INCOME TAXES

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Duke Energy	34.0	%	30.9	%	31.4	%	32.3	%
Duke Energy Carolinas	33.9	%	37.9	%	33.7	%	37.5	%
Progress Energy	37.1	%	38.8	%	37.3	%	38.1	%
Duke Energy Progress	36.3	%	35.7	%	36.6	%	37.3	%
Duke Energy Florida	38.5	%	40.0	%	38.6	%	40.0	%
Duke Energy Ohio	38.3	%	35.9	%	34.9	%	36.5	%
Duke Energy Indiana	31.6	%	36.6	%	35.2	%	37.2	%

The increase in the effective tax rate for Duke Energy for the three months ended September 30, 2014 is primarily due to a favorable deferred state tax adjustment in the third quarter of 2013.

The decrease in the effective tax rate for Duke Energy Carolinas for the three months ended September 30, 2014 is primarily due to an increase in the tax benefit related to the manufacturing deduction in 2014 as the prior year deduction was limited by taxable income. The decrease in the effective tax rate for Duke Energy Carolinas for the nine months ended September 30, 2014 is primarily due to favorable audit settlements, changes in apportionment related to state income tax, and the tax benefit related to the manufacturing deduction in 2014 as the prior year deduction was limited by taxable income.

The decrease in the effective tax rate for Progress Energy for the three months ended September 30, 2014 is primarily due to certain nondeductible book depreciation.

The decrease in the effective tax rate for Duke Energy Florida for the three and nine months ended September 30, 2014 is primarily due to certain nondeductible book depreciation.

The increase in the effective tax rate for Duke Energy Ohio for the three months ended September 30, 2014 is primarily due to an increase in the tax benefit related to the manufacturing deduction. The decrease in the effective tax rate for Duke Energy Ohio for the nine months ended September 30, 2014 is primarily due to certain nondeductible book depreciation.

The decrease in the effective tax rate for Duke Energy Indiana for the three and nine months ended September 30, 2014 is primarily due to a reduction in the statutory Indiana corporate income tax rate and a prior period audit settlement.