XML 101 R61.htm IDEA: XBRL DOCUMENT v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA created a new, zero-emission nuclear power PTC available for taxpayers beginning January 1, 2024. Through September 30, 2024, Duke Energy Carolinas and Duke Energy Progress have recorded PTC deferred tax assets of approximately $325 million and $59 million, respectively. These amounts represent the estimated net realizable value of the PTCs, which were deferred to a regulatory liability. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.
The Subsidiary Registrants will work with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 4 for additional information on Duke Energy Carolinas' approval for a stand-alone rider starting January 1, 2025.
In October 2024, $174 million of tax credits were sold for proceeds approximating carrying value, including $150 million of nuclear power PTCs sold by Duke Energy Carolinas.
EFFECTIVE TAX RATES
The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Duke Energy11.2 %2.8 %12.5 %9.0 %
Duke Energy Carolinas7.7 %4.9 %9.8 %8.0 %
Progress Energy16.1 %15.7 %16.4 %16.2 %
Duke Energy Progress12.9 %11.8 %14.1 %13.0 %
Duke Energy Florida20.5 %20.8 %19.9 %20.3 %
Duke Energy Ohio11.9 %14.9 %15.8 %15.8 %
Duke Energy Indiana15.7 %18.5 %16.3 %17.8 %
Piedmont29.4 %26.3 %18.4 %17.2 %
The increase in the ETR for Duke Energy for the three months ended September 30, 2024, was primarily due to benefits associated with tax efficiency efforts in the prior year and a decrease in the amortization of EDIT. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
The increase in the ETR for Duke Energy for the nine months ended September 30, 2024, was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable adjustment in the prior year of approximately $120 million.
The increase in the ETR for Duke Energy Carolinas for the three months ended September 30, 2024, was primarily due to a decrease in the amortization of EDIT.
The increase in the ETR for Duke Energy Carolinas for the nine months ended September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax income.
The increase in the ETR for Duke Energy Progress for the three months ended September 30, 2024, was primarily due to a decrease in the amortization of EDIT.
The increase in the ETR for Duke Energy Progress for the nine months ended September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax income.
The decrease in the ETR for Duke Energy Ohio for the three months ending September 30, 2024, was primarily due to the amortization of EDIT in relation to pretax income.
The decrease in the ETR for Duke Energy Indiana for the three and nine months ended September 30, 2024, was primarily due to an increase in the amortization of EDIT.
The increase in the ETR for Piedmont for the three months ending September 30, 2024, was primarily due to the amortization of EDIT in relation to higher pretax losses.
The increase in the ETR for Piedmont for the nine months ending September 30, 2024, was primarily due a decrease in the amortization of EDIT.