Risk Management Duke Energy's Code of Business Ethics

Duke Energy achieves its commercial objectives by executing transactions in the energy commodity markets of the United States and internationally. Participation in these markets exposes Duke Energy to credit and market risk.

Duke Energy has established risk management policies and procedures to guide its personnel in mitigating the potential negative financial impacts posed by these risks and to build a portfolio of positions that collectively meet Duke Energy's desired risk reward profile. By following these policies and procedures, Duke Energy personnel assure its shareholders, counterparties, rating agencies and regulators that transactions are being executed consistently to meet Duke Energy's risk tolerance.

Our Responsibilities

Duke Energy employees who execute, and who support the execution of, Duke Energy's commercial activity are expected to follow established risk management processes, policies and procedures.

Business unit personnel with authority to execute Duke Energy's commercial activities are responsible for developing and executing business plans that are consistent with corporate strategies and risk tolerances and that comply with established policies, procedures and limits.

Business unit personnel are also responsible for developing procedures and processes designed to govern commodity risk management activity in compliance with the requirements established in Duke Energy's various Risk Management policies, and train their applicable personnel on these procedures.

Duke Energy's corporate risk management group is responsible for assessing the adequacy of the company's risk management controls, approving and maintaining business unit-specific risk practices, and providing independent identification, oversight and management of market risks.

Duke Energy employees must:

• Only execute transactions in authorized commodities, using approved instruments, and following the applicable procedures for maintaining compliance with the specific risk limits and hedge guidelines.

Duke Energy employees must not:

• Cause Duke Energy (or its affiliates) to enter into, or direct others to cause Duke Energy (or its affiliates) to enter into, energy commodity contracts for accounts of themselves, members of their families, friends, or persons or entities with whom they have a personal business interest.
• Knowingly, willfully or intentionally, disclose to any person not employed by the company any confidential business strategy or position, except when compelled by an outside government or oversight body, or with approval from Senior Management.