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Duke Energy Announces First Post-merger Quarterly Earnings



          Duke Energy Announces First Post-merger Quarterly Earnings

- Third quarter 2012 adjusted diluted earnings per share (EPS) were $1.47,
compared with $1.50 for the third quarter 2011

- Reported diluted EPS for third quarter 2012 was $0.85, compared to $1.06 for
the third quarter 2011

- Company is on pace to achieve its 2012 adjusted diluted earnings guidance
range of $4.20 to $4.35 per share

PR Newswire

CHARLOTTE, N.C., Nov. 8, 2012

CHARLOTTE, N.C., Nov. 8, 2012 /PRNewswire/ -- Duke Energy (NYSE: DUK) today
announced third quarter earnings that for the first time reflect its merger
with Progress Energy.

(Logo:  http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )

Third quarter 2012 adjusted diluted EPS was $1.47, compared to $1.50 for the
third quarter of 2011. Reported diluted EPS for the third quarter 2012 was
$0.85, compared to $1.06 for the same period last year. Last year's quarterly
results have been adjusted to reflect the one-for-three stock split that
occurred just prior to the merger closing on July 2, 2012.

Reported results include special items that are excluded from the company's
adjusted diluted EPS results. Special items for the third quarter 2012
primarily include $0.42 per share in charges related to the merger's closing,
and $0.17 per share in impairment charges related to the company's
Edwardsport, Ind., Integrated Gasification Combined Cycle (IGCC) project.
Special items for the third quarter 2011 primarily included $0.30 per share of
impairment charges related to Edwardsport as well as $0.12 per share of
emission allowance impairment charges.

On an adjusted earnings basis, Duke Energy continued to see strength in its
regulated businesses in the third quarter of 2012. Revised customer rates,
principally resulting from the company's modernization program, helped offset
less favorable weather and the expected reduced earnings from International
Energy and Commercial Power.

International Energy was affected by unfavorable average foreign exchange
rates, while Commercial Power's reduced earnings were principally due to the
new market-based Electric Security Plan (ESP) in Ohio.

The earnings contribution from the inclusion of Progress Energy's regulated
utility operations in the Carolinas and Florida was substantially offset by
dilution related to the issuance of additional shares in connection with the
merger.

"Our strong quarterly performance keeps us on track to achieve our targeted
2012 adjusted diluted EPS guidance range of $4.20 to $4.35," said Jim Rogers,
chairman, president and CEO.

"We recently celebrated the first 100 days as the 'new' Duke Energy and are
coming together as one stronger, more efficient organization," he added. "Our
employees are focused on delivering on our merger commitments to customers,
regulators and shareholders. We're off to a great start."

BUSINESS UNIT RESULTS
The discussion below of third-quarter results includes adjusted segment
income, which is a non-GAAP financial measure. The tables on pages 23 through
26 present a reconciliation of reported results to adjusted results.

U.S. Franchised Electric and Gas (USFE&G)
USFE&G recognized third-quarter 2012 adjusted segment income of $907 million,
compared to $472 million in the third quarter 2011, an increase of $0.62 per
share.

USFE&G's increased quarterly results were primarily driven by the addition of
Progress Energy's regulated utility operations in the Carolinas and Florida
(+$0.55 per share). Additionally, quarterly results were higher due to
increased pricing and riders (+$0.12 per share) principally related to the
implementation of revised customer rates at Duke Energy Carolinas, energy
efficiency programs, and lower governance and operating and maintenance costs
(+$0.01 per share).  

These results were partially offset by less favorable weather (-$0.06 per
share).

International Energy
International Energy recognized third-quarter 2012 adjusted segment income of
$103 million, compared to $115 million in the third quarter 2011, a decrease
of $0.02 per share.

International Energy's quarterly results decreased primarily due to
unfavorable average foreign currency exchange rates (-$0.01 per share).

Commercial Power
Commercial Power recognized third-quarter 2012 adjusted segment income of $31
million, compared to $74 million in the third quarter 2011, a decrease of
$0.06 per share.

Commercial Power's quarterly results decreased primarily due to lower results
for the Midwest coal generation fleet (-$0.06 per share) resulting from the
new market-based ESP in Ohio, partially offset by the ESP's non-bypassable
stability charge. The new market-based ESP became effective Jan. 1, 2012.

Other
On an adjusted basis, Other primarily includes corporate interest expense not
allocated to the business units, results from Duke Energy's captive insurance
company, other investments, and income tax levelization adjustments.

Other recognized a third-quarter 2012 adjusted net expense of $16 million,
compared to income of $5 million in the third quarter 2011, a decrease of
$0.03 per share. Other's results decreased primarily due to the addition of
interest expense on Progress Energy's corporate debt (-$0.05 per share).

Share Dilution
On July 2, 2012, Duke Energy issued approximately 258 million shares of common
stock in connection with the closing of the merger with Progress Energy, Inc.
The issuance of these additional shares had a dilutive impact of $0.54 per
share on the quarter-over-quarter adjusted diluted EPS results.

Reconciliation of quarterly reported to adjusted diluted EPS
Mark-to-market impacts of economic hedges in the Commercial Power segment and
special items excluded from Duke Energy's adjusted diluted EPS for the
quarters include:

                                                               3Q2012  3Q2011
                                                     
                                                               EPS     EPS
                                     Pre-Tax Amount Tax Effect
(In millions, except per-share                                 Impact  Impact
amounts)
Third Quarter 2012
-  Costs to Achieve, Progress Merger $(457)         $164       $(0.42)
-   Edwardsport Impairment           $(180)         $63        $(0.17)
-  Other                             $(10)          $4         $(0.01)
-   Mark-to-market impact of         $(31)          $12        $(0.03)
economic hedges
Third Quarter 2011
-   Edwardsport Impairment           $(222)         $87                $(0.30)
-   Emission Allowances Impairment   $(79)          $28                $(0.12)
-   Costs to Achieve, Progress       $(13)          $3                 $(0.02)
Merger
-   Mark-to-market impact of         $1             --                 $0.00
economic hedges
Total diluted EPS impact                                       $(0.63) $(0.44)

Reconciliation of reported to adjusted diluted EPS for the quarters:

                                                                3Q2012  3Q2011

                                                                EPS     EPS
Diluted EPS, as reported                                        $0.85   $1.06
Adjustments to reported EPS:                                             

-  Diluted EPS impact of special items and mark-to-market in    $0.63    
Commercial Power
                                                                $(0.01) $0.44
-  Discontinued operations, net of tax
                                                                        --
Diluted EPS, adjusted                                           $1.47   $1.50

Analyst Conference Call
An earnings conference call for analysts is scheduled for 10 a.m. ET Thursday,
Nov. 8, to discuss Duke Energy's financial performance for the third quarter
2012 as well as providing other business updates. The conference call will be
hosted by Jim Rogers, chairman, president and chief executive officer, and
Lynn Good, executive vice president and chief financial officer. 

The call can be accessed via the investors' section
(http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing
866-454-4209 in the United States or 913-312-1393 outside the United States.
The confirmation code is 3151154. Please call in 10 to 15 minutes prior to the
scheduled start time.

A replay of the conference call will be available until midnight ET, Nov. 18,
2012, by calling 888-203-1112 in the United States or 719-457-0820 outside the
United States and using the code 3151154. A replay and transcript also will be
available by accessing the investors' section of the company's website.

NON-GAAP FINANCIAL MEASURES
The primary performance measure used by management to evaluate segment
performance is segment income. Segment income is defined as income from
continuing operations net of income attributable to non-controlling interests.
In addition, direct interest expense and income taxes are included in segment
income and certain governance costs are allocated to each of the segments.

Management believes segment income, which is the GAAP measure used to report
segment results, is a good indicator of each segment's operating performance
as it represents the approximate net income contribution of Duke Energy's
business segments by incorporating the direct financing methods or capital
structures of the business segments as well as the income tax attributes of
the businesses and regions in which they operate.

Duke Energy's management uses adjusted diluted EPS, which is a non-GAAP
financial measure as it represents diluted EPS from continuing operations
attributable to Duke Energy Corporation common shareholders, adjusted for the
per-share impact of special items and the mark-to-market impacts of economic
hedges in the Commercial Power segment, as a measure to evaluate operations of
the company. In addition, Duke Energy's management calculates the EPS impact
of segment income drivers to facilitate an understanding of the impacts of
each income driver on consolidated adjusted diluted EPS.

Special items represent certain charges and credits, which management believes
will not be recurring on a regular basis, although it is reasonably possible
such charges and credits could recur. Mark-to-market adjustments reflect the
mark-to-market impact of derivative contracts, which is recognized in GAAP
earnings immediately as such derivative contracts do not qualify for hedge
accounting or regulatory accounting treatment, used in Duke Energy's hedging
of a portion of the economic value of its generation assets in the Commercial
Power segment. The economic value of the generation assets is subject to
fluctuations in fair value due to market price volatility of the input and
output commodities (e.g. coal, power) and, as such, the economic hedging
involves both purchases and sales of those input and output commodities
related to the generation assets. Because the operations of the generation
assets are accounted for under the accrual method, management believes that
excluding the impact of mark-to-market changes of the economic hedge contracts
from adjusted earnings until settlement better matches the financial impacts
of the hedge contract with the portion of the economic value of the underlying
hedged asset. Management believes that the presentation of adjusted diluted
EPS provides useful information to investors, as it provides them an
additional relevant comparison of the company's performance across periods.
Adjusted diluted EPS is also used as a basis for employee incentive bonuses.
The most directly comparable GAAP measure for adjusted diluted EPS is reported
diluted EPS from continuing operations attributable to Duke Energy Corporation
common shareholders, which includes the impact of special items and the
mark-to-market impacts of economic hedges in the Commercial Power segment. Due
to the forward-looking nature of adjusted diluted EPS for future periods,
information to reconcile such non-GAAP financial measures to the most directly
comparable GAAP financial measures is not available at this time, as the
company is unable to forecast special items and the mark-to-market impacts of
economic hedges in the Commercial Power segment for future periods.

Duke Energy also uses adjusted segment income and adjusted Other net expenses
as a measure of historical and anticipated future segment and Other
performance. Adjusted segment income and adjusted Other net expenses are
non-GAAP financial measures, as they represent reported segment income and
Other net expenses adjusted for special items and the mark-to-market impacts
of economic hedges in the Commercial Power segment. Management believes that
the presentation of adjusted segment income and adjusted Other net expenses
provides useful information to investors, as it provides them an additional
relevant comparison of a segment's or Other's performance across periods. When
an EPS amount is provided for a segment income driver, the per share impact is
derived by taking the before-tax amount of the item less income taxes based on
the segment's effective tax rate, divided by the Duke Energy weighted-average
shares outstanding for the period. The most directly comparable GAAP measure
for adjusted segment income or adjusted Other net expenses is reported segment
income or Other net expenses, which represents segment income and Other net
expenses from continuing operations, including any special items and the
mark-to-market impacts of economic hedges in the Commercial Power segment. Due
to the forward-looking nature of any forecasted adjusted segment income or
adjusted Other net expenses and any related growth rates for future periods,
information to reconcile these non-GAAP financial measures to the most
directly comparable GAAP financial measures is not available at this time, as
the company is unable to forecast special items, the mark-to-market impacts of
economic hedges in the Commercial Power segment, or any amounts that may be
reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States
with more than $100 billion in total assets. Its regulated utility operations
serve approximately 7.1 million electric customers located in six states in
the Southeast and Midwest. Its commercial power and international business
segments own and operate diverse power generation assets in North America and
Latin America, including a growing portfolio of renewable energy assets in the
United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded
on the New York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com. 

Forward-Looking Information
This release 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.

These forward-looking statements are identified by terms and phrases such as
"anticipate," "believe," "intend," "estimate," "expect," "continue," "should,"
"could," "may," "plan," "project," "predict," "will," "potential," "forecast,"
"target," "guidance," "outlook" and similar expressions. Forward-looking
statements involve risks and uncertainties that may cause actual results to be
materially different from the results predicted. Factors that could cause
actual results to differ materially from those indicated in any
forward-looking statement include, but are not limited to: state, federal and
foreign legislative and regulatory initiatives, including costs of compliance
with existing and future environmental requirements, as well as rulings that
affect cost and investment recovery or have an impact on rate structures; the
ability to recover eligible costs and earn an adequate return on investment
through the regulatory process; the scope of necessary repairs of the
delamination of Crystal River Unit 3 Nuclear Plant could prove more extensive
or costly than is currently identified, such repairs could prove not to be
feasible resulting in early retirement of the unit, the cost of repair and/or
replacement power could exceed estimates and insurance coverage or may not be
recoverable through the regulatory process; the ability to maintain
relationships with customers, employees or suppliers post-merger; the ability
to successfully integrate the Progress Energy businesses and realize cost
savings and any other synergies expected from the merger; the risk that the
credit ratings of the combined company or its subsidiaries may be different
from what the companies expect; the impact of compliance with material
restrictions of conditions related to the Progress Energy merger imposed by
regulators could exceed our expectations; costs and effects of legal and
administrative proceedings, settlements, investigations and claims;
industrial, commercial and residential growth or decline in the respective
Duke Energy Registrants' service territories, customer base or customer usage
patterns; additional competition in electric markets and continued industry
consolidation; political and regulatory uncertainty in other countries in
which Duke Energy conducts business; the influence of weather and other
natural phenomena on each of the Duke Energy Registrants' operations,
including the economic, operational and other effects of storms, hurricanes,
droughts and tornadoes; the ability to successfully operate electric
generating facilities and deliver electricity to customers; the ability to
recover, in a timely manner, if at all, costs associated with future
significant weather events through the regulatory process; the impact on the
Duke Energy Registrants' facilities and business from a terrorist attack,
cyber security threats and other catastrophic events; the inherent risks
associated with the operation and potential construction of nuclear
facilities, including environmental, health, safety, regulatory and financial
risks; the timing and extent of changes in commodity prices, interest rates
and foreign currency exchange rates and the ability to recover such costs
through the regulatory process, where appropriate; unscheduled generation
outages, unusual maintenance or repairs and electric transmission system
constraints; the performance of electric generation facilities and of projects
undertaken by Duke Energy's non-regulated businesses; the results of financing
efforts, including the Duke Energy Registrants' ability to obtain financing on
favorable terms, which can be affected by various factors, including the
respective Duke Energy Registrants' credit ratings and general economic
conditions; declines in the market prices of equity securities and resultant
cash funding requirements for Duke Energy's defined benefit pension plans and
nuclear decommissioning trust funds; the level of creditworthiness of
counterparties to Duke Energy Registrants' transactions; employee workforce
factors, including the potential inability to attract and retain key
personnel; growth in opportunities for the respective Duke Energy Registrants'
business units, including the timing and success of efforts to develop
domestic and international power and other projects; construction and
development risks associated with the completion of Duke Energy Registrants'
capital investment projects in existing and new generation facilities,
including risks related to financing, 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 ratepayers in a timely manner or at all; the subsidiaries ability
to pay dividends or distributions to Duke Energy Corporation holding company
(the Parent); the effect of accounting pronouncements issued periodically by
accounting standard-setting bodies; the impact of potential goodwill
impairments; and the ability to successfully complete future merger,
acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Progress
Energy's and Duke Energy's reports filed with the SEC and available at the
SEC's website at www.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 Duke Energy has described. Duke
Energy undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

 

DUKE ENERGY CORPORATION
EARNINGS VARIANCES
September 2012 QTD vs. Prior Year
                  U.S.
($ per share)     Franchised  International  Commercial  Other    Consolidated
                  Electric &  Energy         Power
                  Gas
2011 QTD          $                          $           $      
Reported                      $                                   $          
Earnings Per      0.76              0.26     0.05                         1.06
Share, Diluted                                            (0.01)
Costs to
Achieve,          -           -              -           0.02     0.02
Progress Merger
Edwardsport       0.30        -              -           -        0.30
Impairment
Emission
Allowances        -           -              0.12        -        0.12
Impairment
2011 QTD          $                          $           $      
Adjusted                      $                                   $          
Earnings Per      1.06              0.26     0.17                         1.50
Share, Diluted                                           0.01
Share             (0.38)      (0.09)         (0.07)      -        (0.54)
Differential (a)
2011 QTD
Adjusted          $                          $           $      
Earnings Per                  $                                   $          
Share, Diluted,   0.68              0.17     0.10                         0.96
Recasted for                                             0.01
Share Issuance
Progress Energy   0.55        -              -           (0.05)   0.50
Contribution
Weather           (0.06)      -              -           -        (0.06)
Pricing and       0.12        -              -           -        0.12
Riders (b)
Operation and
Maintenance and   0.01        -              -           -        0.01
Governance
Expenses
Latin America,
including         -           (0.02)         -           -        (0.02)
Foreign Exchange
Rates (c)
Midwest Coal      -           -              (0.06)      -        (0.06)
Generation (d)
Midwest Gas       -           -              (0.02)      -        (0.02)
Generation (e)
Duke Energy       -           -              (0.01)      -        (0.01)
Retail 
Duke Energy       -           -              0.02        -        0.02
Renewables
                  -
Interest          -           -              -           (0.01)   (0.01)
Expense 
Income Tax        -           -              -           0.01     0.01
Expense (f)
Other (g)         -           -              0.01        0.02     0.03
                                             -
2012 QTD          $                          $           $      
Adjusted                      $                                   $          
Earnings Per      1.30              0.15     0.04                         1.47
Share, Diluted                                            (0.02)
Costs to
Achieve,          -           -              -           (0.42)   (0.42)
Progress Merger
Edwardsport       (0.17)      -              -           -        (0.17)
Impairment
Democratic
National
Convention Host   -           -              -           (0.01)   (0.01)
Committee
Support
Economic Hedges   -           -              (0.03)      -        (0.03)
(Mark-to-Market)
Discontinued      -           -              -           -        0.01
Operations
2012 QTD          $                          $           $      
Reported                      $                                   $          
Earnings Per      1.13              0.15     0.01                         0.85
Share, Diluted                                            (0.45)
(a) Reflects the impact on prior period earnings per diluted share due to the
increase in Duke Energy's average diluted common shares outstanding as a
result of shares issued to complete the merger with Progress Energy. Weighted
average shares outstanding increased from 444 million for the quarter ended
September 30, 2011 to 699 million for the quarter ended September 30, 2012.
(b) Primarily due to implementation of revised customer rates in North
Carolina and South Carolina as a result of the 2011 rate case (+$0.11) and
increased riders (+$0.02).
(c) Primarily due to Central America (-$0.01) and unfavorable foreign currency
exchange rates (-$0.01).
(d) Primarily due to the new market-based Ohio ESP (-$0.10), partially offset
by the non-bypassable stabilization charge (+$0.03).
(e) Primarily due to a decrease in capacity revenue (-$0.03) and favorable
generation volumes, net of lower pricing (+$0.01).
(f) Primarily represents the change in effective tax rates for the period. 
(g) Amount for U.S. Franchised Electric & Gas is primarily due to an increase
in depreciation and amortization expense (-$0.02), offset by other
miscellaneous items (+$0.02).
Note: Adjusted and Reported Earnings Per Share amounts by segment may not
recompute from other published schedules due to rounding.

 

DUKE ENERGY CORPORATION
EARNINGS VARIANCES
September 2012 YTD vs. Prior Year
                  U.S.
($ per share)     Franchised  International  Commercial  Other    Consolidated
                  Electric &  Energy         Power
                  Gas
2011 YTD          $                          $           $      
Reported                      $                                   $          
Earnings Per      2.20           0.83         0.22        (0.06)     3.19
Share, Diluted
Costs to
Achieve,          -           -              -           0.05     0.05
Progress Merger
Edwardsport       0.30        -              -           -        0.30
Impairment
Emission
Allowances        -           -              0.12        -        0.12
Impairment
Economic Hedges   -           -              0.01        -        0.01
(Mark-to-Market)
2011 YTD          $                          $           $      
Adjusted                      $                                   $          
Earnings Per      2.50           0.83         0.35        (0.01)     3.67
Share, Diluted
Share             (0.41)      (0.13)         (0.06)      (0.01)   (0.61)
Differential (a)
2011 YTD
Adjusted          $                          $           $      
Earnings Per                  $                                   $          
Share, Diluted,   2.09           0.70         0.29        (0.02)     3.06
Recasted for
Share Issuance
Progress Energy   0.73        -              -           (0.07)   0.66
Contribution
Weather           (0.23)      -              -           -        (0.23)
Pricing and       0.40        -              -           -        0.40
Riders (b)
Operation and
Maintenance and   0.12        -              -           -        0.12
Governance
Expenses
Latin America,
including         -           (0.09)         -           -        (0.09)
Foreign Exchange
Rates (c)
NMC               -           0.03           -           -        0.03
Midwest Coal      -           -              (0.13)      -        (0.13)
Generation (d)
Midwest Gas       -           -              0.02        -        0.02
Generation (e)
Duke Energy       -           -              (0.07)      -        (0.07)
Retail 
Duke Energy       -           -              0.05        -        0.05
Renewables
Interest Expense  (0.02)      -              -           (0.02)   (0.04)
Income Tax        (0.01)      -              -           0.01     -
Expense (f)
Other (g)         (0.09)      0.02           0.02        0.01     (0.04)
2012 YTD          $                          $           $      
Adjusted                      $                                   $          
Earnings Per      2.99           0.66         0.18        (0.09)     3.74
Share, Diluted
Costs to
Achieve,                                                 (0.58)   (0.58)
Progress Merger
Voluntary
Opportunity Plan  0.11        -              -           -        0.11
Deferral
Edwardsport       (0.72)      -              -           -        (0.72)
Impairment
Democratic
National
Convention Host   -           -              -           (0.01)   (0.01)
Committee
Support
Economic Hedges   -           -              (0.04)      -        (0.04)
(Mark-to-Market)
Discontinued      -           -              -           -        0.01
Operations
2012 YTD          $                          $           $      
Reported                      $                                   $          
Earnings Per      2.38           0.66         0.14        (0.68)     2.51
Share, Diluted
(a) Reflects the impact on prior period earnings per diluted share due to the
increase in Duke Energy's average diluted common shares outstanding as a
result of shares issued to complete the merger with Progress Energy.  Weighted
average shares outstanding increased from 444 million for the nine months
ended September 30, 2011 to 531 million for the nine months ended September
30, 2012.
(b) Primarily due to implementation of revised customer rates (+$0.32) and
increased riders (+$0.07).
(c) Primarily driven by lower average prices in Central America and absence of
prior year arbitration award in Peru (-$0.07) and unfavorable foreign exchange
rates (-$0.06), partially offset by higher average sales prices and volumes in
Brazil (+$0.06).
(d) Primarily due to the new market-based Ohio ESP (-$0.34), partially offset
by the non-bypassable stabilization charge (+$0.10), favorable capacity
revenues (+$0.09), and lower operation and maintenance (+$0.01).
(e) Primarily due to favorable generation volumes (+$0.07) and recovery of a
Lehman Brothers receivable previously written-off (+$0.02), partially offset
by a decrease in capacity revenue (-$0.08).
(f) Primarily represents the change in effective tax rates for the period. 
(g)  Amount for U.S. Franchised Electric & Gas is primarily due to an increase
in depreciation and amortization expense (-$0.11), partially offset by other
miscellaneous items (+$0.02).
Note: Adjusted and Reported Earnings Per Share amounts by segment may not
recompute from other published schedules due to rounding.

 

September 2012
QUARTERLY HIGHLIGHTS
(Unaudited)
                             Three Months Ended        Nine Months Ended
                             September 30,             September 30,
(In millions, except
per-share amounts and        2012         2011         2012        2011
where noted)
COMMON STOCK DATA
Income from continuing operations attributable to Duke Energy Corporation
common shareholders^(a)
    Basic                    $            $            $           $        
                                  0.84         1.06         2.50        3.19
    Diluted                  $            $            $           $        
                                  0.84         1.06         2.50        3.19
Income from discontinued operations attributable to Duke Energy Corporation
common shareholders^(a)
    Basic                    $            $            $           $        
                                  0.01             -        0.01            -
    Diluted                  $            $            $           $        
                                  0.01             -        0.01            -
Net income attributable to Duke Energy Corporation common shareholders^(a)
    Basic                    $            $            $           $        
                                  0.85         1.06         2.51        3.19
    Diluted                  $            $            $           $        
                                  0.85         1.06         2.51        3.19
  Dividends Declared Per     $            $            $           $        
Share^(a)                                                 2.265         2.22
                              -            -
  Weighted-Average
Shares Outstanding^(a)
    Basic                    699          444          531         444
    Diluted                  699          444          531         444
SEGMENT INCOME BY
BUSINESS SEGMENT
U.S. Franchised Electric     $            $            $           $        
and Gas^(b)(c)                     790          337       1,263          975
Commercial Power^(d)         12           24           71          103
International Energy         103          115          350         370
Total Reportable Segment     905          476          1,684       1,448
Income
Other Net Expense^(e)        (315)        (5)          (356)       (31)
(Loss) Income from
Discontinued Operations,     4            1            5           1
net of tax
Total Reportable Segment     $            $            $           $        
Income and Other Net               594          472       1,333       1,418
Expense
CAPITALIZATION
Total Common Equity                                    51%         54%
Preferred Stock of                                     -           -
Subsidiaries
Total Debt                                             49%         46%
Total Debt                                             $           $        
                                                        39,472      19,866
Book Value Per Share^(a)                               $           $        
                                                          58.38       51.57
Actual Shares                                          704         444
Outstanding^(a)
CAPITAL AND INVESTMENT
EXPENDITURES
U.S. Franchised Electric     $            $            $           $        
and Gas                         1,270           900       2,860       2,656
Commercial Power             205          118          825         224
International Energy         95           38           119         96
Other                        21           29           84          100
Total Capital and            $            $            $           $        
Investment Expenditures         1,591        1,085        3,888       3,076
(a) Reflects the impact of the 1-for-3 reverse stock split on July 2, 2012.
(b) Includes impairment and other charges of $268 million in the first quarter
of 2012 related to the Edwardsport IGCC project (net of tax of $152
million), and includes impairment and other charges of $117 million in the
third quarter of 2012 related to the Edwardsport IGCC project (net of tax of
$63 million).
(c) Includes impairment and other charges of $135 million in the third quarter
of 2011 related to the Edwardsport IGCC project (net of tax of $87 million).
(d) Includes non-cash impairment charges of $79 million in 2011 related to an
emission allowances impairment.
(e) Includes costs to achieve of $293 million in the third quarter of 2012
related to the Progress merger on July 2, 2012 (net of tax of $164 million).

 

September 2012
QUARTERLY HIGHLIGHTS
(Unaudited)
                         Three Months Ended          Nine Months Ended
                         September 30,               September 30,
(In millions, except     2012          2011          2012          2011
where noted)
U.S. FRANCHISED
ELECTRIC AND GAS
                         $             $             $             $        
  Operating Revenues                                                        
                         5,842         2,926          11,207                
                                                                        8,158
  Operating Expenses     4,433         2,323         8,914         6,446
(a)
  Gains on Sales of      6             1             13            2
Other Assets, net
  Operating Income       1,415         604           2,306         1,714
  Other Income and       103           72            227           201
Expenses
  Interest Expense       257           145           546           419
  Income Before Income   1,261         531           1,987         1,496
Taxes
  Income Tax Expense     470           194           723           521
(b)
  Less: Income
Attributable to          1             -             1             -
Noncontrolling
Interests
                                                                   $        
                         $             $             $                      
  Segment Income                                                            
                          790           337           1,263               
                                                                    975
                         $             $             $             $        
  Depreciation and                                                          
Amortization              545           352           1,275                 
                                                                        1,032
  Duke Energy            22,780        22,832        61,815        63,626
Carolinas GWh sales
  Progress Energy        16,754        16,028        43,387        43,614
Carolinas GwH sales
  Progress Energy        11,466        12,000        29,814        31,306
Florida Gwh sales
  Duke Energy Ohio GWh   6,804         7,056         18,600        19,315
sales
  Duke Energy Indiana    8,923         9,071         25,684        25,501
GWh sales
  Net Proportional MW                                47,450        26,907
Capacity in Operation
COMMERCIAL POWER
                         $             $             $             $        
  Operating Revenues                                                        
                          525           687           1,607                 
                                                                        1,926
  Operating Expenses     522           627           1,512         1,741
  Gains on Sales of      10            2             11            15
Other Assets, net
  Operating Income       13            62            106           200
  Other Income and       1             4             26            21
Expenses
  Interest Expense       14            21            55            67
  Income Before Income   -             45            77            154
Taxes
  Income Tax Expense     (13)          20            5             43
  Less: Income
Attributable to          1             1             1             8
Noncontrolling
Interests
                                                                   $        
                         $             $             $                      
  Segment Income                                                            
                              12           24             71                
                                                                   103
                                                                   $        
  Depreciation and       $             $             $                      
Amortization                                                                
                             58            56          172                  
                                                                   173
Actual Coal-fired        5,054         5,013         12,421        13,420
Plant Production, GWh
Actual Gas-fired Plant   4,387         3,255         13,483        8,476
Production, GWh
Actual Renewable Plant   615           545           2,399         2,286
Production, GWh
Actual Plant             10,056        8,813         28,303        24,182
Production, GWh
  Net Proportional MW                                7,760         8,300
Capacity in Operation
INTERNATIONAL ENERGY
                                                                   $        
                         $             $             $                      
  Operating Revenues                                                        
                          382           360           1,181             
                                                                    1,114
  Operating Expenses     266           239           768           715
  Operating Income       116           121           413           399
  Other Income and       46            52            136           166
Expenses
  Interest Expense       23            4             60            31
  Income Before Income   139           169           489           534
Taxes
  Income Tax Expense     34            51            129           154
  Less: Income
Attributable to          2             3             10            10
Noncontrolling
Interests
                                                                   $        
                         $             $             $                      
  Segment Income                                                            
                           103            115         350                 
                                                                    370
                                                                   $        
  Depreciation and       $             $             $                      
Amortization                                                                
                             25            23            74                 
                                                                     66
  Sales, GWh             5,308         4,565         15,264        13,868
  Proportional MW                                    4,465         4,190
Capacity in Operation
OTHER 
                                                                   $        
                         $             $             $                      
  Operating Revenues                                                        
                             20             14            51                
                                                                     34
  Operating Expenses     484           26            514           79
(c)
  Losses on Sales of     (2)           (8)           (3)           (8)
Other Assets, net
  Operating Loss         (466)         (20)          (466)         (53)
  Other Income and       15            (5)           14            43
Expenses
  Interest Expense       107           43            196           118
  Loss Before Income     (558)         (68)          (648)         (128)
Taxes
  Income Tax Benefit     (243)         (57)          (292)         (85)
(d)
  Less: Loss
Attributable to          -             (6)           -             (12)
Noncontrolling
Interests
                                                                   $        
                         $             $             $                      
  Net Expense                                                               
                         (315)              (5)       (356)                 
                                                                    (31)
                                                                   $        
  Depreciation and       $             $             $                      
Amortization                                                                
                             38            24            99                 
                                                                     75
(a) Includes pre-tax impairment and other charges related to the Edwardsport
IGCC project of $180 million and $600 million for the three and nine months
ended September 30, 2012, respectively, and $222 million for both the three
and nine months ending September 30, 2011.
(b) Includes a tax benefit related to the Edwardsport IGCC project of $63
million and $215 million for the three and nine months ended September 30,
2012, respectively, and $87 million for both the three and nine months ending
September 30, 2011.
(c) Includes costs to achieve of $366 million and $381 million for the three
and nine months ended September 30, 2012, respectively, recorded in Operation,
maintenance and other and costs to achieve of $86 million for both the three
and nine months ended September 30, 2012 recorded in Impairment charges (all
Operating Expenses).
(d) Includes a tax benefit related to costs to achieve of $164 million and
$166 million for the three and nine months ended September 30, 2012,
respectively.

 

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per-share amounts)
                                      Three Months Ended   Nine Months Ended
                                      September 30,        September 30,
                                      2012      2011       2012      2011
Operating Revenues
Regulated electric                    $         $          $         $        
                                      5,763     3,016      10,892    8,165
Non-regulated electric, natural gas,  882       867        2,708     2,586
and other
Regulated natural gas                 77        81         329       410
Total operating revenues              6,722     3,964      13,929    11,161
Operating Expenses
Fuel used in electric generation and  2,222     957        3,848     2,603
purchased power - regulated
Fuel used in electric generation and  484       383        1,328     1,147
purchased power - non-regulated 
Cost of natural gas and coal sold     40        48         184       262
Operation, maintenance and other      1,654     866        3,262     2,705
Depreciation and amortization         666       455        1,620     1,346
Property and other taxes              326       183        681       538
Impairment charges                    266       300        668       309
Total operating expenses              5,658     3,192      11,591    8,910
Gains (Losses) on Sales of Other      14        (5)        21        9
Assets and Other, net
Operating Income                      1,078     767        2,359     2,260
Other Income and Expenses
Equity in earnings of unconsolidated  33        43         118       123
affiliates
Impairments and gains on sales of     -         (3)        (6)       11
unconsolidated affiliates
Other income and expenses, net        132       83         291       297
Total other income and expenses       165       123        403       431
Interest Expense                      401       213        857       635
Income From Continuing Operations     842       677        1,905     2,056
Before Income Taxes
Income Tax Expense from Continuing    248       208        565       633
Operations
Income From Continuing Operations     594       469        1,340     1,423
Income From Discontinued Operations,  4         1          5         1
net of tax
Net Income                            598       470        1,345     1,424
Less: Net Income (Loss) Attributable  4         (2)        12        6
to Noncontrolling Interests 
Net Income Attributable to Duke       $         $          $         $        
Energy Corporation                       594       472     1,333     1,418
Earnings Per Share - Basic and
Diluted
Income from continuing operations attributable to Duke
Energy Corporation common shareholders
       Basic                          $         $          $         $        
                                        0.84      1.06       2.50      3.19
       Diluted                        $         $          $         $        
                                        0.84      1.06       2.50      3.19
Income from discontinued operations attributable to Duke
Energy Corporation common shareholders
       Basic                          $         $          $         $        
                                        0.01           -     0.01           -
       Diluted                        $         $          $         $        
                                        0.01           -     0.01           -
Net Income attributable to Duke Energy Corporation common
shareholders
       Basic                          $         $          $         $        
                                        0.85      1.06       2.51      3.19
       Diluted                        $         $          $         $        
                                        0.85      1.06       2.51      3.19
Dividends declared per share          $         $          $         $        
                                              -         -  2.265       2.22
Weighted-average shares outstanding
       Basic                          699       444        531       444
       Diluted                        699       444        531       444

 

DUKE ENERGY CORPORATION
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(In millions)
                                          September 30,        December 31,
                                          2012                 2011
ASSETS
Current Assets
Cash and cash equivalents                 $                    $              
                                          1,761                2,110
Short-term investments                    335                  190
Receivables (net of allowance for
doubtful accounts of 
  $31 at September 30, 2012 and $35 at    1,596                784
  December 31, 2011)
Restricted receivables of variable
interest entities (net of
  allowance for doubtful accounts of $43
  at September 30, 2012 and $40 at        1,250                1,157
  December 31, 2011)
Inventory                                 3,041                1,588
Other                                     2,123                1,051
  Total current assets                    10,106               6,880
Investments and Other Assets
Investments in equity method              542                  460
unconsolidated affiliates
Nuclear decommissioning trust funds       4,155                2,060
Goodwill                                  16,180               3,849
Intangibles, net                          359                  363
Notes receivable                          74                   62
Restricted other assets of variable       115                  135
interest entities
Other                                     2,186                2,231
  Total investments and other assets      23,611               9,160
Property, Plant and Equipment
Cost                                      100,156              60,377
Cost, variable interest entities          961                  913
Accumulated depreciation and              (32,318)             (18,709)
amortization
Generation facilities to be retired, net  232                  80
  Net property, plant and equipment       69,031               42,661
Regulatory Assets and Deferred Debits
Regulatory assets                         9,097                3,672
Other                                     163                  153
  Total regulatory assets and deferred    9,260                3,825
  debits
Total Assets                              $           112,008  $            
                                                               62,526
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable                          $                    $              
                                          1,912                1,433
Notes payable and commercial paper        600                  154
Non-recourse notes payable of variable    275                  273
interest entities
Taxes accrued                             601                  431
Interest accrued                          474                  252
Current maturities of long-term debt      2,488                1,894
Other                                     2,206                1,091
  Total current liabilities               8,556                5,528
Long-term Debt                            35,198               17,730
Non-recourse long-term debt of variable   911                  949
interest entities
Deferred Credits and Other Liabilities
Deferred income taxes                     10,317               7,581
Investment tax credits                    462                  384
Accrued pension and other                 2,542                856
post-retirement benefit costs
Asset retirement obligations              4,846                1,936
Regulatory liabilities                    5,739                2,919
Other                                     2,349                1,778
  Total deferred credits and other        26,255               15,454
  liabilities
Commitments and Contingencies
Preferred stock of subsidiaries           93                   -
Equity
Common stock, $0.001 par value, 2
billion shares authorized;  
  704 million and 445 million shares
  outstanding at September 30, 2012 and   1                    1
  December 31, 2011, respectively
Additional paid-in capital                39,249               21,132
Retained earnings                         1,995                1,873
Accumulated other comprehensive loss      (340)                (234)
  Total Duke Energy Corporation           40,905               22,772
  shareholders' equity
Noncontrolling interests                  90                   93
  Total equity                            40,995               22,865
Total Liabilities and Equity              $           112,008  $            
                                                               62,526

 

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
                                                 Nine Months Ended
                                                 September 30,
                                                 2012           2011
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                      $              $            
                                                 1,345          1,424
 Adjustments to reconcile net income to net
 cash provided by
   operating activities:                         2,634          1,603
       Net cash provided by operating            3,979          3,027
       activities
CASH FLOWS FROM INVESTING ACTIVITIES
       Net cash used in investing activities     (3,989)        (3,070)
CASH FLOWS FROM FINANCING ACTIVITIES
       Net cash (used in) provided by financing  (339)          405
       activities
 Net (decrease) increase in cash and cash        (349)          362
 equivalents
 Cash and cash equivalents at beginning of       2,110          1,670
 period
 Cash and cash equivalents at end of period      $              $            
                                                 1,761          2,032

 

Duke Energy Carolinas
Quarterly Highlights
Supplemental Franchised Electric Information
September 2012
              Three Months Ended                Nine Months Ended
              September 30,                     September 30,
                                    %                                 %
              2012       2011       Inc.(Dec.)  2012       2011       Inc.(Dec.)
GWH Sales 
 Residential  7,973      8,493      (6.1%)      20,534     22,692     (9.5%)
 General      7,911      7,988      (1.0%)      21,057     21,236     (0.8%)
 Service
 Industrial   5,629      5,665      (0.6%)      15,899     15,782     0.7%
 Other
 Energy       73         71         2.1%        217        215        0.9%
 Sales
     Total
 Regular      21,586     22,217     (2.8%)      57,707     59,925     (3.7%)
 Sales
 Billed
 Special      1,991      1,615      23.3%       4,464      4,686      (4.7%)
 Sales (1)
       Total
 Electric     23,577     23,832     (1.1%)      62,171     64,611     (3.8%)
 Sales
 Unbilled     (797)      (1,000)    20.3%       (356)      (985)      63.9%
 Sales
   Total
 Electric
 Sales - Duke 22,780     22,832     (0.2%)      61,815     63,626     (2.8%)
 Energy
 Carolinas
Average
Number of
Customers
 Residential  2,054,732  2,042,267  0.6%        2,051,471  2,040,093  0.6%
 General      337,276    335,077    0.7%        336,569    334,302    0.7%
 Service
 Industrial   6,718      6,910      (2.8%)      6,774      6,987      (3.1%)
 Other
 Energy       14,393     14,246     1.0%        14,334     14,204     0.9%
 Sales
   Total
 Regular      2,413,119  2,398,500  0.6%        2,409,148  2,395,586  0.6%
 Sales
 Special      24         26         (8.2%)      23         26         (9.8%)
 Sales
 Total
 Average
 Number of    2,413,143  2,398,526  0.6%        2,409,171  2,395,612  0.6%
 Customers -
 Duke Energy
 Carolinas
Heating and
Cooling
Degree Days
 Actual
 Heating      8          18         (55.6%)     1,488      1,953      (23.8%)
 Degree Days
 Cooling      986        1,126      (12.4%)     1,544      1,766      (12.6%)
 Degree Days
 Variance
 from Normal
 Heating      (39.8%)    2.2%       n/a         (24.7%)    0.2%       n/a
 Degree Days
 Cooling      (1.4%)     16.9%      n/a         2.6%       22.0%      n/a
 Degree Days
 (1)  Third quarter 2012 and year-to-date 2012 include 318 GWH of sales
 associated with the FERC mitigation contracts, for which the financial results
 are excluded from the U.S. Franchised Electric & Gas segment earnings. 

 

Progress Energy Carolinas
Quarterly Highlights
Supplemental Franchised Electric Information
September 2012
              Three Months Ended                Nine Months Ended
              September 30,                     September 30,
                                    %                                 %
              2012       2011       Inc.(Dec.)  2012       2011       Inc.(Dec.)
GWH Sales 
 Residential  4,936      5,134      (3.9%)      12,915     14,480     (10.8%)
 General      4,413      4,362      1.2%        11,565     11,787     (1.9%)
 Service
 Industrial   2,772      2,870      (3.4%)      7,884      8,040      (1.9%)
 Other
 Energy       30         30         0.0%        91         93         (2.2%)
 Sales
     Total
 Regular      12,151     12,396     (2.0%)      32,455     34,400     (5.7%)
 Sales
 Billed
 Special      4,875      3,662      33.1%       11,139     9,840      13.2%
 Sales (a)
       Total
 Electric     17,026     16,058     6.0%        43,594     44,240     (1.5%)
 Sales
 Unbilled     (272)      (30)       100.0%      (207)      (626)      (66.9%)
 Sales
   Total
 Electric
 Sales -      16,754     16,028     4.5%        43,387     43,614     (0.5%)
 Progress
 Energy
 Carolinas
Average
Number of
Customers
 Residential  1,232,560  1,222,135  0.9%        1,229,980  1,220,818  0.8%
 General      220,125    217,876    1.0%        219,251    217,079    1.0%
 Service
 Industrial   4,412      4,479      (1.5%)      4,434      4,491      (1.3%)
 Other
 Energy       1,816      1,923      (5.6%)      1,844      1,967      (6.3%)
 Sales
   Total
 Regular      1,458,913  1,446,413  0.9%        1,455,509  1,444,355  0.8%
 Sales
 Special      18         18         0.0%        19         18         5.6%
 Sales
 Total
 Average
 Number of
 Customers -  1,458,931  1,446,431  0.9%        1,455,528  1,444,373  0.8%
 Progress
 Energy
 Carolinas
Heating and
Cooling
Degree Days
 Actual
 Heating      8          14         (42.9%)     1,392      1,840      (24.3%)
 Degree Days
 Cooling      1,185      1,310      (9.5%)      1,827      2,073      (11.9%)
 Degree Days
 Variance
 from Normal
 Heating      (11.1%)    27.3%      n/a         (27.7%)    (4.6%)     n/a
 Degree Days
 Cooling      2.9%       16.7%      n/a         4.3%       21.7%      n/a
 Degree Days
 (a)  Third quarter 2012 and year-to-date 2012 include 577 GWH of sales
 associated with the FERC mitigation contracts, for which the financial results
 are excluded from the U.S. Franchised Electric & Gas segment earnings. 

 

Progress Energy Florida
Quarterly Highlights
Supplemental Franchised Electric Information
September 2012
              Three Months Ended                Nine Months Ended
              September 30,                     September 30,
                                    %                                 %
              2012       2011       Inc.(Dec.)  2012       2011       Inc.(Dec.)
GWH Sales 
 Residential  5,712      6,181      (7.6%)      13,942     15,144     (7.9%)
 General      4,205      4,322      (2.7%)      11,284     11,437     (1.3%)
 Service
 Industrial   819        838        (2.2%)      2,384      2,459      (3.1%)
 Other
 Energy       6          6          3.6%        19         18         5.6%
 Sales
     Total
 Regular      10,742     11,347     (5.3%)      27,629     29,058     (4.9%)
 Sales
 Billed
 Special      621        906        (31.5%)     1,390      2,231      (37.7%)
 Sales
       Total
 Electric     11,363     12,253     (7.3%)      29,019     31,289     (7.3%)
 Sales
 Unbilled     103        (253)      (100.0%)    795        17         100.0%
 Sales
   Total
 Consolidated
 Electric
 Sales -      11,466     12,000     (4.4%)      29,814     31,306     (4.8%)
 Progress
 Energy
 Florida
Average
Number of
Customers
 Residential  1,464,992  1,452,032  0.9%        1,463,126  1,452,002  0.8%
 General      187,846    186,135    0.9%        187,171    185,695    0.8%
 Service
 Industrial   2,358      2,395      (1.5%)      2,373      2,421      (2.0%)
 Other
 Energy       1,571      1,564      0.4%        1,556      1,579      (1.5%)
 Sales
   Total
 Regular      1,656,767  1,642,126  0.9%        1,654,226  1,641,697  0.8%
 Sales
 Special      15         15         0.0%        14         15         (6.7%)
 Sales
 Total
 Average
 Number of
 Customers -  1,656,782  1,642,141  0.9%        1,654,240  1,641,712  0.8%
 Progress
 Energy
 Florida
Heating and
Cooling
Degree Days
 Actual
 Heating      -          -          n/a         211        305        (30.8%)
 Degree Days
 Cooling      1,392      1,468      (5.2%)      2,691      2,778      (3.1%)
 Degree Days
 Variance
 from Normal
 Heating      -          -          n/a         (29.5%)    1.9%       n/a
 Degree Days
 Cooling      -0.5%      4.9%       n/a         5.2%       8.6%       n/a
 Degree Days

 

Duke Energy Ohio
Quarterly Highlights
Supplemental Franchised Electric Information
September 2012
                    Three Months Ended            Nine Months Ended
                    September 30,                 September 30, 
                                      %                             %
                    2012     2011     Inc.(Dec.)  2012     2011     Inc.(Dec.)
GWH Sales 
 Residential        2,731    2,708    0.8%        6,770    7,101    (4.7%)
 General Service    2,690    2,743    (1.9%)      7,188    7,440    (3.4%)
 Industrial         1,512    1,529    (1.1%)      4,340    4,369    (0.7%)
 Other Energy       28       23       21.7%       85       80       6.3%
 Sales
     Total Regular
 Electric Sales     6,961    7,003    (0.6%)      18,383   18,990   (3.2%)
 Billed
 Special Sales      89       107      (16.8%)     236      502      (53.0%)
       Total
 Electric Sales     7,050    7,110    (0.8%)      18,619   19,492   (4.5%)
 Billed - Duke
 Energy Ohio
 Unbilled Sales     (246)    (54)     (355.6%)    (19)     (177)    89.3%
   Total Electric
 Sales - Duke       6,804    7,056    (3.6%)      18,600   19,315   (3.7%)
 Energy Ohio
Average Number of
Customers
 Residential        731,917  727,812  0.6%        733,840  730,332  0.5%
 General Service    85,499   84,856   0.8%        85,582   85,081   0.6%
 Industrial         2,574    2,596    (0.8%)      2,585    2,604    (0.7%)
 Other Energy       2,903    2,854    1.7%        2,892    2,845    1.7%
   Total Regular    822,893  818,118  0.6%        824,899  820,862  0.5%
 Sales
 Special Sales      1        1        0.0%        2        1        100.0%
 Total Average
 Number Electric    822,894  818,119  0.6%        824,901  820,863  0.5%
 Customers - Duke
 Energy Ohio
Heating and
Cooling Degree
Days
 Actual
 Heating Degree     19       19       0.0%        1,718    2,345    (26.7%)
 Days
 Cooling Degree     917      917      0.0%        1,384    1,289    7.4%
 Days
 Variance from
 Normal
 Heating Degree     58.3%    18.8%    n/a         (26.0%)  3.4%     n/a
 Days
 Cooling Degree     16.1%    22.4%    n/a         23.1%    20.9%    n/a
 Days
    Note: Includes data for Duke Energy Ohio and Duke
 Energy Kentucky

 

Duke Energy Indiana
Quarterly Highlights
Supplemental Franchised Electric Information
September 2012
                    Three Months Ended            Nine Months Ended
                    September 30,                 September 30, 
                                      %                             %
                    2012     2011     Inc.(Dec.)  2012     2011     Inc.(Dec.)
GWH Sales 
 Residential        2,629    2,588    1.6%        6,939    7,402    (6.3%)
 General Service    2,389    2,372    0.7%        6,383    6,414    (0.5%)
 Industrial         2,688    2,674    0.5%        7,872    7,682    2.5%
 Other Energy       13       13       0.0%        40       40       0.0%
 Sales
     Total Regular
 Electric Sales     7,719    7,647    0.9%        21,234   21,538   (1.4%)
 Billed
 Special Sales      1,439    1,472    (2.2%)      4,455    4,243    5.0%
       Total
 Electric Sales     9,158    9,119    0.4%        25,689   25,781   (0.4%)
 Billed - Duke
 Energy Indiana
 Unbilled Sales     (235)    (48)     (389.6%)    (5)      (280)    98.2%
   Total Electric
 Sales - Duke       8,923    9,071    (1.6%)      25,684   25,501   0.7%
 Energy Indiana
Average Number of
Customers
 Residential        681,127  676,220  0.7%        682,547  678,358  0.6%
 General Service    100,208  100,076  0.1%        100,102  99,722   0.4%
 Industrial         2,754    2,773    (0.7%)      2,737    2,758    (0.8%)
 Other Energy       1,436    1,407    2.1%        1,430    1,395    2.5%
   Total Regular    785,525  780,476  0.6%        786,816  782,233  0.6%
 Sales
 Special Sales      10       11       (9.1%)      11       11       0.0%
 Total Avg Number
 Electric           785,535  780,487  0.6%        786,827  782,244  0.6%
 Customers - Duke
 Energy Indiana
Heating and
Cooling Degree
Days
 Actual
 Heating Degree     24       16       50.0%       1,816    2,544    (28.6%)
 Days
 Cooling Degree     958      992      (3.4%)      1,478    1,372    7.7%
 Days
 Variance from
 Normal
 Heating Degree     100.0%   6.7%     n/a         (27.9%)  3.3%     n/a
 Days
 Cooling Degree     24.1%    35.7%    n/a         33.0%    30.4%    n/a
 Days

 

DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended September 30, 2011
(Dollars in millions, except per-share amounts)
                          Special Items 
                           Costs to                     Emission       Economic Hedges
                 Adjusted  Achieve,     Edwardsport     Allowances     (Mark-to-Market)     Discontinued     Total        Reported
                 Earnings  Progress     Impairment      Impairment     *                    Operations       Adjustments  Earnings
                           Merger
SEGMENT INCOME
U.S. Franchised  $         $            $               $              $                    $                $            $      
Electric and        472                   (135)      C           -        -                        -         (135)           337
Gas                          -
Commercial       74        -            -               (51)        E  1                 B  -                (50)         24
Power
International    115                    -               -              -                    -                -            115
Energy
    Total
Reportable       661       -            (135)           (51)           1                    -                (185)        476
Segment Income
Other            5         (10)      A                  -              -                    -                (10)         (5)
    Total
Reportable
Segment Income   666       (10)         (135)           (51)           1                    -                (195)        471
and Other Net
Expense
   
Discontinued     -                                                                          1             D  1            1
Operations
Net Income
(Loss)           $         $            $               $              $                    $                $            $      
Attributable to     666                   (135)               (51)         1                        1        (194)           472
Duke Energy                (10)
Corporation
EPS
ATTRIBUTABLE TO  $         $            $               $              $                    $                $            $      
DUKE ENERGY        1.50                  (0.30)            (0.12)         -                        -          (0.44)        1.06
CORPORATION,               (0.02)
BASIC
EPS
ATTRIBUTABLE TO  $         $            $               $              $                    $                $            $      
DUKE ENERGY        1.50                  (0.30)            (0.12)         -                        -          (0.44)        1.06
CORPORATION,               (0.02)
DILUTED
A - Net of $3 million tax benefit. Recorded in Operation, maintenance and other (Operating Expenses) on the Condensed Consolidated
Statements of Operations. 
B - Net of insignificant tax expense. $2 million gain recorded within Non-regulated electric, natural gas, and other (Operating
Revenues) and $1 million loss recorded within Fuel used in electric generation and purchased power-non-regulated (Operating
Expenses) on the Condensed Consolidated Statements of Operations.
C - Net of $87 million tax benefit. Recorded in Impairment charges within Operating Expenses on the Condensed Consolidated
Statements of Operations.
D - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
E - Net of $28 million tax benefit. Recorded in Impairment charges within Operating Expenses on the Condensed Consolidated
Statements of Operations.
Weighted Average Shares (reported and adjusted) - in millions
 Basic    444
 Diluted  444
* Represents the mark-to-market impact of derivative contracts in the non-native portfolio, which is recognized in earnings
immediately as such derivative contracts do not qualify for hedge or regulatory accounting, used in Duke Energy's hedging of a
portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets
is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and,
as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation
assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that
excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better
matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset.
Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful
information to investors, as it provides them an additional relevant comparison of Duke Energy Corporation's performance across
periods.

 

DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Nine Months Ended September 30, 2011
(Dollars in millions, except per-share amounts)
                           Special Items
                           Costs to                     Emission       Economic Hedges
                 Adjusted  Achieve,     Edwardsport     Allowances     (Mark-to-Market)     Discontinued     Total        Reported
                 Earnings  Progress     Impairment      Impairment     *                    Operations       Adjustments  Earnings
                           Merger
SEGMENT INCOME 
U.S. Franchised  $         $            $               $              $                    $                $            $      
Electric and     1,110            -       (135)      C           -        -                         -           (135)        975
Gas
Commercial       156       -            -               (51)        E  (2)               B  -                (53)         103
Power
International    370                    -               -              -                    -                -            370
Energy
    Total
Reportable       1,636     -            (135)           (51)           (2)                  -                (188)        1,448
Segment Income
Other            (8)       (23)      A                  -              -                    -                (23)         (31)
    Total
Reportable
Segment Income   1,628     (23)         (135)           (51)           (2)                  -                (211)        1,417
and Other Net
Expense
   
Discontinued     -                                                                          1             D  1            1
Operations
Net Income
(Loss)           $         $            $               $              $                    $                $            $      
Attributable to  1,628         (23)       (135)               (51)       (2)                         1          (210)     1,418
Duke Energy
Corporation
EPS
ATTRIBUTABLE TO  $         $            $               $              $                    $                $            $      
DUKE ENERGY         3.67    (0.05)       (0.30)            (0.12)       (0.01)                      -          (0.48)       3.19
CORPORATION,
BASIC
EPS
ATTRIBUTABLE TO  $         $            $               $              $                    $                $            $      
DUKE ENERGY         3.67    (0.05)       (0.30)            (0.12)       (0.01)                      -          (0.48)       3.19
CORPORATION,
DILUTED
A - Net of $6 million tax benefit. Recorded in Operation, maintenance and other (Operating Expenses) on the Condensed Consolidated
Statements of Operations. 
B - Net of $1 million tax benefit. Recorded within Fuel used in electric generation and purchased power-non-regulated (Operating
Expenses) on the Condensed Consolidated Statements of Operations.
C - Net of $87 million tax benefit. Recorded in Impairment charges within Operating Expenses on the Condensed Consolidated
Statements of Operations.
D - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
E - Net of $28 million tax benefit. Recorded in Impairment charges within Operating Expenses on the Condensed Consolidated
Statements of Operations.
Weighted Average Shares (reported and adjusted) -
in millions
 Basic    444
 Diluted  444
* Represents the mark-to-market impact of derivative contracts, which is recognized in earnings immediately as such derivative
contracts do not qualify for hedge or regulatory accounting, used in Duke Energy Corporation's hedging of a portion of the
economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to
fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, gas, power) and, as
such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation
assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that
excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better
matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset.
Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful
information to investors, as it provides them an additional relevant comparison of Duke Energy Corporation's performance across
periods.

 

DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended September 30, 2012
(Dollars in millions, except per-share amounts)
                           Special Items 
                           Costs to     DNC Host                    Economic Hedges
                 Adjusted  Achieve,     Committee     Edwardsport   (Mark-to-Market)     Discontinued     Total        Reported
                 Earnings  Progress     Support       Impairment    *                    Operations       Adjustments  Earnings
                           Merger
SEGMENT INCOME 
U.S. Franchised  $         $            $             $             $                    $                $            $      
Electric and         907                               (117)      E   -                           -         (117)         790
Gas                             -        -
Commercial       31        -            -             -             (19)              B  -                (19)         12
Power
International    103       -            -             -             -                    -                -            103
Energy
    Total
Reportable       1,041     -            -             (117)         (19)                 -                (136)        905
Segment Income
Other            (16)      (293)     A  (6)        D                -                    -                (299)        (315)
    Total
Reportable       $         $            $             $             $                    $                $          
Segment Income   1,025                                 (117)        (19)                          -         (435)      590
and Other Net              (293)         (6)
Expense
   
Discontinued     -                                                                       4             C  4            4
Operations
Net Income
(Loss)           $         $            $             $             $                    $                $            $      
Attributable to  1,025                                 (117)        (19)                         4          (431)         594
Duke Energy                (293)         (6)
Corporation
EPS
ATTRIBUTABLE TO  $         $            $             $             $                    $                $            $      
DUKE ENERGY         1.47                 (0.01)       (0.17)        (0.03)                  0.01           (0.62)        0.85
CORPORATION,                (0.42)
BASIC
EPS
ATTRIBUTABLE TO  $         $            $             $             $                    $                $            $      
DUKE ENERGY         1.47                 (0.01)       (0.17)        (0.03)                  0.01           (0.62)        0.85
CORPORATION,                (0.42)
DILUTED
A - Net of $164 million tax benefit. $366 million recorded in Operation, maintenance and other, $86 million recorded in
Impairment charges (all Operating Expenses) and $5 million recorded in Interest Expense on the Condensed Consolidated Statements
of Operations.
B - Net of $12 million tax benefit. $30 million loss recorded within Non-regulated electric, natural gas, and other (Operating
Revenues) and $1 million loss recorded within Fuel used in electric generation and purchased power-non-regulated (Operating
Expenses) on the Condensed Consolidated Statements of Operations.
C - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of
Operations.
D - Net of $4 million tax benefit. Recorded within Operation, maintenance and other (Operating Expenses) on the Condensed
Consolidated Statements of Operations.
E - Net of $63 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statements
of Operations.
Weighted Average Shares (reported and adjusted) -
in millions
 Basic    699
 Diluted  699
* Represents the mark-to-market impact of derivative contracts, which is recognized in earnings immediately as such derivative
contracts do not qualify for hedge or regulatory accounting, used in Duke Energy Corporation's hedging of a portion of the
economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject
to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, gas, power) and, as
such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation
assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that
excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better
matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset.
Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful
information to investors, as it provides them an additional relevant comparison of Duke Energy Corporation's performance across
periods.

 

DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Nine Months Ended September 30, 2012
(Dollars in millions, except per-share amounts)
                           Special Items 
                           Costs to     Voluntary                     DNC Host      Economic Hedges
                 Adjusted  Achieve,     Opportunity     Edwardsport   Committee     (Mark-to-Market)     Discontinued     Total        Reported
                 Earnings  Progress     Plan            Impairment    Support       *                    Operations       Adjustments  Earnings
                           Merger       Deferral
SEGMENT INCOME
U.S. Franchised  $         $            $               $             $             $                    $                $            $      
Electric and                                   60    C    (385)     E        -           -                         -        (325)         
Gas              1,588           -                                                                                                      1,263
Commercial       93        -            -               -             -             (22)              B  -                (22)         71
Power
International    350       -            -               -             -             -                    -                -            350
Energy
    Total
Reportable       2,031     -            60              (385)         -             (22)                 -                (347)        1,684
Segment Income
Other            (44)      (306)     A  -               -             (6)        F  -                    -                (312)        (356)
    Total
Reportable
Segment Income   1,987     (306)        60              (385)         (6)           (22)                 -                (659)        1,328
and Other Net
Expense
Discontinued     -         -            -               -             -             -                    5             D  5            5
Operations
Net Income
(Loss)           $         $            $               $             $             $                    $                $            $      
Attributable to                                60         (385)                     (22)                          5         (654)         
Duke Energy      1,987      (306)                                      (6)                                                              1,333
Corporation
EPS
ATTRIBUTABLE TO  $         $            $               $             $             $                    $                $            $      
DUKE ENERGY                                 0.11         (0.72)        (0.01)        (0.04)                  0.01          (1.23)           
CORPORATION,     3.74      (0.58)                                                                                                       2.51
BASIC
EPS
ATTRIBUTABLE TO  $         $            $               $             $             $                    $                $            $      
DUKE ENERGY                                 0.11         (0.72)        (0.01)        (0.04)                  0.01          (1.23)           
CORPORATION,     3.74      (0.58)                                                                                                       2.51
DILUTED
A - Net of $166 million tax benefit. $381 million recorded in Operation, maintenance and other, $86 million recorded in Impairment charges (all
Operating Expenses) and $5 million recorded in Interest Expense on the Condensed Consolidated Statements of Operations.
B - Net of $13 million tax benefit. $33 million loss recorded within Non-regulated electric, natural gas, and other (Operating Revenues) and $2
million loss recorded within Fuel used in electric generation and purchased power-non-regulated (Operating Expenses) on the Condensed
Consolidated Statements of Operations.
C - Net of $39 million tax expense. $101 million revenue recorded in Operation, maintenance and other and $2 million expense recorded in
Depreciation and amortization (all Operating Expenses) on the Condensed Consolidated Statements of Operations.
D - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
E - Net of $215 million tax benefit. $580 million recorded in Impairment charges and $20 million recorded within Operation, maintenance and
other (all Operating Expenses) on the Condensed Consolidated Statements of Operations.
F - Net of $4 million tax benefit. Recorded within Operation, maintenance and other (Operating Expenses) on the Condensed Consolidated
Statements of Operations.
Weighted Average Shares (reported and adjusted) -
in millions
 Basic    531
 Diluted  531
* Represents the mark-to-market impact of derivative contracts, which is recognized in earnings immediately as such derivative contracts do not
qualify for hedge or regulatory accounting, used in Duke Energy Corporation's hedging of a portion of the economic value of its generation assets
in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price
volatility of the input and output commodities (e.g. coal, gas, power) and, as such, the economic hedging involves both purchases and sales of
those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the
accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings
until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged
asset. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to
investors, as it provides them an additional relevant comparison of Duke Energy Corporation's performance across periods.

 

Duke Energy Corporation
Operations and Maintenance Expense
For the Three and Nine Months Ended September 30, 2012 and 2011
(In millions)
                         Three Months Ended            Nine Months Ended
                         September      September      September    September
                         30, 2012       30, 2011       30, 2012     30, 2011
Operation,
maintenance and other    $1,654         $866           $3,262       $2,705
(a)
Adjustments:
 Costs to Achieve,       (366)          (13)           (381)        (29)
 Progress Merger (b)
 Voluntary
 Opportunity Plan        -              -              101          -
 Deferral (b)
 Edwardsport Legal       -              -              (20)         -
 Fees (b)(c)
 DNC Host Committee      (10)           -              (10)         -
 Support (b)
 Reagents Recoverable    (17)           (15)           (44)         (39)
 (d)
 Energy Efficiency       (66)           (25)           (129)        (64)
 Recoverables (d)
 Other Deferrals and     (19)           (7)            (36)         (40)
 Recoverables (d)
 RTO Costs (d)           (2)            (10)           (6)          (31)
Adjusted Operation,
maintenance and          $1,174         $796           $2,737       $2,502
other 
 (a) As reported in the Condensed Consolidated Statements of Operations
 (b) Presented as a special item for purposes of calculating adjusted diluted
 earnings per share
 (c) Recorded in the first quarter of 2012 as part of the Edwardsport
 Impairment resulting from the settlement agreement with the Indiana Office of
 Consumer Counselor, the Duke Energy Industrial Group, and Nucor Steel -
 Indiana
 (d) Primarily represents expenses to be deferred or recovered through rate
 riders 
 Note: Includes Progress Energy expenses beginning July 2, 2012.

 

 

 MEDIA CONTACT: Tom Shiel
 Phone:         704-382-2355
 24-Hour:       800-559-3853
 ANALYSTS:
 Bob Drennan    704-382-4070

 Bill Currens   704-382-1603

SOURCE Duke Energy

Website: http://www.duke-energy.com
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