XML 131 R69.htm IDEA: XBRL DOCUMENT v3.25.0.1
Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Duke Energy recognizes revenue consistent with amounts billed under tariff offerings or at contractually agreed upon rates based on actual physical delivery of electric or natural gas service, including estimated volumes delivered when billings have not yet occurred. As such, the majority of Duke Energy’s revenues have fixed pricing based on the contractual terms of the published tariffs. Absent decoupling mechanisms, the variability in expected cash flows of the majority of Duke Energy's revenue is attributable to the customer’s volumetric demand and ultimate quantities of energy or natural gas supplied and used during the billing period. The stand-alone selling price of related sales are designed to support recovery of prudently incurred costs and an appropriate return on invested assets and are primarily governed by published tariff rates or contractual agreements approved by relevant regulatory bodies. As described in Note 1, certain excise taxes and franchise fees levied by state or local governments are required to be paid even if not collected from the customer. These taxes are recognized on a gross basis as part of revenues. Duke Energy elects to account for all other taxes net of revenues.
Performance obligations are satisfied over time as energy or natural gas is delivered and consumed with billings generally occurring monthly and related payments due within 30 days, depending on regulatory requirements. In no event does the timing between payment and delivery of the goods and services exceed one year. Using this output method for revenue recognition provides a faithful depiction of the transfer of electric and natural gas service as customers obtain control of the commodity and benefit from its use at delivery. Additionally, Duke Energy has an enforceable right to consideration for energy or natural gas delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which Duke Energy is entitled for the energy or natural gas delivered.
As described above, the majority of Duke Energy’s tariff revenues are at will and, as such, related contracts with customers have an expected duration of one year or less and will not have future performance obligations for disclosure. Additionally, other long-term revenue streams, including wholesale contracts, generally provide services that are part of a single performance obligation, the delivery of electricity or natural gas. As such, other than material fixed consideration under long-term contracts, related disclosures for future performance obligations are also not applicable.
Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.
Electric Utilities and Infrastructure
EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.
Retail electric service is generally marketed throughout Duke Energy’s electric service territory through standard service offers. The standard service offers are through tariffs determined by regulators in Duke Energy's regulated service territory. Each tariff, which is assigned to customers based on customer class, has multiple components such as an energy charge, a demand charge, a basic facilities charge and applicable riders. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing electric service, or in the case of distribution only customers in Duke Energy Ohio, for delivering electricity. Electricity is considered a single performance obligation satisfied over time consistent with the series guidance and is provided and consumed over the billing period, generally one month. Retail electric service is typically provided to at-will customers who can cancel service at any time, without a substantive penalty. Additionally, Duke Energy adheres to applicable regulatory requirements in each jurisdiction to ensure the collectability of amounts billed and appropriate mitigating procedures are followed when necessary. As such, revenue from contracts with customers for such contracts is equivalent to the electricity supplied and billed in that period (including unbilled estimates).
Wholesale electric service is generally provided under long-term contracts using cost-based pricing. FERC regulates costs that may be recovered from customers and the amount of return companies are permitted to earn. Wholesale contracts include both energy and demand charges. For full requirements contracts, Duke Energy considers both charges as a single performance obligation for providing integrated electric service. For contracts where energy and demand charges are considered separate performance obligations, energy and demand are each a distinct performance obligation under the series guidance and are satisfied as energy is delivered and stand-ready service is provided on a monthly basis. This service represents consumption over the billing period and revenue is recognized consistent with billings and unbilled estimates, which generally occur monthly. Contractual amounts owed are typically trued up annually based upon incurred costs in accordance with FERC published filings and the specific customer’s actual peak demand. Estimates of variable consideration related to potential additional billings or refunds owed are updated quarterly.
The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations:
Remaining Performance Obligations
(in millions)20252026202720282029ThereafterTotal
Duke Energy Carolinas$12 $12 $12 $12 $— $— $48 
Progress Energy36 43 13 13 13 42 160 
Duke Energy Progress6 6 6 6 6 20 50 
Duke Energy Florida30 37 7 7 7 22 110 
Duke Energy Indiana17 17 15 5 — — 54 
Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.
Gas Utilities and Infrastructure
GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.
Retail natural gas service is marketed throughout Duke Energy's natural gas service territory using published tariff rates. The tariff rates are established by regulators in Duke Energy's service territories. Each tariff, which is assigned to customers based on customer class, have multiple components, such as a commodity charge, demand charge, customer or monthly charge and transportation costs. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing natural gas service. For contracts where Duke Energy provides all of the customer’s natural gas needs, the delivery of natural gas is considered a single performance obligation satisfied over time, and revenue is recognized monthly based on billings and unbilled estimates as service is provided and the commodity is consumed over the billing period. Additionally, natural gas service is typically at will and customers can cancel service at any time, without a substantive penalty. Duke Energy also adheres to applicable regulatory requirements to ensure the collectability of amounts billed and receivable and appropriate mitigating procedures are followed when necessary.
Certain long-term individually negotiated contracts exist to provide natural gas service. These contracts are regulated and approved by state commissions. The negotiated contracts may have multiple components, including a natural gas and a demand charge, similar to retail natural gas contracts. Duke Energy considers each of these components to be a single performance obligation for providing natural gas service. This service represents consumption over the billing period, generally one month.
Fixed capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations are as follows:
Remaining Performance Obligations
(in millions)20252026202720282029ThereafterTotal
Piedmont$64 $51 $49 $46 $44 $151 $405 
Other
The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.
Disaggregated Revenues
For the EU&I and GU&I segments, revenue by customer class is most meaningful to Duke Energy as each respective customer class collectively represents unique customer expectations of service, generally has different energy and demand requirements, and operates under tailored, regulatory approved pricing structures. Additionally, each customer class is impacted differently by weather and a variety of economic factors including the level of population growth, economic investment, employment levels, and regulatory activities in each of Duke Energy’s jurisdictions. As such, analyzing revenues disaggregated by customer class allows Duke Energy to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Disaggregated revenues are presented as follows:
Year Ended December 31, 2024
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
Residential$12,901 $4,150 $6,592 $2,872 $3,720 $1,009 $1,149 $— 
Commercial
8,207 3,080 3,718 1,754 1,964 590 818 — 
Industrial3,427 1,488 1,066 742 324 149 724 — 
Wholesale2,205 547 1,414 1,268 146 51 194 — 
Other revenues1,029 350 674 343 331 89 107 — 
Total Electric Utilities and Infrastructure revenue from contracts with customers$27,769 $9,615 $13,464 $6,979 $6,485 $1,888 $2,992 $— 
Gas Utilities and Infrastructure
Residential$1,320 $— $— $— $— $427 $— $893 
Commercial639 — — — — 153 — 486 
Industrial158 — — — — 33 — 125 
Power Generation— — — — — — — 33 
Other revenues126 — — — — 26 — 100 
Total Gas Utilities and Infrastructure revenue from contracts with customers$2,243 $— $— $— $— $639 $— $1,637 
Other
Revenue from contracts with customers$38 $— $— $— $— $— $— $— 
Total revenue from contracts with customers$30,050 $9,615 $13,464 $6,979 $6,485 $2,527 $2,992 $1,637 
Other revenue sources(a)
$307 $103 $169 $38 $110 $18 $48 $92 
Total revenues$30,357 $9,718 $13,633 $7,017 $6,595 $2,545 $3,040 $1,729 
Year Ended December 31, 2023
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
Residential$12,098 $3,409 $6,510 $2,540 $3,970 $947 $1,233 $— 
Commercial
7,895 2,670 3,762 1,588 2,174 552 911 — 
Industrial3,416 1,334 1,105 733 372 191 786 — 
Wholesale2,175 492 1,388 1,240 148 46 248 — 
Other revenues962 318 590 325 265 93 157 — 
Total Electric Utilities and Infrastructure revenue from contracts with customers$26,546 $8,223 $13,355 $6,426 $6,929 $1,829 $3,335 $— 
Gas Utilities and Infrastructure
Residential$1,226 $— $— $— $— $435 $— $792 
Commercial605 — — — — 154 — 450 
Industrial141 — — — — 26 — 115 
Power Generation— — — — — — — 31 
Other revenues119 — — — — 24 — 95 
Total Gas Utilities and Infrastructure revenue from contracts with customers$2,091 $— $— $— $— $639 $— $1,483 
Other
Revenue from contracts with customers$37 $— $— $— $— $— $— $— 
Total revenue from contracts with customers$28,674 $8,223 $13,355 $6,426 $6,929 $2,468 $3,335 $1,483 
Other revenue sources(a)
$386 $65 $189 $62 $107 $39 $64 $145 
Total revenues$29,060 $8,288 $13,544 $6,488 $7,036 $2,507 $3,399 $1,628 
Year Ended December 31, 2022
DukeDukeDukeDukeDuke
(in millions)DukeEnergyProgressEnergyEnergyEnergyEnergy
By market or type of customerEnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Electric Utilities and Infrastructure
Residential$11,377 $3,275 $5,812 $2,378 $3,434 $862 $1,430 $— 
Commercial
7,356 2,396 3,396 1,480 1,916 517 1,049 — 
Industrial3,504 1,251 1,095 770 325 202 956 — 
Wholesale2,856 561 1,785 1,346 439 127 383 — 
Other revenues795 372 994 768 226 61 19 — 
Total Electric Utilities and Infrastructure revenue from contracts with customers$25,888 $7,855 $13,082 $6,742 $6,340 $1,769 $3,837 $— 
Gas Utilities and Infrastructure
Residential$1,462 $— $— $— $— $488 $— $974 
Commercial765 — — — — 180 — 585 
Industrial170 — — — — 24 — 144 
Power Generation— — — — — — — 94 
Other revenues360 — — — — 25 — 271 
Total Gas Utilities and Infrastructure revenue from contracts with customers$2,757 $— $— $— $— $717 $— $2,068 
Other
Revenue from contracts with customers$30 $— $— $— $— $— $— $— 
Total revenue from contracts with customers$28,675 $7,855 $13,082 $6,742 $6,340 $2,486 $3,837 $2,068 
Other revenue sources(a)
$93 $2 $43 $11 $13 $28 $85 $56 
Total revenues$28,768 $7,857 $13,125 $6,753 $6,353 $2,514 $3,922 $2,124 
(a)    Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
The following table presents the reserve for credit losses for trade and other receivables.
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Balance at December 31, 2021$121 $42 $36 $21 $16 $4 $3 $15 
Write-Offs(158)(73)(70)(36)(34)— — (12)
Credit Loss Expense160 40 72 17 55 2 1 11 
Other Adjustments93 59 43 42 (1)— — — 
Balance at December 31, 2022$216 $68 $81 $44 $36 $6 $4 $14 
Write-Offs(164)(71)(84)(41)(42)— — (10)
Credit Loss Expense101 35 48 12 37 3 1 7 
Other Adjustments52 24 29 29 — — — — 
Balance at December 31, 2023$205 $56 $74 $44 $31 $9 $5 $11 
Write-Offs(132)(55)(73)(45)(28)— — (4)
Credit Loss Expense98 39 51 25 26 3 2 3 
Other Adjustments38 29 21 20 — 31 8 — 
Balance at December 31, 2024$209 $69 $73 $44 $29 $43 $15 $10 
Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables.