Demand notes, maximum amount outstanding



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| FINANCIAL STATEMENTS | DEBT AND CREDIT FACILITIES |

  
Other Debt MattersIn September 2022, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy, may issue debt and other securities, including preferred stock, in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common and preferred stock by Duke Energy. Also in September 2022, Duke Energy filed a Form S-3 that allows Duke Energy to sell up to $4 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $2 billion of the notes will be outstanding at any particular time.Intercompany Credit AgreementsIn March 2022, Progress Energy closed a revolving credit agreement with Duke Energy (Parent), which allowed up to $2.5 billion in intercompany borrowings.6. ASSET RETIREMENT OBLIGATIONSThe Duke Energy Registrants record AROs when there is a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Actual costs incurred could be materially different from current estimates that form the basis of the recorded AROs. The following table presents the AROs recorded on the Condensed Consolidated Balance Sheets.

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|  | September 30, 2022 |
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Decommissioning of nuclear power facilities(a) | $ | 7,206  |  |  | $ | 2,968  |  |  | $ | 4,202  |  |  | $ | 3,908  |  |  | $ | 294  |  |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |
| Closure of ash impoundments | 5,293  |  |  | 2,360  |  |  | 1,914  |  |  | 1,885  |  |  | 29  |  |  | 99  |  |  | 919  |  |  | —  |  |
| Other | 451  |  |  | 65  |  |  | 87  |  |  | 46  |  |  | 41  |  |  | 56  |  |  | 39  |  |  | 23  |  |
| Total ARO | $ | 12,950  |  |  | $ | 5,393  |  |  | $ | 6,203  |  |  | $ | 5,839  |  |  | $ | 364  |  |  | $ | 155  |  |  | $ | 958  |  |  | $ | 23  |  |
| Less: Current portion | 798  |  |  | 278  |  |  | 311  |  |  | 310  |  |  | 1  |  |  | 23  |  |  | 185  |  |  | —  |  |
| Total noncurrent ARO | $ | 12,152  |  |  | $ | 5,115  |  |  | $ | 5,892  |  |  | $ | 5,529  |  |  | $ | 363  |  |  | $ | 132  |  |  | $ | 773  |  |  | $ | 23  |  |

(a)Duke Energy amount includes purchase accounting adjustments related to the merger with Progress Energy.ARO Liability RollforwardThe following table presents the change in liability associated with AROs for the Duke Energy Registrants.

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|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions)  | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Balance at December 31, 2021(a) | $ | 12,776  |  |  | $ | 5,301  |  |  | $ | 6,112  |  |  | $ | 5,675  |  |  | $ | 437  |  |  | $ | 136  |  |  | $ | 987  |  |  | $ | 22  |  |
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| Accretion expense(b) | 376  |  |  | 180  |  |  | 170  |  |  | 159  |  |  | 11  |  |  | 4  |  |  | 21  |  |  | 1  |  |
| Liabilities settled(c) | (488) |  |  | (163) |  |  | (239) |  |  | (160) |  |  | (79) |  |  | (8) |  |  | (77) |  |  | —  |  |
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| Revisions in estimates of cash flows(d) | 286  |  |  | 75  |  |  | 160  |  |  | 165  |  |  | (5) |  |  | 23  |  |  | 27  |  |  | —  |  |
| Balance at September 30, 2022 | $ | 12,950  |  |  | $ | 5,393  |  |  | $ | 6,203  |  |  | $ | 5,839  |  |  | $ | 364  |  |  | $ | 155  |  |  | $ | 958  |  |  | $ | 23  |  |

(a)Primarily relates to decommissioning nuclear power facilities, closure of ash impoundments, asbestos removal, closure of landfills at fossil generation facilities, retirement of natural gas mains and removal of renewable energy generation assets.(b)For the nine months ended September 30, 2022, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.(c)Primarily relates to ash impoundment closures and nuclear decommissioning.(d)The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases primarily relate to higher unit costs associated with basin closure, routine maintenance and beneficiation activities, partially offset by lower post closure maintenance costs, a reduction in monitoring wells needed, and higher discount rates applied to future cash flows.Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets within Other Noncurrent Assets, respectively, on the Condensed Consolidated Balance Sheets. 59
