Duke Energy CORPDUK
Duke Energy CORP Fair Value Disclosure
FAIR VALUE MEASUREMENTS
Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.
Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value per share practical expedient. The net asset value is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.
Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the Company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.
Valuation methods of the primary fair value measurements disclosed below are as follows.
Investments in equity securities
The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the NYSE and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.
Investments in debt securities
Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.
Commodity derivatives
Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of certain commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.
Interest rate derivatives
Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.
Foreign currency derivatives
Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.
Other fair value considerations
See Note 2 for further information on the valuation of the Commercial Renewables Disposal Groups. See Note 12 for a discussion of the valuation of goodwill and intangible assets.
DUKE ENERGY
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 15. See Note 16 for additional information related to investments by major security type for the Duke Energy Registrants.
| December 31, 2025 | |||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not Categorized | ||||||||||||
| NDTF cash and cash equivalents | $ | 175 | $ | 175 | $ | — | $ | — | $ | — | |||||||
| NDTF equity securities | 8,519 | 8,494 | 3 | — | 22 | ||||||||||||
| NDTF debt securities | 4,193 | 1,480 | 2,713 | — | — | ||||||||||||
| Other equity securities | 139 | 139 | — | — | — | ||||||||||||
| Other debt securities | 246 | 55 | 191 | — | — | ||||||||||||
| Other cash and cash equivalents | 53 | 53 | — | — | — | ||||||||||||
| 382 | 2 | 371 | 9 | — | |||||||||||||
| Total assets | 13,707 | 10,398 | 3,278 | 9 | 22 | ||||||||||||
| (244) | (7) | (237) | — | — | |||||||||||||
Net assets | $ | 13,463 | $ | 10,391 | $ | 3,041 | $ | 9 | $ | 22 | |||||||
| December 31, 2024 | |||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Not Categorized | ||||||||||||
| NDTF cash and cash equivalents | $ | 139 | $ | 139 | $ | — | $ | — | $ | — | |||||||
| NDTF equity securities | 8,233 | 8,203 | 2 | — | 28 | ||||||||||||
| NDTF debt securities | 3,060 | 1,022 | 2,038 | — | — | ||||||||||||
| Other equity securities | 160 | 160 | — | — | — | ||||||||||||
| Other debt securities | 266 | 52 | 214 | — | — | ||||||||||||
| Other cash and cash equivalents | 47 | 47 | — | — | — | ||||||||||||
| 434 | 2 | 423 | 9 | — | |||||||||||||
| Total assets | 12,339 | 9,625 | 2,677 | 9 | 28 | ||||||||||||
| (319) | (3) | (316) | — | — | |||||||||||||
Net assets | $ | 12,020 | $ | 9,622 | $ | 2,361 | $ | 9 | $ | 28 | |||||||
The following table provides reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
| Derivatives (net) | |||||||||||
| Years Ended December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Balance at beginning of period | $ | 9 | $ | 15 | |||||||
| Purchases, sales, issuances and settlements: | |||||||||||
| Purchases | 14 | 29 | |||||||||
| Settlements | (6) | (46) | |||||||||
| Net transfers Out of Level 3 | (7) | — | |||||||||
| Total (losses) gains included on the Consolidated Balance Sheet | (1) | 11 | |||||||||
| Balance at end of period | $ | 9 | $ | 9 | |||||||
DUKE ENERGY CAROLINAS
The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | ||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Not Categorized | ||||||||||
| NDTF cash and cash equivalents | $ | 92 | $ | 92 | $ | — | $ | — | ||||||
| NDTF equity securities | 4,896 | 4,871 | 3 | 22 | ||||||||||
| NDTF debt securities | 2,349 | 776 | 1,573 | — | ||||||||||
| Derivative assets | 101 | — | 101 | — | ||||||||||
| Total assets | 7,438 | 5,739 | 1,677 | 22 | ||||||||||
| Derivative liabilities | (88) | — | (88) | — | ||||||||||
| Net assets | $ | 7,350 | $ | 5,739 | $ | 1,589 | $ | 22 | ||||||
| December 31, 2024 | ||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Not Categorized | ||||||||||
| NDTF cash and cash equivalents | $ | 62 | $ | 62 | $ | — | $ | — | ||||||
| NDTF equity securities | 4,751 | 4,721 | 2 | 28 | ||||||||||
| NDTF debt securities | 1,651 | 520 | 1,131 | — | ||||||||||
| Derivative assets | 94 | — | 94 | — | ||||||||||
| Total assets | 6,558 | 5,303 | 1,227 | 28 | ||||||||||
| Derivative liabilities | (88) | — | (88) | — | ||||||||||
| Net assets | $ | 6,470 | $ | 5,303 | $ | 1,139 | $ | 28 | ||||||
PROGRESS ENERGY
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||||||
| NDTF cash and cash equivalents | $ | 83 | $ | 83 | $ | — | $ | 77 | $ | 77 | $ | — | |||||||||||
| NDTF equity securities | 3,623 | 3,623 | — | 3,482 | 3,482 | — | |||||||||||||||||
| NDTF debt securities | 1,844 | 704 | 1,140 | 1,409 | 502 | 907 | |||||||||||||||||
| Other debt securities | 24 | — | 24 | 24 | — | 24 | |||||||||||||||||
| Other cash and cash equivalents | 34 | 34 | — | 23 | 23 | — | |||||||||||||||||
| Derivative assets | 67 | — | 67 | 127 | — | 127 | |||||||||||||||||
| Total assets | 5,675 | 4,444 | 1,231 | 5,142 | 4,084 | 1,058 | |||||||||||||||||
| Derivative liabilities | (48) | — | (48) | (58) | — | (58) | |||||||||||||||||
| Net assets | $ | 5,627 | $ | 4,444 | $ | 1,183 | $ | 5,084 | $ | 4,084 | $ | 1,000 | |||||||||||
DUKE ENERGY PROGRESS
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||||||
| NDTF cash and cash equivalents | $ | 71 | $ | 71 | $ | — | $ | 54 | $ | 54 | $ | — | |||||||||||
| NDTF equity securities | 3,485 | 3,485 | — | 3,362 | 3,362 | — | |||||||||||||||||
| NDTF debt securities | 1,698 | 597 | 1,101 | 1,221 | 365 | 856 | |||||||||||||||||
| Other cash and cash equivalents | 24 | 24 | — | 16 | 16 | — | |||||||||||||||||
| Derivative assets | 52 | — | 52 | 109 | — | 109 | |||||||||||||||||
| Total assets | 5,330 | 4,177 | 1,153 | 4,762 | 3,797 | 965 | |||||||||||||||||
| Derivative liabilities | (47) | — | (47) | (57) | — | (57) | |||||||||||||||||
| Net assets | $ | 5,283 | $ | 4,177 | $ | 1,106 | $ | 4,705 | $ | 3,797 | $ | 908 | |||||||||||
DUKE ENERGY FLORIDA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||||||
| NDTF cash and cash equivalents | $ | 12 | $ | 12 | $ | — | $ | 23 | $ | 23 | $ | — | |||||||||||
| NDTF equity securities | 138 | 138 | — | 120 | 120 | — | |||||||||||||||||
| NDTF debt securities | 146 | 107 | 39 | 188 | 137 | 51 | |||||||||||||||||
| Other debt securities | 24 | — | 24 | 24 | — | 24 | |||||||||||||||||
| Other cash and cash equivalents | 5 | 5 | — | 3 | 3 | — | |||||||||||||||||
| Derivative assets | 15 | — | 15 | 18 | — | 18 | |||||||||||||||||
| Total assets | 340 | 262 | 78 | 376 | 283 | 93 | |||||||||||||||||
| Derivative liabilities | (1) | — | (1) | (1) | — | (1) | |||||||||||||||||
| Net assets | $ | 339 | $ | 262 | $ | 77 | $ | 375 | $ | 283 | $ | 92 | |||||||||||
DUKE ENERGY OHIO
The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets were not material at December 31, 2025, and 2024.
DUKE ENERGY INDIANA
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
| Other equity securities | $ | 53 | $ | 53 | $ | — | $ | — | $ | 89 | $ | 89 | $ | — | $ | — | |||||||||||||
| Other debt securities | 29 | — | 29 | — | 56 | — | 56 | — | |||||||||||||||||||||
| Other cash equivalents | — | — | — | — | 1 | 1 | — | — | |||||||||||||||||||||
| Derivative assets | 12 | 2 | 1 | 9 | 44 | — | 36 | 8 | |||||||||||||||||||||
| Total assets | 94 | 55 | 30 | 9 | 190 | 90 | 92 | 8 | |||||||||||||||||||||
| Derivative liabilities | (9) | (7) | (2) | — | (3) | (3) | — | — | |||||||||||||||||||||
| Net assets | $ | 85 | $ | 48 | $ | 28 | $ | 9 | $ | 187 | $ | 87 | $ | 92 | $ | 8 | |||||||||||||
The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.
| Derivatives (net) | |||||||||||
| Years Ended December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Balance at beginning of period | $ | 8 | $ | 13 | |||||||
| Purchases, sales, issuances and settlements: | |||||||||||
| Purchases | 12 | 27 | |||||||||
| Settlements | (4) | (42) | |||||||||
| Net transfers In (Out) of Level 3 due to observability of inputs | (7) | — | |||||||||
Total gains included on the Consolidated Balance Sheet | — | 10 | |||||||||
| Balance at end of period | $ | 9 | $ | 8 | |||||||
PIEDMONT
The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Total Fair Value | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | |||||||||||||||||
| Derivative assets | $ | — | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | |||||||||||
| Derivative liabilities | (72) | — | (72) | (94) | — | (94) | |||||||||||||||||
| Net (liabilities) assets | $ | (72) | $ | — | $ | (72) | $ | (93) | $ | 1 | $ | (94) | |||||||||||
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.
| December 31, 2025 | |||||||||||||||||||||||
| Weighted | |||||||||||||||||||||||
| Fair Value | Average | ||||||||||||||||||||||
| Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | Range | ||||||||||||||||||
| Duke Energy Indiana | |||||||||||||||||||||||
| FTRs | 9 | RTO auction pricing | FTR price – per MWh | (1.00) | – | 14.63 | 1.13 | ||||||||||||||||
| Duke Energy | |||||||||||||||||||||||
| Total Level 3 derivatives | $ | 9 | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Weighted | |||||||||||||||||||||||
| Fair Value | Average | ||||||||||||||||||||||
| Investment Type | (in millions) | Valuation Technique | Unobservable Input | Range | Range | ||||||||||||||||||
| Duke Energy Ohio | |||||||||||||||||||||||
| FTRs | $ | 1 | RTO auction pricing | FTR price – per MWh | $ | — | – | $ | 1.13 | $ | 0.48 | ||||||||||||
| Duke Energy Indiana | |||||||||||||||||||||||
| FTRs | 8 | RTO auction pricing | FTR price – per MWh | (0.63) | – | 9.24 | 0.94 | ||||||||||||||||
| Duke Energy | |||||||||||||||||||||||
| Total Level 3 derivatives | $ | 9 | |||||||||||||||||||||
OTHER FAIR VALUE DISCLOSURES
The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Book Value | Fair Value | Book Value | Fair Value | |||||||||||||||||||
Duke Energy(a) | $ | 87,212 | $ | 79,863 | $ | 80,689 | $ | 73,440 | |||||||||||||||
| Duke Energy Carolinas | 18,777 | 16,764 | 17,490 | 15,975 | |||||||||||||||||||
| Progress Energy | 26,848 | 24,957 | 24,496 | 22,548 | |||||||||||||||||||
| Duke Energy Progress | 13,896 | 12,445 | 12,504 | 11,009 | |||||||||||||||||||
| Duke Energy Florida | 11,307 | 10,720 | 10,348 | 9,752 | |||||||||||||||||||
| Duke Energy Ohio | 4,420 | 4,151 | 4,165 | 3,871 | |||||||||||||||||||
| Duke Energy Indiana | 5,093 | 4,646 | 4,798 | 4,329 | |||||||||||||||||||
| Piedmont | 4,251 | 3,960 | 4,003 | 3,584 | |||||||||||||||||||
(a) Book value of long-term debt includes $921 million and $1.0 billion as of December 31, 2025, and December 31, 2024, of unamortized debt discount and premium, net in purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.
At both December 31, 2025, and December 31, 2024, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper, and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.