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Duke Energy’s 2013 adjusted EPS results meet expectations; company announces 2014 adjusted EPS guidance range

February 18, 2014

– Company achieves adjusted diluted earnings per share (EPS) of $4.35 in 2013, compared to $4.32 in 2012; reported diluted EPS of $3.76 for 2013, compared to $3.07 in 2012

CHARLOTTE, N.C., Feb. 18, 2014 /PRNewswire/ — Duke Energy (NYSE: DUK) today posted 2013 full-year adjusted diluted EPS of $4.35, achieving the midpoint of its adjusted diluted EPS guidance range of $4.25 to $4.45. Adjusted diluted EPS for 2012 was $4.32.

(Logo: http://photos.prnewswire.com/prnh/20130322/CL81938LOGO )

Duke Energy’s full-year reported diluted EPS was $3.76 for 2013, compared to $3.07 in 2012.

Fourth quarter 2013 adjusted diluted EPS was $1.00, compared to 70 cents for fourth quarter 2012. Fourth quarter 2013 reported diluted EPS was 97 cents, compared to 62 cents for fourth quarter 2012.

For the quarter, the company achieved lower costs through synergies realized from the 2012 merger with Progress Energy; recovered infrastructure modernization costs through revised customer rates; and benefitted from the adoption of nuclear outage cost levelization in the Carolinas, which will lessen quarterly earnings volatility caused by the variable timing of nuclear refueling outages.

The company’s International Energy segment also saw favorable volumes and pricing in Brazil.

These positive quarterly drivers helped offset the full-year impact of lower results from the company’s Midwest gas generation fleet, unfavorable foreign exchange rates in Brazil, as well as interest expense on incremental financings.

“Our company demonstrated tremendous focus and discipline in 2013,” said Lynn Good, president and CEO. “As a result, we achieved the mid-point of our earnings per share guidance range, increased the dividend, and exceeded our original target of 5 to 7 percent in non-fuel operating and maintenance savings.

“We are also ahead of target to achieve our merger savings commitment to Carolinas customers through fuel and joint-dispatch savings,” she added.

“In 2014, we will focus on building on the momentum created in 2013 to achieve our financial and operational objectives,” Good said.

The company has set its 2014 adjusted diluted EPS guidance range at $4.45 to $4.60 and updated through 2016 its longer-term 4 to 6 percent average annual growth in adjusted diluted EPS based upon the midpoint of the original 2013 adjusted diluted EPS guidance range of $4.20-4.45.

Business Unit Results

The discussion below of fourth-quarter and year-end results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 27 through 30 present a reconciliation of reported results to adjusted results.

Regulated Utilities

Regulated Utilities (formerly known as U.S. Franchised Electric and Gas) recognized fourth-quarter 2013 adjusted segment income of $607 million, compared to $498 million in the fourth quarter 2012, an increase of $0.15 per share.

Increased quarterly results at Regulated Utilities were primarily driven by:

    --  Lower operating and maintenance expenses (+$0.20 per share) due in part
        to the adoption of nuclear outage cost levelization in the Carolinas,
        lower benefits costs and merger synergies
    --  Increased pricing and riders (+$0.12 per share) resulting from revised
        customer rates
    --  Favorable weather as compared to unfavorable weather in last year's
        quarter (+$0.06 per share)
    --  Increased wholesale net margins (+$0.03 per share).

These favorable drivers were partially offset by:

    --  Higher depreciation and amortization expense (-$0.09 per share)
        primarily resulting from reduced cost of removal amortization in Florida
        as well as additional plant in-service
    --  Higher effective tax rate (-$0.09 per share) largely resulting from the
        decrease in allowance for funds used during construction (AFUDC) equity.
    --  Lower AFUDC equity (-$0.05 per share) primarily due to the completion of
        certain major capital projects

Full-year 2013 adjusted segment income for Regulated Utilities was $2,776 million compared to $2,086 million in 2012, an increase of $0.98 per share.

These increased results were primarily driven by the addition of Progress Energy’s regulated utility operations in the Carolinas and Florida for the first six months of the year (+$0.72 per share).

Other favorable drivers (excluding the addition of Progress Energy for the first six months of the year), included:

    --  Increased pricing and riders (+$0.35 per share) resulting from revised
        customer rates
    --  Lower operating and maintenance expenses (+$0.21 per share) due in part
        to the adoption of nuclear outage cost levelization in the Carolinas,
        lower benefits costs and merger synergies
    --  Increased retail volumes (+$0.07 per share)
    --  Increased wholesale margins including new contracts (+$0.07 per share)

These results were partially offset by:

    --  Higher depreciation and amortization expense (-$0.15 per share)
        primarily resulting from reduced cost of removal amortization in Florida
        as well as additional plant in-service
    --  Lower AFUDC equity (-$0.14 per share) primarily due to the completion of
        certain major capital projects
    --  Higher effective tax rates (-$0.11 per share) largely resulting from the
        decrease in AFUDC equity.
    --  Higher property taxes (-$0.03 per share)

International Energy

International Energy recognized fourth-quarter 2013 adjusted segment income of $108 million, compared to $89 million in the fourth quarter 2012, an increase of $0.02 per share.

International Energy’s improved quarterly earnings were primarily due to stronger results in Latin America (+$0.03 per share) due to higher volumes and pricing as well as lower purchased power costs in Brazil. These drivers were partially offset by unfavorable foreign currency exchange rates in Brazil (-$0.01 per share).

Full-year 2013 adjusted segment income for International Energy was $408 million compared to $439 million in 2012, a decrease of $0.04 per share.

Lower year-over-year results were primarily due to unfavorable foreign currency exchange rates in Brazil (-$0.03 per share) and lower results at National Methanol Company (-$0.03 per share) primarily due to an extended planned maintenance outage. These results were partially offset by stronger results in Latin America (+$0.03 per share) primarily driven by higher average prices in Brazil.

Commercial Power

Commercial Power recognized fourth-quarter 2013 adjusted segment loss of $3 million, compared to break-even results in the fourth quarter 2012. This did not substantially affect earnings.

For the quarter, higher energy margins and PJM capacity revenues for the Midwest coal generation fleet (+$0.02 per share) were largely offset by lower margins at Duke Energy Retail (-$0.01 per share).

Full-year 2013 adjusted segment income for Commercial Power was $15 million compared to $93 million in 2012, a decrease of $0.11 per share.

Lower year-over-year results for Commercial Power were primarily due to lower results from the Midwest gas generation fleet (-$0.09 per share) due to lower energy margins and PJM capacity revenues as well as the prior year recovery of a previously written-off receivable from Lehman Brothers. For the Midwest coal generation fleet, lower PJM capacity revenues were largely offset by higher energy margins. Renewables results were lower (-$0.02) in 2013, primarily due to a prior year joint venture development fee.

Other

On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy’s captive insurance company, other investments, and income tax levelization adjustments.

Other recognized a fourth-quarter 2013 adjusted net expense of $6 million, compared to $91 million in the fourth quarter 2012, an improvement of $0.13 per share.

Other’s favorable results were primarily due to a lower effective tax rate (+$0.10 per share), favorable captive insurance loss experience (+$0.01 per share), and higher investment returns (+$0.01 per share).

Full-year 2013 adjusted net expense for Other was $128 million compared to $135 million in 2012, an improvement of $0.01 per share.

For the year, interest expense on Progress Energy holding company debt for the first six months (-$0.07 per share) and Duke Energy holding company interest expense (-$0.04 per share) were offset by a lower effective tax rate (+$0.10 per share).

Share Dilution

On July 2, 2012, Duke Energy issued approximately 258 million shares of common stock in connection with the closing of the merger with Progress Energy, Inc. The full year impact of the issuance of these additional shares had a dilutive impact of $0.81 per share on the year-over-year adjusted diluted EPS results.

Earnings Conference Call for Analysts

An earnings conference call for analysts is scheduled for 10 a.m. ET today.

In addition to discussing the fourth quarter and year-end 2013 results, the company will provide its 2014 adjusted diluted earnings per share guidance range and other business and financial updates.

The conference call will be hosted by Lynn Good, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.

The call can be accessed via the investors’ section (http://www.duke-energy.com/investors/) of Duke Energy’s website or by dialing 888-349-9582 in the United States or 719-325-2291 outside the United States. The confirmation code is 8505537. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 2 p.m. ET, Feb. 28, 2014, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 8505537. A replay and transcript also will be available by accessing the investors’ section of the company’s website.

Special Items and Non-GAAP Reconciliation


    Special items affecting Duke Energy's adjusted diluted EPS for fourth quarter 2013 and fourth quarter 2012
     include:

    (In millions, except
     per-share amounts)                                  Pre-Tax                  Tax                   4Q2013   4Q2012

                                                          Amount               Effect                      EPS      EPS

                                                                                                          Impact   Impact
    ---                                                                           ---                   ------   ------

    Fourth Quarter 2013
    -------------------

    -Costs to Achieve,
     Progress Energy
     Merger                                                 $(72)                 $27                   $(0.06)
    ------------------                                      ----                  ---                   ------

    -Crystal River Unit
     3 Charges                                              $(57)                 $22                   $(0.05)
    -------------------                                     ----                  ---                   ------

    - Economic Hedges
     (Mark-to-Market)                                       $(17)                  $6                   $(0.02)
    -----------------                                       ----                  ---                   ------

    - Asset Sales                                            $81                 $(31)                   $0.07
    -------------                                            ---                 ----                    -----

    - Litigation Reserve                                     $28                 $(11)                   $0.02
    --------------------                                     ---                 ----                    -----

    -Discontinued
     Operations                                               --                   $6                    $0.01
    -------------                                            ---                  ---                    -----

    Fourth Quarter 2012
    -------------------

    -Costs to Achieve,
     Progress Energy
     Merger                                                $(164)                 $73                            $(0.13)
    ------------------                                     -----                  ---                            ------

    -Edwardsport
     Charges                                                $(28)                 $11                            $(0.02)
    ------------                                            ----                  ---                            ------

    - Economic Hedges
     (Mark-to-Market)                                        $26                 $(10)                            $0.02
    -----------------                                        ---                 ----                             -----

    -Discontinued
     Operations                                              $56                 $(25)                            $0.05
    -------------                                            ---                 ----                             -----

    Total diluted EPS impact                                                                            $(0.03)  $(0.08)
    ------------------------                                                                            ------   ------

    Special items affecting Duke Energy's adjusted diluted EPS for full-year 2013 and full-year 2012 include:

    (In millions, except
     per-share amounts)                                  Pre-Tax                  Tax                     2013     2012

                                                          Amount               Effect                      EPS      EPS

                                                                                                        Impact   Impact
    ---                                                                           ---                   ------   ------

    Full-Year 2013
    --------------

    -Crystal River Unit
     3 Charges                                             $(352)                $137                   $(0.31)
    -------------------                                    -----                 ----                   ------

    -Costs to Achieve,
     Progress Energy
     Merger                                                $(297)                $113                   $(0.26)
    ------------------                                     -----                 ----                   ------

    -Nuclear
     Development Charges                                    $(87)                 $30                   $(0.08)
    --------------------                                    ----                  ---                   ------

    - Litigation Reserve                                    $(22)                  $8                   $(0.02)
    --------------------                                    ----                  ---                   ------

    - Economic Hedges
     (Mark-to-Market)                                        $(4)                  $1                   $(0.01)
    -----------------                                        ---                  ---                   ------

    - Asset Sales                                            $81                 $(31)                   $0.07
    -------------                                            ---                 ----                    -----

    -Discontinued
     Operations                                             $(10)                 $27                    $0.02
    -------------                                           ----                  ---                    -----

    Full-Year 2012
    --------------

    -Costs to Achieve,
     Progress Energy
     Merger                                                $(636)                $239                            $(0.70)
    ------------------                                     -----                 ----                            ------

    -Edwardsport
     Charges                                               $(628)                $226                            $(0.70)
    ------------                                           -----                 ----                            ------

    -DNC Host Committee
     Support                                                $(10)                  $4                            $(0.01)
    -------------------                                     ----                  ---                            ------

    - Economic Hedges
     (Mark-to-Market)                                        $(9)                  $3                            $(0.01)
    -----------------                                        ---                  ---                            ------

    -Voluntary
     Opportunity Plan
     Deferral                                                $99                 $(39)                            $0.11
    -----------------                                        ---                 ----                             -----

    -Discontinued
     Operations                                              $60                 $(24)                            $0.06
    -------------                                            ---                 ----                             -----

    Total diluted EPS impact                                                                            $(0.59)  $(1.25)
    ------------------------                                                                            ------   ------

    Reconciliation of reported to adjusted diluted EPS for the quarters:

                                                                                                        4Q2013   4Q2012

                                                                                                           EPS      EPS
                                                                                                           ---      ---

    Diluted EPS, as reported                                                                             $0.97    $0.62
    ------------------------                                                                             -----    -----

    Adjustments to reported EPS:

    - Diluted EPS impact of special items, mark-to-market in                                             $0.03    $0.08

      Commercial Power, and discontinued operations (net of tax)
      ---------------------------------------------------------

    Diluted EPS, adjusted                                                                                $1.00    $0.70
    ---------------------                                                                                -----    -----

    Reconciliation of reported to adjusted diluted EPS for the annual periods:

                                                                                                          2013     2012

                                                                                                           EPS      EPS
                                                                                                           ---      ---

    Diluted EPS, as reported                                                                             $3.76    $3.07
    ------------------------                                                                             -----    -----

    Adjustments to reported EPS:

    - Diluted EPS impact of special items, mark-to-market in                                             $0.59    $1.25

      Commercial Power, and discontinued operations (net of tax)
      ---------------------------------------------------------

    Diluted EPS, adjusted                                                                                $4.35    $4.32
    ---------------------                                                                                -----    -----

Non-GAAP financial measures

Management evaluates financial performance in part based on the non-GAAP financial measures, adjusted earnings and adjusted diluted earnings per share (EPS). These items are measured as income from continuing operations after deducting income attributable to noncontrolling interests, adjusted for the dollar and per share impact of special items and mark-to-market impacts of economic hedges in the Commercial Power segment. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting results to the Board of Directors, employees, shareholders, analysts and investors concerning Duke Energy’s financial performance. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS attributable to Duke Energy Corporation common shareholders, which include the dollar and per share impact of special items, mark-to-market impacts of economic hedges in the Commercial Power segment and discontinued operations.

Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the 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 and mark-to-market impacts of economic hedges in the Commercial Power segment. 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 is segment income, which represents segment income from continuing operations, including any special items and mark-to-market impacts of economic hedges in the Commercial Power segment.

Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items or mark-to-market adjustments for future periods. The earnings guidance range assumptions for 2014 include a full-year of earnings contributions from the Midwest generation fleet, which management has begun a process to exit. Irrespective of whether this business is reclassified as discontinued operations for accounting purposes, management expects to continue including any Midwest generation fleet earnings in adjusted earnings, adjusted diluted EPS, and adjusted segment income. Management believes it is unlikely a sale transaction will close in 2014.

Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses 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, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.

Forward-Looking Information

This release 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.

These forward-looking statements are identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the ability to recover eligible costs, including those associated with future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 could prove to be more extensive than is currently identified and all costs may not be fully recoverable through the regulatory process; the risk that the credit ratings of the company or its subsidiaries may be different from what the companies expect; 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 customer usage patterns, including energy efficiency efforts and use of alternative energy sources including self-generation and distributed generation technologies; additional competition in electric markets and continued industry consolidation; political and regulatory uncertainty in other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers; the impact on facilities and business from a terrorist attack, cyber security threats, data security breaches and other catastrophic events; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity price, interest rates and foreign currency exchange 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; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general economic conditions; declines in the market prices of equity securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; 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; 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 potential goodwill impairments; the ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax free basis; and the ability to successfully complete future merger, acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Duke Energy’s and its subsidiaries’ reports filed with the SEC and available at the SEC’s website at www.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 Duke Energy has described. Forward looking statements speak only as of the date they are made, Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

Media Contact: Tom Shiel

Office: 704.382.2355 | 24-Hour: 800.559.3853

Analysts: Bill Currens

Office: 704.382.1603


                                                                           DUKE ENERGY CORPORATION

                                                                             EARNINGS VARIANCES

                                                                      December 2013 QTD vs. Prior Year

    ($ per share)                                       Regulated           International              Commercial
                                                                             Energy                     Power        Other            Consolidated
                                                        Utilities

    2012 QTD Reported Earnings Per Share, Diluted                 $0.69                                        $0.13           $0.02               $(0.27) $0.62
                                                                  -----                                        -----           -----               ------  -----

    Costs to Achieve, Progress Merger                                 -                                            -               -                 0.13   0.13

    Edwardsport Charges                                            0.02                                            -               -                    -   0.02

    Economic Hedges (Mark-to-Market)                                  -                                            -           (0.02)                   -  (0.02)

    Discontinued Operations                                                                                                                                (0.05)

    2012 QTD Adjusted Earnings Per Share, Diluted                 $0.71                                        $0.13        $      -               $(0.14) $0.70
                                                                  -----                                        -----      ---    ---               ------  -----

    Weather                                                        0.06                                            -               -                    -   0.06

    Pricing and Riders (a)                                         0.12                                            -               -                    -   0.12

    Operation and Maintenance, net of recoverables (b)             0.20                                            -               -                    -   0.20

    Latin America, including Foreign Exchange Rates (c)               -                                         0.02               -                    -   0.02

    Midwest Coal Generation (d)                                       -                                            -            0.02                    -   0.02

    Duke Energy Retail                                                -                                            -           (0.01)                   -  (0.01)

    Interest Expense                                              (0.01)                                           -               -                (0.01) (0.02)

    Change in effective income tax rate                           (0.09)                                           -           (0.01)                0.10      -

    Other (e)(f)                                                  (0.13)                                           -               -                 0.04  (0.09)

                                                                                                                                   -

    2013 QTD Adjusted Earnings Per Share, Diluted                 $0.86                                        $0.15        $      -               $(0.01) $1.00
                                                                  -----                                        -----      ---    ---               ------  -----

    Crystal River Unit 3 Charges                                  (0.05)                                           -               -                    -  (0.05)

    Asset Sales                                                       -                                            -           (0.02)                0.09   0.07

    Costs to Achieve, Progress Merger                                 -                                            -               -                (0.06) (0.06)

    Litigation Reserve                                                -                                            -               -                 0.02   0.02

    Economic Hedges (Mark-to-Market)                                  -                                            -           (0.02)                   -  (0.02)

    Discontinued Operations                                                                                                                                 0.01

    2013 QTD Reported Earnings Per Share, Diluted                 $0.81                                        $0.15          $(0.04)               $0.04  $0.97
                                                                  -----                                        -----          ------                -----  -----

        Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

         Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to
         rounding.

    (a)  Primarily due to the September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.07), the June 2013
         implementation of revised

         base rates for Duke Energy Progress (+$0.04), the January 2013 implementation of revised base rates for Duke Energy Florida
         (+$0.03), and the May 2013

        implementation of revised distribution rates for Duke Energy Ohio (+$0.01).

    (b) Primarily driven by the impact of nuclear outage cost levelization, lower generation operating expenses and lower benefit costs.

    (c)  Primarily driven by higher volumes and pricing as well as lower average purchased power costs in Brazil (+$0.03), partially offset
         by unfavorable foreign exchange rates (-$0.01).

    (d) Primarily due to higher energy margins and PJM capacity revenues (+$0.02).

    (e)  Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.09), lower AFUDC-equity (-
         $0.05), and higher non-income taxes (-$0.01), partially offset by higher wholesale margins, including new contracts (+$0.03).

    (f) Amount for Other principally includes favorable captive insurance loss experience (+$0.01) and higher investment returns (+$0.01).


                                                                                    DUKE ENERGY CORPORATION

                                                                                      EARNINGS VARIANCES

                                                                               December 2013 YTD vs. Prior Year

    ($ per share)                                                               Regulated                       International Commercial
                                                                                                                 Energy       Power          Other         Consolidated
                                                                                Utilities

    2012 YTD Reported Earnings Per Share, Diluted                                                       $3.04                         $0.76         $0.15               $(0.94) $3.07
                                                                                                        -----                         -----         -----               ------  -----

    Costs to Achieve, Progress Merger                                                                       -                             -             -                 0.70   0.70

    Edwardsport Charges                                                                                  0.70                             -             -                    -   0.70

    Voluntary Opportunity Plan Deferral                                                                 (0.11)                            -             -                    -  (0.11)

    DNC Host Committee Support                                                                              -                             -             -                 0.01   0.01

    Economic Hedges (Mark-to-Market)                                                                        -                             -          0.01                    -   0.01

    Discontinued Operations                                                                                                                                                     (0.06)

    2012 YTD Adjusted Earnings Per Share, Diluted                                                       $3.63                         $0.76         $0.16               $(0.23) $4.32
                                                                                                        -----                         -----         -----               ------  -----

    Share Differential (a)                                                                              (0.68)                        (0.14)        (0.03)                0.04  (0.81)

    2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance                          $2.95                         $0.62         $0.13               $(0.19) $3.51
                                                                                                        -----                         -----         -----               ------  -----

    Progress Energy Contribution                                                                         0.72                             -             -                (0.07)  0.65

    Pricing and Riders (b)                                                                               0.35                             -             -                    -   0.35

    Volume                                                                                               0.07                             -             -                    -   0.07

    Operation and Maintenance, net of recoverables (c)                                                   0.21                             -             -                    -   0.21

    Latin America, including Foreign Exchange Rates (d)                                                     -                             -             -                    -      -

    National Methanol Company                                                                               -                         (0.03)            -                    -  (0.03)

    Midwest Coal Generation (e)                                                                             -                             -             -                    -      -

    Midwest Gas Generation (f)                                                                              -                             -         (0.09)                   -  (0.09)

    Interest Expense                                                                                     0.01                             -          0.02                (0.04) (0.01)

    Change in effective income tax rate                                                                 (0.11)                            -             -                 0.10  (0.01)

    Other (g)(h)                                                                                        (0.27)                        (0.01)        (0.04)                0.02  (0.30)

    2013 YTD Adjusted Earnings Per Share, Diluted                                                       $3.93                         $0.58         $0.02               $(0.18) $4.35
                                                                                                        -----                         -----         -----               ------  -----

    Crystal River Unit 3 Charges                                                                        (0.31)                            -             -                    -  (0.31)

    Nuclear Development Charges                                                                         (0.08)                            -             -                    -  (0.08)

    Costs to Achieve, Progress Merger                                                                       -                             -             -                (0.26) (0.26)

    Litigation Reserve                                                                                      -                             -             -                (0.02) (0.02)

    Asset Sales                                                                                             -                             -         (0.02)                0.09   0.07

    Economic Hedges (Mark-to-Market)                                                                        -                             -         (0.01)                   -  (0.01)

    Discontinued Operations                                                                                                                                                      0.02

    2013 YTD Reported Earnings Per Share, Diluted                                                       $3.54                         $0.58        $(0.01)              $(0.37) $3.76
                                                                                                        -----                         -----        ------               ------  -----

        Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

        Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

    (a)  Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a
         result of shares issued to

         complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 575 million for the year ended December 31, 2012, to 706
         million for the year ended

        December 31, 2013.

    (b)  Primarily due to the February 2012 and September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.11), the January 2013 implementation of
         revised base rates for Duke Energy Florida (+$0.08), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.07), increased recovery
         under the IGCC rider, net of AFUDC, for Duke Energy Indiana (+$0.05), and the May 2013 implementation of revised distribution rates for Duke Energy Ohio
         (+$0.03).

    (c)  Primarily driven by the impact of nuclear outage cost levelization, lower nuclear generation operating expenses, lower benefit costs and the deferral of Crystal
         River Unit 3 costs.

    (d) Primarily driven by higher average prices in Brazil (+$0.03), offset by unfavorable foreign exchange rates (-$0.03).

    (e) Primarily due to lower PJM capacity revenues (-$0.05), partially offset by higher energy margins (+$0.03) and lower operations and maintenance expense (+$0.02).

    (f)  Primarily due to decreased energy margins due to lower volumes (-$0.04), lower PJM capacity revenues (-$0.04), and the prior-year recovery of a previously
         written-off Lehman Brothers
        receivable (-$0.01).

    (g)  Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.15), lower AFUDC-equity (-$0.14), and higher property taxes
         (-$0.03), partially offset by higher wholesale margins, including new contracts (+$0.07).

    (h) Amount for Commercial Power includes lower Renewables results (-$0.02).


                                                        DUKE ENERGY CORPORATION

                                                           EARNINGS VARIANCES

                                                    December 2013 QTD vs. Prior Year

    ($ per share)                                                         Legacy         Legacy        Consolidated

                                                                      Progress Energy Duke Energy

    2012 QTD Adjusted Earnings Per Share, Diluted                                               $0.22               $0.48  $0.70
                                                                                                -----               -----  -----

    Weather                                                                                      0.01                0.05   0.06

    Pricing and Riders                                                                           0.07                0.05   0.12

    Operation and Maintenance, net of recoverables                                               0.06                0.14   0.20

    Latin America, including Foreign Exchange Rates                                                 -                0.02   0.02

    Midwest Coal Generation                                                                         -                0.02   0.02

    Duke Energy Retail                                                                              -               (0.01) (0.01)

    Interest Expense                                                                             0.01               (0.03) (0.02)

    Change in effective income tax rate                                                          0.05               (0.05)     -

    Other                                                                                       (0.03)              (0.06) (0.09)

                                                                                                    -

    2013 QTD Adjusted Earnings Per Share, Diluted                                               $0.39               $0.61  $1.00
                                                                                                -----               -----  -----

     Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

      Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due
      to rounding.


                                                                                    DUKE ENERGY CORPORATION

                                                                                      EARNINGS VARIANCES

                                                                               December 2013 YTD vs. Prior Year

                                                                                                               Legacy Progress Energy                      Legacy

                                                                                                                                                        Duke Energy
                                                                                                                                                        -----------

    ($ per share)                                                                                For the Six                           For the Six                  For the Year        Consolidated

                                                                                                Months Ended                          Months Ended                      Ended

                                                                                                June 30, 2013                         December 31,                  December 31,

                                                                                                                                                   2013                     2013

    2012 YTD Adjusted Earnings Per Share, Diluted                                                                                                                                                           $4.32
                                                                                                                                                                                                            -----

    Share Differential (a)                                                                                                                                                                                  (0.81)

    2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance                                                      $                 -                          $0.74               $2.77  $3.51
                                                                                                                                  ---               ---                          -----               -----  -----

    Progress Energy Contribution for the six months ended June 30, 2013 (b)                                                                        0.65                              -                   -   0.65

    Pricing and Riders                                                                                                                                -                           0.17                0.18   0.35

    Volume                                                                                                                                            -                           0.02                0.05   0.07

    Operation and Maintenance and Governance Expenses                                                                                                 -                           0.03                0.18   0.21

    Latin America, including Foreign Exchange Rates                                                                                                   -                              -                   -      -

    National Methanol Company                                                                                                                         -                              -               (0.03) (0.03)

    Midwest Coal Generation                                                                                                                           -                              -                   -      -

    Midwest Gas Generation                                                                                                                            -                              -               (0.09) (0.09)

    Interest Expense                                                                                                                                  -                           0.03               (0.04) (0.01)

    Change in effective income tax rate                                                                                                               -                           0.03               (0.04) (0.01)

    Other                                                                                                                                             -                          (0.13)              (0.17) (0.30)

                                                                                                                                                      -                              -

    2013 YTD Adjusted Earnings Per Share, Diluted                                                                                                 $0.65                          $0.89               $2.81  $4.35
                                                                                                                                                  -----                          -----               -----  -----

        Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.

        Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.

    (a)  Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a
         result of shares issued to

         complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 575 million for the year ended December 31, 2012, to 706
         million for the year ended

        December 31, 2013.

    (b)  Reflects Progress Energy's contribution to EPS for the six months ended June 30, 2013. Progress Energy contributed +$0.72 per share to Regulated Utilities and
         -$0.07 per share to Other.


                                                                                                       December 2013

                                                                                                    QUARTERLY HIGHLIGHTS

                                                                                                        (Unaudited)

                                                                                                                             Three Months Ended             Years Ended

                                                                                                                                December 31,                December 31,
                                                                                                                                 ------------                ------------

    (In millions, except per-share amounts and where noted)                                                                          2013         2012                       2013                       2012
    ------------------------------------------------------                                                                           ----         ----                       ----                       ----

    COMMON STOCK DATA

    Income from continuing operations attributable to Duke Energy Corporation common shareholders

       Basic                                                                                                                        $0.96        $0.57                      $3.74                      $3.01

       Diluted                                                                                                                      $0.96        $0.57                      $3.74                      $3.01

    Income from discontinued operations attributable to Duke Energy Corporation common shareholders

       Basic                                                                                                                        $0.01        $0.05                      $0.03                      $0.06

       Diluted                                                                                                                      $0.01        $0.05                      $0.02                      $0.06

    Net income attributable to Duke Energy Corporation common shareholders

       Basic                                                                                                                        $0.97        $0.62                      $3.77                      $3.07

       Diluted                                                                                                                      $0.97        $0.62                      $3.76                      $3.07

    Dividends Declared Per Share                                                                                                    $0.78       $0.765                      $3.09                      $3.03

    Weighted-Average Shares Outstanding

       Basic                                                                                                                          706          704                        706                        574

       Diluted                                                                                                                        706          705                        706                        575

    SEGMENT INCOME BY BUSINESS SEGMENT

    Regulated Utilities(a)(b)(c)                                                                                                     $572         $481                     $2,504                     $1,744

    International Energy                                                                                                              108           89                        408                        439

    Commercial Power                                                                                                                  (29)          16                         (3)                        87
                                                                                                                                      ---          ---                        ---                        ---

    Total Reportable Segment Income                                                                                                   651          586                      2,909                      2,270

    Other Net Expense(d)(e)(f)                                                                                                         31         (182)                      (261)                      (538)

    Income from Discontinued Operations, net of tax                                                                                     6           31                         17                         36
                                                                                                                                      ---          ---                        ---                        ---

    Net Income Attributable to Duke Energy Corporation                                                                               $688         $435                     $2,665                     $1,768
                                                                                                                                     ====         ====                     ======                     ======

                                                                                                                         $              -           $1           $              -           $              -
                                                                                                                         ----------------          ---           ----------------           ----------------

    CAPITALIZATION

    Total Common Equity                                                                                                                                      50%                        50%

    Total Debt                                                                                                                                               50%                        50%

    Total Debt                                                                                                                                          $41,095                    $40,518

    Book Value Per Share                                                                                                                                 $58.61                     $58.12

    Actual Shares Outstanding                                                                                                                               706                        704

    CAPITAL AND INVESTMENT EXPENDITURES

    Regulated Utilities                                                                                                            $1,476       $1,360                     $5,049                     $4,220

    International Energy                                                                                                               23          432                         67                        551

    Commercial Power                                                                                                                  158          213                        268                      1,038

    Other                                                                                                                              43           65                        223                        149
                                                                                                                                      ---          ---                        ---                        ---

    Total Capital and Investment Expenditures                                                                                      $1,700       $2,070                     $5,607                     $5,958
                                                                                                                                   ======       ======                     ======                     ======

    (a)  Includes impairment and other charges related to the Crystal River Unit 3 Nuclear Station of $35 million for the three months ended December
         31, 2013 (net of tax of $22

        million), and $215 million for the year ended December 31, 2013 (net of tax of $137 million).

    (b)  Includes impairment charges of $57 million for the year ended December 31, 2013 related to nuclear development costs (net of tax of $30
         million).

    (c)  Includes impairment and other charges related to the Edwardsport IGCC project of $17 million for the three months ended December 31, 2012 (net
         of tax of $11 million), and $402 million for the year ended December 31, 2012 (net of tax of $226 million).

    (d) Includes a gain from asset sales of $65 million for the three months ended December 31, 2013 (net of tax of $40 million).

    (e)  Includes costs to achieve the Progress Energy merger of $45 million for the three months ended December 31, 2013 (net of tax of $27 million),
         and $184 million for the year ended December 31, 2013 (net of tax of $113 million).

    (f)  Includes costs to achieve the Progress Energy merger of $91 million for the three months ended December 31, 2012 (net of tax of $73 million),
         and $397 million for the year ended December 31, 2012 (net of tax of $239 million).


                                                                December 2013

                                                             QUARTERLY HIGHLIGHTS

                                                                 (Unaudited)

                                                                                  Three Months Ended                Years Ended

                                                                                     December 31,                  December 31,
                                                                                   ------------               ------------

    (In millions, except where noted)                                                 2013             2012                 2013            2012
    --------------------------------                                                  ----             ----                 ----            ----

    REGULATED UTILITIES

       Operating Revenues(a)                                                        $5,144           $4,873              $20,910         $16,080

       Operating Expenses(b)(c)(d)                                                   3,990            4,029               16,126          12,943

       Gains on Sales of Other Assets, net                                               1                2                    7              15
                                                                                       ---              ---                  ---             ---

       Operating Income                                                              1,155              846                4,791           3,152

       Other Income and Expenses                                                        55              114                  221             341

       Interest Expense                                                                273              260                  986             806
                                                                                       ---              ---                  ---             ---

       Income Before Income Taxes                                                      937              700                4,026           2,687

       Income Tax Expense(e)(f)(g)                                                     365              218                1,522             941

       Less: Income Attributable to Noncontrolling Interests                             -                1                    -               2

       Segment Income                                                                 $572             $481               $2,504          $1,744
                                                                                      ----             ----               ------          ------

       Depreciation and Amortization                                                  $628             $552               $2,323          $1,827

       Duke Energy Carolinas GWh sales                                              20,407           19,224               85,790          81,362

       Duke Energy Progress GWh sales                                               14,443           14,425               60,204          58,390

       Duke Energy Florida's GWh sales                                               8,842            8,629               37,974          38,443

       Duke Energy Ohio GWh sales                                                    5,990            5,744               24,557          24,344

       Duke Energy Indiana GWh sales                                                 8,526            7,893               33,715          33,577
                                                                                     -----            -----               ------          ------

       Total GWh sales                                                              58,208           55,915              242,240         236,116

       Net Proportional MW Capacity in Operation                                                             49,607               49,654

    INTERNATIONAL ENERGY

       Operating Revenues                                                             $378             $368               $1,546          $1,549

       Operating Expenses                                                              235              275                1,000           1,043

       Gains on Sales of Other Assets, net                                               3                -                    3               -
                                                                                       ---              ---

       Operating Income                                                                146               93                  549             506

       Other Income and Expenses                                                        30               35                  125             171

       Interest Expense                                                                 26               16                   86              76
                                                                                       ---              ---                  ---             ---

       Income Before Income Taxes                                                      150              112                  588             601

       Income Tax Expense                                                               38               20                  166             149

       Less: Income Attributable to Noncontrolling Interests                             4                3                   14              13
                                                                                       ---              ---                  ---             ---

       Segment Income                                                                 $108              $89                 $408            $439
                                                                                      ----              ---                 ----            ----

       Depreciation and Amortization                                                   $25              $25                 $100             $99

       Sales, GWh                                                                    5,562            4,868               20,306          20,132

       Proportional MW Capacity in Operation                                                                  4,600                4,584

    COMMERCIAL POWER

       Operating Revenues                                                             $586             $471               $2,145          $2,078

       Operating Expenses                                                              623              469                2,178           1,981

       (Losses) Gains on Sales of Other Assets, net                                    (24)              (3)                 (23)              8
                                                                                       ---              ---                  ---             ---

    Operating (Loss) Income                                                            (61)              (1)                 (56)            105

       Other Income and Expenses                                                         4               13                   13              39

       Interest Expense                                                                 16                8                   64              63
                                                                                       ---              ---                  ---             ---

       (Loss) Income Before Income Taxes                                               (73)               4                 (107)             81

       Income Tax Benefit                                                              (44)             (12)                (104)             (7)

       Less: Income Attributable to Noncontrolling Interests                             -                -                    -               1
                                                                                       ---              ---                  ---             ---

       Segment (Loss) Income                                                          $(29)             $16                  $(3)            $87
                                                                                      ----              ---                  ---             ---

       Depreciation and Amortization                                                   $62              $56                 $250            $228

    Actual Coal-fired Plant Production, GWh                                          4,737            3,743               18,467          16,164

    Actual Gas-fired Plant Production, GWh                                           4,099            3,639               15,052          17,122

    Actual Renewable Plant Production, GWh                                           1,350            1,053                5,111           3,452
                                                                                     -----            -----                -----

    Actual Plant Production, GWh                                                    10,186            8,435               38,630          36,738

       Net Proportional MW Capacity in Operation                                                              7,915                8,094

    OTHER

       Operating Revenues                                                              $38              $23                 $163             $74

       Operating Expenses(h)(i)                                                         75              190                  461             704

       Losses on Sales of Other Assets, net                                              1               (4)                  (3)             (7)
                                                                                       ---              ---                  ---             ---

       Operating Loss                                                                  (36)            (171)                (301)           (637)

       Other Income and Expenses(j)                                                    124                2                  131              16

       Interest Expense                                                                107              101                  417             297
                                                                                       ---              ---                  ---             ---

       Loss Before Income Taxes                                                        (19)            (270)                (587)           (918)

       Income Tax Benefit(k)(l)(m)                                                     (50)             (86)                (323)           (378)

       Less: Loss Attributable to Noncontrolling Interests                               -               (2)                  (3)             (2)
                                                                                       ---              ---                  ---             ---

    Segment Income (Net Expense)                                                       $31            $(182)               $(261)          $(538)
                                                                                       ---            -----                -----           -----

       Depreciation and Amortization                                                   $31              $36                 $135            $135

    (a) Includes pre-tax charges of $28 million for the three months and year ended December 31,
        2012, related to the Edwardsport IGCC project.

    (b) Includes pre-tax impairment and other charges of $600 million for the year ended December
        31, 2012, related to the Edwardsport IGCC project.

    (c) Includes pre-tax impairment and other charges of $57 million for the three months ended
        December 31, 2013, and $352 million for the year ended December 31, 2013, related to the
        Crystal River Unit 3 Nuclear Station.

    (d) Includes pre-tax impairment charges of $87 million for the year ended December 31, 2013,
        related to nuclear development costs.

    (e) Includes a tax benefit of $226 million for year ended December 31, 2012, on the impairment
        and other charges related to the Edwardsport IGCC project.

    (f) Includes a tax benefit of $22 million for the three months ended December 31, 2013, and
        $137 million for the year ended December 31, 2013, on the impairment and other charges
        related to the Crystal River Unit 3 Nuclear Station.

    (g) Includes a tax benefit of $30 million for the year ended December 31, 2013, on the
        impairment related to nuclear development costs.

    (h) Includes costs to achieve the Progress Energy merger of $77 million recorded in Operating
        Expense for the three months ended December 31, 2013, and $352 million recorded in
        Operating Expense for the year ended December 31, 2013.

    (i) Includes costs to achieve the Progress Energy merger of $166 million recorded in Operating
        Expense for the three months ended December 31, 2012, and $628 million recorded in
        Operating Expense for the year ended December 31, 2012.

    (j) Includes a gain from asset sales of $105 million for the three months and year ended
        December 31, 2013.

    (k) Includes a tax benefit of $27 million for the three months ended December 31, 2013, and
        $113 million for the year ended December 31, 2013, on costs to achieve the Progress Energy
        merger.

    (l) Includes a tax benefit of $73 million for the three months ended December 31, 2012, and
        $239 million for the year ended December 31, 2012, on costs to achieve the Progress Energy
        merger.

    (m) Includes tax expense of $40 million for the three months and year ended December 31, 2013,
        on a gain from asset sales.


                                                                                                            DUKE ENERGY CORPORATION

                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                                                  (Unaudited)

                                                                                                    (In millions, except per-share amounts)

                                                                                                                                             Years Ended December 31,
                                                                                                                                             ------------------------

                                                                                                                                               2013        2012        2011
                                                                                                                                               ----        ----        ----

    Operating Revenues

    Regulated electric                                                                                                                      $20,439     $15,621     $10,589

    Nonregulated electric, natural gas, and other                                                                                             3,648       3,534       3,383

    Regulated natural gas                                                                                                                       511         469         557
    ---------------------                                                                                                                       ---         ---

    Total operating revenues                                                                                                                 24,598      19,624      14,529
    ------------------------                                                                                                                 ------      ------      ------

    Operating Expenses

    Fuel used in electric generation and purchased power - regulated                                                                          7,108       5,582       3,309

    Fuel used in electric generation and purchased power - nonregulated                                                                       1,822       1,722       1,488

    Cost of natural gas and coal sold                                                                                                           254         264         348

    Operation, maintenance and other                                                                                                          5,910       5,006       3,770

    Depreciation and amortization                                                                                                             2,808       2,289       1,806

    Property and other taxes                                                                                                                  1,299         985         704

    Impairment charges                                                                                                                          399         666         335

    Total operating expenses                                                                                                                 19,600      16,514      11,760
    ------------------------                                                                                                                 ------      ------      ------

    (Losses) Gains on Sales of Other Assets and Other, net                                                                                      (16)         16           8

    Operating Income                                                                                                                          4,982       3,126       2,777
    ----------------                                                                                                                          -----       -----       -----

    Other Income and Expenses

    Equity in earnings of unconsolidated affiliates                                                                                             122         148         160

    Gains on sales of unconsolidated affiliates                                                                                                 100          22          11

    Other income and expenses, net                                                                                                              262         397         376

    Total other income and expenses                                                                                                             484         567         547
    -------------------------------                                                                                                             ---         ---         ---

    Interest Expense                                                                                                                          1,546       1,242         859
    ----------------                                                                                                                          -----       -----         ---

    Income From Continuing Operations Before Income Taxes                                                                                     3,920       2,451       2,465

    Income Tax Expense from Continuing Operations                                                                                             1,261         705         752
    ---------------------------------------------                                                                                             -----         ---         ---

    Income From Continuing Operations                                                                                                         2,659       1,746       1,713
    ---------------------------------                                                                                                         -----       -----       -----

    Income From Discontinued Operations, net of tax                                                                                              17          36           1
    -----------------------------------------------                                                                                             ---         ---         ---

    Net Income                                                                                                                                2,676       1,782       1,714

    Less: Net Income Attributable to Noncontrolling Interests                                                                                    11          14           8
    ---------------------------------------------------------                                                                                   ---         ---         ---

    Net Income Attributable to Duke Energy Corporation                                                                                       $2,665      $1,768      $1,706
    --------------------------------------------------                                                                                       ------      ------      ------

    Earnings Per Share - Basic and Diluted

    Income from continuing operations attributable to Duke Energy Corporation common shareholders

                                                                            Basic                                                             $3.74       $3.01       $3.83

                                                                            Diluted                                                           $3.74       $3.01       $3.83

    Income from discontinued operations attributable to Duke Energy Corporation common shareholders

                                                                            Basic                                                             $0.03       $0.06         $ -

                                                                            Diluted                                                           $0.02       $0.06         $ -

    Net Income attributable to Duke Energy Corporation common shareholders

                                                                            Basic                                                             $3.77       $3.07       $3.83

                                                                            Diluted                                                           $3.76       $3.07       $3.83

    Weighted-average shares outstanding

                                                                            Basic                                                               706         574         444

                                                                            Diluted                                                             706         575         444


                                                                                                                                 DUKE ENERGY CORPORATION

                                                                                                                               CONSOLIDATED BALANCE SHEETS
                                                                                                                                       (Unaudited)

                                                                                                                                      (In millions)

                                                                                                                                                                                                                   December 31,
                                                                                                                                                                                                                   ------------

                                                                                                                                                                                                                      2013          2012
                                                                                                                                                                                                                      ----          ----

    ASSETS

    Current Assets

    Cash and cash equivalents                                                                                                                                                                                       $1,501        $1,424

    Short-term investments                                                                                                                                                                                              44           333

    Receivables (net of allowance for doubtful accounts of

                                                                                                                                                           $30 at December 31, 2013 and $34 at December 31, 2012)    1,286         1,516

    Restricted receivables of variable interest entities (net of allowance for

                                                                               doubtful accounts of $43 at December 31, 2013 and $44 at December 31, 2012)                                                           1,719         1,201

    Inventory                                                                                                                                                                                                        3,250         3,223

    Regulatory assets                                                                                                                                                                                                  895           737

    Other                                                                                                                                                                                                            1,821         1,688

                                                                               Total current assets                                                                                                                 10,516        10,122
                                                                               --------------------                                                                                                                 ------        ------

    Investments and Other Assets

    Investments in equity method unconsolidated affiliates                                                                                                                                                             390           483

    Nuclear decommissioning trust funds                                                                                                                                                                              5,132         4,242

    Goodwill                                                                                                                                                                                                        16,340        16,365

    Other                                                                                                                                                                                                            3,539         2,904

                                                                               Total investments and other assets                                                                                                   25,401        23,994
                                                                               ----------------------------------                                                                                                   ------        ------

    Property, Plant and Equipment

    Cost                                                                                                                                                                                                           103,115       100,391

    Accumulated depreciation and amortization                                                                                                                                                                      (33,625)      (31,969)

    Generation facilities to be retired, net                                                                                                                                                                    -      136

                                                                               Net property, plant and equipment                                                                                                    69,490        68,558
                                                                               ---------------------------------                                                                                                    ------        ------

    Regulatory Assets and Deferred Debits

    Regulatory assets                                                                                                                                                                                                9,191        11,004

    Other                                                                                                                                                                                                              181           178

                                                                               Total regulatory assets and deferred debits                                                                                           9,372        11,182
                                                                               -------------------------------------------                                                                                           -----        ------

    Total Assets                                                                                                                                                                                                  $114,779      $113,856
    ------------                                                                                                                                                                                                  --------      --------

    LIABILITIES AND EQUITY

    Current Liabilities

    Accounts payable                                                                                                                                                                                                $2,391        $2,444

    Notes payable and commercial paper                                                                                                                                                                                 839         1,057

    Taxes accrued                                                                                                                                                                                                      551           459

    Interest accrued                                                                                                                                                                                                   440           448

    Current maturities of long-term debt                                                                                                                                                                             2,104         3,110

    Regulatory liabilities                                                                                                                                                                                             316           156

    Other                                                                                                                                                                                                            2,003         2,355

                                                                               Total current liabilities                                                                                                             8,644        10,029
                                                                               -------------------------                                                                                                             -----        ------

    Long-term Debt                                                                                                                                                                                                  38,152        36,351
    --------------                                                                                                                                                                                                  ------        ------

    Deferred Credits and Other Liabilities

    Deferred income taxes                                                                                                                                                                                           12,097        10,490

    Investment tax credits                                                                                                                                                                                             442           458

    Accrued pension and other post-retirement benefit costs                                                                                                                                                          1,322         2,520

    Asset retirement obligations                                                                                                                                                                                     4,950         5,169

    Regulatory liabilities                                                                                                                                                                                           5,949         5,584

    Other                                                                                                                                                                                                            1,815         2,221

                                                                               Total deferred credits and other liabilities                                                                                         26,575        26,442
                                                                               --------------------------------------------                                                                                         ------        ------

    Commitments and Contingencies

    Preferred Stock of Subsidiaries                                                                                                                                                                             -       93

    Equity

    Common stock, $0.001 par value, 2 billion shares authorized; 706 million

                                                                               and 704 million shares outstanding at December 31, 2013 and

                                                                               December 31, 2012, respectively                                                                                                           1             1

    Additional paid-in capital                                                                                                                                                                                      39,365        39,279

    Retained earnings                                                                                                                                                                                                2,363         1,889

    Accumulated other comprehensive loss                                                                                                                                                                              (399)         (306)
    ------------------------------------                                                                                                                                                                              ----          ----

                                                                               Total Duke Energy Corporation shareholders' equity                                                                                   41,330        40,863

    Noncontrolling interests                                                                                                                                                                                            78            78

                                                                               Total equity                                                                                                                         41,408        40,941
                                                                               ------------                                                                                                                         ------        ------

    Total Liabilities and Equity                                                                                                                                                                                  $114,779      $113,856
    ----------------------------                                                                                                                                                                                  --------      --------


                                              DUKE ENERGY CORPORATION

                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                    (Unaudited)

                                                   (In millions)

                                                                                                    Years Ended December
                                                                                                            31,
                                                                                                   --------------------

                                                                                                       2013               2012
                                                                                                       ----               ----

    CASH FLOWS FROM OPERATING ACTIVITIES

                                           Net
                                           income                                          $2,676             $1,782

                                           Adjustments to
                                           reconcile net
                                           income to net cash
                                           provided by

                                           operating
                                           activities:                                     3,692              3,462
                                          ------------                                     -----              -----

                                                              Net cash provided by
                                                              operating activities                    6,368              5,244
                                                             ---------------------                    -----              -----

    CASH FLOWS FROM INVESTING ACTIVITIES

                                                              Net cash used in investing
                                                              activities                             (4,964)            (6,197)
                                                             --------------------------              ------             ------

    CASH FLOWS FROM FINANCING ACTIVITIES

                                             Net cash
                                                              (used in)
                                                              provided by
                                                              financing
                                                              activities                  (1,327)                267
                                                             ------------                  ------                ---

                                           Net increase
                                           (decrease) in cash
                                           and cash
                                           equivalents                                        77               (686)

                                           Cash and cash
                                           equivalents at
                                           beginning of period                                 1,424              2,110
                                          --------------------                                 -----              -----

                                           Cash and cash
                                           equivalents at end
                                           of period                                      $1,501             $1,424
                                          -------------------                                ------             ------


                                                                                                                                                                     Regulated Utilities

                                                                                                                                                                     Quarterly Highlights

                                                                                                                                                         Supplemental Regulated Utilities Information

                                                                                                                                                                        December 2013

                                                                                                                                                                                                         Three Months Ended                                             Years Ended

                                                                                                                                                                                                          December 31,                                         December 31,
                                                                                                                                                                                                          ------------                                         ------------

                                                                                                                                                                                                                                             % Inc.(Dec.)                                                                % Inc.(Dec.)

                                                                                                                                                                                                                              %                 Weather                                                  %                  Weather

                                                                                                                                                                           2013                      2012                Inc. (Dec.)          Normal (2)       2013                 2012            Inc. (Dec.)           Normal (2)
                                                                                                                                                                           ----                      ----                ----------           ---------        ----                 ----            ----------            ---------

    GWH Sales (1)

                                    Residential                                                                                                                                        18,597                    17,551                 6.0%              0.7%             80,593           78,651                  2.5%              0.3%

                                    General Service                                                                                                                                    18,350                    17,695                 3.7%              1.2%             75,513           75,172                  0.5%              0.8%

                                    Industrial                                                                                                                                         12,590                    12,440                 1.2%              0.5%             51,056           50,819                  0.5%              0.9%

                                    Other Energy Sales                                                                                                                                    152                       151                 0.7%                -                 603              603                  0.0%                -

                                    Unbilled Sales                                                                                                                                         33                       346              (90.5%)              N/A                (275)             887              (131.0%)              N/A

                                       Total Retail Sales                                                                                                                              49,722                    48,183                 3.2%              0.9%            207,490          206,132                  0.7%              0.6%

                                    Special Sales (3)                                                                                                                                   8,486                     7,732                 9.8%                               34,750           29,984                 15.9%

                                       Total Consolidated Electric Sales - Regulated Utilities                                                                                         58,208                    55,915                 4.1%                              242,240          236,116                  2.6%

    Average Number of Customers

                                    Residential                                                                                                                                     6,246,247                 6,179,598                 1.1%                            6,217,351        6,165,623                  0.8%

                                    General Service                                                                                                                                   939,601                   931,847                 0.8%                              936,529          929,470                  0.8%

                                    Industrial                                                                                                                                         18,433                    18,759               (1.7%)                               18,572           18,867                (1.6%)

                                    Other Energy Sales                                                                                                                                 22,371                    22,106                 1.2%                               22,206           22,070                  0.6%

                                       Total Regular Sales                                                                                                                          7,226,652                 7,152,310                 1.0%                            7,194,658        7,136,030                  0.8%

                                    Special Sales                                                                                                                                          59                        64               (7.8%)                                   60               67               (10.4%)

                                       Total Average Number of Customers - Regulated Utilities                                                                                      7,226,711                 7,152,374                 1.0%                            7,194,718        7,136,097                  0.8%

    Heating and Cooling Degree Days

                                    Carolinas - Actual

                                    Heating Degree Days                                                                                                                                 1,214                     1,161                 4.6%                                3,282            2,601                 26.2%

                                    Cooling Degree Days                                                                                                                                    66                        42                57.1%                                1,403            1,727               (18.8%)

                                    Variance from Normal
                                    --------------------

                                    Heating Degree Days                                                                                                                                 (1.0%)                    (4.3%)                n/a                                   4.0%          (17.8%)                 n/a

                                    Cooling Degree Days                                                                                                                                  17.9%                   (28.5%)                n/a                                (16.1%)             2.4%                 n/a

                                    Midwest - Actual

                                    Heating Degree Days                                                                                                                                 1,571                     1,355                15.9%                                4,129            3,122                 32.3%

                                    Cooling Degree Days                                                                                                                                    25                         5               400.0%                                1,079            1,437               (24.9%)

                                    Variance from Normal
                                    --------------------

                                    Heating Degree Days                                                                                                                                  13.2%                    (2.2%)                n/a                                   9.1%          (18.0%)                 n/a

                                    Cooling Degree Days                                                                                                                                   8.7%                   (77.3%)                n/a                                 (8.0%)            26.0%                 n/a

                                    Florida - Actual

                                    Heating Degree Days                                                                                                                                    85                       156              (45.5%)                                  368              367                  0.3%

                                    Cooling Degree Days                                                                                                                                   564                       420                34.3%                                3,141            3,110                  1.0%

                                    Variance from Normal
                                    --------------------

                                    Heating Degree Days                                                                                                                                (49.7%)                    (7.3%)                n/a                                (21.3%)          (21.5%)                 n/a

                                    Cooling Degree Days                                                                                                                                  27.9%                    (4.8%)                n/a                                   4.7%             3.7%                 n/a

                                     (1) Except as indicated in footnote (2), 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.

                                    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                     (3) Fourth quarter 2013 and year-to-date 2013 include 100 GWH and 1,685 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results
                                     are excluded from the Regulated Utilities segment earnings. Fourth quarter 2012 and year-to-date 2012 include 103 GWH and 998 GWH of sales associated with the FERC mitigation
                                     contracts, for which the financial results are excluded from the Regulated Utilities segment earnings.


                                                                                                                                                                                Duke Energy Carolinas

                                                                                                                                                                                Quarterly Highlights

                                                                                                                                                                    Supplemental Regulated Utilities Information

                                                                                                                                                                                    December 2013

                                                                                                                                                                                                                Three Months Ended                                      Years Ended

                                                                                                                                                                                                                December 31,                                    December 31,
                                                                                                                                                                                                                ------------                                    ------------

                                                                                                                                                                                                                                                   % Inc.(Dec.)                                                                         % Inc.(Dec.)

                                                                                                                                                                                                                                      %               Weather                                                            %                 Weather

                                                                                                                                                                                   2013                      2012                Inc.(Dec.)         Normal (2)                      2013            2012            Inc.(Dec.)           Normal (2)
                                                                                                                                                                                   ----                      ----                ---------          ---------                       ----            ----            ---------            ---------

    GWH Sales (1)

                                    Residential                                                                                                                                                 6,021                     5,745               4.8%                                          26,895          26,279                 2.3%

                                    General Service                                                                                                                                             6,649                     6,419               3.6%                                          27,764          27,476                 1.0%

                                    Industrial                                                                                                                                                  5,204                     5,079               2.5%                                          21,070          20,978                 0.4%

                                    Other Energy Sales                                                                                                                                             74                        73               1.4%                                             293             290                 1.0%

                                    Unbilled Sales                                                                                                                                                358                       242              47.9%                                            (154)            209             (173.7%)

                                       Total Regular Electric Sales                                                                                                                            18,306                    17,558               4.3%                        2.7%              75,868          75,232                 0.8%              1.1%

                                    Special Sales (3)                                                                                                                                           2,101                     1,666              26.1%                                           9,922           6,130                61.9%

                                       Total Consolidated Electric Sales - Duke Energy Carolinas                                                                                               20,407                    19,224               6.2%                                          85,790          81,362                 5.4%

    Average Number of Customers

                                    Residential                                                                                                                                             2,076,363                 2,056,785               1.0%                                       2,068,329       2,052,799                 0.8%

                                    General Service                                                                                                                                           340,283                   337,316               0.9%                                         339,109         336,756                 0.7%

                                    Industrial                                                                                                                                                  6,551                     6,679             (1.9%)                                           6,600           6,749               (2.2%)

                                    Other Energy Sales                                                                                                                                         14,480                    14,363               0.8%                                          14,403          14,342                 0.4%

                                       Total Regular Sales                                                                                                                                  2,437,677                 2,415,143               0.9%                                       2,428,441       2,410,646                 0.7%

                                    Special Sales                                                                                                                                                  22                        21               4.8%                                              23              23                 0.0%

                                    Total Average Number of Customers - Duke Energy Carolinas                                                                                               2,437,699                 2,415,164               0.9%                                       2,428,464       2,410,669                 0.7%

    Heating and Cooling Degree Days

                                    Actual

                                    Heating Degree Days                                                                                                                                         1,260                     1,206               4.5%                                           3,378           2,694                25.4%

                                    Cooling Degree Days                                                                                                                                            51                        24             112.5%                                           1,305           1,568              (16.8%)

                                    Variance from Normal

                                    Heating Degree Days                                                                                                                                           0.2%                    (3.5%)              n/a                                              4.6%         (16.5%)                n/a

                                    Cooling Degree Days                                                                                                                                          18.9%                   (44.7%)              n/a                                           (18.0%)            1.3%                n/a

                                     (1) Except as indicated in footnote (2), 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.

                                    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

                                     (3) Fourth quarter 2013 and year-to-date 2013 include 100 GWH and 781 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are
                                     excluded from the Regulated Utility segment earnings. Fourth quarter 2012 and year-to-date 2012 include 103 GWH and 421 GWH of sales associated with the FERC mitigation contracts,
                                     for which the financial results are excluded from the Regulated Utility segment earnings.


                                                                                                                                                                                Duke Energy Progress

                                                                                                                                                                                Quarterly Highlights

                                                                                                                                                                    Supplemental Regulated Utilities Information

                                                                                                                                                                                   December 2013

                                                                                                                                                                                                   Three Months Ended                                                            Years Ended

                                                                                                                                                                                                               December 31,                                                             December 31,
                                                                                                                                                                                                               ------------                                                             ------------

                                                                                                                                                                                                                                                        % Inc.(Dec.)                                                                                                               % Inc.(Dec.)

                                                                                                                                                                                                                                     %                     Weather                                                                                              %                     Weather

                                                                                                                                                                                  2013                      2012                Inc.(Dec.)               Normal (2)                                          2013                      2012                Inc.(Dec.)               Normal (2)
                                                                                                                                                                                  ----                      ----                ---------                ---------                                           ----                      ----                ---------                 ---------

    GWH Sales

                                     Residential                                                                                                                                               3,948                     3,748                     5.3%                                                                  17,323                    16,663                     4.0%

                                     General Service                                                                                                                                           3,628                     3,497                     3.7%                                                                  15,066                    15,062                     0.0%

                                     Industrial                                                                                                                                                2,538                     2,624                   (3.3%)                                                                  10,624                    10,508                     1.1%

                                     Other Energy Sales                                                                                                                                           30                        31                   (3.2%)                                                                     120                       122                   (1.6%)

                                     Unbilled Sales                                                                                                                                               93                       372                  (75.0%)                                                                     (12)                      165                   107.3%

                                        Total Regular Electric Sales                                                                                                                          10,237                    10,272                   (0.3%)                                         (0.7%)                   43,121                    42,520                     1.4%              1.0%

                                     Special Sales (1)                                                                                                                                         4,206                     4,153                     1.3%                                                                  17,083                    15,870                     7.6%

                                        Total Consolidated Electric Sales - Duke Energy Progress                                                                                              14,443                    14,425                     0.1%                                                                  60,204                    58,390                     3.1%

    Average Number of Customers

                                     Residential                                                                                                                                           1,247,807                 1,234,321                     1.1%                                                               1,242,328                 1,231,065                     0.9%

                                     General Service                                                                                                                                         222,146                   220,156                     0.9%                                                                 221,553                   219,477                     0.9%

                                     Industrial                                                                                                                                                4,318                     4,420                   (2.3%)                                                                   4,357                     4,431                   (1.7%)

                                     Other Energy Sales                                                                                                                                        1,778                     1,811                   (1.8%)                                                                   1,801                     1,836                   (1.9%)

                                        Total Regular Sales                                                                                                                                1,476,049                 1,460,708                     1.1%                                                               1,470,039                 1,456,809                     0.9%

                                     Special Sales                                                                                                                                                15                        15                     0.0%                                                                      15                        18                  (16.7%)

                                     Total Average Number of Customers - Duke Energy Progress                                                                                              1,476,064                 1,460,723                     1.1%                                                               1,470,054                 1,456,827                     0.9%

    Heating and Cooling Degree Days

                                     Actual

                                     Heating Degree Days                                                                                                                                       1,169                     1,116                     4.7%                                                                   3,187                     2,508                    27.1%

                                     Cooling Degree Days                                                                                                                                          81                        60                    35.0%                                                                   1,502                     1,887                  (20.4%)

                                     Variance from Normal

                                     Heating Degree Days                                                                                                                                       (2.2%)                    (5.0%)                    n/a                                                                      3.3%                   (19.1%)                    n/a

                                     Cooling Degree Days                                                                                                                                        17.4%                   (18.9%)                    n/a                                                                   (14.3%)                      3.3%                    n/a

    (1) Except as indicated in footnote (2), 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.

    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

    (3) Year-to-date 2013 includes 904 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings. Year-to-date 2012 includes 577 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Regulated Utility segment earnings.


                                                                                                                                                                                 Duke Energy Florida

                                                                                                                                                                                Quarterly Highlights

                                                                                                                                                                    Supplemental Regulated Utilities Information

                                                                                                                                                                                    December 2013

                                                                                                                                                                                                                 Three Months Ended                                        Years Ended

                                                                                                                                                                                                                 December 31,                                     December 31,
                                                                                                                                                                                                                 ------------                                     ------------

                                                                                                                                                                                                                                                     % Inc.(Dec.)                                                                          % Inc.(Dec.)

                                                                                                                                                                                                                                       %                Weather                                                             %                 Weather

                                                                                                                                                                                    2013                      2012                Inc.(Dec.)          Normal (2)                       2013            2012            Inc.(Dec.)           Normal (2)
                                                                                                                                                                                    ----                      ----                ---------           ---------                        ----            ----            ---------            ---------

    GWH Sales (1)

                                            Residential                                                                                                                                          4,560                     4,309                5.8%                                           18,508          18,251                 1.4%

                                            General Service                                                                                                                                      3,767                     3,661                2.9%                                           14,877          14,945               (0.5%)

                                            Industrial                                                                                                                                             797                       776                2.7%                                            3,206           3,160                 1.5%

                                            Other Energy Sales                                                                                                                                       7                         6               16.7%                                               25              25                 0.0%

                                            Unbilled Sales                                                                                                                                        (644)                     (506)              27.3%                                             (161)            299             (153.8%)

                                               Total Regular Sales                                                                                                                               8,487                     8,246                2.9%                       (0.1%)              36,455          36,680               (0.6%)              (0.8%)

                                            Special Sales (3)                                                                                                                                      355                       383              (7.3%)                                            1,519           1,763              (13.8%)

                                               Total Electric Sales - Duke Energy Florida                                                                                                        8,842                     8,629                2.5%                                           37,974          38,443               (1.2%)

    Average Number of Customers

                                            Residential                                                                                                                                      1,491,494                 1,467,235                1.7%                                        1,480,993       1,464,154                 1.2%

                                            General Service                                                                                                                                    190,531                   188,266                1.2%                                          189,424         187,445                 1.1%

                                            Industrial                                                                                                                                           2,318                     2,366              (2.0%)                                            2,342           2,371                -1.2%

                                            Other Energy Sales                                                                                                                                   1,559                     1,575              (1.0%)                                            1,564           1,561                 0.2%

                                               Total Regular Sales                                                                                                                           1,685,902                 1,659,442                1.6%                                        1,674,323       1,655,531                 1.1%

                                            Special Sales                                                                                                                                           15                        18             (16.7%)                                               15              15                 0.0%

                                            Total Average Number of Customers - Duke Energy Florida                                                                                          1,685,917                 1,659,460                1.6%                                        1,674,338       1,655,546                 1.1%

    Heating and Cooling Degree Days

                                            Actual

                                            Heating Degree Days                                                                                                                                     85                       156             (45.5%)                                              368             367                 0.3%

                                            Cooling Degree Days                                                                                                                                    564                       420               34.3%                                            3,141           3,110                 1.0%

                                            Variance from Normal

                                            Heating Degree Days                                                                                                                                 (49.7%)                    (7.3%)               n/a                                            (21.3%)         (21.5%)                n/a

                                            Cooling Degree Days                                                                                                                                   27.9%                    (4.8%)               n/a                                               4.7%            3.7%                n/a

    (1) Except as indicated in footnote (2), 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.

    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

    (3) Includes both billed and unbilled.


                                                                                                                                                                                  Duke Energy Ohio

                                                                                                                                                                                Quarterly Highlights

                                                                                                                                                                    Supplemental Regulated Utilities Information

                                                                                                                                                                                    December 2013

                                                                                                                                                                                                                Three Months Ended                                 Years Ended

                                                                                                                                                                                                                   December 31,                                    December 31,
                                                                                                                                                                                                                   ------------                                    ------------

                                                                                                                                                                                                                                                     % Inc. (Dec.)                                                                 % Inc. (Dec.)

                                                                                                                                                                                                                                       %                 Weather                                                   %                   Weather

                                                                                                                                                                                        2013                   2012               Inc.(Dec.)           Normal (2)                  2013          2012          Inc.(Dec.)            Normal (2)
                                                                                                                                                                                        ----                   ----               ---------            ---------                   ----          ----          ---------             ---------

    GWH Sales (1)

                                    Residential                                                                                                                                                    1,958                   1,821                7.5%                                      8,719         8,591                 1.5%

                                    General Service                                                                                                                                                2,281                   2,187                4.3%                                      9,447         9,375                 0.8%

                                    Industrial                                                                                                                                                     1,455                   1,421                2.4%                                      5,771         5,761                 0.2%

                                    Other Energy Sales                                                                                                                                                28                      28                0.0%                                        112           113               (0.9%)

                                    Unbilled Sales                                                                                                                                                    76                      98             (22.4%)                                         (6)           79             (107.6%)

                                       Total Regular Electric Sales                                                                                                                                5,798                   5,555                4.4%                          0.4%       24,043        23,919                 0.5%               0.5%

                                    Special Sales                                                                                                                                                    192                     189                1.6%                                        514           425                20.9%

                                       Total Electric Sales - Duke Energy Ohio                                                                                                                     5,990                   5,744                4.3%                                     24,557        24,344                 0.9%

    Average Number of Customers

                                    Residential                                                                                                                                                  739,369                 735,557                0.5%                                    737,399       734,270                 0.4%

                                    General Service                                                                                                                                               86,327                  85,938                0.5%                                     86,188        85,672                 0.6%

                                    Industrial                                                                                                                                                     2,531                   2,571              (1.6%)                                      2,547         2,582               (1.4%)

                                    Other Energy                                                                                                                                                   3,066                   2,916                5.1%                                      2,965         2,898                 2.3%

                                       Total Regular Sales                                                                                                                                       831,293                 826,982                0.5%                                    829,099       825,422                 0.4%

                                    Special Sales                                                                                                                                                      1                       1                0.0%                                          1             1                 0.0%

                                    Total Average Number of Electric Customers - Duke Energy Ohio                                                                                                831,294                 826,983                0.5%                                    829,100       825,423                 0.4%

    Heating and Cooling Degree Days

                                    Actual

                                    Heating Degree Days                                                                                                                                            1,441                   1,284               12.2%                                      3,843         3,002                28.0%

                                    Cooling Degree Days                                                                                                                                               25                       5              400.0%                                      1,073         1,389              (22.8%)

                                    Variance from Normal

                                    Heating Degree Days                                                                                                                                              7.9%                  (3.7%)               n/a                                         5.7%       (17.9%)                n/a

                                    Cooling Degree Days                                                                                                                                             13.6%                 (77.3%)               n/a                                       (8.7%)         21.2%                n/a

                                     (1) Except as indicated in footnote (2), 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.

                                    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).


                                                                                                                                                                                    Duke Energy Ohio

                                                                                                                                                                                  Quarterly Highlights

                                                                                                                                                                      Supplemental Regulated Utilities Information

                                                                                                                                                                                      December 2013

                                                                                                                                                                                                             Three Months Ended                                  Years Ended

                                                                                                                                                                                                                December 31,                                     December 31,
                                                                                                                                                                                                                ------------                                     ------------

                                                                                                                                                                                                                                                   % Inc. (Dec.)                                                                     % Inc. (Dec.)

                                                                                                                                                                                                                                     %                 Weather                                                         %                 Weather

                                                                                                                                                                                  2013                      2012                 Inc.(Dec.)          Normal (2)                 2013             2012             Inc.(Dec.)           Normal (2)
                                                                                                                                                                                  ----                      ----                 ---------           ---------                  ----             ----             ---------            ---------

    MCF Sales (1)

                                    Residential                                                                                                                                             9,359,700                 8,316,121              12.5%                                   37,840,736       30,481,386               24.1%

                                    General Service                                                                                                                                         5,873,264                 5,354,180               9.7%                                   23,329,465       19,365,863               20.5%

                                    Industrial                                                                                                                                              1,677,360                 1,397,562              20.0%                                    6,311,201        5,125,512               23.1%

                                    Other Energy Sales                                                                                                                                      5,897,994                 5,552,991               6.2%                                   21,496,630       21,744,410              (1.1%)

                                    Unbilled Sales                                                                                                                                          4,864,000                 4,611,000               5.5%                                      136,000          970,000             (86.0%)

                                       Total Gas Sales - Duke Energy Ohio                                                                                                                  27,672,318                25,231,854               9.7%                         0.2%      89,114,032       77,687,171               14.7%               1.4%

    Average Number of Customers

                                    Residential                                                                                                                                               471,390                   468,878               0.5%                                      469,887          468,572                0.3%

                                    General Service                                                                                                                                            43,502                    43,691             (0.4%)                                       43,351           43,517              (0.4%)

                                    Industrial                                                                                                                                                  1,643                     1,658             (0.9%)                                        1,635            1,659              (1.4%)

                                    Other Energy                                                                                                                                                  162                       167             (3.0%)                                          165              170              (2.9%)

                                    Total Average Number of Gas Customers - Duke Energy Ohio                                                                                                  516,697                   514,394               0.4%                                      515,038          513,918                0.2%

    Heating and Cooling Degree Days

                                    Actual

                                    Heating Degree Days                                                                                                                                         1,441                     1,284              12.2%                                        3,843            3,002               28.0%

                                    Cooling Degree Days                                                                                                                                            25                         5             400.0%                                        1,073            1,389             (22.8%)

                                    Variance from Normal

                                    Heating Degree Days                                                                                                                                           7.9%                    (3.7%)              n/a                                           5.7%          (17.9%)               n/a

                                    Cooling Degree Days                                                                                                                                          13.6%                   (77.3%)              n/a                                          -8.7%            21.2%               n/a

                                     (1) Except as indicated in footnote (2), 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.

                                    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).


                                                                                                                                                                                    Duke Energy Indiana

                                                                                                                                                                                   Quarterly Highlights

                                                                                                                                                                       Supplemental Regulated Utilities Information

                                                                                                                                                                                       December 2013

                                                                                                                                                                                                                      Three Months Ended                                 Years Ended

                                                                                                                                                                                                                         December 31,                                    December 31,
                                                                                                                                                                                                                         ------------                                    ------------

                                                                                                                                                                                                                                                           % Inc. (Dec.)                                                                % Inc. (Dec.)

                                                                                                                                                                                                                                             %                 Weather                                                    %                 Weather

                                                                                                                                                                                             2013                    2012               Inc.(Dec.)           Normal (2)                  2013          2012          Inc.(Dec.)           Normal (2)
                                                                                                                                                                                             ----                    ----               ---------            ---------                   ----          ----          ---------            ---------

    GWH Sales (1)

                                    Residential                                                                                                                                                         2,110                    1,928                9.4%                                      9,148         8,867                3.2%

                                    General Service                                                                                                                                                     2,025                    1,931                4.9%                                      8,359         8,314                0.5%

                                    Industrial                                                                                                                                                          2,596                    2,540                2.2%                                     10,385        10,412              (0.3%)

                                    Other Energy Sales                                                                                                                                                     13                       13                0.0%                                         53            53                0.0%

                                    Unbilled Sales                                                                                                                                                        150                      140                7.1%                                         58           135             (57.0%)

                                       Total Regular Electric Sales                                                                                                                                     6,894                    6,552                5.2%                          0.0%       28,003        27,781                0.8%               0.4%

                                    Special Sales                                                                                                                                                       1,632                    1,341               21.7%                                      5,712         5,796              (1.4%)

                                       Total Electric Sales - Duke Energy Indiana                                                                                                                       8,526                    7,893                8.0%                                     33,715        33,577                0.4%

    Average Number of Customers

                                    Residential                                                                                                                                                       691,214                  685,700                0.8%                                    688,302       683,335                0.7%

                                    General Service                                                                                                                                                   100,314                  100,171                0.1%                                    100,255       100,120                0.1%

                                    Industrial                                                                                                                                                          2,715                    2,723              (0.3%)                                      2,726         2,734              (0.3%)

                                    Other Energy                                                                                                                                                        1,488                    1,441                3.3%                                      1,473         1,433                2.8%

                                       Total Regular Sales                                                                                                                                            795,731                  790,035                0.7%                                    792,756       787,622                0.7%

                                    Special Sales                                                                                                                                                           6                        9             (33.3%)                                          6            10             (40.0%)

                                    Total Average Number of Electric Customers - Duke Energy Indiana                                                                                                  795,737                  790,044                0.7%                                    792,762       787,632                0.7%

    Heating and Cooling Degree Days

                                    Actual

                                    Heating Degree Days                                                                                                                                                 1,702                    1,426               19.4%                                      4,415         3,242               36.2%

                                    Cooling Degree Days                                                                                                                                                    25                        5              400.0%                                      1,084         1,483             (26.9%)

                                    Variance from Normal

                                    Heating Degree Days                                                                                                                                                  18.2%                   (1.0%)               n/a                                        12.3%       (18.1%)               n/a

                                    Cooling Degree Days                                                                                                                                                   4.2%                  (78.3%)               n/a                                       (7.4%)         30.8%               n/a

                                     (1) Except as indicated in footnote (2), 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.

                                    (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).

SOURCE Duke Energy


Source: PR Newswire



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