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Leases | 12 Months Ended
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Dec. 31, 2025
Leases [Abstract] |
Leases | LEASES As part of its operations, Duke Energy leases certain aviation facilities, space on communication towers, dedicated host servers, industrial equipment, fleet vehicles, fuel transportation (barges and railcars), land and office space under various terms and expiration dates. Additionally, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana have finance leases related to firm natural gas pipeline transportation capacity. Duke Energy Progress and Duke Energy Florida have entered into certain purchase power agreements, which are classified as finance and operating leases. Duke Energy has certain lease agreements, which include variable lease payments that are based on the usage of an asset. These variable lease payments are not included in the measurement of the ROU assets or operating lease liabilities on the Consolidated Financial Statements. Certain Duke Energy lease agreements include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in any of the lease measurements. In December 2019, Duke Energy Carolinas entered into a sale-leaseback arrangement to construct and occupy an office tower. The lease agreement was evaluated as a sale-leaseback of real estate but did not qualify for sale-leaseback accounting. As a result, the transaction is accounted for as a financing. Duke Energy Carolinas recorded the real estate on the Consolidated Balance Sheets within Property, Plant and Equipment as if it is the legal owner and recognizes depreciation expense over the estimated useful life. In addition, the failed sale-leaseback obligation is reported within Long-Term Debt on the Consolidated Balance Sheets with the monthly lease payments split between interest expense and debt principal. Piedmont has certain agreements for the construction and transportation of natural gas pipelines to supply Duke Energy Carolinas' natural gas plant needs. Piedmont accounts for these pipeline lateral contracts as sales-type leases since the present value of the sum of the lease payments equals the fair value of the assets. These pipeline lateral assets owned by Piedmont had a current net investment basis of $3 million and $2 million as of December 31, 2025, and 2024, and a long-term net investment basis of $194 million and $197 million as of December 31, 2025, and 2024, respectively. These assets are classified in Other, within Current Assets and Other Noncurrent Assets, respectively, on Piedmont's Consolidated Balance Sheets. Duke Energy Carolinas accounts for the contracts as finance leases. The activity for these contracts is eliminated in consolidation at Duke Energy. The following tables present the components of lease expense.
| Year Ended December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Operating lease expense(a) | $ | 283 |  |  | $ | 60 |  |  | $ | 181 |  |  | $ | 91 |  |  | $ | 90 |  |  | $ | 14 |  |  | $ | 27 |  |  | $ | 1 |
Short-term lease expense(a) | 6 |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Variable lease expense(a) | 39 |  |  | 2 |  |  | 35 |  |  | 26 |  |  | 9 |  |  | — |  |  | 1 |  |  | 1 |
Finance lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(b) | 64 |  |  | 12 |  |  | 53 |  |  | 43 |  |  | 10 |  |  | — |  |  | 2 |  |  | — |
Interest on lease liabilities(c) | 40 |  |  | 30 |  |  | 43 |  |  | 39 |  |  | 4 |  |  | — |  |  | 1 |  |  | — |
Total finance lease expense | 104 |  |  | 42 |  |  | 96 |  |  | 82 |  |  | 14 |  |  | — |  |  | 3 |  |  | — |
Total lease expense | $ | 432 |  |  | $ | 104 |  |  | $ | 315 |  |  | $ | 199 |  |  | $ | 116 |  |  | $ | 14 |  |  | $ | 32 |  |  | $ | 2 |
| Year Ended December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Operating lease expense(a) | $ | 275 |  |  | $ | 66 |  |  | $ | 173 |  |  | $ | 82 |  |  | $ | 91 |  |  | $ | 12 |  |  | $ | 23 |  |  | $ | 2 |
Short-term lease expense(a) | 7 |  |  | — |  |  | 3 |  |  | 1 |  |  | 2 |  |  | — |  |  | 1 |  |  | — |
Variable lease expense(a) | 33 |  |  | 2 |  |  | 29 |  |  | 19 |  |  | 10 |  |  | — |  |  | 1 |  |  | 1 |
Finance lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(b) | 113 |  |  | 7 |  |  | 46 |  |  | 38 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Interest on lease liabilities(c) | 41 |  |  | 31 |  |  | 44 |  |  | 41 |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Total finance lease expense | 154 |  |  | 38 |  |  | 90 |  |  | 79 |  |  | 11 |  |  | — |  |  | 1 |  |  | — |
Total lease expense | $ | 469 |  |  | $ | 106 |  |  | $ | 295 |  |  | $ | 181 |  |  | $ | 114 |  |  | $ | 12 |  |  | $ | 26 |  |  | $ | 3 |
(a) Included in Operation, maintenance and other, except for expenses primarily related to barges and railcars, which is included in Fuel used in electric generation and purchased power on the Consolidated Statements of Operations. (b) Included in Depreciation and amortization on the Consolidated Statements of Operations. (c) Included in Interest Expense on the Consolidated Statements of Operations. The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
2026 | $ | 289 |  |  | $ | 24 |  |  | $ | 126 |  |  | $ | 61 |  |  | $ | 65 |  |  | $ | 1 |  |  | $ | 7 |  |  | $ | 1 |
2027 | 239 |  |  | 18 |  |  | 98 |  |  | 61 |  |  | 37 |  |  | 1 |  |  | 6 |  |  | 1 |
2028 | 200 |  |  | 15 |  |  | 83 |  |  | 60 |  |  | 23 |  |  | 1 |  |  | 4 |  |  | 1 |
2029 | 171 |  |  | 12 |  |  | 81 |  |  | 59 |  |  | 22 |  |  | — |  |  | 4 |  |  | — |
2030 | 136 |  |  | 9 |  |  | 73 |  |  | 59 |  |  | 14 |  |  | — |  |  | 3 |  |  | — |
Thereafter | 539 |  |  | 44 |  |  | 368 |  |  | 231 |  |  | 137 |  |  | 3 |  |  | 17 |  |  | — |
Total operating lease payments | 1,574 |  |  | 122 |  |  | 829 |  |  | 531 |  |  | 298 |  |  | 6 |  |  | 41 |  |  | 3 |
Less: Present value discount | (303) |  |  | (23) |  |  | (177) |  |  | (104) |  |  | (73) |  |  | (1) |  |  | (7) |  |  | — |
Total operating lease liabilities(a) | $ | 1,271 |  |  | $ | 99 |  |  | $ | 652 |  |  | $ | 427 |  |  | $ | 225 |  |  | $ | 5 |  |  | $ | 34 |  |  | $ | 3 |
(a) Certain operating lease payments include renewal options that are reasonably certain to be exercised. The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  |  |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  |  |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  |  |  | Indiana |  |
2026 | $ | 95 |  |  | $ | 40 |  |  | $ | 94 |  |  | $ | 81 |  |  | $ | 13 |  |  |  |  | $ | 2 |  |  |
2027 | 88 |  |  | 40 |  |  | 91 |  |  | 82 |  |  | 9 |  |  |  |  | 2 |  |  |
2028 | 84 |  |  | 39 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
2029 | 81 |  |  | 38 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
2030 | 82 |  |  | 39 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
Thereafter | 497 |  |  | 319 |  |  | 437 |  |  | 323 |  |  | 114 |  |  |  |  | 18 |  |  |
Total finance lease payments | 927 |  |  | 515 |  |  | 892 |  |  | 732 |  |  | 160 |  |  |  |  | 25 |  |  |
Less: Amounts representing interest | (351) |  |  | (243) |  |  | (323) |  |  | (251) |  |  | (72) |  |  |  |  | (15) |  |  |
Total finance lease liabilities | $ | 576 |  |  | $ | 272 |  |  | $ | 569 |  |  | $ | 481 |  |  | $ | 88 |  |  |  |  | $ | 10 |  |  |
The following tables contain additional information related to leases.
|  | December 31, 2025
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Classification | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease ROU assets, net | $ | 1,241 |  |  | $ | 91 |  |  | $ | 607 |  |  | $ | 386 |  |  | $ | 221 |  |  | $ | 5 |  |  | $ | 32 |  |  | $ | 2 |
Finance | Net property, plant and equipment | 654 |  |  | 251 |  |  | 605 |  |  | 478 |  |  | 127 |  |  | — |  |  | 8 |  |  | — |
Total lease assets |  | $ | 1,895 |  |  | $ | 342 |  |  | $ | 1,212 |  |  | $ | 864 |  |  | $ | 348 |  |  | $ | 5 |  |  | $ | 40 |  |  | $ | 2 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Other current liabilities | $ | 238 |  |  | $ | 20 |  |  | $ | 100 |  |  | $ | 43 |  |  | $ | 57 |  |  | $ | — |  |  | $ | 6 |  |  | $ | 1 |
Finance | Current maturities of long-term debt | 55 |  |  | 11 |  |  | 53 |  |  | 45 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Noncurrent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease liabilities | 1,033 |  |  | 79 |  |  | 552 |  |  | 384 |  |  | 168 |  |  | 5 |  |  | 28 |  |  | 2 |
Finance | Long-Term Debt | 521 |  |  | 261 |  |  | 516 |  |  | 436 |  |  | 80 |  |  | — |  |  | 10 |  |  | — |
Total lease liabilities |  | $ | 1,847 |  |  | $ | 371 |  |  | $ | 1,221 |  |  | $ | 908 |  |  | $ | 313 |  |  | $ | 5 |  |  | $ | 44 |  |  | $ | 3 |
|  | December 31, 2024
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Classification | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease ROU assets, net | $ | 1,148 |  |  | $ | 98 |  |  | $ | 625 |  |  | $ | 348 |  |  | $ | 277 |  |  | $ | 6 |  |  | $ | 37 |  |  | $ | 4 |
Finance | Net property, plant and equipment | 645 |  |  | 252 |  |  | 620 |  |  | 512 |  |  | 108 |  |  | — |  |  | 6 |  |  | — |
Total lease assets |  | $ | 1,793 |  |  | $ | 350 |  |  | $ | 1,245 |  |  | $ | 860 |  |  | $ | 385 |  |  | $ | 6 |  |  | $ | 43 |  |  | $ | 4 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Other current liabilities | $ | 208 |  |  | $ | 20 |  |  | $ | 97 |  |  | $ | 42 |  |  | $ | 55 |  |  | $ | 1 |  |  | $ | 6 |  |  | $ | 1 |
Finance | Current maturities of long-term debt | 46 |  |  | 8 |  |  | 48 |  |  | 41 |  |  | 7 |  |  | — |  |  | — |  |  | — |
Noncurrent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease liabilities | 957 |  |  | 87 |  |  | 557 |  |  | 332 |  |  | 225 |  |  | 6 |  |  | 33 |  |  | 7 |
Finance | Long-Term Debt | 524 |  |  | 262 |  |  | 533 |  |  | 474 |  |  | 59 |  |  | — |  |  | 10 |  |  | — |
Total lease liabilities |  | $ | 1,735 |  |  | $ | 377 |  |  | $ | 1,235 |  |  | $ | 889 |  |  | $ | 346 |  |  | $ | 7 |  |  | $ | 49 |  |  | $ | 8 |
| Year Ended December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 277 |  |  | $ | 24 |  |  | $ | 122 |  |  | $ | 56 |  |  | $ | 66 |  |  | $ | 1 |  |  | $ | 8 |  |  | $ | 1 |
Operating cash flows from finance leases | 40 |  |  | 30 |  |  | 43 |  |  | 39 |  |  | 4 |  |  | — |  |  | 1 |  |  | — |
Financing cash flows from finance leases | 64 |  |  | 12 |  |  | 53 |  |  | 43 |  |  | 10 |  |  | — |  |  | 2 |  |  | — |
Lease assets obtained in exchange for new lease liabilities (non-cash) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | $ | 348 |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Finance | 72 |  |  | 15 |  |  | 40 |  |  | 9 |  |  | 31 |  |  | — |  |  | 2 |  |  | — |
| Year Ended December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 250 |  |  | $ | 24 |  |  | $ | 122 |  |  | $ | 57 |  |  | $ | 65 |  |  | $ | 1 |  |  | $ | 8 |  |  | $ | 1 |
Operating cash flows from finance leases | 41 |  |  | 31 |  |  | 44 |  |  | 41 |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Financing cash flows from finance leases | 113 |  |  | 7 |  |  | 46 |  |  | 38 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Lease assets obtained in exchange for new lease liabilities (non-cash) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | $ | 322 |  |  | $ | 50 |  |  | $ | 43 |  |  | $ | 3 |  |  | $ | 40 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 3 |
Finance | 81 |  |  | 1 |  |  | 55 |  |  | — |  |  | 55 |  |  | — |  |  | 1 |  |  | — |
(a) No amounts were classified as investing cash flows from operating leases.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
| Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Weighted average remaining lease term (years) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 8 |  | 9 |  | 10 |  | 9 |  | 12 |  | 11 |  | 9 |  | 3
Finance leases | 12 |  | 14 |  | 11 |  | 10 |  | 21 |  | — |  |  | 19 |  | — |
Weighted average discount rate(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 4.5 | % |  | 4.4 | % |  | 4.4 | % |  | 4.4 | % |  | 4.3 | % |  | 4.2 | % |  | 3.9 | % |  | 4.0 | %
Finance leases | 8.2 | % |  | 11.3 | % |  | 8.6 | % |  | 9.2 | % |  | 5.8 | % |  | — | % |  | 11.6 | % |  | — | %
| December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
| Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Weighted average remaining lease term (years) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 8 |  | 9 |  | 9 |  | 8 |  | 11 |  | 11 |  | 11 |  | 4
Finance leases | 11 |  | 15 |  | 11 |  | 10 |  | 15 |  | — |  |  | 20 |  | — |
Weighted average discount rate(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 4.3 | % |  | 4.3 | % |  | 4.0 | % |  | 3.9 | % |  | 4.2 | % |  | 4.1 | % |  | 4.0 | % |  | 3.9 | %
Finance leases | 8.4 | % |  | 11.5 | % |  | 8.9 | % |  | 9.2 | % |  | 5.9 | % |  | — | % |  | 11.7 | % |  | — | %
(a) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.
Leases | LEASES As part of its operations, Duke Energy leases certain aviation facilities, space on communication towers, dedicated host servers, industrial equipment, fleet vehicles, fuel transportation (barges and railcars), land and office space under various terms and expiration dates. Additionally, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana have finance leases related to firm natural gas pipeline transportation capacity. Duke Energy Progress and Duke Energy Florida have entered into certain purchase power agreements, which are classified as finance and operating leases. Duke Energy has certain lease agreements, which include variable lease payments that are based on the usage of an asset. These variable lease payments are not included in the measurement of the ROU assets or operating lease liabilities on the Consolidated Financial Statements. Certain Duke Energy lease agreements include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in any of the lease measurements. In December 2019, Duke Energy Carolinas entered into a sale-leaseback arrangement to construct and occupy an office tower. The lease agreement was evaluated as a sale-leaseback of real estate but did not qualify for sale-leaseback accounting. As a result, the transaction is accounted for as a financing. Duke Energy Carolinas recorded the real estate on the Consolidated Balance Sheets within Property, Plant and Equipment as if it is the legal owner and recognizes depreciation expense over the estimated useful life. In addition, the failed sale-leaseback obligation is reported within Long-Term Debt on the Consolidated Balance Sheets with the monthly lease payments split between interest expense and debt principal. Piedmont has certain agreements for the construction and transportation of natural gas pipelines to supply Duke Energy Carolinas' natural gas plant needs. Piedmont accounts for these pipeline lateral contracts as sales-type leases since the present value of the sum of the lease payments equals the fair value of the assets. These pipeline lateral assets owned by Piedmont had a current net investment basis of $3 million and $2 million as of December 31, 2025, and 2024, and a long-term net investment basis of $194 million and $197 million as of December 31, 2025, and 2024, respectively. These assets are classified in Other, within Current Assets and Other Noncurrent Assets, respectively, on Piedmont's Consolidated Balance Sheets. Duke Energy Carolinas accounts for the contracts as finance leases. The activity for these contracts is eliminated in consolidation at Duke Energy. The following tables present the components of lease expense.
| Year Ended December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Operating lease expense(a) | $ | 283 |  |  | $ | 60 |  |  | $ | 181 |  |  | $ | 91 |  |  | $ | 90 |  |  | $ | 14 |  |  | $ | 27 |  |  | $ | 1 |
Short-term lease expense(a) | 6 |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Variable lease expense(a) | 39 |  |  | 2 |  |  | 35 |  |  | 26 |  |  | 9 |  |  | — |  |  | 1 |  |  | 1 |
Finance lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(b) | 64 |  |  | 12 |  |  | 53 |  |  | 43 |  |  | 10 |  |  | — |  |  | 2 |  |  | — |
Interest on lease liabilities(c) | 40 |  |  | 30 |  |  | 43 |  |  | 39 |  |  | 4 |  |  | — |  |  | 1 |  |  | — |
Total finance lease expense | 104 |  |  | 42 |  |  | 96 |  |  | 82 |  |  | 14 |  |  | — |  |  | 3 |  |  | — |
Total lease expense | $ | 432 |  |  | $ | 104 |  |  | $ | 315 |  |  | $ | 199 |  |  | $ | 116 |  |  | $ | 14 |  |  | $ | 32 |  |  | $ | 2 |
| Year Ended December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Operating lease expense(a) | $ | 275 |  |  | $ | 66 |  |  | $ | 173 |  |  | $ | 82 |  |  | $ | 91 |  |  | $ | 12 |  |  | $ | 23 |  |  | $ | 2 |
Short-term lease expense(a) | 7 |  |  | — |  |  | 3 |  |  | 1 |  |  | 2 |  |  | — |  |  | 1 |  |  | — |
Variable lease expense(a) | 33 |  |  | 2 |  |  | 29 |  |  | 19 |  |  | 10 |  |  | — |  |  | 1 |  |  | 1 |
Finance lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(b) | 113 |  |  | 7 |  |  | 46 |  |  | 38 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Interest on lease liabilities(c) | 41 |  |  | 31 |  |  | 44 |  |  | 41 |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Total finance lease expense | 154 |  |  | 38 |  |  | 90 |  |  | 79 |  |  | 11 |  |  | — |  |  | 1 |  |  | — |
Total lease expense | $ | 469 |  |  | $ | 106 |  |  | $ | 295 |  |  | $ | 181 |  |  | $ | 114 |  |  | $ | 12 |  |  | $ | 26 |  |  | $ | 3 |
(a) Included in Operation, maintenance and other, except for expenses primarily related to barges and railcars, which is included in Fuel used in electric generation and purchased power on the Consolidated Statements of Operations. (b) Included in Depreciation and amortization on the Consolidated Statements of Operations. (c) Included in Interest Expense on the Consolidated Statements of Operations. The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
2026 | $ | 289 |  |  | $ | 24 |  |  | $ | 126 |  |  | $ | 61 |  |  | $ | 65 |  |  | $ | 1 |  |  | $ | 7 |  |  | $ | 1 |
2027 | 239 |  |  | 18 |  |  | 98 |  |  | 61 |  |  | 37 |  |  | 1 |  |  | 6 |  |  | 1 |
2028 | 200 |  |  | 15 |  |  | 83 |  |  | 60 |  |  | 23 |  |  | 1 |  |  | 4 |  |  | 1 |
2029 | 171 |  |  | 12 |  |  | 81 |  |  | 59 |  |  | 22 |  |  | — |  |  | 4 |  |  | — |
2030 | 136 |  |  | 9 |  |  | 73 |  |  | 59 |  |  | 14 |  |  | — |  |  | 3 |  |  | — |
Thereafter | 539 |  |  | 44 |  |  | 368 |  |  | 231 |  |  | 137 |  |  | 3 |  |  | 17 |  |  | — |
Total operating lease payments | 1,574 |  |  | 122 |  |  | 829 |  |  | 531 |  |  | 298 |  |  | 6 |  |  | 41 |  |  | 3 |
Less: Present value discount | (303) |  |  | (23) |  |  | (177) |  |  | (104) |  |  | (73) |  |  | (1) |  |  | (7) |  |  | — |
Total operating lease liabilities(a) | $ | 1,271 |  |  | $ | 99 |  |  | $ | 652 |  |  | $ | 427 |  |  | $ | 225 |  |  | $ | 5 |  |  | $ | 34 |  |  | $ | 3 |
(a) Certain operating lease payments include renewal options that are reasonably certain to be exercised. The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  |  |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  |  |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  |  |  | Indiana |  |
2026 | $ | 95 |  |  | $ | 40 |  |  | $ | 94 |  |  | $ | 81 |  |  | $ | 13 |  |  |  |  | $ | 2 |  |  |
2027 | 88 |  |  | 40 |  |  | 91 |  |  | 82 |  |  | 9 |  |  |  |  | 2 |  |  |
2028 | 84 |  |  | 39 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
2029 | 81 |  |  | 38 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
2030 | 82 |  |  | 39 |  |  | 90 |  |  | 82 |  |  | 8 |  |  |  |  | 1 |  |  |
Thereafter | 497 |  |  | 319 |  |  | 437 |  |  | 323 |  |  | 114 |  |  |  |  | 18 |  |  |
Total finance lease payments | 927 |  |  | 515 |  |  | 892 |  |  | 732 |  |  | 160 |  |  |  |  | 25 |  |  |
Less: Amounts representing interest | (351) |  |  | (243) |  |  | (323) |  |  | (251) |  |  | (72) |  |  |  |  | (15) |  |  |
Total finance lease liabilities | $ | 576 |  |  | $ | 272 |  |  | $ | 569 |  |  | $ | 481 |  |  | $ | 88 |  |  |  |  | $ | 10 |  |  |
The following tables contain additional information related to leases.
|  | December 31, 2025
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Classification | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease ROU assets, net | $ | 1,241 |  |  | $ | 91 |  |  | $ | 607 |  |  | $ | 386 |  |  | $ | 221 |  |  | $ | 5 |  |  | $ | 32 |  |  | $ | 2 |
Finance | Net property, plant and equipment | 654 |  |  | 251 |  |  | 605 |  |  | 478 |  |  | 127 |  |  | — |  |  | 8 |  |  | — |
Total lease assets |  | $ | 1,895 |  |  | $ | 342 |  |  | $ | 1,212 |  |  | $ | 864 |  |  | $ | 348 |  |  | $ | 5 |  |  | $ | 40 |  |  | $ | 2 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Other current liabilities | $ | 238 |  |  | $ | 20 |  |  | $ | 100 |  |  | $ | 43 |  |  | $ | 57 |  |  | $ | — |  |  | $ | 6 |  |  | $ | 1 |
Finance | Current maturities of long-term debt | 55 |  |  | 11 |  |  | 53 |  |  | 45 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Noncurrent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease liabilities | 1,033 |  |  | 79 |  |  | 552 |  |  | 384 |  |  | 168 |  |  | 5 |  |  | 28 |  |  | 2 |
Finance | Long-Term Debt | 521 |  |  | 261 |  |  | 516 |  |  | 436 |  |  | 80 |  |  | — |  |  | 10 |  |  | — |
Total lease liabilities |  | $ | 1,847 |  |  | $ | 371 |  |  | $ | 1,221 |  |  | $ | 908 |  |  | $ | 313 |  |  | $ | 5 |  |  | $ | 44 |  |  | $ | 3 |
|  | December 31, 2024
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Classification | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease ROU assets, net | $ | 1,148 |  |  | $ | 98 |  |  | $ | 625 |  |  | $ | 348 |  |  | $ | 277 |  |  | $ | 6 |  |  | $ | 37 |  |  | $ | 4 |
Finance | Net property, plant and equipment | 645 |  |  | 252 |  |  | 620 |  |  | 512 |  |  | 108 |  |  | — |  |  | 6 |  |  | — |
Total lease assets |  | $ | 1,793 |  |  | $ | 350 |  |  | $ | 1,245 |  |  | $ | 860 |  |  | $ | 385 |  |  | $ | 6 |  |  | $ | 43 |  |  | $ | 4 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Other current liabilities | $ | 208 |  |  | $ | 20 |  |  | $ | 97 |  |  | $ | 42 |  |  | $ | 55 |  |  | $ | 1 |  |  | $ | 6 |  |  | $ | 1 |
Finance | Current maturities of long-term debt | 46 |  |  | 8 |  |  | 48 |  |  | 41 |  |  | 7 |  |  | — |  |  | — |  |  | — |
Noncurrent |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | Operating lease liabilities | 957 |  |  | 87 |  |  | 557 |  |  | 332 |  |  | 225 |  |  | 6 |  |  | 33 |  |  | 7 |
Finance | Long-Term Debt | 524 |  |  | 262 |  |  | 533 |  |  | 474 |  |  | 59 |  |  | — |  |  | 10 |  |  | — |
Total lease liabilities |  | $ | 1,735 |  |  | $ | 377 |  |  | $ | 1,235 |  |  | $ | 889 |  |  | $ | 346 |  |  | $ | 7 |  |  | $ | 49 |  |  | $ | 8 |
| Year Ended December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 277 |  |  | $ | 24 |  |  | $ | 122 |  |  | $ | 56 |  |  | $ | 66 |  |  | $ | 1 |  |  | $ | 8 |  |  | $ | 1 |
Operating cash flows from finance leases | 40 |  |  | 30 |  |  | 43 |  |  | 39 |  |  | 4 |  |  | — |  |  | 1 |  |  | — |
Financing cash flows from finance leases | 64 |  |  | 12 |  |  | 53 |  |  | 43 |  |  | 10 |  |  | — |  |  | 2 |  |  | — |
Lease assets obtained in exchange for new lease liabilities (non-cash) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | $ | 348 |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Finance | 72 |  |  | 15 |  |  | 40 |  |  | 9 |  |  | 31 |  |  | — |  |  | 2 |  |  | — |
| Year Ended December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
(in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 250 |  |  | $ | 24 |  |  | $ | 122 |  |  | $ | 57 |  |  | $ | 65 |  |  | $ | 1 |  |  | $ | 8 |  |  | $ | 1 |
Operating cash flows from finance leases | 41 |  |  | 31 |  |  | 44 |  |  | 41 |  |  | 3 |  |  | — |  |  | 1 |  |  | — |
Financing cash flows from finance leases | 113 |  |  | 7 |  |  | 46 |  |  | 38 |  |  | 8 |  |  | — |  |  | — |  |  | — |
Lease assets obtained in exchange for new lease liabilities (non-cash) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating | $ | 322 |  |  | $ | 50 |  |  | $ | 43 |  |  | $ | 3 |  |  | $ | 40 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 3 |
Finance | 81 |  |  | 1 |  |  | 55 |  |  | — |  |  | 55 |  |  | — |  |  | 1 |  |  | — |
(a) No amounts were classified as investing cash flows from operating leases.
| December 31, 2025
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
| Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Weighted average remaining lease term (years) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 8 |  | 9 |  | 10 |  | 9 |  | 12 |  | 11 |  | 9 |  | 3
Finance leases | 12 |  | 14 |  | 11 |  | 10 |  | 21 |  | — |  |  | 19 |  | — |
Weighted average discount rate(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 4.5 | % |  | 4.4 | % |  | 4.4 | % |  | 4.4 | % |  | 4.3 | % |  | 4.2 | % |  | 3.9 | % |  | 4.0 | %
Finance leases | 8.2 | % |  | 11.3 | % |  | 8.6 | % |  | 9.2 | % |  | 5.8 | % |  | — | % |  | 11.6 | % |  | — | %
| December 31, 2024
|  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |
| Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |
| Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont
Weighted average remaining lease term (years) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 8 |  | 9 |  | 9 |  | 8 |  | 11 |  | 11 |  | 11 |  | 4
Finance leases | 11 |  | 15 |  | 11 |  | 10 |  | 15 |  | — |  |  | 20 |  | — |
Weighted average discount rate(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases | 4.3 | % |  | 4.3 | % |  | 4.0 | % |  | 3.9 | % |  | 4.2 | % |  | 4.1 | % |  | 4.0 | % |  | 3.9 | %
Finance leases | 8.4 | % |  | 11.5 | % |  | 8.9 | % |  | 9.2 | % |  | 5.9 | % |  | — | % |  | 11.7 | % |  | — | %
(a) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.

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