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

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News Release

Media Contact: Catherine Butler

24-Hour: 800.559.3853

Analyst Contact: Bryan Buckler

Office: 704.382.2640

Nov. 5, 2020

Duke Energy reports third quarter 2020 financial results


▪	Third quarter 2020 reported EPS of $1.74 and adjusted EPS of $1.87


▪	Completed $350 million of mitigation through 3Q 2020 and remain confident in achieving $400 million to $450 million by year-end


▪	$58 billion capital plan increases rate base growth to 6.5% through 2024, growing to 7% in second half of decade as the company accelerates clean energy investments


▪	Company narrows 2020 adjusted EPS guidance range to $5.05 to $5.20

CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced third quarter 2020 reported EPS of $1.74, prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted EPS of $1.87. This is compared to reported and adjusted EPS of $1.82 and $1.79, respectively, for the third quarter of 2019.

Adjusted EPS excludes the impact of certain items that are included in reported EPS. The difference between third quarter 2020 reported and adjusted EPS was due to exit obligations from gas pipeline investments and charges related to partial settlements in the Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases.

Higher third quarter 2020 adjusted results compared to 2019 were led by the Electric Utilities and Infrastructure and Commercial Renewables segments. Electric Utilities and Infrastructure benefited from rate case contributions and lower O&M expenses driven by significant mitigation efforts targeted at reducing the impact of mild weather and lower load results due to the COVID-19 pandemic. Commercial Renewables continued to grow primarily due to new renewable projects as the company continues to expand its clean energy portfolio. The Other segment also reported favorable results due to lower taxes and financing costs. Lower results at Gas Utilities and Infrastructure were due to the loss of Atlantic Coast Pipeline (ACP) earnings, partially offset by the impact of the Piedmont North Carolina rate case.

“We delivered strong results in the quarter, thanks to the exceptional work of our team in serving our customers and swiftly offsetting costs across our business,” said Lynn Good, Duke Energy chair, president and chief executive officer. “We have met the challenges of 2020 and will build on this success as we continue to innovate for the future. We are well-positioned to achieve results within our narrowed 2020 EPS guidance range of $5.05 to $5.20 through disciplined mitigation while investing in cleaner energy and a smarter, more resilient energy grid.”

Duke Energy News Release 2

Our strategy to reach net-zero carbon emissions by 2050 and net-zero methane emissions by 2030 also benefits our investment potential. Our updated five-year, $58 billion capital plan, backed by our strong balance sheet, underpins our confidence in growing at the top end of our long-term earnings growth rate of 4 to 6 percent off a preliminary 2021 base of approximately $5.15. Duke Energy is on track to continue generating sustainable value for our customers, communities and shareholders for decades to come.”

Business segment results

In addition to the following summary of third quarter 2020 business segment performance, comprehensive tables with detailed EPS drivers for the third quarter compared to prior year are provided at the end of this news release.

The discussion below of third quarter results includes both GAAP segment income (loss) and adjusted segment income (loss), 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 third quarter 2020 segment income of $1,381 million, compared to $1,385 million in the third quarter of 2019. Third quarter 2020 reported results included impacts of partial settlements from the Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases.

On an adjusted basis, Electric Utilities and Infrastructure recognized third quarter 2020 segment income of $1,412 million, compared to $1,366 million in the third quarter of 2019, an increase of $0.06 per share, excluding share dilution of $0.01 per share. Higher quarterly results were primarily due to lower O&M expenses (+$0.08 per share), contributions from rate cases (+$0.07 per share), lower tax expense (+$0.05 per share), wholesale formula rate adjustments (+$0.03 per share) and higher energy efficiency and grid modernization rider programs (+0.02 per share). Lower O&M is driven by lower employee-related expenses, lower storm costs, operational efficiencies and other mitigation efforts.

These results were partially offset by mild weather compared to the prior year quarter (-$0.08 per share), higher depreciation and amortization on a growing asset base (-$0.06 per share), lower retail margin (-$0.04 per share) and weak volumes due to the economic conditions caused by COVID-19 (-$0.01 per share).

Gas Utilities and Infrastructure

On a reported basis, Gas Utilities and Infrastructure recognized third quarter 2020 segment loss of $73 million, compared to segment income of $26 million in the third quarter of 2019. In addition to the drivers outlined below, lower third quarter 2020 results were due to costs for exit obligations of gas pipeline investments, primarily ACP. These charges were treated as special items and excluded from adjusted earnings.

Duke Energy News Release 3

On an adjusted basis, Gas Utilities and Infrastructure recognized third quarter 2020 adjusted segment loss of $8 million, compared to adjusted segment income of $26 million in the third quarter of 2019, a decrease of $0.05 per share. Lower quarterly results were driven by the loss of ACP earnings and higher income taxes (-$0.06 per share), partially offset by contributions from the Piedmont North Carolina rate case (+$0.01 per share).

Commercial Renewables

On a reported and adjusted basis, Commercial Renewables recognized third quarter 2020 segment income of $60 million, compared to $40 million in the third quarter of 2019. This represents an increase of $0.03 per share. Higher quarterly results were primarily driven by growth in new renewable projects (+$0.04 per share).

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 and adjusted basis, Other recognized a third quarter 2020 net loss of $103 million, compared to a net loss of $124 million in the third quarter of 2019. Higher quarterly results at Other were primarily due to lower income tax expense (+$0.03 per share), lower financing costs (+$0.01 per share) and unrealized investment gains on non-pension executive benefit trusts (+$0.01 per share).

Effective tax rate

Duke Energy's consolidated reported effective tax rate for the third quarter of 2020 was 7.8% compared to 12.4% in the third quarter of 2019. The decrease in the effective tax rate was primarily due to an increase in the amortization of excess deferred taxes.

The effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items for the third quarter of 2020 was 9% compared to the effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items of 12.2% in the third quarter of 2019. The decrease was primarily due to an increase in the amortization of excess deferred taxes.

The tables at the end of this news release present a reconciliation of the reported effective tax rate to the effective tax rate including noncontrolling interests and preferred dividends and excluding special items.

Earnings conference call for analysts

An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss third quarter 2020 financial results. The conference call will be hosted by Lynn Good, chair, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

Duke Energy News Release 4

The call can be accessed via the investors section (duke-energy.com/investors) of Duke Energy’s website or by dialing 888.204.4368 in the United States or 323.994.2093 outside the United States. The confirmation code is 5902971. 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, Nov. 15, 2020, by calling 888.203.1112 in the United States or 719.457.0820 outside the United States and using the code 5902971. 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 table presents a reconciliation of GAAP reported to adjusted EPS for third quarter 2020 financial results:



(In millions, except per share amounts)	After-Tax Amount			3Q 2020 EPS		3Q 2019 EPS
EPS, as reported				$	1.74	$	1.82
Adjustments to reported EPS:
Third Quarter 2020
Gas pipeline investments	$	69		0.09
Regulatory settlements	27			0.04
Third Quarter 2019
Impairment charge	(19		)			(0.03		)
Total adjustments				$	0.13	$	(0.03	)
EPS, adjusted				$	1.87	$	1.79

Non-GAAP financial measures

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted EPS and effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. The effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items is calculated using pretax earnings and income tax expense, both as adjusted for the impact of noncontrolling interests, preferred dividends and 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 uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors. The most directly comparable GAAP measures for adjusted earnings, adjusted EPS and effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items are Net Income Available to Duke Energy Corporation common stockholders (GAAP reported earnings), Basic earnings per share Available to Duke Energy Corporation common stockholders (GAAP reported earnings per share), and the reported effective tax rate, respectively.

Duke Energy News Release 5

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


•	Gas Pipeline Investments represents costs related to the cancellation of the ACP pipeline and additional exit costs related to Constitution.


•	Regulatory Settlements represents charges related to Duke Energy Carolinas and Duke Energy Progress partial settlements in the 2019 North Carolina rate cases.


•	Impairment Charges represents a reduction of a prior year impairment at Citrus County CC.

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 (loss) and other net loss. Segment income (loss) is defined as income (loss) from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income (loss) includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment income (loss) as a measure of historical and anticipated future segment performance. Adjusted segment income (loss) is a non-GAAP financial measure, as it is based upon segment income (loss) adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income (loss) 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 (loss) 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 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

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 29,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities and 2,300 megawatts through its nonregulated Duke Energy Renewables unit.

Duke Energy News Release 6

Duke Energy is transforming its customers’ experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit’s regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune’s 2020 “World’s Most Admired Companies” list and Forbes’ “America’s Best Employers” list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains 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.

Forward-Looking Information

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


◦	The impact of the COVID-19 pandemic;


◦	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 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;

Duke Energy News Release 7


◦	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 obtain the necessary permits and approvals and 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, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;


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


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


◦	The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions 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;


◦	The ability to obtain adequate insurance at acceptable costs;


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


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


◦	The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;


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


◦	The impact of 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, including enhancing existing technology systems.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim 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 September 30, 2020

(Dollars in millions, except per share amounts)



				Special Items
	Reported Earnings			Gas Pipeline Investments			Regulatory Settlements			Total Adjustments		Adjusted Earnings
SEGMENT INCOME (LOSS)
Electric Utilities and Infrastructure	$	1,381		$	4	A	$	27	C	$	31	$	1,412
Gas Utilities and Infrastructure	(73		)	65		B	—			65		(8		)
Commercial Renewables	60			—			—			—		60
Total Reportable Segment Income	1,368			69			27			96		1,464
Other	(103		)	—			—			—		(103		)
Net Income Available to Duke Energy Corporation Common Stockholders	$	1,265		$	69		$	27		$	96	$	1,361
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	1.74		$	0.09		$	0.04		$	0.13	$	1.87

Note: Earnings Per Share amounts are adjusted for accumulated dividends for Series B Preferred Stock of $0.02.

A - Net of $1 million tax benefit. $5 million included within Impairment charges related to gas pipeline interconnections on the Duke Energy Progress' Condensed Consolidated Statements of Operations.

B - Net of $20 million tax benefit.


•	$78 million recorded within Equity in (losses) earnings of unconsolidated affiliates related to exit obligations for gas pipeline investments on the Condensed Consolidated Statements of Operations.

• $7 million included within Impairment charges related to gas project materials on the Piedmont Condensed Consolidated Statements of Operations.

C - Net of $6 million tax benefit at Duke Energy Carolinas and $2 million tax benefit at Duke Energy Progress.


•	$19 million included within Impairment charges related to the Clemson University Combined Heat and Power plant and $8 million of shareholder contributions within Operations, maintenance and other on the Duke Energy Carolinas' Condensed Consolidated Statements of Operations.

• $8 million of shareholder contributions included within Operations, maintenance and other on the Duke Energy Progress' Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – 735 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Nine Months Ended September 30, 2020

(Dollars in millions, except per share amounts)



				Special Items
	Reported Earnings			Gas Pipeline Investments			Severance				Regulatory Settlements			Total Adjustments			Adjusted Earnings
SEGMENT INCOME (LOSS)
Electric Utilities and Infrastructure	$	2,839		$	4	A	$	—			$	27	D	$	31		$	2,870
Gas Utilities and Infrastructure	(1,400		)	1,691		B	—				—			1,691			291
Commercial Renewables	207			—			—				—			—			207
Total Reportable Segment Income	1,646			1,695			—				27			1,722			3,368
Other	(299		)	—			(75		)	C				(75		)	(374		)
Net Income Available to Duke Energy Corporation Common Stockholders	$	1,347		$	1,695		$	(75	)		$	27		$	1,647		$	2,994
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	1.85		$	2.30		$	(0.10	)		$	0.04		$	2.24		$	4.09

Note: Earnings Per Share amounts are adjusted for accumulated dividends for Series B Preferred Stock of $0.02.

A - Net of $1 million tax benefit. $5 million included within Impairment charges related to gas pipeline interconnections on the Duke Energy Progress' Condensed Consolidated Statements of Operations.

B - Net of $394 million tax benefit.


•	$2,078 million recorded within Equity in (losses) earnings of unconsolidated affiliates related to exit obligations for gas pipeline investments on the Condensed Consolidated Statements of Operations.


•	$7 million included within Impairment charges related to gas project materials on the Piedmont Condensed Consolidated Statements of Operations.

C - Net of $23 million tax expense. $98 million reversal of 2018 severance charges recorded within Operations, maintenance and other on the Condensed Consolidated Statements of Operations.

D - Net of $6 million tax benefit at Duke Energy Carolinas and $2 million tax benefit at Duke Energy Progress.


•	$19 million included within Impairment charges related to the Clemson University Combined Heat and Power Plant and $8 million of shareholder contributions within Operations, maintenance and other on the Duke Energy Carolinas' Condensed Consolidated Statements of Operations.


•	$8 million of shareholder contributions included within Operations, maintenance and other on the Duke Energy Progress' Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – 735 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Three Months Ended September 30, 2019

(Dollars in millions, except per share amounts)



				Special Item
	Reported Earnings			Impairment Charge				Total Adjustments			Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	1,385		$	(19	)	A	$	(19	)	$	1,366
Gas Utilities and Infrastructure	26			—				—			26
Commercial Renewables	40			—				—			40
Total Reportable Segment Income	1,451			(19		)		(19		)	1,432
Other	(124		)					—			(124		)
Net Income Available to Duke Energy Corporation Common Stockholders	$	1,327		$	(19	)		$	(19	)	$	1,308
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	1.82		$	(0.03	)		$	(0.03	)	$	1.79

A – Net of $6 million tax expense. $25 million reduction of a prior year impairment at Citrus County CC recorded within Impairment charges on Duke Energy Florida's Condensed Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – 729 million

DUKE ENERGY CORPORATION

REPORTED TO ADJUSTED EARNINGS RECONCILIATION

Nine Months Ended September 30, 2019

(Dollars in millions, except per share amounts)



				Special Item
	Reported Earnings			Impairment Charge				Total Adjustments			Adjusted Earnings
SEGMENT INCOME
Electric Utilities and Infrastructure	$	2,944		$	(19	)	A	$	(19	)	$	2,925
Gas Utilities and Infrastructure	292			—				—			292
Commercial Renewables	139			—				—			139
Total Reportable Segment Income	3,375			(19		)		(19		)	3,356
Other	(328		)	—				—			(328		)
Net Income Available to Duke Energy Corporation Common Stockholders	$	3,047		$	(19	)		$	(19	)	$	3,028
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS	$	4.18		$	(0.03	)		$	(0.03	)	$	4.15

Weighted Average Shares (reported and adjusted) – 728 million

DUKE ENERGY CORPORATION

EFFECTIVE TAX RECONCILIATION

September 2020

(Dollars in millions)



	Three Months Ended September 30, 2020					Nine Months Ended September 30, 2020
	Balance			Effective Tax Rate		Balance			Effective Tax Rate

Reported Income Before Income Taxes	$	1,339				$	1,158
Gas Pipeline Investments	90					2,090
Severance	—					(98		)
Regulatory Settlements	35					35
Noncontrolling Interests	70					208
Preferred Dividends	(39		)			(93		)
Pretax Income Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	1,495				$	3,300

Reported Income Tax Expense (Benefit)	$	105		7.8	%	$	(74	)	(6.4	)%
Gas Pipeline Investments	21					395
Severance	—					(23		)
Regulatory Settlements	8					8
Tax Expense Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	134		9.0	%	$	306		9.3	%



	Three Months Ended September 30, 2019					Nine Months Ended September 30, 2019
	Balance			Effective Tax Rate		Balance			Effective Tax Rate

Reported Income Before Income Taxes	$	1,511				$	3,388
Impairment Charge	(25		)			(25		)
Noncontrolling Interests	19					110
Preferred Dividends	(15		)			(27		)
Pretax Income Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	1,490				$	3,446

Reported Income Tax Expense	$	188		12.4	%	$	424		12.5	%
Impairment Charge	(6		)			(6		)
Tax Expense Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items	$	182		12.2	%	$	418		12.1	%

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2020 QTD vs. Prior Year




(Dollars per share)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables		Other			Consolidated
2019 QTD Reported Earnings Per Share	$	1.90		$	0.04		$	0.06	$	(0.18	)	$	1.82
Impairment Charge	(0.03		)	—			—		—			(0.03		)
2019 QTD Adjusted Earnings Per Share	$	1.87		$	0.04		$	0.06	$	(0.18	)	$	1.79
Weather	(0.08		)	—			—		—			(0.08		)
Volume	(0.01		)	—			—		—			(0.01		)
Riders and Other Retail Margin^(a)	(0.02		)	—			—		—			(0.02		)
Rate case impacts, net^(b)	0.07			0.01			—		—			0.08
Wholesale	0.03			—			—		—			0.03
Operations and maintenance, net of recoverables^(c)	0.08			—			—		—			0.08
Midstream Gas Pipelines^(d)	—			(0.04		)	—		—			(0.04		)
Duke Energy Renewables^(e)	—			—			0.03		—			0.03
Interest Expense	—			—			—		0.03			0.03
Depreciation and amortization^(f)	(0.06		)	—			—		—			(0.06		)
Preferred Dividends	—			—			—		(0.02		)	(0.02		)
Other^(g)	0.05			(0.02		)	—		0.04			0.07
Total variance before share count	$	0.06		$	(0.05	)	$	0.03	$	0.05		$	0.09
Change in share count	(0.01		)	—			—		—			(0.01		)
2020 QTD Adjusted Earnings Per Share	$	1.92		$	(0.01	)	$	0.09	$	(0.13	)	$	1.87
Gas Pipeline Investments	—			(0.09		)	—		—			(0.09		)
Regulatory Settlements	(0.04		)	—			—		—			(0.04		)
2020 QTD Reported Earnings Per Share	$	1.88		$	(0.10	)	$	0.09	$	(0.13	)	$	1.74

Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers except Commercial Renewables, which uses an effective rate. Weighted average shares outstanding increased from 729 million shares to 735 million.


(a)	Primarily driven by lower retail margin due to a prior year favorable true-up of purchased power and lower late payment fees, net of deferrals (-$0.04), partially offset by higher energy efficiency and grid modernization rider programs (+$0.02).

(b)

Electric Utilities and Infrastructure includes the net impact of the DEC and DEP North Carolina interim rates, effective August and September 2020 (+$0.03), DEI base rate increases, effective August 2020 (+$0.02), the DEF SBRA and multi-year rate plan (+0.01) and DEK base rate increases (+0.01). Gas Utilities and Infrastructure includes the net impact of the Piedmont North Carolina rate case, effective November 2019.


(c)	Includes lower employee-related expenses, lower storm costs, operational efficiencies and other savings due to mitigation efforts.


(d)	Primarily the loss of ACP earnings.


(e)	Primarily due to growth in new renewable projects.


(f)	Excludes rate case impacts.


(g)	Electric Utilities and Infrastructure and Other includes lower tax expense.

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2020 YTD vs. Prior Year




(Dollars per share)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables		Other			Consolidated
2019 YTD Reported Earnings Per Share	$	4.05		$	0.40		$	0.19	$	(0.46	)	$	4.18
Impairment Charge	(0.03		)	—			—		—			(0.03		)
2019 YTD Adjusted Earnings Per Share	$	4.02		$	0.40		$	0.19	$	(0.46	)	$	4.15
Weather	(0.21		)	—			—		—			(0.21		)
Volume	(0.02		)	—			—		—			(0.02		)
Riders and Other Retail Margin	(0.01		)	0.02			—		—			0.01
Rate case impacts, net^(a)	0.12			0.07			—		—			0.19
Wholesale	0.03			—			—		—			0.03
Operations and maintenance, net of recoverables^(b)	0.15			—			—		—			0.15
Midstream Gas Pipelines^(c)	—			(0.09		)	—		—			(0.09		)
Duke Energy Renewables^(d)	—			—			0.09		—			0.09
Interest Expense	(0.01		)	—			—		0.04			0.03
Depreciation and amortization^(e)	(0.17		)	—			—		—			(0.17		)
Preferred Dividends	—			—			—		(0.07		)	(0.07		)
Other^(f)	0.04			—			—		—			0.04
Total variance before share count	$	(0.08	)	$	—		$	0.09	$	(0.03	)	$	(0.02	)
Change in share count	(0.04		)	—			—		—			(0.04		)
2020 YTD Adjusted Earnings Per Share	$	3.90		$	0.40		$	0.28	$	(0.49	)	$	4.09
Gas Pipeline Investments	—			(2.30		)	—		—			(2.30		)
Severance	—			—			—		0.10			0.10
Regulatory Settlements	(0.04		)	—			—		—			(0.04		)
2020 YTD Reported Earnings Per Share	$	3.86		$	(1.90	)	$	0.28	$	(0.39	)	$	1.85

Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers except for Commercial Renewables, which uses an effective rate. Weighted average shares outstanding increased from 728 million shares to 735 million.

(a)

Electric Utilities and Infrastructure includes the net impact of the DEC and DEP South Carolina rate cases, effective June 2019 (+0.03), DEC and DEP North Carolina interim rates effective August and September 2020, respectively (+0.03), the DEF SBRA and multi-year rate plan (+0.03), DEI base rate increases, effective August 2020 (+0.02) and DEK base rate increases (+0.01). Gas Utilities and Infrastructure includes the net impact of the Piedmont North Carolina rate case, effective November 2019.


(b)	Primarily due to lower employee-related expenses, lower outage costs and customer delivery charges and other savings due to mitigation efforts, partially offset by increased COVID-19 expenses, net of deferrals. For the nine months ended September 30, 2020, the Duke Energy Registrants incurred -$0.09 of incremental COVID-19 O&M costs, the company has deferred +$0.06 of these incremental costs.


(c)	Primarily related to a favorable income tax adjustment for equity method investments in the prior year and the loss of ACP earnings.


(d)	Primarily due to new renewable projects.


(e)	Excludes rate case impacts.


(f)	Electric Utilities and Infrastructure includes lower income tax expense. Other includes lower income tax expense which was offset primarily by unrealized investment losses on non-pension executive benefit trusts and lower interest income.



September 2020
QUARTERLY HIGHLIGHTS
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions, except per share amounts and where noted)	2020			2019			2020			2019
Earnings Per Share – Basic and Diluted
Net income per share available to Duke Energy Corporation common stockholders
Basic and Diluted	$	1.74		$	1.82		$	1.85		$	4.18
Weighted average shares outstanding
Basic	735			729			735			728
Diluted	735			729			735			728
INCOME (LOSS) BY BUSINESS SEGMENT
Electric Utilities and Infrastructure^(a)	$	1,381		$	1,385		$	2,839		$	2,944
Gas Utilities and Infrastructure^(b)	(73		)	26			(1,400		)	292
Commercial Renewables	60			40			207			139
Total Reportable Segment Income	1,368			1,451			1,646			3,375
Other^(c)	(103		)	(124		)	(299		)	(328		)
Net Income Available to Duke Energy Corporation common stockholders	$	1,265		$	1,327		$	1,347		$	3,047
CAPITALIZATION
Total Common Equity (%)							42		%	44		%
Total Debt (%)							58		%	56		%

Total Debt							$	64,143		$	60,383
Book Value Per Share							$	64.26		$	65.03
Actual Shares Outstanding							736			729
CAPITAL AND INVESTMENT EXPENDITURES
Electric Utilities and Infrastructure	$	1,809		$	1,906		$	5,637		$	6,092
Gas Utilities and Infrastructure	329			382			933			1,129
Commercial Renewables	197			359			894			932
Other	82			81			220			202
Total Capital and Investment Expenditures	$	2,417		$	2,728		$	7,684		$	8,355

(a)

Includes $35 million (after tax $27 million) of costs related to regulatory settlements for Duke Energy Carolinas and Duke Energy Progress for the three and nine months ended September 30, 2020, and a $5 million (after tax $4 million) impairment charge related to gas pipeline interconnections for the three and nine months ended September 30, 2020. Additionally, EUI includes a $25 million (after tax $19 million) reduction of a prior year impairment at Citrus County CC for the three and nine months ended September 30, 2019.


(b)	Includes costs related to exit obligations for gas pipeline investments of $85 million (after tax $65 million) for the three months ended September 30, 2020, and $2.1 billion (after tax $1.7 billion) for the nine months ended September 30, 2020.


(c)	Includes a $98 million (after tax $75 million) reversal of 2018 severance costs due to the partial settlement of the Duke Energy Carolina's 2019 North Carolina rate case for the nine months ended September 30, 2020.



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,
	2020			2019			2020			2019
Operating Revenues
Regulated electric	$	6,315		$	6,515		$	16,402		$	17,223
Regulated natural gas	214			223			1,115			1,231
Nonregulated electric and other	192			202			574			522
Total operating revenues	6,721			6,940			18,091			18,976
Operating Expenses
Fuel used in electric generation and purchased power	1,849			1,978			4,645			5,228
Cost of natural gas	41			48			299			451
Operation, maintenance and other	1,450			1,484			4,142			4,337
Depreciation and amortization	1,217			1,186			3,497			3,364
Property and other taxes	324			335			1,003			1,012
Impairment charges	28			(20		)	36			(16		)
Total operating expenses	4,909			5,011			13,622			14,376
Gains on Sales of Other Assets and Other, net	2			—			10			—
Operating Income	1,814			1,929			4,479			4,600
Other Income and Expenses
Equity in (losses) earnings of unconsolidated affiliates	(80		)	50			(2,004		)	137
Other income and expenses, net	127			104			310			308
Total other income and expenses	47			154			(1,694		)	445
Interest Expense	522			572			1,627			1,657
Income Before Income Taxes	1,339			1,511			1,158			3,388
Income Tax Expense (Benefit)	105			188			(74		)	424
Net Income	1,234			1,323			1,232			2,964
Add: Net Loss Attributable to Noncontrolling Interests	70			19			208			110
Net Income Attributable to Duke Energy Corporation	1,304			1,342			1,440			3,074
Less: Preferred Dividends	39			15			93			27
Net Income Available to Duke Energy Corporation Common Stockholders	$	1,265		$	1,327		$	1,347		$	3,047

Earnings Per Share – Basic and Diluted
Basic and Diluted	$	1.74		$	1.82		$	1.85		$	4.18
Weighted average shares outstanding
Basic and Diluted	735			729			735			728

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions)	September 30, 2020			December 31, 2019
ASSETS
Current Assets
Cash and cash equivalents	$	308		$	311
Receivables (net of allowance for doubtful accounts of $27 at 2020 and $22 at 2019)	719			1,066
Receivables of VIEs (net of allowance for doubtful accounts of $106 at 2020 and $54 at 2019)	2,320			1,994
Inventory	3,190			3,232
Regulatory assets (includes $53 at 2020 and $52 at 2019 related to VIEs)	1,637			1,796
Other (includes $335 at 2020 and $242 at 2019 related to VIEs)	505			764
Total current assets	8,679			9,163
Property, Plant and Equipment
Cost	153,916			147,654
Accumulated depreciation and amortization	(48,185		)	(45,773		)
Generation facilities to be retired, net	29			246
Net property, plant and equipment	105,760			102,127
Other Noncurrent Assets
Goodwill	19,303			19,303
Regulatory assets (includes $951 at 2020 and $989 at 2019 related to VIEs)	13,264			13,222
Nuclear decommissioning trust funds	8,363			8,140
Operating lease right-of-use assets, net	1,577			1,658
Investments in equity method unconsolidated affiliates	924			1,936
Other (includes $90 at 2020 and $110 at 2019 related to VIEs)	3,539			3,289
Total other noncurrent assets	46,970			47,548
Total Assets	$	161,409		$	158,838
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	2,486		$	3,487
Notes payable and commercial paper	3,425			3,135
Taxes accrued	768			392
Interest accrued	556			565
Current maturities of long-term debt (includes $466 at 2020 and $216 at 2019 related to VIEs)	4,669			3,141
Asset retirement obligations	742			881
Regulatory liabilities	1,218			784
Other	2,829			2,367
Total current liabilities	16,693			14,752
Long-Term Debt (includes $3,628 at 2020 and $3,997 at 2019 related to VIEs)	56,049			54,985
Other Noncurrent Liabilities
Deferred income taxes	9,170			8,878
Asset retirement obligations	12,912			12,437
Regulatory liabilities	14,546			15,264
Operating lease liabilities	1,379			1,432
Accrued pension and other post-retirement benefit costs	903			934
Investment tax credits	689			624
Other (includes $342 at 2020 and $228 at 2019 related to VIEs)	1,773			1,581
Total other noncurrent liabilities	41,372			41,150
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2020 and 2019	973			973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2020 and 2019	989			989
Common stock, $0.001 par value, 2 billion shares authorized; 736 million shares outstanding at 2020 and 733 million shares outstanding at 2019	1			1
Additional paid-in capital	41,046			40,881
Retained earnings	3,260			4,108
Accumulated other comprehensive loss	(263		)	(130		)
Total Duke Energy Corporation stockholders' equity	46,006			46,822
Noncontrolling interests	1,289			1,129
Total equity	47,295			47,951
Total Liabilities and Equity	$	161,409		$	158,838



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

	Nine Months Ended September 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,232		$	2,964
Adjustments to reconcile net income to net cash provided by operating activities	5,534			2,673
Net cash provided by operating activities	6,766			5,637

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	(7,964		)	(8,633		)

CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities	1,225			2,987

Net increase (decrease) in cash, cash equivalents and restricted cash	27			(9		)
Cash, cash equivalents and restricted cash at beginning of period	573			591
Cash, cash equivalents and restricted cash at end of period	$	600		$	582

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Three Months Ended September 30, 2020
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	6,379		$	—		$	—		$	—		$	(64	)	$	6,315
Regulated natural gas	—			238			—			—			(24		)	214
Nonregulated electric and other	—			3			126			24			39			192
Total operating revenues	6,379			241			126			24			(49		)	6,721
Operating Expenses
Fuel used in electric generation and purchased power	1,869			—			—			—			(20		)	1,849
Cost of natural gas	—			41			—			—			—			41
Operation, maintenance and other	1,326			103			72			(21		)	(30		)	1,450
Depreciation and amortization	1,053			65			52			54			(7		)	1,217
Property and other taxes	286			26			8			4			—			324
Impairment charges	20			7			—			—			1			28
Total operating expenses	4,554			242			132			37			(56		)	4,909
Gains on Sales of Other Assets and Other, net	3			—			—			—			(1		)	2
Operating Income (Loss)	1,828			(1		)	(6		)	(13		)	6			1,814
Other Income and Expenses
Equity in (losses) earnings of unconsolidated affiliates	(8		)	(71		)	(3		)	3			(1		)	(80		)
Other income and expenses, net	75			16			2			40			(6		)	127
Total Other Income and Expenses	67			(55		)	(1		)	43			(7		)	47
Interest Expense	308			35			18			160			1			522
Income (Loss) Before Income Taxes	1,587			(91		)	(25		)	(130		)	(2		)	1,339
Income Tax Expense (Benefit)	206			(18		)	(15		)	(66		)	(2		)	105
Net Income (Loss)	1,381			(73		)	(10		)	(64		)	—			1,234
Add: Net Loss Attributable to Noncontrolling Interest	—			—			70			—			—			70
Net Income (Loss) Attributable to Duke Energy Corporation	1,381			(73		)	60			(64		)	—			1,304
Less: Preferred Dividends	—			—			—			39			—			39
Segment Income (Loss) / Net Income Available to Duke Energy Corporation Common Stockholders	$	1,381		$	(73	)	$	60		$	(103	)	$	—		$	1,265
Special Items	31			65			—			—			—			96
Adjusted Earnings^(a)	$	1,412		$	(8	)	$	60		$	(103	)	$	—		$	1,361


(a)	See Reported to Adjusted Earnings Reconciliation for a detailed reconciliation of Segment Income (Loss) to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Nine Months Ended September 30, 2020
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	16,596		$	—		$	—		$	—		$	(194	)	$	16,402
Regulated natural gas	—			1,186			—			—			(71		)	1,115
Nonregulated electric and other	—			8			378			73			115			574
Total operating revenues	16,596			1,194			378			73			(150		)	18,091
Operating Expenses
Fuel used in electric generation and purchased power	4,703			—			—			—			(58		)	4,645
Cost of natural gas	—			300			—			—			(1		)	299
Operation, maintenance and other	3,891			312			204			(181		)	(84		)	4,142
Depreciation and amortization	3,023			193			148			154			(21		)	3,497
Property and other taxes	885			82			24			12			—			1,003
Impairment charges	23			7			6			—			—			36
Total operating expenses	12,525			894			382			(15		)	(164		)	13,622
Gains on Sales of Other Assets and Other, net	11			—			—			—			(1		)	10
Operating Income	4,082			300			(4		)	88			13			4,479
Other Income and Expenses
Equity in (losses) earnings of unconsolidated affiliates	(3		)	(2,004		)	(5		)	9			(1		)	(2,004		)
Other income and expenses, net	244			42			5			46			(27		)	310
Total Other Income and Expenses	241			(1,962		)	—			55			(28		)	(1,694		)
Interest Expense	991			103			49			498			(14		)	1,627
Income (Loss) Before Income Taxes	3,332			(1,765		)	(53		)	(355		)	(1		)	1,158
Income Tax Expense (Benefit)	493			(365		)	(52		)	(149		)	(1		)	(74		)
Net Income (Loss)	2,839			(1,400		)	(1		)	(206		)	—			1,232
Add: Net Loss Attributable to Noncontrolling Interest	—			—			208			—			—			208
Net Income (Loss) Attributable to Duke Energy Corporation	2,839			(1,400		)	207			(206		)	—			1,440
Less: Preferred Dividends	—			—			—			93			—			93
Segment Income (Loss) / Net Income Available to Duke Energy Corporation Common Stockholders	$	2,839		$	(1,400	)	$	207		$	(299	)	$	—		$	1,347
Special Items	31			1,691			—			(75		)	—			1,647
Adjusted Earnings^(a)	$	2,870		$	291		$	207		$	(374	)	$	—		$	2,994


(a)	See Reported to Adjusted Earnings Reconciliation for a detailed reconciliation of Segment Income (Loss) to Adjusted Earnings.

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Three Months Ended September 30, 2019
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	6,577		$	—		$	—		$	—		$	(62	)	$	6,515
Regulated natural gas	—			246			—			—			(23		)	223
Nonregulated electric and other	—			3			138			25			36			202
Total operating revenues	6,577			249			138			25			(49		)	6,940
Operating Expenses
Fuel used in electric generation and purchased power	1,994			—			—			—			(16		)	1,978
Cost of natural gas	—			48			—			—			—			48
Operation, maintenance and other	1,357			108			81			(30		)	(32		)	1,484
Depreciation and amortization	1,026			64			43			53			—			1,186
Property and other taxes	301			24			6			4			—			335
Impairment charges	(20		)	—			—			—			—			(20		)
Total operating expenses	4,658			244			130			27			(48		)	5,011
Operating Income (Loss)	1,919			5			8			(2		)	(1		)	1,929
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	5			37			(2		)	10			—			50
Other income and expenses, net	82			5			15			14			(12		)	104
Total Other Income and Expenses	87			42			13			24			(12		)	154
Interest Expense	336			29			35			185			(13		)	572
Income (Loss) Before Income Taxes	1,670			18			(14		)	(163		)	—			1,511
Income Tax Expense (Benefit)	285			(8		)	(35		)	(54		)	—			188
Net Income (Loss)	1,385			26			21			(109		)	—			1,323
Add: Net Loss Attributable to Noncontrolling Interest	—			—			19			—			—			19
Net Income (Loss) Attributable to Duke Energy Corporation	1,385			26			40			(109		)	—			1,342
Less: Preferred Dividends	—			—			—			15			—			15
Segment Income / Other Net Loss / Net Income Available to Duke Energy Corporation Common Stockholders	$	1,385		$	26		$	40		$	(124	)	$	—		$	1,327
Special Item	(19		)	—			—			—			—			(19		)
Adjusted Earnings^(a)	$	1,366		$	26		$	40		$	(124	)	$	—		$	1,308


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

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)



	Nine Months Ended September 30, 2019
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure		Commercial Renewables			Other			Eliminations/Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	17,381		$	—	$	—		$	—		$	(158	)	$	17,223
Regulated natural gas	—			1,302		—			—			(71		)	1,231
Nonregulated electric and other	—			9		362			71			80			522
Total operating revenues	17,381			1,311		362			71			(149		)	18,976
Operating Expenses
Fuel used in electric generation and purchased power	5,286			—		—			—			(58		)	5,228
Cost of natural gas	—			451		—			—			—			451
Operation, maintenance and other	3,957			325		211			(69		)	(87		)	4,337
Depreciation and amortization	2,924			192		123			125			—			3,364
Property and other taxes	899			84		18			10			1			1,012
Impairment charges	(16		)	—		—			—			—			(16		)
Total operating expenses	13,050			1,052		352			66			(144		)	14,376
Operating Income	4,331			259		10			5			(5		)	4,600
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates	11			101		(4		)	28			1			137
Other income and expenses, net	256			18		7			70			(43		)	308
Total Other Income and Expenses	267			119		3			98			(42		)	445
Interest Expense	1,004			86		78			536			(47		)	1,657
Income (Loss) Before Income Taxes	3,594			292		(65		)	(433		)	—			3,388
Income Tax Expense (Benefit)	650			—		(94		)	(132		)	—			424
Net Income (Loss)	2,944			292		29			(301		)	—			2,964
Add: Net Loss Attributable to Noncontrolling Interest	—			—		110			—			—			110
Net Income (Loss) Attributable to Duke Energy Corporation	2,944			292		139			(301		)	—			3,074
Less: Preferred Dividends	—			—		—			27			—			27
Segment Income / Other Net Loss / Net Income Available to Duke Energy Corporation Common Stockholders	$	2,944		$	292	$	139		$	(328	)	$	—		$	3,047
Special Item	(19		)	—		—			—			—			(19		)
Adjusted Earnings^(a)	$	2,925		$	292	$	139		$	(328	)	$	—		$	3,028


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

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)



	September 30, 2020
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/ Adjustments			Duke Energy
Current Assets
Cash and cash equivalents	$	107		$	2		$	3		$	196		$	—		$	308
Receivables, net	501			102			105			11			—			719
Receivables of variable interest entities, net	2,320			—			—			—			—			2,320
Receivables from affiliated companies	102			15			599			733			(1,449		)	—
Notes receivable from affiliated companies	46			—			—			740			(786		)	—
Inventory	2,971			84			101			35			(1		)	3,190
Regulatory assets	1,420			120			—			97			—			1,637
Other	150			50			208			114			(17		)	505
Total current assets	7,617			373			1,016			1,926			(2,253		)	8,679
Property, Plant and Equipment
Cost	132,668			12,424			6,536			2,389			(101		)	153,916
Accumulated depreciation and amortization	(43,100		)	(2,602		)	(1,177		)	(1,307		)	1			(48,185		)
Generation facilities to be retired, net	29			—			—			—			—			29
Net property, plant and equipment	89,597			9,822			5,359			1,082			(100		)	105,760
Other Noncurrent Assets
Goodwill	17,379			1,924			—			—			—			19,303
Regulatory assets	12,090			679			—			495			—			13,264
Nuclear decommissioning trust funds	8,363			—			—			—			—			8,363
Operating lease right-of-use assets, net	1,136			21			123			297			—			1,577
Investments in equity method unconsolidated affiliates	109			214			491			111			(1		)	924
Investment in consolidated subsidiaries	540			6			2			63,058			(63,606		)	—
Other	2,133			306			151			1,583			(634		)	3,539
Total other noncurrent assets	41,750			3,150			767			65,544			(64,241		)	46,970
Total Assets	138,964			13,345			7,142			68,552			(66,594		)	161,409
Segment reclassifications, intercompany balances and other	(822		)	(2		)	(601		)	(65,165		)	66,590			—
Segment Assets	$	138,142		$	13,343		$	6,541		$	3,387		$	(4	)	$	161,409

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY

(Unaudited)



	September 30, 2020
(In millions)	Electric Utilities and Infrastructure			Gas Utilities and Infrastructure			Commercial Renewables			Other			Eliminations/ Adjustments			Duke Energy
Current Liabilities
Accounts payable	$	1,754		$	212		$	117		$	404		$	(1	)	$	2,486
Accounts payable to affiliated companies	466			93			263			573			(1,395		)	—
Notes payable to affiliated companies	363			354			50			27			(794		)	—
Notes payable and commercial paper	—			—			59			3,365			1			3,425
Taxes accrued	1,136			(360		)	321			(329		)	—			768
Interest accrued	371			45			1			139			—			556
Current maturities of long-term debt	2,074			189			161			2,249			(4		)	4,669
Asset retirement obligations	742			—			—			—			—			742
Regulatory liabilities	1,089			126			—			2			1			1,218
Other	1,415			990			74			415			(65		)	2,829
Total current liabilities	9,410			1,649			1,046			6,845			(2,257		)	16,693
Long-Term Debt	35,059			3,289			1,453			16,345			(97		)	56,049
Long-Term Debt Payable to Affiliated Companies	618			7			9			—			(634		)	—
Other Noncurrent Liabilities
Deferred income taxes	10,472			1,070			(619		)	(1,753		)	—			9,170
Asset retirement obligations	12,704			56			152			—			—			12,912
Regulatory liabilities	13,050			1,473			—			23			—			14,546
Operating lease liabilities	1,035			20			127			197			—			1,379
Accrued pension and other post-retirement benefit costs	578			32			1			291			1			903
Investment tax credits	687			2			—			—			—			689
Other	877			195			368			521			(188		)	1,773
Total other noncurrent liabilities	39,403			2,848			29			(721		)	(187		)	41,372
Equity
Total Duke Energy Corporation stockholders' equity	54,474			5,552			3,319			46,080			(63,419		)	46,006
Noncontrolling interests	—			—			1,286			3			—			1,289
Total equity	54,474			5,552			4,605			46,083			(63,419		)	47,295
Total Liabilities and Equity	138,964			13,345			7,142			68,552			(66,594		)	161,409
Segment reclassifications, intercompany balances and other	(822		)	(2		)	(601		)	(65,165		)	66,590			—
Segment Liabilities and Equity	$	138,142		$	13,343		$	6,541		$	3,387		$	(4	)	$	161,409

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Three Months Ended September 30, 2020
(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	$	2,058	$	1,626	$	1,567		$	394	$	761	$	(27	)	$	6,379
Operating Expenses
Fuel used in electric generation and purchased power	497		537		551			94		222		(32		)	1,869
Operation, maintenance and other	394		344		289			84		205		10			1,326
Depreciation and amortization	372		289		183			53		149		7			1,053
Property and other taxes	57		38		110			71		15		(5		)	286
Impairment charges	20		5		(4		)	—		—		(1		)	20
Total operating expenses	1,340		1,213		1,129			302		591		(21		)	4,554
Gains on Sales of Other Assets and Other, net	1		3		—			—		—		(1		)	3
Operating Income	719		416		438			92		170		(7		)	1,828
Other Income and Expenses, net^(b)	42		11		11			3		9		(9		)	67
Interest Expense	122		66		81			22		29		(12		)	308
Income Before Income Taxes	639		361		368			73		150		(4		)	1,587
Income Tax Expense	78		10		79			10		29		—			206
Segment Income	$	561	$	351	$	289		$	63	$	121	$	(4	)	$	1,381


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


(b)	Includes an equity component of allowance for funds used during construction of $17 million for Duke Energy Carolinas, $3 million for Duke Energy Progress, $3 million for Duke Energy Florida, $1 million for Duke Energy Ohio and $7 million for Duke Energy Indiana.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Nine Months Ended September 30, 2020
(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	$	5,416	$	4,207	$	3,897		$	1,070	$	2,070	$	(64	)	$	16,596
Operating Expenses
Fuel used in electric generation and purchased power	1,326		1,337		1,291			258		577		(86		)	4,703
Operation, maintenance and other	1,266		992		799			250		559		25			3,891
Depreciation and amortization	1,090		833		523			149		415		13			3,023
Property and other taxes	213		129		290			199		57		(3		)	885
Impairment charges	22		5		(4		)	—		—		—			23
Total operating expenses	3,917		3,296		2,899			856		1,608		(51		)	12,525
Gains on Sales of Other Assets and Other, net	1		8		—			—		—		2			11
Operating Income	1,500		919		998			214		462		(11		)	4,082
Other Income and Expenses, net^(b)	128		52		36			7		28		(10		)	241
Interest Expense	370		203		245			62		114		(3		)	991
Income Before Income Taxes	1,258		768		789			159		376		(18		)	3,332
Income Tax Expense	167		73		161			22		73		(3		)	493
Segment Income	$	1,091	$	695	$	628		$	137	$	303	$	(15	)	$	2,839


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


(b)	Includes an equity component of allowance for funds used during construction of $46 million for Duke Energy Carolinas, $22 million for Duke Energy Progress, $8 million for Duke Energy Florida, $2 million for Duke Energy Ohio and $18 million for Duke Energy Indiana.

ELECTRIC UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)



	September 30, 2020
(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	$	23		$	43		$	19		$	8		$	15		$	(1	)	$	107
Receivables, net	177			103			91			81			48			1			501
Receivables of variable interest entities, net	770			559			512			—			—			479			2,320
Receivables from affiliated companies	64			45			3			74			84			(168		)	102
Notes receivable from affiliated companies	65			—			—			—			—			(19		)	46
Inventory	992			910			468			93			507			1			2,971
Regulatory assets	495			472			303			19			119			12			1,420
Other	44			54			25			(2		)	30			(1		)	150
Total current assets	2,630			2,186			1,421			273			803			304			7,617
Property, Plant and Equipment
Cost	50,622			35,479			21,662			7,257			17,223			425			132,668
Accumulated depreciation and amortization	(17,406		)	(12,548		)	(5,452		)	(2,099		)	(5,579		)	(16		)	(43,100		)
Generation facilities to be retired, net	—			29			—			—			—			—			29
Net property, plant and equipment	33,216			22,960			16,210			5,158			11,644			409			89,597
Other Noncurrent Assets
Goodwill	—			—			—			596			—			16,783			17,379
Regulatory assets	3,400			4,449			1,821			356			1,184			880			12,090
Nuclear decommissioning trust funds	4,506			3,189			668			—			—			—			8,363
Operating lease right-of-use assets, net	117			357			354			20			55			233			1,136
Investments in equity method unconsolidated affiliates	—			—			1			—			—			108			109
Investment in consolidated subsidiaries	49			14			2			240			1			234			540
Other	1,179			720			339			49			228			(382		)	2,133
Total other noncurrent assets	9,251			8,729			3,185			1,261			1,468			17,856			41,750
Total Assets	45,097			33,875			20,816			6,692			13,915			18,569			138,964
Segment reclassifications, intercompany balances and other	(215		)	(93		)	(73		)	(244		)	(64		)	(133		)	(822		)
Reportable Segment Assets	$	44,882		$	33,782		$	20,743		$	6,448		$	13,851		$	18,436		$	138,142


(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)



	September 30, 2020
(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	$	583		$	372		$	424		$	203		$	172		$	—		$	1,754
Accounts payable to affiliated companies	155			144			77			16			65			9			466
Notes payable to affiliated companies	—			167			66			58			83			(11		)	363
Taxes accrued	400			208			261			169			111			(13		)	1,136
Interest accrued	130			80			73			24			63			1			371
Current maturities of long-term debt	751			603			623			(26		)	13			110			2,074
Asset retirement obligations	267			297			1			7			170			—			742
Regulatory liabilities	430			436			109			39			76			(1		)	1,089
Other	487			389			357			67			97			18			1,415
Total current liabilities	3,203			2,696			1,991			557			850			113			9,410
Long-Term Debt	11,497			8,605			7,294			2,515			3,941			1,207			35,059
Long-Term Debt Payable to Affiliated Companies	300			150			—			18			150			—			618
Other Noncurrent Liabilities
Deferred income taxes	3,962			2,438			2,176			686			1,180			30			10,472
Asset retirement obligations	5,507			5,503			555			45			1,044			50			12,704
Regulatory liabilities	6,243			4,140			669			366			1,648			(16		)	13,050
Operating lease liabilities	102			329			308			20			53			223			1,035
Accrued pension and other post-retirement benefit costs	76			236			207			79			151			(171		)	578
Investment tax credits	237			133			146			3			168			—			687
Other	644			89			59			66			55			(36		)	877
Total other noncurrent liabilities	16,771			12,868			4,120			1,265			4,299			80			39,403
Equity	13,326			9,556			7,411			2,337			4,675			17,169			54,474
Total Liabilities and Equity	45,097			33,875			20,816			6,692			13,915			18,569			138,964
Segment reclassifications, intercompany balances and other	(215		)	(93		)	(73		)	(244		)	(64		)	(133		)	(822		)
Reportable Segment Liabilities and Equity	$	44,882		$	33,782		$	20,743		$	6,448		$	13,851		$	18,436		$	138,142


(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 September 30, 2020
(In millions)	Duke Energy Ohio^(a)		Piedmont Natural Gas LDC			Midstream Pipelines and Storage^(b)			Eliminations/ Adjustments			Gas Utilities and Infrastructure
Operating Revenues	$	79	$	162		$	—		$	—		$	241
Operating Expenses
Cost of natural gas	3		39			—			(1		)	41
Operation, maintenance and other	28		73			1			1			103
Depreciation and amortization	20		45			—			—			65
Property and other taxes	12		13			—			1			26
Impairment charges	—		7			—			—			7
Total operating expenses	63		177			1			1			242
Operating Income (Loss)	16		(15		)	(1		)	(1		)	(1		)
Other Income and Expenses
Equity in losses of unconsolidated affiliates	—		—			(71		)	—			(71		)
Other income and expenses, net	1		13			—			2			16
Total other income and expenses	1		13			(71		)	2			(55		)
Interest Expense	3		29			—			3			35
Income (Loss) Before Income Taxes	14		(31		)	(72		)	(2		)	(91		)
Income Tax Expense (Benefit)	5		(5		)	(16		)	(2		)	(18		)
Segment Loss	$	9	$	(26	)	$	(56	)	$	—		$	(73	)


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


(b)	Includes losses from the cancellation of the ACP pipeline and earnings from investments in Sabal Trail and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING SEGMENT INCOME

(Unaudited)



	Nine Months Ended September 30, 2020
(In millions)	Duke Energy Ohio^(a)		Piedmont Natural Gas LDC		Midstream Pipelines and Storage^(b)			Eliminations/ Adjustments			Gas Utilities and Infrastructure
Operating Revenues	$	324	$	871	$	—		$	(1	)	$	1,194
Operating Expenses
Cost of natural gas	46		254		—			—			300
Operation, maintenance and other	77		231		4			—			312
Depreciation and amortization	60		133		—			—			193
Property and other taxes	45		37		—			—			82
Impairment charges	—		7		—			—			7
Total operating expenses	228		662		4			—			894
Operating Income (Loss)	96		209		(4		)	(1		)	300
Other Income and Expenses
Equity in losses of unconsolidated affiliates	—		—		(2,004		)	—			(2,004		)
Other income and expenses, net	4		37		—			1			42
Total other income and expenses	4		37		(2,004		)	1			(1,962		)
Interest Expense	13		89		—			1			103
Income (Loss) Before Income Taxes	87		157		(2,008		)	(1		)	(1,765		)
Income Tax Expense (Benefit)	19		5		(388		)	(1		)	(365		)
Segment Loss	$	68	$	152	$	(1,620	)	$	—		$	(1,400	)


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


(b)	Includes losses from the cancellation of the ACP pipeline and earnings from investments in Sabal Trail and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

GAS UTILITIES AND INFRASTRUCTURE

CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS

(Unaudited)



	September 30, 2020
(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		$	—		$	—		$	—		$	2
Receivables, net	8			93			—			1			102
Receivables from affiliated companies	4			63			—			(52		)	15
Inventory	37			47			—			—			84
Regulatory assets	1			119			—			—			120
Other	—			50			1			(1		)	50
Total current assets	52			372			1			(52		)	373
Property, Plant and Equipment
Cost	3,547			8,877			—			—			12,424
Accumulated depreciation and amortization	(889		)	(1,713		)	—			—			(2,602		)
Net property, plant and equipment	2,658			7,164			—			—			9,822
Other Noncurrent Assets
Goodwill	324			49			—			1,551			1,924
Regulatory assets	256			287			—			136			679
Operating lease right-of-use assets, net	—			21			—			—			21
Investments in equity method unconsolidated affiliates	—			—			209			5			214
Investment in consolidated subsidiaries	—			—			—			6			6
Other	10			279			15			2			306
Total other noncurrent assets	590			636			224			1,700			3,150
Total Assets	3,300			8,172			225			1,648			13,345
Segment reclassifications, intercompany balances and other	(3		)	(45		)	(15		)	61			(2		)
Reportable Segment Assets	$	3,297		$	8,127		$	210		$	1,709		$	13,343


(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)



	September 30, 2020
(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	$	35		$	177		$	—		$	—		$	212
Accounts payable to affiliated companies	19			47			79			(52		)	93
Notes payable to affiliated companies	28			327			—			(1		)	354
Taxes accrued	15			31			(406		)	—			(360		)
Interest accrued	9			37			—			(1		)	45
Current maturities of long-term debt	26			160			—			3			189
Regulatory liabilities	25			101			—			—			126
Other	4			59			927			—			990
Total current liabilities	161			939			600			(51		)	1,649
Long-Term Debt	549			2,620			—			120			3,289
Long-Term Debt Payable to Affiliated Companies	7			—			—			—			7
Other Noncurrent Liabilities
Deferred income taxes	289			759			20			2			1,070
Asset retirement obligations	39			17			—			—			56
Regulatory liabilities	388			1,070			—			15			1,473
Operating lease liabilities	—			20			—			—			20
Accrued pension and other post-retirement benefit costs	25			7			—			—			32
Investment tax credits	2			—			—			—			2
Other	30			145			19			1			195
Total other noncurrent liabilities	773			2,018			39			18			2,848
Equity	1,810			2,595			(414		)	1,561			5,552
Total Liabilities and Equity	3,300			8,172			225			1,648			13,345
Segment reclassifications, intercompany balances and other	(3		)	(45		)	(15		)	61			(2		)
Reportable Segment Liabilities and Equity	$	3,297		$	8,127		$	210		$	1,709		$	13,343


(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
September 2020

		Three Months Ended September 30,							Nine Months Ended September 30,
		2020		2019	% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019	% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
Gigawatt-hour (GWh) Sales^(a)
	Residential	26,157		25,304	3.4	%	4.1	%	65,817		66,345	(0.8	%)	2.7	%
	General Service	21,113		22,396	(5.7	%)	(5.3	%)	55,263		59,328	(6.9	%)	(5.9	%)
	Industrial	12,662		13,669	(7.4	%)	(7.5	%)	35,583		38,480	(7.5	%)	(7.5	%)
	Other Energy Sales	130		146	(11.0	%)	n/a		421		436	(3.4	%)	n/a
	Unbilled Sales	(1,171	)	110	(1,164.5	%)	n/a		(219	)	461	(147.5	%)	n/a
	Total Retail Sales	58,891		61,625	(4.4	%)	(2.1	)%	156,865		165,050	(5.0	%)	(2.8	%)
	Wholesale and Other	11,984		12,306	(2.6	%)			29,687		31,799	(6.6	%)
	Total Consolidated Electric Sales – Electric Utilities and Infrastructure	70,875		73,931	(4.1	%)			186,552		196,849	(5.2	%)

Average Number of Customers (Electric)
	Residential	6,883,872		6,747,169	2.0	%			6,848,397		6,727,714	1.8	%
	General Service	1,005,196		993,468	1.2	%			1,000,760		990,882	1.0	%
	Industrial	17,270		17,291	(0.1	%)			17,294		17,342	(0.3	%)
	Other Energy Sales	31,157		30,639	1.7	%			31,042		29,278	6.0	%
	Total Retail Customers	7,937,495		7,788,567	1.9	%			7,897,493		7,765,216	1.7	%
	Wholesale and Other	46		50	(8.0	%)			45		48	(6.3	%)
	Total Average Number of Customers – Electric Utilities and Infrastructure	7,937,541		7,788,617	1.9	%			7,897,538		7,765,264	1.7	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	17,245		18,535	(7.0	%)			33,201		43,713	(24.0	%)
	Nuclear	18,852		18,970	(0.6	%)			55,890		55,698	0.3	%
	Hydro	640		240	166.7	%			2,544		2,072	22.8	%
	Oil and Natural Gas	22,424		22,421	—	%			59,585		58,266	2.3	%
	Renewable Energy	334		197	69.5	%			894		519	72.3	%
	Total Generation^(d)	59,495		60,363	(1.4	%)			152,114		160,268	(5.1	%)
	Purchased Power and Net Interchange^(e)	15,631		16,238	(3.7	%)			44,441		46,285	(4.0	%)
	Total Sources of Energy	75,126		76,601	(1.9	%)			196,555		206,553	(4.8	%)
	Less: Line Loss and Other	4,251		2,670	59.2	%			10,003		9,704	3.1	%
	Total GWh Sources	70,875		73,931	(4.1	%)			186,552		196,849	(5.2	%)

Owned Megawatt (MW) Capacity^(c)
	Summer								50,759		50,871
	Winter								54,272		54,566
Nuclear Capacity Factor (%)^(f)									95		96


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.


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



Duke Energy Carolinas
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
September 2020

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
GWh Sales^(a)
	Residential	8,657		8,452		2.4	%			21,879		22,375		(2.2	%)
	General Service	8,023		8,546		(6.1	%)			21,077		22,539		(6.5	%)
	Industrial	5,273		5,790		(8.9	%)			14,612		16,126		(9.4	%)
	Other Energy Sales	68		82		(17.1	%)			229		241		(5.0	%)
	Unbilled Sales	(816	)	(158	)	(416.5	%)			(418	)	(169	)	(147.3	%)
	Total Retail Sales	21,205		22,712		(6.6	%)	(3.4	%)	57,379		61,112		(6.1	%)	(3.0	%)
	Wholesale and Other	2,521		2,875		(12.3	%)			6,666		7,907		(15.7	%)
	Total Consolidated Electric Sales – Duke Energy Carolinas	23,726		25,587		(7.3	%)			64,045		69,019		(7.2	%)

Average Number of Customers
	Residential	2,316,390		2,266,663		2.2	%			2,300,089		2,256,206		1.9	%
	General Service	368,342		363,073		1.5	%			366,071		361,739		1.2	%
	Industrial	6,097		6,113		(0.3	%)			6,103		6,124		(0.3	%)
	Other Energy Sales	22,981		22,555		1.9	%			22,880		21,219		7.8	%
	Total Retail Customers	2,713,810		2,658,404		2.1	%			2,695,143		2,645,288		1.9	%
	Wholesale and Other	21		23		(8.7	%)			22		19		15.8	%
	Total Average Number of Customers – Duke Energy Carolinas	2,713,831		2,658,427		2.1	%			2,695,165		2,645,307		1.9	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	5,940		8,124		(26.9	%)			11,587		16,416		(29.4	%)
	Nuclear	11,463		11,666		(1.7	%)			33,642		34,147		(1.5	%)
	Hydro	423		104		306.7	%			1,783		1,423		25.3	%
	Oil and Natural Gas	4,712		4,697		0.3	%			12,975		12,585		3.1	%
	Renewable Energy	47		45		4.4	%			132		123		7.3	%
	Total Generation^(d)	22,585		24,636		(8.3	%)			60,119		64,694		(7.1	%)
	Purchased Power and Net Interchange^(e)	2,823		2,187		29.1	%			7,521		8,030		(6.3	%)
	Total Sources of Energy	25,408		26,823		(5.3	%)			67,640		72,724		(7.0	%)
	Less: Line Loss and Other	1,682		1,236		36.1	%			3,595		3,705		(3.0	%)
	Total GWh Sources	23,726		25,587		(7.3	%)			64,045		69,019		(7.2	%)

Owned MW Capacity^(c)
	Summer									20,191		20,192
	Winter									21,127		21,129
Nuclear Capacity Factor (%)^(f)										96		98

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	37		—		—	%			1,735		1,730		0.3	%
	Cooling Degree Days	1,027		1,205		(14.8	%)			1,474		1,841		(19.9	%)

	Variance from Normal
	Heating Degree Days	144.2	%	(100.0	%)					(11.5	%)	(11.5	%)
	Cooling Degree Days	3.0	%	21.8	%					(1.9	%)	23.8	%


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.


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



Duke Energy Progress
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
September 2020

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
GWh Sales^(a)
	Residential	5,427		5,299		2.4	%			13,705		14,107		(2.8	%)
	General Service	4,283		4,552		(5.9	%)			10,901		11,808		(7.7	%)
	Industrial	2,721		2,903		(6.3	%)			7,588		8,018		(5.4	%)
	Other Energy Sales	19		19		—	%			58		58		—	%
	Unbilled Sales	(216	)	(171	)	(26.3	%)			(147	)	10		(1,570	%)
	Total Retail Sales	12,234		12,602		(2.9	%)	(1.3	%)	32,105		34,001		(5.6	%)	(2.5	%)
	Wholesale and Other	6,801		6,900		(1.4	%)			17,407		18,071		(3.7	%)
	Total Consolidated Electric Sales – Duke Energy Progress	19,035		19,502		(2.4	%)			49,512		52,072		(4.9	%)

Average Number of Customers
	Residential	1,380,981		1,351,180		2.2	%			1,371,672		1,346,472		1.9	%
	General Service	239,941		237,037		1.2	%			238,656		236,328		1.0	%
	Industrial	3,997		4,018		(0.5	%)			4,000		4,032		(0.8	%)
	Other Energy Sales	1,415		1,413		0.1	%			1,415		1,415		—	%
	Total Retail Customers	1,626,334		1,593,648		2.1	%			1,615,743		1,588,247		1.7	%
	Wholesale and Other	9		9		—	%			9		12		(25.0	%)
	Total Average Number of Customers – Duke Energy Progress	1,626,343		1,593,657		2.1	%			1,615,752		1,588,259		1.7	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	3,162		3,792		(16.6	%)			4,602		7,484		(38.5	%)
	Nuclear	7,389		7,304		1.2	%			22,248		21,551		3.2	%
	Hydro	160		84		90.5	%			624		543		14.9	%
	Oil and Natural Gas	6,155		5,959		3.3	%			16,235		15,825		2.6	%
	Renewable Energy	68		77		(11.7	%)			193		202		(4.5	%)
	Total Generation^(d)	16,934		17,216		(1.6	%)			43,902		45,605		(3.7	%)
	Purchased Power and Net Interchange^(e)	2,738		2,796		(2.1	%)			7,223		7,978		(9.5	%)
	Total Sources of Energy	19,672		20,012		(1.7	%)			51,125		53,583		(4.6	%)
	Less: Line Loss and Other	637		510		24.9	%			1,613		1,511		6.8	%
	Total GWh Sources	19,035		19,502		(2.4	%)			49,512		52,072		(4.9	%)

Owned MW Capacity^(c)
	Summer									12,534		12,779
	Winter									13,594		13,942
Nuclear Capacity Factor (%)^(f)										94		92

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	23		—		—	%			1,433		1,600		(10.4	%)
	Cooling Degree Days	1,157		1,233		(6.2	%)			1,670		1,954		(14.5	%)

	Variance from Normal
	Heating Degree Days	138.8	%	(100.0	%)					(19.9	%)	(11.2	%)
	Cooling Degree Days	8.5	%	16.2	%					2.6	%	21.4	%


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.


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



Duke Energy Florida
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
September 2020

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
GWh Sales^(a)
	Residential	6,795		6,450		5.3	%			16,289		15,832		2.9	%
	General Service	4,143		4,363		(5.0	%)			10,895		11,590		(6.0	%)
	Industrial	831		756		9.9	%			2,356		2,203		6.9	%
	Other Energy Sales	6		6		—	%			17		18		(5.6	%)
	Unbilled Sales	—		186		(100.0	%)			544		518		5.0	%
	Total Retail Sales	11,775		11,761		0.1	%	0.2	%	30,101		30,161		(0.2	%)	1.1	%
	Wholesale and Other	1,198		1,235		(3.0	%)			2,289		2,457		(6.8	%)
	Total Electric Sales – Duke Energy Florida	12,973		12,996		(0.2	%)			32,390		32,618		(0.7	%)

Average Number of Customers
	Residential	1,659,206		1,627,182		2.0	%			1,650,696		1,621,718		1.8	%
	General Service	205,232		203,247		1.0	%			204,590		202,930		0.8	%
	Industrial	2,000		2,018		(0.9	%)			2,004		2,028		(1.2	%)
	Other Energy Sales	1,493		1,497		(0.3	%)			1,493		1,501		(0.5	%)
	Total Retail Customers	1,867,931		1,833,944		1.9	%			1,858,783		1,828,177		1.7	%
	Wholesale and Other	11		13		(15.4	%)			9		12		(25.0	%)
	Total Average Number of Customers – Duke Energy Florida	1,867,942		1,833,957		1.9	%			1,858,792		1,828,189		1.7	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	1,621		1,300		24.7	%			2,420		3,051		(20.7	%)
	Oil and Natural Gas	10,595		10,742		(1.4	%)			27,889		27,648		0.9	%
	Renewable Energy	210		65		223.1	%			546		171		219.3	%
	Total Generation^(d)	12,426		12,107		2.6	%			30,855		30,870		—	%
	Purchased Power and Net Interchange^(e)	1,233		1,466		(15.9	%)			3,304		3,662		(9.8	%)
	Total Sources of Energy	13,659		13,573		0.6	%			34,159		34,532		(1.1	%)
	Less: Line Loss and Other	686		577		18.9	%			1,769		1,914		(7.6	%)
	Total GWh Sources	12,973		12,996		(0.2	%)			32,390		32,618		(0.7	%)

Owned MW Capacity^(c)
	Summer									10,335		10,218
	Winter									11,347		11,308

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	—		—		—	%			220		271		(18.8	%)
	Cooling Degree Days	1,569		1,545		1.6	%			3,229		2,948		9.5	%

	Variance from Normal
	Heating Degree Days	—	%	—	%					(10.8	%)	(28.6	%)
	Cooling Degree Days	5.5	%	4.0	%					17.4	%	8.3	%


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.



Duke Energy Ohio
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
September 2020

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
GWh Sales^(a)
	Residential	2,725		2,637		3.3	%			6,911		6,921		(0.1	%)
	General Service	2,458		2,655		(7.4	%)			6,593		7,153		(7.8	%)
	Industrial	1,403		1,520		(7.7	%)			3,978		4,318		(7.9	%)
	Other Energy Sales	25		27		(7.4	%)			79		81		(2.5	%)
	Unbilled Sales	(70	)	136		(151.5	%)			(54	)	78		(169.2	%)
	Total Retail Sales	6,541		6,975		(6.2	%)	(1.5	%)	17,507		18,551		(5.6	%)	(2.9	%)
	Wholesale and Other	137		160		(14.4	%)			256		408		(37.3	%)
	Total Electric Sales – Duke Energy Ohio	6,678		7,135		(6.4	%)			17,763		18,959		(6.3	%)

Average Number of Customers
	Residential	782,281		770,403		1.5	%			781,935		770,910		1.4	%
	General Service	89,075		88,356		0.8	%			89,027		88,253		0.9	%
	Industrial	2,479		2,456		0.9	%			2,488		2,466		0.9	%
	Other Energy Sales	3,440		3,406		1.0	%			3,439		3,392		1.4	%
	Total Retail Customers	877,275		864,621		1.5	%			876,889		865,021		1.4	%
	Wholesale and Other	1		1		—	%			1		1		—	%
	Total Average Number of Customers – Duke Energy Ohio	877,276		864,622		1.5	%			876,890		865,022		1.4	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	940		1,070		(12.1	%)			1,833		2,768		(33.8	%)
	Oil and Natural Gas	33		101		(67.3	%)			40		133		(69.9	%)
	Total Generation^(d)	973		1,171		(16.9	%)			1,873		2,901		(35.4	%)
	Purchased Power and Net Interchange^(e)	6,399		6,233		2.7	%			17,693		17,740		(0.3	%)
	Total Sources of Energy	7,372		7,404		(0.4	%)			19,566		20,641		(5.2	%)
	Less: Line Loss and Other	694		269		158.0	%			1,803		1,682		7.2	%
	Total GWh Sources	6,678		7,135		(6.4	%)			17,763		18,959		(6.3	%)

Owned MW Capacity^(c)
	Summer									1,076		1,076
	Winter									1,164		1,164

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	50		—		—	%			2,826		2,918		(3.2	%)
	Cooling Degree Days	825		1,026		(19.6	%)			1,177		1,359		(13.4	%)

	Variance from Normal
	Heating Degree Days	(12.3	%)	(100.0	%)					(8.3	%)	(4.7	%)
	Cooling Degree Days	9.4	%	36.0	%					8.1	%	25.6	%


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.



Duke Energy Indiana
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
September 2020

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)		2020		2019		% Inc.(Dec.)		% Inc. (Dec.) Weather Normal^(b)
GWh Sales^(a)
	Residential	2,553		2,466		3.5	%			7,033		7,110		(1.1	%)
	General Service	2,206		2,280		(3.2	%)			5,797		6,238		(7.1	%)
	Industrial	2,434		2,700		(9.9	%)			7,049		7,815		(9.8	%)
	Other Energy Sales	12		12		—	%			38		38		—	%
	Unbilled Sales	(69	)	117		(159.0	%)			(144	)	24		(700.0	%)
	Total Retail Sales	7,136		7,575		(5.8	%)	(3.3	%)	19,773		21,225		(6.8	%)	(5.4	%)
	Wholesale and Other	1,327		1,136		16.8	%			3,069		2,956		3.8	%
	Total Electric Sales – Duke Energy Indiana	8,463		8,711		(2.8	%)			22,842		24,181		(5.5	%)

Average Number of Customers
	Residential	745,014		731,741		1.8	%			744,005		732,408		1.6	%
	General Service	102,606		101,755		0.8	%			102,416		101,632		0.8	%
	Industrial	2,697		2,686		0.4	%			2,699		2,692		0.3	%
	Other Energy Sales	1,828		1,768		3.4	%			1,815		1,751		3.7	%
	Total Retail Customers	852,145		837,950		1.7	%			850,935		838,483		1.5	%
	Wholesale and Other	4		4		—	%			4		4		—	%
	Total Average Number of Customers – Duke Energy Indiana	852,149		837,954		1.7	%			850,939		838,487		1.5	%

Sources of Electric Energy (GWh)
	Generated – Net Output^(c)
	Coal	5,582		4,249		31.4	%			12,759		13,994		(8.8	%)
	Hydro	57		52		9.6	%			137		106		29.2	%
	Oil and Natural Gas	929		922		0.8	%			2,446		2,075		17.9	%
	Renewable Energy	9		10		(10.0	%)			23		23		—	%
	Total Generation^(d)	6,577		5,233		25.7	%			15,365		16,198		(5.1	%)
	Purchased Power and Net Interchange^(e)	2,438		3,556		(31.4	%)			8,700		8,875		(2.0	%)
	Total Sources of Energy	9,015		8,789		2.6	%			24,065		25,073		(4.0	%)
	Less: Line Loss and Other	552		78		607.7	%			1,223		892		37.1	%
	Total GWh Sources	8,463		8,711		(2.8	%)			22,842		24,181		(5.5	%)

Owned MW Capacity^(c)
	Summer									6,623		6,606
	Winter									7,040		7,023

Heating and Cooling Degree Days
	Actual
	Heating Degree Days	52		—		—	%			3,142		3,358		(6.4	%)
	Cooling Degree Days	789		930		(15.2	%)			1,132		1,224		(7.5	%)

	Variance from Normal
	Heating Degree Days	(19.6	%)	(100.0	%)					(5.0	%)	1.2	%
	Cooling Degree Days	5.7	%	24.6	%					5.0	%	13.3	%


(a)	Except as indicated in footnote (b), 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.


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


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


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


(e)	Purchased power includes renewable energy purchases.



Gas Utilities and Infrastructure
Quarterly Highlights
September 2020

		Three Months Ended September 30,				Nine Months Ended September 30,
		2020	2019	% Inc. (Dec.)		2020	2019	% Inc. (Dec.)
Total Sales
	Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms)^(a)	115,549,371	121,378,484	(4.8	%)	360,861,306	377,725,958	(4.5	%)
	Duke Energy Midwest LDC throughput (Mcf)	9,678,342	9,997,444	(3.2	%)	58,570,583	62,278,623	(6.0	%)

Average Number of Customers – Piedmont Natural Gas
	Residential	1,003,014	971,955	3.2	%	1,000,857	978,739	2.3	%
	Commercial	104,572	103,179	1.4	%	105,023	104,046	0.9	%
	Industrial	965	974	(0.9	%)	970	970	—	%
	Power Generation	19	16	18.8	%	18	16	12.5	%
	Total Average Number of Gas Customers – Piedmont Natural Gas	1,108,570	1,076,124	3.0	%	1,106,868	1,083,771	2.1	%

Average Number of Customers – Duke Energy Midwest
	Residential	493,169	485,307	1.6	%	495,049	489,401	1.2	%
	General Service	41,729	41,291	1.1	%	43,371	43,250	0.3	%
	Industrial	1,524	1,491	2.2	%	1,572	1,574	(0.1	%)
	Other	132	136	(2.9	%)	132	135	(2.2	%)
	Total Average Number of Gas Customers – Duke Energy Midwest	536,554	528,225	1.6	%	540,124	534,360	1.1	%


(a)	Piedmont has a margin decoupling mechanism in North Carolina, weather normalization mechanisms in South Carolina and Tennessee and fixed-price contracts with most power generation customers 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
September 2020

		Three Months Ended September 30,				Nine Months Ended September 30,
		2020	2019	% Inc. (Dec.)		2020	2019	% Inc. (Dec.)
	Renewable Plant Production, GWh	2,563	2,146	19.4	%	7,660	6,528	17.3	%
	Net Proportional MW Capacity in Operation^(a)	n/a	n/a			3,984	3,162	26.0	%

(a) Includes 100% tax equity project capacity.

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