XML 72 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Debt and Credit Facilities | 12 Months Ended
--- | ---
Dec. 31, 2018
Debt Disclosure [Abstract] |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES Summary of Debt and Related Terms The following tables summarize outstanding debt.
| December 31, 2018
| Weighted |  |  |  |  |  |  |  |  |  |
| Average |  |  |  | Duke |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Interest |  |  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Rate |  |  | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
Unsecured debt, maturing 2019-2078 | 4.26 | % |  | $ | 20,955 |  | $ | 1,150 |  | $ | 3,800 |  | $ | 50 |  | $ | 350 |  | $ | 1,000 |  | $ | 408 |  | $ | 2,150 |
Secured debt, maturing 2020-2037 | 3.69 | % |  | 4,297 |  | 450 |  | 1,703 |  | 300 |  | 1,403 |  | — |  | — |  | — |
First mortgage bonds, maturing 2019-2048(a) | 4.32 | % |  | 25,628 |  | 8,759 |  | 13,100 |  | 7,574 |  | 5,526 |  | 1,099 |  | 2,670 |  | — |
Capital leases, maturing 2019-2051(b) | 5.06 | % |  | 941 |  | 109 |  | 251 |  | 137 |  | 114 |  | 2 |  | 10 |  | — |
Tax-exempt bonds, maturing 2019-2041(c) | 3.40 | % |  | 941 |  | 243 |  | 48 |  | 48 |  | — |  | 77 |  | 572 |  | — |
Notes payable and commercial paper(d) | 2.73 | % |  | 4,035 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Money pool/intercompany borrowings |  |  | — |  | 739 |  | 1,385 |  | 444 |  | 108 |  | 299 |  | 317 |  | 198 |
Fair value hedge carrying value adjustment |  |  | 5 |  | 5 |  | — |  | — |  | — |  | — |  | — |  | — |
Unamortized debt discount and premium, net(e) |  |  | 1,434 |  | (23 | ) | (29 | ) | (15 | ) | (11 | ) | (31 | ) | (8 | ) | (1 | )
Unamortized debt issuance costs(f) |  |  | (297 | ) | (54 | ) | (112 | ) | (40 | ) | (61 | ) | (7 | ) | (20 | ) | (11 | )
Total debt | 4.13 | % |  | $ | 57,939 |  | $ | 11,378 |  | $ | 20,146 |  | $ | 8,498 |  | $ | 7,429 |  | $ | 2,439 |  | $ | 3,949 |  | $ | 2,336 |
Short-term notes payable and commercial paper |  |  | (3,410 | ) | — |  | — |  | — |  | — |  | — |  | — |  | — |
Short-term money pool/intercompany borrowings |  |  | — |  | (439 | ) | (1,235 | ) | (294 | ) | (108 | ) | (274 | ) | (167 | ) | (198 | )
Current maturities of long-term debt(g) |  |  | (3,406 | ) | (6 | ) | (1,672 | ) | (603 | ) | (270 | ) | (551 | ) | (63 | ) | (350 | )
Total long-term debt(g) |  |  | $ | 51,123 |  | $ | 10,933 |  | $ | 17,239 |  | $ | 7,601 |  | $ | 7,051 |  | $ | 1,614 |  | $ | 3,719 |  | $ | 1,788 |
(a) | Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b) | Duke Energy includes $63 million and $531 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as capital leases in their respective financial statements because of grandfathering provisions in GAAP.
(c) | Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.
(d) | Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 16 days.
(e) | Duke Energy includes $1,380 million and $156 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(f) | Duke Energy includes $41 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g) | Refer to Note 17 for additional information on amounts from consolidated VIEs.
| December 31, 2017
| Weighted |  |  |  |  |  |  |  |  |  |
| Average |  |  |  | Duke |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Interest |  |  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Rate |  |  | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
Unsecured debt, maturing 2018-2073 | 4.17 | % |  | $ | 20,409 |  | $ | 1,150 |  | $ | 3,950 |  | $ | — |  | $ | 550 |  | $ | 900 |  | $ | 411 |  | $ | 2,050 |
Secured debt, maturing 2018-2037 | 3.15 | % |  | 4,458 |  | 450 |  | 1,757 |  | 300 |  | 1,457 |  | — |  | — |  | — |
First mortgage bonds, maturing 2018-2047(a) | 4.51 | % |  | 23,529 |  | 7,959 |  | 11,801 |  | 6,776 |  | 5,025 |  | 1,100 |  | 2,669 |  | — |
Capital leases, maturing 2018-2051(b) | 4.55 | % |  | 1,000 |  | 61 |  | 269 |  | 139 |  | 129 |  | 5 |  | 11 |  | — |
Tax-exempt bonds, maturing 2019-2041(c) | 3.23 | % |  | 941 |  | 243 |  | 48 |  | 48 |  | — |  | 77 |  | 572 |  | — |
Notes payable and commercial paper(d) | 1.57 | % |  | 2,788 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Money pool/intercompany borrowings |  |  | — |  | 404 |  | 955 |  | 390 |  | — |  | 54 |  | 311 |  | 364 |
Fair value hedge carrying value adjustment |  |  | 6 |  | 6 |  | — |  | — |  | — |  | — |  | — |  | — |
Unamortized debt discount and premium, net(e) |  |  | 1,582 |  | (19 | ) | (30 | ) | (16 | ) | (10 | ) | (33 | ) | (9 | ) | (1 | )
Unamortized debt issuance costs(f) |  |  | (271 | ) | (47 | ) | (108 | ) | (40 | ) | (56 | ) | (7 | ) | (21 | ) | (12 | )
Total debt | 4.09 | % |  | $ | 54,442 |  | $ | 10,207 |  | $ | 18,642 |  | $ | 7,597 |  | $ | 7,095 |  | $ | 2,096 |  | $ | 3,944 |  | $ | 2,401 |
Short-term notes payable and commercial paper |  |  | (2,163 | ) | — |  | — |  | — |  | — |  | — |  | — |  | — |
Short-term money pool/intercompany borrowings |  |  | — |  | (104 | ) | (805 | ) | (240 | ) | — |  | (29 | ) | (161 | ) | (364 | )
Current maturities of long-term debt(g) |  |  | (3,244 | ) | (1,205 | ) | (771 | ) | (3 | ) | (768 | ) | (3 | ) | (3 | ) | (250 | )
Total long-term debt(g) |  |  | $ | 49,035 |  | $ | 8,898 |  | $ | 17,066 |  | $ | 7,354 |  | $ | 6,327 |  | $ | 2,064 |  | $ | 3,780 |  | $ | 1,787 |
(a) | Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b) | Duke Energy includes $81 million and $603 million of capital lease purchase accounting adjustments related to Duke Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as capital leases in their respective financial statements because of grandfathering provisions in GAAP.
(c) | Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.
(d) | Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper programs was 14 days.
(e) | Duke Energy includes $1,509 million and $176 million purchase accounting adjustments related to the mergers with Progress Energy and Piedmont, respectively.
(f) | Duke Energy includes $47 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g) | Refer to Note 17 for additional information on amounts from consolidated VIEs.
Current Maturities of Long-Term Debt The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.
(in millions) | Maturity Date |  | Interest Rate |  |  | December 31, 2018 |
Unsecured Debt |  |  |  |  |
Progress Energy | March 2019 |  | 7.050 | % |  | $ | 450 |
Duke Energy (Parent) | September 2019 |  | 5.050 | % |  | 500 |
Piedmont | September 2019 |  | 3.155 | % | (b) | 350 |
Duke Energy Kentucky | October 2019 |  | 4.65 | % |  | 100 |
Progress Energy | December 2019 |  | 4.875 | % |  | 350 |
First Mortgage Bonds |  |  |  |  |
Duke Energy Progress | January 2019 |  | 5.300 | % |  | 600 |
Duke Energy Ohio | April 2019 |  | 5.450 | % |  | 450 |
Other(a) |  |  |  |  | 606 |
Current maturities of long-term debt |  |  |  |  | $ | 3,406 |
(a) | Includes capital lease obligations, amortizing debt and small bullet maturities.
(b) | Debt has a floating interest rate.
Maturities and Call Options The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable and commercial paper and money pool borrowings for the Subsidiary Registrants.
| December 31, 2018
|  |  | Duke |  |  |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  |
| Duke |  |  | Energy |  |  | Progress |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  |
(in millions) | Energy(a) |  |  | Carolinas |  |  | Energy |  |  | Progress |  |  | Florida |  |  | Ohio |  |  | Indiana |  |  | Piedmont |
2019 | $ | 3,408 |  |  | $ | 6 |  |  | $ | 1,674 |  |  | $ | 603 |  |  | $ | 270 |  |  | 552 |  |  | $ | 63 |  |  | $ | 350 |
2020 | 3,765 |  |  | 907 |  |  | 926 |  |  | 354 |  |  | 572 |  |  | — |  |  | 503 |  |  | — |
2021 | 4,803 |  |  | 503 |  |  | 2,004 |  |  | 904 |  |  | 600 |  |  | 50 |  |  | 70 |  |  | 160 |
2022 | 2,745 |  |  | 353 |  |  | 1,032 |  |  | 505 |  |  | 77 |  |  | — |  |  | 94 |  |  | — |
2023 | 3,375 |  |  | 1,303 |  |  | 535 |  |  | 456 |  |  | 79 |  |  | 350 |  |  | 153 |  |  | 45 |
Thereafter | 35,288 |  |  | 7,940 |  |  | 12,880 |  |  | 5,437 |  |  | 5,793 |  |  | 1,251 |  |  | 2,925 |  |  | 1,595 |
Total long-term debt, including current maturities | $ | 53,384 |  |  | $ | 11,012 |  |  | $ | 19,051 |  |  | $ | 8,259 |  |  | $ | 7,391 |  |  | $ | 2,203 |  |  | $ | 3,808 |  |  | $ | 2,150 |
(a) | Excludes $1,578 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.
The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above. Short-Term Obligations Classified as Long-Term Debt Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.
| December 31, 2018
|  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |
| Duke |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |
(in millions) | Energy |  |  | Carolinas |  |  | Progress |  |  | Ohio |  |  | Indiana |
Tax-exempt bonds | $ | 312 |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |  |  | $ | 285 |
Commercial paper(a) | 625 |  |  | 300 |  |  | 150 |  |  | 25 |  |  | 150 |
Total | $ | 937 |  |  | $ | 300 |  |  | $ | 150 |  |  | $ | 52 |  |  | $ | 435 |
| December 31, 2017
|  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |
| Duke |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |
(in millions) | Energy |  |  | Carolinas |  |  | Progress |  |  | Ohio |  |  | Indiana |
Tax-exempt bonds | $ | 312 |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |  |  | $ | 285 |
Commercial paper(a) | 625 |  |  | 300 |  |  | 150 |  |  | 25 |  |  | 150 |
Total | $ | 937 |  |  | $ | 300 |  |  | $ | 150 |  |  | $ | 52 |  |  | $ | 435 |
(a) | Progress Energy amounts are equal to Duke Energy Progress amounts.
Summary of Significant Debt Issuances In January 2019, Duke Energy Ohio issued $800 million of first mortgage bonds. The issuance was split between a $400 million, 10-year tranche at 3.65 percent and a $400 million, 30-year tranche at 4.30 percent. The net proceeds will be used to refinance $450 million of Duke Energy Ohio bonds maturing in April 2019, to pay down short-term debt and for general corporate purposes. The following tables summarize significant debt issuances (in millions).
|  |  |  |  | Year Ended December 31, 2018
|  |  |  |  |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |
| Maturity |  | Interest |  |  | Duke |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |
Issuance Date | Date |  | Rate |  |  | Energy |  |  | (Parent) |  |  | Carolinas |  |  | Progress |  |  | Florida |
Unsecured Debt |  |  |  |  |  |  |  |  |  |  |  |  |
March 2018(a) | April 2025 |  | 3.950 | % |  | $ | 250 |  |  | $ | 250 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
May 2018(b) | May 2021 |  | 3.114 | % |  | 500 |  |  | 500 |  |  | — |  |  | — |  |  | — |
September 2018(c) | September 2078 |  | 5.625 | % |  | 500 |  |  | 500 |  |  | — |  |  | — |  |  | — |
First Mortgage Bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 2018(d) | March 2023 |  | 3.050 | % |  | 500 |  |  | — |  |  | 500 |  |  | — |  |  | — |
March 2018(d) | March 2048 |  | 3.950 | % |  | 500 |  |  | — |  |  | 500 |  |  | — |  |  | — |
June 2018(e) | July 2028 |  | 3.800 | % |  | 600 |  |  | — |  |  | — |  |  | — |  |  | 600 |
June 2018(e) | July 2048 |  | 4.200 | % |  | 400 |  |  | — |  |  | — |  |  | — |  |  | 400 |
August 2018(f) | September 2023 |  | 3.375 | % |  | 300 |  |  | — |  |  | — |  |  | 300 |  |  | — |
August 2018(f) | September 2028 |  | 3.700 | % |  | 500 |  |  | — |  |  | — |  |  | 500 |  |  | — |
November 2018(g) | May 2022 |  | 3.350 | % |  | 350 |  |  | — |  |  | 350 |  |  | — |  |  | — |
November 2018(g) | November 2028 |  | 3.950 | % |  | 650 |  |  | — |  |  | 650 |  |  | — |  |  | — |
Total issuances |  |  |  |  | $ | 5,050 |  |  | $ | 1,250 |  |  | $ | 2,000 |  |  | $ | 800 |  |  | $ | 1,000 |
(a) | Debt issued to pay down short-term debt.
(b) | Debt issued to pay down short-term debt. Debt issuance has a floating debt rate.
(c) | Callable after September 2023 at par. Junior subordinated hybrid debt issued to pay down short-term debt and for general corporate
purposes.
(d) | Debt issued to repay at maturity a $300 million first mortgage bond due April 2018, pay down intercompany short-term debt and for general corporate purposes.
(e) | Debt issued to repay a portion of intercompany short-term debt under the money pool borrowing arrangement and for general corporate purposes.
(f) | Debt issued to repay short-term debt and for general corporate purposes.
(g) | Debt issued to fund eligible green energy projects, including zero-carbon solar and energy storage, in the Carolinas.
|  |  |  |  | Year Ended December 31, 2017
|  |  |  |  |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |
| Maturity |  | Interest |  |  | Duke |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |
Issuance Date | Date |  | Rate |  |  | Energy |  |  | (Parent) |  |  | Carolinas |  |  | Progress |  |  | Florida |  |  | Ohio |
Unsecured Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
April 2017(a) | April 2025 |  | 3.364 | % |  | $ | 420 |  |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
June 2017(b) | June 2020 |  | 2.100 | % |  | 330 |  |  | 330 |  |  | — |  |  | — |  |  | — |  |  | — |
August 2017(c) | August 2022 |  | 2.400 | % |  | 500 |  |  | 500 |  |  | — |  |  | — |  |  | — |  |  | — |
August 2017(c) | August 2027 |  | 3.150 | % |  | 750 |  |  | 750 |  |  | — |  |  | — |  |  | — |  |  | — |
August 2017(c) | August 2047 |  | 3.950 | % |  | 500 |  |  | 500 |  |  | — |  |  | — |  |  | — |  |  | — |
December 2017(d) | December 2019 | (k) | 2.100 | % |  | 400 |  |  | — |  |  | — |  |  | — |  |  | 400 |  |  | — |
Secured Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
February 2017(e) | June 2034 |  | 4.120 | % |  | 587 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
August 2017(f) | December 2036 |  | 4.110 | % |  | 233 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
First Mortgage Bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 2017(g) | January 2020 |  | 1.850 | % |  | 250 |  |  | — |  |  | — |  |  | — |  |  | 250 |  |  | — |
January 2017(g) | January 2027 |  | 3.200 | % |  | 650 |  |  | — |  |  | — |  |  | — |  |  | 650 |  |  | — |
March 2017(h) | June 2046 |  | 3.700 | % |  | 100 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100 |
September 2017(i) | September 2020 |  | 1.500 | % | (l) | 300 |  |  | — |  |  | — |  |  | 300 |  |  | — |  |  | — |
September 2017(i) | September 2047 |  | 3.600 | % |  | 500 |  |  | — |  |  | — |  |  | 500 |  |  | — |  |  | — |
November 2017(j) | December 2047 |  | 3.700 | % |  | 550 |  |  | — |  |  | 550 |  |  | — |  |  | — |  |  | — |
Total issuances |  |  |  |  | $ | 6,070 |  |  | $ | 2,500 |  |  | $ | 550 |  |  | $ | 800 |  |  | $ | 1,300 |  |  | $ | 100 |
(a) | Proceeds were used to refinance $400 million of unsecured debt at maturity and to repay a portion of outstanding commercial paper.
(b) | Debt issued to repay a portion of outstanding commercial paper.
(c) | Debt issued to repay at maturity $700 million of unsecured debt, to repay outstanding commercial paper and for general corporate purposes.
(d) | Debt issued to fund storm restoration costs related to Hurricane Irma and for general corporate purposes.
(e) | Portfolio financing of four Texas and Oklahoma wind facilities. Duke Energy pledged substantially all of the assets of these wind facilities and is nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(f) | Portfolio financing of eight solar facilities located in California, Colorado and New Mexico. Duke Energy pledged substantially all of the assets of these solar facilities and is nonrecourse to Duke Energy. Proceeds were used to reimburse Duke Energy for a portion of previously funded construction expenditures.
(g) | Debt issued to fund capital expenditures for ongoing construction and capital maintenance, to repay a $250 million aggregate principal amount of bonds at maturity and for general corporate purposes.
(h) | Proceeds were used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes.
(i) | Debt issued to repay at maturity a $200 million aggregate principal amount of bonds at maturity, pay down intercompany short-term debt and for general corporate purposes, including capital expenditures.
(j) | Debt issued to refinance $400 million aggregate principal amount of bonds due January 2018, pay down intercompany short-term debt and for general corporate purposes.
(k) | Principal balance will be repaid in equal quarterly installments beginning in March 2018.
(l) | Debt issuance has a floating interest rate.
Available Credit Facilities In January 2018, Duke Energy extended the termination date of substantially all of its existing $8 billion Master Credit Facility capacity from March 16, 2022, to March 16, 2023. In May 2018, Duke Energy completed the extension process with 100 percent of all commitments to the Master Credit Facility extending to March 16, 2023. The Duke Energy Registrants, excluding Progress Energy (Parent), have borrowing capacity under the Master Credit Facility up to specified sublimits for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. Duke Energy Carolinas and Duke Energy Progress are also required to each maintain $250 million of available capacity under the Master Credit Facility as security to meet obligations under plea agreements reached with the U.S. Department of Justice in 2015 related to violations at North Carolina facilities with ash basins. The table below includes the current borrowing sublimits and available capacity under these credit facilities.
| December 31, 2018
|  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  |
| Duke |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  |
(in millions) | Energy |  |  | (Parent) |  |  | Carolinas |  |  | Progress |  |  | Florida |  |  | Ohio |  |  | Indiana |  |  | Piedmont |
Facility size(a) | $ | 8,000 |  |  | $ | 2,650 |  |  | $ | 1,750 |  |  | $ | 1,400 |  |  | $ | 650 |  |  | $ | 450 |  |  | $ | 600 |  |  | $ | 500 |
Reduction to backstop issuances |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper(b) | (3,022 | ) |  | (917 | ) |  | (739 | ) |  | (444 | ) |  | (108 | ) |  | (299 | ) |  | (317 | ) |  | (198 | )
Outstanding letters of credit | (53 | ) |  | (45 | ) |  | (4 | ) |  | (2 | ) |  | — |  |  | — |  |  | — |  |  | (2 | )
Tax-exempt bonds | (81 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (81 | ) |  | — |
Coal ash set-aside | (500 | ) |  | — |  |  | (250 | ) |  | (250 | ) |  | — |  |  | — |  |  | — |  |  | — |
Available capacity | $ | 4,344 |  |  | $ | 1,688 |  |  | $ | 757 |  |  | $ | 704 |  |  | $ | 542 |  |  | $ | 151 |  |  | $ | 202 |  |  | $ | 300 |
(a) | Represents the sublimit of each borrower.
(b) | Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.
Three-Year Revolving Credit Facility Duke Energy (Parent) has a $1.0 billion revolving credit facility through June 2020. Borrowings under this facility will be used for general corporate purposes. As of December 31, 2018, $500 million has been drawn under the Three Year Revolver. This balance is classified as Long-term debt on Duke Energy's Consolidated Balance Sheets. Any undrawn commitments can be drawn, and borrowings can be prepaid, at any time throughout the term of the facility. The terms and conditions of the Three Year Revolver are generally consistent with those governing Duke Energy's Master Credit Facility. Duke Energy Progress Term Loan Facility In December 2018, Duke Energy Progress entered into a two-year term loan facility with commitments totaling $700 million. Borrowings under the facility will be used to pay storm-related costs, pay down commercial paper and to partially finance an upcoming bond maturity. As of December 31, 2018, $50 million has been drawn under the term loan. The balance is classified as Long-term debt on Duke Energy Progress' Consolidated Balance Sheets. In January and February 2019, the remaining $650 million was drawn under the term loan. Piedmont Term Loan Facility In September 2018, Piedmont executed an amendment to its existing senior unsecured term loan facility. The amendment increased commitments from $250 million to $350 million and extended the maturity date to September 2019. Borrowings under the facility will be used for general corporate purposes. As of December 31, 2018, the entire $350 million has been drawn under the Piedmont Term Loan. This balance is classified as Current maturities of long-term debt on Piedmont's Consolidated Balance Sheets. The terms and conditions of the Piedmont Term Loan are generally consistent with those governing Duke Energy's Master Credit Facility. Other Debt Matters In September 2016, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common stock by Duke Energy. Duke Energy has an effective Form S-3 with the SEC to sell up to $3 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $1.5 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2018, and 2017 was $1,010 million and $986 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets. In January 2017, Duke Energy amended its Form S-3 to add Piedmont as a registrant and included in the amendment a prospectus for Piedmont under which it may issue debt securities in the same manner as other Duke Energy Registrants. Money Pool The Subsidiary Registrants, excluding Progress Energy (Parent), are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy (Parent), separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent), may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly owned subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets. Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Restrictive Debt Covenants The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65 percent for each borrower, excluding Piedmont, and 70 percent for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2018, each of the Duke Energy Registrants was in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses. Other Loans As of December 31, 2018, and 2017, Duke Energy had loans outstanding of $741 million, including $37 million at Duke Energy Progress and $701 million, including $38 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration