trustee, and form of global note included therein (incorporated by reference ~~to Exhibit 4.1~~ to registrant's Current Report on Form 8-K filed on ~~June 16, 2022,~~April 6, 2023, File No. 1-32853).

~~4.2~~*10.1

~~Twelfth Supplemental Indenture~~Amendment No. 1, dated as of ~~May 13,~~March 17, 2023, to Amended and Restated Credit Agreement, dated as of March 18, 2022 ~~between Piedmont Natural Gas Company, Inc.~~

*10.2

Lender Waiver Letter, dated as of March 29, 2023, to Amended and ~~The Bank~~Restated Term Loan Credit Agreement, dated as of ~~New York Mellon Trust Company, N.A., as successor to Citibank, N.A. and form of global notes~~March 9, 2022

10.3**

Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit ~~4.1~~10.21 to registrant's ~~Current~~Annual Report on Form ~~8-K~~10-K for the year ended December 31, 2022, filed on ~~May 13, 2022,~~February 27, 2023, File No. ~~1-6196)~~1-32853).

10.4**

Performance Share Award Agreement (incorporated by reference to Exhibit 10.24 to registrant's Annual Report on Form 10-K for the year ended December 31, 2022, Filed on February 27, 2023, File No. 1-32853).

10.5**

Duke Energy Corporation 2023 Long-Term Incentive Plan (incorporated by reference to Appendix C to registrant's DEF14A filed on March 23, 2023, File No. 1-32853).

*10.6**

Duke Energy Corporation Director Compensation Program Summary

*31.1.1

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.2

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.3

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


EXHIBITS

*31.1.4

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.5

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.6

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.7

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.1.8

Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.1

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.2

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.3

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.4

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.5

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.6

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~106~~


~~EXHIBITS~~

*31.2.7

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2.8

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*32.1.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.3

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.4

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.5

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.6

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.7

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.1.8

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


EXHIBITS

*32.2.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.3

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.4

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.5

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.6

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.7

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*32.2.8

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*101.INS

XBRL Instance Document (this does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

~~107~~


~~EXHIBITS~~

*101.SCH

XBRL Taxonomy Extension Schema Document.

*101.CAL

XBRL Taxonomy Calculation Linkbase Document.

*101.LAB

XBRL Taxonomy Label Linkbase Document.

*101.PRE

XBRL Taxonomy Presentation Linkbase Document.

*101.DEF

XBRL Taxonomy Definition Linkbase Document.

*104

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

The total amount of securities of the registrant or its subsidiaries authorized under any instrument with respect to long-term debt not filed as an exhibit does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis. The registrant agrees, upon request of the SEC, to furnish copies of any or all of such instruments to it.

~~108~~99


SIGNATURES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.


		DUKE ENERGY CORPORATION DUKE ENERGY CAROLINAS, LLC PROGRESS ENERGY, INC. DUKE ENERGY PROGRESS, LLC DUKE ENERGY FLORIDA, LLC DUKE ENERGY OHIO, INC. DUKE ENERGY INDIANA, LLC PIEDMONT NATURAL GAS COMPANY, INC.

Date:	~~August 4, 2022~~May 9, 2023	/s/ ~~STEVEN K. YOUNG~~BRIAN D. SAVOY
		~~Steven K. Young~~Brian D. Savoy Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date:	~~August 4, 2022~~May 9, 2023	/s/ CYNTHIA S. LEE
		Cynthia S. Lee Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)

~~109~~100


	Six Months Ended June 30, 2022
	Electric		Gas				Total
	Utilities and		Utilities and		Commercial		Reportable
(in millions)	Infrastructure		Infrastructure		Renewables		Segments		Other		Eliminations		Total
Unaffiliated revenues	$	12,121	$	1,439	$	242	$	13,802	$	15	$	—	$	13,817
Intersegment revenues	16		46		—		62		45		(107)		—
Total revenues	$	12,137	$	1,485	$	242	$	13,864	$	60	$	(107)	$	13,817
Segment income (loss)(a)	$	1,697	$	273	$	41	$	2,011	$	(300)	$	—	$	1,711
Less: Noncontrolling interests													64
Add: Preferred stock dividend													53

Net Income													$	1,700








		Remaining Net
	Capacity	Book Value
	(in MW)	(in millions)
Duke Energy Carolinas
Allen Steam Station Unit 1(a)	167	$	12
Allen Steam Station Unit 5(b)	259	265
Cliffside Unit 5(b)	546	362
Duke Energy Progress
Mayo Unit 1(b)	713	634
Roxboro Units 3-4(b)	1,409	443
Duke Energy Florida
Crystal River Units 4-5(c)	1,442	1,615
Duke Energy Indiana
Gibson Units 1-5(d)	2,845	2,058
Cayuga Units 1-2(d)	1,005	660
Total Duke Energy	8,386	$	6,049


	Electric Utilities		Gas Utilities		Commercial
(in millions)	and Infrastructure		and Infrastructure		Renewables		Total




Goodwill balance	$	17,379	$	1,924	$	122	$	19,425
Accumulated impairment charges	—		—		(122)		(122)
Goodwill, adjusted for accumulated impairment charges	$	17,379	$	1,924	$	—	$	19,303