XML 96 R55.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Variable Interest Entities | 3 Months Ended
--- | ---
Mar. 31, 2024
Variable Interest Entities [Abstract] |
Variable Interest Entities | VARIABLE INTEREST ENTITIES CONSOLIDATED VIEs The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs. No financial support was provided to any of the consolidated VIEs during the three months ended March 31, 2024, and the year ended December 31, 2023, or is expected to be provided in the future that was not previously contractually required. Receivables Financing – DERF/DEPR/DEFR DERF, DEPR and DEFR are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with separate legal existence from their parent companies, and their assets are not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the sale of electricity and related services from their parent companies. DERF, DEPR and DEFR borrow amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities is limited to the amount of qualified receivables purchased, which generally exclude receivables past due more than a predetermined number of days and reserves for expected past-due balances. The sole source of funds to satisfy the related debt obligations is cash collections from the receivables. Amounts borrowed under the DEPR credit facility are reflected on the Condensed Consolidated Balance Sheets as Long-Term Debt. Amounts borrowed under the DERF and DEFR credit facilities are reflected on the Condensed Consolidated Balance Sheets as Current maturities of long-term debt. The most significant activity that impacts the economic performance of DERF, DEPR and DEFR are the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are considered the primary beneficiaries and consolidate DERF, DEPR and DEFR, respectively, as they make those decisions. In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings totaling $325 million and terminated the related DEFR credit facility. Additionally, Duke Energy Florida's related restricted receivables outstanding at DEFR at the time of termination totaled $459 million and were transferred back to Duke Energy Florida to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets. Receivables Financing – CRC CRC is a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC bought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC then borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility was limited to the amount of qualified receivables sold to CRC, which generally excluded receivables past due more than a predetermined number of days and reserved for expected past-due balances. The sole source of funds to satisfy the related debt obligation was cash collections from the receivables. The proceeds Duke Energy Ohio and Duke Energy Indiana received from the sale of receivables to CRC were approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note was a retained interest in the receivables sold. Depending on collection experience, additional equity infusions to CRC would be required by Duke Energy to maintain a minimum equity balance of $3 million. CRC was considered a VIE because (i) equity capitalization was insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity was not held by the equity holder and (iii) deficiencies in net worth of CRC were funded by Duke Energy. The most significant activities that impacted the economic performance of CRC were decisions made to manage delinquent receivables. Duke Energy was considered the primary beneficiary and consolidated CRC as it made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidated CRC. In March 2024, Duke Energy repaid all outstanding CRC borrowings totaling $350 million and terminated the related CRC credit facility. Additionally, Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Condensed Consolidated Balance Sheets. Receivables Financing – Credit Facilities The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.
| Duke Energy
|  |  | Duke Energy |  | Duke Energy |  | Duke Energy
|  |  | Carolinas |  | Progress |  | Florida
(in millions) | CRC |  | DERF |  | DEPR |  | DEFR
Expiration date | (a) |  | January 2025 |  | April 2025 |  | (b)
Credit facility amount | (a) |  | $ | 500 |  |  | $ | 400 |  |  | (b)
Amounts borrowed at March 31, 2024 | — |  |  | 500 |  |  | 400 |  |  | 325 |
Amounts borrowed at December 31, 2023 | 312 |  |  | 500 |  |  | 400 |  |  | 325 |
Restricted Receivables at March 31, 2024 | — |  |  | 997 |  |  | 789 |  |  | 467 |
Restricted Receivables at December 31, 2023 | 663 |  |  | 991 |  |  | 833 |  |  | 532 |
(a) In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related $350 million CRC credit facility. (b) In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings and terminated the related $325 million DEFR credit facility. Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3. In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida. DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF. The following table summarizes the impact of DEFPF on Duke Energy Florida's Condensed Consolidated Balance Sheets.
(in millions) | March 31, 2024 | December 31, 2023
Regulatory Assets: Current | 59 |  | 59 |
Current Assets: Other | 9 |  | 37 |
Other Noncurrent Assets: Regulatory assets | 790 |  | 803 |
Current Liabilities: Other | 2 |  | 8 |
Current maturities of long-term debt | 59 |  | 59 |
Long-Term Debt | 800 |  | 831 |
Storm Recovery Bonds – Duke Energy Carolinas NC Storm Funding and Duke Energy Progress NC Storm Funding Duke Energy Carolinas NC Storm Funding, LLC (DECNCSF) and Duke Energy Progress NC Storm Funding, LLC (DEPNCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress, respectively. These entities were formed in 2021 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in North Carolina. In November 2021, DECNCSF and DEPNCSF issued $237 million and $770 million of senior secured bonds, respectively and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ North Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress. DECNCSF and DEPNCSF are considered VIEs primarily because the equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries and consolidate DECNCSF and DEPNCSF, respectively. The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.
| March 31, 2024 |  | December 31, 2023
| Duke Energy | Duke Energy |  | Duke Energy | Duke Energy
(in millions) | Carolinas | Progress |  | Carolinas | Progress
Regulatory Assets: Current | $ | 12 |  | $ | 39 |  |  | $ | 12 |  | $ | 39 |
Current Assets: Other | 5 |  | 18 |  |  | 9 |  | 31 |
Other Noncurrent Assets: Regulatory assets | 193 |  | 633 |  |  | 196 |  | 643 |
Other Noncurrent Assets: Other | 1 |  | 4 |  |  | 1 |  | 2 |
Current Liabilities: Other | 1 |  | 4 |  |  | 10 |  | 34 |
Current maturities of long-term debt | 11 |  | 34 |  |  | 3 |  | 8 |
Long-Term Debt | 203 |  | 663 |  |  | 208 |  | 680 |
Storm Recovery Bonds – Duke Energy Progress SC Storm Funding Duke Energy Progress SC Storm Funding, LLC (DEPSCSF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Progress. This entity was formed in 2023 for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in South Carolina. In April 2024, DEPSCSF issued $177 million of senior secured bonds an d used the proceeds to acquire storm recovery property from Duke Energy Progress. The storm recovery property was created by state legislation and a PSCSC financing order for the purpose of financing storm costs incurred from 2014 through 2022. The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Progress’ South Carolina retail customers until the bonds are paid in full and all financing costs have been recovered. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Progress. DEPSCSF is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Progress has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Progress is considered the primary beneficiary and consolidates DEPSCSF. Procurement Company – Duke Energy Florida Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo was formed in 2023 as the primary procurer of equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with third-party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset. This entity is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Florida has the power to direct the significant activities of this VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates the procurement company. The following table summarizes the impact of this VIE on Duke Energy Florida's Consolidated Balance Sheets.
(in millions) | March 31, 2024 | December 31, 2023 |  |  |
Inventory | $ | 470 |  | $ | 462 |  |  |  |  |
Accounts Payable | 179 |  | 188 |  |  |  |  |
NON-CONSOLIDATED VIEs The following tables summarize the impact of non-consolidated VIEs on the Condensed Consolidated Balance Sheets.
| March 31, 2024
| Duke Energy |  |  |  |  |  |  |  | Duke |  | Duke
| Natural Gas |  |  |  |  |  |  |  | Energy |  | Energy
(in millions) | Investments |  |  |  |  |  |  |  | Ohio |  | Indiana
Receivables from affiliated companies | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |
Investments in equity method unconsolidated affiliates | 63 |  |  |  |  |  |  |  |  | — |  |  | — |
Other noncurrent assets | 30 |  |  |  |  |  |  |  |  | — |  |  | — |
Total assets | $ | 93 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |
Other current liabilities | 1 |  |  |  |  |  |  |  |  | — |  |  | — |
Other noncurrent liabilities | 6 |  |  |  |  |  |  |  |  | — |  |  | — |
Total liabilities | $ | 7 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |
Net assets | $ | 86 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |
| December 31, 2023
| Duke Energy |  |  |  |  |  |  |  | Duke |  | Duke
| Natural Gas |  |  |  |  |  |  |  | Energy |  | Energy
(in millions) | Investments |  |  |  |  |  |  |  | Ohio |  | Indiana
Receivables from affiliated companies | $ | — |  |  |  |  |  |  |  |  | $ | 150 |  |  | $ | 208 |
Investments in equity method unconsolidated affiliates | 67 |  |  |  |  |  |  |  |  | — |  |  | — |
Other noncurrent assets | 43 |  |  |  |  |  |  |  |  | — |  |  | — |
Total assets | $ | 110 |  |  |  |  |  |  |  |  | $ | 150 |  |  | $ | 208 |
Other current liabilities | 4 |  |  |  |  |  |  |  |  | — |  |  | — |
Other noncurrent liabilities | 5 |  |  |  |  |  |  |  |  | — |  |  | — |
Total liabilities | $ | 9 |  |  |  |  |  |  |  |  | $ | — |  |  | $ | — |
Net assets | $ | 101 |  |  |  |  |  |  |  |  | $ | 150 |  |  | $ | 208 |
The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above. Natural Gas Investments Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities. CRC See discussion under Consolidated VIEs for additional information related to CRC. Amounts included in Receivables from affiliated companies in the above table for Duke Energy Ohio and Duke Energy Indiana reflect their retained interest in receivables sold to CRC as of December 31, 2023. The subordinated notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair value as of December 31, 2023. The following table shows the gross and net receivables sold.
| Duke Energy Ohio |  | Duke Energy Indiana
(in millions) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2024 |  | December 31, 2023
Receivables sold | $ | — |  |  | $ | 361 |  |  | $ | — |  |  | $ | 351 |
Less: Retained interests | — |  |  | 150 |  |  | — |  |  | 208 |
Net receivables sold | $ | — |  |  | $ | 211 |  |  | $ | — |  |  | $ | 143 |
The following table shows sales and cash flows related to receivables sold and reflects CRC activity prior to its termination in March 2024.
|  |  |  |  | Duke Energy Ohio |  |  |  |  | Duke Energy Indiana
|  |  | Three Months Ended |  |  |  | Three Months Ended
|  |  | March 31, |  |  |  | March 31,
(in millions) |  |  |  |  | 2024 |  | 2023 |  |  |  |  |  | 2024 |  | 2023
Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receivables sold |  |  |  |  | $ | 474 |  |  | $ | 725 |  |  |  |  |  |  | $ | 473 |  |  | $ | 942 |
Loss recognized on sale |  |  |  |  | 7 |  |  | 9 |  |  |  |  |  |  | 6 |  |  | 10 |
Cash flows |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash proceeds from receivables sold |  |  |  |  | $ | 478 |  |  | $ | 750 |  |  |  |  |  |  | $ | 523 |  |  | $ | 1,028 |
Return received on retained interests |  |  |  |  | 4 |  |  | 6 |  |  |  |  |  |  | 4 |  |  | 8 |
Cash flows from sales of receivables are reflected within Cash Flows From Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Condensed Consolidated Statements of Cash Flows.

X
- Definition Variable Interest Entities [Abstract] + References No definition available. + Details
Name: | duk_VariableInterestEntitiesAbstract
Namespace Prefix: | duk_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//810/tableOfContent + Details
Name: | us-gaap_VariableInterestEntityDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration