Item 7.01. Regulation FD Disclosure.

On December 27, 2012, the Indiana Utility Regulatory Commission (the "IURC") approved a settlement agreement finalized in April 2012, by and among Duke Energy Indiana, Inc. (the "Company"), the Office of Utility Consumer Counselor, the Duke Energy Indiana Industrial Group and Nucor Steel - Indiana, on the cost increase for the construction of the Edwardsport clean coal gasification plant. The agreement, as approved, caps costs to be reflected in customer rates at $2.595 billion, including estimated financing costs through June 30, 2012. The Company was allowed to recover AFUDC after June 30 until customer rates are revised, with such recovery decreasing to 85% on AFUDC accrued after November 30, 2012.

The IURC modified the settlement agreement as previously agreed to by the parties to (1) require the Company to credit customers for cost control incentive payments which the IURC found to be unwarranted as a result of delays that arose from project cost overruns and (2) provide that if the Company should recover more than the project costs absorbed by Duke Energy Corporation's shareholders through litigation, any surplus must be returned to the Company's Indiana ratepayers.

The project is scheduled to be in commercial operation by mid-2013.

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