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Income Taxes And Other Taxes
 3 Months Ended
Mar. 31, 2013
Income Taxes And Other Taxes [Abstract]  
Income Taxes And Other Taxes

16. INCOME TAXES AND OTHER TAXES

INCOME TAXES

Duke Energy and its subsidiaries file income tax returns in the U.S. with federal and various state governmental authorities, and in certain foreign jurisdictions. The taxable income of Duke Energy and its subsidiaries is reflected in Duke Energy's U.S. federal and state income tax returns. These subsidiaries have a tax sharing agreement with Duke Energy where the separate return method is used to allocate tax expenses and benefits to the subsidiaries whose investments or results of operations provide these tax expenses and benefits. The accounting for income taxes essentially represents the income taxes that each of these subsidiaries would incur if it were a separate company filing its own tax return as a C-Corporation.

The effective tax rates for each of the Duke Energy Registrants are included in the following table.

       
   Three Months Ended March 31,
  2013 2012 
Duke Energy  34.2% 25.8%
Duke Energy Carolinas  37.1% 36.3%
Progress Energy  39.6% 35.1%
Duke Energy Progress  38.1% 32.0%
Duke Energy Florida  39.1% 36.6%
Duke Energy Ohio  37.1% 37.0%
Duke Energy Indiana  37.5% 41.0%
       
       

The increase in the effective tax rate for Duke Energy is primarily due to lower pre-tax income in 2012 due to the Edwardsport IGCC project impairment, Progress Energy results of operations included in 2013, impact of lower AFUDC equity in 2013, and a reduction of foreign deferred taxes in 2012 due to changes in foreign tax rates.

The increase in the effective tax rate for Progress Energy is primarily due to the impact of lower AFUDC equity in 2013 and the ESOP dividend deduction being recorded at Duke Energy in 2013 as a result of the merger.

The increase in the effective tax rate for Duke Energy Progress and Duke Energy Florida is primarily due to the favorable prior-year tax benefit related to the manufacturing deduction and the impact of lower AFUDC equity in 2013.

 

EXCISE TAXES

Certain excise taxes levied by state or local governments are collected by the Duke Energy Registrants from their customers. These taxes, which are required to be paid regardless of the Duke Energy Registrants' ability to collect from the customer, are accounted for on a gross basis. When the Duke Energy Registrants act as an agent, and the tax is not required to be remitted if it is not collected from the customer, the taxes are accounted for on a net basis. The Duke Energy Registrants' excise taxes accounted for on a gross basis and recorded as operating revenues in the Condensed Consolidated Statements of Operations were as follows:

       
   Three Months Ended March 31,
(in millions)  2013 2012
Duke Energy $ 149$ 77
Duke Energy Carolinas   42  39
Progress Energy   67  69
Duke Energy Progress   28  26
Duke Energy Florida   39  43
Duke Energy Ohio   31  30
Duke Energy Indiana   9  8