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Related Party Transactions | 6 Months Ended
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Jun. 30, 2018
Related Party Transactions [Abstract] |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Subsidiary Registrants engage in related party transactions in accordance with applicable state and federal commission regulations. Refer to the Condensed Consolidated Balance Sheets of the Subsidiary Registrants for balances due to or due from related parties. Material amounts related to transactions with related parties included on the Condensed Consolidated Statements of Operations and Comprehensive Income are presented in the following table.
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Duke Energy Carolinas |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 213 |  |  | $ | 218 |  |  | $ | 433 |  |  | $ | 439 |
Indemnification coverages(b) | 5 |  |  | 6 |  |  | 11 |  |  | 12 |
JDA revenue(c) | 19 |  |  | 17 |  |  | 53 |  |  | 33 |
JDA expense(c) | 19 |  |  | 21 |  |  | 73 |  |  | 52 |
Intercompany natural gas purchases(d) | 4 |  |  | 1 |  |  | 8 |  |  | 2 |
Progress Energy |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 206 |  |  | $ | 178 |  |  | $ | 397 |  |  | $ | 348 |
Indemnification coverages(b) | 9 |  |  | 9 |  |  | 17 |  |  | 19 |
JDA revenue(c) | 19 |  |  | 21 |  |  | 73 |  |  | 52 |
JDA expense(c) | 19 |  |  | 17 |  |  | 53 |  |  | 33 |
Intercompany natural gas purchases(d) | 19 |  |  | 19 |  |  | 38 |  |  | 38 |
Duke Energy Progress |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 126 |  |  | $ | 109 |  |  | $ | 244 |  |  | $ | 209 |
Indemnification coverages(b) | 3 |  |  | 3 |  |  | 6 |  |  | 7 |
JDA revenue(c) | 19 |  |  | 21 |  |  | 73 |  |  | 52 |
JDA expense(c) | 19 |  |  | 17 |  |  | 53 |  |  | 33 |
Intercompany natural gas purchases(d) | 19 |  |  | 19 |  |  | 38 |  |  | 38 |
Duke Energy Florida |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 80 |  |  | $ | 69 |  |  | $ | 153 |  |  | $ | 139 |
Indemnification coverages(b) | 6 |  |  | 6 |  |  | 11 |  |  | 12 |
Duke Energy Ohio |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 90 |  |  | $ | 93 |  |  | $ | 179 |  |  | $ | 185 |
Indemnification coverages(b) | 1 |  |  | 1 |  |  | 2 |  |  | 2 |
Duke Energy Indiana |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 96 |  |  | $ | 92 |  |  | $ | 197 |  |  | $ | 187 |
Indemnification coverages(b) | 2 |  |  | 2 |  |  | 4 |  |  | 4 |
Piedmont |  |  |  |  |  |  |
Corporate governance and shared service expenses(a) | $ | 40 |  |  | $ | 9 |  |  | $ | 76 |  |  | $ | 14 |
Indemnification coverages(b) | — |  |  | — |  |  | 1 |  |  | 1 |
Intercompany natural gas sales(d) | 23 |  |  | 20 |  |  | 46 |  |  | 40 |
(a) | The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(b) | The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(c) | Duke Energy Carolinas and Duke Energy Progress participate in a Joint Dispatch Agreement (JDA), which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income.
(d) | Piedmont provides long–term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas–fired generation facilities. Piedmont records the sales in Operating revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Condensed Consolidated Statements of Operations and Comprehensive Income. These intercompany revenues and expenses are eliminated in consolidation.
In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions and their proportionate share of certain charged expenses. These transactions of the Subsidiary Registrants were not material for the three and six months ended June 30, 2018, and 2017. As discussed in Note 12, certain trade receivables have been sold by Duke Energy Ohio and Duke Energy Indiana to Cinergy Receivables Company LLC (CRC), an indirect subsidiary of Duke Energy. The proceeds obtained from the sales of receivables are largely cash but also include a subordinated note from CRC for a portion of the purchase price. Equity Method Investments Piedmont has related party transactions as a customer of its equity method investments in natural gas storage and transportation facilities. The following table presents expenses for the three and six months ended June 30, 2018, and 2017, which are included in Cost of natural gas on Piedmont's Condensed Consolidated Statements of Operations and Comprehensive Income.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | Type of expense | 2018 | 2017 |  | 2018 | 2017
Cardinal | Transportation Costs | $ | 1 |  | $ | 2 |  |  | $ | 3 |  | $ | 4 |
Pine Needle | Natural Gas Storage Costs | 2 |  | 2 |  |  | 4 |  | 4 |
Hardy Storage | Natural Gas Storage Costs | 3 |  | 3 |  |  | 5 |  | 5 |
Total |  | $ | 6 |  | $ | 7 |  |  | $ | 12 |  | $ | 13 |
Piedmont had accounts payable to its equity method investments of $2 million at June 30, 2018, and December 31, 2017, related to these transactions. These amounts are included in Accounts payable on the Condensed Consolidated Balance Sheets. Intercompany Income Taxes Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.
| Duke |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
June 30, 2018 |  |  |  |  |  |  |
Intercompany income tax receivable | $ | — |  | $ | 273 |  | $ | — |  | $ | 140 |  | $ | — |  | $ | — |  | $ | 12 |
Intercompany income tax payable | 22 |  | — |  | 24 |  | — |  | 3 |  | 14 |  | — |
December 31, 2017 |  |  |  |  |  |  |
Intercompany income tax receivable | $ | — |  | $ | 168 |  | $ | — |  | $ | 44 |  | $ | 22 |  | $ | — |  | $ | 7 |
Intercompany income tax payable | 44 |  | — |  | 21 |  | — |  | — |  | 35 |  | — |

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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