H000152777January 2016 Enterprise

Benefits Enrollment GuideIntroduction to Duke Energy’s Benefits

2016

ABOUT THIS GUIDE

This Guide provides general information about Duke Energy’s employee benefits plans available to eligible non-unionized employees and employees represented by IBEW 1393, IBEW 962, IBEW 962 (Transportation), USW 7202, IBEW 1347 and UWUA Local 600. This Guide is intended to assist you in making your enrollment elections. If any statement herein, or any other communication, conflicts with applicable plan documents, the plan documents will govern. Duke Energy retains the right to amend, modify or terminate its benefits plans in any respect and at any time, and neither its benefits plans nor your plan participation will be considered a contract for future employment.

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A TOTAL REWARDS PERSPECTIVE

We’re pleased to offer a comprehensive pay and benefits package that we call our total rewards program. This Guide will provide you with some general information about the company-sponsored benefits plans that are part of our total rewards program.

AS A NEW EMPLOYEE YOU CAN ENROLL

As a new Duke Energy employee, you have the opportunity to enroll in health and insurance coverage. Depending on the benefits plans and the level of coverage you elect, Duke Energy may share the cost of coverage with you, or you may pay 100 percent of the cost of coverage.

Because your health is important to Duke Energy, the company offers tools and resources to make it easier for you to achieve and sustain a safe and healthy life. To encourage healthy choices, you can earn rewards that are used to reduce your employee contributions for medical coverage when you complete certain Live Well Incentive Program activities by the specified deadlines.

If you do not use tobacco products of any kind, and if you meet the requirements shown on page 10, you can complete the non-tobacco user attestation and receive the non-tobacco user discount to lower your contribution rates for coverage under the Duke Energy Active Medical Plan (the “Medical Plan”). If you are a tobacco user, you may still be able to lower your

contribution rates for coverage under the Medical Plan if you complete the Alternate Procedure described on page 10. Don’t miss out on this significant cost savings!

In addition to health and insurance coverage, you’re also eligible to enroll in a Duke Energy-sponsored 401(k) plan, and if you don’t enroll, you will be automatically enrolled as described on page 16. We call our plan the Retirement Savings Plan, because we want you to have an opportunity to save and invest for retirement. Duke Energy will match some of your contributions to the Retirement Savings Plan, giving you an added incentive to save. The sooner you enroll, the sooner your retirement savings can grow. Additionally, the company will make a 4 percent contribution to your account whether you contribute or not. Please refer to page 16 for important information.

While the purpose of this Guide is to assist you with the health and insurance enrollment process, we’ve also included some information about Duke Energy’s retirement benefits (refer to page 16).

Getting startedAt Duke Energy, we believe that our employees are the key to our success, and we work hard each day to make our company a place where coming to work is more than just having a job.

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New hire checklistWHAT YOU NEED TO DO HOW TO DO IT

3 Locate the Duke Energy Portal’s Employee Center

Be sure to visit the following Employee Center pages:

• Benefits – Health & Insurance• Benefits – Retirement• Commuter Benefits• New Employee Orientation• Paycheck• Personal Information• Employee Leaves/Time Away from Work• Wellness • Employee Programs & Awards

3 Enroll in health and insurance coverage for you and your eligible dependents

You must make your health and insurance elections within 31 calendar days of your eligibility date, typically your first day of active work as an eligible employee.

If you don’t enroll within 31 calendar days of your eligibility date, default coverage will apply as described on page 8.

You’ll receive an email soon after you arrive at Duke Energy. The email will direct you to our online enrollment and information tools.

Refer to page 7 for information.

3 Enroll in the Retirement Savings Plan

You can enroll now to save and invest for your retirement.

If you don’t enroll, you will be automatically enrolled as described on page 16.

Visit the Fidelity NetBenefits® website at 401k.com to enroll.

Refer to page 16 for information.

3 Participate in the Live Well Incentive Program

When you participate in activities to help you maintain a healthy lifestyle and prevent disease and illness, you can earn rewards. Begin participating in the Live Well Incentive Program by registering for your Live Well account and by completing the online Health Survey by Aug. 31, 2016.

Refer to page 14 for information about the Live Well Incentive Program.

For details about ways to earn rewards, refer to the Employee Center’s Wellness page.

5GETTING STARTED

SUMMARY OF YOUR CHOICES

You must make your health and insurance elections within the first 31 calendar days of your eligibility date (generally, your first day of active work as an eligible employee), where an election is required. In some instances, when you elect

coverage for yourself, you may be able to elect coverage for your eligible dependents. Please refer to page 7 for eligibility information. Refer to page 8 for information about default coverage if you do not enroll.

PLAN SUMMARY

Medical Elect medical coverage for yourself, your eligible spouse (or domestic partner, if applicable) and your eligible child(ren) in one of the following options:• Health Savings Plan 1 – a high-deductible health plan (HDHP) option• Health Savings Plan 2 – an HDHP option• Preferred Provider Organization (PPO)• Decline medical coverage

Dental • Elect dental coverage for yourself, your eligible spouse (or domestic partner, if applicable) and your eligible child(ren)

• Decline dental coverage

Vision • Elect vision coverage for yourself, your eligible spouse (or domestic partner, if applicable) and your eligible child(ren)

• Decline vision coverage

Health Care Spending Account (HCSA)

• Elect to contribute from $120 to $2,550 per year to an HCSA• Decline HCSA coverage

Dependent Care Spending Account (DCSA)

• Elect to contribute from $120 to $5,000 per year to a DCSA• Decline DCSA coverage

Health Savings Account • If you enroll in a Health Savings Plan option, you may be eligible to contribute to a Health Savings Account instead of a Health Care Spending Account. Refer to page 12 for more information.

Life Insurance Duke Energy provides, at no cost to you, Basic Life Insurance coverage equal to one times your annual base pay (up to $1 million in coverage with a $50,000 minimum) or $50,000. You can purchase: • Supplemental Life Insurance coverage for yourself• Dependent Life Insurance coverage for your eligible spouse/domestic partner and/

or your eligible child(ren)

Accidental Death & Dismemberment (AD&D) Insurance

Duke Energy provides, at no cost to you, Basic AD&D Insurance coverage equal to one times your annual base pay (up to $1 million in coverage with a $50,000 minimum). You can purchase: • Supplemental AD&D Insurance coverage for yourself • Dependent AD&D Insurance coverage for your eligible spouse/domestic partner

and/or your eligible child(ren)

Business Travel Accident Insurance

Duke Energy provides, at no cost to you, coverage equal to three times your annual base pay (up to $2 million in coverage) if you are a full-time employee, or equal to two times your annual base pay (up to $200,000 in coverage) if you are a part-time employee.

Long-Term Disability (LTD) Insurance

Duke Energy provides, at no cost to you, coverage equal to 50% of your annual base pay, subject to the maximum monthly benefit of $15,000. You can purchase: • Additional LTD Insurance coverage equal to 16-2/3% of your annual base pay for

a total coverage amount equal to 66-2/3% of your annual base pay, subject to the maximum monthly benefit of $15,000.

Retirement Savings Plan You’re immediately eligible to start saving through the Duke Energy Retirement Savings Plan, our 401(k) plan. Refer to page 16 for more information.

6 GETTING STARTED

WHEN YOU NEED HELP

When you have questions about how to use the enrollment tools, health and insurance coverage, your pay, commuter benefits, time reporting, training, leaves of absence and disability issues, call the Duke Energy myHR™ Service Center at 888.465.1300. Representatives are available Monday through Friday, 8 a.m. to 5 p.m. Eastern time. You will need the last four digits of your Social Security number, date of birth and a myHR password to speak with a representative. When you have questions about the Retirement Savings Plan, please call Fidelity’s Duke Energy Customer Service Line at 800.376.4015.

Getting a myHR Password

As a new employee, the first time you call, you’ll be prompted to create a password. Be sure to make a note of your password and keep it in a secure place.

WHEN YOU NEED INFORMATION

Learn about Your Benefits before You Enroll

Your Benefits Resources™ is our online resource to learn about health benefits and to complete certain self-service transactions, including your first benefits enrollment.

You can access online tools and resources using any Duke Energy workstation:

• Log on to the Duke Energy network using your LAN ID, LAN password and domain. Launch Internet Explorer. The Duke Energy Portal is the default home page.

• Click on the Portal’s Employee Center tab and select the Benefits – Health & Insurance page.

• From the Benefits – Health & Insurance page, click on View Your Benefits Information.

You can also access the Your Benefits Resources website from anywhere that you have Internet access by using the URL http://resources.hewitt.com/duke-energy.

If you have questions or need assistance with enrollment or navigating the online enrollment process, please call the Duke Energy myHR Service Center.

Use the Online Tool to View Your Choices

As you prepare to make your enrollment elections, refer to the online enrollment tool for information about the choices available to you. Additionally, you should refer to the information presented in this Guide, and the applicable summary plan descriptions, as you make your decisions.

Summary Plan Descriptions

You can find more information about Duke Energy’s employee benefits plans by reading the applicable summary plan descriptions, or SPDs. The SPDs provide plan descriptions, along with information regarding your rights, obligations and benefits under the plans, including employee and dependent eligibility information.

If you have questions about your benefits plans, check the applicable SPDs – chances are you can find your answer there.

You can view and print the health and insurance SPDs from the Your Benefits Resources website (look under Health & Insurance, Plan Information). Refer to the Duke Energy Retirement Savings Plan section in this Guide for information about how to view and print the Retirement Savings Plan SPD.

You have a right to receive paper copies of the SPDs upon request. To request a paper copy of an SPD, please call the Duke Energy myHR Service Center.

Summaries of Benefits and Coverage (SBCs)

To help you make an informed choice, and as required by the Affordable Care Act, the Medical Plan will make available to you Summaries of Benefits and Coverage (SBCs) for each Medical Plan option available to you. The SBCs summarize important information about the Medical Plan options available to you in the standard format required by health care reform, to help you compare across Medical Plan options. Review the enclosed Summary of Benefits and Coverage – Availability Notice for information about how to obtain the SBCs for the Medical Plan options available to you.

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ENROLL ONLINE

As a new employee, you will receive an email (sent to your Duke Energy email address), usually within one to three business days of your first day of active work as an eligible employee. This email will prompt you to make your health and insurance elections. Within the email are instructions about how to access our online enrollment tool and information resources.

If you need help using the enrollment tool or other resources, please contact the Duke Energy myHR Service Center. Representatives are available Monday through Friday, 8 a.m. to 5 p.m. Eastern time. You will need the last four digits of your Social Security number, date of birth and a myHR password to speak with a representative.

Your eligibility to participate in a particular health or insurance option or coverage level, as well as the applicable contribution rate, may be determined by your employment status or a collective bargaining agreement. The specific enrollment choices and coverage levels available to you as a new employee will be displayed when you use the online enrollment process. If you have any questions about your enrollment choices, coverage levels or contribution rates, call the Duke Energy myHR Service Center.

COST OF COVERAGE

You and Duke Energy share in the cost of certain health and insurance coverage. As you make your enrollment elections, the Your Benefits Resources website will provide you with information about contributions applicable to the elections that you make, including the amount of your contributions on a per-pay-period basis.

ENROLLING DEPENDENTS AND DESIGNATING BENEFICIARIES

When you enroll for coverage under certain health and insurance plans, you may also enroll eligible dependents. For information about the dependents that you may enroll, please refer to the applicable SPD or to the Dependent Verification section located on the Portal’s Employee Center – Health & Insurance page.

As you enroll, you will be prompted to enter dependent information if you intend to enroll an eligible dependent for health and insurance coverage. You must enter your dependents’ Social Security numbers and dates of birth when prompted.

After you have completed your enrollment, a request will be mailed to your home prompting you to submit certain types of information (for example, a copy of a birth certificate) to verify your dependents’ eligibility for medical, dental, vision and dependent life and AD&D coverage. You should familiarize yourself with the documentation requirements before making your elections.

Be sure to respond in a timely manner when you are asked to verify a dependent’s eligibility. If you don’t respond by the applicable deadline, coverage for your dependent will be dropped.

Additionally, when you enroll, you’ll be prompted to designate your beneficiary(ies) for life and AD&D insurance coverage.

CONSEQUENCES OF PROVIDING INACCURATE INFORMATION DURING ENROLLMENT

By accessing the enrollment tool on Your Benefits Resources and making your coverage elections, you are affirmatively representing that all information provided during the enrollment process, including, but not limited to, the eligibility of any dependents for coverage and/or your non-tobacco user status (and that of your spouse/domestic partner, as applicable), is true and correct. If Duke Energy discovers that any information you provide during enrollment is incorrect or inaccurate, Duke Energy reserves the right to recover any contribution amounts you should have paid, to recover plan benefits paid, to take appropriate disciplinary action for falsification of documents, up to and including termination of health and insurance coverage and/or discharge, and to take other appropriate action.

CONFIRM YOUR ENROLLMENT ELECTIONS

After you have completed your online enrollment, you will see a page that summarizes the elections

Health and insurance enrollment

that you have made and the dependents that you have elected to cover. Please review the summary page carefully before you submit your enrollment elections. If you do not see the Completed Successfully page, you have not completed your enrollment.

WHEN YOUR COVERAGE AND PAYROLL DEDUCTIONS BEGIN

Generally, your coverage under a health or insurance plan begins on your eligibility date if you make the necessary enrollment elections within 31 calendar days of your eligibility date, where an election for coverage (or participation) is required.

Where employee contributions for health and insurance coverage are required, and when you elect to contribute to a savings or spending account, you pay for all or a portion of your coverage through payroll deductions. Payroll deductions begin as soon as administratively practicable after your election date.

Please refer to the appropriate SPD for complete information about coverage.

HEALTH PLAN ID CARDS

Once you make your enrollment elections, it may take up to 30 calendar days for you to receive ID cards. You can print temporary ID cards by accessing the respective claims administrator websites approximately seven to 10 days after you have made your enrollment elections. Please refer to page 18 for information about our claims administrators’ websites.

IF YOU DON’T ENROLL

If you don’t make your health and insurance enrollment elections within 31 calendar days of your first day of active work as an eligible employee, default coverage will apply as shown in the chart below.

PLAN DEFAULT COVERAGE

Medical

Health Savings Plan 1 – Individual Only coverage level (Applicable contributions will be deducted from your paycheck.)

Tobacco user rates will apply if you do not attest to being a non-tobacco user when you enroll or, if you are a tobacco user, you do not attest to being a tobacco user, initiate the Alternate Procedure and submit the proper documentation within 31 days of your hire date. Refer to page 10.

Health Savings Account No participation

Dental No coverage

Vision Vision Discount Program only (at no cost to you)

Health Care Spending Account No participation

Dependent Care Spending Account No participation

Basic Life Insurance One times annual base pay* or $50,000, whichever is greater – company-paid coverage with no enrollment election required

Basic AD&D Insurance One times annual base pay or $50,000, whichever is greater – company-paid coverage with no enrollment election required

Business Travel Accident Insurance Three times annual base pay for full-time employees; two times annual base pay for part-time employees – company-paid coverage with no enrollment election required

Supplemental Life Insurance (employee)** No coverage

Dependent Life Insurance (spouse/domestic partner and/or child(ren))** No coverage

Supplemental AD&D Insurance (employee) No coverage

Dependent AD&D Insurance (spouse/domestic partner and/or child(ren)) No coverage

Long-Term Disability (LTD) Insurance 50% of annual base pay – company-paid coverage with no enrollment election required

*This coverage may result in taxable imputed income to you. **If you do not elect coverage when you or your eligible spouse/domestic partner is first eligible, evidence of insurability will be required if you elect to enroll at a later date.

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9HEALTH AND INSURANCE ENROLLMENT

OTHER OPPORTUNITIES TO ENROLL

If you are declining enrollment in the Medical Plan for yourself or your dependents (including your spouse) because of other health insurance or group health plan coverage, you may be able to enroll yourself and your dependents in the Medical Plan if you or your dependents lose eligibility for that other coverage (or if the employer stops contributing toward your or your dependents’ other coverage). However, you must request enrollment within 31 calendar days after your or your dependents’ other coverage ends (or after the employer stops contributing toward the other coverage).

If you have a new dependent as a result of marriage, birth, adoption or placement for adoption, you may be able to enroll yourself and your dependents. However, you must request enrollment within 31 calendar days after the marriage, birth, adoption or placement for adoption.

In addition, if you decline enrollment for yourself or for an eligible dependent (including your spouse) while Medicaid coverage or coverage under a state children’s health insurance program is in effect, you may be able to enroll yourself and your dependents in the Medical Plan if you or your dependents lose eligibility for that other coverage. However, you must request enrollment within 60 calendar days after your or your dependents’ coverage ends under Medicaid or a state children’s health insurance program.

If you or your dependents (including your spouse) become eligible for a state premium assistance subsidy from Medicaid or through a state children’s health insurance program with respect to coverage under the Medical Plan, you may be able to enroll yourself and your eligible dependents in the Medical Plan. However, you must request enrollment within 60 calendar days after your or your dependents’ determination of eligibility for such assistance.

For information about other opportunities to enroll or to request special enrollment, refer to the Medical Plan SPD or contact the Duke Energy myHR Service Center.

RE-HIRED EMPLOYEES

Generally, you must re-enroll in health and insurance coverage as a new employee if your

coverage ended previously due to termination of your Duke Energy employment.

If you are re-employed by Duke Energy as an eligible employee within 30 days of your termination date and within the same plan year, your health and insurance coverage in effect at the time of your termination will be reinstated automatically. However, if between your termination and re-employment dates you experienced a work or life event for which you can make a change in your health and insurance coverage (e.g., marriage, divorce or birth), you may be eligible to make certain changes upon re-employment if you do so within 31 calendar days after you become eligible.

For additional information, refer to the appropriate SPD or call the Duke Energy myHR Service Center for information and assistance.

MAKING CHANGES DURING THE YEAR

Your 2016 coverage elections, including default coverage, remain in effect for the entire calendar year, unless a work/life event such as birth, change in marital status or change in spouse’s coverage allows you to make changes during the year.

You must make any allowed changes within 31 calendar days of the date of the event. When you drop coverage for an ineligible dependent, generally the change is effective at the end of the month in which the dependent loses eligibility.

If you indicate that you (or your spouse/domestic partner) are a non-tobacco user and you (or your spouse/domestic partner) become a tobacco user during the calendar year, you must notify the Duke Energy myHR Service Center within 31 calendar days of the date that you (or your spouse/domestic partner) become a tobacco user. Changes to your per-pay-period contribution amounts will be made as soon as administratively practicable after the date on which you provide notice.

For more information about work/life events and applicable time frames within which to make changes, refer to the applicable SPD or call the Duke Energy myHR Service Center for information and assistance.

NOTE: A provider dropping out of network during the calendar year does not constitute a work/life event.

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MEDICAL PLAN COVERAGE

Generally, you can choose from among three Medical Plan options or you may decline coverage.

When you make your enrollment elections, the online enrollment tool will display the Medical Plan options available to you and will provide some information about the options’ provisions.

When you review the Medical Plan options online, you will be able to compare the options using the Health Plan Comparison Chart.

Although different co-payments, co-insurance and deductibles apply under the Medical Plan options, generally, each option covers the same types of medically necessary services and treatments.

Visit dukeenergy.welcometoUHC.com to view network providers before you enroll.

For complete information, please view/print a copy of the Medical Plan SPDs.

Our Focus on Your Health Includes Your Preventive Care

At Duke Energy, we recognize that our people are our greatest competitive advantage, so our health is critical not only to us as individuals, but also to the success of the company. Therefore, we take seriously the health and safety of our employees – on and off the job.

To encourage employees to seek routine preventive care, each Medical Plan option covers important age/gender-appropriate preventive care services at 100 percent when received from a network provider. To learn more about the specific preventive care services covered, please refer to the Medical Plan SPDs.

Prescription Drug Coverage

Each Medical Plan option includes prescription drug coverage. You can use the online Health Plan Comparison Chart to examine prescription drug costs under each Medical Plan option and where co-insurance and a deductible may be applicable.

Non-Tobacco User Discounts Available to Lower Your Cost

An employee who elects coverage under the Medical Plan must indicate tobacco user status when completing the enrollment process. Additionally, an employee who elects to cover a spouse/domestic partner under the Medical Plan must indicate the spouse’s/domestic partner’s tobacco user status.

During 2016, the Medical Plan provides a discount on employee contributions for non-tobacco users as follows:

• $960 per year for an employee who is a non-tobacco user;

• $960 per year for any covered spouse/domestic partner who is a non-tobacco user; or

• $1,920 per year if both the employee and covered spouse/domestic partner are non- tobacco users.

Except as otherwise described below, there is no discount available under the Medical Plan if both the employee and/or his/her covered spouse/domestic partner are tobacco users. There is no non-tobacco user discount available for the Enhanced EPO option that is available to certain unionized employees.

Definition of a Tobacco User

If you enroll as a new hire, you (or your spouse/domestic partner, as applicable) are considered a tobacco user if you (or your spouse/domestic partner, as applicable) have used any tobacco products during the 12-month period immediately preceding your enrollment. Tobacco products include cigarettes, cigars, cigarillos, snuff, smokeless tobacco and electronic cigarettes.

If You Misrepresent Your Tobacco User Status

If you misrepresent your tobacco user status (or the tobacco user status of your spouse/domestic partner), or if you (or your spouse/domestic partner, as applicable) become a tobacco user and you do not notify the Duke Energy myHR Service Center of the change in tobacco user status, Duke Energy reserves the right to recover any contribution amounts you should have paid, to

Health and insurance plan overview

11HEALTH AND INSURANCE PLAN OVERVIEW

take appropriate disciplinary action for falsification of documents, up to and including termination of health and insurance coverage and/or discharge, and to take other appropriate action.

Alternate Procedure – Non-Tobacco User Discount for the Medical Plan

The Medical Plan is committed to helping you (and your spouse/domestic partner, as applicable) achieve your best health. If you and/or your spouse/domestic partner, as applicable, do not qualify for the non-tobacco user discount because you are not currently tobacco-free, have not been tobacco-free for the 12 months preceding the effective date of your coverage or intend to use tobacco during the coverage period, you may still qualify for the non-tobacco user discount if you attest to being a tobacco user, initiate the Alternate Procedure and submit the proper documentation within 31 days of the date you enrolled in your benefits, and complete the Alternate Procedure1 requirements within seven months of the date you enrolled in your benefits. Information about the Alternate Procedure is available through the Duke Energy Portal’s Employee Center – New Employee Orientation page.

If you have questions about the non-tobacco user Alternate Procedure, call the Duke Energy myHR Service Center. The Alternate Procedure for obtaining the non-tobacco user discount is available only with respect to Medical Plan coverage and does not apply to Supplemental or Spouse Life Insurance coverage.

If you do not successfully complete the Alternate Procedure

If you (and/or your spouse/domestic partner) certify that you will complete the Alternate Procedure requirements and you (and/or your spouse/domestic partner) do not complete the Alternate Procedure requirements by the deadline indicated in the Alternate Procedure, you must notify the Duke Energy myHR Service Center within 31 calendar days of the date that you (and/or your spouse/domestic partner) fail to meet the deadline. Changes to your contribution amounts will be made as soon as administratively practicable after the date on which you provide notice or, if earlier, the date that the company learns of such failure.

If you misrepresent information in the Alternate Procedure Certification

Additionally, if you misrepresent any information in your Alternate Procedure Certification, or if you do not complete the Alternate Procedure requirements by the applicable deadline, Duke Energy reserves the right to recover any contribution amounts you should have paid, to take appropriate disciplinary action for falsification of documents, up to and including termination of health and insurance coverage and/or discharge, and to take other appropriate action.

DENTAL PLAN COVERAGE

You can choose Dental Plan coverage or you can decline coverage.

When you make your enrollment elections, the online enrollment tool will provide some information about the Dental Plan’s provisions. For complete information, please view/print a copy of the Dental Plan SPD.

VISION PLAN COVERAGE

You can choose Vision Plan coverage or you can decline coverage.

When you make your enrollment elections, the online enrollment tool will provide some information about the Vision Plan’s provisions. For complete information, please view/print a copy of the Vision Plan SPD.

Vision Discount Program

Duke Energy employees who do not elect Vision Plan coverage can receive discounts through the Vision Discount Program at no cost. This program provides a discount when you use a doctor in the vision carrier’s network for your eye exams, materials (glasses, contacts, etc.) or laser vision correction. You pay the negotiated discount rate at the time you receive services. There is no cost to you to access this program, and it is only available if you elect Decline Coverage under the Vision Plan. Additional information about the Vision Discount Program can be found on the Portal’s Employee Center – Benefits-Health & Insurance page.

1 We will work with you and your spouse/domestic partner and, if you wish, your doctor (and/or your spouse’s/domestic partner’s doctor) prior to the Alternate Procedure Certification submission deadline to find an alternate procedure that provides the same non-tobacco user discount that is right for you (and/or your spouse/domestic partner) in light of your (and/or your spouse’s/domestic partner’s) health status.

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HEALTH SAVINGS ACCOUNTS AND SPENDING ACCOUNTS

You may be eligible to contribute to accounts that allow you to set aside pretax dollars to reimburse yourself for certain types of out-of-pocket expenses.

The Health Savings Account (HSA)

If you elect a Health Savings Plan option under the Medical Plan, you also may be eligible to contribute to a Health Savings Account and the Health Savings Account will be displayed as one of your enrollment choices in the online enrollment tool. If you are eligible to contribute to a Health Savings Account and you want more information, please refer to the Health Savings Account Information Booklet. You will find it located on the Your Benefits Resources website under Plan Information or on the Portal’s Employee Center – Benefits – Health & Insurance page. Refer to IRS Publication 969 on irs.gov for Health Savings Account eligibility information.

Contact Optum Bank (877.214.2930) if you wish to consolidate other HSA funds through a rollover transaction.

Health Care Spending Account (HCSA)

You can use the HCSA to pay for eligible health care expenses incurred by you or any of your eligible dependents who would qualify for tax-free health coverage as defined by the Internal Revenue Code (most domestic partners do not qualify). Such expenses may include deductibles, co-insurance and co-pays, prescription drugs, contact lenses, over-the-counter medicines and drugs that have been prescribed by your physician and certain other health services. A list can be found on the Portal’s Employee Center – Benefits – Health & Insurance page.

If you elect to contribute to an HCSA, you will receive information about how to use your HCSA from Aon Hewitt, the spending account administrator. This will include information about the debit card that you will receive after you enroll.

For complete information about the HCSA, please view/print the Spending Accounts SPD available on the Your Benefits Resources website.

Information also is available on the Portal’s Benefits – Health & Insurance page.

Dependent Care Spending Account (DCSA)

If you elect to contribute to a DCSA, you can use this account to reimburse yourself for certain dependent care expenses incurred during the year so that you and your spouse can work, including fees that you pay for nursery schools, day care centers, day camps and/or home care specialists. This account is not for reimbursement of health care expenses. A list of eligible expenses can be found on the Portal’s Employee Center – Benefits – Health & Insurance page.

For complete information about the DCSA, please view/print the Spending Accounts SPD available on the Your Benefits Resources website.

Information also is available on the Portal’s Benefits – Health & Insurance page.

DUKE ENERGY PROVIDES CERTAIN COVERAGE AT NO COST TO YOU

Duke Energy provides the following coverage at no cost to you and enrollment is automatic.

Basic Life Insurance Coverage

Equal to one times your annual base pay (up to $1 million in coverage with a $50,000 minimum), or $50,000. Note: Amounts of company-paid Basic Life Insurance coverage in excess of $50,000 will result in taxable imputed income to you based on the cost of such coverage.

Basic Accidental Death & Dismemberment (AD&D) Insurance Coverage

Equal to one times your annual base pay (up to $1 million in coverage with a $50,000 minimum).

Business Travel Accident (BTA) Insurance Coverage

• Equal to three times your annual base pay (up to $2 million in coverage) if you are a full-time employee, or

13HEALTH AND INSURANCE PLAN OVERVIEW

• Equal to two times your annual base pay (up to $200,000 in coverage) if you are a part-time employee.

Long-Term Disability (LTD) Coverage

Equal to 50 percent of your annual base pay, subject to the maximum monthly benefit of $15,000.

You can purchase additional coverage

In addition to the insurance coverage listed above that’s paid for by Duke Energy, you can purchase the following insurance coverage for yourself and your eligible dependents:

• Supplemental Life Insurance coverage for yourself

• Dependent Life Insurance coverage for your eligible spouse/domestic partner and/or child(ren)

• Supplemental AD&D Insurance coverage for yourself

• Dependent AD&D Insurance coverage for your eligible spouse/domestic partner and/or child(ren)

• Additional LTD coverage equal to 16-2/3 percent of your annual base pay for a total coverage amount equal to 66-2/3 percent of your annual base pay, subject to the maximum monthly benefit of $15,000

The cost of these additional coverages varies based on your age and earnings and likely will change annually. In addition, as part of your life insurance election, you also may be required to indicate the tobacco/non-tobacco user status for yourself and your covered dependents. Non-tobacco users may be able to take advantage of certain discounted rates. In some instances you will be required to provide evidence of insurability.

For complete information about these additional coverages, please view/print a copy of the applicable plan’s SPD.

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At Duke Energy, we’re serious about health, wellness and safety, and we hold ourselves accountable for working safely and making healthy choices. It’s just part of who we are.

Our Live Well Incentive Program is designed to help you live a healthy, productive life. It features an online personal Health Survey and provides opportunities for you to improve your health and prevent illness and disease.

When you complete Live Well Incentive Program activities by the applicable deadlines, the rewards that you earn will be used to reduce your per-pay-period contributions for medical coverage in the following plan year. For example, Live Well rewards that you earn in 2016 will be used to reduce your medical contributions during 2017.

If you are not enrolled in the Medical Plan in 2016 or you are an employee covered as a dependent of another Duke Energy employee, your Live Well Incentive Program rewards earned during 2016 will be paid in cash (less applicable taxes) on a prorated basis in your paycheck each pay period throughout 2017.

Note that Live Well activities must be completed by applicable deadlines, regardless of hire date.

Employees hired after the Aug. 31, 2016 deadline for completion of Live Well activities will not be eligible to earn Live Well rewards until Jan. 2017.

Discount opportunity for spouses (and domestic partners) of eligible employees

If you are eligible for the Live Well Incentive Program, and your spouse/domestic partner is not a Duke Energy employee and your spouse/domestic partner is enrolled in the Medical Plan, he or she can complete the 2016 Health Survey to earn a $150 reward to lower the cost of Duke Energy medical coverage during 2017.

Here’s how it will work:

• Your spouse/domestic partner must complete the 2016 Health Survey by Aug. 31, 2016.

• Your spouse/domestic partner must be covered under the Medical Plan at the time he/she completes the Health Survey and must be covered under the Medical Plan in 2017 when the reward will be used to lower the cost of medical coverage.

• If your spouse/domestic partner who is not a Duke Energy employee does not enroll in the Medical Plan for 2017, neither you nor your spouse/domestic partner will receive the Live Well reward that your spouse/domestic partner earned during 2016. There is no cash payout associated with the reward your spouse/domestic partner earns for completing the Health Survey.

• Your spouse/domestic partner can access http://dukeenergy.werally.com to register and complete the 2016 Health Survey.

• If your spouse/domestic partner is a Duke Energy employee, he or she is not eligible to earn the $150 spouse/domestic partner Live Well reward, because he or she is eligible to earn the $400 Live Well reward as an employee.

How to Get Started

To learn more about the Live Well Incentive Program activities and rewards, visit the Portal’s Employee Center – Wellness page.

Begin participating in the Live Well Incentive Program by registering for your Live Well account and by completing the online Health Survey by Aug. 31, 2016. It’s a great way for you to receive a personalized health improvement plan.

Health Survey information is confidential and will not be shared with anyone at Duke Energy.

If your Health Survey results indicate that you would benefit from a personal health coach, you will receive a call to invite you to participate in programs designed to help you improve your health and well-being. Participation in special health coaching programs is strictly voluntary, confidential and provided at no cost to you.

Live Well Incentive Program

15LIVE WELL INCENTIVE PROGRAM

The Live Well Incentive Program is committed to helping you achieve your best health. Rewards for participating in the Live Well Incentive Program are available to all eligible employees. If you think you might be unable to meet a standard for a reward under the Live Well Incentive Program, you might qualify for an opportunity to earn the same reward by different means. Contact Health and Wellness Portal Support at 877.818.5826 and

THE LIVE WELL INCENTIVE PROGRAM

We’re serious about good health,

wellness and safety. Join the Live

Well Incentive Program to earn

rewards. Join your teammates on

a lifelong journey to good health.

a representative will work with you (and, if you wish, your doctor) to find an activity with the same reward that is right for you in light of your health status.

If you have questions about the Live Well Incentive Program or if you experience issues accessing your Live Well account: call Health & Wellness Customer Support at 877.818.5826.

16

When you retireCurrently, Duke Energy sponsors a 401(k) savings plan to help you build income for your retirement years. Additionally, if you meet certain age and service requirements, you can enroll in retiree health coverage.

DUKE ENERGY RETIREMENT SAVINGS PLAN

Duke Energy’s Retirement Savings Plan (RSP), a 401(k) plan, is your opportunity to save, invest and build financial security for retirement. To encourage you to save for the future, Duke Energy will match some of your before-tax and/or Roth contributions. Additionally, the company will make a 4 percent contribution to your RSP account, whether you contribute or not. If you do not make an investment election, the 4 percent contribution will be made to a default investment fund (the applicable Target Retirement Date Fund closest to the year that you will reach age 65).

Participation is Voluntary

Saving in the RSP is completely voluntary. But the sooner you start, the sooner you’ll enjoy the advantages of savings, company matching contributions and the opportunity for tax-deferred investment growth.

To Enroll in the RSP – Service is Just a Click Away

You can enroll now to start saving for your retirement. To enroll in the RSP, make changes to the amount you wish to contribute to the RSP, designate beneficiaries, change investment elections, request a withdrawal, distribution or loan and view/print a copy of the SPD, access the Fidelity NetBenefits website at 401k.com.

You must make before-tax and/or Roth contributions to be eligible to receive the company match.

While you are an active employee, you can access the Fidelity NetBenefits website through the Duke Energy Portal’s Employee Center – Benefits – Retirement page. Click on Manage Your Duke Energy RSP – Fidelity and you will be re-directed to 401k.com.

You may also call Fidelity’s Duke Energy Customer Service Line at 800.376.4015 when you need information and assistance. Representatives are available Monday through Friday (excluding New York Stock Exchange holidays) from 8:30 a.m. to 8 p.m. Eastern time. The first time you call or access the Fidelity NetBenefits website, you will be prompted to create a customer ID and a personal identification number (PIN).

Automatic Enrollment

If you are an eligible new employee and do not enroll through the Fidelity NetBenefits website at 401k.com or by calling Fidelity’s Duke Energy Customer Service Line at 800.376.4015, you will be enrolled automatically in the RSP soon after becoming eligible to participate. Your initial contribution will be a 6 percent before-tax contribution to a default investment fund (the applicable Target Retirement Date Fund closest to the year that you will reach age 65). If you want to change your before-tax contributions (or make Roth and/or after-tax contributions), invest in a different fund or stop your contributions, simply call Fidelity’s Duke Energy Customer Service Line at 800.376.4015.

GET MATCHING DOLLARS

Duke Energy will match

some of the amounts that

you save for retirement.

Enroll now to start saving.

17COMMUTER BENEFITS

PARKING SPENDING ACCOUNT (PSA)

Duke Energy’s Commuter Benefits program provides opportunities, especially attractive for those employees working in Duke Energy’s metro locations, to save on work-related parking and commuting expenses and establish a Parking Spending Account (PSA). If you elect to contribute to a PSA, you can pay for your commuter expenses on a pretax basis.

FREE TRANSIT PASSES

The Commuter Benefits program includes company-provided transit passes (at no cost to you!). The transit passes are tax-free up to the applicable IRS limits.

To learn more about Commuter Benefits and to order transit passes or establish a PSA, please access the Portal’s Employee Center – Commuter Benefits page for information.

Commuter benefits

Re-hired Employees

If you were previously employed with Duke Energy, you will need to re-enroll in the RSP to participate. Refer to the information above to make your enrollment decisions.

HEALTH AND INSURANCE COVERAGE AT RETIREMENT

Duke Energy currently offers eligible employees the opportunity to elect health coverage at retirement.

Generally, you will find that the cost of retiree coverage is significantly higher than the cost of coverage available to active employees.

Save Now for Health Care in Retirement

Duke Energy offers a unique opportunity to eligible employees to help build savings to pay for health care expenses now and in retirement.

As an active employee, if you enroll in one of the Medical Plan’s Health Savings Plan options, you may be able to contribute to a Health Savings Account. With a Health Savings Account, you save on a pretax basis and the company will match some of your contributions. Once your

Health Savings Account balance reaches a certain designated value, you can invest your Health Savings Account and any investment earnings grow tax-free.

You should consider a Health Savings Plan option and Health Savings Account combination as an opportunity to set aside amounts throughout your career to pay for health care expenses when you retire.

The Future of Retiree Health Coverage

Each year we review, and often adjust, retiree coverage provisions and the cost of coverage, just as we do with coverage available to active employees.

As a new employee, you need to know that Duke Energy makes changes to all plans from time to time, and coverage available for retirees today likely will not remain the same over time. In any event, Duke Energy retains the right to amend, modify or terminate any of its benefits plans in any respect at any time.

18

WEB ADDRESS CONTACT NUMBER

Your Benefits Resources

For information about enrollment choices and eligibility.

http://resources.hewitt.com/duke-energy N/A

Duke Energy myHR Service Center

For information and assistance with benefits enrollment.

N/A 888.465.1300

Your Spending AccountTM

For information and assistance with HCSA, DCSA and PSA.

http://resources.hewitt.com/duke-energy 888.465.1300

UnitedHealthcare®

For information about Medical Plan coverage, claims and network providers.

www.myUHC.com 877.214.2930

Optum Bank

For information about the Health Savings Account (HSA).

www.myUHC.com 877.214.2930

CVS/Caremark®

For information about the prescription drug program, formulary and mail service program.

www.Caremark.com 888.797.8912

Cigna®

For information about the Dental Plan, claims and providers.

www.mycigna.com 800.965.9271

Vision Service Plan®

For information about the Vision Plan and the Vision Discount Program.

www.vsp.com 800.877.7195

Fidelity Investments

For information about the Retirement Savings Plan.

www.401k.com 800.376.4015

Health & Wellness Customer Support

For information about the Live Well Incentive Program.

www.myUHC.com 877.818.5826

Contact information for 2016

19

Women’s Health and Cancer Rights Act

Group health plans that cover mastectomies will cover certain breast reconstruction benefits in connection with a mastectomy. Coverage will be provided in a manner determined in consultation with you and your physician for:

• Reconstruction of the breast on which the mastectomy was performed;

• Surgery and reconstruction of the other breast to produce a symmetrical appearance; and

• Prosthesis and physical complications for all stages of mastectomy, including lymphedemas.

This coverage is subject to all of the terms of the Medical Plan, including relevant deductibles and co-insurance provisions.

Newborns’ and Mothers’ Health Protection Act

Health plans and insurance carriers generally may not, under federal law, restrict a mother’s or newborn’s benefits for a hospital length of stay that is in connection with childbirth to less than 48 hours following a vaginal delivery or 96 hours following a delivery by cesarean section. However, federal law generally does not prohibit the mother’s or newborn’s attending provider, after consultation with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours, as applicable). In any case, plans and insurance carriers may not, under federal law, require that a provider obtain authorization from the Medical Plan or the issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours, as applicable).

Privacy of Protected Health Information

The Health Insurance Portability and Accountability Act (HIPAA) is federal legislation designed to protect the privacy and confidentiality of an individual’s protected health information.

A copy of Duke Energy’s “Notice of Privacy Practices” is included in this packet. A copy

also can be obtained through the Your Benefits Resources website or by calling the Duke Energy myHR Service Center.

DUKE ENERGY RETIREMENT SAVINGS PLAN (“RSP”) – DEFAULT INVESTMENT FUND NOTICE

This notice reminds you that the Target Retirement Date Fund (closest to the year you will reach age 65) is your default investment fund under Duke Energy’s RSP. Under the RSP, any contributions for which you did not provide investment direction were invested in your Target Date Retirement Fund, which is intended to be a qualified default investment alternative under applicable law.

The year indicated in each Target Retirement Date Fund’s name is the target date and is designed for investors who will attain age 65 around that date. Each Target Retirement Date Fund is managed to gradually become more conservative over time until 15 years after the target date. The investment risk of each Target Retirement Date Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap and foreign securities. Principal invested is not guaranteed at any time, including at or after the target date.

Go to Fidelity’s NetBenefits website at 401k.com to view the RSP’s summary plan description and investment funds summaries booklet for more information regarding your rights and obligations with respect to the RSP’s Target Date Retirement Funds – including a description of the Target Date Retirement Funds and other investment alternatives under the RSP (including information on fees and expenses), your right to direct investments under the RSP on any business day (including transferring amounts from your Target Date Retirement Fund), the RSP’s automatic enrollment feature and other circumstances when

Required notifications

20 REQUIRED NOTIFICATIONS

amounts may be invested in the Target Date Retirement Funds. There are no restrictions, fees or expenses for transferring amounts from your Target Date Retirement Fund to other investment alternatives.

If you have any questions about the RSP, the Target Retirement Date Funds or this notice, please contact Fidelity’s Duke Energy Customer Service Line at 800.376.4015. Representatives are available from 8:30 a.m. to 8 p.m. Eastern time on business days, except New York Stock Exchange holidays.

myHR™, Your Benefits Resources™ and Your Spending Account™ are trademarks of Hewitt Management Company LLC.

Cigna® is a registered service mark of Cigna Intellectual Property Inc., licensed for use by Cigna Corporation and its subsidiaries.

UnitedHealthcare® is a registered mark of UnitedHealth Group Inc.

CVS Caremark® is a registered mark of Caremark LLC.

VSP® is a registered mark of Vision Service Plan.

Fidelity NetBenefits® is a registered trademark of Fidelity Investments.

21MEDICAL PLAN OPTIONS

2016 DUKE ENERGY ACTIVE MEDICAL PLAN OPTIONS

Administered by UnitedHealthcare

Plan Highlights Health Savings Plan 11 Health Savings Plan 21 PPO

In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network

Co-insurance (plan pays) 80% 60%2 80% 60%2 90% 70%2

Individual/Family Deductible

$2,500/$5,0003

$5,000/$10,0003

$1,500/$3,0003

$3,000/$6,0003

$600/ $1,200

$1,200/ $2,400

Individual/Family OOP Max (includes deductible)

$5,000/$10,0004

$10,000/$20,000

$3,500/$7,0004

$7,000/$14,000

$2,000/$4,000

$4,000/$8,000

Preventive Care $0 Deductible/ Co-insurance

$0 Deductible/ Co-insurance

$0 Deductible/ Co-insurance

Office Visit (Primary) Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

$255 Deductible/ Co-insurance5

Office Visit (Specialist) Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

$355 Deductible/ Co-insurance5

Inpatient Admission (precertification required)

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance5

Deductible/ Co-insurance5

Emergency Room Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

$1504 $1504

Urgent Care Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

Deductible/ Co-insurance

$505 $505

PRESCRIPTION DRUG COVERAGE – Administered by CVS/Caremark

Individual/Family Prescription OOP Max

Included with medical (above) Included with medical (above) $2,000/$4,000

Preventive Medications6 (you pay) $0

Full cost at point of sale7 $0

Full cost at point of sale7

Same as 30-day and 90-day pricing shown below

30-day supply (you pay):• Generic• Preferred Brand• Non-preferred Brand

Deductible/Co-insurance

for medications not designated as preventive

Full cost at point of sale7

Deductible/Co-insurance

for medications not designated as preventive

Full cost at point of sale7

• Lower of $10 or cost of medication8

• 25% up to $508

• 50% up to $1008

Full cost at point of sale7

90-day supply9 (you pay):• Generic• Preferred Brand• Non-preferred Brand

Deductible/Co-insurance

for medications not designated as preventive

N/A

Deductible/Co-insurance

for medications not designated as preventive

N/A

• Lower of $25 or cost of medication8

• 25% up to $1258

• 50% up to $2508

N/A

OOP = Out-of-Pocket1 All expenses are subject to the deductible and OOP Maximum, excluding certain preventive care expenses and preventive medications.2 Subject to reasonable and customary charges. 3 The deductible is a true family deductible; the full family deductible amount must be reached before the Medical Plan pays any benefits for any covered member of the family. 4 The OOP Maximum will be no more than $6,850 for any one individual.5 Amounts apply to the Medical OOP Maximum.6 As included on the CVS/Caremark Preventive Therapy Drug List.7 Must file manual claim. CVS/Caremark will reimburse using the negotiated price of the medication, less the required co-pay and/or co-insurance, as applicable.8 Per medication purchased and applied toward only the Prescription Drug Coverage OOP Maximum.9 Can be filled at a CVS Retail Pharmacy or through the CVS/Caremark Mail Service Pharmacy.

22 DENTAL AND VISION PLANS

2016 DUKE ENERGY ACTIVE DENTAL PLAN

Administered by Cigna

Plan Provisions

Annual deductible IndividualFamily

$50$150

Annual maximum benefit $1,500 per individual

Preventive care (plan pays) 100%, no deductible

Basic services (plan pays) 80% after deductible

Major services (plan pays) 50% after deductible

Orthodontia up to age 19 (plan pays) 50%, no deductible

Orthodontia limits $2,000 separate lifetime maximum per individual

2016 DUKE ENERGY ACTIVE VISION PLAN

Administered by Vision Service Plan (VSP)

Plan Highlights In-Network Out-of-Network

Eye exam once every calendar year 100% covered Up to $50 reimbursement

Standard plastic lenses (single vision, bifocal vision or trifocal vision) one pair every calendar year

$20 co-payUp to $50, $75 or $100 reimbursement

(single, bifocal or trifocal)

Standard progressive lenses one pair every calendar year $55 co-pay Up to $75 reimbursement

Frames one pair every other calendar year

$20 co-pay

$140 allowance plus 20% off any amount over $140

Up to $70 reimbursement

Contact lens1 services (fitting and evaluation and materials) once every calendar year (in lieu of lenses and frames)

15% off contact lens exam (fitting and evaluation)

$150 allowanceUp to $110 reimbursement

Laser vision correction 15% discount N/A

1 Elective Conventional (non-disposable) and Disposables

23

Notes

www.duke-energy.com

©2015 Duke Energy Corporation 153051 11/15