Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (January 2019)
73 slides from Duke Energy Corporation (holding Company)'s investor presentation, Jan 9, 2019
Slide 1: Duke Energy Winter Update 2019
DUKE ENERGY WINTER UPDATE 2019
Slide 2: Safe Harbor statement
Safe Harbor statement This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and i
Slide 3: Our investor value proposition
Our investor value proposition A SOLID LONG-TERM HOLDING 4.4% ~8-10% 4 -6% DIVIDEND YIELD(1) ATTRACTIVE zzz HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2022(4) CONSTRUCTIVE JURISDICTIONS, LOW-RISK REGULATED INVESTMENTS AND BALANCE
Slide 4: Reaffirming long-term earnings growth guidance
Reaffirming long-term earnings growth guidance(1) REAFFIRMING LONG TERM GROWTH 2019 PRIMARY INVESTMENT CAGR OF 4-6%THROUGH 2022(2)(3) GROWTH DRIVERS 2020 AND Electric Utilities & Infrastructure 2019 EXPECT LOW END BEYOND • Carolinas OF THE GROWTH EXPECT MID TO HIGH END • NC rates effective mid-2018,
Slide 5: Duke Energy – A large scale, highly regulated energy infrastructure company
Duke Energy – A large scale, highly regulated energy infrastructure company HEADQUARTERED IN ELECTRIC UTILITIES CHARLOTTE, NC & INFRASTRUCTURE • Operating in six constructive jurisdictions, with attractive allowed ROEs, serving 7.6 million retail customers • Below average customer rates(1) • Balance
Slide 6: Complementary businesses with strong growth opportunities
Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2018 ADJUSTED 2018-2022 2017 – 2022 & INFRASTRUCTURE EPS CONTRIBUTION(1) GROWTH CAPITAL ADJUSTED EPS CAGR(2) Consolidated 4-6% 88% $28.8 B 10-14% 11-13% GAS UTILITIES & INFRASTRUCTURE 9% $6.7 B 5-6% COMMERCIAL RENEWABLES 3%
Slide 7: Modern recovery mechanisms and strategic priorities
2017 2026 ENGAGE MODERNIZE THE GENERATE EXPAND TRANSFORM THE STAKEHOLDERS ENERGY GRID CLEANER ENERGY NATURAL GAS CUSTOMER INFRASTRUCTURE EXPERIENCE MODERN $25 $11 15 TOP RECOVERY BILLION BILLION PERCENT QUARTILE MECHANISMS INVESTMENTS IN INVESTMENTS IN GAS PROPORTION OF CUSTOMER IN ALL JURISDICTIONS
Slide 8: Modernizing the largest energy grid in the U.S.
Modernizing the largest energy grid in the U.S. TARGETED UNDERGROUNDING SELF- TRANSMISSION OPTIMIZATION IMPROVEMENTS DISTRIBUTION ENTERPRISE HARDENING & SYSTEM RESILIENCY UPGRADES COMMUNICATION ADVANCED NETWORK METERING UPGRADES INFRASTRUCTURE (AMI) CUSTOMER BENEFITS MODERNIZE THE Provide Improve EN
Slide 9: Generating cleaner energy
Generating cleaner energy TARGETING 40% REDUCTION IN CO2 EMISSIONS FROM 2005 LEVELS BY 2030(1) • Citrus County CCGT (DEF, 2018) in-service and Western Carolinas Modernization Project (DEP, 2019) on track • Increasing solar generation in N.C. under H.B. 589 • Bids received Oct. 9 for first tranche of
Slide 10: Expanding natural gas infrastructure
Expanding natural gas infrastructure ATLANTIC COAST PIPELINE UPDATE • Construction halted pending permit challenge resolution • U.S. Fish & Wildlife Service Biological Opinion and Incidental Take Statement stayed – requested clarification • U.S. Forest Service permit to cross national forests reman
Slide 11: Robust capital plan supports earnings base growth
Robust capital plan supports earnings base growth 2016 - 2022 2018 - 2022 REGULATED ELECTRIC AND GROWTH CAPITAL PLAN(3) GAS EARNINGS BASE(1) Electric 2021 EARNINGS BASE Distribution INCREASES BY ~$3.5 BILLION; 36% CAGR NOW 7% (UP FROM 6.1%)(2) Commercial $90 Renewables, 4% $87 $84 $37 LDC Infrastruc
Slide 12: Strong customer growth and cost management support earning our allowed ROEs
Strong customer growth and cost management support earning our allowed ROEs ADJUSTED ELECTRIC RESIDENTIAL GAS UTILITIES BOOK ROEs(2) GROWTH AND RETAIL RESIDENTIAL VOLUME TRENDS GROWTH TRENDS 10.0% 10.4% Carolinas ADJUSTING FOR LEAP YEAR 10.4% 2017 RETAIL ELECTRIC 9.75–10.25% SALES INCREASED BY 0.7%
Slide 13: Managing regulatory activity
Managing regulatory activity(1) Denotes modern recovery mechanism JURISDICTION 2017 2018 2019 2020 2021 2022 Complete – NC H.B. 589 rider – NC - Filed annually DEC Pending – SC Planning for multiple rate cases – NC / SC Complete – NC H.B. 589 rider – NC - Filed annually DEP Pending – SC Planning for
Slide 14: Summary of regulatory activity
Summary of regulatory activity STATUS UPDATE KEY OUTCOMES ▪ Resolved coal ash recovery ▪ Deferred coal ash costs amortized over 5 years, with DUKE ENERGY full debt and equity return PROGRESS ✓ Complete NORTH CAROLINA ▪ Ongoing coal ash costs deferred with a full return(1) for consideration in future
Slide 15: Dividend growth and payout
92 years of consecutive quarterly cash dividends paid 70 - 75% DUK ANNUALIZED EXPECTED DIVIDEND PER SHARE(2) PAYOUT RATIO THROUGH 2022(1) 4 - 6% ANNUAL DIVIDEND GROWTH ~75% $3.18 $3.30 $3.42 $3.56 $3.71 OF TSR ACHIEVED 2014 2015 2016 2017 2018 THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (1) Bas
Slide 16: The leading energy infrastructure company
The leading energy infrastructure company Large-scale U.S. electric and Constructive regulatory gas utility creating a cleaner jurisdictions in desirable energy future communities INVESTING IN INFRASTRUCTURE OUR CUSTOMERS VALUE. DELIVERING SUSTAINABLE GROWTH. Proven track record of Solid long-term i
Slide 17: Appendix materials
Appendix materials Item Slide(s) 3Q 2018 results 18-20 2018 guidance support 21-31 Financing plan 32-39 Regulatory overview 40-43 Tax reform summary 44-45 Segment overviews 46-49 Other information 50-54 DUKE ENERGY WINTER UPDATE 2019 17
Slide 18: 3Q 2018 results
3Q 2018 results DUKE ENERGY WINTER UPDATE 2019 18
Slide 19: Electric utilities quarterly weather impacts
Electric utilities quarterly weather impacts Weather segment 2018 2017 income to normal: Pretax impact Weighted avg. EPS impact(1) Pretax impact Weighted avg. EPS impact(1) diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter $10 701 $0.01 ($175) 700 ($0.15) Second
Slide 20: Weather normalized volume trends, by electric jurisdiction
Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of Sept. 30, 2018 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2.8% 2.3% 2.3% 1.7% 1.8% 1.4% 1.0% 1.1% 1.0% 1.1% 1.0% 0.7% 0.6% 0.6%
Slide 21: 2018 guidance support
2018 guidance support DUKE ENERGY WINTER UPDATE 2019 21
Slide 22: Duke Energy business segment structure
Duke Energy business segment structure Duke Energy Electric Utilities Gas Utilities Commercial Other & Infrastructure & Infrastructure Renewables North and South Duke Energy Carolinas Piedmont Natural Gas Carolina North and South Commercial Duke Energy Progress Carolina Pipelines Duke Energy Florida
Slide 23: Key 2018 adjusted earnings guidance assumptions
Key 2018 adjusted earnings guidance assumptions ($ in millions) Original 2018 2018 YTD Assumptions (1) (thru 9/30/2018) Adjusted segment income/(loss) (2): Electric Utilities & Infrastructure $3,304 $2,702 Gas Utilities & Infrastructure $319 $204 Commercial Renewables $117 $84 Other ($383) ($256) Du
Slide 24: Key 2018 earnings sensitivities
Key 2018 earnings sensitivities Driver EPS Impact 1% change in earned return on equity +/- $0.45 Electric Utilities & $1 billion change in rate base +/- $0.07 Infrastructure 1% change in Electric Utilities volumes +/- $0.12 1% change in earned return on equity +/- $0.05 Gas Utilities & $200 million
Slide 25: 2017 - 2018 adjusted diluted EPS guidance assumptions
2017 - 2018 adjusted diluted EPS guidance assumptions Electric Utilities Gas Utilities Commercial 2017 Weather Other Share dilution & Infrastructure & Infrastructure Renewables $0.12 ($0.20) ($0.09) $0.20 $0.04 $0.06 ▲ New solar resources $4.55 - $4.85 ▲ Piedmont Integrity ▲ Normal wind $0.04 Manage
Slide 26: Regulated utilities end of year earnings base
Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2017A 2018E 2019E 2020E 2021E 2022E Duke Energy Carolinas $22.6 $23.9 $24.9 $26.0 $26.6 $27.6 Duke Energy Progress 15.7 16.9 17.9 18.6 19.3 20.2 Duke Energy Florida 12.0 13.3 14.5 15.5 16.5 17.2 Duke In
Slide 27: Capital expenditures profile
Capital expenditures profile(1) ($ in millions) Capital Expenditures 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation (2) $ 1,545 1,825 1,425 1,175 1,250 1,000 $ 6,675 Electric Transmission 994 950 1,350 1,100 1,075 1,100 5,575 Electric Distribution 1,478 2,125 2,625 2,850 2,600 2
Slide 28: Capital expenditures by utility
Capital expenditures by utility(1) ($ in millions) Duke Energy Carolinas 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 461 $ 500 $ 600 $ 475 $ 400 $ 350 $ 2,325 Electric Transmission 78 175 250 225 200 225 1,075 Electric Distribution 639 825 925 1,025 1,025 1,200 5,000 (2) En
Slide 29: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 565 $ 400 $ 250 $ 400 $ 375 $ 125 $ 1,550 Electric Transmission 358 275 525 550 475 475 2,300 Electric Distribution 258 325 425 450 400 400 2,000 E
Slide 30: Capital expenditures by utility (continued)
Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2017A 2018E 2019E 2020E 2021E 2022E 2018 - 2022 Electric Generation $ 11 $ 25 $ 25 $ - $ - $ - $ 50 Electric Transmission 274 175 175 125 75 75 625 Electric Distribution 64 300 350 350 300 275 1,575 (2) Environ
Slide 31: Environmental compliance expenditures by category
Environmental compliance expenditures by category(1) ($ in millions) Total Project Spend 2018 – 2022 Coal Ash Closure Costs Category 2018 – 2022 Costs To Date(3) Plan Air (MATS) $110 Duke Energy Carolinas $2,490 $725 $740 Water (316b) $390 Duke Energy Progress $2,630 $500 $1,260 Waste (conversions)(
Slide 32: Financing plan
Financing plan DUKE ENERGY WINTER UPDATE 2019 32
Slide 33: Simplified financing structure
Simplified financing structure Duke Energy (HoldCo) Cinergy Corp. Progress Energy (HoldCo) (HoldCo) (1) Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Piedmont Natural Carolinas Ohio Indiana Progress Florida Gas Commercial Paper and LT Financings Duke Energy Duke Energy Renewables Money
Slide 34: Credit ratings (as of Jan. 7, 2019)
Credit ratings (as of Jan. 7, 2019) Holding Companies Operating Companies Moody's S&P Fitch Moody's S&P DUKE ENERGY Stable Stable Stable DUKE ENERGY CAROLINAS Stable Stable Senior Unsecured Debt Baa1 BBB+ BBB+ Senior Secured Debt Aa2 A Senior Unsecured Debt A1 A- Commercial Paper P-2 A-2 F-2 DUKE EN
Slide 35: Credit metrics
Credit metrics(1) Committed to maintaining quality, investment-grade ratings (2) FFO/Debt 29% 26% 26% 26% 24% 24% 22% 22% 21% 22% 21% 22% 21% 21% 19% 18% 18% 15% 14% 15% 14% 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E 2016A 2017A 2018E
Slide 36: 2018 financing plan as of Sept. 30, 2018
2018 financing plan as of Sept. 30, 2018 (1)(2) ($ in millions) $2,500 Equity Priced Equity Issued issuance YTD Forward? YTD $2,000 March offering $1.6 B Yes $800 M (June) ATM $200 M Yes -- DRIP $134 M No $134 M $1,500 Total $1.9 B $934 M $1,000 $500 $- Duke Duke Duke Duke Duke Piedmont Commercial E
Slide 37: 2018 long-term debt financing activity as of Sept. 30, 2018
2018 long-term debt financing activity as of Sept. 30, 2018 Credit Ratings Amount Entity Date Issued (M/S&P/F, unless Term Type Rate ($ in millions) otherwise noted) $500 DE Carolinas March 2018 Aa2/A 5-Year First Mortgage Bond Fixed – 3.05% $500 DE Carolinas March 2018 Aa2/A 30-Year First Mortgage
Slide 38: Liquidity summary as of Sept. 30, 2018
Liquidity summary as of Sept. 30, 2018 ($ in millions) Duke Duke Duke Duke Duke Duke Duke Piedmont Energy Energy Energy Energy Energy Energy Energy Natural Corp. Carolinas Progress Florida Indiana Ohio Kentucky Gas Total Master Credit Facility (1) $ 2,650 $ 1,750 $ 1,400 $ 650 $ 600 $ 300 $ 150 $ 50
Slide 39: Long-term debt maturities
Long-term debt maturities(1) $3,238 $3,100 $160 $170 $2,912 $174 Regulated Utilities Maturities Detail ($ in millions) 2018 2019 2020 $1,438 $2,228 $2,180 Duke Energy Carolinas (2) $ 1,204 $5 $ 905 Duke Energy Progress (2) 3 603 304 Duke Energy Florida (2) (3) 715 216 518 Duke Energy Indiana 2 60 50
Slide 40: Regulatory overview
Regulatory overview DUKE ENERGY WINTER UPDATE 2019 40
Slide 41: Current electric rate information by jurisdiction
Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $13.5 B (1) (DEC) $4.2 B (1) (DEC) Retail Rate Base $11.5B (2) $7.0 B (3) $1.3 B $650 M (4) $8.2 B (1) (DEP) $1.3 B (1) (DEP) $1.7 B (DEC) 1Q 2018 $0.5 B Wholesale Rate
Slide 42: Current electric rate information by jurisdiction (continued)
Current electric rate information by jurisdiction (continued) General Rate Case Provisions North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes (1) Yes Yes Notice Period 30 Days 30 Days 60 Days Varies 30 Days 28 Days Historical
Slide 43: Current gas rate information by jurisdiction
Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina Carolina (Gas) (Gas) Rate Base ($M) $1,822 $304 $349 $900 (1) $200 (2) Allowed ROE 10.0% 10.2% 10.2% 9.84% 10.38% Allowed Equity 50.7% 53.0% 52.7% 53.3% 50.8% Effective Date of 1/1/14 11/1/17 (3) 3/1/12 12/1/13
Slide 44: Tax reform summary
Tax reform summary DUKE ENERGY WINTER UPDATE 2019 44
Slide 45: Tax reform: regulatory activity and timeline
Tax reform: regulatory activity and timeline Riders in all jurisdictions include the lower federal income tax rate as they are updated/filed Proposed/Approved Treatment of: Amortization period for Status Docket Lower tax rate EDIT Unprotected EDIT Utilizing tax reform to offset Hurricane Irma costs,
Slide 46: Segment Overviews
Segment Overviews DUKE ENERGY WINTER UPDATE 2019 46
Slide 47: Electric Utilities and Infrastructure
Electric Utilities and infrastructure A portfolio of attractive utilities in constructive jurisdictions COMPETITIVE REGULATED ELECTRIC EIGHT UTILITIES IN 2017 EARNINGS BASE CUSTOMER RATES HIGH-QUALITY Avg. ¢/kWh Retail Rates DEO - Electric DEK - Electric REGIONS OF THE U.S. (12 mos. ending 6/30/18)(
Slide 48: Gas Utilities and Infrastructure – at a glance
Gas Utilities and Infrastructure – at a glance GAS UTILITIES WITH LOW ATLANTIC COAST PIPELINE VOLUMETRIC EXPOSURE DUE TO TO BRING SIGNIFICANT GAS SUPPLY TO MOSTLY FIXED MARGINS… UNDERSERVED EASTERN 13% CAROLINAS 12% • 47% joint owner • Project earns AFUDC during construction 75% 87% • Potential for
Slide 49: Commercial and Regulated Renewables asset locations
Commercial and Regulated Renewables asset locations(1) (1) A full list of generation facilities can be found at https://www.duke-energy.com//_/media/pdfs/our-company/investors/duke-energy-generation-portfolio.pdf DUKE ENERGY WINTER UPDATE 2019 49
Slide 50: Other information
Other information DUKE ENERGY WINTER UPDATE 2019 50
Slide 51: Upcoming events
Upcoming events Event Date 4Q 2018 earnings call Feb. 14, 2019 DUKE ENERGY WINTER UPDATE 2019 51
Slide 52: Investor relations contact information
Investor relations contact information MIKE CALLAHAN, VICE PRESIDENT INVESTOR RELATIONS ▪ Michael.Callahan@duke-energy.com ▪ (704) 382-0459 MIKE SWITZER, DIRECTOR INVESTOR RELATIONS ▪ Mike.Switzer@duke-energy.com ▪ (704) 382-6473 ABBY MOTSINGER, MANAGER INVESTOR RELATIONS ▪ Abby.Motsinger@duke-energ
Slide 53: Safe Harbor statement
Safe Harbor statement Safe Harbor statement This document 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 and can o
Slide 54: For additional information on Duke Energy
For additional information on Duke Energy, please visit: www.duke-energy.com/investors DUKE ENERGY WINTER UPDATE 2019 54
Slide 55: Non-GAAP Reconciliations
Duke Energy Corporation Non-GAAP Reconciliations Winter 2019 Investor Meetings Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Winter 2019 Investor Meetings include a discussion of adjusted diluted EPS for the year-to-date periods ended September 3
Slide 56: Adjusted Segment Income and Adjusted Other Net Loss
unable to project all special items for future periods, such as legal settlements, the impact of regulatory orders or asset impairments. Adjusted Segment Income and Adjusted Other Net Loss The materials for Duke Energy’s Winter 2019 Investor Meetings include a discussion of adjusted segment income a
Slide 57: Dividend Payout Ratio
Dividend Payout Ratio The materials for Duke Energy’s Winter 2019 Investor Meetings include a discussion of Duke Energy’s forecasted dividend payout ratio of 70% - 75% through 2022 based upon adjusted diluted EPS. This payout ratio is a non-GAAP financial measure as it is based upon forecasted dilut
Slide 58: Available Liquidity
Available Liquidity The materials for Duke Energy’s Winter 2019 Investor Meetings include a discussion of Duke Energy’s available liquidity balance as of September 30, 2018. The available liquidity balance presented is a non- GAAP financial measure as it represents cash and cash equivalents, excludi
Slide 59: Reported to Adjusted Earnings Reconciliation, Nine Months 2018
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Nine Months Ended September 30, 2018 (Dollars in millions, except per-share amounts) Special Items Costs to Regulatory Achieve and Sale of Reported Piedmont Legislative Retired Impairment Impacts of Discontinued Total Adjusted Earn
Slide 60: Reported to Adjusted Earnings Reconciliation, Nine Months 2017
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Nine Months Ended September 30, 2017 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve Commercial Reported Piedmont Florida Renewables Discontinued Total Adjusted Earnings Merger Settlement Impairments
Slide 61: Reported to Adjusted Earnings Reconciliation, Twelve Months 2017
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2017 (Dollars in millions, except per-share amounts) Special Items Costs to Achieve Commercial Reported Piedmont Regulatory Renewables Impacts of Discontinued Total Adjusted Earnings Merger Settleme
Slide 62: Adjusted Effective Tax Reconciliation
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION September 2018 (Dollars in millions) Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Balance Effective Tax Rate Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 1,230 $
Slide 63: Adjusted Book Return on Equity, 2017
DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2017 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Piedmont Reported Net Income 2017 $ 1,214 $
Slide 64: Adjusted Book Return on Equity, 2016
DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2016 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Piedmont Natural Carolinas Progress Total Carolinas Florida Indiana Segments Gas (4) Reported Net Incom
Slide 65: Adjusted Book Return on Equity, 2015
DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2015 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Piedmont Natural Carolinas Progress Total Carolinas Florida Indiana Segments Gas (4) Reported Net Incom
Slide 66: FFO to Debt Calculation – Duke Energy Corporation
FFO to Debt Calculation Duke Energy Corporation (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 6,634 $ 6,817 Working capital adjustment (1) 740 (394) Capitalized Interest (128) (100) CR3 securitization adjustment (53) (35) Other 20 19 Funds From Operations 7,21
Slide 67: FFO to Debt Calculation – Duke Energy Carolinas
FFO to Debt Calculation Duke Energy Carolinas (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 2,634 $ 2,976 Working capital adjustment (1) (54) (333) Capitalized Interest (45) (38) Funds From Operations 2,535 2,605 ARO spend 271 287 ARO spend, net of tax at 38%
Slide 68: FFO to Debt Calculation – Duke Energy Progress
FFO to Debt Calculation Duke Energy Progress (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 1,195 $ 1,932 Working capital adjustment (1) 520 (502) Capitalized Interest (21) (17) Other 3 2 Funds From Operations 1,697 1,415 ARO spend 192 212 ARO spend, net of tax
Slide 69: FFO to Debt Calculation – Duke Energy Florida
FFO to Debt Calculation Duke Energy Florida (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 1,028 $ 844 Working capital adjustment (1) 216 252 Capitalized Interest (24) (14) CR3 securitization adjustment (53) (35) Other 14 13 Funds From Operations 1,181 1,060 AR
Slide 70: FFO to Debt Calculation – Duke Energy Indiana
FFO to Debt Calculation Duke Energy Indiana (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 969 $ 871 Working capital adjustment (1) (102) 132 Capitalized Interest (9) (7) Funds From Operations 858 996 ARO spend 45 46 ARO spend, net of tax at 38% 28 29 FFO exc.
Slide 71: FFO to Debt Calculation – Duke Energy Ohio
FFO to Debt Calculation Duke Energy Ohio (in millions) Years Ended December 31, 2017 2016 Actual Actual Cash From Operations $ 479 $ 425 Working capital adjustment (1) 15 15 Capitalized Interest (10) (8) Funds From Operations 484 432 ARO spend 7 5 ARO spend, net of tax at 38% 4 3 FFO exc. coal ash s
Slide 72: FFO to Debt Calculation – Piedmont Natural Gas
FFO to Debt Calculation Piedmont Natural Gas (in millions) Years Ended December 31, October 31, 2017 2016 Actual Actual Cash From Operations $ 329 $ 308 Working capital adjustment (1) 125 101 Capitalized Interest 12 2 Funds From Operations 466 411 ARO spend - 6 ARO spend, net of tax at 38% - 4 FFO e
Slide 73: Available Liquidity Reconciliation
Duke Energy Corporation Available Liquidity Reconciliation As of September 30, 2018 (In millions) Cash and Cash Equivalents $ 303 Less: Certain Amounts Held in Foreign Jurisdictions (7) Less: Unavailable Domestic Cash (82) 214 Plus: Remaining Availability under Master Credit Facilities and other fac