EX-99.1 2 er-20200331earnings991.htm EXHIBIT 99.1

News Release |  |

Media Contact: Catherine Butler
24-Hour: 800.559.3853
Analyst Contact: Bryan Buckler
Office: 704.382.2640
May 12, 2020
Duke Energy reports first quarter 2020 financial results

▪ | First quarter 2020 GAAP EPS of $1.24 and adjusted EPS of $1.14

▪ | Strong results from gas distribution and commercial renewables businesses

▪ | Maintained operational excellence for our communities during COVID-19 crisis

▪ | Company affirms 2020 adjusted EPS guidance range of $5.05 to $5.45

CHARLOTTE, N.C. – Duke Energy (NYSE: DUK) today announced first quarter 2020 reported earnings per share (EPS) of $1.24, prepared in accordance with Generally Accepted Accounting Principles (GAAP), and adjusted EPS of $1.14. This is compared to reported and adjusted EPS of $1.24 for the first quarter of 2019. First quarter 2020 results are consistent with internal plans with the exception of mild winter weather and storms.
Adjusted EPS excludes the impact of certain items that are included in reported EPS. The difference between first quarter 2020 reported EPS and adjusted EPS was due to the deferral of 2018 severance charges resulting from a North Carolina regulatory settlement.
For the quarter, we saw improved results in our Gas Utilities and Infrastructure segment from the Piedmont North Carolina rate case and Commercial Renewables experienced growth from new projects. Electric Utilities and Infrastructure was positively impacted by electric base rate case increases in South Carolina and Florida, and higher rider revenues in the Midwest, net of forecasted higher depreciation and amortization. However, these fundamental improvements in our results were offset by mild winter weather along with severe storms that impacted much of our Carolinas utilities territory as well as unrealized investment losses on non-pension executive benefit trusts and higher financing costs at Other. Together these items resulted in lower first quarter 2020 adjusted results.
“As the country battles the COVID-19 pandemic, our thoughts are with those who have felt the impact first-hand, and with those on the front lines who have selflessly stepped forward to serve,” said Lynn Good, Duke Energy chair, president and CEO. “I am proud of our employees’ unwavering commitment to our customers and communities during this trying time.
“The first part of the year has been marked by strong financial results, as well as operational excellence as we adjusted work practices to protect our employees and customers. We successfully managed three nuclear outages, brought a natural gas combined-cycle plant and solar facility online and responded to multiple storms. We are in the early stages of managing through this crisis and still evaluating the financial and economic impacts. Given we are

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already taking proactive steps to mitigate the impacts of COVID-19, we are affirming our 2020 adjusted EPS guidance range of $5.05 to $5.45, assuming an economic recovery beginning later this year. We remain focused on generating value for both customers and shareholders in 2020 and beyond, and will draw on the benefits of our size and scale, balance sheet strength, diverse operations and constructive service areas to do so.”
Business segment results
In addition to the following summary of first quarter 2020 business segment performance, comprehensive tables with detailed EPS drivers for the first quarter compared to prior year are provided at the end of this news release.
The discussion below of first quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables at the end of this news release present a full reconciliation of GAAP reported results to adjusted results.
Electric Utilities and Infrastructure
On a reported and adjusted basis, Electric Utilities and Infrastructure recognized first quarter 2020 segment income of $705 million, compared to $750 million in the first quarter of 2019. This represents a decrease of $0.06 per share, excluding share dilution of $0.01 per share. Lower quarterly results were primarily due to mild weather (-$0.05 per share), unfavorable O&M expenses (-$0.03 per share) and higher depreciation and amortization on a growing asset base (-$0.06 per share). These results were partially offset by contributions from base rate case changes (+$0.02 per share), higher riders and other retail margin (+$0.05 per share), volumes (+$0.02 per share) and formula rate adjustments to wholesale contracts (+$0.01 per share).
Gas Utilities and Infrastructure
On a reported and adjusted basis, Gas Utilities and Infrastructure recognized first quarter 2020 segment income of $249 million, compared to $226 million in the first quarter of 2019. This represents an increase of $0.03 per share. Higher quarterly results were driven by contributions from the Piedmont North Carolina rate case (+$0.06 per share) and higher riders and other retail margin (+$0.02 per share) partially offset by a prior year income tax adjustment for equity method investments.
Commercial Renewables
On a reported and adjusted basis, Commercial Renewables recognized first quarter 2020 segment income of $57 million, compared to a reported and adjusted segment income of $13 million in the first quarter of 2019. This represents an increase of $0.06 per share. Higher quarterly results were primarily impacted by growth from renewable projects placed in service in the prior year (+$0.04 per share) and favorable wind resource and power pricing.
Other
Other primarily includes interest expense on holding company debt, other unallocated corporate costs and results from Duke Energy’s captive insurance company.

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On a reported and adjusted basis, Other recognized a first quarter 2020 net loss of $112 million and $187 million, respectively. This is compared to a reported and adjusted net loss of $89 million in the first quarter of 2019. First quarter 2020 results were impacted by a $75 million after-tax reversal of severance charges resulting from a North Carolina regulatory settlement previously recognized during 2018. The severance charges were deferred as regulatory assets. As the 2018 severance charges were treated as a special item, the reversal in the first quarter of 2020 is a special item and excluded from adjusted earnings.
Lower adjusted quarterly results at Other were primarily due to unrealized investment losses on non-pension executive benefit trusts, and higher financing costs.
Effective tax rate
Duke Energy's consolidated reported effective tax rate for the first quarter of 2020 was 13.3% compared to 9.6% in the first quarter of 2019. The increase in the effective tax rate was primarily due to a true-up adjustment related to income tax recognition for equity method investments in the first quarter of 2019, partially offset by an increase in the amortization of excess deferred taxes.
The effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items for the first quarter of 2020 was 12.2% compared to the effective tax rate including impacts of noncontrolling interests of 9.5% in the first quarter of 2019. The increase was primarily due to a true-up adjustment related to income tax recognition for equity method investments in the first quarter of 2019, partially offset by an increase in the amortization of excess deferred taxes.
The tables at the end of this news release present a reconciliation of the reported effective tax rate to the effective tax rate including noncontrolling interests and preferred dividends and excluding special items.
Earnings conference call for analysts
An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss first quarter 2020 financial results. The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.
The call can be accessed via the investors section (duke-energy.com/investors) of Duke Energy’s website or by dialing 800.458.4148 in the United States or 323.794.2093 outside the United States. The confirmation code is 1555838. Please call in 10 to 15 minutes prior to the scheduled start time.
A replay of the conference call will be available until 1 p.m. ET, May 22, 2020, by calling 888.203.1112 in the United States or 719.457.0820 outside the United States and using the code 1555838. An audio replay and transcript will also be available by accessing the investors section of the company’s website.

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Special Items and Non-GAAP Reconciliation
The following table presents a reconciliation of GAAP reported to adjusted EPS for first quarter 2020 financial results:

(In millions, except per share amounts) | After-Tax Amount |  | 1Q 2020 EPS |
EPS, as reported |  | $ | 1.24 |
Adjustments to reported EPS: |  |
First Quarter 2020 |  |
Severance | $ | (75 | ) | (0.10 | )
Total adjustments |  | $ | (0.10 | )
EPS, adjusted |  | $ | 1.14 |

Non-GAAP financial measures
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings, adjusted EPS and effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. The effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items is calculated using pretax earnings and income tax expense, both as adjusted for the impact of noncontrolling interests, preferred dividends and special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.
Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors. The most directly comparable GAAP measures for adjusted earnings, adjusted EPS and effective tax rate including impacts of noncontrolling interests and preferred dividends and excluding special items are Net Income Available to Duke Energy common stockholders (GAAP reported earnings), Basic EPS Available to Duke Energy Corporation common stockholders (GAAP reported EPS), and the reported effective tax rate, respectively.
The periods presented include a special item for the reversal of 2018 Severance charges, which were deferred as a result of the partial settlement in the Duke Energy Carolinas 2019 North Carolina rate case. Management believes the special item does not reflect ongoing benefits or costs.
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders or asset impairments).
Management evaluates segment performance based on segment income and other net loss. Segment income is defined as income from continuing operations net of income attributable to

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noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed 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, which are discussed above. 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 or adjusted other net loss is segment income and other net loss.
Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net loss 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, as discussed above.
Duke Energy’s adjusted earnings, adjusted EPS and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 29,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities and 2,300 megawatts through its nonregulated Duke Energy Renewables unit.
Duke Energy is transforming its customers’ experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit’s regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.
Duke Energy was named to Fortune’s 2020 “World’s Most Admired Companies” list and Forbes’ “America’s Best Employers” list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

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Forward-Looking Information
This document 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 and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

◦ | The impact of the COVID-19 pandemic;

◦ | State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;

◦ | The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;

◦ | The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;

◦ | The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;

◦ | 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 sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;

◦ | Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;

◦ | Advancements in technology;

◦ | Additional competition in electric and natural gas markets and continued industry consolidation;

◦ | The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;

◦ | The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;

◦ | The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;

◦ | Operational interruptions to our natural gas distribution and transmission activities;

◦ | The availability of adequate interstate pipeline transportation capacity and natural gas supply;

◦ | The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;

◦ | The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;

◦ | The timing and extent of changes in commodity prices and interest 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;

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◦ | The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;

◦ | Credit ratings of the Duke Energy Registrants may be different from what is expected;

◦ | Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;

◦ | Construction and development risks associated with the completion of the Duke Energy Registrants’ capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;

◦ | 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;

◦ | The ability to obtain adequate insurance at acceptable costs;

◦ | 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 U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;

◦ | The impacts from potential impairments of goodwill or equity method investment carrying values; and

◦ | The ability to implement our business strategy, including enhancing existing technology systems.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at 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 described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2020
(Dollars in millions, except per share amounts)

|  |  |  | Special Item |  |  |  |
|  | Reported Earnings |  | Severance |  | Total Adjustments |  | Adjusted Earnings
SEGMENT INCOME |  |  |  |  |  |  |  |
Electric Utilities and Infrastructure |  | $ | 705 |  |  | $ | — |  |  | $ | — |  |  | $ | 705 |
Gas Utilities and Infrastructure |  | 249 |  |  | — |  |  | — |  |  | 249 |
Commercial Renewables |  | 57 |  |  | — |  |  | — |  |  | 57 |
Total Reportable Segment Income |  | 1,011 |  |  | — |  |  | — |  |  | 1,011 |
Other |  | (112 | ) |  | (75 | ) | A | (75 | ) |  | (187 | )
Net Income Available to Duke Energy Corporation Common Stockholders |  | $ | 899 |  |  | $ | (75 | ) |  | $ | (75 | ) |  | $ | 824 |
EPS AVAILABLE TO DUKE ENERGY CORPORATION COMMON STOCKHOLDERS |  | $ | 1.24 |  |  | $ | (0.10 | ) |  | $ | (0.10 | ) |  | $ | 1.14 |

Note: Earnings Per Share amounts are adjusted for accumulated dividends for Series B Preferred Stock of $0.02.
A - Net of $23 million tax expense. $98 million reversal of 2018 charges recorded within Operations, maintenance and other on the Condensed Consolidated Statements of Operations.
Weighted Average Shares (reported and adjusted) – 734 million
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DUKE ENERGY CORPORATION
EFFECTIVE TAX RECONCILIATION
March 2020
(Dollars in millions)

|  | Three Months Ended March 31, 2020
|  | Balance |  | Effective Tax Rate
Reported Income From Continuing Operations Before Income Taxes |  | $ | 1,027 |  |  |
Severance |  | (98 | ) |  |
Noncontrolling Interests |  | 48 |  |  |
Preferred Dividends |  | (39 | ) |  |
Pretax Income Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items |  | $ | 938 |  |  |
Reported Income Tax Expense From Continuing Operations |  | $ | 137 |  |  | 13.3 | %
Severance |  | (23 | ) |  |
Tax Expense Including Noncontrolling Interests and Preferred Dividends and Excluding Special Items |  | $ | 114 |  |  | 12.2 | %

|  | Three Months Ended March 31, 2019
|  | Balance |  | Effective Tax Rate
Reported Income From Continuing Operations Before Income Taxes |  | $ | 988 |  |  |
Noncontrolling Interests |  | 7 |  |  |
Pretax Income Including Noncontrolling Interests |  | $ | 995 |  |  |
Reported Income Tax Expense From Continuing Operations |  | $ | 95 |  |  | 9.6 | %
Tax Expense Including Noncontrolling Interests |  | $ | 95 |  |  | 9.5 | %

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DUKE ENERGY CORPORATION
EARNINGS VARIANCES
March 2020 YTD vs. Prior Year

(Dollars per share) | Electric Utilities and Infrastructure |  | Gas Utilities and Infrastructure |  | Commercial Renewables |  | Other |  | Consolidated
2019 YTD Reported Earnings Per Share | $ | 1.03 |  |  |  | $ | 0.32 |  |  |  | $ | 0.02 |  |  |  | $ | (0.13 | ) |  |  | $ | 1.24 |  |
Weather | (0.05 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.05 | ) |
Volume(a) | 0.02 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.02 |  |
Riders and Other Retail Margin(b) | 0.05 |  |  |  | 0.02 |  |  |  | — |  |  |  | — |  |  |  | 0.07 |  |
Rate case impacts, net(c) | 0.02 |  |  |  | 0.06 |  |  |  | — |  |  |  | — |  |  |  | 0.08 |  |
Wholesale | 0.01 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01 |  |
Operations and maintenance, net of recoverables(d) | (0.03 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.03 | ) |
Midstream Gas Pipelines(e) | — |  |  |  | (0.05 | ) |  |  | — |  |  |  | — |  |  |  | (0.05 | ) |
Duke Energy Renewables(f) | — |  |  |  | — |  |  |  | 0.06 |  |  |  | — |  |  |  | 0.06 |  |
AFUDC Equity | 0.01 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01 |  |
Depreciation and amortization(g) | (0.06 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.06 | ) |
Preferred Dividends | — |  |  |  | — |  |  |  | — |  |  |  | (0.04 | ) |  |  | (0.04 | ) |
Other(h) | (0.03 | ) |  |  | — |  |  |  | — |  |  |  | (0.08 | ) |  |  | (0.11 | ) |
Total variance before share count | $ | (0.06 | ) |  |  | $ | 0.03 |  |  |  | $ | 0.06 |  |  |  | $ | (0.12 | ) |  |  | $ | (0.09 | ) |
Change in share count | (0.01 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.01 | ) |
2020 YTD Adjusted Earnings Per Share | $ | 0.96 |  |  |  | $ | 0.35 |  |  |  | $ | 0.08 |  |  |  | $ | (0.25 | ) |  |  | $ | 1.14 |  |
Severance | — |  |  |  | — |  |  |  | — |  |  |  | 0.10 |  |  |  | 0.10 |  |
2020 YTD Reported Earnings Per Share | $ | 0.96 |  |  |  | $ | 0.35 |  |  |  | $ | 0.08 |  |  |  | $ | (0.15 | ) |  |  | $ | 1.24 |  |
Note: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all drivers except for Commercial Renewables, which uses an effective rate. Weighted average shares outstanding increased from 727 million shares to 734 million.

(a) | Includes unbilled revenue true-up related to prior years.

(b) | Electric Utilities and Infrastructure is primarily driven by higher energy efficiency and grid modernization rider programs (+$0.03).

(c) | Electric Utilities and Infrastructure includes the net impact of the DEC and DEP South Carolina rate cases, effective June 2019, and the DEF SBRA and multi-year rate plan, partially offset by higher depreciation and amortization expense. Gas Utilities and Infrastructure includes the net impact of the Piedmont North Carolina rate case, effective November 1, 2019.

(d) | Includes higher employee related expenses due to timing and storm costs at DEC and DEP partially offset by lower customer delivery charges.

(e) | Primarily related to a favorable income tax adjustment for equity method investments in the prior year.

(f) | Primarily includes renewable projects placed in service in the prior year (+$0.04) and favorable wind resource and power pricing.

(g) | Excludes rate case impacts.

(h) | Electric Utilities and Infrastructure includes the impact of insurance proceeds received in the prior year (-$0.01). Other includes unrealized investment losses on non-pension executive benefit trusts.

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March 2020
QUARTERLY HIGHLIGHTS
(Unaudited)
| Three Months Ended
| March 31,
(In millions, except per share amounts and where noted) | 2020 |  | 2019
Earnings Per Share – Basic and Diluted |  |  |
Net income available to Duke Energy Corporation common stockholders |  |  |
Basic and Diluted | $ | 1.24 |  |  | $ | 1.24 |
Weighted average shares outstanding |  |  |
Basic | 734 |  |  | 727 |
Diluted | 736 |  |  | 727 |
INCOME (LOSS) BY BUSINESS SEGMENT |  |  |
Electric Utilities and Infrastructure | $ | 705 |  |  | $ | 750 |
Gas Utilities and Infrastructure | 249 |  |  | 226 |
Commercial Renewables | 57 |  |  | 13 |
Total Reportable Segment Income | 1,011 |  |  | 989 |
Other(a) | (112 | ) |  | (89 | )
Net Income Available to Duke Energy Corporation common stockholders | $ | 899 |  |  | $ | 900 |
CAPITALIZATION |  |  |
Total Common Equity (%) | 43 | % |  | 43 | %
Total Debt (%) | 57 | % |  | 57 | %
Total Debt | $ | 64,421 |  |  | $ | 59,211 |
Book Value Per Share | $ | 65.42 |  |  | $ | 61.88 |
Actual Shares Outstanding | 735 |  |  | 728 |
CAPITAL AND INVESTMENT EXPENDITURES |  |  |
Electric Utilities and Infrastructure | $ | 2,060 |  |  | $ | 2,113 |
Gas Utilities and Infrastructure | 327 |  |  | 364 |
Commercial Renewables | 451 |  |  | 90 |
Other | 71 |  |  | 63 |
Total Capital and Investment Expenditures | $ | 2,909 |  |  | $ | 2,630 |

(a) | Includes a $98 million (after tax $75M) reversal of 2018 severance charges due to the partial settlement of the Duke Energy Carolina's North Carolina rate case for the three months ended March 31, 2020.

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DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share amounts)
| Three Months Ended
| March 31,
| 2020 |  | 2019
Operating Revenues |  |  |
Regulated electric | $ | 5,124 |  |  | $ | 5,285 |
Regulated natural gas | 638 |  |  | 728 |
Nonregulated electric and other | 187 |  |  | 150 |
Total operating revenues | 5,949 |  |  | 6,163 |
Operating Expenses |  |  |
Fuel used in electric generation and purchased power | 1,447 |  |  | 1,609 |
Cost of natural gas | 199 |  |  | 327 |
Operation, maintenance and other | 1,339 |  |  | 1,419 |
Depreciation and amortization | 1,130 |  |  | 1,089 |
Property and other taxes | 345 |  |  | 343 |
Impairment charges | 2 |  |  | — |
Total operating expenses | 4,462 |  |  | 4,787 |
Gains (Losses) on Sales of Other Assets and Other, net | 1 |  |  | (3 | )
Operating Income | 1,488 |  |  | 1,373 |
Other Income and Expenses |  |  |
Equity in earnings of unconsolidated affiliates | 44 |  |  | 43 |
Other income and expenses, net | 46 |  |  | 115 |
Total other income and expenses | 90 |  |  | 158 |
Interest Expense | 551 |  |  | 543 |
Income Before Income Taxes | 1,027 |  |  | 988 |
Income Tax Expense | 137 |  |  | 95 |
Net Income | 890 |  |  | 893 |
Less: Net Loss Attributable to Noncontrolling Interests | (48 | ) |  | (7 | )
Net Income Attributable to Duke Energy Corporation | 938 |  |  | 900 |
Less: Preferred Dividends | 39 |  |  | — |
Net Income Available to Duke Energy Corporation Common Stockholders | $ | 899 |  |  | $ | 900 |
Earnings Per Share – Basic and Diluted |  |  |
Net income available to Duke Energy Corporation common stockholders |  |  |
Basic and Diluted | $ | 1.24 |  |  | $ | 1.24 |
Weighted average shares outstanding |  |  |
Basic | 734 |  |  | 727 |
Diluted | 736 |  |  | 727 |

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DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In millions) | March 31, 2020 |  | December 31, 2019
ASSETS |  |  |
Current Assets |  |  |
Cash and cash equivalents | $ | 1,450 |  |  | $ | 311 |
Receivables (net of allowance for doubtful accounts of $28 at 2020 and $22 at 2019) | 809 |  |  | 1,066 |
Receivables of VIEs (net of allowance for doubtful accounts of $61 at 2020 and $54 at 2019) | 1,828 |  |  | 1,994 |
Inventory | 3,324 |  |  | 3,232 |
Regulatory assets (includes $53 at 2020 and $52 at 2019 related to VIEs) | 1,770 |  |  | 1,796 |
Other (includes $300 at 2020 and $242 at 2019 related to VIEs) | 1,000 |  |  | 764 |
Total current assets | 10,181 |  |  | 9,163 |
Property, Plant and Equipment |  |  |
Cost | 149,676 |  |  | 147,654 |
Accumulated depreciation and amortization | (46,599 | ) |  | (45,773 | )
Generation facilities to be retired, net | 31 |  |  | 246 |
Net property, plant and equipment | 103,108 |  |  | 102,127 |
Other Noncurrent Assets |  |  |
Goodwill | 19,303 |  |  | 19,303 |
Regulatory assets (includes $980 at 2020 and $989 at 2019 related to VIEs) | 13,413 |  |  | 13,222 |
Nuclear decommissioning trust funds | 7,052 |  |  | 8,140 |
Operating lease right-of-use assets, net | 1,633 |  |  | 1,658 |
Investments in equity method unconsolidated affiliates | 2,067 |  |  | 1,936 |
Other (includes $87 at 2020 and $110 at 2019 related to VIEs) | 3,315 |  |  | 3,289 |
Total other noncurrent assets | 46,783 |  |  | 47,548 |
Total Assets | $ | 160,072 |  |  | $ | 158,838 |
LIABILITIES AND EQUITY |  |  |
Current Liabilities |  |  |
Accounts payable | $ | 2,364 |  |  | $ | 3,487 |
Notes payable and commercial paper | 3,033 |  |  | 3,135 |
Taxes accrued | 493 |  |  | 392 |
Interest accrued | 571 |  |  | 565 |
Current maturities of long-term debt (includes $216 at 2020 and 2019 related to VIEs) | 5,077 |  |  | 3,141 |
Asset retirement obligations | 802 |  |  | 881 |
Regulatory liabilities | 826 |  |  | 784 |
Other | 2,004 |  |  | 2,367 |
Total current liabilities | 15,170 |  |  | 14,752 |
Long-Term Debt (includes $3,966 at 2020 and $3,997 at 2019 related to VIEs) | 56,311 |  |  | 54,985 |
Other Noncurrent Liabilities |  |  |
Deferred income taxes | 9,321 |  |  | 8,878 |
Asset retirement obligations | 12,497 |  |  | 12,437 |
Regulatory liabilities | 14,029 |  |  | 15,264 |
Operating lease liabilities | 1,414 |  |  | 1,432 |
Accrued pension and other post-retirement benefit costs | 919 |  |  | 934 |
Investment tax credits | 659 |  |  | 624 |
Other (includes $258 at 2020 and $228 at 2019 related to VIEs) | 1,669 |  |  | 1,581 |
Total other noncurrent liabilities | 40,508 |  |  | 41,150 |
Commitments and Contingencies |  |  |
Equity |  |  |
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2020 and 2019 | 973 |  |  | 973 |
Preferred stock, Series B, $0.001 par value, 1 million shares authorized and outstanding at 2020 and 2019 | 989 |  |  | 989 |
Common stock, $0.001 par value, 2 billion shares authorized; 735 million shares outstanding at 2020 and 733 million shares outstanding at 2019 | 1 |  |  | 1 |
Additional paid-in capital | 40,930 |  |  | 40,881 |
Retained earnings | 4,221 |  |  | 4,108 |
Accumulated other comprehensive loss | (193 | ) |  | (130 | )
Total Duke Energy Corporation stockholders' equity | 46,921 |  |  | 46,822 |
Noncontrolling interests | 1,162 |  |  | 1,129 |
Total equity | 48,083 |  |  | 47,951 |
Total Liabilities and Equity | $ | 160,072 |  |  | $ | 158,838 |

13

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
|  | Three Months Ended March 31,
|  | 2020 |  | 2019
CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |
Net Income |  | $ | 890 |  |  | $ | 893 |
Adjustments to reconcile net income to net cash provided by operating activities |  | 664 |  |  | 346 |
Net cash provided by operating activities |  | 1,554 |  |  | 1,239 |
CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |
Net cash used in investing activities |  | (3,022 | ) |  | (2,713 | )
CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |
Net cash provided by financing activities |  | 2,593 |  |  | 1,433 |
Net increase (decrease) in cash, cash equivalents and restricted cash |  | 1,125 |  |  | (41 | )
Cash, cash equivalents and restricted cash at beginning of period |  | 573 |  |  | 591 |
Cash, cash equivalents and restricted cash at end of period |  | $ | 1,698 |  |  | $ | 550 |

14

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)

| Three Months Ended March 31, 2020
(In millions) | Electric Utilities and Infrastructure |  | Gas Utilities and Infrastructure |  | Commercial Renewables |  | Other |  | Eliminations/Adjustments |  | Duke Energy |
Operating Revenues |  |  |  |  |  |
Regulated electric | $ | 5,183 |  | $ | — |  | $ | 1 |  | $ | — |  | $ | (60 | ) | $ | 5,124 |
Regulated natural gas | — |  | 661 |  | — |  | — |  | (23 | ) | 638 |
Nonregulated electric and other | — |  | 3 |  | 128 |  | 23 |  | 33 |  | 187 |
Total operating revenues | 5,183 |  | 664 |  | 129 |  | 23 |  | (50 | ) | 5,949 |
Operating Expenses |  |  |  |  |  |
Fuel used in electric generation and purchased power | 1,467 |  | — |  | — |  | — |  | (20 | ) | 1,447 |
Cost of natural gas | — |  | 199 |  | — |  | — |  | — |  | 199 |
Operation, maintenance and other | 1,325 |  | 110 |  | 69 |  | (138 | ) | (27 | ) | 1,339 |
Depreciation and amortization | 977 |  | 66 |  | 48 |  | 45 |  | (6 | ) | 1,130 |
Property and other taxes | 303 |  | 30 |  | 8 |  | 4 |  | — |  | 345 |
Impairment charges | 2 |  | — |  | — |  | — |  | — |  | 2 |
Total operating expenses | 4,074 |  | 405 |  | 125 |  | (89 | ) | (53 | ) | 4,462 |
Gains on Sales of Other Assets and Other, net | 1 |  | — |  | — |  | — |  | — |  | 1 |
Operating Income | 1,110 |  | 259 |  | 4 |  | 112 |  | 3 |  | 1,488 |
Other Income and Expenses |  |  |  |  |  |
Equity in earnings (losses) of unconsolidated affiliates | 2 |  | 37 |  | (2 | ) | 7 |  | — |  | 44 |
Other income and expenses, net | 83 |  | 12 |  | 1 |  | (40 | ) | (10 | ) | 46 |
Total Other Income and Expenses | 85 |  | 49 |  | (1 | ) | (33 | ) | (10 | ) | 90 |
Interest Expense | 339 |  | 31 |  | 18 |  | 171 |  | (8 | ) | 551 |
Income (Loss) Before Income Taxes | 856 |  | 277 |  | (15 | ) | (92 | ) | 1 |  | 1,027 |
Income Tax Expense (Benefit) | 151 |  | 28 |  | (24 | ) | (19 | ) | 1 |  | 137 |
Net Income (Loss) | 705 |  | 249 |  | 9 |  | (73 | ) | — |  | 890 |
Less: Net Loss Attributable to Noncontrolling Interest(a) | — |  | — |  | (48 | ) | — |  | — |  | (48 | )
Net Income Attributable to Duke Energy Corporation | 705 |  | 249 |  | 57 |  | (73 | ) | — |  | 938 |
Less: Preferred Dividends | — |  | — |  | — |  | 39 |  | — |  | 39 |
Segment Income / Other Net Loss / Net Income Available to Duke Energy Corporation Common Stockholders | $ | 705 |  | $ | 249 |  | $ | 57 |  | $ | (112 | ) | $ | — |  | $ | 899 |
Special Item | — |  | — |  | — |  | (75 | ) | — |  | (75 | )
Adjusted Earnings(b) | $ | 705 |  | $ | 249 |  | $ | 57 |  | $ | (187 | ) | $ | — |  | $ | 824 |

(a) | Includes the allocation of losses to noncontrolling members primarily due to new solar tax equity projects being placed in service.

(b) | See Reported to Adjusted Earnings Reconciliation for a detailed reconciliation of Segment Income/Other Net Loss to Adjusted Earnings.

15

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)

| Three Months Ended March 31, 2019
(In millions) | Electric Utilities and Infrastructure |  | Gas Utilities and Infrastructure |  | Commercial Renewables |  | Other |  | Eliminations/Adjustments |  | Duke Energy |
Operating Revenues |  |  |  |  |  |
Regulated electric | $ | 5,329 |  | $ | — |  | $ | — |  | $ | — |  | $ | (44 | ) | $ | 5,285 |
Regulated natural gas | — |  | 752 |  | — |  | — |  | (24 | ) | 728 |
Nonregulated electric and other | — |  | 4 |  | 106 |  | 21 |  | 19 |  | 150 |
Total operating revenues | 5,329 |  | 756 |  | 106 |  | 21 |  | (49 | ) | 6,163 |
Operating Expenses |  |  |  |  |  |
Fuel used in electric generation and purchased power | 1,630 |  | — |  | — |  | — |  | (21 | ) | 1,609 |
Cost of natural gas | — |  | 327 |  | — |  | — |  | — |  | 327 |
Operation, maintenance and other | 1,282 |  | 110 |  | 66 |  | (13 | ) | (26 | ) | 1,419 |
Depreciation and amortization | 947 |  | 65 |  | 40 |  | 38 |  | (1 | ) | 1,089 |
Property and other taxes | 301 |  | 33 |  | 6 |  | 3 |  | — |  | 343 |
Total operating expenses | 4,160 |  | 535 |  | 112 |  | 28 |  | (48 | ) | 4,787 |
Losses on Sales of Other Assets and Other, net | (3 | ) | — |  | — |  | — |  | — |  | (3 | )
Operating Income (Loss) | 1,166 |  | 221 |  | (6 | ) | (7 | ) | (1 | ) | 1,373 |
Other Income and Expenses |  |  |  |  |  |
Equity in earnings (losses) of unconsolidated affiliates | 2 |  | 33 |  | (1 | ) | 9 |  | — |  | 43 |
Other income and expenses, net | 89 |  | 7 |  | (1 | ) | 35 |  | (15 | ) | 115 |
Total Other Income and Expenses | 91 |  | 40 |  | (2 | ) | 44 |  | (15 | ) | 158 |
Interest Expense | 338 |  | 30 |  | 21 |  | 171 |  | (17 | ) | 543 |
Income (Loss) Before Income Taxes | 919 |  | 231 |  | (29 | ) | (134 | ) | 1 |  | 988 |
Income Tax Expense (Benefit) | 169 |  | 5 |  | (35 | ) | (45 | ) | 1 |  | 95 |
Net Income (Loss) | 750 |  | 226 |  | 6 |  | (89 | ) | — |  | 893 |
Less: Net Loss Attributable to Noncontrolling Interest | — |  | — |  | (7 | ) | — |  | — |  | (7 | )
Segment Income / Other Net Loss / Net Income Attributable to Duke Energy Corporation | $ | 750 |  | $ | 226 |  | $ | 13 |  | $ | (89 | ) | $ | — |  | $ | 900 |

16

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS
(Unaudited)

| March 31, 2020
(In millions) | Electric Utilities and Infrastructure |  | Gas Utilities and Infrastructure |  | Commercial Renewables |  | Other |  | Eliminations/ Adjustments |  | Duke Energy |
Current Assets |  |  |  |  |  |
Cash and cash equivalents | $ | 85 |  | $ | 7 |  | $ | 7 |  | $ | 1,350 |  | $ | 1 |  | $ | 1,450 |
Receivables, net | 509 |  | 187 |  | 98 |  | 16 |  | (1 | ) | 809 |
Receivables of variable interest entities, net | 1,828 |  | — |  | — |  | — |  | — |  | 1,828 |
Receivables from affiliated companies | 96 |  | 15 |  | 601 |  | 624 |  | (1,336 | ) | — |
Notes receivable from affiliated companies | 616 |  | — |  | — |  | 810 |  | (1,426 | ) | — |
Inventory | 3,164 |  | 65 |  | 68 |  | 27 |  | — |  | 3,324 |
Regulatory assets | 1,576 |  | 97 |  | — |  | 98 |  | (1 | ) | 1,770 |
Other | 155 |  | 13 |  | 198 |  | 687 |  | (53 | ) | 1,000 |
Total current assets | 8,029 |  | 384 |  | 972 |  | 3,612 |  | (2,816 | ) | 10,181 |
Property, Plant and Equipment |  |  |  |  |  |
Cost | 129,190 |  | 12,044 |  | 6,233 |  | 2,311 |  | (102 | ) | 149,676 |
Accumulated depreciation and amortization | (41,715 | ) | (2,555 | ) | (1,073 | ) | (1,255 | ) | (1 | ) | (46,599 | )
Generation facilities to be retired, net | 31 |  | — |  | — |  | — |  | — |  | 31 |
Net property, plant and equipment | 87,506 |  | 9,489 |  | 5,160 |  | 1,056 |  | (103 | ) | 103,108 |
Other Noncurrent Assets |  |  |  |  |  |
Goodwill | 17,379 |  | 1,924 |  | — |  | — |  | — |  | 19,303 |
Regulatory assets | 12,270 |  | 636 |  | — |  | 507 |  | — |  | 13,413 |
Nuclear decommissioning trust funds | 7,052 |  | — |  | — |  | — |  | — |  | 7,052 |
Operating lease right-of-use assets, net | 1,215 |  | 23 |  | 104 |  | 290 |  | 1 |  | 1,633 |
Investments in equity method unconsolidated affiliates | 124 |  | 1,452 |  | 380 |  | 110 |  | 1 |  | 2,067 |
Investment in consolidated subsidiaries | 378 |  | 7 |  | 3 |  | 63,334 |  | (63,722 | ) | — |
Other | 2,166 |  | 159 |  | 169 |  | 1,456 |  | (635 | ) | 3,315 |
Total other noncurrent assets | 40,584 |  | 4,201 |  | 656 |  | 65,697 |  | (64,355 | ) | 46,783 |
Total Assets | 136,119 |  | 14,074 |  | 6,788 |  | 70,365 |  | (67,274 | ) | 160,072 |
Segment reclassifications, intercompany balances and other | (1,281 | ) | 24 |  | (604 | ) | (65,401 | ) | 67,262 |  | — |
Segment Assets | $ | 134,838 |  | $ | 14,098 |  | $ | 6,184 |  | $ | 4,964 |  | $ | (12 | ) | $ | 160,072 |

17

DUKE ENERGY CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY
(Unaudited)

| March 31, 2020
(In millions) | Electric Utilities and Infrastructure |  | Gas Utilities and Infrastructure |  | Commercial Renewables |  | Other |  | Eliminations/ Adjustments |  | Duke Energy |
Current Liabilities |  |  |  |  |  |
Accounts payable | $ | 1,671 |  | $ | 189 |  | $ | 128 |  | $ | 376 |  | $ | — |  | $ | 2,364 |
Accounts payable to affiliated companies | 599 |  | 16 |  | 80 |  | 582 |  | (1,277 | ) | — |
Notes payable to affiliated companies | 443 |  | 620 |  | 35 |  | 335 |  | (1,433 | ) | — |
Notes payable and commercial paper | — |  | — |  | 157 |  | 2,876 |  | — |  | 3,033 |
Taxes accrued | 465 |  | 50 |  | 323 |  | (345 | ) | — |  | 493 |
Interest accrued | 395 |  | 39 |  | 1 |  | 136 |  | — |  | 571 |
Current maturities of long-term debt | 2,355 |  | 26 |  | 162 |  | 2,537 |  | (3 | ) | 5,077 |
Asset retirement obligations | 802 |  | — |  | — |  | — |  | — |  | 802 |
Regulatory liabilities | 706 |  | 117 |  | — |  | 2 |  | 1 |  | 826 |
Other | 1,463 |  | 60 |  | 71 |  | 517 |  | (107 | ) | 2,004 |
Total current liabilities | 8,899 |  | 1,117 |  | 957 |  | 7,016 |  | (2,819 | ) | 15,170 |
Long-Term Debt | 34,713 |  | 3,066 |  | 1,538 |  | 17,093 |  | (99 | ) | 56,311 |
Long-Term Debt Payable to Affiliated Companies | 618 |  | 7 |  | 9 |  | — |  | (634 | ) | — |
Other Noncurrent Liabilities |  |  |  |  |  |
Deferred income taxes | 10,511 |  | 1,108 |  | (580 | ) | (1,718 | ) | — |  | 9,321 |
Asset retirement obligations | 12,311 |  | 55 |  | 131 |  | — |  | — |  | 12,497 |
Regulatory liabilities | 12,523 |  | 1,482 |  | — |  | 24 |  | — |  | 14,029 |
Operating lease liabilities | 1,096 |  | 22 |  | 106 |  | 190 |  | — |  | 1,414 |
Accrued pension and other post-retirement benefit costs | 590 |  | 32 |  | 3 |  | 295 |  | (1 | ) | 919 |
Investment tax credits | 657 |  | 2 |  | — |  | — |  | — |  | 659 |
Other | 822 |  | 255 |  | 287 |  | 494 |  | (189 | ) | 1,669 |
Total other noncurrent liabilities | 38,510 |  | 2,956 |  | (53 | ) | (715 | ) | (190 | ) | 40,508 |
Equity |  |  |  |  |  |
Total Duke Energy Corporation stockholders' equity | 53,379 |  | 6,928 |  | 3,178 |  | 46,969 |  | (63,533 | ) | 46,921 |
Noncontrolling interests | — |  | — |  | 1,159 |  | 2 |  | 1 |  | 1,162 |
Total equity | 53,379 |  | 6,928 |  | 4,337 |  | 46,971 |  | (63,532 | ) | 48,083 |
Total Liabilities and Equity | 136,119 |  | 14,074 |  | 6,788 |  | 70,365 |  | (67,274 | ) | 160,072 |
Segment reclassifications, intercompany balances and other | (1,281 | ) | 24 |  | (604 | ) | (65,401 | ) | 67,262 |  | — |
Segment Liabilities and Equity | $ | 134,838 |  | $ | 14,098 |  | $ | 6,184 |  | $ | 4,964 |  | $ | (12 | ) | $ | 160,072 |

18

ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING SEGMENT INCOME
(Unaudited)

| Three Months Ended March 31, 2020
(In millions) | Duke Energy Carolinas |  | Duke Energy Progress |  | Duke Energy Florida |  | Duke Energy Ohio(a) |  | Duke Energy Indiana |  | Eliminations/ Other |  | Electric Utilities and Infrastructure |
Operating Revenues | $ | 1,748 |  | $ | 1,338 |  | $ | 1,080 |  | $ | 346 |  | $ | 692 |  | $ | (21 | ) | $ | 5,183 |
Operating Expenses |  |  |  |  |  |  |
Fuel used in electric generation and purchased power | 453 |  | 405 |  | 358 |  | 87 |  | 194 |  | (30 | ) | 1,467 |
Operation, maintenance and other | 453 |  | 337 |  | 245 |  | 94 |  | 185 |  | 11 |  | 1,325 |
Depreciation and amortization | 343 |  | 287 |  | 165 |  | 47 |  | 132 |  | 3 |  | 977 |
Property and other taxes | 81 |  | 47 |  | 88 |  | 65 |  | 22 |  | — |  | 303 |
Impairment charges | 2 |  | — |  | — |  | — |  | — |  | — |  | 2 |
Total operating expenses | 1,332 |  | 1,076 |  | 856 |  | 293 |  | 533 |  | (16 | ) | 4,074 |
Gains (Losses) on Sales of Other Assets and Other, net | 1 |  | (1 | ) | — |  | — |  | — |  | 1 |  | 1 |
Operating Income | 417 |  | 261 |  | 224 |  | 53 |  | 159 |  | (4 | ) | 1,110 |
Other Income and Expenses, net(b) | 43 |  | 22 |  | 10 |  | 2 |  | 10 |  | (2 | ) | 85 |
Interest Expense | 123 |  | 69 |  | 84 |  | 20 |  | 43 |  | — |  | 339 |
Income Before Income Taxes | 337 |  | 214 |  | 150 |  | 35 |  | 126 |  | (6 | ) | 856 |
Income Tax Expense | 50 |  | 34 |  | 30 |  | 5 |  | 27 |  | 5 |  | 151 |
Segment Income | $ | 287 |  | $ | 180 |  | $ | 120 |  | $ | 30 |  | $ | 99 |  | $ | (11 | ) | $ | 705 |

(a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes an equity component of allowance for funds used during construction of $14 million for Duke Energy Carolinas, $10 million for Duke Energy Progress, $4 million for Duke Energy Florida, $1 million for Duke Energy Ohio and $6 million for Duke Energy Indiana.

19

ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS
(Unaudited)

| March 31, 2020
(In millions) | Duke Energy Carolinas |  | Duke Energy Progress |  | Duke Energy Florida |  | Duke Energy Ohio(a) |  | Duke Energy Indiana |  | Eliminations/ Adjustments(b) |  | Electric Utilities and Infrastructure |
Current Assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 16 |  | $ | 32 |  | $ | 12 |  | $ | 10 |  | $ | 15 |  | $ | — |  | $ | 85 |
Receivables, net | 212 |  | 77 |  | 80 |  | 88 |  | 50 |  | 2 |  | 509 |
Receivables of variable interest entities, net | 616 |  | 410 |  | 335 |  | — |  | — |  | 467 |  | 1,828 |
Receivables from affiliated companies | 87 |  | 50 |  | — |  | 46 |  | 76 |  | (163 | ) | 96 |
Notes receivable from affiliated companies | 436 |  | — |  | — |  | — |  | 543 |  | (363 | ) | 616 |
Inventory | 1,067 |  | 956 |  | 508 |  | 94 |  | 538 |  | 1 |  | 3,164 |
Regulatory assets | 524 |  | 503 |  | 451 |  | 17 |  | 78 |  | 3 |  | 1,576 |
Other | 32 |  | 56 |  | 37 |  | (3 | ) | 36 |  | (3 | ) | 155 |
Total current assets | 2,990 |  | 2,084 |  | 1,423 |  | 252 |  | 1,336 |  | (56 | ) | 8,029 |
Property, Plant and Equipment |  |  |  |  |  |  |
Cost | 49,534 |  | 34,898 |  | 20,880 |  | 7,005 |  | 16,482 |  | 391 |  | 129,190 |
Accumulated depreciation and amortization | (16,884 | ) | (12,114 | ) | (5,339 | ) | (2,031 | ) | (5,350 | ) | 3 |  | (41,715 | )
Generation facilities to be retired, net | — |  | 31 |  | — |  | — |  | — |  | — |  | 31 |
Net property, plant and equipment | 32,650 |  | 22,815 |  | 15,541 |  | 4,974 |  | 11,132 |  | 394 |  | 87,506 |
Other Noncurrent Assets |  |  |  |  |  |  |
Goodwill | — |  | — |  | — |  | 596 |  | — |  | 16,783 |  | 17,379 |
Regulatory assets | 3,427 |  | 4,392 |  | 2,097 |  | 355 |  | 1,098 |  | 901 |  | 12,270 |
Nuclear decommissioning trust funds | 3,717 |  | 2,644 |  | 691 |  | — |  | — |  | — |  | 7,052 |
Operating lease right-of-use assets, net | 132 |  | 377 |  | 386 |  | 21 |  | 57 |  | 242 |  | 1,215 |
Investments in equity method unconsolidated affiliates | — |  | — |  | — |  | — |  | — |  | 124 |  | 124 |
Investment in consolidated subsidiaries | 31 |  | 5 |  | 1 |  | 179 |  | 1 |  | 161 |  | 378 |
Other | 1,136 |  | 682 |  | 329 |  | 45 |  | 213 |  | (239 | ) | 2,166 |
Total other noncurrent assets | 8,443 |  | 8,100 |  | 3,504 |  | 1,196 |  | 1,369 |  | 17,972 |  | 40,584 |
Total Assets | 44,083 |  | 32,999 |  | 20,468 |  | 6,422 |  | 13,837 |  | 18,310 |  | 136,119 |
Segment reclassifications, intercompany balances and other | (344 | ) | (136 | ) | (103 | ) | (184 | ) | (135 | ) | (379 | ) | (1,281 | )
Reportable Segment Assets | $ | 43,739 |  | $ | 32,863 |  | $ | 20,365 |  | $ | 6,238 |  | $ | 13,702 |  | $ | 17,931 |  | $ | 134,838 |

(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company.

20

ELECTRIC UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY
(Unaudited)

| March 31, 2020
(In millions) | Duke Energy Carolinas |  | Duke Energy Progress |  | Duke Energy Florida |  | Duke Energy Ohio(a) |  | Duke Energy Indiana |  | Eliminations/ Adjustments(b) |  | Electric Utilities and Infrastructure |
Current Liabilities |  |  |  |  |  |  |
Accounts payable | $ | 605 |  | $ | 319 |  | $ | 411 |  | $ | 180 |  | $ | 157 |  | $ | (1 | ) | $ | 1,671 |
Accounts payable to affiliated companies | 225 |  | 208 |  | 111 |  | 15 |  | 66 |  | (26 | ) | 599 |
Notes payable to affiliated companies | — |  | 229 |  | 305 |  | 265 |  | — |  | (356 | ) | 443 |
Taxes accrued | 117 |  | 43 |  | 74 |  | 145 |  | 81 |  | 5 |  | 465 |
Interest accrued | 144 |  | 90 |  | 79 |  | 22 |  | 60 |  | — |  | 395 |
Current maturities of long-term debt | 457 |  | 1,006 |  | 322 |  | (26 | ) | 503 |  | 93 |  | 2,355 |
Asset retirement obligations | 197 |  | 421 |  | — |  | 3 |  | 181 |  | — |  | 802 |
Regulatory liabilities | 275 |  | 263 |  | 84 |  | 37 |  | 46 |  | 1 |  | 706 |
Other | 478 |  | 429 |  | 383 |  | 65 |  | 92 |  | 16 |  | 1,463 |
Total current liabilities | 2,498 |  | 3,008 |  | 1,769 |  | 706 |  | 1,186 |  | (268 | ) | 8,899 |
Long-Term Debt | 12,050 |  | 7,903 |  | 7,384 |  | 2,046 |  | 3,950 |  | 1,380 |  | 34,713 |
Long-Term Debt Payable to Affiliated Companies | 300 |  | 150 |  | — |  | 18 |  | 150 |  | — |  | 618 |
Other Noncurrent Liabilities |  |  |  |  |  |  |
Deferred income taxes | 4,015 |  | 2,458 |  | 2,193 |  | 665 |  | 1,158 |  | 22 |  | 10,511 |
Asset retirement obligations | 5,552 |  | 5,442 |  | 578 |  | 40 |  | 645 |  | 54 |  | 12,311 |
Regulatory liabilities | 5,766 |  | 3,790 |  | 918 |  | 381 |  | 1,672 |  | (4 | ) | 12,523 |
Operating lease liabilities | 112 |  | 344 |  | 334 |  | 20 |  | 54 |  | 232 |  | 1,096 |
Accrued pension and other post-retirement benefit costs | 82 |  | 235 |  | 214 |  | 76 |  | 148 |  | (165 | ) | 590 |
Investment tax credits | 230 |  | 135 |  | 119 |  | 3 |  | 170 |  | — |  | 657 |
Other | 641 |  | 85 |  | 50 |  | 66 |  | 30 |  | (50 | ) | 822 |
Total other noncurrent liabilities | 16,398 |  | 12,489 |  | 4,406 |  | 1,251 |  | 3,877 |  | 89 |  | 38,510 |
Equity | 12,837 |  | 9,449 |  | 6,909 |  | 2,401 |  | 4,674 |  | 17,109 |  | 53,379 |
Total Liabilities and Equity | 44,083 |  | 32,999 |  | 20,468 |  | 6,422 |  | 13,837 |  | 18,310 |  | 136,119 |
Segment reclassifications, intercompany balances and other | (344 | ) | (136 | ) | (103 | ) | (184 | ) | (135 | ) | (379 | ) | (1,281 | )
Reportable Segment Liabilities and Equity | $ | 43,739 |  | $ | 32,863 |  | $ | 20,365 |  | $ | 6,238 |  | $ | 13,702 |  | $ | 17,931 |  | $ | 134,838 |

(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes the elimination of intercompany balances and purchase accounting adjustments.

21

GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING SEGMENT INCOME
(Unaudited)

| Three Months Ended March 31, 2020
(In millions) | Duke Energy Ohio(a) |  | Piedmont Natural Gas LDC |  | Midstream Pipelines and Storage(b) |  | Eliminations/ Adjustments |  | Gas Utilities and Infrastructure |
Operating Revenues | $ | 152 |  | $ | 512 |  | $ | — |  | $ | — |  | $ | 664 |
Operating Expenses |  |  |  |  |
Cost of natural gas | 37 |  | 162 |  | — |  | — |  | 199 |
Operation, maintenance and other | 29 |  | 79 |  | 2 |  | — |  | 110 |
Depreciation and amortization | 21 |  | 45 |  | — |  | — |  | 66 |
Property and other taxes | 18 |  | 12 |  | — |  | — |  | 30 |
Total operating expenses | 105 |  | 298 |  | 2 |  | — |  | 405 |
Operating Income (Loss) | 47 |  | 214 |  | (2 | ) | — |  | 259 |
Other Income and Expenses |  |  |  |  |
Equity in earnings of unconsolidated affiliates | — |  | — |  | 37 |  | — |  | 37 |
Other income and expenses, net | 1 |  | 9 |  | — |  | 2 |  | 12 |
Total other income and expenses | 1 |  | 9 |  | 37 |  | 2 |  | 49 |
Interest Expense | 4 |  | 27 |  | — |  | — |  | 31 |
Income Before Income Taxes | 44 |  | 196 |  | 35 |  | 2 |  | 277 |
Income Tax Expense | 8 |  | 28 |  | — |  | (8 | ) | 28 |
Segment Income | $ | 36 |  | $ | 168 |  | $ | 35 |  | $ | 10 |  | $ | 249 |

(a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities.

22

GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS – ASSETS
(Unaudited)

| March 31, 2020
(In millions) | Duke Energy Ohio(a) |  | Piedmont Natural Gas LDC |  | Midstream Pipelines and Storage |  | Eliminations/ Adjustments(b) |  | Gas Utilities and Infrastructure |
Current Assets |  |  |  |  |
Cash and cash equivalents | $ | 4 |  | $ | 4 |  | $ | — |  | $ | (1 | ) | $ | 7 |
Receivables, net | (4 | ) | 191 |  | — |  | — |  | 187 |
Receivables from affiliated companies | 5 |  | 89 |  | — |  | (79 | ) | 15 |
Inventory | 27 |  | 39 |  | — |  | (1 | ) | 65 |
Regulatory assets | 1 |  | 96 |  | — |  | — |  | 97 |
Other | (1 | ) | 11 |  | 1 |  | 2 |  | 13 |
Total current assets | 32 |  | 430 |  | 1 |  | (79 | ) | 384 |
Property, Plant and Equipment |  |  |  |  |
Cost | 3,396 |  | 8,648 |  | — |  | — |  | 12,044 |
Accumulated depreciation and amortization | (852 | ) | (1,703 | ) | — |  | — |  | (2,555 | )
Net property, plant and equipment | 2,544 |  | 6,945 |  | — |  | — |  | 9,489 |
Other Noncurrent Assets |  |  |  |  |
Goodwill | 324 |  | 49 |  | — |  | 1,551 |  | 1,924 |
Regulatory assets | 226 |  | 263 |  | — |  | 147 |  | 636 |
Operating lease right-of-use assets, net | — |  | 23 |  | — |  | — |  | 23 |
Investments in equity method unconsolidated affiliates | — |  | — |  | 1,442 |  | 10 |  | 1,452 |
Investment in consolidated subsidiaries | — |  | — |  | — |  | 7 |  | 7 |
Other | 10 |  | 132 |  | 16 |  | 1 |  | 159 |
Total other noncurrent assets | 560 |  | 467 |  | 1,458 |  | 1,716 |  | 4,201 |
Total Assets | 3,136 |  | 7,842 |  | 1,459 |  | 1,637 |  | 14,074 |
Segment reclassifications, intercompany balances and other | (1 | ) | (18 | ) | (13 | ) | 56 |  | 24 |
Reportable Segment Assets | $ | 3,135 |  | $ | 7,824 |  | $ | 1,446 |  | $ | 1,693 |  | $ | 14,098 |

(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes the elimination of intercompany balances and purchase accounting adjustments.

23

GAS UTILITIES AND INFRASTRUCTURE
CONDENSED CONSOLIDATING BALANCE SHEETS – LIABILITIES AND EQUITY
(Unaudited)

| March 31, 2020
(In millions) | Duke Energy Ohio(a) |  | Piedmont Natural Gas LDC |  | Midstream Pipelines and Storage |  | Eliminations/ Adjustments(b) |  | Gas Utilities and Infrastructure |
Current Liabilities |  |  |  |  |
Accounts payable | $ | 44 |  | $ | 144 |  | $ | — |  | $ | 1 |  | $ | 189 |
Accounts payable to affiliated companies | — |  | 17 |  | 79 |  | (80 | ) | 16 |
Notes payable to affiliated companies | 134 |  | 486 |  | — |  | — |  | 620 |
Taxes accrued | 15 |  | 32 |  | 4 |  | (1 | ) | 50 |
Interest accrued | 8 |  | 32 |  | — |  | (1 | ) | 39 |
Current maturities of long-term debt | 26 |  | — |  | — |  | — |  | 26 |
Regulatory liabilities | 26 |  | 91 |  | — |  | — |  | 117 |
Other | 4 |  | 55 |  | — |  | 1 |  | 60 |
Total current liabilities | 257 |  | 857 |  | 83 |  | (80 | ) | 1,117 |
Long-Term Debt | 549 |  | 2,385 |  | — |  | 132 |  | 3,066 |
Long-Term Debt Payable to Affiliated Companies | 7 |  | — |  | — |  | — |  | 7 |
Other Noncurrent Liabilities |  |  |  |  |
Deferred income taxes | 288 |  | 727 |  | 114 |  | (21 | ) | 1,108 |
Asset retirement obligations | 38 |  | 17 |  | — |  | — |  | 55 |
Regulatory liabilities | 381 |  | 1,087 |  | — |  | 14 |  | 1,482 |
Operating lease liabilities | — |  | 22 |  | — |  | — |  | 22 |
Accrued pension and other post-retirement benefit costs | 25 |  | 7 |  | — |  | — |  | 32 |
Investment tax credits | 2 |  | — |  | — |  | — |  | 2 |
Other | 28 |  | 119 |  | 11 |  | 97 |  | 255 |
Total other noncurrent liabilities | 762 |  | 1,979 |  | 125 |  | 90 |  | 2,956 |
Equity | 1,561 |  | 2,621 |  | 1,251 |  | 1,495 |  | 6,928 |
Total Liabilities and Equity | 3,136 |  | 7,842 |  | 1,459 |  | 1,637 |  | 14,074 |
Segment reclassifications, intercompany balances and other | (1 | ) | (18 | ) | (13 | ) | 56 |  | 24 |
Reportable Segment Liabilities and Equity | $ | 3,135 |  | $ | 7,824 |  | $ | 1,446 |  | $ | 1,693 |  | $ | 14,098 |

(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.

(b) | Includes the elimination of intercompany balances and purchase accounting adjustments.

24

Electric Utilities and Infrastructure
Quarterly Highlights
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
Gigawatt-hour (GWh) Sales(a) |  |  |  |  |  |  |
| Residential | 20,874 |  |  | 22,218 |  |  | (6.0 | %) |  | (0.9 | %)
| General Service | 17,682 |  |  | 17,917 |  |  | (1.3 | %) |  | 0.6 | %
| Industrial | 11,983 |  |  | 12,048 |  |  | (0.5 | %) |  | — | %
| Other Energy Sales | 144 |  |  | 145 |  |  | (0.7 | %) |  | n/a |
| Unbilled Sales | (585 | ) |  | (1,336 | ) |  | 56.2 | % |  | n/a |
| Total Retail Sales | 50,098 |  |  | 50,992 |  |  | (1.8 | %) |  | (0.2 | %)
| Wholesale and Other | 8,854 |  |  | 9,702 |  |  | (8.7 | %) |  |
| Total Consolidated Electric Sales – Electric Utilities and Infrastructure | 58,952 |  |  | 60,694 |  |  | (2.9 | %) |  |
Average Number of Customers (Electric) |  |  |  |  |  |  |
| Residential | 6,811,644 |  |  | 6,709,086 |  |  | 1.5 | % |  |
| General Service | 996,789 |  |  | 988,438 |  |  | 0.8 | % |  |
| Industrial | 17,314 |  |  | 17,398 |  |  | (0.5 | %) |  |
| Other Energy Sales | 30,930 |  |  | 28,556 |  |  | 8.3 | % |  |
| Total Retail Customers | 7,856,677 |  |  | 7,743,478 |  |  | 1.5 | % |  |
| Wholesale and Other | 46 |  |  | 51 |  |  | (9.8 | %) |  |
| Total Average Number of Customers – Electric Utilities and Infrastructure | 7,856,723 |  |  | 7,743,529 |  |  | 1.5 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 7,152 |  |  | 11,486 |  |  | (37.7 | %) |  |
| Nuclear | 18,804 |  |  | 18,590 |  |  | 1.2 | % |  |
| Hydro | 1,021 |  |  | 1,053 |  |  | (3.0 | %) |  |
| Oil and Natural Gas | 19,587 |  |  | 17,649 |  |  | 11.0 | % |  |
| Renewable Energy | 215 |  |  | 125 |  |  | 72.0 | % |  |
| Total Generation(d) | 46,779 |  |  | 48,903 |  |  | (4.3 | %) |  |
| Purchased Power and Net Interchange(e) | 15,163 |  |  | 14,912 |  |  | 1.7 | % |  |
| Total Sources of Energy | 61,942 |  |  | 63,815 |  |  | (2.9 | %) |  |
| Less: Line Loss and Other | 2,990 |  |  | 3,121 |  |  | (4.2 | %) |  |
| Total GWh Sources | 58,952 |  |  | 60,694 |  |  | (2.9 | %) |  |
Owned Megawatt (MW) Capacity(c) |  |  |  |  |  |  |
| Summer | 50,635 |  |  | 50,888 |  |  |  |  |
| Winter | 54,175 |  |  | 54,574 |  |  |  |  |
Nuclear Capacity Factor (%)(f) | 97 |  |  | 98 |  |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

(f) | Statistics reflect 100% of jointly owned stations.

25

Duke Energy Carolinas
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
GWh Sales(a) |  |  |  |  |  |  |
| Residential | 7,361 |  |  | 7,755 |  |  | (5.1 | %) |  |
| General Service | 6,815 |  |  | 6,822 |  |  | (0.1 | %) |  |
| Industrial | 4,875 |  |  | 4,934 |  |  | (1.2 | %) |  |
| Other Energy Sales | 79 |  |  | 80 |  |  | (1.3 | %) |  |
| Unbilled Sales | (75 | ) |  | (355 | ) |  | 78.9 | % |  |
| Total Retail Sales | 19,055 |  |  | 19,236 |  |  | (0.9 | %) |  | 0.8 | %
| Wholesale and Other | 2,181 |  |  | 2,592 |  |  | (15.9 | %) |  |
| Total Consolidated Electric Sales – Duke Energy Carolinas | 21,236 |  |  | 21,828 |  |  | (2.7 | %) |  |
Average Number of Customers |  |  |  |  |  |  |
| Residential | 2,285,112 |  |  | 2,244,914 |  |  | 1.8 | % |  |
| General Service | 364,075 |  |  | 360,183 |  |  | 1.1 | % |  |
| Industrial | 6,113 |  |  | 6,131 |  |  | (0.3 | %) |  |
| Other Energy Sales | 22,787 |  |  | 20,522 |  |  | 11.0 | % |  |
| Total Retail Customers | 2,678,087 |  |  | 2,631,750 |  |  | 1.8 | % |  |
| Wholesale and Other | 24 |  |  | 20 |  |  | 20.0 | % |  |
| Total Average Number of Customers – Duke Energy Carolinas | 2,678,111 |  |  | 2,631,770 |  |  | 1.8 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 2,459 |  |  | 3,222 |  |  | (23.7 | %) |  |
| Nuclear | 11,522 |  |  | 11,466 |  |  | 0.5 | % |  |
| Hydro | 743 |  |  | 779 |  |  | (4.6 | %) |  |
| Oil and Natural Gas | 4,868 |  |  | 4,081 |  |  | 19.3 | % |  |
| Renewable Energy | 44 |  |  | 34 |  |  | 29.4 | % |  |
| Total Generation(d) | 19,636 |  |  | 19,582 |  |  | 0.3 | % |  |
| Purchased Power and Net Interchange(e) | 2,415 |  |  | 2,902 |  |  | (16.8 | %) |  |
| Total Sources of Energy | 22,051 |  |  | 22,484 |  |  | (1.9 | %) |  |
| Less: Line Loss and Other | 815 |  |  | 656 |  |  | 24.2 | % |  |
| Total GWh Sources | 21,236 |  |  | 21,828 |  |  | (2.7 | %) |  |
Owned MW Capacity(c) |  |  |  |  |  |  |
| Summer | 20,192 |  |  | 20,209 |  |  |  |  |
| Winter | 21,127 |  |  | 21,137 |  |  |  |  |
Nuclear Capacity Factor (%)(f) | 99 |  |  | 100 |  |  |  |  |
Heating and Cooling Degree Days |  |  |  |  |  |  |
| Actual |  |  |  |  |  |  |
| Heating Degree Days | 1,390 |  |  | 1,603 |  |  | (13.3 | %) |  |
| Cooling Degree Days | 35 |  |  | 4 |  |  | 775.0 | % |  |
| Variance from Normal |  |  |  |  |  |  |
| Heating Degree Days | (19.6 | %) |  | (6.9 | %) |  |  |  |
| Cooling Degree Days | 382.8 | % |  | (46.0 | %) |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

(f) | Statistics reflect 100% of jointly owned stations.

26

Duke Energy Progress
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
GWh Sales(a) |  |  |  |  |  |  |
| Residential | 4,618 |  |  | 4,898 |  |  | (5.7 | %) |  |
| General Service | 3,471 |  |  | 3,538 |  |  | (1.9 | %) |  |
| Industrial | 2,497 |  |  | 2,501 |  |  | (0.2 | %) |  |
| Other Energy Sales | 19 |  |  | 19 |  |  | — | % |  |
| Unbilled Sales | (355 | ) |  | (364 | ) |  | 2.5 | % |  |
| Total Retail Sales | 10,250 |  |  | 10,592 |  |  | (3.2 | %) |  | (0.3 | %)
| Wholesale and Other | 5,420 |  |  | 5,756 |  |  | (5.8 | %) |  |
| Total Consolidated Electric Sales – Duke Energy Progress | 15,670 |  |  | 16,348 |  |  | (4.1 | %) |  |
Average Number of Customers |  |  |  |  |  |  |
| Residential | 1,362,360 |  |  | 1,341,886 |  |  | 1.5 | % |  |
| General Service | 237,477 |  |  | 235,425 |  |  | 0.9 | % |  |
| Industrial | 4,002 |  |  | 4,047 |  |  | (1.1 | %) |  |
| Other Energy Sales | 1,416 |  |  | 1,417 |  |  | (0.1 | %) |  |
| Total Retail Customers | 1,605,255 |  |  | 1,582,775 |  |  | 1.4 | % |  |
| Wholesale and Other | 9 |  |  | 14 |  |  | (35.7 | %) |  |
| Total Average Number of Customers – Duke Energy Progress | 1,605,264 |  |  | 1,582,789 |  |  | 1.4 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 615 |  |  | 1,781 |  |  | (65.5 | %) |  |
| Nuclear | 7,282 |  |  | 7,124 |  |  | 2.2 | % |  |
| Hydro | 241 |  |  | 252 |  |  | (4.4 | %) |  |
| Oil and Natural Gas | 5,891 |  |  | 5,438 |  |  | 8.3 | % |  |
| Renewable Energy | 52 |  |  | 46 |  |  | 13.0 | % |  |
| Total Generation(d) | 14,081 |  |  | 14,641 |  |  | (3.8 | %) |  |
| Purchased Power and Net Interchange(e) | 2,099 |  |  | 2,201 |  |  | (4.6 | %) |  |
| Total Sources of Energy | 16,180 |  |  | 16,842 |  |  | (3.9 | %) |  |
| Less: Line Loss and Other | 510 |  |  | 494 |  |  | 3.2 | % |  |
| Total GWh Sources | 15,670 |  |  | 16,348 |  |  | (4.1 | %) |  |
Owned MW Capacity(c) |  |  |  |  |  |  |
| Summer | 12,442 |  |  | 12,779 |  |  |  |  |
| Winter | 13,497 |  |  | 13,942 |  |  |  |  |
Nuclear Capacity Factor (%)(f) | 93 |  |  | 92 |  |  |  |  |
Heating and Cooling Degree Days |  |  |  |  |  |  |
| Actual |  |  |  |  |  |  |
| Heating Degree Days | 1,186 |  |  | 1,483 |  |  | (20.0 | %) |  |
| Cooling Degree Days | 52 |  |  | 6 |  |  | 766.7 | % |  |
| Variance from Normal |  |  |  |  |  |  |
| Heating Degree Days | (25.8 | %) |  | (7.8 | %) |  |  |  |
| Cooling Degree Days | 349.1 | % |  | (45.5 | %) |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

(f) | Statistics reflect 100% of jointly owned stations.

27

Duke Energy Florida
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
GWh Sales(a) |  |  |  |  |  |  |
| Residential | 4,060 |  |  | 4,214 |  |  | (3.7 | %) |  |
| General Service | 3,285 |  |  | 3,273 |  |  | 0.4 | % |  |
| Industrial | 769 |  |  | 677 |  |  | 13.6 | % |  |
| Other Energy Sales | 6 |  |  | 6 |  |  | — | % |  |
| Unbilled Sales | 183 |  |  | (232 | ) |  | 178.9 | % |  |
| Total Retail Sales | 8,303 |  |  | 7,938 |  |  | 4.6 | % |  | 0.7 | %
| Wholesale and Other | 314 |  |  | 383 |  |  | (18.0 | %) |  |
| Total Electric Sales – Duke Energy Florida | 8,617 |  |  | 8,321 |  |  | 3.6 | % |  |
Average Number of Customers |  |  |  |  |  |  |
| Residential | 1,642,342 |  |  | 1,616,295 |  |  | 1.6 | % |  |
| General Service | 204,184 |  |  | 202,710 |  |  | 0.7 | % |  |
| Industrial | 2,010 |  |  | 2,039 |  |  | (1.4 | %) |  |
| Other Energy Sales | 1,492 |  |  | 1,504 |  |  | (0.8 | %) |  |
| Total Retail Customers | 1,850,028 |  |  | 1,822,548 |  |  | 1.5 | % |  |
| Wholesale and Other | 8 |  |  | 12 |  |  | (33.3 | %) |  |
| Total Average Number of Customers – Duke Energy Florida | 1,850,036 |  |  | 1,822,560 |  |  | 1.5 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 35 |  |  | 618 |  |  | (94.3 | %) |  |
| Oil and Natural Gas | 8,266 |  |  | 7,487 |  |  | 10.4 | % |  |
| Renewable Energy | 114 |  |  | 41 |  |  | 178.0 | % |  |
| Total Generation(d) | 8,415 |  |  | 8,146 |  |  | 3.3 | % |  |
| Purchased Power and Net Interchange(e) | 901 |  |  | 860 |  |  | 4.8 | % |  |
| Total Sources of Energy | 9,316 |  |  | 9,006 |  |  | 3.4 | % |  |
| Less: Line Loss and Other | 699 |  |  | 685 |  |  | 2.0 | % |  |
| Total GWh Sources | 8,617 |  |  | 8,321 |  |  | 3.6 | % |  |
Owned MW Capacity(c) |  |  |  |  |  |  |
| Summer | 10,302 |  |  | 10,218 |  |  |  |  |
| Winter | 11,347 |  |  | 11,308 |  |  |  |  |
Heating and Cooling Degree Days |  |  |  |  |  |  |
| Actual |  |  |  |  |  |  |
| Heating Degree Days | 220 |  |  | 271 |  |  | (18.8 | %) |  |
| Cooling Degree Days | 470 |  |  | 244 |  |  | 92.6 | % |  |
| Variance from Normal |  |  |  |  |  |  |
| Heating Degree Days | (9.8 | %) |  | (26.9 | %) |  |  |  |
| Cooling Degree Days | 138.0 | % |  | 27.8 | % |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

28

Duke Energy Ohio
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
GWh Sales(a) |  |  |  |  |  |  |
| Residential | 2,290 |  |  | 2,523 |  |  | (9.2 | %) |  |
| General Service | 2,198 |  |  | 2,275 |  |  | (3.4 | %) |  |
| Industrial | 1,365 |  |  | 1,394 |  |  | (2.1 | %) |  |
| Other Energy Sales | 27 |  |  | 27 |  |  | — | % |  |
| Unbilled Sales | (152 | ) |  | (197 | ) |  | 22.8 | % |  |
| Total Retail Sales | 5,728 |  |  | 6,022 |  |  | (4.9 | %) |  | (0.8 | %)
| Wholesale and Other | 95 |  |  | 142 |  |  | (33.1 | %) |  |
| Total Electric Sales – Duke Energy Ohio | 5,823 |  |  | 6,164 |  |  | (5.5 | %) |  |
Average Number of Customers |  |  |  |  |  |  |
| Residential | 779,652 |  |  | 772,754 |  |  | 0.9 | % |  |
| General Service | 88,871 |  |  | 88,493 |  |  | 0.4 | % |  |
| Industrial | 2,491 |  |  | 2,481 |  |  | 0.4 | % |  |
| Other Energy Sales | 3,431 |  |  | 3,377 |  |  | 1.6 | % |  |
| Total Retail Customers | 874,445 |  |  | 867,105 |  |  | 0.8 | % |  |
| Wholesale and Other | 1 |  |  | 1 |  |  | — | % |  |
| Total Average Number of Customers – Duke Energy Ohio | 874,446 |  |  | 867,106 |  |  | 0.8 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 622 |  |  | 371 |  |  | 67.7 | % |  |
| Oil and Natural Gas | (1 | ) |  | 1 |  |  | (200.0 | %) |  |
| Total Generation(d) | 621 |  |  | 372 |  |  | 66.9 | % |  |
| Purchased Power and Net Interchange(e) | 5,874 |  |  | 6,601 |  |  | (11.0 | %) |  |
| Total Sources of Energy | 6,495 |  |  | 6,973 |  |  | (6.9 | %) |  |
| Less: Line Loss and Other | 672 |  |  | 809 |  |  | (16.9 | %) |  |
| Total GWh Sources | 5,823 |  |  | 6,164 |  |  | (5.5 | %) |  |
Owned MW Capacity(c) |  |  |  |  |  |  |
| Summer | 1,076 |  |  | 1,076 |  |  |  |  |
| Winter | 1,164 |  |  | 1,164 |  |  |  |  |
Heating and Cooling Degree Days |  |  |  |  |  |  |
| Actual |  |  |  |  |  |  |
| Heating Degree Days | 2,186 |  |  | 2,571 |  |  | (15.0 | %) |  |
| Cooling Degree Days | 5 |  |  | — |  |  | — | % |  |
| Variance from Normal |  |  |  |  |  |  |
| Heating Degree Days | (15.1 | %) |  | 0.6 | % |  |  |  |
| Cooling Degree Days | 45.7 | % |  | (100.0 | %) |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

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Duke Energy Indiana
Quarterly Highlights
Supplemental Electric Utilities and Infrastructure Information
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc.(Dec.) |  | % Inc. (Dec.) Weather Normal(b)
GWh Sales(a) |  |  |  |  |  |  |
| Residential | 2,545 |  |  | 2,828 |  |  | (10.0 | %) |  |
| General Service | 1,913 |  |  | 2,009 |  |  | (4.8 | %) |  |
| Industrial | 2,477 |  |  | 2,542 |  |  | (2.6 | %) |  |
| Other Energy Sales | 13 |  |  | 13 |  |  | — | % |  |
| Unbilled Sales | (186 | ) |  | (188 | ) |  | (1.1 | %) |  |
| Total Retail Sales | 6,762 |  |  | 7,204 |  |  | (6.1 | %) |  | (3.1 | %)
| Wholesale and Other | 844 |  |  | 829 |  |  | 1.8 | % |  |
| Total Electric Sales – Duke Energy Indiana | 7,606 |  |  | 8,033 |  |  | (5.3 | %) |  |
Average Number of Customers |  |  |  |  |  |  |
| Residential | 742,178 |  |  | 733,237 |  |  | 1.2 | % |  |
| General Service | 102,182 |  |  | 101,627 |  |  | 0.5 | % |  |
| Industrial | 2,698 |  |  | 2,700 |  |  | (0.1 | %) |  |
| Other Energy Sales | 1,804 |  |  | 1,736 |  |  | 3.9 | % |  |
| Total Retail Customers | 848,862 |  |  | 839,300 |  |  | 1.1 | % |  |
| Wholesale and Other | 4 |  |  | 4 |  |  | — | % |  |
| Total Average Number of Customers – Duke Energy Indiana | 848,866 |  |  | 839,304 |  |  | 1.1 | % |  |
Sources of Electric Energy (GWh) |  |  |  |  |  |  |
| Generated – Net Output(c) |  |  |  |  |  |  |
| Coal | 3,421 |  |  | 5,494 |  |  | (37.7 | %) |  |
| Hydro | 37 |  |  | 22 |  |  | 68.2 | % |  |
| Oil and Natural Gas | 563 |  |  | 642 |  |  | (12.3 | %) |  |
| Renewable Energy | 5 |  |  | 4 |  |  | 25.0 | % |  |
| Total Generation(d) | 4,026 |  |  | 6,162 |  |  | (34.7 | %) |  |
| Purchased Power and Net Interchange(e) | 3,874 |  |  | 2,348 |  |  | 65.0 | % |  |
| Total Sources of Energy | 7,900 |  |  | 8,510 |  |  | (7.2 | %) |  |
| Less: Line Loss and Other | 294 |  |  | 477 |  |  | (38.4 | %) |  |
| Total GWh Sources | 7,606 |  |  | 8,033 |  |  | (5.3 | %) |  |
Owned MW Capacity(c) |  |  |  |  |  |  |
| Summer | 6,623 |  |  | 6,606 |  |  |  |  |
| Winter | 7,040 |  |  | 7,023 |  |  |  |  |
Heating and Cooling Degree Days |  |  |  |  |  |  |
| Actual |  |  |  |  |  |  |
| Heating Degree Days | 2,457 |  |  | 2,884 |  |  | (14.8 | %) |  |
| Cooling Degree Days | — |  |  | — |  |  | — | % |  |
| Variance from Normal |  |  |  |  |  |  |
| Heating Degree Days | (10.6 | %) |  | 4.6 | % |  |  |  |
| Cooling Degree Days | (100.0 | %) |  | (100.0 | %) |  |  |  |

(a) | Except as indicated in footnote (b), 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.

(b) | Represents weather-normal total retail calendar sales (i.e., billed and unbilled sales).

(c) | Statistics reflect Duke Energy's ownership share of jointly owned stations.

(d) | Generation by source is reported net of auxiliary power.

(e) | Purchased power includes renewable energy purchases.

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Gas Utilities and Infrastructure
Quarterly Highlights
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc. (Dec.)
Total Sales |  |  |  |  |
| Piedmont Natural Gas Local Distribution Company (LDC) throughput (dekatherms)(a) | 148,503,995 |  |  | 151,662,741 |  |  | (2.1 | %)
| Duke Energy Midwest LDC throughput (Mcf) | 33,785,834 |  |  | 38,538,272 |  |  | (12.3 | %)
Average Number of Customers – Piedmont Natural Gas |  |  |  |  |
| Residential | 998,267 |  |  | 983,440 |  |  | 1.5 | %
| Commercial | 105,460 |  |  | 104,720 |  |  | 0.7 | %
| Industrial | 974 |  |  | 966 |  |  | 0.8 | %
| Power Generation | 17 |  |  | 17 |  |  | — | %
| Total Average Number of Gas Customers – Piedmont Natural Gas | 1,104,718 |  |  | 1,089,143 |  |  | 1.4 | %
Average Number of Customers – Duke Energy Midwest |  |  |  |  |
| Residential | 496,426 |  |  | 493,168 |  |  | 0.7 | %
| General Service | 45,131 |  |  | 45,347 |  |  | (0.5 | %)
| Industrial | 1,622 |  |  | 1,679 |  |  | (3.4 | %)
| Other | 132 |  |  | 135 |  |  | (2.2 | %)
| Total Average Number of Gas Customers – Duke Energy Midwest | 543,311 |  |  | 540,329 |  |  | 0.6 | %

(a) | Piedmont has a margin decoupling mechanism in North Carolina, weather normalization mechanisms in South Carolina and Tennessee and fixed-price contracts with most power generation customers that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact.

Commercial Renewables
Quarterly Highlights
March 2020
|  | Three Months Ended March 31,
|  | 2020 |  | 2019 |  | % Inc. (Dec.)
| Renewable Plant Production, GWh | 2,437 |  |  | 2,068 |  |  | 17.8 | %
| Net Proportional MW Capacity in Operation(a) | 3,502 |  |  | 2,996 |  |  | 16.9 | %

(a) Includes 100% tax equity project capacity.
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