Duke Energy's 2013 adjusted EPS results meet expectations; company announces 2014 adjusted EPS guidance range -- Company achieves adjusted diluted earnings per share (EPS) of $4.35 in 2013, compared to $4.32 in 2012; reported diluted EPS of $3.76 for 2013, compared to $3.07 in 2012

-- Fourth quarter 2013 adjusted diluted EPS of $1.00, compared with 70 cents for the fourth quarter 2012; fourth quarter 2013 reported diluted EPS of 97 cents, compared to 62 cents in 2012

-- Company establishes 2014 adjusted diluted EPS guidance range of $4.45 to $4.60 and extends through 2016 its longer-term 4 to 6 percent average annual growth objective in adjusted diluted EPS

CHARLOTTE, N.C., Feb. 18, 2014 /PRNewswire/ -- Duke Energy (NYSE: DUK) today posted 2013 full-year adjusted diluted EPS of $4.35, achieving the midpoint of its adjusted diluted EPS guidance range of $4.25 to $4.45. Adjusted diluted EPS for 2012 was $4.32.

(Logo: http://photos.prnewswire.com/prnh/20130322/CL81938LOGO )

Duke Energy's full-year reported diluted EPS was $3.76 for 2013, compared to $3.07 in 2012.

Fourth quarter 2013 adjusted diluted EPS was $1.00, compared to 70 cents for fourth quarter 2012. Fourth quarter 2013 reported diluted EPS was 97 cents, compared to 62 cents for fourth quarter 2012.

For the quarter, the company achieved lower costs through synergies realized from the 2012 merger with Progress Energy; recovered infrastructure modernization costs through revised customer rates; and benefitted from the adoption of nuclear outage cost levelization in the Carolinas, which will lessen quarterly earnings volatility caused by the variable timing of nuclear refueling outages.

The company's International Energy segment also saw favorable volumes and pricing in Brazil.

These positive quarterly drivers helped offset the full-year impact of lower results from the company's Midwest gas generation fleet, unfavorable foreign exchange rates in Brazil, as well as interest expense on incremental financings.

"Our company demonstrated tremendous focus and discipline in 2013," said Lynn Good, president and CEO. "As a result, we achieved the mid-point of our earnings per share guidance range, increased the dividend, and exceeded our original target of 5 to 7 percent in non-fuel operating and maintenance savings.

"We are also ahead of target to achieve our merger savings commitment to Carolinas customers through fuel and joint-dispatch savings," she added.

"In 2014, we will focus on building on the momentum created in 2013 to achieve our financial and operational objectives," Good said.

The company has set its 2014 adjusted diluted EPS guidance range at $4.45 to $4.60 and updated through 2016 its longer-term 4 to 6 percent average annual growth in adjusted diluted EPS based upon the midpoint of the original 2013 adjusted diluted EPS guidance range of $4.20-4.45.

Business Unit Results
The discussion below of fourth-quarter and year-end results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 27 through 30 present a reconciliation of reported results to adjusted results.

Regulated Utilities
Regulated Utilities (formerly known as U.S. Franchised Electric and Gas) recognized fourth-quarter 2013 adjusted segment income of $607 million, compared to $498 million in the fourth quarter 2012, an increase of $0.15 per share.

Increased quarterly results at Regulated Utilities were primarily driven by:

  • Lower operating and maintenance expenses (+$0.20 per share) due in part to the adoption of nuclear outage cost levelization in the Carolinas, lower benefits costs and merger synergies
  • Increased pricing and riders (+$0.12 per share) resulting from revised customer rates
  • Favorable weather as compared to unfavorable weather in last year's quarter (+$0.06 per share)
  • Increased wholesale net margins (+$0.03 per share).

These favorable drivers were partially offset by:

  • Higher depreciation and amortization expense (-$0.09 per share) primarily resulting from reduced cost of removal amortization in Florida as well as additional plant in-service
  • Higher effective tax rate (-$0.09 per share) largely resulting from the decrease in allowance for funds used during construction (AFUDC) equity.
  • Lower AFUDC equity (-$0.05 per share) primarily due to the completion of certain major capital projects

Full-year 2013 adjusted segment income for Regulated Utilities was $2,776 million compared to $2,086 million in 2012, an increase of $0.98 per share.

These increased results were primarily driven by the addition of Progress Energy's regulated utility operations in the Carolinas and Florida for the first six months of the year (+$0.72 per share).

Other favorable drivers (excluding the addition of Progress Energy for the first six months of the year), included:

  • Increased pricing and riders (+$0.35 per share) resulting from revised customer rates
  • Lower operating and maintenance expenses (+$0.21 per share) due in part to the adoption of nuclear outage cost levelization in the Carolinas, lower benefits costs and merger synergies
  • Increased retail volumes (+$0.07 per share)
  • Increased wholesale margins including new contracts (+$0.07 per share)

These results were partially offset by:

  • Higher depreciation and amortization expense (-$0.15 per share) primarily resulting from reduced cost of removal amortization in Florida as well as additional plant in-service
  • Lower AFUDC equity (-$0.14 per share) primarily due to the completion of certain major capital projects
  • Higher effective tax rates (-$0.11 per share) largely resulting from the decrease in AFUDC equity.
  • Higher property taxes (-$0.03 per share)

International Energy
International Energy recognized fourth-quarter 2013 adjusted segment income of $108 million, compared to $89 million in the fourth quarter 2012, an increase of $0.02 per share.

International Energy's improved quarterly earnings were primarily due to stronger results in Latin America (+$0.03 per share) due to higher volumes and pricing as well as lower purchased power costs in Brazil. These drivers were partially offset by unfavorable foreign currency exchange rates in Brazil (-$0.01 per share).

Full-year 2013 adjusted segment income for International Energy was $408 million compared to $439 million in 2012, a decrease of $0.04 per share.

Lower year-over-year results were primarily due to unfavorable foreign currency exchange rates in Brazil (-$0.03 per share) and lower results at National Methanol Company (-$0.03 per share) primarily due to an extended planned maintenance outage. These results were partially offset by stronger results in Latin America (+$0.03 per share) primarily driven by higher average prices in Brazil.

Commercial Power
Commercial Power recognized fourth-quarter 2013 adjusted segment loss of $3 million, compared to break-even results in the fourth quarter 2012. This did not substantially affect earnings.

For the quarter, higher energy margins and PJM capacity revenues for the Midwest coal generation fleet (+$0.02 per share) were largely offset by lower margins at Duke Energy Retail (-$0.01 per share).

Full-year 2013 adjusted segment income for Commercial Power was $15 million compared to $93 million in 2012, a decrease of $0.11 per share.

Lower year-over-year results for Commercial Power were primarily due to lower results from the Midwest gas generation fleet (-$0.09 per share) due to lower energy margins and PJM capacity revenues as well as the prior year recovery of a previously written-off receivable from Lehman Brothers. For the Midwest coal generation fleet, lower PJM capacity revenues were largely offset by higher energy margins. Renewables results were lower (-$0.02) in 2013, primarily due to a prior year joint venture development fee.

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

Other recognized a fourth-quarter 2013 adjusted net expense of $6 million, compared to $91 million in the fourth quarter 2012, an improvement of $0.13 per share.

Other's favorable results were primarily due to a lower effective tax rate (+$0.10 per share), favorable captive insurance loss experience (+$0.01 per share), and higher investment returns (+$0.01 per share).

Full-year 2013 adjusted net expense for Other was $128 million compared to $135 million in 2012, an improvement of $0.01 per share.

For the year, interest expense on Progress Energy holding company debt for the first six months (-$0.07 per share) and Duke Energy holding company interest expense (-$0.04 per share) were offset by a lower effective tax rate (+$0.10 per share).

Share Dilution
On July 2, 2012, Duke Energy issued approximately 258 million shares of common stock in connection with the closing of the merger with Progress Energy, Inc. The full year impact of the issuance of these additional shares had a dilutive impact of $0.81 per share on the year-over-year adjusted diluted EPS results.

Earnings Conference Call for Analysts
An earnings conference call for analysts is scheduled for 10 a.m. ET today.

In addition to discussing the fourth quarter and year-end 2013 results, the company will provide its 2014 adjusted diluted earnings per share guidance range and other business and financial updates.

The conference call will be hosted by Lynn Good, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors' section (http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing 888-349-9582 in the United States or 719-325-2291 outside the United States. The confirmation code is 8505537. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 2 p.m. ET, Feb. 28, 2014, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 8505537. A replay and transcript also will be available by accessing the investors' section of the company's website.

Special Items and Non-GAAP Reconciliation

Special items affecting Duke Energy's adjusted diluted EPS for fourth quarter 2013 and fourth quarter 2012 include:


(In millions, except per-share amounts)

Pre-Tax

Amount

Tax

Effect

4Q2013

EPS

Impact

4Q2012

EPS

Impact

Fourth Quarter 2013





- Costs to Achieve, Progress Energy Merger

$(72)

$27

$(0.06)


- Crystal River Unit 3 Charges

$(57)

$22

$(0.05)


- Economic Hedges (Mark-to-Market)

$(17)

$6

$(0.02)


- Asset Sales

$81

$(31)

$0.07


- Litigation Reserve

$28

$(11)

$0.02


- Discontinued Operations

--

$6

$0.01


Fourth Quarter 2012





- Costs to Achieve, Progress Energy Merger

$(164)

$73


$(0.13)

- Edwardsport Charges

$(28)

$11


$(0.02)

- Economic Hedges (Mark-to-Market)

$26

$(10)


$0.02

- Discontinued Operations

$56

$(25)


$0.05

Total diluted EPS impact



$(0.03)

$(0.08)



Special items affecting Duke Energy's adjusted diluted EPS for full-year 2013 and full-year 2012 include:


(In millions, except per-share amounts)

Pre-Tax

Amount

Tax

Effect

2013

EPS

Impact

2012

EPS

Impact

Full-Year 2013





- Crystal River Unit 3 Charges

$(352)

$137

$(0.31)


- Costs to Achieve, Progress Energy Merger

$(297)

$113

$(0.26)


- Nuclear Development Charges

$(87)

$30

$(0.08)


- Litigation Reserve

$(22)

$8

$(0.02)


- Economic Hedges (Mark-to-Market)

$(4)

$1

$(0.01)


- Asset Sales

$81

$(31)

$0.07


- Discontinued Operations

$(10)

$27

$0.02


Full-Year 2012





- Costs to Achieve, Progress Energy Merger

$(636)

$239


$(0.70)

- Edwardsport Charges

$(628)

$226


$(0.70)

- DNC Host Committee Support

$(10)

$4


$(0.01)

- Economic Hedges (Mark-to-Market)

$(9)

$3


$(0.01)

- Voluntary Opportunity Plan Deferral

$99

$(39)


$0.11

- Discontinued Operations

$60

$(24)


$0.06

Total diluted EPS impact



$(0.59)

$(1.25)



Reconciliation of reported to adjusted diluted EPS for the quarters:



4Q2013

EPS

4Q2012

EPS

Diluted EPS, as reported

$0.97

$0.62

Adjustments to reported EPS:



- Diluted EPS impact of special items, mark-to-market in

  Commercial Power, and discontinued operations (net of tax)

$0.03

$0.08

Diluted EPS, adjusted

$1.00

$0.70



Reconciliation of reported to adjusted diluted EPS for the annual periods:



2013

EPS

2012

EPS

Diluted EPS, as reported

$3.76

$3.07

Adjustments to reported EPS:



- Diluted EPS impact of special items, mark-to-market in

  Commercial Power, and discontinued operations (net of tax)

$0.59

$1.25

Diluted EPS, adjusted

$4.35

$4.32

 

Non-GAAP financial measures
Management evaluates financial performance in part based on the non-GAAP financial measures, adjusted earnings and adjusted diluted earnings per share (EPS). These items are measured as income from continuing operations after deducting income attributable to noncontrolling interests, adjusted for the dollar and per share impact of special items and mark-to-market impacts of economic hedges in the Commercial Power segment. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them 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 results to the Board of Directors, employees, shareholders, analysts and investors concerning Duke Energy's financial performance. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS attributable to Duke Energy Corporation common shareholders, which include the dollar and per share impact of special items, mark-to-market impacts of economic hedges in the Commercial Power segment and discontinued operations.

Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Management also uses adjusted segment 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 and mark-to-market impacts of economic hedges in the Commercial Power segment. 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 is segment income, which represents segment income from continuing operations, including any special items and mark-to-market impacts of economic hedges in the Commercial Power segment.

Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items or mark-to-market adjustments for future periods. The earnings guidance range assumptions for 2014 include a full-year of earnings contributions from the Midwest generation fleet, which management has begun a process to exit. Irrespective of whether this business is reclassified as discontinued operations for accounting purposes, management expects to continue including any Midwest generation fleet earnings in adjusted earnings, adjusted diluted EPS, and adjusted segment income. Management believes it is unlikely a sale transaction will close in 2014.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

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

Forward-Looking Information
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions.

These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the ability to recover eligible costs, including those associated with future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 could prove to be more extensive than is currently identified and all costs may not be fully recoverable through the regulatory process; the risk that the credit ratings of the company or its subsidiaries may be different from what the companies expect; 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 customer usage patterns, including energy efficiency efforts and use of alternative energy sources including self-generation and distributed generation technologies; additional competition in electric markets and continued industry consolidation; political and regulatory uncertainty in other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers; the impact on facilities and business from a terrorist attack, cyber security threats, data security breaches and other catastrophic events; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity price, interest rates and foreign currency exchange 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 and general economic conditions; declines in the market prices of equity securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; 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 potential goodwill impairments; the ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax free basis; and the ability to successfully complete future merger, acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Forward looking statements speak only as of the date they are made, Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

Media Contact: Tom Shiel
Office: 704.382.2355 | 24-Hour: 800.559.3853

Analysts: Bill Currens
Office: 704.382.1603

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2013 QTD vs. Prior Year


















($ per share)


Regulated
Utilities


International Energy


Commercial Power


Other


Consolidated


















2012 QTD Reported Earnings Per Share, Diluted


$

0.69


$

0.13


$

0.02


$

(0.27)


$

0.62

Costs to Achieve, Progress Merger



-



-



-



0.13



0.13

Edwardsport Charges



0.02



-



-



-



0.02

Economic Hedges (Mark-to-Market)



-



-



(0.02)



-



(0.02)

Discontinued Operations















(0.05)

2012 QTD Adjusted Earnings Per Share, Diluted


$

0.71


$

0.13


$

-


$

(0.14)


$

0.70


















Weather



0.06



-



-



-



0.06


















Pricing and Riders (a)



0.12



-



-



-



0.12


















Operation and Maintenance, net of recoverables (b)



0.20



-



-



-



0.20


















Latin America, including Foreign Exchange Rates (c)



-



0.02



-



-



0.02


















Midwest Coal Generation (d)



-



-



0.02



-



0.02


















Duke Energy Retail



-



-



(0.01)



-



(0.01)


















Interest Expense



(0.01)



-



-



(0.01)



(0.02)


















Change in effective income tax rate



(0.09)



-



(0.01)



0.10



-


















Other (e)(f)



(0.13)



-



-



0.04



(0.09)











-







2013 QTD Adjusted Earnings Per Share, Diluted


$

0.86


$

0.15


$

-


$

(0.01)


$

1.00

Crystal River Unit 3 Charges



(0.05)



-



-



-



(0.05)

Asset Sales



-



-



(0.02)



0.09



0.07

Costs to Achieve, Progress Merger



-



-



-



(0.06)



(0.06)

Litigation Reserve



-



-



-



0.02



0.02

Economic Hedges (Mark-to-Market)



-



-



(0.02)



-



(0.02)

Discontinued Operations















0.01

2013 QTD Reported Earnings Per Share, Diluted


$

0.81


$

0.15


$

(0.04)


$

0.04


$

0.97



















Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Primarily due to the September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.07), the June 2013 implementation of revised

base rates for Duke Energy Progress (+$0.04), the January 2013 implementation of revised base rates for Duke Energy Florida (+$0.03), and the May 2013

implementation of revised distribution rates for Duke Energy Ohio (+$0.01).


















(b)

Primarily driven by the impact of nuclear outage cost levelization, lower generation operating expenses and lower benefit costs.


















(c)

Primarily driven by higher volumes and pricing as well as lower average purchased power costs in Brazil (+$0.03), partially offset by unfavorable foreign exchange rates (-$0.01).


















(d)

Primarily due to higher energy margins and PJM capacity revenues (+$0.02).


















(e)

Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.09), lower AFUDC-equity (-$0.05), and higher non-income taxes (-$0.01), partially offset by higher wholesale margins, including new contracts (+$0.03).


















(f)

Amount for Other principally includes favorable captive insurance loss experience (+$0.01) and higher investment returns (+$0.01).

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2013 YTD vs. Prior Year


















($ per share)


Regulated
Utilities


International Energy


Commercial Power


Other


Consolidated


















2012 YTD Reported Earnings Per Share, Diluted


$

3.04


$

0.76


$

0.15


$

(0.94)


$

3.07

Costs to Achieve, Progress Merger



-



-



-



0.70



0.70

Edwardsport Charges



0.70



-



-



-



0.70

Voluntary Opportunity Plan Deferral



(0.11)



-



-



-



(0.11)

DNC Host Committee Support



-



-



-



0.01



0.01

Economic Hedges (Mark-to-Market)



-



-



0.01



-



0.01

Discontinued Operations















(0.06)

2012 YTD Adjusted Earnings Per Share, Diluted


$

3.63


$

0.76


$

0.16


$

(0.23)


$

4.32


















Share Differential (a)



(0.68)



(0.14)



(0.03)



0.04



(0.81)


















2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

2.95


$

0.62


$

0.13


$

(0.19)


$

3.51


















Progress Energy Contribution



0.72



-



-



(0.07)



0.65


















Pricing and Riders (b)



0.35



-



-



-



0.35


















Volume



0.07



-



-



-



0.07


















Operation and Maintenance, net of recoverables (c)



0.21



-



-



-



0.21


















Latin America, including Foreign Exchange Rates (d)



-



-



-



-



-


















National Methanol Company



-



(0.03)



-



-



(0.03)


















Midwest Coal Generation (e)



-



-



-



-



-


















Midwest Gas Generation (f)



-



-



(0.09)



-



(0.09)


















Interest Expense



0.01



-



0.02



(0.04)



(0.01)


















Change in effective income tax rate



(0.11)



-



-



0.10



(0.01)


















Other (g)(h)



(0.27)



(0.01)



(0.04)



0.02



(0.30)


















2013 YTD Adjusted Earnings Per Share, Diluted


$

3.93


$

0.58


$

0.02


$

(0.18)


$

4.35

Crystal River Unit 3 Charges



(0.31)



-



-



-



(0.31)

Nuclear Development Charges



(0.08)



-



-



-



(0.08)

Costs to Achieve, Progress Merger



-



-



-



(0.26)



(0.26)

Litigation Reserve



-



-



-



(0.02)



(0.02)

Asset Sales



-



-



(0.02)



0.09



0.07

Economic Hedges (Mark-to-Market)



-



-



(0.01)



-



(0.01)

Discontinued Operations















0.02

2013 YTD Reported Earnings Per Share, Diluted


$

3.54


$

0.58


$

(0.01)


$

(0.37)


$

3.76



















Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to

complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 575 million for the year ended December 31, 2012, to 706 million for the year ended

December 31, 2013.


















(b)

Primarily due to the February 2012 and September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.11), the January 2013 implementation of revised base rates for Duke Energy Florida (+$0.08), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.07), increased recovery under the IGCC rider, net of AFUDC, for Duke Energy Indiana (+$0.05), and the May 2013 implementation of revised distribution rates for Duke Energy Ohio (+$0.03).


















(c)

Primarily driven by the impact of nuclear outage cost levelization, lower nuclear generation operating expenses, lower benefit costs and the deferral of Crystal River Unit 3 costs.


















(d)

Primarily driven by higher average prices in Brazil (+$0.03), offset by unfavorable foreign exchange rates (-$0.03).


















(e)

Primarily due to lower PJM capacity revenues (-$0.05), partially offset by higher energy margins (+$0.03) and lower operations and maintenance expense (+$0.02).


















(f)

Primarily due to decreased energy margins due to lower volumes (-$0.04), lower PJM capacity revenues (-$0.04), and the prior-year recovery of a previously written-off Lehman Brothers
receivable (-$0.01).


















(g)

Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.15), lower AFUDC-equity (-$0.14), and higher property taxes (-$0.03), partially offset by higher wholesale margins, including new contracts (+$0.07).


















(h)

Amount for Commercial Power includes lower Renewables results (-$0.02).

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2013 QTD vs. Prior Year


















($ per share)






Legacy

Progress Energy


Legacy

Duke Energy


Consolidated


















2012 QTD Adjusted Earnings Per Share, Diluted








$

0.22


$

0.48


$

0.70


















Weather









0.01



0.05



0.06


















Pricing and Riders









0.07



0.05



0.12


















Operation and Maintenance, net of recoverables









0.06



0.14



0.20


















Latin America, including Foreign Exchange Rates









-



0.02



0.02


















Midwest Coal Generation









-



0.02



0.02


















Duke Energy Retail









-



(0.01)



(0.01)


















Interest Expense









0.01



(0.03)



(0.02)


















Change in effective income tax rate









0.05



(0.05)



-


















Other









(0.03)



(0.06)



(0.09)











-







2013 QTD Adjusted Earnings Per Share, Diluted








$

0.39


$

0.61


$

1.00



















Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

 

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2013 YTD vs. Prior Year
























Legacy Progress Energy


Legacy

Duke Energy




($ per share)




For the Six

Months Ended

June 30, 2013


For the Six

Months Ended

December 31,

2013


For the Year

Ended

December 31,

2013


Consolidated


















2012 YTD Adjusted Earnings Per Share, Diluted














$

4.32


















Share Differential (a)















(0.81)


















2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance





$

-


$

0.74


$

2.77


$

3.51


















Progress Energy Contribution for the six months ended June 30, 2013 (b)






0.65



-



-



0.65


















Pricing and Riders






-



0.17



0.18



0.35


















Volume






-



0.02



0.05



0.07


















Operation and Maintenance and Governance Expenses






-



0.03



0.18



0.21


















Latin America, including Foreign Exchange Rates






-



-



-



-


















National Methanol Company






-



-



(0.03)



(0.03)


















Midwest Coal Generation






-



-



-



-


















Midwest Gas Generation






-



-



(0.09)



(0.09)


















Interest Expense






-



0.03



(0.04)



(0.01)


















Change in effective income tax rate






-



0.03



(0.04)



(0.01)


















Other






-



(0.13)



(0.17)



(0.30)








-



-







2013 YTD Adjusted Earnings Per Share, Diluted





$

0.65


$

0.89


$

2.81


$

4.35



















Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to

complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 575 million for the year ended December 31, 2012, to 706 million for the year ended

December 31, 2013.


















(b)

Reflects Progress Energy's contribution to EPS for the six months ended June 30, 2013. Progress Energy contributed +$0.72 per share to Regulated Utilities and -$0.07 per share to Other.

 

 

December 2013

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended


Years Ended


December 31,


December 31,









(In millions, except per-share amounts and where noted)

2013


2012


2013


2012

COMMON STOCK DATA








Income from continuing operations attributable to Duke Energy Corporation common shareholders








   Basic

$        0.96


$        0.57


$        3.74


$        3.01

   Diluted

$        0.96


$        0.57


$        3.74


$        3.01

Income from discontinued operations attributable to Duke Energy Corporation common shareholders








   Basic

$        0.01


$        0.05


$        0.03


$        0.06

   Diluted

$        0.01


$        0.05


$        0.02


$        0.06

Net income attributable to Duke Energy Corporation common shareholders








   Basic

$        0.97


$        0.62


$        3.77


$        3.07

   Diluted

$        0.97


$        0.62


$        3.76


$        3.07

Dividends Declared Per Share

$        0.78


$      0.765


$        3.09


$        3.03

Weighted-Average Shares Outstanding








   Basic

706


704


706


574

   Diluted

706


705


706


575









SEGMENT INCOME BY BUSINESS SEGMENT








Regulated Utilities(a)(b)(c)

$         572


$         481


$      2,504


$      1,744

International Energy

108


89


408


439

Commercial Power

(29)


16


(3)


87

Total Reportable Segment Income

651


586


2,909


2,270

Other Net Expense(d)(e)(f)

31


(182)


(261)


(538)

Income from Discontinued Operations, net of tax

6


31


17


36

Net Income Attributable to Duke Energy Corporation

$         688


$         435


$      2,665


$      1,768


$              -


$             1


$              -


$              -

CAPITALIZATION








Total Common Equity





50%


50%

Total Debt





50%


50%









Total Debt





$    41,095


$    40,518

Book Value Per Share





$      58.61


$      58.12

Actual Shares Outstanding





706


704









CAPITAL AND INVESTMENT EXPENDITURES








Regulated Utilities

$      1,476


$      1,360


$      5,049


$      4,220

International Energy

23


432


67


551

Commercial Power

158


213


268


1,038

Other

43


65


223


149









Total Capital and Investment Expenditures

$      1,700


$      2,070


$      5,607


$      5,958

















(a)

Includes impairment and other charges related to the Crystal River Unit 3 Nuclear Station of $35 million for the three months ended December 31, 2013 (net of tax of $22

million), and $215 million for the year ended December 31, 2013 (net of tax of $137 million).

(b)

Includes impairment charges of $57 million for the year ended December 31, 2013 related to nuclear development costs (net of tax of $30 million).

(c)

Includes impairment and other charges related to the Edwardsport IGCC project of $17 million for the three months ended December 31, 2012 (net of tax of $11 million), and $402 million for the year ended December 31, 2012 (net of tax of $226 million).

(d)

Includes a gain from asset sales of $65 million for the three months ended December 31, 2013 (net of tax of $40 million).

(e)

Includes costs to achieve the Progress Energy merger of $45 million for the three months ended December 31, 2013 (net of tax of $27 million), and $184 million for the year ended December 31, 2013 (net of tax of $113 million).

(f)

Includes costs to achieve the Progress Energy merger of $91 million for the three months ended December 31, 2012 (net of tax of $73 million), and $397 million for the year ended December 31, 2012 (net of tax of $239 million).

 

 

December 2013

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended


Years Ended


December 31,


December 31,









(In millions, except where noted)

2013


2012


2013


2012

REGULATED UTILITIES








   Operating Revenues(a)

$    5,144


$    4,873


$    20,910


$    16,080

   Operating Expenses(b)(c)(d)

3,990


4,029


16,126


12,943

   Gains on Sales of Other Assets, net

1


2


7


15

   Operating Income

1,155


846


4,791


3,152

   Other Income and Expenses

55


114


221


341

   Interest Expense

273


260


986


806

   Income Before Income Taxes

937


700


4,026


2,687

   Income Tax Expense(e)(f)(g)

365


218


1,522


941

   Less: Income Attributable to Noncontrolling Interests

-


1


-


2

   Segment Income

$       572


$       481


$      2,504


$      1,744









   Depreciation and Amortization

$       628


$       552


$      2,323


$      1,827









   Duke Energy Carolinas GWh sales

20,407


19,224


85,790


81,362

   Duke Energy Progress GWh sales

14,443


14,425


60,204


58,390

   Duke Energy Florida's GWh sales

8,842


8,629


37,974


38,443

   Duke Energy Ohio GWh sales

5,990


5,744


24,557


24,344

   Duke Energy Indiana GWh sales

8,526


7,893


33,715


33,577

   Total GWh sales

58,208


55,915


242,240


236,116

   Net Proportional MW Capacity in Operation





49,607


49,654









INTERNATIONAL ENERGY








   Operating Revenues

$       378


$       368


$      1,546


$      1,549

   Operating Expenses

235


275


1,000


1,043

   Gains on Sales of Other Assets, net

3


-


3


-

   Operating Income

146


93


549


506

   Other Income and Expenses

30


35


125


171

   Interest Expense

26


16


86


76

   Income Before Income Taxes

150


112


588


601

   Income Tax Expense

38


20


166


149

   Less: Income Attributable to Noncontrolling Interests

4


3


14


13

   Segment Income

$       108


$         89


$         408


$         439









   Depreciation and Amortization

$ 25


$         25


$         100


$           99









   Sales, GWh

5,562


4,868


20,306


20,132

   Proportional MW Capacity in Operation





4,600


4,584









COMMERCIAL POWER








   Operating Revenues

$       586


$        471


$      2,145


$      2,078

   Operating Expenses

623


469


2,178


1,981

   (Losses) Gains on Sales of Other Assets, net

(24)


(3)


(23)


8

Operating (Loss) Income

(61)


(1)


(56)


105

   Other Income and Expenses

4


13


13


39

   Interest Expense

16


8


64


63

   (Loss) Income Before Income Taxes

(73)


4


(107)


81

   Income Tax Benefit

(44)


(12)


(104)


(7)

   Less: Income Attributable to Noncontrolling Interests

-


-


-


1

   Segment (Loss) Income

$       (29)


$          16


$           (3)


$           87









   Depreciation and Amortization

$         62


$          56


$         250


$         228









Actual Coal-fired Plant Production, GWh

4,737


3,743


18,467


16,164

Actual Gas-fired Plant Production, GWh

4,099


3,639


15,052


17,122

Actual Renewable Plant Production, GWh

1,350


1,053


5,111


3,452

Actual Plant Production, GWh

10,186


8,435


38,630


36,738

   Net Proportional MW Capacity in Operation





7,915


8,094









OTHER








   Operating Revenues

$         38


$         23


$         163


$           74

   Operating Expenses(h)(i)

75


190


461


704

   Losses on Sales of Other Assets, net

1


(4)


(3)


(7)

   Operating Loss

(36)


(171)


(301)


(637)

   Other Income and Expenses(j)

124


2


131


16

   Interest Expense

107


101


417


297

   Loss Before Income Taxes

(19)


(270)


(587)


(918)

   Income Tax Benefit(k)(l)(m)

(50)


(86)


(323)


(378)

   Less: Loss Attributable to Noncontrolling Interests

-


(2)


(3)


(2)

Segment Income (Net Expense)

$         31


$      (182)


$       (261)


$       (538)









   Depreciation and Amortization

$         31


$          36


$        135


$        135

















(a)

Includes pre-tax charges of $28 million for the three months and year ended December 31, 2012, related to the Edwardsport IGCC project.

(b)

Includes pre-tax impairment and other charges of $600 million for the year ended December 31, 2012, related to the Edwardsport IGCC project.

(c)

Includes pre-tax impairment and other charges of $57 million for the three months ended December 31, 2013, and $352 million for the year ended December 31, 2013, related to the Crystal River Unit 3 Nuclear Station.

(d)

Includes pre-tax impairment charges of $87 million for the year ended December 31, 2013, related to nuclear development costs.

(e)

Includes a tax benefit of $226 million for year ended December 31, 2012, on the impairment and other charges related to the Edwardsport IGCC project.

(f)

Includes a tax benefit of $22 million for the three months ended December 31, 2013, and $137 million for the year ended December 31, 2013, on the impairment and other charges related to the Crystal River Unit 3 Nuclear Station.

(g)

Includes a tax benefit of $30 million for the year ended December 31, 2013, on the impairment related to nuclear development costs.

(h)

Includes costs to achieve the Progress Energy merger of $77 million recorded in Operating Expense for the three months ended December 31, 2013, and $352 million recorded in Operating Expense for the year ended December 31, 2013.

(i)

Includes costs to achieve the Progress Energy merger of $166 million recorded in Operating Expense for the three months ended December 31, 2012, and $628 million recorded in Operating Expense for the year ended December 31, 2012.

(j)

Includes a gain from asset sales of $105 million for the three months and year ended December 31, 2013.

(k)

Includes a tax benefit of $27 million for the three months ended December 31, 2013, and $113 million for the year ended December 31, 2013, on costs to achieve the Progress Energy merger.

(l)

Includes a tax benefit of $73 million for the three months ended December 31, 2012, and $239 million for the year ended December 31, 2012, on costs to achieve the Progress Energy merger.

(m)

Includes tax expense of $40 million for the three months and year ended December 31, 2013, on a gain from asset sales.

 

 

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)






















Years Ended December 31,









2013

2012

2011

Operating Revenues









Regulated electric






$ 20,439

$ 15,621

$ 10,589

Nonregulated electric, natural gas, and other


3,648

3,534

3,383

Regulated natural gas






511

469

557

Total operating revenues






24,598

19,624

14,529

Operating Expenses









Fuel used in electric generation and purchased power - regulated

7,108

5,582

3,309

Fuel used in electric generation and purchased power - nonregulated

1,822

1,722

1,488

Cost of natural gas and coal sold






254

264

348

Operation, maintenance and other






5,910

5,006

3,770

Depreciation and amortization






2,808

2,289

1,806

Property and other taxes






1,299

985

704

Impairment charges






399

666

335

Total operating expenses






19,600

16,514

11,760

(Losses) Gains on Sales of Other Assets and Other, net

(16)

16

8

Operating Income







4,982

3,126

2,777

Other Income and Expenses









Equity in earnings of unconsolidated affiliates


122

148

160

Gains on sales of unconsolidated affiliates

100

22

11

Other income and expenses, net






262

397

376

Total other income and expenses





484

567

547

Interest Expense







1,546

1,242

859

Income From Continuing Operations Before Income Taxes

3,920

2,451

2,465

Income Tax Expense from Continuing Operations

1,261

705

752

Income From Continuing Operations





2,659

1,746

1,713

Income From Discontinued Operations, net of tax

17

36

1

Net Income







2,676

1,782

1,714

Less: Net Income Attributable to Noncontrolling Interests

11

14

8

Net Income Attributable to Duke Energy Corporation

$ 2,665

$ 1,768

$ 1,706























Earnings Per Share - Basic and Diluted





Income from continuing operations attributable to Duke Energy Corporation common shareholders


Basic







$ 3.74

$ 3.01

$ 3.83


Diluted







$ 3.74

$ 3.01

$ 3.83

Income from discontinued operations attributable to Duke Energy Corporation common shareholders


Basic







$ 0.03

$ 0.06

$ -


Diluted







$ 0.02

$ 0.06

$ -

Net Income attributable to Duke Energy Corporation common shareholders





Basic







$ 3.77

$ 3.07

$ 3.83


Diluted







$ 3.76

$ 3.07

$ 3.83

Weighted-average shares outstanding









Basic







706

574

444


Diluted







706

575

444

 

 

DUKE ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In millions)











December 31,




2013


2012

ASSETS





Current Assets





Cash and cash equivalents


$ 1,501


$ 1,424

Short-term investments


44


333

Receivables (net of allowance for doubtful accounts of






$30 at December 31, 2013 and $34 at December 31, 2012)


1,286


1,516

Restricted receivables of variable interest entities (net of allowance for






doubtful accounts of $43 at December 31, 2013 and $44 at December 31, 2012)


1,719


1,201

Inventory


3,250


3,223

Regulatory assets


895


737

Other


1,821


1,688


Total current assets


10,516


10,122

Investments and Other Assets





Investments in equity method unconsolidated affiliates


390


483

Nuclear decommissioning trust funds


5,132


4,242

Goodwill


16,340


16,365

Other


3,539


2,904


Total investments and other assets


25,401


23,994

Property, Plant and Equipment





Cost


103,115


100,391

Accumulated depreciation and amortization


(33,625)


(31,969)

Generation facilities to be retired, net


-


136


Net property, plant and equipment


69,490


68,558

Regulatory Assets and Deferred Debits





Regulatory assets


9,191


11,004

Other


181


178


Total regulatory assets and deferred debits


9,372


11,182

Total Assets


$ 114,779


$ 113,856

LIABILITIES AND EQUITY





Current Liabilities





Accounts payable


$ 2,391


$ 2,444

Notes payable and commercial paper


839


1,057

Taxes accrued


551


459

Interest accrued


440


448

Current maturities of long-term debt


2,104


3,110

Regulatory liabilities


316


156

Other


2,003


2,355


Total current liabilities


8,644


10,029

Long-term Debt


38,152


36,351

Deferred Credits and Other Liabilities





Deferred income taxes


12,097


10,490

Investment tax credits


442


458

Accrued pension and other post-retirement benefit costs


1,322


2,520

Asset retirement obligations


4,950


5,169

Regulatory liabilities


5,949


5,584

Other


1,815


2,221


Total deferred credits and other liabilities


26,575


26,442

Commitments and Contingencies





Preferred Stock of Subsidiaries


-


93

Equity





Common stock, $0.001 par value, 2 billion shares authorized; 706 million






and 704 million shares outstanding at December 31, 2013 and






December 31, 2012, respectively


1


1

Additional paid-in capital


39,365


39,279

Retained earnings


2,363


1,889

Accumulated other comprehensive loss


(399)


(306)


Total Duke Energy Corporation shareholders' equity


41,330


40,863

Noncontrolling interests


78


78


Total equity


41,408


40,941

Total Liabilities and Equity


$ 114,779


$ 113,856

 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)







Years Ended December 31,







2013


2012










CASH FLOWS FROM OPERATING ACTIVITIES






Net income



$ 2,676


$ 1,782


Adjustments to reconcile net income to net cash provided by







operating activities:


3,692


3,462





Net cash provided by operating activities


6,368


5,244










CASH FLOWS FROM INVESTING ACTIVITIES









Net cash used in investing activities


(4,964)


(6,197)










CASH FLOWS FROM FINANCING ACTIVITIES









Net cash (used in) provided by financing activities

(1,327)


267











Net increase (decrease) in cash and cash equivalents


77


(686)


Cash and cash equivalents at beginning of period


1,424


2,110


Cash and cash equivalents at end of period


$ 1,501


$ 1,424

 

 

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013






















Three Months Ended


Years Ended




December 31,


December 31,










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather






%


Weather




2013


2012


Inc. (Dec.)


Normal (2)


2013


2012


Inc. (Dec.)


Normal (2)



















GWH Sales (1)


















Residential


18,597


17,551


6.0%


0.7%


80,593


78,651


2.5%


0.3%


General Service


18,350


17,695


3.7%


1.2%


75,513


75,172


0.5%


0.8%


Industrial


12,590


12,440


1.2%


0.5%


51,056


50,819


0.5%


0.9%


Other Energy Sales


152


151


0.7%


-


603


603


0.0%


-


Unbilled Sales


33


346


(90.5%)


N/A


(275)


887


(131.0%)


N/A




















   Total Retail Sales


49,722


48,183


3.2%


0.9%


207,490


206,132


0.7%


0.6%




















Special Sales (3)


8,486


7,732


9.8%




34,750


29,984


15.9%






















   Total Consolidated Electric Sales - Regulated Utilities


58,208


55,915


4.1%




242,240


236,116


2.6%







































Average Number of Customers


















Residential


6,246,247


6,179,598


1.1%




6,217,351


6,165,623


0.8%




General Service


939,601


931,847


0.8%




936,529


929,470


0.8%




Industrial


18,433


18,759


(1.7%)




18,572


18,867


(1.6%)




Other Energy Sales


22,371


22,106


1.2%




22,206


22,070


0.6%






















   Total Regular Sales


7,226,652


7,152,310


1.0%




7,194,658


7,136,030


0.8%






















Special Sales


59


64


(7.8%)




60


67


(10.4%)






















   Total Average Number of Customers - Regulated Utilities


7,226,711


7,152,374


1.0%




7,194,718


7,136,097


0.8%

























































Heating and Cooling Degree Days


















Carolinas - Actual


















Heating Degree Days


1,214


1,161


4.6%




3,282


2,601


26.2%




Cooling Degree Days


66


42


57.1%




1,403


1,727


(18.8%)






















Variance from Normal


















Heating Degree Days


(1.0%)


(4.3%)


n/a




4.0%


(17.8%)


n/a




Cooling Degree Days


17.9%


(28.5%)


n/a




(16.1%)


2.4%


n/a






















Midwest - Actual


















Heating Degree Days


1,571


1,355


15.9%




4,129


3,122


32.3%




Cooling Degree Days


25


5


400.0%




1,079


1,437


(24.9%)






















Variance from Normal


















Heating Degree Days


13.2%


(2.2%)


n/a




9.1%


(18.0%)


n/a




Cooling Degree Days


8.7%


(77.3%)


n/a




(8.0%)


26.0%


n/a








































Florida - Actual


















Heating Degree Days


85


156


(45.5%)




368


367


0.3%




Cooling Degree Days


564


420


34.3%




3,141


3,110


1.0%






















Variance from Normal


















Heating Degree Days


(49.7%)


(7.3%)


n/a




(21.3%)


(21.5%)


n/a




Cooling Degree Days


27.9%


(4.8%)


n/a




4.7%


3.7%


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) Fourth quarter 2013 and year-to-date 2013 include 100 GWH and 1,685 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utilities segment earnings. Fourth quarter 2012 and year-to-date 2012 include 103 GWH and 998 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utilities segment earnings.

 

 

Duke Energy Carolinas

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013






















Three Months Ended


Years Ended




December 31,


December 31,










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


6,021


5,745


4.8%




26,895


26,279


2.3%




General Service


6,649


6,419


3.6%




27,764


27,476


1.0%




Industrial


5,204


5,079


2.5%




21,070


20,978


0.4%




Other Energy Sales


74


73


1.4%




293


290


1.0%




Unbilled Sales


358


242


47.9%




(154)


209


(173.7%)




   Total Regular Electric Sales


18,306


17,558


4.3%


2.7%


75,868


75,232


0.8%


1.1%




















Special Sales (3)


2,101


1,666


26.1%




9,922


6,130


61.9%






















   Total Consolidated Electric Sales - Duke Energy Carolinas


20,407


19,224


6.2%




85,790


81,362


5.4%







































Average Number of Customers


















Residential


2,076,363


2,056,785


1.0%




2,068,329


2,052,799


0.8%




General Service


340,283


337,316


0.9%




339,109


336,756


0.7%




Industrial


6,551


6,679


(1.9%)




6,600


6,749


(2.2%)




Other Energy Sales


14,480


14,363


0.8%




14,403


14,342


0.4%






















   Total Regular Sales


2,437,677


2,415,143


0.9%




2,428,441


2,410,646


0.7%






















Special Sales


22


21


4.8%




23


23


0.0%






















Total Average Number of Customers - Duke Energy Carolinas


2,437,699


2,415,164


0.9%




2,428,464


2,410,669


0.7%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


1,260


1,206


4.5%




3,378


2,694


25.4%




Cooling Degree Days


51


24


112.5%




1,305


1,568


(16.8%)






















Variance from Normal


















Heating Degree Days


0.2%


(3.5%)


n/a




4.6%


(16.5%)


n/a




Cooling Degree Days


18.9%


(44.7%)


n/a




(18.0%)


1.3%


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) Fourth quarter 2013 and year-to-date 2013 include 100 GWH and 781 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings. Fourth quarter 2012 and year-to-date 2012 include 103 GWH and 421 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings.

 

 

Duke Energy Progress

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013





















Three Months Ended


Years Ended




December 31,


December 31,










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales


















Residential


3,948


3,748


5.3%




17,323


16,663


4.0%




General Service


3,628


3,497


3.7%




15,066


15,062


0.0%




Industrial


2,538


2,624


(3.3%)




10,624


10,508


1.1%




Other Energy Sales


30


31


(3.2%)




120


122


(1.6%)




Unbilled Sales


93


372


(75.0%)




(12)


165


107.3%




   Total Regular Electric Sales


10,237


10,272


(0.3%)


(0.7%)


43,121


42,520


1.4%


1.0%




















Special Sales (1)


4,206


4,153


1.3%




17,083


15,870


7.6%






















   Total Consolidated Electric Sales - Duke Energy Progress


14,443


14,425


0.1%




60,204


58,390


3.1%

























































Average Number of Customers


















Residential


1,247,807


1,234,321


1.1%




1,242,328


1,231,065


0.9%




General Service


222,146


220,156


0.9%




221,553


219,477


0.9%




Industrial


4,318


4,420


(2.3%)




4,357


4,431


(1.7%)




Other Energy Sales


1,778


1,811


(1.8%)




1,801


1,836


(1.9%)






















   Total Regular Sales


1,476,049


1,460,708


1.1%




1,470,039


1,456,809


0.9%






















Special Sales


15


15


0.0%




15


18


(16.7%)






















Total Average Number of Customers - Duke Energy Progress


1,476,064


1,460,723


1.1%




1,470,054


1,456,827


0.9%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


1,169


1,116


4.7%




3,187


2,508


27.1%




Cooling Degree Days


81


60


35.0%




1,502


1,887


(20.4%)






















Variance from Normal


















Heating Degree Days


(2.2%)


(5.0%)


n/a




3.3%


(19.1%)


n/a




Cooling Degree Days


17.4%


(18.9%)


n/a




(14.3%)


3.3%


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) Year-to-date 2013 includes 904 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings. Year-to-date 2012 includes 577 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings.

 

 

Duke Energy Florida

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013






















Three Months Ended


Years Ended




December 31,


December 31,










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


4,560


4,309


5.8%




18,508


18,251


1.4%




General Service


3,767


3,661


2.9%




14,877


14,945


(0.5%)




Industrial


797


776


2.7%




3,206


3,160


1.5%




Other Energy Sales


7


6


16.7%




25


25


0.0%




Unbilled Sales


(644)


(506)


27.3%




(161)


299


(153.8%)




   Total Regular Sales


8,487


8,246


2.9%


(0.1%)


36,455


36,680


(0.6%)


(0.8%)




















Special Sales (3)


355


383


(7.3%)




1,519


1,763


(13.8%)






















   Total Electric Sales - Duke Energy Florida


8,842


8,629


2.5%




37,974


38,443


(1.2%)

























































Average Number of Customers


















Residential


1,491,494


1,467,235


1.7%




1,480,993


1,464,154


1.2%




General Service


190,531


188,266


1.2%




189,424


187,445


1.1%




Industrial


2,318


2,366


(2.0%)




2,342


2,371


-1.2%




Other Energy Sales


1,559


1,575


(1.0%)




1,564


1,561


0.2%






















   Total Regular Sales


1,685,902


1,659,442


1.6%




1,674,323


1,655,531


1.1%






















Special Sales


15


18


(16.7%)




15


15


0.0%






















Total Average Number of Customers - Duke Energy Florida


1,685,917


1,659,460


1.6%




1,674,338


1,655,546


1.1%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


85


156


(45.5%)




368


367


0.3%




Cooling Degree Days


564


420


34.3%




3,141


3,110


1.0%






















Variance from Normal


















Heating Degree Days


(49.7%)


(7.3%)


n/a




(21.3%)


(21.5%)


n/a




Cooling Degree Days


27.9%


(4.8%)


n/a




4.7%


3.7%


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) Includes both billed and unbilled.

















 

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013








































Three Months Ended


Years Ended




December 31,


December 31,










% Inc. (Dec.)








% Inc. (Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


1,958


1,821


7.5%




8,719


8,591


1.5%




General Service


2,281


2,187


4.3%




9,447


9,375


0.8%




Industrial


1,455


1,421


2.4%




5,771


5,761


0.2%




Other Energy Sales


28


28


0.0%




112


113


(0.9%)




Unbilled Sales


76


98


(22.4%)




(6)


79


(107.6%)






















   Total Regular Electric Sales


5,798


5,555


4.4%


0.4%


24,043


23,919


0.5%


0.5%




















Special Sales


192


189


1.6%




514


425


20.9%






















   Total Electric Sales - Duke Energy Ohio


5,990


5,744


4.3%




24,557


24,344


0.9%







































Average Number of Customers


















Residential


739,369


735,557


0.5%




737,399


734,270


0.4%




General Service


86,327


85,938


0.5%




86,188


85,672


0.6%




Industrial


2,531


2,571


(1.6%)




2,547


2,582


(1.4%)




Other Energy


3,066


2,916


5.1%




2,965


2,898


2.3%






















   Total Regular Sales


831,293


826,982


0.5%




829,099


825,422


0.4%






















Special Sales


1


1


0.0%




1


1


0.0%






















Total Average Number of Electric Customers - Duke Energy Ohio


831,294


826,983


0.5%




829,100


825,423


0.4%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


1,441


1,284


12.2%




3,843


3,002


28.0%




Cooling Degree Days


25


5


400.0%




1,073


1,389


(22.8%)






















Variance from Normal


















Heating Degree Days


7.9%


(3.7%)


n/a




5.7%


(17.9%)


n/a




Cooling Degree Days


13.6%


(77.3%)


n/a




(8.7%)


21.2%


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).

 

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013








































Three Months Ended


Years Ended




December 31,


December 31,










% Inc. (Dec.)








% Inc. (Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















MCF Sales (1)


















Residential


9,359,700


8,316,121


12.5%




37,840,736


30,481,386


24.1%




General Service


5,873,264


5,354,180


9.7%




23,329,465


19,365,863


20.5%




Industrial


1,677,360


1,397,562


20.0%




6,311,201


5,125,512


23.1%




Other Energy Sales


5,897,994


5,552,991


6.2%




21,496,630


21,744,410


(1.1%)




Unbilled Sales


4,864,000


4,611,000


5.5%




136,000


970,000


(86.0%)






















   Total Gas Sales - Duke Energy Ohio


27,672,318


25,231,854


9.7%


0.2%


89,114,032


77,687,171


14.7%


1.4%





































Average Number of Customers


















Residential


471,390


468,878


0.5%




469,887


468,572


0.3%




General Service


43,502


43,691


(0.4%)




43,351


43,517


(0.4%)




Industrial


1,643


1,658


(0.9%)




1,635


1,659


(1.4%)




Other Energy


162


167


(3.0%)




165


170


(2.9%)






















Total Average Number of Gas Customers - Duke Energy Ohio


516,697


514,394


0.4%




515,038


513,918


0.2%







































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


1,441


1,284


12.2%




3,843


3,002


28.0%




Cooling Degree Days


25


5


400.0%




1,073


1,389


(22.8%)






















Variance from Normal


















Heating Degree Days


7.9%


(3.7%)


n/a




5.7%


(17.9%)


n/a




Cooling Degree Days


13.6%


(77.3%)


n/a




-8.7%


21.2%


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).

 

 

Duke Energy Indiana

Quarterly Highlights

Supplemental Regulated Utilities Information

December 2013








































Three Months Ended


Years Ended




December 31,


December 31,










% Inc. (Dec.)








% Inc. (Dec.)








%


Weather






%


Weather




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


2,110


1,928


9.4%




9,148


8,867


3.2%




General Service


2,025


1,931


4.9%




8,359


8,314


0.5%




Industrial


2,596


2,540


2.2%




10,385


10,412


(0.3%)




Other Energy Sales


13


13


0.0%




53


53


0.0%




Unbilled Sales


150


140


7.1%




58


135


(57.0%)






















   Total Regular Electric Sales


6,894


6,552


5.2%


0.0%


28,003


27,781


0.8%


0.4%




















Special Sales


1,632


1,341


21.7%




5,712


5,796


(1.4%)






















   Total Electric Sales - Duke Energy Indiana


8,526


7,893


8.0%




33,715


33,577


0.4%







































Average Number of Customers


















Residential


691,214


685,700


0.8%




688,302


683,335


0.7%




General Service


100,314


100,171


0.1%




100,255


100,120


0.1%




Industrial


2,715


2,723


(0.3%)




2,726


2,734


(0.3%)




Other Energy


1,488


1,441


3.3%




1,473


1,433


2.8%






















   Total Regular Sales


795,731


790,035


0.7%




792,756


787,622


0.7%






















Special Sales


6


9


(33.3%)




6


10


(40.0%)






















Total Average Number of Electric Customers - Duke Energy Indiana


795,737


790,044


0.7%




792,762


787,632


0.7%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


1,702


1,426


19.4%




4,415


3,242


36.2%




Cooling Degree Days


25


5


400.0%




1,084


1,483


(26.9%)






















Variance from Normal


















Heating Degree Days


18.2%


(1.0%)


n/a




12.3%


(18.1%)


n/a




Cooling Degree Days


4.2%


(78.3%)


n/a




(7.4%)


30.8%


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).

 

 

SOURCE Duke Energy



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