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Duke Energy reports strong first quarter 2014 adjusted earnings

May 7, 2014

– First quarter 2014 adjusted diluted earnings per share (EPS) were $1.17, compared to $1.02 for the first quarter 2013

CHARLOTTE, N.C., May 7, 2014 /PRNewswire/ — Duke Energy (NYSE: DUK) today announced first quarter 2014 adjusted diluted EPS of $1.17, compared to $1.02 for first quarter 2013, and a reported diluted net loss per share of 14 cents, compared to reported diluted EPS of 89 cents for the same period last year.

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Higher adjusted diluted EPS results for the quarter were led by the company’s largest business unit, Regulated Utilities, which benefitted from revised customer rates and strong weather-normalized retail volumes. International Energy also experienced stronger results in Latin America despite unfavorable foreign currency exchange rates.

Reported results for the quarter were affected by a pre-tax impairment charge of $1.4 billion, or $1.23 per share, to write-down the company’s Midwest Generation business to its estimated fair value. In February 2014, the company announced it had initiated a process to exit this business. This impairment is a special item that has been excluded from the company’s adjusted diluted EPS results.

Based upon results through the first quarter, the company is on track to achieve its 2014 adjusted earnings guidance range of $4.45 to $4.60 per share.

“I am proud of the way our team responded to challenging events in the first quarter -the severe winter weather and the Dan River coal ash release,” said Lynn Good, president and CEO. “Our employees demonstrated great discipline and resolve in meeting customer needs and our financial commitments during the quarter.

“For the third consecutive quarter, we experienced improved economic growth throughout our service territories,” she added. “We remain on track with our strategic initiatives to maximize value from our commercial businesses and to develop investment opportunities that underpin our financial objectives.”

Business Unit Results

The discussion below of first-quarter results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 21 and 22 present a reconciliation of reported results to adjusted results.

Regulated Utilities

Regulated Utilities recognized first quarter 2014 adjusted segment income of $737 million, compared to $656 million in the first quarter 2013, an increase of $0.11 per share.

Increased quarterly results at Regulated Utilities were primarily driven by:

    --  Higher revenues from increased pricing and riders (+$0.12 per share)
        primarily related to the implementation of revised customer rates
    --  Favorable weather (+$0.08 per share), driven by the extreme cold winter
        temperatures across Duke Energy's service territories
    --  Higher weather-normal retail volumes (+$0.06 per share) of 2.6 percent
        compared to 2013, principally within the residential and commercial
        customer classes
    --  Increased wholesale net margins (+$0.03 per share) primarily resulting
        from growth in contracted amounts as well as favorable weather

These favorable drivers were partially offset by:

    --  Higher depreciation and amortization expense (-$0.07 per share),
        including the impact of prior-year cost of removal amortization in
        Florida
    --  Increased operating and maintenance expenses (-$0.05 per share) due to
        higher storm restoration costs (-$0.07 per share); excluding these storm
        costs, operating and maintenance expenses were lower primarily resulting
        from the company's ongoing cost management efforts and nuclear outage
        cost levelization in the Carolinas
    --  Higher interest expense (-$0.03 per share), due to lower post-in-service
        debt returns on projects now reflected in customer rates
    --  Lower AFUDC equity (-$0.02 per share), driven by the completion of
        capital projects

International Energy

International Energy recognized first quarter 2014 adjusted segment income of $130 million, compared to $97 million in the first quarter 2013, an increase of $0.04 per share.

International Energy’s improved quarterly earnings were driven by stronger results in Latin America (+$0.06 per share), primarily due to higher spot volumes and pricing in Brazil. This driver was partially offset by unfavorable foreign currency exchange rates (-$0.02 per share).

Commercial Power

Commercial Power recognized first quarter 2014 adjusted segment income of $10 million, compared to a segment income of $6 million in the first quarter 2013.

Higher earnings from the renewables business (+$0.01 per share), driven by favorable wind production and lower costs, were partially offset by lower earnings from the company’s competitive retail business, Duke Energy Retail (-$0.01).

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 first quarter 2014 adjusted net expense of $48 million, compared to $43 million in the first quarter 2013.

Earnings Conference Call for Analysts

An earnings conference call for analysts will be held at 10 a.m. ET today to discuss Duke Energy’s financial performance for the first quarter 2014 as well as providing other business 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 888-438-5449 in the United States or 719-325-2475 outside the United States. The confirmation code is 5210970. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, May 17, 2014, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 5210970. 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 first quarter 2014 and first quarter 2013 include:


                                               (In millions, except per-share amounts) Pre-Tax     Tax  1Q2014  1Q2013
                                                                                        Amount  Effect     EPS     EPS
                                                                                                                Impact
                                                                                                        Impact
    ---                                                                                                 ------

    First Quarter 2014
    ------------------

    - Midwest Generation Impairment                                                    $(1,381)   $514  $(1.23)
    -------------------------------                                                    -------    ----  ------

    - Costs to Achieve, Progress Energy Merger                                            $(55)    $21  $(0.04)
    ------------------------------------------                                            ----     ---  ------

    - Economic Hedges (Mark-to-Market)                                                    $(34)    $12  $(0.03)
    ---------------------------------                                                     ----     ---  ------

    - Discontinued Operations                                                              $(1)    $(2) $(0.01)
    -------------------------                                                              ---     ---  ------

    First Quarter 2013
    ------------------

    - Costs to Achieve, Progress Energy Merger                                            $(55)    $21          $(0.05)
    ------------------------------------------                                            ----     ---          ------

    - Economic Hedges (Mark-to-Market)                                                    $(75)    $27          $(0.08)
    ---------------------------------                                                     ----     ---          ------

    Total diluted EPS impact                                                                            $(1.31) $(0.13)
    ------------------------                                                                            ------  ------

Reconciliation of reported to adjusted diluted EPS for the quarters:


                                                                        1Q2014  1Q2013

                                                                           EPS     EPS
                                                                           ---     ---

    Diluted EPS, as reported                                            ($0.14)  $0.89
    ------------------------                                            ------   -----

    Adjustments to reported EPS:

    - Diluted EPS impact of special items, mark-to-market in Commercial  $1.31   $0.13
      Power, and discontinued operations (net of tax)
      ----------------------------------------------

    Diluted EPS, adjusted                                                $1.17   $1.02
    ---------------------                                                -----   -----

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 any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure 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 extent and timing of the costs and liabilities relating to the Dan River ash basin release and future regulatory changes related to the management of coal ash; 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.




                                                                   DUKE ENERGY CORPORATION

                                                                      EARNINGS VARIANCES

                                                                March 2014 YTD vs. Prior Year

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

    2013 YTD Reported Earnings Per Share, Diluted                             $0.93                    $0.14             $(0.07)      $(0.11)               $0.89
                                                                              -----                    -----             ------        -----                -----

    Costs to Achieve, Progress Merger                                             -                        -                  -         0.05                 0.05

    Economic Hedges (Mark-to-Market)                                              -                        -               0.08            -                 0.08

    2013 YTD Adjusted Earnings Per Share, Diluted                             $0.93                    $0.14              $0.01       $(0.06)               $1.02
                                                                              -----                    -----              -----        -----                -----

    Weather                                                                    0.08                        -                  -            -                 0.08

    Pricing and Riders (a)                                                     0.12                        -                  -            -                 0.12

    Volume                                                                     0.06                        -                  -            -                 0.06

    Operation and Maintenance, net of recoverables (b)                        (0.05)                       -                  -            -                (0.05)

    Latin America, including Foreign Exchange Rates (c)                           -                     0.04                  -            -                 0.04

    Midwest Coal Generation (d)                                                   -                        -              (0.01)           -                (0.01)

    Midwest Gas Generation (e)                                                    -                        -               0.01            -                 0.01

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

    Interest Expense                                                          (0.03)                       -                  -        (0.01)               (0.04)

    Change in effective income tax rate                                           -                        -                  -         0.01                 0.01

    Other (f)(g)                                                              (0.07)                       -               0.01            -                (0.06)

    2014 YTD Adjusted Earnings Per Share, Diluted                             $1.04                    $0.18              $0.01       $(0.06)               $1.17
                                                                              -----                    -----              -----        -----                -----

    Midwest Generation Impairment                                                 -                        -              (1.23)           -                (1.23)

    Costs to Achieve, Progress Merger                                             -                        -                  -        (0.04)               (0.04)

    Economic Hedges (Mark-to-Market)                                              -                        -              (0.03)           -                (0.03)

    Discontinued Operations                                                                                                                                 (0.01)

    2014 YTD Reported Earnings Per Share, Diluted                             $1.04                    $0.18             $(1.25)      $(0.10)              $(0.14)
                                                                              -----                    -----             ------        -----               ------

         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 (+$0.06), the
          June 2013 implementation of revised base rates for Duke Energy Progress (+$0.03), the May 2013 implementation of
          revised distribution rates for Duke Energy Ohio (+$0.01), and increased recovery under the IGCC rider, net of
          AFUDC, for Duke Energy Indiana (+$0.01).

     (b)  Primarily driven by storm costs in the Carolinas, the 2013 deferral of Crystal River Unit 3 costs, and clean up
          costs related to the Dan River coal ash spill. These drivers are partially offset by the impact of nuclear
          outage cost levelization and lower nuclear generation operating expenses.

     (c)  Primarily driven by stronger results in Latin America (+$0.06) primarily due to higher spot volumes and pricing
          in Brazil, offset by unfavorable foreign exchange rates (-$0.02).

     (d)  Primarily due to lower energy margins (-$0.01) due to lower realized power prices (including hedge settlements)
          and higher fuel costs, partially offset by higher volumes.

     (e)  Primarily due to increased generation margins (+$0.01) due to higher realized power prices (including hedge
          settlements) and lower fuel costs, partially offset by lower volumes.

     (f)  Amount for Regulated Utilities includes an increase in depreciation and amortization expense (-$0.07) due to the
          2013 reduction in the cost of removal component of amortization expense for Duke Energy Florida, lower AFUDC-
          equity (-$0.02), and higher non-income taxes (-$0.01), partially offset by higher wholesale margins (+$0.03).

     (g) Amount for Commercial Power includes favorable results of the renewables portfolio (+$0.01).


                                                                                                                                           March 2014

                                                                                                                                      QUARTERLY HIGHLIGHTS

                                                                                                                                           (Unaudited)

                                                                                                                                                                                                    Three Months Ended

                                                                                                                                                                                                        March 31,
                                                                                                                                                                                                        ---------

    (In millions, except per-share amounts and where noted)                                                                                                                                                              2014       2013
    ------------------------------------------------------                                                                                                                                                               ----       ----

    COMMON STOCK DATA

    (Loss) Income from continuing operations attributable to Duke Energy Corporation common shareholders

        Basic                                                                                                                                                                                                          $(0.13)     $0.89

        Diluted                                                                                                                                                                                                        $(0.13)     $0.89

    Loss from discontinued operations attributable to Duke Energy Corporation common shareholders

        Basic                                                                                                                                                                                                          $(0.01) $       -

        Diluted                                                                                                                                                                                                        $(0.01) $       -

    Net (loss) income attributable to Duke Energy Corporation common shareholders

        Basic                                                                                                                                                                                                          $(0.14)     $0.89

        Diluted                                                                                                                                                                                                        $(0.14)     $0.89

      Dividends Declared Per Share                                                                                                                                                                                      $0.78     $0.765

      Weighted-Average Shares Outstanding

        Basic                                                                                                                                                                                                             706        705

        Diluted                                                                                                                                                                                                           706        705

    SEGMENT INCOME BY BUSINESS SEGMENT

    Regulated Utilities                                                                                                                                                                                                  $737       $656

    International Energy                                                                                                                                                                                                  130         97

    Commercial Power(a)                                                                                                                                                                                                  (879)       (42)
                                                                                                                                                                                                                         ----        ---

    Total Reportable Segment Income                                                                                                                                                                                       (12)       711

    Other Net Expense                                                                                                                                                                                                     (82)       (77)

    Loss from Discontinued Operations, net of tax                                                                                                                                                                          (3)         -
                                                                                                                                                                                                                          ---        ---

    Net (Loss) Income Attributable to Duke Energy Corporation                                                                                                                                                            $(97)      $634
                                                                                                                                                                                                                         ----       ----

    CAPITALIZATION

    Total Common Equity                                                                                                                                                                                                    48%        50%

    Total Debt                                                                                                                                                                                                             52%        50%

    Total Debt                                                                                                                                                                                                        $41,622    $41,350

    Book Value Per Share                                                                                                                                                                                               $57.64     $58.14

    Actual Shares Outstanding                                                                                                                                                                                             707        706

    CAPITAL AND INVESTMENT EXPENDITURES

    Regulated Utilities                                                                                                                                                                                                $1,130     $1,309

    International Energy                                                                                                                                                                                                    9         12

    Commercial Power                                                                                                                                                                                                       68         25

    Other                                                                                                                                                                                                                  61         64
                                                                                                                                                                                                                          ---        ---

    Total Capital and Investment Expenditures                                                                                                                                                                          $1,268     $1,410
                                                                                                                                                                                                                       ------     ------

    (a) Includes an impairment charge related to the planned disposition of the Midwest Generation business of $867 million for the three months ended March 31, 2014 (net of tax of $514 million).


                                                                                                              March 2014

                                                                                                         QUARTERLY HIGHLIGHTS

                                                                                                             (Unaudited)

                                                                                                                                              Three Months Ended

                                                                                                                                                  March 31,
                                                                                                                                                  ---------

    (In millions, except where noted)                                                                                                                                     2014       2013
    --------------------------------                                                                                                                                      ----       ----

    REGULATED UTILITIES

      Operating Revenues                                                                                                                                                $5,805     $5,060

      Operating Expenses                                                                                                                                                 4,427      3,840

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

      Operating Income                                                                                                                                                   1,379      1,222

      Other Income and Expenses                                                                                                                                             69         61

      Interest Expense                                                                                                                                                     270        236
                                                                                                                                                                           ---        ---

      Income Before Income Taxes                                                                                                                                         1,178      1,047

      Income Tax Expense                                                                                                                                                   441        391

      Segment Income                                                                                                                                                      $737       $656
                                                                                                                                                                          ----       ----

      Depreciation and Amortization                                                                                                                                       $677       $536

      Duke Energy Carolinas GWh sales                                                                                                                                   23,693     22,246

      Duke Energy Progress GWh sales                                                                                                                                    16,161     14,701

      Duke Energy Florida's GWh sales                                                                                                                                    8,661      8,017

      Duke Energy Ohio GWh sales                                                                                                                                         6,479      6,178

      Duke Energy Indiana GWh sales                                                                                                                                      8,874      8,505
                                                                                                                                                                         -----      -----

      Total GWh sales                                                                                                                                                   63,868     59,647
                                                                                                                                                                        ------     ------

      Net Proportional MW Capacity in Operation                                                                                                                         49,595     49,641

    INTERNATIONAL ENERGY

      Operating Revenues                                                                                                                                                  $382       $392

      Operating Expenses                                                                                                                                                   231        263

      Operating Income                                                                                                                                                     151        129

      Other Income and Expenses                                                                                                                                             57         33

      Interest Expense                                                                                                                                                      23         21
                                                                                                                                                                           ---        ---

      Income Before Income Taxes                                                                                                                                           185        141

      Income Tax Expense                                                                                                                                                    51         42

      Less: Income Attributable to Noncontrolling Interests                                                                                                                  4          2
                                                                                                                                                                           ---        ---

      Segment Income                                                                                                                                                      $130        $97
                                                                                                                                                                          ----        ---

      Depreciation and Amortization                                                                                                                                        $23        $26

      Sales, GWh                                                                                                                                                         5,241      4,756

      Proportional MW Capacity in Operation                                                                                                                              4,600      4,584

    COMMERCIAL POWER

      Operating Revenues                                                                                                                                                  $449       $452

      Operating Expenses(a)                                                                                                                                              1,862        533
                                                                                                                                                                         -----        ---

      Operating Loss                                                                                                                                                    (1,413)       (81)

      Other Income and Expenses                                                                                                                                              5         11

      Interest Expense                                                                                                                                                      15         15
                                                                                                                                                                           ---        ---

      Loss Before Income Taxes                                                                                                                                          (1,423)       (85)

      Income Tax Benefit(b)                                                                                                                                               (544)       (43)
                                                                                                                                                                          ----        ---

      Segment Loss                                                                                                                                                       $(879)      $(42)
                                                                                                                                                                         -----       ----

      Depreciation and Amortization                                                                                                                                        $61        $63

      Actual Coal-fired Plant Production, GWh                                                                                                                            4,711      4,549

      Actual Gas-fired Plant Production, GWh                                                                                                                             3,792      3,897

      Actual Renewable Plant Production, GWh                                                                                                                             1,589      1,405
                                                                                                                                                                         -----

      Actual Plant Production, GWh                                                                                                                                      10,092      9,851
                                                                                                                                                                        ------      -----

      Net Proportional MW Capacity in Operation                                                                                                                          7,770      8,094

    OTHER

      Operating Revenues                                                                                                                                                   $25        $35

      Operating Expenses                                                                                                                                                    84         90
                                                                                                                                                                           ---        ---

      Operating Loss                                                                                                                                                       (59)       (55)

      Other Income and Expenses                                                                                                                                              7         11

      Interest Expense                                                                                                                                                     105         95
                                                                                                                                                                           ---        ---

      Loss Before Income Taxes                                                                                                                                            (157)      (139)

      Income Tax Benefit                                                                                                                                                   (75)       (60)

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

      Segment Net Expense                                                                                                                                                 $(82)      $(77)
                                                                                                                                                                          ----       ----

      Depreciation and Amortization                                                                                                                                        $29        $35

    (a) Includes a pretax impairment charge of $1,381 million for the three months ended March 31, 2014, related to the planned disposition of the Midwest Generation business.

    (b) Includes a tax benefit of $514 million for the three months ended March 31, 2014, on the impairment related to the planned disposition of the Midwest Generation business.


                                                                                                              DUKE ENERGY CORPORATION

                                                                                                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                                                    (Unaudited)

                                                                                                      (In millions, except per-share amounts)

                                                                                                                                                         Three Months Ended

                                                                                                                                                             March 31,
                                                                                                                                                             ---------

                                                                                                                                                                            2014      2013
                                                                                                                                                                            ----      ----

    Operating Revenues

    Regulated electric                                                                                                                                                    $5,578    $4,889

    Nonregulated electric, natural gas, and other                                                                                                   824                      824

    Regulated natural gas                                                                                                                           222                      185
    ---------------------                                                                                                                           ---                      ---

    Total operating revenues                                                                                                                      6,624                    5,898
    ------------------------                                                                                                                      -----                    -----

    Operating Expenses

    Fuel used in electric generation and purchased power - regulated                                                                              2,000                    1,703

    Fuel used in electric generation and purchased power - nonregulated                                                                             409                      454

    Cost of natural gas and other                                                                                                                   122                      104

    Operation, maintenance and other                                                                                                              1,506                    1,421

    Depreciation and amortization                                                                                                                   790                      660

    Property and other taxes                                                                                                                        358                      343

    Impairment charges                                                                                                                            1,382                        -

    Total operating expenses                                                                                                                      6,567                    4,685
    ------------------------                                                                                                                      -----                    -----

    Gains on Sales of Other Assets and Other, net                                                                                                     1                        2

    Operating Income                                                                                                                                                          58     1,215
    ----------------                                                                                                                                                         ---     -----

    Other Income and Expenses

    Equity in earnings of unconsolidated affiliates                                                                                                  36                       36

    Other income and expenses, net                                                                                                                   95                       80

    Total other income and expenses                                                                                                                 131                      116
    -------------------------------                                                                                                                 ---                      ---

    Interest Expense                                                                                                                                                         406       367
    ----------------                                                                                                                                                         ---       ---

    (Loss) Income From Continuing Operations Before Income Taxes                                                                                   (217)                     964

    Income Tax (Benefit) Expense from Continuing Operations                                                                                        (127)                     330
    -------------------------------------------------------                                                                                        ----                      ---

    (Loss) Income From Continuing Operations                                                                                                        (90)                     634
    ----------------------------------------                                                                                                        ---                      ---

    Loss From Discontinued Operations, net of tax                                                                                                    (3)                       -
    ---------------------------------------------                                                                                                   ---                      ---

    Net (Loss) Income                                                                                                                               (93)                     634

    Less: Net Income Attributable to Noncontrolling Interests                                                                                         4                        -
    ---------------------------------------------------------                                                                                       ---                      ---

    Net (Loss) Income Attributable to Duke Energy Corporation                                                                                                               $(97)     $634
    ---------------------------------------------------------                                                                                                               ----      ----

    Earnings Per Share - Basic and Diluted

    (Loss) Income from continuing operations attributable to Duke Energy Corporation common shareholders

      Basic                                                                                                                                                               $(0.13)    $0.89

      Diluted                                                                                                                                                             $(0.13)    $0.89

    Loss from discontinued operations attributable to Duke Energy Corporation common shareholders

      Basic                                                                                                                                                               $(0.01) $      -

      Diluted                                                                                                                                                             $(0.01) $      -

    Net (Loss) Income attributable to Duke Energy Corporation common shareholders

      Basic                                                                                                                                                               $(0.14)    $0.89

      Diluted                                                                                                                                                             $(0.14)    $0.89

    Weighted-average shares outstanding

      Basic                                                                                                                                                                  706       705

      Diluted                                                                                                                                                                706       705


                                                                                                                            DUKE ENERGY CORPORATION

                                                                                                                     CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                                                                                  (Unaudited)

                                                                                                                                 (In millions)

                                                                                                                                                                                                               March 31,           December 31,

                                                                                                                                                                                                                             2014                  2013
                                                                                                                                                                                                                             ----                  ----

    ASSETS

    Current Assets

    Cash and cash equivalents                                                                                                                                                                           $1,531             $1,501

    Short-term investments                                                                                                                                                                                                      6                    44

    Receivables (net of allowance for doubtful accounts of

                                                                                                                                                           $17 at March 31, 2014 and $30 at December 31, 2013)                597                 1,286

    Restricted receivables of variable interest entities (net of allowance for

                                                                               doubtful accounts of $54 at March 31, 2014 and $43 at December 31, 2013)                                                                     2,199                 1,719

    Inventory                                                                                                                                                                                                               2,908                 3,250

    Assets held for sale                                                                                                                                                                                                      515                     -

    Regulatory assets                                                                                                                                                                                                       1,148                   895

    Other                                                                                                                                                                                                                   1,661                 1,821

                                                                                Total current assets                                                                                                                       10,565                10,516
                                                                               --------------------                                                                                                                        ------                ------

    Investments and Other Assets

    Investments in equity method unconsolidated affiliates                                                                                                                                                                    386                   390

    Nuclear decommissioning trust funds                                                                                                                                                                                     5,231                 5,132

    Goodwill                                                                                                                                                                                                               16,342                16,340

    Assets held for sale                                                                                                                                                                                                    2,341                   107

    Other                                                                                                                                                                                                                   3,251                 3,432

                                                                                Total investments and other assets                                                                                                         27,551                25,401
                                                                               ----------------------------------                                                                                                          ------                ------

    Property, Plant and Equipment

    Cost                                                                                                                                                                                                                   99,874               103,115

    Accumulated depreciation and amortization                                                                                                                                                                             (33,519)              (33,625)

                                                                                Net property, plant and equipment                                                                                                          66,355                69,490
                                                                               ---------------------------------                                                                                                           ------                ------

    Regulatory Assets and Deferred Debits

    Regulatory assets                                                                                                                                                                                                       9,138                 9,191

    Other                                                                                                                                                                                                                     183                   181

                                                                                Total regulatory assets and deferred debits                                                                                                 9,321                 9,372
                                                                               -------------------------------------------                                                                                                  -----                 -----

    Total Assets                                                                                                                                                                                                          113,792               114,779
    ------------                                                                                                                                                                                                          -------               -------

    LIABILITIES AND EQUITY

    Current Liabilities

    Accounts payable                                                                                                                                                                                                        1,892                 2,391

    Notes payable and commercial paper                                                                                                                                                                                      1,737                   839

    Taxes accrued                                                                                                                                                                                                             423                   551

    Interest accrued                                                                                                                                                                                                          478                   440

    Current maturities of long-term debt                                                                                                                                                                                      885                 2,104

    Liabilities associated with assets held for sale                                                                                                                                                                          222                     7

    Regulatory liabilities                                                                                                                                                                                                    243                   316

    Other                                                                                                                                                                                                                   1,612                 1,996
    -----

                                                                               Total current liabilities                                                                                                                    7,492                 8,644
                                                                               -------------------------                                                                                                                    -----                 -----

    Long-term Debt                                                                                                                                                                                                         39,000                38,152
    --------------                                                                                                                                                                                                         ------                ------

    Deferred Credits and Other Liabilities

    Deferred income taxes                                                                                                                                                                                                  11,852                12,097

    Investment tax credits                                                                                                                                                                                                    438                   442

    Accrued pension and other post-retirement benefit costs                                                                                                                                                                 1,270                 1,322

    Liabilities associated with assets held for sale                                                                                                                                                                           71                    66

    Asset retirement obligations                                                                                                                                                                                            4,994                 4,950

    Regulatory liabilities                                                                                                                                                                                                  6,125                 5,949

    Other                                                                                                                                                                                                                   1,761                 1,749
    -----                                                                                                                                                                                                                   -----                 -----

                                                                               Total deferred credits and other liabilities                                                                                                26,511                26,575
                                                                               --------------------------------------------                                                                                                ------                ------

    Equity

    Common stock, $0.001 par value, 2 billion shares authorized; 707 million

                                                                               and 706 million shares outstanding at March 31, 2014 and

                                                                               December 31, 2013, respectively                                                                                                                  1                     1

    Additional paid-in capital                                                                                                                                                                                             39,372                39,365

    Retained earnings                                                                                                                                                                                                       1,713                 2,363

    Accumulated other comprehensive loss                                                                                                                                                                                     (377)                 (399)
    ------------------------------------                                                                                                                                                                                     ----                  ----

                                                                               Total Duke Energy Corporation shareholders' equity                                                                                          40,709                41,330

    Noncontrolling interests                                                                                                                                                                                                   80                    78

                                                                               Total equity                                                                                                                                40,789                41,408
                                                                               ------------                                                                                                                                ------                ------

    Total Liabilities and Equity                                                                                                                                                                      $113,792           $114,779
    ----------------------------                                                                                                                                                                      --------           --------


                                                                  DUKE ENERGY CORPORATION

                                                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                        (Unaudited)

                                                                       (In millions)

                                                                                                      Three Months Ended March 31,
                                                                                                      ----------------------------

                                                                                                                                  2014    2013
                                                                                                                                  ----    ----

    CASH FLOWS FROM OPERATING ACTIVITIES

      Net (Loss) Income                                                                                                           $(93)   $634

      Adjustments to reconcile net
       income to net cash provided by

        operating activities:                                                                                                    1,466     457

            Net cash provided by operating activities                                                                            1,373   1,091
                                                                                                                                 -----   -----

    CASH FLOWS FROM INVESTING ACTIVITIES

            Net cash used in investing activities                                                                               (1,286) (1,465)
                                                                                                                                ------  ------

    CASH FLOWS FROM FINANCING ACTIVITIES

            Net cash (used in) provided by
             financing activities                                                                                                  (57)    246
                                                                                                                                   ---     ---

      Net increase (decrease) in cash
       and cash equivalents                                                                                                         30    (128)

      Cash and cash equivalents at
       beginning of period                                                                                                       1,501   1,424

      Cash and cash equivalents at end
       of period                                                                                                                $1,531  $1,296
                                                                                                                                ------  ------


                                                                                             Regulated Utilities

                                                                                            Quarterly Highlights

                                                                            Supplemental Regulated Utilities Electric Information

                                                                                                 March 2014

                                                                                                               Three Months Ended

                                                                                                                   March 31
                                                                                                                   --------

                                                                                                                                                  %             % Inc.(Dec.)

                                                                                                                                                                  Weather

                                                                                                                            2014       2013  Inc. (Dec.)         Normal (2)
                                                                                                                            ----       ----  ----------          ---------

    GWH Sales (1)

      Residential                                                                                                         24,193     21,734               11.3%              2.9%

      General Service                                                                                                     18,147     17,545                3.4%              3.6%

      Industrial                                                                                                          12,055     11,925                1.1%              0.4%

      Other Energy Sales                                                                                                     150        151              (0.7%)

      Unbilled Sales                                                                                                        (584)      (206)             183.5%              N/A
                                                                                                                            ----       ----              -----               ---

          Total Retail Sales                                                                                              53,961     51,149                5.5%              2.6%

      Special Sales (3)                                                                                                    9,907      8,498               16.6%

          Total Consolidated Electric Sales - Regulated Utilities                                                         63,868     59,647                7.1%

    Average Number of Customers

      Residential                                                                                                      6,265,318  6,201,159                1.0%

      General Service                                                                                                    939,046    932,231                0.7%

      Industrial                                                                                                          18,374     18,690              (1.7%)

      Other Energy Sales                                                                                                  22,458     22,108                1.6%
                                                                                                                          ------     ------                ---

        Total Regular Sales                                                                                            7,245,196  7,174,188                1.0%

      Special Sales                                                                                                           64         62                3.2%

          Total Average Number of Customers - Regulated Utilities                                                      7,245,260  7,174,250                1.0%

    Heating and Cooling Degree Days (4)

      Carolinas - Actual

      Heating Degree Days                                                                                                  1,969      1,776               10.9%

      Cooling Degree Days                                                                                                      -          1                0.0%

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

      Heating Degree Days                                                                                                   18.8%       5.0%               n/a

      Cooling Degree Days                                                                                                (100.0%)    (86.4%)               n/a

      Midwest - Actual

      Heating Degree Days                                                                                                  3,313      2,834               16.9%

      Cooling Degree Days                                                                                                      -          -                0.0%

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

      Heating Degree Days                                                                                                   25.3%       5.6%               n/a

      Cooling Degree Days                                                                                                (100.0%)   (100.0%)               n/a

      Florida - Actual

      Heating Degree Days                                                                                                    417        339               23.0%

      Cooling Degree Days                                                                                                    144        178             (19.1%)

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

      Heating Degree Days                                                                                                    3.2%    (16.1%)               n/a

      Cooling Degree Days                                                                                                 (18.2%)       1.1%               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) First quarter 2014 and first quarter 2013 include 177 GWH and 184
       GWH, respectively, of sales associated with the FERC mitigation
       contracts, for which the financial results are excluded from the
       Regulated Utilities segment earnings.

      (4)  Certain 2013 data has been recast to conform to the 2014
       methodology which provides for consistency across all Regulated
       Utilities' jurisdictions.


                                                                                              Duke Energy Carolinas

                                                                                               Quarterly Highlights

                                                                              Supplemental Regulated Utilities Electric Information

                                                                                                    March 2014

                                                                                                                     Three Months Ended

                                                                                                                         March 31
                                                                                                                         --------

                                                                                                                                                                     % Inc.(Dec.)

                                                                                                                                                        %              Weather

                                                                                                                                  2014       2013  Inc.(Dec.)         Normal (2)
                                                                                                                                  ----       ----   ---------         ---------

    GWH Sales (1)

      Residential                                                                                                                8,564      7,705              11.1%

      General Service                                                                                                            6,781      6,526               3.9%

      Industrial                                                                                                                 4,914      4,811               2.1%

      Other Energy Sales                                                                                                            73         74             (1.4%)

      Unbilled Sales                                                                                                              (181)        10           (100.0%)
                                                                                                                                  ----        ---

          Total Regular Electric Sales                                                                                          20,151     19,126               5.4%              2.5%

      Special Sales (3)                                                                                                          3,542      3,120              13.5%

        Total Consolidated Electric Sales - Duke Energy Carolinas                                                               23,693     22,246               6.5%

    Average Number of Customers

      Residential                                                                                                            2,081,865  2,062,339               0.9%

      General Service                                                                                                          340,187    337,515               0.8%

      Industrial                                                                                                                 6,525      6,650             (1.9%)

      Other Energy Sales                                                                                                        14,485     14,350               0.9%
                                                                                                                                                                ---

        Total Regular Sales                                                                                                  2,443,062  2,420,854               0.9%

      Special Sales                                                                                                                 26         24               8.3%

      Total Average Number of Customers
       -Duke Energy Carolinas                                                                                                2,443,088  2,420,878               0.9%

    Heating and Cooling Degree Days (4)

      Actual

      Heating Degree Days                                                                                                        2,042      1,857              10.0%

      Cooling Degree Days                                                                                                            -          -               0.0%

      Variance from Normal

      Heating Degree Days                                                                                                         19.1%       6.1%              n/a

      Cooling Degree Days                                                                                                      (100.0%)   (100.0%)              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)  First quarter 2014 and first quarter 2013 include 177 GWH and 184
       GWH, respectively, of sales associated with the FERC mitigation
       contracts, for which the financial results are excluded from the
       Regulated Utilities segment earnings.

      (4)  Certain 2013 data has been recast to conform to the 2014
       methodology which provides for consistency across all Regulated
       Utilities' jurisdictions.


                                                                                            Duke Energy Progress

                                                                                            Quarterly Highlights

                                                                            Supplemental Regulated Utilities Electric Information

                                                                                                 March 2014

                                                                                                                  Three Months Ended

                                                                                                                      March 31
                                                                                                                      --------

                                                                                                                                                                  % Inc.(Dec.)

                                                                                                                                                     %              Weather

                                                                                                                               2014       2013  Inc.(Dec.)         Normal (2)
                                                                                                                               ----       ----   ---------         ---------

    GWH Sales (1)

      Residential                                                                                                             5,580      4,959              12.5%

      General Service                                                                                                         3,641      3,482               4.6%

      Industrial                                                                                                              2,381      2,444             (2.6%)

      Other Energy Sales                                                                                                         30         30               0.0%

      Unbilled Sales                                                                                                              3         35            (91.4%)
                                                                                                                                ---        ---            ------

          Total Regular Electric Sales                                                                                       11,635     10,950               6.3%              2.3%

      Special Sales                                                                                                           4,526      3,751              20.7%

        Total Consolidated Electric Sales - Duke Energy Progress                                                             16,161     14,701               9.9%

    Average Number of Customers

      Residential                                                                                                         1,251,608  1,237,568               1.1%

      General Service                                                                                                       221,892    220,208               0.8%

      Industrial                                                                                                              4,291      4,396             (2.4%)

      Other Energy Sales                                                                                                      1,751      1,812             (3.4%)

        Total Regular Sales                                                                                               1,479,542  1,463,984               1.1%

      Special Sales                                                                                                              15         15               0.0%

      Total Average Number of Customers - Duke Energy Progress                                                            1,479,557  1,463,999               1.1%

    Heating and Cooling Degree Days (3)

      Actual

      Heating Degree Days                                                                                                     1,896      1,695              11.9%

      Cooling Degree Days                                                                                                         -          2               0.0%

      Variance from Normal

      Heating Degree Days                                                                                                      18.5%       3.9%              n/a

      Cooling Degree Days                                                                                                   (100.0%)    (74.5%)              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)  Certain 2013 data has been recast to conform to the 2014
       methodology which provides for consistency across all Regulated
       Utilities' jurisdictions.


                                                                                             Duke Energy Florida

                                                                                            Quarterly Highlights

                                                                            Supplemental Regulated Utilities Electric Information

                                                                                                 March 2014

                                                                                                                Three Months Ended

                                                                                                                    March 31
                                                                                                                    --------

                                                                                                                                                                % Inc.(Dec.)

                                                                                                                                                   %              Weather

                                                                                                                             2014       2013  Inc.(Dec.)         Normal (2)
                                                                                                                             ----       ----   ---------         ---------

    GWH Sales (1)

      Residential                                                                                                           4,051      3,744               8.2%

      General Service                                                                                                       3,248      3,224               0.7%

      Industrial                                                                                                              801        755               6.1%

      Other Energy Sales                                                                                                        6          6               0.0%

      Unbilled Sales                                                                                                          139         34             308.8%
                                                                                                                              ---        ---

          Total Regular Sales                                                                                               8,245      7,763               6.2%              3.3%

      Special Sales                                                                                                           416        254              63.8%

        Total Electric Sales - Duke Energy Florida                                                                          8,661      8,017               8.0%

    Average Number of Customers

      Residential                                                                                                       1,492,358  1,473,749               1.3%

      General Service                                                                                                     190,437    188,343               1.1%

      Industrial                                                                                                            2,301      2,361             (2.5%)

      Other Energy Sales                                                                                                    1,555      1,568             (0.8%)

        Total Regular Sales                                                                                             1,686,651  1,666,021               1.2%

      Special Sales                                                                                                            16         15               6.7%

      Total Average Number of Customers - Duke Energy Florida                                                           1,686,667  1,666,036               1.2%

    Heating and Cooling Degree Days (3)

      Actual

      Heating Degree Days                                                                                                     417        339              23.0%

      Cooling Degree Days                                                                                                     144        178            (19.1%)

      Variance from Normal

      Heating Degree Days                                                                                                     3.2%    (16.1%)              n/a

      Cooling Degree Days                                                                                                  (18.2%)       1.1%              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)  Certain 2013 data has been recast to conform to the 2014
       methodology which provides for consistency across all Regulated
       Utilities' jurisdictions.


                                                                                                  Duke Energy Ohio

                                                                                                Quarterly Highlights

                                                                                Supplemental Regulated Utilities Electric Information

                                                                                                     March 2014

                                                                                                                          Three Months Ended

                                                                                                                              March 31
                                                                                                                              --------

                                                                                                                                                                        % Inc. (Dec.)

                                                                                                                                                           %               Weather

                                                                                                                                      2014      2013  Inc.(Dec.)          Normal (2)
                                                                                                                                      ----      ----   ---------          ---------

    GWH Sales (1)

      Residential                                                                                                                    2,779     2,498              11.2%

      General Service                                                                                                                2,372     2,282               3.9%

      Industrial                                                                                                                     1,436     1,396               2.9%

      Other Energy Sales                                                                                                                28        28               0.0%

      Unbilled Sales                                                                                                                  (242)     (146)           (65.8%)
                                                                                                                                      ----      ----

          Total Regular Electric Sales                                                                                               6,373     6,058               5.2%               2.0%

      Special Sales                                                                                                                    106       120            (11.7%)

          Total Electric Sales - Duke Energy Ohio                                                                                    6,479     6,178               4.9%

    Average Number of Customers

      Residential                                                                                                                  743,580   737,283               0.9%

      General Service                                                                                                               86,251    86,056               0.2%

      Industrial                                                                                                                     2,522     2,562             (1.6%)

      Other Energy                                                                                                                   3,171     2,924               8.4%

        Total Regular Sales                                                                                                        835,524   828,825               0.8%

      Special Sales                                                                                                                      1         1               0.0%

      Total Average Number of Electric Customers - Duke Energy Ohio                                                                835,525   828,826               0.8%

    Heating and Cooling Degree Days (3)

      Actual

      Heating Degree Days                                                                                                            3,109     2,703              15.0%

      Cooling Degree Days                                                                                                                -         -               0.0%

      Variance from Normal

      Heating Degree Days                                                                                                             21.4%      4.0%              n/a

      Cooling Degree Days                                                                                                          (100.0%)  (100.0%)              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)  Certain 2013 data has been recast to conform to the 2014 methodology
       which provides for consistency across all Regulated Utilities'
       jurisdictions.


                                                                                                Duke Energy Ohio

                                                                                              Quarterly Highlights

                                                                                Supplemental Regulated Utilities Gas Information

                                                                                                   March 2014

                                                                                                                  Three Months Ended

                                                                                                                      March 31
                                                                                                                      --------

                                                                                                                                                                     % Inc. (Dec.)

                                                                                                                                                        %               Weather

                                                                                                                                 2014        2013  Inc.(Dec.)          Normal (2)
                                                                                                                                 ----        ----   ---------          ---------

    MCF Sales (1)

      Residential                                                                                                          23,585,941  20,044,850              17.7%

      General Service                                                                                                      13,692,491  11,648,545              17.5%

      Industrial                                                                                                            2,812,830   2,407,491              16.8%

      Other Energy Sales                                                                                                    6,597,030   6,154,498               7.2%

      Unbilled Sales                                                                                                       (2,467,000)   (912,000)          (170.5%)
                                                                                                                            ---------    --------

          Total Gas Sales - Duke Energy Ohio                                                                               44,221,292  39,343,384              12.4%               2.0%

    Average Number of Customers

      Residential                                                                                                             476,115     471,571               1.0%

      General Service                                                                                                          45,299      45,001               0.7%

      Industrial                                                                                                                1,717       1,688               1.7%

      Other Energy                                                                                                                158         166             (4.8%)
                                                                                                                                  ---         ---

      Total Average Number of Gas Customers - Duke Energy Ohio                                                                523,289     518,426               0.9%

    Heating and Cooling Degree Days (3)

      Actual

      Heating Degree Days                                                                                                       3,109       2,703              15.0%

      Cooling Degree Days                                                                                                           -           -               0.0%

      Variance from Normal

      Heating Degree Days                                                                                                        21.4%        4.0%              n/a

      Cooling Degree Days                                                                                                     (100.0%)    (100.0%)              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)  Certain 2013 data has been recast to conform to the 2014 methodology
       which provides for consistency across all Regulated Utilities'
       jurisdictions.


                                                                                                   Duke Energy Indiana

                                                                                                  Quarterly Highlights

                                                                                  Supplemental Regulated Utilities Electric Information

                                                                                                       March 2014

                                                                                                                               Three Months Ended

                                                                                                                                   March 31
                                                                                                                                   --------

                                                                                                                                                                             % Inc. (Dec.)

                                                                                                                                                                %               Weather

                                                                                                                                           2014      2013  Inc.(Dec.)          Normal (2)
                                                                                                                                           ----      ----   ---------          ---------

    GWH Sales (1)

      Residential                                                                                                                         3,219     2,828              13.8%

      General Service                                                                                                                     2,105     2,031               3.6%

      Industrial                                                                                                                          2,523     2,519               0.2%

      Other Energy Sales                                                                                                                     13        13               0.0%

      Unbilled Sales                                                                                                                       (303)     (139)          (118.0%)
                                                                                                                                           ----      ----

          Total Regular Electric Sales                                                                                                    7,557     7,252               4.2%               2.8%

      Special Sales                                                                                                                       1,317     1,253               5.1%

          Total Electric Sales - Duke Energy Indiana                                                                                      8,874     8,505               4.3%

    Average Number of Customers

      Residential                                                                                                                       695,907   690,220               0.8%

      General Service                                                                                                                   100,279   100,109               0.2%

      Industrial                                                                                                                          2,735     2,721               0.5%

      Other Energy                                                                                                                        1,496     1,454               2.9%

        Total Regular Sales                                                                                                             800,417   794,504               0.7%

      Special Sales                                                                                                                           6         7            (14.3%)

      Total Average Number of Electric Customers - Duke Energy Indiana                                                                  800,423   794,511               0.7%

    Heating and Cooling Degree Days (3)

      Actual

      Heating Degree Days                                                                                                                 3,517     2,966              18.6%

      Cooling Degree Days                                                                                                                     -         -               0.0%

      Variance from Normal

      Heating Degree Days                                                                                                                  29.0%      7.0%              n/a

      Cooling Degree Days                                                                                                               (100.0%)  (100.0%)              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)  Certain 2013 data has been recast to conform to the 2014 methodology
       which provides for consistency across all Regulated Utilities'
       jurisdictions.



                                                                                                                 DUKE ENERGY CORPORATION

                                                                                                      ADJUSTED TO REPORTED EARNINGS RECONCILIATION

                                                                                                            Three Months Ended March 31, 2014

                                                                                                     (Dollars in millions, except per-share amounts)

                                                                                                                                                Special Items
                                                                                                                                              -------------

                                                                                                           Adjusted                    Costs to                      Midwest           Economic            Discontinued             Total             Reported
                                                                                                           Earnings                    Achieve,                     Generation           Hedges            Operations           Adjustments          Earnings
                                                                                                                                       Progress                     Impairment         (Mark-to-
                                                                                                                                       Merger                                        Market) *
                                                                                                                                       ------                                        ---------

    SEGMENT INCOME
    --------------

    Regulated Utilities                                                                                                          $737        $                  ?            $      ?            $       ?            $        ?            $       ?            $737

    International Energy                                                                                                          130                           ?                   ?                    ?                     ?                    ?             130

    Commercial Power                                                                                                               10                           ?                (867) D               (22) B                  ?                 (889)           (879)

                                               Total Reportable Segment Income                        877                                   ?                           (867)                 (22)                   ?                  (889)            (12)

    Other                                                                                                                         (48)                        (34) A                ?                    ?                     ?                  (34)            (82)
                                                                                                                                  ---                         ---                 ---                  ---                   ---                  ---             ---

                                               Total Reportable Segment Income and Other Net Expense  829                                  (34)                          (867)                 (22)                   ?                  (923)            (94)

                                               Discontinued Operations                                           ?                          ?                               ?                   ?                   (3) C                 (3)              (3)

    Net Income (Loss) Attributable to Duke Energy Corporation                                                                    $829                        $(34)              $(867)                $(22)                  $(3)               $(926)           $(97)
                                                                                                                                 ====                        ====               =====                 ====                   ===                =====            ====

    EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC                                                                          $1.17                      $(0.04)             $(1.23)              $(0.03)               $(0.01)              $(1.31)         $(0.14)
    --------------------------------------------------                                                                          =====                      ======              ======               ======                ======               ======          ======

    EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED                                                                        $1.17                      $(0.04)             $(1.23)              $(0.03)               $(0.01)              $(1.31)         $(0.14)
    ----------------------------------------------------                                                                        =====                      ======              ======               ======                ======               ======          ======

                                                                                                                                     A                             -   Net of $21 million tax benefit. $1 million recorded as a decrease in Operating Revenues, $53 million recorded within Operating Expenses and
                                                                                                                                                                       $1 million recorded within Interest
        expense on the Condensed Consolidated Statements of Operations.

    B                                                                                                                                                              -   Net of $12 million tax benefit. $124 million loss recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and
                                                                                                                                                                       $90 million gain recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed
                                                                                                                                                                       Consolidated Statements of Operations.

    C                                                                                                                                                              -  Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

    D                                                                                                                                                              -   Net of $514 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statements of
                                                                                                                                                                       Operations.

    Weighted Average Shares (reported and adjusted) - in millions

        Basic                                                                                                                                                    706

        Diluted                                                                                                                                                  706

    * 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 operating 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.




                                                                                               DUKE ENERGY CORPORATION

                                                                                    ADJUSTED TO REPORTED EARNINGS RECONCILIATION

                                                                                          Three Months Ended March 31, 2013

                                                                                   (Dollars in millions, except per-share amounts)

                                                                                                                                   Special Items
                                                                                                                                   -------------

                                                                                                    Adjusted                        Costs to              Economic              Total            Reported
                                                                                                    Earnings                        Achieve,            Hedges (Mark-         Adjustments         Earnings
                                                                                                                                    Progress            to-Market) *
                                                                                                                                     Merger
                                                                                                                                     ------

    SEGMENT INCOME
    --------------

    Regulated Utilities                                                                                                   $656                 $      ?               $      ?            $      ?           $656

    International Energy                                                                                                    97                        ?                      ?                   ?             97

    Commercial Power                                                                                                         6                        ?                    (48) B              (48)           (42)

                                                   Total Reportable Segment Income             759                                            ?                    (48)                (48)             711

    Other                                                                                                                  (43)                     (34) A                   ?                 (34)           (77)
                                                                                                                           ---                      ---                    ---                 ---            ---

    Net Income (Loss) Attributable to Duke Energy Corporation                                                             $716                     $(34)                  $(48)               $(82)          $634
                                                                                                                          ====                     ====                   ====                ====           ====

    EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC                                                                   $1.02                   $(0.05)                $(0.08)             $(0.13)         $0.89
    --------------------------------------------------                                                                   =====                   ======                 ======              ======          =====

    EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED                                                                 $1.02                   $(0.05)                $(0.08)             $(0.13)         $0.89
    ----------------------------------------------------                                                                 =====                   ======                 ======              ======          =====

                                                                                                                                                  A                                -   Net of $21 million tax benefit. $15 million recorded as an increase in Operating Revenues and $70 million recorded in Operating Expenses
                                                                                                                                                                                       on the Condensed Consolidated
        Statements of Operations.

    B                                                                                                                                                                              -   Net of $27 million tax benefit. $68 million loss recorded in Nonregulated electric, natural gas and other (Operating Revenues) and $7
                                                                                                                                                                                       million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed
                                                                                                                                                                                       Consolidated Statements of Operations.

    Weighted Average Shares (reported and adjusted) - in millions

        Basic                                                                                                                                                                    705

        Diluted                                                                                                                                                                  705

    * 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 operating 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.

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Media Contact: Tom Shiel

Office: 704.382.2355 | 24-Hour: 800.559.3853

Analysts: Bill Currens

Office: 704.382.1603

SOURCE Duke Energy


Source: PR Newswire



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