Duke Energy CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K EARNINGS RELEASE - Duke Energy CORP	er-20180630earningsrelease.htm



News Release

Media Contact: Catherine Butler

24-Hour: 800.559.3853

Analysts: Mike Callahan

Office: 704.382.0459

Aug. 2, 2018

Duke Energy reports second quarter 2018 financial results


▪	Second quarter 2018 GAAP EPS of $0.71; adjusted EPS of $0.93


▪	Company delivering on commitments as it executes on long-term strategy


▪	Company reaffirms 2018 adjusted EPS guidance range of $4.55 to $4.85

CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced second quarter 2018 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP) of $0.71, compared to $0.98 for the second quarter of 2017. Duke Energy's second quarter 2018 adjusted diluted EPS was $0.93, compared to $1.01 for the second quarter of 2017. The company remains on track to achieve its earnings targets for the year.

Adjusted diluted EPS excludes the impact of certain items that are included in GAAP reported diluted EPS. The difference between second quarter 2018 GAAP reported diluted EPS and adjusted diluted EPS was primarily due to charges related to the Duke Energy Carolinas (DEC) North Carolina rate case order.

Adjusted diluted EPS for second quarter 2018 was lower than the prior year primarily due to a lower tax shield on holding company interest as a result of the Tax Cuts and Jobs Act of 2017 (Tax Act), higher depreciation from a growing asset base, and higher operation and maintenance expense (O&M) including storm costs; partially offset by warmer weather and contributions from the Duke Energy Progress (DEP) North Carolina rate case.

“Our second quarter results reinforce confidence as we deliver on our long-term strategy, creating value for customers and growth for investors,” said Lynn Good, Duke Energy chairman, president and CEO. “We have executed on our plan during the first half of the year - reaching constructive regulatory outcomes in the Carolinas, addressing tax reform impacts in our largest jurisdictions and making progress on key infrastructure investments like the Atlantic Coast Pipeline. We have the right strategy and are on track to achieve our full-year guidance for 2018.”

Business segment results

In addition to the following summary of second quarter 2018 business segment performance, comprehensive tables with detailed EPS drivers for the second quarter compared to prior year are provided in the tables at the end of this news release.

Duke Energy News Release 2

The discussion below of second quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables at the end of this news release present a full reconciliation of GAAP reported results to adjusted results.

Electric Utilities and Infrastructure

On a reported basis, Electric Utilities and Infrastructure recognized second quarter 2018 segment income of $575 million, compared to $729 million in the second quarter of 2017. In addition to the drivers outlined below, second quarter 2018 results were impacted by $136 million in after-tax charges primarily related to the DEC North Carolina rate case order. This amount was treated as a special item and excluded from adjusted earnings.

On an adjusted basis, Electric Utilities and Infrastructure recognized second quarter 2018 adjusted segment income of $711 million, compared to $729 million in the second quarter of 2017, a decrease of $0.03 per share.

Lower quarterly results at Electric Utilities and Infrastructure were driven by higher depreciation and amortization expense (-$0.07 per share) primarily due to a growing asset base, higher O&M expense (-$0.03 per share) including storm restoration costs, the resolution of FERC accounting matters (-$0.02 per share), and lower AFUDC equity (-$0.02 per share). These unfavorable drivers were partially offset by warmer weather (+$0.07 per share), higher rider revenues (+$0.04 per share) and the DEP rate case contribution (+$0.02 per share).

Gas Utilities and Infrastructure

On a reported and adjusted basis, Gas Utilities and Infrastructure recognized second quarter 2018 segment income of $28 million, compared to $27 million in the second quarter of 2017. As expected, results at Gas Utilities and Infrastructure were flat for the quarter, with the bulk of the remaining earnings expected to come in the fourth quarter.

Commercial Renewables

On a reported and adjusted basis, Commercial Renewables recognized second quarter 2018 segment income of $38 million, compared to $26 million in the second quarter of 2017, an increase of $0.02 per share. Higher quarterly results at Commercial Renewables were primarily due to a favorable settlement on a contractual agreement.

Other

Other primarily includes interest expense on holding company debt, other unallocated corporate costs and results from Duke Energy’s captive insurance company.

On a reported basis, Other recognized a second quarter 2018 net loss of $136 million, compared to a net loss of $94 million in the second quarter of 2017. In addition to the drivers outlined below, second quarter 2018 results were impacted by costs to achieve the Piedmont merger. These costs were treated as special items and excluded from adjusted earnings.

On an adjusted basis, Other recognized a second quarter 2018 adjusted net loss of $121 million, compared to an adjusted net loss of $75 million in the second quarter of 2017, a difference of $0.07 per share. Lower quarterly results at Other were primarily due to a lower

Duke Energy News Release 3

tax shield on holding company interest as a result of the Tax Act (-$0.04 per share) and higher interest expense (-$0.02 per share).

Duke Energy's consolidated reported effective tax rate for the second quarter of 2018 was 16.5% compared to 32.1% in the second quarter of 2017. The consolidated adjusted effective tax rate for second quarter 2018 was 18.4%, compared to 32.3% in 2017. The decreases in the reported and adjusted effective tax rates were primarily due to the impacts of the Tax Act. Adjusted effective tax rate is a non-GAAP financial measure. The tables at the end of this news release present a reconciliation of the reported effective tax rate to the adjusted effective tax rate.

Earnings conference call for analysts

An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss the second quarter 2018 financial results and other business and financial updates. The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors section (www.duke-energy.com/investors) of Duke Energy’s website or by dialing 888-778-8913 in the United States or 719-325-4773 outside the United States. The confirmation code is 5013212. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, August 12, 2018, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 5013212. An audio replay and transcript will also be available by accessing the investors section of the company’s website.

Special Items and Non-GAAP Reconciliation

The following tables present a reconciliation of GAAP reported to adjusted diluted EPS for second quarter 2018 and 2017 financial results:



(In millions, except per-share amounts)	After-Tax Amount		2Q 2018 EPS		2Q 2017 EPS
Diluted EPS, as reported			$	0.71	$	0.98
Adjustments to reported EPS:
Second Quarter 2018
Costs to Achieve Piedmont merger	$	15	0.02
Regulatory and Legislative Impacts	136		0.19
Discontinued Operations	5		0.01
Second Quarter 2017
Costs to Achieve Piedmont merger	19				0.03
Discontinued Operations	2
Total adjustments			$	0.22	$	0.03
Diluted EPS, adjusted			$	0.93	$	1.01

Duke Energy News Release 4

Non-GAAP financial measures

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted diluted EPS, and adjusted effective tax rate. Adjusted earnings and adjusted diluted EPS represent income from continuing operations attributable to Duke Energy, adjusted for the dollar and per-share impact of special items. The adjusted effective tax rate is calculated using pretax earnings and income tax expense, both as adjusted for the impact of special items. As discussed below, special items include certain charges and credits which management believes are not indicative of Duke Energy's ongoing performance.

Management believes the presentation of adjusted earnings, adjusted diluted EPS, and the adjusted effective tax rate provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings, adjusted diluted EPS and adjusted effective tax rate are Net Income Attributable to Duke Energy Corporation (GAAP reported earnings) and Diluted EPS Attributable to Duke Energy Corporation common stockholders (GAAP reported EPS), and the reported effective tax rate, respectively.

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


•	Costs to achieve Piedmont merger represent charges that result from the Piedmont acquisition.


•	Regulatory and Legislative Impacts represent charges related to rate case orders, settlements or other actions of regulators or legislative bodies.


•	Sale of Retired Plant represents the loss associated with selling Beckjord Generating Station (Beckjord), a non-regulated generating facility in Ohio.


•	Impairment of Equity Method Investment represents an other-than-temporary impairment of an investment in Constitution Pipeline Company, LLC (Constitution).


•	Impacts of the Tax Act represents an Alternative Minimum Tax (AMT) valuation allowance recognized related to the Tax Act.

Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders or asset impairments).

Management evaluates segment performance based on segment income and other net loss. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment

Duke Energy News Release 5

income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net loss is segment income and other net loss.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net loss 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 all special items, as discussed above.

Duke Energy’s adjusted earnings, adjusted diluted EPS and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner.

Duke Energy

Headquartered in Charlotte, N.C., Duke Energy (NYSE: DUK) is one of the largest energy holding companies in the U.S., with approximately 29,000 employees and a generating capacity of 49,500 megawatts. The company is transforming its customers’ experience, modernizing its energy grid, generating cleaner energy and expanding its natural gas infrastructure to create a smarter energy future for the people and communities it serves.

The company’s Electric Utilities and Infrastructure unit serves approximately 7.6 million retail electric customers in six states - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. Its Gas Utilities and Infrastructure unit distributes natural gas to approximately 1.6 million customers in five states - North Carolina, South Carolina, Tennessee, Ohio and Kentucky. Its Commercial Renewables unit operates a growing renewable energy portfolio across the U.S.

A Fortune 125 company, Duke Energy was named to Fortune’s 2018 “World’s Most Admired Companies” list and Forbes’ 2018 “America’s Best Employers” list.

More information about the company is available at duke-energy.com. The Duke Energy News Center includes news releases, fact sheets, photos, videos and other materials. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Duke Energy News Release 6

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:


•	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 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 Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;


•	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 and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts 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 and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, 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;


•	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. electric grid or generating resources;


•	The ability to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;


•	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 attack, cybersecurity threats, data security breaches and 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;

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•	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 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;

•

Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, 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 customers in a timely manner, or at all;


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


•	The ability to control operation and maintenance costs;


•	The level of creditworthiness of counterparties to transactions;


•	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;


•	The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;


•	The impact of new U.S. 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; and


•	The ability to implement our business strategy.

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 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 described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended June 30, 2018

(Dollars in millions, except per-share amounts)



				Special Items
	Reported Earnings			Costs to Achieve Piedmont Merger			Regulatory and Legislative Impacts			Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	575		$	—		$	136	B	$	—		$	136	$	711
Gas Utilities and Infrastructure	28			—			—			—			—		28
Commercial Renewables	38			—			—			—			—		38
Total Reportable Segment Income	641			—			136			—			136		777
Other	(136		)	15		A	—			—			15		(121		)
Discontinued Operations	(5		)	—			—			5		C	5		—
Net Income Attributable to Duke Energy Corporation	$	500		$	15		$	136		$	5		$	156	$	656
EPS ATTRIBUTABLE TO DUKE ENERGY CORP, DILUTED	$	0.71		$	0.02		$	0.19		$	0.01		$	0.22	$	0.93

A - Net of $5 million tax benefit. $20 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B - Net of $43 million tax benefit at Duke Energy Carolinas. $175 million recorded within Impairment charges and $4 million recorded within Operations, maintenance and other on the Duke Energy Carolinas Condensed Consolidated Statements of Operations.

C - Recorded in Loss from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) - 704 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2018

(Dollars in millions, except per-share amounts)



				Special Items
	Reported Earnings			Costs to Achieve Piedmont Merger			Regulatory and Legislative Impacts			Sale of Retired Plant			Impairment of Equity Method Investment			Impacts of the Tax Act			Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	1,325		$	—		$	202	B	$	—		$	—		$	—		$	—		$	202	$	1,527
Gas Utilities and Infrastructure	144			—			—			—			42		D	—			—			42		186
Commercial Renewables	58			—			—			—			—			—			—			—		58
Total Reportable Segment Income	1,527			—			202			—			42			—			—			244		1,771
Other	(402		)	28		A	—			82		C	—			76		E	—			186		(216		)
Discontinued Operations	(5		)	—			—			—			—			—			5		F	5		—
Net Income Attributable to Duke Energy Corporation	$	1,120		$	28		$	202		$	82		$	42		$	76		$	5		$	435	$	1,555
EPS ATTRIBUTABLE TO DUKE ENERGY CORP, DILUTED	$	1.59		$	0.04		$	0.29		$	0.12		$	0.06		$	0.11		$	0.01		$	0.63	$	2.22

A - Net of $9 million tax benefit. $37 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B - Net of $16 million tax benefit at Duke Energy Progress and $47 million tax benefit at Duke Energy Carolinas.

•On the Duke Energy Progress Condensed Consolidated Statements of Operations, $32 million is recorded within Impairment charges, $31 million within Operations, maintenance and other, $6 million within Interest Expense and $(1) million within Depreciation and amortization.

•On the Duke Energy Carolinas Condensed Consolidated Statements of Operations, $188 million is recorded within Impairment charges, $8 million within Operations, maintenance and other, and $1 million within Depreciation and amortization.

C - Net of $25 million tax benefit. $107 million recorded within Gains (Losses) on Sales of Other Assets and Other, net on the Condensed Consolidated Statements of Operations.

D - Net of $13 million tax benefit. $55 million included within Other Income and Expenses on the Condensed Consolidated Statements of Operations.

E - $76 million AMT valuation allowance within Income Tax Expense from Continuing Operations on the Condensed Consolidated Statements of Operations.

F - Recorded in Loss from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) - 702 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended June 30, 2017

(Dollars in millions, except per-share amounts)



				Special Item
	Reported Earnings			Costs to Achieve Piedmont Merger			Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	729		$	—		$	—		$	—	$	729
Gas Utilities and Infrastructure	27			—			—			—		27
Commercial Renewables	26			—			—			—		26
Total Reportable Segment Income	782			—			—			—		782
Other	(94		)	19		A	—			19		(75		)
Discontinued Operations	(2		)	—			2		B	2		—
Net Income Attributable to Duke Energy Corporation	$	686		$	19		$	2		$	21	$	707
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.98		$	0.03		$	—		$	0.03	$	1.01

A - Net of $11 million tax benefit. $30 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.

B - Recorded in Loss from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) - 700 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Six Months Ended June 30, 2017

(Dollars in millions, except per-share amounts)



				Special Item
	Reported Earnings			Costs to Achieve Piedmont Merger			Discontinued Operations			Total Adjustments		Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	1,364		$	—		$	—		$	—	$	1,364
Gas Utilities and Infrastructure	160			—			—			—		160
Commercial Renewables	51			—			—			—		51
Total Reportable Segment Income	1,575			—			—			—		1,575
Other	(171		)	29		A	—			29		(142		)
Discontinued Operations	(2		)	—			2		B	2		—
Net Income Attributable to Duke Energy Corporation	$	1,402		$	29		$	2		$	31	$	1,433
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	2.00		$	0.05		$	—		$	0.05	$	2.05

A - Net of $17 million tax benefit. $45 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.

B - Recorded in Loss from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) - 700 million

DUKE ENERGY CORPORATION

ADJUSTED EFFECTIVE TAX RECONCILIATION

June 2018

(Dollars in millions)



	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	Balance			Effective Tax Rate			Balance			Effective Tax Rate

Reported Income From Continuing Operations Before Income Taxes	$	607					$	1,410
Costs to Achieve Piedmont Merger	20						37
Regulatory and Legislative Impacts	179						265
Sale of Retired Plant	—						107
Impairment of Equity Method Investment	—						55
Noncontrolling Interests	(2		)				(4		)
Adjusted Pretax Income	$	804					$	1,870

Reported Income Tax Expense From Continuing Operations	$	100		16.5	%		$	281		19.9	%
Costs to Achieve Piedmont Merger	5						9
Regulatory and Legislative Impacts	43						63
Sale of Retired Plant	—						25
Impairment of Equity Method Investment	—						13
Impacts of the Tax Act	—						(76		)
Adjusted Tax Expense	$	148		18.4	%	*	$	315		16.8	%	*



	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	Balance			Effective Tax Rate			Balance			Effective Tax Rate

Reported Income From Continuing Operations Before Income Taxes	$	1,018					$	2,079
Costs to Achieve Piedmont Merger	30						46
Noncontrolling Interests	(3		)				(4		)
Adjusted Pretax Income	$	1,045					$	2,121

Reported Income Tax Expense From Continuing Operations	$	327		32.1	%		$	671		32.3	%
Costs to Achieve Piedmont Merger	11						17
Adjusted Tax Expense	$	338		32.3	%	*	$	688		32.4	%	*

*Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2018 QTD vs. Prior Year




($ per share)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables		Other			Discontinued Operations			Consolidated
2017 QTD Reported Earnings Per Share, Diluted	$	1.04		$	0.04		$	0.04	$	(0.14	)	$	—		$	0.98
Costs to Achieve Piedmont Merger	—			—			—		0.03			—			0.03
2017 QTD Adjusted Earnings Per Share, Diluted	$	1.04		$	0.04		$	0.04	$	(0.11	)	$	—		$	1.01
Weather	0.07			—			—		—			—			0.07
Volume	(0.01		)	—			—		—			—			(0.01		)
Pricing and Riders^(a)	0.07			0.01			—		—			—			0.08
Wholesale^(b)	0.01			—			—		—			—			0.01
Operations and maintenance, net of recoverables^(c)	(0.03		)	(0.01		)	—		—			—			(0.04		)
Duke Energy Renewables	—			—			0.02		—			—			0.02
Interest Expense and AFUDC^(d)	(0.03		)	—			—		(0.02		)	—			(0.05		)
Other^(e)	(0.12		)	—			—		(0.01		)	—			(0.13		)
Change in effective income tax rate, including impacts of the Tax Act^(f)	0.01			—			—		(0.04		)	—			(0.03		)
2018 QTD Adjusted Earnings Per Share, Diluted	$	1.01		$	0.04		$	0.06	$	(0.18	)	$	—		$	0.93
Costs to Achieve Piedmont Merger	—			—			—		(0.02		)	—			(0.02		)
Regulatory and Legislative Impacts	(0.19		)	—			—		—			—			(0.19		)
Discontinued Operations	—			—			—		—			(0.01		)	(0.01		)
2018 QTD Reported Earnings Per Share, Diluted	$	0.82		$	0.04		$	0.06	$	(0.20	)	$	(0.01	)	$	0.71

Note: Earnings Per Share amounts are calculated using the prior year consolidated statutory income tax rate for all drivers except Commercial Renewables, which uses an effective rate.

(a) Electric Utilities and Infrastructure includes rate increases at DEP as a result of the North Carolina rate case (+$0.03) and increased rider revenues (+$0.04).
(b) Primarily due to the recovery of deferred coal ash costs from wholesale customers in the Carolinas, which is offset in depreciation (+$0.03), and charges related to the resolution of FERC accounting matters (-$0.02).
(c) Electric Utilities and Infrastructure is primarily due to higher storm costs compared to the prior year (-$0.02).
(d) Electric Utilities and Infrastructure includes lower AFUDC equity (-$0.02) and higher interest expense (-$0.01).
(e) Electric Utilities and Infrastructure is primarily due to the amortization of coal ash costs, which is partially offset in wholesale (-$0.04), higher depreciation associated with the DEP rate case (-$0.02), and other increases in depreciation and amortization (-$0.07), primarily due to a growing asset base.
(f) Includes the net earnings impact of the Tax Act, including regulatory deferrals. Electric Utilities and Infrastructure also includes a benefit related to the return of North Carolina state excess deferred income taxes as a result of the DEP rate case.

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

June 2018 YTD vs. Prior Year




	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables		Other			Discontinued Operations			Consolidated
($ per share)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables		Other			Discontinued Operations			Consolidated
2017 YTD Reported Earnings Per Share, Diluted	$	1.95		$	0.23		$	0.07	$	(0.25	)	$	—		$	2.00
Costs to Achieve Piedmont Merger	—			—			—		0.05			—			0.05
2017 YTD Adjusted Earnings Per Share, Diluted	$	1.95		$	0.23		$	0.07	$	(0.20	)	$	—		$	2.05
Weather	0.23			—			—		—			—			0.23
Volume	0.02			0.01			—		—			—			0.03
Pricing and Riders^(a)	0.11			0.03			—		—			—			0.14
Wholesale^(b)	0.05			—			—		—			—			0.05
Operations and maintenance, net of recoverables	0.02			(0.01		)	—		—			—			0.01
Duke Energy Renewables	—			—			0.01		—			—			0.01
Interest Expense and AFUDC^(c)	(0.04		)	—			—		(0.05		)	—			(0.09		)
Other^(d)	(0.22		)	—			—		(0.01		)	—			(0.23		)
Change in effective income tax rate, including impacts of the Tax Act^(e)	0.06			0.01			—		(0.05		)	—			0.02
2018 YTD Adjusted Earnings Per Share, Diluted	$	2.18		$	0.27		$	0.08	$	(0.31	)	$	—		$	2.22
Costs to Achieve Piedmont Merger	—			—			—		(0.04		)	—			(0.04		)
Regulatory and Legislative Impacts	(0.29		)	—			—		—			—			(0.29		)
Sale of Retired Plant	—			—			—		(0.12		)	—			(0.12		)
Impairment of Equity Method Investment	—			(0.06		)	—		—			—			(0.06		)
Impacts of the Tax Act (Alternative Minimum Tax valuation allowance)	—			—			—		(0.11		)	—			(0.11		)
Discontinued Operations	—			—			—		—			(0.01		)	(0.01		)
2018 YTD Reported Earnings Per Share, Diluted	$	1.89		$	0.21		$	0.08	$	(0.58	)	$	(0.01	)	$	1.59

Note: Earnings Per Share amounts are calculated using the prior year consolidated statutory income tax rate for all drivers except for Commercial Renewables, which uses an effective rate.

(a) Electric Utilities and Infrastructure includes rate increases at DEP as a result of the North Carolina rate case (+$0.04) and increased rider revenues (+$0.07).
(b) Primarily due to the recovery of deferred coal ash costs from wholesale customers in the Carolinas, which is offset in depreciation (+$0.07), partially offset by charges related to the resolution of FERC accounting matters (-$0.04).
(c) Electric Utilities and Infrastructure includes lower AFUDC equity (-$0.03) and higher interest expense (-$0.01).
(d) Electric Utilities and Infrastructure is primarily due to amortization of coal ash costs, which is partially offset in wholesale (-$0.08), higher depreciation associated with the DEP rate case (-$0.02) and other increases in depreciation and amortization (-$0.11), primarily due to a growing asset base.
(e) Includes the net earnings impact of the Tax Act, including regulatory deferrals. Electric Utilities and Infrastructure also includes a benefit related to the return of North Carolina state excess deferred income taxes as a result of the DEP rate case.



June 2018
QUARTERLY HIGHLIGHTS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions, except per-share amounts and where noted)	2018			2017			2018			2017
Earnings Per Share - Basic and Diluted
Income from continuing operations attributable to Duke Energy Corporation common stockholders
Basic	$	0.72		$	0.98		$	1.60		$	2.00
Diluted	$	0.72		$	0.98		$	1.60		$	2.00
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic	$	(0.01	)	$	—		$	(0.01	)	$	—
Diluted	$	(0.01	)	$	—		$	(0.01	)	$	—
Net income attributable to Duke Energy Corporation common stockholders
Basic	$	0.71		$	0.98		$	1.59		$	2.00
Diluted	$	0.71		$	0.98		$	1.59		$	2.00
Weighted average shares outstanding
Basic	703			700			702			700
Diluted	704			700			702			700
INCOME (LOSS) BY BUSINESS SEGMENT
Electric Utilities and Infrastructure^(a)	$	575		$	729		$	1,325		$	1,364
Gas Utilities and Infrastructure^(b)	28			27			144			160
Commercial Renewables	38			26			58			51
Total Reportable Segment Income	641			782			1,527			1,575
Other^(c)(d)	(136		)	(94		)	(402		)	(171		)
Loss from Discontinued Operations	(5		)	(2		)	(5		)	(2		)
Net income Attributable to Duke Energy Corporation	$	500		$	686		$	1,120		$	1,402
CAPITALIZATION
Total Common Equity (%)							43		%	44		%
Total Debt (%)							57		%	56		%

Total Debt							$	56,044		$	53,003
Book Value Per Share							$	59.71		$	58.99
Actual Shares Outstanding							712			700
CAPITAL AND INVESTMENT EXPENDITURES
Electric Utilities and Infrastructure	$	1,970		$	1,571		$	3,743		$	3,445
Gas Utilities and Infrastructure	181			265			409			607
Commercial Renewables	16			10			103			69
Other	68			37			141			97
Total Capital and Investment Expenditures	$	2,235		$	1,883		$	4,396		$	4,218


(a) Includes regulatory and legislative charges related to rate case orders, settlements or other actions of regulators or legislative bodies of $136 million (net of tax of $43 million) for the three months ended June 30, 2018, and $202 million (net of tax of $63 million) for the six months ended June 30, 2018.
(b) Includes an other-than-temporary impairment of an investment in Constitution of $42 million (net of tax of $13 million) for the six months ended June 30, 2018.
(c) Includes the loss associated with selling Beckjord, a non-regulated generating facility in Ohio which was retired in 2014, of $82 million (net of tax of $25 million) for the six months ended June 30, 2018.
(d) Includes an Alternative Minimum Tax valuation allowance recognized related to the Tax Act of $76 million for the six months ended June 30, 2018.



DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per-share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Operating Revenues
Regulated electric	$	5,178		$	5,118		$	10,462		$	10,031
Regulated natural gas	291			275			991			921
Nonregulated electric and other	174			162			325			332
Total operating revenues	5,643			5,555			11,778			11,284
Operating Expenses
Fuel used in electric generation and purchased power	1,574			1,541			3,250			2,990
Cost of natural gas	89			76			402			334
Operation, maintenance and other	1,544			1,441			3,008			2,909
Depreciation and amortization	973			835			1,940			1,694
Property and other taxes	315			307			631			611
Impairment charges	172			9			215			9
Total operating expenses	4,667			4,209			9,446			8,547
Gains (Losses) on Sales of Other Assets and Other, net	3			7			(97		)	18
Operating Income	979			1,353			2,235			2,755
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	36			36			12			65
Other income and expenses, net	110			115			196			236
Total other income and expenses	146			151			208			301
Interest Expense	518			486			1,033			977
Income From Continuing Operations Before Income Taxes	607			1,018			1,410			2,079
Income Tax Expense From Continuing Operations	100			327			281			671
Income From Continuing Operations	507			691			1,129			1,408
Loss From Discontinued Operations, net of tax	(5		)	(2		)	(5		)	(2		)
Net Income	502			689			1,124			1,406
Less: Net Income Attributable to Noncontrolling Interests	2			3			4			4
Net Income Attributable to Duke Energy Corporation	$	500		$	686		$	1,120		$	1,402

Earnings Per Share - Basic and Diluted
Income from continuing operations attributable to Duke Energy Corporation common stockholders
Basic	$	0.72		$	0.98		$	1.60		$	2.00
Diluted	$	0.72		$	0.98		$	1.60		$	2.00
Loss from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic	$	(0.01	)	$	—		$	(0.01	)	$	—
Diluted	$	(0.01	)	$	—		$	(0.01	)	$	—
Net income attributable to Duke Energy Corporation common stockholders
Basic	$	0.71		$	0.98		$	1.59		$	2.00
Diluted	$	0.71		$	0.98		$	1.59		$	2.00
Weighted average shares outstanding
Basic	703			700			702			700
Diluted	704			700			702			700

Note: Prior period amounts have been recast to reclassify the presentation of the non-service cost (benefit) components of net periodic costs from Operation, maintenance and other to Other income and expenses due to the adoption of new accounting guidance on January 1, 2018.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(in millions)	June 30, 2018			December 31, 2017
ASSETS
Current Assets
Cash and cash equivalents	$	304		$	358
Receivables (net of allowance for doubtful accounts of $18 at 2018 and $14 at 2017)	612			779
Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2018 and $54 at 2017)	2,205			1,995
Inventory	3,177			3,250
Regulatory assets (includes $51 at 2018 and 2017 related to VIEs)	1,741			1,437
Other	437			634
Total current assets	8,476			8,453
Property, Plant and Equipment
Cost	130,616			127,507
Accumulated depreciation and amortization	(42,499		)	(41,537		)
Generation facilities to be retired, net	378			421
Net property, plant and equipment	88,495			86,391
Other Noncurrent Assets
Goodwill	19,396			19,396
Regulatory assets (includes $1,071 at 2018 and $1,091 at 2017 related to VIEs)	12,505			12,442
Nuclear decommissioning trust funds	7,132			7,097
Investments in equity method unconsolidated affiliates	1,168			1,175
Other	3,087			2,960
Total other noncurrent assets	43,288			43,070
Total Assets	$	140,259		$	137,914
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	2,686		$	3,043
Notes payable and commercial paper	3,329			2,163
Taxes accrued	494			551
Interest accrued	530			525
Current maturities of long-term debt (includes $229 at 2018 and $225 at 2017 related to VIEs)	2,852			3,244
Asset retirement obligations	716			689
Regulatory liabilities	485			402
Other	1,699			1,865
Total current liabilities	12,791			12,482
Long-Term Debt (includes $4,179 at 2018 and $4,306 at 2017 related to VIEs)	49,863			49,035
Other Noncurrent Liabilities
Deferred income taxes	6,977			6,621
Asset retirement obligations	9,753			9,486
Regulatory liabilities	15,355			15,330
Accrued pension and other post-retirement benefit costs	1,014			1,103
Investment tax credits	534			539
Other	1,457			1,581
Total other noncurrent liabilities	35,090			34,660
Commitments and Contingencies
Equity
Common stock, $0.001 par value, 2 billion shares authorized; 712 million shares outstanding at 2018 and 700 million shares outstanding at 2017	1			1
Additional paid-in capital	39,682			38,792
Retained earnings	2,894			3,013
Accumulated other comprehensive loss	(70		)	(67		)
Total Duke Energy Corporation stockholders' equity	42,507			41,739
Noncontrolling interests	8			(2		)
Total equity	42,515			41,737
Total Liabilities and Equity	$	140,259		$	137,914



DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

	Six Months Ended June 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,124		$	1,406
Adjustments to reconcile net income to net cash provided by operating activities	2,178			1,394
Net cash provided by operating activities	3,302			2,800

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	(4,645		)	(4,344		)

CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities	1,265			1,474

Net decrease in cash and cash equivalents	(78		)	(70		)
Cash and cash equivalents at beginning of period	505			541
Cash and cash equivalents at end of period	$	427		$	471

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Three Months Ended June 30, 2018
(in millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	5,223	$	—	$	—		$	—		$	(45	)	$	5,178
Regulated natural gas	—		315		—			—			(24		)	291
Nonregulated electric and other	—		3		119			32			20			174
Total operating revenues	5,223		318		119			32			(49		)	5,643
Operating Expenses
Fuel used in electric generation and purchased power	1,582		—		—			15			(23		)	1,574
Cost of natural gas	—		89		—			—			—			89
Operation, maintenance and other	1,395		103		69			3			(26		)	1,544
Depreciation and amortization	838		60		38			37			—			973
Property and other taxes	279		26		6			4			—			315
Impairment charges	172		—		—			—			—			172
Total operating expenses	4,266		278		113			59			(49		)	4,667
Gains on Sales of Other Assets and Other, net	—		—		—			2			1			3
Operating Income (Loss)	957		40		6			(25		)	1			979
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	2		17		2			16			(1		)	36
Other income and expenses, net	89		5		16			11			(11		)	110
Total Other Income and Expenses	91		22		18			27			(12		)	146
Interest Expense	316		26		23			164			(11		)	518
Income (Loss) from Continuing Operations Before Income Taxes	732		36		1			(162		)	—			607
Income Tax Expense (Benefit) from Continuing Operations	157		8		(36		)	(28		)	(1		)	100
Income (Loss) from Continuing Operations	575		28		37			(134		)	1			507
Less: Net (Loss) Income Attributable to Noncontrolling Interest	—		—		(1		)	2			1			2
Segment Income / Other Net Loss	$	575	$	28	$	38		$	(136	)	$	—		$	505
Loss from Discontinued Operations, net of tax														(5		)
Net Income Attributable to Duke Energy Corporation														$	500

Segment Income / Other Net Loss	$	575	$	28	$	38		$	(136	)	$	—		$	505
Special Items	136		—		—			15			—			151
Adjusted Earnings^(a)	$	711	$	28	$	38		$	(121	)	$	—		$	656


(a)	See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Six Months Ended June 30, 2018
(in millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	10,546	$	—		$	—		$	—		$	(84	)	$	10,462
Regulated natural gas	—		1,040			—			—			(49		)	991
Nonregulated electric and other	—		5			220			67			33			325
Total operating revenues	10,546		1,045			220			67			(100		)	11,778
Operating Expenses
Fuel used in electric generation and purchased power	3,267		—			—			29			(46		)	3,250
Cost of natural gas	—		402			—			—			—			402
Operation, maintenance and other	2,720		211			124			6			(53		)	3,008
Depreciation and amortization	1,673		121			76			70			—			1,940
Property and other taxes	553		57			13			8			—			631
Impairment charges	215		—			—			—			—			215
Total operating expenses	8,428		791			213			113			(99		)	9,446
Gains (Losses) on Sales of Other Assets and Other, net	1		—			—			(99		)	1			(97		)
Operating Income (Loss)	2,119		254			7			(145		)	—			2,235
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	4		(23		)	2			29			—			12
Other income and expenses, net	175		10			18			12			(19		)	196
Total Other Income and Expenses	179		(13		)	20			41			(19		)	208
Interest Expense	633		53			45			321			(19		)	1,033
Income (Loss) from Continuing Operations Before Income Taxes	1,665		188			(18		)	(425		)	—			1,410
Income Tax Expense (Benefit) from Continuing Operations	340		44			(75		)	(27		)	(1		)	281
Income (Loss) from Continuing Operations	1,325		144			57			(398		)	1			1,129
Less: Net (Loss) Income Attributable to Noncontrolling Interest	—		—			(1		)	4			1			4
Segment Income / Other Net Loss	$	1,325	$	144		$	58		$	(402	)	$	—		$	1,125
Loss from Discontinued Operations, net of tax															(5		)
Net Income Attributable to Duke Energy Corporation															$	1,120

Segment Income / Other Net Loss	$	1,325	$	144		$	58		$	(402	)	$	—		$	1,125
Special Items	202		42			—			186			—			430
Adjusted Earnings^(a)	$	1,527	$	186		$	58		$	(216	)	$	—		$	1,555


(a)	See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Three Months Ended June 30, 2017
(in millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	5,158	$	—	$	—		$	—		$	(40	)	$	5,118
Regulated natural gas	—		298		—			—			(23		)	275
Nonregulated electric and other	—		3		110			35			14			162
Total operating revenues	5,158		301		110			35			(49		)	5,555
Operating Expenses
Fuel used in electric generation and purchased power	1,549		—		—			14			(22		)	1,541
Cost of natural gas	—		76		—			—			—			76
Operation, maintenance and other	1,299		94		58			19			(29		)	1,441
Depreciation and amortization	714		57		38			26			—			835
Property and other taxes	270		26		8			4			(1		)	307
Impairment charges	2		—		—			7			—			9
Total operating expenses	3,834		253		104			70			(52		)	4,209
Gains (Loss) on Sales of Other Assets and Other, net	1		—		2			6			(2		)	7
Operating Income (Loss)	1,325		48		8			(29		)	1			1,353
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	1		19		(1		)	17			—			36
Other income and expenses, net	109		2		—			12			(8		)	115
Total Other Income and Expenses	110		21		(1		)	29			(8		)	151
Interest Expense	305		26		23			139			(7		)	486
Income (Loss) from Continuing Operations Before Income Taxes	1,130		43		(16		)	(139		)	—			1,018
Income Tax Expense (Benefit) from Continuing Operations	401		16		(42		)	(48		)	—			327
Income (Loss) from Continuing Operations	729		27		26			(91		)	—			691
Less: Net Income Attributable to Noncontrolling Interest	—		—		—			3			—			3
Segment Income / Other Net Loss	$	729	$	27	$	26		$	(94	)	$	—		$	688
Loss from Discontinued Operations, net of tax														(2		)
Net Income Attributable to Duke Energy Corporation														$	686

Segment Income / Other Net Loss	$	729	$	27	$	26		$	(94	)	$	—		$	688
Special Items	—		—		—			19			—			19
Adjusted Earnings^(a)	$	729	$	27	$	26		$	(75	)	$	—		$	707


(a)	See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Six Months Ended June 30, 2017
(in millions)	Electric Utilities and Infrastructure		Gas Utilities and Infrastructure		Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	10,105	$	—	$	—		$	—		$	(74	)	$	10,031
Regulated natural gas	—		966		—			—			(45		)	921
Nonregulated electric and other	—		5		238			68			21			332
Total operating revenues	10,105		971		238			68			(98		)	11,284
Operating Expenses
Fuel used in electric generation and purchased power	3,003		—		—			29			(42		)	2,990
Cost of natural gas	—		334		—			—			—			334
Operation, maintenance and other	2,603		199		136			27			(56		)	2,909
Depreciation and amortization	1,451		114		77			52			—			1,694
Property and other taxes	531		56		17			7			—			611
Impairment charges	2		—		—			7			—			9
Total operating expenses	7,590		703		230			122			(98		)	8,547
Gains (Loss) on Sales of Other Assets and Other, net	4		—		4			11			(1		)	18
Operating Income (Loss)	2,519		268		12			(43		)	(1		)	2,755
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	1		36		(2		)	30			—			65
Other income and expenses, net	221		3		1			20			(9		)	236
Total Other Income and Expenses	222		39		(1		)	50			(9		)	301
Interest Expense	620		52		42			273			(10		)	977
Income (Loss) from Continuing Operations Before Income Taxes	2,121		255		(31		)	(266		)	—			2,079
Income Tax Expense (Benefit) from Continuing Operations	757		95		(81		)	(100		)	—			671
Income (Loss) from Continuing Operations	1,364		160		50			(166		)	—			1,408
Less: Net (Loss) Income Attributable to Noncontrolling Interest	—		—		(1		)	5			—			4
Segment Income / Other Net Loss	$	1,364	$	160	$	51		$	(171	)	$	—		$	1,404
Loss from Discontinued Operations, net of tax														(2		)
Net Income Attributable to Duke Energy Corporation														$	1,402

Segment Income / Other Net Loss	$	1,364	$	160	$	51		$	(171	)	$	—		$	1,404
Special Items	—		—		—			29			—			29
Adjusted Earnings^(a)	$	1,364	$	160	$	51		$	(142	)	$	—		$	1,433


(a)	See Reported To Adjusted Earnings Reconciliation above for a detailed reconciliation of Segment Income / Other Net Loss to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS - ASSETS

(Unaudited)



	June 30, 2018
(in millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations / Adjustments			Duke Energy
Current Assets
Cash and cash equivalents	$	78		$	10		$	22		$	194		$	—		$	304
Receivables, net	458			94			20			40			—			612
Receivables of variable interest entities, net	2,171			—			34			—			—			2,205
Receivables from affiliated companies	18			14			1,310			333			(1,675		)	—
Notes receivable from affiliated companies	80			77			—			1,292			(1,449		)	—
Inventory	3,068			69			14			25			1			3,177
Regulatory assets	1,595			36			—			110			—			1,741
Other	294			37			124			18			(36		)	437
Total current assets	7,762			337			1,524			2,012			(3,159		)	8,476
Property, Plant and Equipment
Cost	114,127			10,052			4,391			2,045			1			130,616
Accumulated depreciation and amortization	(38,341		)	(2,288		)	(769		)	(1,100		)	(1		)	(42,499		)
Generation facilities to be retired, net	378			—			—			—			—			378
Net property, plant and equipment	76,164			7,764			3,622			945			—			88,495
Other Noncurrent Assets
Goodwill	17,379			1,924			93			—			—			19,396
Regulatory assets	11,411			633			—			462			(1		)	12,505
Nuclear decommissioning trust funds	7,132			—			—			—			—			7,132
Investments in equity method unconsolidated affiliates	94			744			202			128			—			1,168
Investment in consolidated subsidiaries	201			23			6			57,788			(58,018		)	—
Other	2,174			83			103			1,361			(634		)	3,087
Total other noncurrent assets	38,391			3,407			404			59,739			(58,653		)	43,288
Total Assets	122,317			11,508			5,550			62,696			(61,812		)	140,259
Segment reclassifications, intercompany balances and other	(370		)	(71		)	(1,317		)	(60,235		)	61,993			—
Segment Assets	$	121,947		$	11,437		$	4,233		$	2,461		$	181		$	140,259

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS - LIABILITIES AND EQUITY

(Unaudited)



	June 30, 2018
(in millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations / Adjustments			Duke Energy
Current Liabilities
Accounts payable	$	2,000		$	172		$	32		$	483		$	(1	)	$	2,686
Accounts payable to affiliated companies	426			18			9			1,207			(1,660		)	—
Notes payable to affiliated companies	1,320			72			—			72			(1,464		)	—
Notes payable and commercial paper	—			—			23			3,306			—			3,329
Taxes accrued	540			18			(92		)	27			1			494
Interest accrued	340			36			—			155			(1		)	530
Current maturities of long-term debt	1,977			250			175			450			—			2,852
Asset retirement obligations	716			—			—			—			—			716
Regulatory liabilities	412			69			—			3			1			485
Other	1,302			56			37			341			(37		)	1,699
Total current liabilities	9,033			691			184			6,044			(3,161		)	12,791
Long-Term Debt	29,723			2,440			1,606			16,095			(1		)	49,863
Long-Term Debt Payable to Affiliated Companies	618			7			9			—			(634		)	—
Other Noncurrent Liabilities
Deferred income taxes	9,019			854			(236		)	(2,660		)	—			6,977
Asset retirement obligations	9,610			51			93			—			(1		)	9,753
Regulatory liabilities	13,773			1,561			—			21			—			15,355
Accrued pension and other post-retirement benefit costs	674			18			—			322			—			1,014
Investment tax credits	532			3			—			—			(1		)	534
Other	683			229			243			299			3			1,457
Total other noncurrent liabilities	34,291			2,716			100			(2,018		)	1			35,090
Equity
Total Duke Energy Corporation stockholders' equity	48,652			5,654			3,644			42,575			(58,018		)	42,507
Noncontrolling interests	—			—			7			—			1			8
Total equity	48,652			5,654			3,651			42,575			(58,017		)	42,515
Total Liabilities and Equity	122,317			11,508			5,550			62,696			(61,812		)	140,259
Segment reclassifications, intercompany balances and other	(370		)	(71		)	(1,317		)	(60,235		)	61,993			—
Segment Liabilities and Equity	$	121,947		$	11,437		$	4,233		$	2,461		$	181		$	140,259

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Three Months Ended June 30, 2018
(in millions)	Duke Energy Carolinas			Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio^(a)		Duke Energy Indiana		Eliminations/ Other			Electric Utilities and Infrastructure
Operating Revenues	$	1,672		$	1,291	$	1,203	$	346	$	738	$	(27	)	$	5,223
Operating Expenses
Fuel used in electric generation and purchased power	407			408		486		93		226		(38		)	1,582
Operation, maintenance and other	492			371		234		95		197		6			1,395
Depreciation and amortization	289			235		144		41		126		3			838
Property and other taxes	75			40		91		53		20		—			279
Impairment charges	177			1		—		—		—		(6		)	172
Total operating expenses	1,440			1,055		955		282		569		(35		)	4,266
(Losses) Gains on Sales of Other Assets and Other, net	(1		)	1		—		—		—		—			—
Operating Income	231			237		248		64		169		8			957
Other Income and Expenses, net^(b)	35			19		26		6		6		(1		)	91
Interest Expense	110			78		67		17		43		1			316
Income Before Income Taxes	156			178		207		53		132		6			732
Income Tax Expense	33			36		37		14		33		4			157
Segment Income	$	123		$	142	$	170	$	39	$	99	$	2		$	575


(a)	Includes results of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes an equity component of allowance for funds used during construction of $18 million for Duke Energy Carolinas, $12 million for Duke Energy Progress, $14 million for Duke Energy Florida, $3 million for Duke Energy Ohio and $3 million for Duke Energy Indiana.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Six Months Ended June 30, 2018
(in millions)	Duke Energy Carolinas			Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio^(a)		Duke Energy Indiana		Eliminations/ Other			Electric Utilities and Infrastructure
Operating Revenues	$	3,435		$	2,751	$	2,318	$	682	$	1,469	$	(109	)	$	10,546
Operating Expenses
Fuel used in electric generation and purchased power	880			917		953		185		458		(126		)	3,267
Operation, maintenance and other	935			747		468		184		376		10			2,720
Depreciation and amortization	561			470		294		89		256		3			1,673
Property and other taxes	147			75		179		112		40		—			553
Impairment charges	190			33		—		—		—		(8		)	215
Total operating expenses	2,713			2,242		1,894		570		1,130		(121		)	8,428
Gains on Sales of Other Assets and Other, net	(1		)	2		—		—		—		—			1
Operating Income	721			511		424		112		339		12			2,119
Other Income and Expenses, net^(b)	74			37		47		11		13		(3		)	179
Interest Expense	217			159		137		33		83		4			633
Income Before Income Taxes	578			389		334		90		269		5			1,665
Income Tax Expense	126			66		58		18		69		3			340
Segment Income	$	452		$	323	$	276	$	72	$	200	$	2		$	1,325


(a)	Includes results of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes an equity component of allowance for funds used during construction of $39 million for Duke Energy Carolinas, $26 million for Duke Energy Progress, $26 million for Duke Energy Florida, $6 million for Duke Energy Ohio and $7 million for Duke Energy Indiana.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS - ASSETS

(Unaudited)



	June 30, 2018
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio^(a)			Duke Energy Indiana			Eliminations/ Adjustments^(b)			Electric Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	16		$	18		$	14		$	5		$	24		$	1		$	78
Receivables, net	172			50			78			101			54			3			458
Receivables of variable interest entities, net	704			568			400			—			—			499			2,171
Receivables from affiliated companies	117			1			6			53			89			(248		)	18
Notes receivable from affiliated companies	—			—			423			—			—			(343		)	80
Inventory	984			976			546			92			470			—			3,068
Regulatory assets	420			532			439			14			191			(1		)	1,595
Other	21			33			183			5			52			—			294
Total current assets	2,434			2,178			2,089			270			880			(89		)	7,762
Property, Plant and Equipment
Cost	43,429			30,535			18,353			6,054			15,213			543			114,127
Accumulated depreciation and amortization	(15,248		)	(11,296		)	(5,079		)	(1,941		)	(4,767		)	(10		)	(38,341		)
Generation facilities to be retired, net	—			378			—			—			—			—			378
Net property, plant and equipment	28,181			19,617			13,274			4,113			10,446			533			76,164
Other Noncurrent Assets
Goodwill	—			—			—			596			—			16,783			17,379
Regulatory assets	3,234			3,573			2,163			301			1,021			1,119			11,411
Nuclear decommissioning trust funds	3,790			2,627			715			—			—			—			7,132
Investments in equity method unconsolidated affiliates	—			—			—			—			—			94			94
Investment in consolidated subsidiaries	29			6			2			163			1			—			201
Other	1,036			636			307			59			224			(88		)	2,174
Total other noncurrent assets	8,089			6,842			3,187			1,119			1,246			17,908			38,391
Total Assets	38,704			28,637			18,550			5,502			12,572			18,352			122,317
Segment reclassifications, intercompany balances and other	(262		)	(72		)	(410		)	(166		)	(58		)	598			(370		)
Reportable Segment Assets	$	38,442		$	28,565		$	18,140		$	5,336		$	12,514		$	18,950		$	121,947


(a)	Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS - LIABILITIES AND EQUITY

(Unaudited)



	June 30, 2018
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio^(a)			Duke Energy Indiana			Eliminations/ Adjustments^(b)			Electric Utilities and Infrastructure
Current Liabilities
Accounts payable	$	809		$	375		$	440		$	200		$	171		$	5		$	2,000
Accounts payable to affiliated companies	158			175			63			11			58			(39		)	426
Notes payable to affiliated companies	740			540			—			147			221			(328		)	1,320
Taxes accrued	159			91			116			114			54			6			540
Interest accrued	109			103			53			16			59			—			340
Current maturities of long-term debt	505			603			269			451			62			87			1,977
Asset retirement obligations	227			381			5			5			98			—			716
Regulatory liabilities	131			157			76			29			19			—			412
Other	412			344			357			67			123			(1		)	1,302
Total current liabilities	3,250			2,769			1,379			1,040			865			(270		)	9,033
Long-Term Debt	9,589			6,605			7,183			1,102			3,570			1,674			29,723
Long-Term Debt Payable to Affiliated Companies	300			150			—			18			150			—			618
Other Noncurrent Liabilities
Deferred income taxes	3,535			1,962			2,008			547			958			9			9,019
Asset retirement obligations	3,592			4,454			597			48			758			161			9,610
Regulatory liabilities	6,292			3,998			1,194			533			1,755			1			13,773
Accrued pension and other post-retirement benefit costs	99			243			243			69			111			(91		)	674
Investment tax credits	230			142			9			4			147			—			532
Other	515			49			49			69			14			(13		)	683
Total other noncurrent liabilities	14,263			10,848			4,100			1,270			3,743			67			34,291
Equity	11,302			8,265			5,888			2,072			4,244			16,881			48,652
Total Liabilities and Equity	38,704			28,637			18,550			5,502			12,572			18,352			122,317
Segment reclassifications, intercompany balances and other	(262		)	(72		)	(410		)	(166		)	(58		)	598			(370		)
Reportable Segment Liabilities and Equity	$	38,442		$	28,565		$	18,140		$	5,336		$	12,514		$	18,950		$	121,947


(a)	Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances and purchase accounting adjustments.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Three Months Ended June 30, 2018
(in millions)	Duke Energy Ohio^(a)		Piedmont Natural Gas LDC			Midstream Pipelines and Storage^(b)			Eliminations/ Adjustments			Gas Utilities and Infrastructure
Operating Revenues	$	103	$	215		$	—		$	—		$	318
Operating Expenses
Cost of natural gas	15		74			—			—			89
Operation, maintenance and other	25		74			2			2			103
Depreciation and amortization	21		39			—			—			60
Property and other taxes	15		12			—			(1		)	26
Total operating expenses	76		199			2			1			278
Operating Income (Loss)	27		16			(2		)	(1		)	40
Other Income and Expenses
Equity in earnings of unconsolidated affiliates	—		—			17			—			17
Other income and expenses, net	1		3			—			1			5
Total other income and expenses	1		3			17			1			22
Interest Expense	6		21			—			(1		)	26
Income (Loss) Before Income Taxes	22		(2		)	15			1			36
Income Tax Expense (Benefit)	4		(1		)	4			1			8
Segment Income	$	18	$	(1	)	$	11		$	—		$	28


(a)	Includes results of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Six Months Ended June 30, 2018
(in millions)	Duke Energy Ohio^(a)		Piedmont Natural Gas LDC		Midstream Pipelines and Storage^(b)			Eliminations/ Adjustments			Gas Utilities and Infrastructure
Operating Revenues	$	277	$	768	$	—		$	—		$	1,045
Operating Expenses
Cost of natural gas	69		333		—			—			402
Operation, maintenance and other	58		150		3			—			211
Depreciation and amortization	43		78		—			—			121
Property and other taxes	33		24		—			—			57
Total operating expenses	203		585		3			—			791
Operating Income (Loss)	74		183		(3		)	—			254
Other Income and Expenses
Equity in losses of unconsolidated affiliates	—		—		(23		)	—			(23		)
Other income and expenses, net	4		6		—			—			10
Total other income and expenses	4		6		(23		)	—			(13		)
Interest Expense	12		42		—			(1		)	53
Income (Loss) Before Income Taxes	66		147		(26		)	1			188
Income Tax Expense (Benefit)	14		35		(6		)	1			44
Segment Income	$	52	$	112	$	(20	)	$	—		$	144


(a)	Includes results of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS - ASSETS

(Unaudited)



	June 30, 2018
(in millions)	Duke Energy Ohio^(a)			Piedmont Natural Gas LDC			Midstream Pipelines and Storage			Eliminations/ Adjustments^(b)			Gas Utilities and Infrastructure
Current Assets
Cash and cash equivalents	$	2		$	8		$	—		$	—		$	10
Receivables, net	(16		)	109			—			1			94
Receivables from affiliated companies	16			71			—			(73		)	14
Notes receivable from affiliated companies	—			77			—			—			77
Inventory	31			38			—			—			69
Regulatory assets	1			35			—			—			36
Other	1			37			—			(1		)	37
Total current assets	35			375			—			(73		)	337
Property, Plant and Equipment
Cost	2,970			7,082			—			—			10,052
Accumulated depreciation and amortization	(755		)	(1,533		)	—			—			(2,288		)
Net property, plant and equipment	2,215			5,549			—			—			7,764
Other Noncurrent Assets
Goodwill	324			49			—			1,551			1,924
Regulatory assets	155			297			—			181			633
Investments in equity method unconsolidated affiliates	—			—			744			—			744
Investment in consolidated subsidiaries	—			—			—			23			23
Other	1			63			17			2			83
Total other noncurrent assets	480			409			761			1,757			3,407
Total Assets	2,730			6,333			761			1,684			11,508
Segment reclassifications, intercompany balances and other	(3		)	1			(30		)	(39		)	(71		)
Reportable Segment Assets	$	2,727		$	6,334		$	731		$	1,645		$	11,437


(a)	Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances and purchase accounting adjustments.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS - LIABILITIES AND EQUITY

(Unaudited)



	June 30, 2018
(in millions)	Duke Energy Ohio^(a)			Piedmont Natural Gas LDC		Midstream Pipelines and Storage			Eliminations/ Adjustments^(b)			Gas Utilities and Infrastructure
Current Liabilities
Accounts payable	$	38		$	133	$	—		$	1		$	172
Accounts payable to affiliated companies	—			4		86			(72		)	18
Notes payable to affiliated companies	72			—		—			—			72
Taxes accrued	7			37		(26		)	—			18
Interest accrued	5			31		—			—			36
Current maturities of long-term debt	1			250		—			(1		)	250
Regulatory liabilities	22			47		—			—			69
Other	3			53		—			—			56
Total current liabilities	148			555		60			(72		)	691
Long-Term Debt	486			1,787		—			167			2,440
Long-Term Debt Payable to Affiliated Companies	7			—		—			—			7
Other Noncurrent Liabilities
Deferred income taxes	247			555		52			—			854
Asset retirement obligations	36			15		—			—			51
Regulatory liabilities	363			1,183		—			15			1,561
Accrued pension and other post-retirement benefit costs	14			3		—			1			18
Investment tax credits	2			1		—			—			3
Other	46			174		12			(3		)	229
Total other noncurrent liabilities	708			1,931		64			13			2,716
Equity	1,381			2,060		637			1,576			5,654
Total Liabilities and Equity	2,730			6,333		761			1,684			11,508
Segment reclassifications, intercompany balances and other	(3		)	1		(30		)	(39		)	(71		)
Reportable Segment Liabilities and Equity	$	2,727		$	6,334	$	731		$	1,645		$	11,437


(a)	Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances and purchase accounting adjustments.



Electric Utilities and Infrastructure
Quarterly Highlights
June 2018

		Three Months Ended June 30,						Six Months Ended June 30,
		2018	2017	% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017	% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	19,159	18,061	6.1	%	0.8	%	42,900		38,126	12.5	%	1.8	%
	General Service	19,026	18,774	1.3	%	0.6	%	37,466		36,323	3.1	%	0.7	%
	Industrial	13,070	13,096	(0.2	%)	(2.1	%)	25,174		25,401	(0.9	%)	(2.3	%)
	Other Energy Sales	141	141	—	%			281		285	(1.4	%)
	Unbilled Sales	1,640	1,397	17.4	%	n/a		(235	)	462	(150.9	%)	n/a
	Total Retail Sales	53,036	51,469	3.0	%	—	%	105,586		100,597	5.0	%	0.3	%
	Wholesale and Other	9,884	9,949	(0.7	%)			20,863		19,811	5.3	%
	Total Consolidated Electric Sales - Electric Utilities and Infrastructure	62,920	61,418	2.4	%			126,449		120,408	5.0	%

Average Number of Customers (Electric)
	Residential	6,619,271	6,523,982	1.5	%			6,611,543		6,517,331	1.4	%
	General Service	982,634	972,127	1.1	%			980,927		970,512	1.1	%
	Industrial	17,530	17,730	(1.1	%)			17,567		17,739	(1.0	%)
	Other Energy Sales	23,527	23,298	1.0	%			23,501		23,251	1.1	%
	Total Retail Customers	7,642,962	7,537,137	1.4	%			7,633,538		7,528,833	1.4	%
	Wholesale and Other	57	58	(1.7	%)			55		59	(6.8	%)
	Total Average Number of Customers - Electric Utilities and Infrastructure	7,643,019	7,537,195	1.4	%			7,633,593		7,528,892	1.4	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	15,458	18,257	(15.3	%)			33,196		35,196	(5.7	%)
	Nuclear	17,595	18,158	(3.1	%)			36,100		35,899	0.6	%
	Hydro	982	628	56.4	%			1,736		829	109.4	%
	Oil and Natural Gas	17,697	14,364	23.2	%			34,014		28,595	19.0	%
	Renewable Energy	148	128	15.6	%			244		203	20.2	%
	Total Generation (4)	51,880	51,535	0.7	%			105,290		100,722	4.5	%
	Purchased Power and Net Interchange (5)	14,761	13,146	12.3	%			28,681		25,714	11.5	%
	Total Sources of Energy	66,641	64,681	3.0	%			133,971		126,436	6.0	%
	Less: Line Loss and Other	3,721	3,263	14.0	%			7,522		6,028	24.8	%
	Total GWh Sources	62,920	61,418	2.4	%			126,449		120,408	5.0	%

Owned MW Capacity (3)
	Summer							49,934		49,387
	Winter							53,503		53,091
Nuclear Capacity Factor (%) (6)								94		93


	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.

	(6) Statistics reflect 100% of jointly owned stations.



Duke Energy Carolinas
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
June 2018

		Three Months Ended June 30,								Six Months Ended June 30,
		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	6,324		5,841		8.3	%			14,608		12,712		14.9	%
	General Service	7,193		7,005		2.7	%			14,139		13,532		4.5	%
	Industrial	5,519		5,572		(1.0	%)			10,503		10,634		(1.2	%)
	Other Energy Sales	75		75		—	%			150		151		(0.7	%)
	Unbilled Sales	426		200		113.0	%			(97	)	(32	)	(203.1	%)
	Total Retail Sales	19,537		18,693		4.5	%	0.7	%	39,303		36,997		6.2	%	1.2	%
	Wholesale and Other	2,735		2,550		7.3	%			5,596		5,027		11.3	%
	Total Consolidated Electric Sales - Duke Energy Carolinas	22,272		21,243		4.8	%			44,899		42,024		6.8	%

Average Number of Customers
	Residential	2,209,018		2,176,676		1.5	%			2,205,938		2,173,011		1.5	%
	General Service	357,583		353,269		1.2	%			356,842		352,521		1.2	%
	Industrial	6,181		6,239		(0.9	%)			6,194		6,245		(0.8	%)
	Other Energy Sales	15,536		15,365		1.1	%			15,508		15,331		1.2	%
	Total Retail Customers	2,588,318		2,551,549		1.4	%			2,584,482		2,547,108		1.5	%
	Wholesale and Other	26		25		4.0	%			24		25		(4.0	%)
	Total Average Number of Customers - Duke Energy Carolinas	2,588,344		2,551,574		1.4	%			2,584,506		2,547,133		1.5	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	6,029		6,906		(12.7	%)			12,279		12,492		(1.7	%)
	Nuclear	11,083		11,027		0.5	%			22,721		22,063		3.0	%
	Hydro	714		384		85.9	%			1,239		437		183.5	%
	Oil and Natural Gas	4,051		2,366		71.2	%			7,203		5,060		42.4	%
	Renewable Energy	56		41		36.6	%			85		50		70.0	%
	Total Generation (4)	21,933		20,724		5.8	%			43,527		40,102		8.5	%
	Purchased Power and Net Interchange (5)	1,517		1,816		(16.5	%)			3,834		4,299		(10.8	%)
	Total Sources of Energy	23,450		22,540		4.0	%			47,361		44,401		6.7	%
	Less: Line Loss and Other	1,178		1,297		(9.2	%)			2,462		2,377		3.6	%
	Total GWh Sources	22,272		21,243		4.8	%			44,899		42,024		6.8	%

Owned MW Capacity (3)
	Summer									20,188		19,568
	Winter									21,068		20,425
Nuclear Capacity Factor (%) (6)										97		95

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	208		131		58.8	%			1,929		1,422		35.7	%
	Cooling Degree Days	638		524		21.8	%			648		534		21.3	%

	Variance from Normal
	Heating Degree Days	(5.8	%)	(40.5	%)	n/a				(1.8	%)	(27.7	%)	n/a
	Cooling Degree Days	30.0	%	6.3	%	n/a				30.3	%	7.2	%	n/a

	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.

	(6) Statistics reflect 100% of jointly owned stations.



Duke Energy Progress
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
June 2018

		Three Months Ended June 30,								Six Months Ended June 30,
		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	4,032		3,705		8.8	%			9,532		8,338		14.3	%
	General Service	3,771		3,723		1.3	%			7,503		7,272		3.2	%
	Industrial	2,640		2,602		1.5	%			5,077		5,091		(0.3	%)
	Other Energy Sales	20		20		—	%			39		41		(4.9	%)
	Unbilled Sales	295		448		(34.2	%)			(272	)	(52	)	(423.1	%)
	Total Retail Sales	10,758		10,498		2.5	%	—	%	21,879		20,690		5.7	%	0.7	%
	Wholesale and Other	5,138		5,064		1.5	%			11,243		10,509		7.0	%
	Total Consolidated Electric Sales - Duke Energy Progress	15,896		15,562		2.1	%			33,122		31,199		6.2	%

Average Number of Customers
	Residential	1,328,158		1,307,337		1.6	%			1,325,644		1,304,901		1.6	%
	General Service	234,703		231,713		1.3	%			234,005		231,059		1.3	%
	Industrial	4,055		4,132		(1.9	%)			4,057		4,130		(1.8	%)
	Other Energy Sales	1,444		1,456		(0.8	%)			1,447		1,459		(0.8	%)
	Total Retail Customers	1,568,360		1,544,638		1.5	%			1,565,153		1,541,549		1.5	%
	Wholesale and Other	14		14		—	%			14		14		—	%
	Total Average Number of Customers - Duke Energy Progress	1,568,374		1,544,652		1.5	%			1,565,167		1,541,563		1.5	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	2,023		1,593		27.0	%			4,326		3,237		33.6	%
	Nuclear	6,512		7,131		(8.7	%)			13,379		13,836		(3.3	%)
	Hydro	236		198		19.2	%			445		301		47.8	%
	Oil and Natural Gas	5,027		4,876		3.1	%			11,226		10,712		4.8	%
	Renewable Energy	74		72		2.8	%			128		134		(4.5	%)
	Total Generation (4)	13,872		13,870		—	%			29,504		28,220		4.5	%
	Purchased Power and Net Interchange (5)	2,734		2,162		26.5	%			4,969		3,986		24.7	%
	Total Sources of Energy	16,606		16,032		3.6	%			34,473		32,206		7.0	%
	Less: Line Loss and Other	710		470		51.1	%			1,351		1,007		34.2	%
	Total GWh Sources	15,896		15,562		2.1	%			33,122		31,199		6.2	%

Owned MW Capacity (3)
	Summer									12,760		12,777
	Winter									14,016		13,987
Nuclear Capacity Factor (%) (6)										87		90

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	191		83		130.1	%			1,805		1,286		40.4	%
	Cooling Degree Days	696		647		7.6	%			719		657		9.4	%

	Variance from Normal
	Heating Degree Days	1.1	%	(55.7	%)	n/a				0.1	%	(28.7	%)	n/a
	Cooling Degree Days	30.3	%	21.1	%	n/a				32.1	%	20.8	%	n/a

	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.

	(6) Statistics reflect 100% of jointly owned stations.



Duke Energy Florida
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
June 2018

		Three Months Ended June 30,								Six Months Ended June 30,
		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	4,663		4,944		(5.7	%)			9,191		8,768		4.8	%
	General Service	3,699		3,803		(2.7	%)			7,139		7,057		1.2	%
	Industrial	781		787		(0.8	%)			1,539		1,542		(0.2	%)
	Other Energy Sales	6		6		—	%			12		12		—	%
	Unbilled Sales	573		497		15.3	%			388		653		(40.6	%)
	Total Retail Sales	9,722		10,037		(3.1	%)	(1.7	%)	18,269		18,032		1.3	%	(0.8	%)
	Wholesale and Other	582		703		(17.2	%)			1,154		1,013		13.9	%
	Total Electric Sales - Duke Energy Florida	10,304		10,740		(4.1	%)			19,423		19,045		2.0	%

Average Number of Customers
	Residential	1,594,538		1,569,855		1.6	%			1,591,724		1,566,947		1.6	%
	General Service	200,657		198,307		1.2	%			200,432		197,864		1.3	%
	Industrial	2,082		2,146		(3.0	%)			2,096		2,151		(2.6	%)
	Other Energy Sales	1,511		1,518		(0.5	%)			1,514		1,521		(0.5	%)
	Total Retail Customers	1,798,788		1,771,826		1.5	%			1,795,766		1,768,483		1.5	%
	Wholesale and Other	11		13		(15.4	%)			11		14		(21.4	%)
	Total Average Number of Customers - Duke Energy Florida	1,798,799		1,771,839		1.5	%			1,795,777		1,768,497		1.5	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	1,877		2,835		(33.8	%)			3,998		4,952		(19.3	%)
	Oil and Natural Gas	7,238		6,664		8.6	%			13,329		12,012		11.0	%
	Renewable Energy	9		4		n/a				17		8		n/a
	Total Generation (4)	9,124		9,503		(4.0	%)			17,344		16,972		2.2	%
	Purchased Power and Net Interchange (5)	1,901		1,753		8.4	%			3,279		3,049		7.5	%
	Total Sources of Energy	11,025		11,256		(2.1	%)			20,623		20,021		3.0	%
	Less: Line Loss and Other	721		516		39.7	%			1,200		976		23.0	%
	Total GWh Sources	10,304		10,740		(4.1	%)			19,423		19,045		2.0	%

Owned MW Capacity (3)
	Summer									9,304		9,225
	Winter									10,255		10,332

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	2		1		100.0	%			385		177		117.5	%
	Cooling Degree Days	1,052		1,079		(2.5	%)			1,316		1,352		(2.7	%)

	Variance from Normal
	Heating Degree Days	(81.9	%)	(94.1	%)	n/a				(1.3	%)	(54.8	%)	n/a
	Cooling Degree Days	1.2	%	4.5	%	n/a				7.5	%	11.2	%	n/a

	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.



Duke Energy Ohio
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
June 2018

		Three Months Ended June 30,								Six Months Ended June 30,
		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	2,052		1,777		15.5	%			4,615		4,030		14.5	%
	General Service	2,341		2,267		3.3	%			4,660		4,524		3.0	%
	Industrial	1,471		1,464		0.5	%			2,858		2,905		(1.6	%)
	Other Energy Sales	27		27		—	%			54		55		(1.8	%)
	Unbilled Sales	206		132		56.1	%			(118	)	(69	)	(71.0	%)
	Total Retail Sales	6,097		5,667		7.6	%	0.4	%	12,069		11,445		5.5	%	(0.8	%)
	Wholesale and Other	50		234		(78.6	%)			150		515		(70.9	%)
	Total Electric Sales - Duke Energy Ohio	6,147		5,901		4.2	%			12,219		11,960		2.2	%

Average Number of Customers
	Residential	765,215		758,460		0.9	%			766,081		758,962		0.9	%
	General Service	88,214		87,787		0.5	%			88,238		87,965		0.3	%
	Industrial	2,492		2,499		(0.3	%)			2,497		2,504		(0.3	%)
	Other Energy Sales	3,332		3,302		0.9	%			3,332		3,292		1.2	%
	Total Retail Customers	859,253		852,048		0.8	%			860,148		852,723		0.9	%
	Wholesale and Other	1		1		—	%			1		1		—	%
	Total Average Number of Customers - Duke Energy Ohio	859,254		852,049		0.8	%			860,149		852,724		0.9	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	143		1,023		(86.0	%)			819		2,226		(63.2	%)
	Oil and Natural Gas	49		6		716.7	%			69		7		885.7	%
	Total Generation (4)	192		1,029		(81.3	%)			888		2,233		(60.2	%)
	Purchased Power and Net Interchange (5)	6,549		5,446		20.3	%			12,884		10,912		18.1	%
	Total Sources of Energy	6,741		6,475		4.1	%			13,772		13,145		4.8	%
	Less: Line Loss and Other	594		574		3.5	%			1,553		1,185		31.1	%
	Total GWh Sources	6,147		5,901		4.2	%			12,219		11,960		2.2	%

Owned MW Capacity (3)
	Summer									1,076		1,076
	Winter									1,164		1,164

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	497		313		58.8	%			3,066		2,357		30.1	%
	Cooling Degree Days	539		332		62.3	%			543		333		63.1	%

	Variance from Normal
	Heating Degree Days	9.9	%	(30.4	%)	n/a				1.4	%	(22.1	%)	n/a
	Cooling Degree Days	64.2	%	1.2	%	n/a				63.5	%	0.5	%	n/a


	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.



Duke Energy Indiana
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
June 2018

		Three Months Ended June 30,								Six Months Ended June 30,
		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)		2018		2017		% Inc.(Dec.)		% Inc.(Dec.) Weather Normal (2)
GWh Sales (1)
	Residential	2,088		1,794		16.4	%			4,954		4,278		15.8	%
	General Service	2,022		1,976		2.3	%			4,025		3,938		2.2	%
	Industrial	2,659		2,671		(0.4	%)			5,197		5,229		(0.6	%)
	Other Energy Sales	13		13		—	%			26		26		—	%
	Unbilled Sales	140		120		16.7	%			(136	)	(38	)	257.9	%
	Total Retail Sales	6,922		6,574		5.3	%	0.1	%	14,066		13,433		4.7	%	0.1	%
	Wholesale and Other	1,379		1,398		(1.4	%)			2,720		2,747		(1.0	%)
	Total Electric Sales - Duke Energy Indiana	8,301		7,972		4.1	%			16,786		16,180		3.7	%

Average Number of Customers
	Residential	722,342		711,654		1.5	%			722,156		713,510		1.2	%
	General Service	101,477		101,051		0.4	%			101,410		101,103		0.3	%
	Industrial	2,720		2,714		0.2	%			2,723		2,709		0.5	%
	Other Energy Sales	1,704		1,657		2.8	%			1,700		1,648		3.2	%
	Total Retail Customers	828,243		817,076		1.4	%			827,989		818,970		1.1	%
	Wholesale and Other	5		5		—	%			5		5		—	%
	Total Average Number of Customers - Duke Energy Indiana	828,248		817,081		1.4	%			827,994		818,975		1.1	%

Sources of Electric Energy (GWh)
	Generated - Net Output (3)
	Coal	5,386		5,900		(8.7	%)			11,774		12,289		(4.2	%)
	Hydro	32		46		(30.4	%)			52		91		(42.9	%)
	Oil and Natural Gas	1,332		452		194.7	%			2,187		804		172.0	%
	Renewable Energy	9		11		n/a				14		11		n/a
	Total Generation (4)	6,759		6,409		5.5	%			14,027		13,195		6.3	%
	Purchased Power and Net Interchange (5)	2,060		1,969		4.6	%			3,715		3,468		7.1	%
	Total Sources of Energy	8,819		8,378		5.3	%			17,742		16,663		6.5	%
	Less: Line Loss and Other	518		406		27.6	%			956		483		97.9	%
	Total GWh Sources	8,301		7,972		4.1	%			16,786		16,180		3.7	%

Owned MW Capacity (3)
	Summer									6,606		6,741
	Winter									7,000		7,183

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	547		372		47.0	%			3,378		2,580		30.9	%
	Cooling Degree Days	557		323		72.4	%			561		323		73.7	%

	Variance from Normal
	Heating Degree Days	11.0	%	(24.6	%)	n/a				3.7	%	(20.8	%)	n/a
	Cooling Degree Days	68.9	%	(2.2	%)	n/a				68.4	%	(3.1	%)	n/a


	(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes.

	(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales).

	(3) Statistics reflect Duke Energy's ownership share of jointly owned stations.

	(4) Generation by source is reported net of auxiliary power.

	(5) Purchased power includes renewable energy purchases.



Gas Utilities and Infrastructure
Quarterly Highlights
June 2018

		Three Months Ended June 30,				Six Months Ended June 30,
		2018	2017	% Inc.(Dec.)		2018	2017	% Inc.(Dec.)
Total Sales
	Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms) (1)	116,839,962	94,013,754	24.3	%	271,741,341	227,290,541	19.6	%
	Duke Energy Midwest LDC throughput (Mcf)	15,615,050	12,204,767	27.9	%	52,741,115	43,035,766	22.6	%

Average Number of Customers - Piedmont Natural Gas
	Residential	968,046	952,716	1.6	%	969,356	953,800	1.6	%
	Commercial	103,543	101,138	2.4	%	104,189	101,378	2.8	%
	Industrial	961	2,295	(58.1	%)	962	2,317	(58.5	%)
	Power Generation	17	26	(34.6	%)	17	26	(34.6	%)
	Total Average Number of Gas Customers - Piedmont Natural Gas	1,072,567	1,056,175	1.6	%	1,074,524	1,057,521	1.6	%

Average Number of Customers - Duke Energy Midwest
	Residential	486,015	481,716	0.9	%	487,434	482,905	0.9	%
	General Service	43,157	42,816	0.8	%	44,219	44,077	0.3	%
	Industrial	1,574	1,564	0.6	%	1,618	1,617	0.1	%
	Other	138	140	(1.4	%)	138	140	(1.4	%)
	Total Average Number of Gas Customers - Duke Energy Midwest	530,884	526,236	0.9	%	533,409	528,739	0.9	%

	(1) Piedmont has a margin decoupling mechanism in North Carolina and weather normalization mechanisms in South Carolina and Tennessee that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact.



Commercial Renewables
Quarterly Highlights
June 2018

		Three Months Ended June 30,				Six Months Ended June 30,
		2018	2017	% Inc.(Dec.)		2018	2017	% Inc.(Dec.)
	Renewable Plant Production, GWh	2,471	2,231	10.8	%	4,651	4,516	3.0	%
	Net Proportional MW Capacity in Operation	n/a	n/a			2,951	2,908	1.5	%

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